Document:

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                                                                EXHIBIT 10.35

                            DAWSON CORPORATE GUARANTY

         This Corporate Guaranty (this "Guaranty") is executed and delivered as
of December 14, 1999, by Dawson, Inc., a Delaware corporation ("Guarantor"), to
American National Bank and Trust Company of Chicago, a national banking
association (the "Bank").

1.       BACKGROUND.

         A. Contemporaneously herewith, The Turner Subscription Agency,
Incorporated, a Delaware corporation ("Turner"), McGregor Subscription Service,
Inc., an Illinois corporation ("McGregor"), and The Faxon Company, Inc., a
Massachusetts corporation ("Faxon") (Turner, McGregor and Faxon are collectively
the "Borrower"), desire the Bank to provide certain extensions of credit, loans
or other financial accommodations to Borrower (the "Financial Accommodations")
pursuant to the following documents (collectively the "Loan Documents"): that
certain Loan and Security Agreement of even date herewith by and between the
Bank and Borrower (as amended, renewed or restated from time to time, the "Loan
Agreement"), and the other agreements, documents and instruments referenced in
or executed and delivered pursuant to the Loan Agreement, including, without
limitation, that certain Revolving Note of even date herewith executed and
delivered by Borrower to the Bank in a maximum aggregate principal amount not to
exceed Thirty-Five Million and no/100 Dollars ($35,000,000.00).

         B. The Bank is willing to provide the Financial Accommodations to
Borrower, provided, among other things, Guarantor executes and delivers this
Guaranty to the Bank.

         C. Guarantor acknowledges and agrees that (i) Guarantor owns one
hundred percent (100%) of the issued and outstanding capital stock of each
Borrower, and Guarantor is, thus, benefitted by the Financial Accommodations
made by the Bank to Borrower, (ii) Guarantor's execution and delivery of this
Guaranty is a material inducement to the Bank providing the Financial
Accommodations to Borrower, and (iii) without this Guaranty, the Bank would not
have provided the Financial Accommodations to Borrower.

         D. In consideration of the foregoing, and other good and valuable
consideration, the receipt and sufficiency of such consideration is hereby
acknowledged by Guarantor, Guarantor hereby covenants unto and agrees with the
Bank as set forth in this Guaranty.

2.       DEFINITIONS.

         A. "BORROWER'S LIABILITIES" shall mean, individually and collectively,
all debts, liabilities, covenants, duties, obligations and agreements of any
kind, nature or description whatsoever of each Borrower to and with the Bank
heretofore, now or hereafter made, incurred, evidenced or created, whether
voluntary or involuntary, and however arising, whether due or not due, absolute
or contingent, liquidated or unliquidated, determined or undetermined, direct or
indirect, insured or uninsured or foreseeable or unforeseeable, whether pursuant
to the Loan Documents or otherwise.

         B. "COVENANTS" shall mean all now existing and hereafter arising
covenants, duties, obligations and agreements of each Borrower to and with the
Bank, whether pursuant to the Loan Documents or otherwise.

         C. "EVENT OF DEFAULT" shall mean the occurrence of any one of the
following events: (i) Guarantor fails or neglects to perform, keep or observe
any term, provision, condition, warranty, representation or covenant contained
in this Guaranty or any other agreement, document or instrument executed and
delivered by Guarantor to the Bank; (ii) any of Guarantor's assets are seized,
attached, subjected to a writ or distress warrant, or are levied upon, if such
seizure, attachment, writ or distress warrant could have a material adverse
effect on Guarantor's

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business, assets or financial condition as determined by the Bank in its
reasonable discretion, or come within the possession of any receiver, trustee,
custodian or assignee for the benefit of creditors; (iii) Guarantor shall make
an assignment for the benefit of creditors, or an application is made by or
against Guarantor for the appointment of a receiver, trustee, custodian or
conservator for Guarantor or any of Guarantor's assets; (iv) a petition under
the United States Bankruptcy Code or any similar federal, state or local law,
statute or regulation shall be filed by Guarantor; (v) a petition under the
United States Bankruptcy Code or any similar federal, state or local law,
statute or regulation shall be filed against Guarantor and such petition is
granted or is not dismissed within thirty (30) days after the filing thereof;
(vi) Guarantor is enjoined, restrained or in any way prevented by court order
from conducting any part of Guarantor's business; (vii) a lawsuit or other
proceeding is filed by or against Guarantor to liquidate any of Guarantor's
assets and such lawsuit or other proceeding could have a material adverse effect
on Guarantor's business, assets or financial condition as determined by the Bank
in its reasonable discretion; (viii) one or more notices of a lien, levy or
assessment are filed of record for past due Indebtedness which individually or
in the aggregate is in excess of Fifty Thousand and no/100 Dollars ($50,000.00)
with respect to any of Guarantor's assets by the United States of America or any
department, agency or instrumentality thereof, or by any state, county,
municipal or other governmental department, agency or instrumentality; (ix)
Guarantor defaults in the payment of any of its other obligations or liabilities
which individually or in the aggregate are in excess of $1,000,000.00 and such
default is not cured within the time, if any, specified therefor; (x) the
dissolution of Guarantor; or (xi) an "Event of Default" (as defined in the Loan
Agreement) occurs under the Loan Documents.

         D. "GUARANTOR'S LIABILITIES" shall mean all of Guarantor's now existing
or hereafter arising debts, liabilities, covenants, duties, obligations and
agreements to and with the Bank, whether pursuant to this Guaranty or otherwise.

3.       GUARANTY.

         A. Guarantor hereby (i) unconditionally guaranties the full and timely
payment of Borrower's Liabilities when due or declared due, whether by
acceleration, maturity or otherwise; (ii) unconditionally guaranties the full
and timely performance of the Covenants; (iii) agrees to pay all costs, expenses
and fees, including, but not limited to, attorneys' fees, incurred by the Bank
in connection with this Guaranty, Borrower's Liabilities or any collateral or
security securing Borrower's Liabilities; and (iv) agrees to pay to the Bank the
amount of any payments made to the Bank in full or partial satisfaction of
Borrower's Liabilities, and which are subsequently invalidated, declared to be
preferential or fraudulent, set aside or required to be repaid by the Bank to
Borrower, its estate, a trustee, a receiver or any other party under the United
States Bankruptcy Code or any similar federal, state or local law, statute or
regulation.

         B. This Guaranty and the full and timely performance of the Covenants
and the full and timely payment of Borrower's Liabilities by Guarantor pursuant
to this Guaranty shall be a continuing, absolute and unconditional guaranty of
payment and not of collection, irrespective of (i) the validity or
enforceability of any instrument, agreement or document evidencing all or any
part of Borrower's Liabilities; (ii) the absence of any attempt to collect or
enforce Borrower's Liabilities from or against Borrower or other action to
enforce the full and timely performance of the Covenants and the full and timely
payment of Borrower's Liabilities, and the absence of any such attempt shall in
no way preclude or be a condition precedent to proceeding against Guarantor;
(iii) any waiver or consent by the Bank with respect to any term or provision of
any instrument, agreement or document executed and delivered by Borrower or
Guarantor to the Bank; (iv) the Bank obtaining any additional guaranties or any
collateral to secure Borrower's Liabilities from Guarantor or any other person
or entity; (v) any failure by the Bank to take any steps to preserve its rights
to any security or collateral securing Borrower's Liabilities or the Covenants
or to utilize any of its remedies, which failure shall in no way preclude or be
a condition precedent to the Bank proceeding against Guarantor; (vi) the
existence or extent of collateral or security pledged, assigned, hypothecated or
granted by Guarantor to secure Borrower's Liabilities, Guarantor's Liabilities
or the Covenants; or

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(vii) any other fact, event, act, omission or circumstance which might otherwise
constitute a legal or equitable discharge of liability or performance by a
guarantor.

         C. The Bank shall not be required or obligated to (i) take any action
to collect from, or to file any claim of any kind against, Borrower, any other
guarantor, or any other person or entity liable, jointly or severally, for the
full and timely performance of any of the Covenants or the full and timely
payment of any of Borrower's Liabilities, prior to pursuing any rights or
remedies the Bank may have against Guarantor; (ii) take any steps to protect,
enforce, take possession of, perfect any interest in, foreclose or realize on
any collateral or security, if any, securing the Covenants or Borrower's
Liabilities; or (iii) in any other respect, exercise any diligence whatsoever in
enforcing, collecting or attempting to collect any of Borrower's Liabilities by
any means.

4.       WAIVERS.

         A. Guarantor unconditionally and irrevocably waives each and every
defense which would otherwise impair, restrict, diminish or affect any of
Guarantor's Liabilities. Without limiting the foregoing, the Bank shall have the
exclusive right from time to time without impairing, restricting, diminishing or
affecting any of Guarantor's Liabilities, and without notice of any kind to
Guarantor, to (i) provide additional financial accommodations to Borrower; (ii)
renew, extend, accelerate, modify or otherwise change the terms of any of the
Covenants or any of Borrower's Liabilities, or any instrument, agreement or
document between the Bank and Borrower; (iii) accept partial payments on
Borrower's Liabilities; (iv) take and hold collateral or security to secure the
Covenants or Borrower's Liabilities, or take any other guaranty to secure the
Covenants and Borrower's Liabilities; (v) in its sole discretion, apply any such
collateral or security, and direct the order or manner of sale thereof, and the
application of the proceeds thereof; (vi) release any other guarantor, person or
entity guarantying Borrower's Liabilities; and (vii) settle, release,
compromise, collect or otherwise liquidate Borrower's Liabilities or exchange,
enforce, sell, lease, use, maintain, impair and release any collateral or
security therefor in any manner, without affecting or impairing any of
Guarantor's Liabilities hereunder. Nothing contained in this Guaranty, except
the full and timely performance of the Covenants and the full and timely payment
of Borrower's Liabilities to the Bank, shall operate to discharge any of
Guarantor's Liabilities.

         B. Guarantor hereby unconditionally waives (i) notice of acceptance of
this Guaranty; (ii) notice of any default by Borrower in the full and prompt
performance of the Covenants or the full and prompt payment of Borrower's
Liabilities; (iii) presentment, notice of dishonor, protest, demand for payment
and any other notices of any kind; and (iv) any rights of set-off or
counterclaim against the Bank which would otherwise impair the Bank's rights
against Guarantors hereunder.

5.       INFORMATION.

         Guarantor assumes full responsibility for keeping informed of (A) the
financial condition of Borrower; (B) Borrower's Liabilities; and (C) all other
circumstances bearing upon Borrower or the risk of non-payment of Borrower's
Liabilities. Guarantor agrees that the Bank shall have no duty or obligation to
advise, furnish or supply Guarantor of or with any information known to the
Bank, including, but not limited to, Borrower's Liabilities, the financial
condition of Borrower, any other circumstances relating to non-payment of
Borrower's Liabilities or otherwise. If the Bank, in its sole discretion,
provides any advice or information to Guarantor, the Bank shall be under no
obligation to investigate the matters contained in such advice or information,
or to correct such advice or information if the Bank thereafter knows or should
have known that such advice or information is misleading or untrue, in whole or
in part, or to update or provide any other advice or information in the future.

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6.       WAIVER OF GUARANTOR'S RIGHTS OF INDEMNIFICATION, SUBROGATION,
         CONTRIBUTION AND REIMBURSEMENT.

         Guarantor acknowledges and agrees that it may have a right of
indemnification, subrogation, contribution and reimbursement from Borrower based
upon its execution of this Guaranty. Guarantor understands the benefits of
having such rights, including, but not limited to, (A) Guarantor's right to
reimbursement from Borrower of all monies expended for the payment of Borrower's
Liabilities by Guarantor; and (B) Guarantor's subrogation to the rights of the
Bank after payment of Borrower's Liabilities. Guarantor knowingly and
voluntarily waives, releases and relinquishes its rights of indemnification,
subrogation, contribution and reimbursement from Borrower.

7.       REMEDIES UPON AN EVENT OF DEFAULT.

         Upon an Event of Default, Guarantor's Liabilities shall be immediately
due and payable by Guarantor, whether or not Borrower's Liabilities are then due
and payable or declared due and payable, and the Bank may, in its sole
discretion, exercise any of its rights or remedies provided in this Guaranty, at
law, in equity or otherwise; provided, however, if Guarantor is not a debtor in
any state or federal bankruptcy proceeding, the Bank shall be required to give
Guarantor notice of the occurrence of such Event of Default prior to Guarantor's
Liabilities becoming immediately due and payable by Guarantor hereunder. All of
the Bank's rights and remedies are cumulative and non-exclusive, and the
exercise by the Bank of any right or remedy shall not preclude the Bank from
subsequently exercising any other right or remedy, in any other respect or at
any other time.

8.       TERM OF GUARANTY.

         This Guaranty and Guarantor's Liabilities shall apply to all
transactions between Borrower and the Bank. This Guaranty may only be terminated
by Guarantor giving notice of such termination to the Bank in accordance with
Paragraph 10 hereof. Such notice of termination, however, shall not release or
affect any of Guarantor's Liabilities existing as of the effective date of such
termination.

9.       SUBORDINATION.

          Guarantor acknowledges and agrees that all indebtedness, obligations
or liabilities now and at any time or times hereafter owing by any Borrower to
Guarantor are hereby subordinated to the full and timely performance of the
Covenants and the full and timely payment of Borrower's Liabilities to the Bank.
Guarantor will not accept any payments on the indebtedness, obligations or
liabilities of Borrower due and owing to Guarantor until Borrower's Liabilities
to the Bank have been fully paid and satisfied. If Guarantor receives any
payments on account of such indebtedness, obligations or liabilities from
Borrower in violation of this Guaranty, Guarantor shall receive and hold such
payments in trust for the benefit of and as the property of the Bank, and shall
immediately deliver all such payments to the Bank.

10.      NOTICE.

         Any and all notices, demands, requests, consents, designations, waivers
and other communications required or desired hereunder shall be in writing and
shall be deemed effective upon personal delivery, upon confirmed facsimile
transmission, upon receipted delivery by overnight carrier, or three (3) days
after mailing if mailed by registered or certified mail, return receipt
requested, postage prepaid, to Guarantor or the Bank at the following addresses
or facsimile numbers or such other address or facsimile number as Guarantor or
the Bank specify in like manner; provided, however, that notices of termination
of this Guaranty and notices of a change of address or facsimile number shall be
effective only upon receipt thereof.

                                      -4-
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<TABLE>

  <S>                                         <C>
  If to Guarantor, then to:                   If to the Bank, then to:

    Dawson, Inc.                                    American National the Bank and Trust
    15 Southwest Park                                 Company of Chicago
    Westwood, Massachussets 02090                   IL1-1458
    Attention: Dr. Richard Rowe                     120 S. LaSalle Street, 8th Floor
    Facsimile Number: (617) 661-9440                Chicago, Illinois 60603
                                                    Attention:  Mr. Dennis Harrison
                                                    Facsimile No.: (312) 661-3530

  with a copy to:                             with a copy to:

    Bingham Dana LLP                                Fagel & Haber
    150 Federal Street                              140 South Dearborn Street
    Boston, Massachusetts                           Suite 1400
    Attention: Matthew Furlong, Esq.                Chicago, Illinois 60603
    Facsimile No.: (617) 951-8736                   Attention: Victor A. Des Laurier, Esq.
                                                    Facsimile No.: (312) 580-2201

</TABLE>

11. APPLICATION OF PAYMENTS.

    Guarantor hereby agrees that all payments to the Bank made by or on behalf
of Borrower, including, without limitation, payments from Guarantor, may be
applied and reapplied, in whole or in part, to any of Borrower's Liabilities or
Guarantor's Liabilities as the Bank sees fit in its sole discretion.

12. REPRESENTATIONS, WARRANTIES AND COVENANTS. Guarantor represents, warrants
and covenants unto the Bank that: (A) Guarantor is and at all times hereafter
shall be a corporation duly organized and existing and in good standing under
the laws of the State of Delaware; (B) Guarantor has the right, power and
capacity and is duly authorized and empowered to enter into, execute, deliver
and perform this Guaranty; and (C) the execution, delivery and performance by
Guarantor of this Guaranty shall not, by the lapse of time, the giving of notice
or otherwise, constitute a violation of any applicable law or breach of any
provision contained in Guarantor's Articles of Incorporation or By-Laws, or
contained in any agreement, instrument or document to which Guarantor is now or
hereafter a party or by which it is or may become bound.

13. REPORTING. From time to time hereafter, Guarantor covenants to promptly
deliver to the Bank, such information, financial or otherwise, as the Bank may
reasonable request.

14. CONSTRUCTION.

    A. This Guaranty shall be interpreted, construed and governed by and under
the laws of the State of Illinois. Wherever possible, each provision of this
Guaranty shall be interpreted in such manner as to be valid and enforceable
under applicable law, but if any provision of this Guaranty is held to be
invalid or unenforceable by a court of competent jurisdiction, such provision
shall be severed herefrom and such invalidity or unenforceability shall not
affect any other provision of this Guaranty, the balance of which shall remain
in and have its intended full force and effect. Provided, however, if such
provision may be modified so as to be valid and enforceable as a matter of law,
such provision shall be deemed to be modified so as to be valid and enforceable
to the maximum extent permitted by law.

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<PAGE>

    B. The Paragraph headings contained in this Guaranty are solely for the
purpose of reference, are not part of the agreement between Guarantor and the
Bank, and shall not in any way affect the meaning or interpretation of this
Guaranty or any Paragraph. This Guaranty shall be binding on Guarantor and
upon the successors of Guarantor, its affiliates, divisions and shareholders,
as the case may be, and shall inure to the benefit of the Bank, its
successors, assigns, affiliates, divisions, parents and shareholders, and may
be assigned by the Bank without notice to Guarantor. This Guaranty may not be
assigned by Guarantor.

    C. No failure to exercise, and no delay in exercising, any right, power or
privilege hereunder shall operate as a waiver thereof. No waiver of any breach
of any provision shall be deemed to be a waiver of any preceding or succeeding
breach of the same or any other provision. No extension of time for performance
of Guarantor's Liabilities or any other obligation or act hereunder or under any
other agreement shall be deemed to be an extension of the time for performance
of any other obligation or any other act. This Guaranty may not be altered,
changed, amended or modified except by an agreement in writing signed by the
Bank and Guarantor.

    D. All references to Borrower shall mean Turner, McGregor and Faxon, both
individually and collectively, and jointly and severally.

15. CONSENT TO JURISDICTION.

    Guarantor and the Bank irrevocably agree, and hereby consent and submit to
the non-exclusive jurisdiction of the Circuit Court of Cook County, Illinois,
and the United States District Court for the Northern District of Illinois,
Eastern Division, with regard to any litigation, actions or proceedings arising
from, relating to or in connection with Borrower's Liabilities, the Covenants,
Guarantor's Liabilities, this Guaranty or any collateral or security therefor.
Guarantor hereby waives any right Guarantor may have to transfer or change the
venue of any litigation, actions or proceedings filed in the Circuit Court of
Cook County, Illinois, or the United States District Court for the Northern
District of Illinois, Eastern Division.

16. SERVICE OF PROCESS.

    GUARANTOR HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND CONSENTS
THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY CERTIFIED MAIL, RETURN RECEIPT
REQUESTED, DIRECTED TO THE BORROWERS AS SET FORTH HEREIN IN THE MANNER PROVIDED
BY APPLICABLE STATUTE, LAW, RULE OF COURT OR OTHERWISE.

17. WAIVER OF JURY TRIAL.

    GUARANTOR AND THE BANK EACH HEREBY ABSOLUTELY AND UNCONDITIONALLY WAIVE
THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IN CONNECTION WITH ANY CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION ARISING UNDER OR RELATING TO THIS GUARANTY,
GUARANTOR'S LIABILITIES OR BORROWER'S LIABILITIES, OR ANY OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED AND DELIVERED IN CONNECTION THEREWITH OR RELATED
THERETO.

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    IN WITNESS WHEREOF, Guarantor has duly executed this Guaranty on the day and
year first above written.

                                          DAWSON, INC.,
                                          a Delaware corporation

                                          By:
                                             -----------------------------------
                                             Name:
                                                  ------------------------------
                                             Title:
                                                   -----------------------------

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<PAGE><PAGE>

                                                                EXHIBIT 10.36

                       ENVIRONMENTAL INDEMNITY AGREEMENT

                  THIS ENVIRONMENTAL INDEMNITY AGREEMENT (this "AGREEMENT") is
made as of December 14, 1999, by The Faxon Company, Inc., a Delaware corporation
having an address at 15 Southwest Park, Westwood, Massachusetts 02090 ("Faxon"),
McGregor Subscription Service, Inc., an Illinois corporation ("McGregor"), The
Turner Subscription Agency, Incorporated ("Turner"), RoweCom, Inc., a
Massachusetts_corporation ("RoweCom"), and Dawson, Inc., a Delaware corporation
("Dawson"; together with Faxon, McGregor, Turner and RoweCom, are collectively
the "INDEMNITOR"), in favor of American National Bank and Trust Company of
Chicago, a national banking association having an address at 120 S. LaSalle
Street, 8th Floor, Chicago, Illinois 60603 (the "LENDER"). All capitalized terms
not defined herein shall have the same meanings set forth in the Mortgage (as
hereinafter defined).

                        W I T N E S S E T H:

                  WHEREAS, pursuant to that certain Loan and Security Agreement
dated as of the date hereof, as amended, renewed or restated from time to time
(collectively the "Loan Agreement"), Lender is making one or more loans to
Faxon, McGregor and Turner (collectively the "Borrower"), in the aggregate
principal amount of Thirty-Five Million and no/100 Dollars ($35,000,000.00) (as
such loan may be amended, renewed or restated from time to time, the "LOAN");

                  WHEREAS, the Loan is guarantied by (i) RoweCom pursuant to
that certain RoweCom Corporate Guaranty dated as of the date hereof executed and
delivered by RoweCom to Lender, and (ii) Dawson pursuant to that certain Dawson
Corporate Guaranty dated as of the date hereof executed and delivered by Dawson
to Lender (collectively the "Guaranties");

                  WHEREAS, each Borrower is a wholly-owned subsidiary of Dawson,
which is a wholly-owned subsidiary of RoweCom; and

                  WHEREAS, the Loan is secured by that certain Mortgage,
Security Agreement, Assignment of Leases and Rents and Fixture Filing dated the
date hereof, given by Faxon to Lender (the "MORTGAGE"), encumbering that certain
real property situated in the County of Norfolk, Commonwealth of Massachusetts
as is more particularly described on EXHIBIT A attached hereto, and all
Improvements thereon (said real property and Improvements are hereinafter
sometimes collectively referred to as the "PROPERTY"); and

                  WHEREAS, as a condition precedent to Lender providing the Loan
to Borrower, Indemnitor agreed to execute and deliver this Agreement to Lender.

         NOW, THEREFORE, in consideration of the foregoing premises and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Indemnitor hereby covenants and agrees for the benefit of Lender,
as follows:

<PAGE>

1. INDEMNITY. Each Indemnitor, jointly and severally, assumes liability for,
and agrees to pay, protect, defend (at trial and appellate levels and with
attorneys, consultants and experts acceptable to Lender), and save Lender
harmless from and against, and indemnify Lender from and against any and all
liens, damages (including, without limitation, punitive or exemplary
damages), losses, liabilities (including, without limitation, strict
liability), obligations, settlement payments, penalties, fines, assessments,
citations, directives, claims, litigation, demands, defenses, judgments,
suits, proceedings, costs, disbursements and expenses of any kind or of any
nature whatsoever (including, without limitation, reasonable attorneys',
consultants' and experts' fees and disbursements actually incurred in
investigating, defending, settling or prosecuting any claim, litigation or
proceeding or enforcing any term of this Agreement) (collectively "COSTS")
which may at any time be imposed upon, incurred by or asserted or awarded
against Lender, Indemnitor or the Property, and arising directly or
indirectly from or out of, whether now, hereafter or heretofore occurring:
(i) any violation or alleged violation of, or liability or alleged liability
under, any local, state or federal law, rule or regulation or common law duty
pertaining to human health, natural resources or the environment, including,
without limitation, the Comprehensive Environmental Response, Compensation
and Liability Act of 1980 (42 U.S.C. Section.9601 et seq.), the Resource
Conservation and Recovery Act of 1976 (42 U.S.C. Section.6901 et seq.), the
Federal Water Pollution Control Act (33 U.S.C. Section.1251 et seq.), the
Clean Air Act (42 U.S.C. Section.7401 et seq.), the Emergency Planning and
Community-Right-to-Know Act (42 U.S.C. Section.11001 et seq.), the Endangered
Species Act (16 U.S.C. Section.1531 et seq.), the Toxic Substances Control
Act (15 U.S.C. Section.2601 et seq.), the Occupational Safety and Health Act
(29 U.S.C. Section.651 et seq.), the Hazardous Materials Transportation Act
(49 U.S.C. Section.1801 et seq.), and those relating to paint containing more
than .05% lead by dry weight ("LEAD BASED PAINT") and the regulations
promulgated pursuant to said laws, all as amended from time to time
(collectively, "ENVIRONMENTAL LAWS"), relating to or affecting the Property,
whether or not caused by or within the control of Indemnitor; (ii) the
presence, release or threat of release of or exposure to any hazardous, toxic
or harmful substances, wastes, materials, pollutants or contaminants
(including, without limitation, asbestos or asbestos-containing materials,
polychlorinated biphenyls, petroleum or petroleum products or byproducts,
flammable explosives, radioactive materials, Lead Based Paint, infectious
substances or raw materials which include hazardous constituents) or any
other substances or materials which are included under or regulated by
Environmental Laws (collectively, "HAZARDOUS SUBSTANCES"), on, in, under or
affecting all or any portion of the Property or any surrounding areas,
regardless of whether or not caused by or within the control of Indemnitor;
(iii) any transport, treatment, recycling, storage, disposal or arrangement
therefor of Hazardous Substances whether on the Property, originating from
the Property, or otherwise associated with the Indemnitor or any operations
conducted on the Property at any time; (iv) the breach of any representation
or warranty contained in the Mortgage; (v) the enforcement of this Agreement,
or (vi) any environmental investigation, assessment, audit or review
conducted in connection with the Property or the operations conducted at any
time thereon, including, without limitation, the cost of assessment,
investigation, containment, removal and/or remediation of any and all
Hazardous Substances from all or any portion of the Property or any
surrounding areas, the cost of any actions taken in response to the presence,
release or threat of release of any Hazardous Substances on, in, under or
affecting any portion of the Property or any surrounding areas to prevent or
minimize such release or threat of release so that it does not migrate or
otherwise cause or threaten

                                      -2-
<PAGE>

danger to present or future public health,  safety,  welfare or the environment,
and costs incurred to comply with  Environmental  Laws in connection with all or
any  portion of the  Property  or any  surrounding  areas.  Notwithstanding  the
foregoing,  Borrower shall not be responsible for Costs which (i) are the direct
result of Lender's gross negligence or willful misconduct,  or (ii) arise solely
from an act, occurrence or condition which initially commenced or was introduced
to the Property after the Bank takes possession thereof.

         2. INDEMNIFICATION PROCEDURES. (a) If any action shall be brought
against Lender based upon any of the matters for which Lender is indemnified
hereunder, Lender shall notify Indemnitor in writing and Indemnitor shall
promptly assume the defense thereof, including, without limitation, the
employment of counsel acceptable to Lender and the negotiation of any
settlement; PROVIDED, HOWEVER, that any failure of Lender to notify Indemnitor
of such matter shall not impair or reduce the obligations of Indemnitor. Lender
shall have the right, at Indemnitor's expense, to employ separate counsel in any
action and to participate in the defense thereof. If Indemnitor shall fail to
defend Lender against any claim, loss or liability for which Lender is
indemnified, Lender may, at its sole option and election, defend or settle such
claim, loss or liability. The liability of Indemnitor to Lender hereunder shall
be conclusively established by such settlement, provided such settlement is made
in good faith, the amount of such liability includes both the settlement
consideration and all of the costs and expenses incurred by Lender in effecting
such settlement. Lender's good faith in any such settlement shall be
conclusively established if the settlement is made on the advice of independent
legal counsel for Lender.

                  (b) Except in cases where Lender is grossly negligent or
engaged in willful misconduct, Indemnitor shall not, without the prior written
consent of Lender: (i) settle or compromise any action, suit, proceeding or
claim (each, an "ACTION") or consent to the entry of any judgment that does not
include as an unconditional term thereof the delivery by the claimant or
plaintiff to Lender of a full and complete written release of Lender (in form,
scope and substance satisfactory to Lender in its sole discretion) from all
liability in respect of such Action and a dismissal with prejudice of such
Action, or (ii) settle or compromise any Action in any manner that may adversely
affect Lender (including, without limitation, Lender's reputation) or obligate
Lender to pay any sum or perform any obligation as determined by Lender in its
sole discretion.

                  (c) All Costs shall be immediately reimbursable to Lender when
and as incurred and without any requirement of waiting for the ultimate outcome
of any Action, and Indemnitor shall pay to Lender any and all Costs within ten
(10) days after written notice from Lender itemizing the amounts thereof
incurred to the date of such notice. In addition to any other remedy available
for the failure of Indemnitor to periodically pay such Costs, such Costs, if not
paid within said ten day period, shall bear interest at the Default Rate and
such Costs and interest shall be secured by the Mortgage and by the other Loan
Documents.

         3. REINSTATEMENT OF OBLIGATIONS. If at any time all or any part of any
payment made by Indemnitor or received by Lender from Indemnitor under or with
respect to this Agreement is or must be rescinded or returned for any reason
whatsoever (including, but not limited to, the

                                      -3-
<PAGE>

insolvency, bankruptcy or reorganization of Indemnitor), then the obligations of
Indemnitor  hereunder shall, to the extent of the payment rescinded or returned,
be deemed to have continued in existence,  notwithstanding such previous payment
made by  Indemnitor,  or receipt of payment by Lender,  and the  obligations  of
Indemnitor  hereunder  shall continue to be effective or be  reinstated,  as the
case  may be,  as to such  payment,  all as  though  such  previous  payment  by
Indemnitor had never been made.

         4. WAIVERS BY INDEMNITOR. To the extent permitted by law, Indemnitor
hereby waives and agrees not to assert or take advantage of (a) any right to
require Lender to proceed against any other person or to proceed against or
exhaust any security held by Lender at any time or to pursue any other remedy
in Lender's power or under any other agreement before proceeding against
Indemnitor hereunder; (b) any defense that may arise by reason of the
incapacity, lack of authority, death or disability of any other person or
persons or the failure of Lender to file or enforce a claim against the
estate (in administration, bankruptcy or any other proceeding) of any other
person or persons; (c) demand, presentment for payment, notice of nonpayment,
protest, notice of protest and all other notices of any kind, or the lack of
any thereof, including, without limitation, notice of the existence, creation
or incurring of any new or additional indebtedness or obligation or of any
action or nonaction on the part of Lender, any endorser or creditor of either
Indemnitor or any other person whomsoever under this or any other instrument
in connection with any obligation or evidence of indebtedness held by Lender;
(d) any defense based upon an election of remedies by Lender; (e) any right
or claim of right to cause a marshaling of the assets of either Indemnitor or
Borrower; (f) any principle or provision of law, statutory or otherwise,
which is or might be in conflict with the terms and provisions of this
Agreement; (g) any duty on the part of Lender to disclose to Indemnitor any
facts Lender may know about the Property, regardless of whether Lender has
reason to believe that any such facts materially increase the risk beyond
that which Indemnitor intends to assume or has reason to believe that such
facts are unknown to Indemnitor or has a reasonable opportunity to
communicate such facts to Indemnitor, it being understood and agreed that
Indemnitor is fully responsible for being and keeping informed of the
condition of the Property and of any and all circumstances bearing on the
risk that liability may be incurred by Indemnitor; (h) any lack of notice of
disposition or of manner of disposition of any collateral for the Loan; (i)
any invalidity, irregularity or unenforceability, in whole or in part, of any
of the Loan Documents; (j) any lack of commercial reasonableness in dealing
with the collateral for the Loan; (k) any deficiencies in the collateral for
the Loan or any deficiency in the ability of Lender to collect or to obtain
performance from any persons or entities now or hereafter liable for the
payment and performance of any obligation hereby guaranteed; (l) any
assertion or claim that the automatic stay provided by 11 U.S.C. Section.362
or any other stay provided under any other debtor relief law of any
jurisdiction whatsoever, now or hereafter in effect, shall operate to stay or
inhibit the ability of Lender to enforce any of its rights which Lender may
have against Indemnitor, or the collateral for the Loan; (m) any
modifications of the Loan Documents or any obligation of Borrower relating to
the Loan by operation of law or by action of any court, whether pursuant to
Title 11 of the United States Code, as amended, or any other debtor relief
law of any jurisdiction whatsoever, now or hereafter in effect, or otherwise;
and (n) any action, occurrence, event or matter consented to by Indemnitor
under SECTION 5(G) or any other provision hereof, or otherwise.

                                      -4-
<PAGE>

                  5. GENERAL PROVISIONS. (a) RIGHT TO INDEMNIFICATION NOT
AFFECTED BY KNOWLEDGE. Lender's right to defense, indemnification, payment of
Costs or other remedies based on this Agreement shall not be diminished or
affected in any way by any investigation conducted by Lender or other knowledge
acquired (or capable of being acquired) in any way by Lender at any time.

                  (b) SURVIVAL. This Agreement shall be deemed to be continuing
in nature and shall remain in full force and effect and shall survive the
payment of the indebtedness evidenced and secured by the Loan Documents and the
exercise of any remedy by Lender under the Mortgage or any of the other Loan
Documents, even if, as a part of such remedy, the Loan is paid or satisfied in
full.

                  (c) NO SUBROGATION; NO RECOURSE AGAINST LENDER.
Notwithstanding the satisfaction by Indemnitor of any liability hereunder,
Indemnitor shall not have any right of subrogation, contribution, reimbursement
or indemnity whatsoever or any right of recourse to or with respect to the
assets or property of Borrower. In connection with the foregoing, Indemnitor
expressly waives any and all rights of subrogation to Lender against Borrower,
and Indemnitor hereby waives any rights to enforce any remedy which Lender may
have against Borrower and any right to participate in any collateral for the
Loan. In addition to and without in any way limiting the foregoing, Indemnitor
hereby subordinates any and all indebtedness of Borrower now or hereafter owed
to Indemnitor to all indebtedness of Borrower to Lender, and agrees with Lender
that Indemnitor shall not demand or accept any payment of indebtedness or
interest from Borrower, shall not claim any offset or other reduction of
Indemnitor's obligations hereunder because of any such indebtedness and shall
not take any action to obtain any of the collateral securing the Loan. Further,
Indemnitor shall not have any right of recourse against Lender by reason of any
action Lender may take or omit to take under the provisions of this Agreement or
under the provisions of any of the Loan Documents.

                  (d) RESERVATION OF RIGHTS. Nothing contained in this Agreement
shall prevent or in any way diminish or interfere with any rights or remedies,
including, without limitation, the right to contribution or cost recovery, which
Lender may have against Indemnitor or any other party under the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (codified at
Title 42 U.S.C. ss.9601 eT Seq.), as it may be amended from time to time, or any
other applicable federal, state or local laws, all such rights being hereby
expressly reserved.

                  (e) RIGHTS CUMULATIVE; PAYMENTS. Lender's rights under this
Agreement shall be in addition to all rights of Lender under the Note, the
Mortgage and the other Loan Documents. FURTHER, PAYMENTS MADE BY INDEMNITOR
UNDER THIS AGREEMENT SHALL NOT REDUCE IN ANY RESPECT BORROWER'S OR INDEMNITOR'S
OBLIGATIONS AND LIABILITIES UNDER THE NOTE, THE MORTGAGE, THE GUARANTY OR THE
OTHER LOAN DOCUMENTS EXCEPT WITH RESPECT TO, AND TO THE EXTENT OF, BORROWER'S
OBLIGATION AND LIABILITY FOR THE PAYMENT MADE BY INDEMNITOR.

                                      -5-
<PAGE>

                  (f) NO LIMITATION ON LIABILITY. Indemnitor hereby consents and
agrees that Lender may at any time and from time to time without further consent
from Indemnitor do any of the following events, and the liability of Indemnitor
under this Agreement shall be unconditional and absolute and shall in no way be
impaired or limited by any of the following events, whether occurring with or
without notice to Indemnitor or with or without consideration: (i) any
extensions of time for performance required by any of the Loan Documents or
extension or renewal of the Note; (ii) any sale, assignment or foreclosure of
the Note, the Mortgage or any of the other Loan Documents or any sale or
transfer of the Property; (iii) any change in the ownership of Borrower,
including, without limitation, the withdrawal or removal of Indemnitor from any
current or future position of ownership, management or control of Borrower; (iv)
the accuracy or inaccuracy of the representations and warranties made by
Indemnitor herein or in the Mortgage or by Borrower in any of the Loan
Documents; (v) the release of Borrower or of any other person or entity from
performance or observance of any of the agreements, covenants, terms or
conditions contained in any of the Loan Documents by operation of law, Lender's
voluntary act or otherwise; (vi) the release or substitution in whole or in part
of any security for the Loan; (vii) Lender's failure to record the Mortgage or
to file any financing statement (or Lender's improper recording or filing
thereof) or to otherwise perfect, protect, secure or insure any lien or security
interest given as security for the Loan; (viii) the modification of the terms of
any one or more of the Loan Documents; or (ix) the taking or failure to take any
action of any type whatsoever. No such action which Lender shall take or fail to
take in connection with the Loan Documents or any collateral for the Loan, nor
any course of dealing with Borrower or any other person, shall limit, impair or
release Indemnitor's obligations hereunder, affect this Agreement in any way or
afford Indemnitor any recourse against Lender. Nothing contained in this Section
shall be construed to require Lender to take or refrain from taking any action
referred to herein.

                  (g) NOTICE. All notices, demands, requests or other
communications to be sent by one party to the other hereunder or required by law
shall be in writing and shall be deemed to have been validly given by delivery
of the same in the manner and to the address or facsimile number set forth in
the Loan Agreement for Lender and Borrower and in the Guaranties for RoweCom and
Dawson, or at such other address or facsimile number as may be designated by
such party as herein provided. All notices, demands and requests shall be
effective as set forth in the Loan Agreement and the Guaranties. Rejection or
other refusal to accept or the inability to deliver because of changed address
of which no notice was given as herein required shall be deemed to be receipt of
the notice, demand or request sent.

                  (h) SUCCESSIVE ACTIONS. A separate right of action hereunder
shall arise each time Lender acquires knowledge of any matter indemnified by
Indemnitor under this Agreement. Separate and successive actions may be brought
hereunder to enforce any of the provisions hereof at any time and from time to
time. No action hereunder shall preclude any subsequent action, and Indemnitor
hereby waives and covenants not to assert any defense in the nature of splitting
of causes of action or merger of judgments.

                                      -6-
<PAGE>

                  (i) WAIVER BY INDEMNITOR. Borrower and Indemnitor covenant and
agree that upon the commencement of a voluntary or involuntary bankruptcy
proceeding by or against Borrower, neither Borrower nor Indemnitor shall seek a
supplemental stay or otherwise seek, pursuant to 11 U.S.C. ss.105 or any other
provision of Title 11 United States Code, as amended, or any other debtor relief
law (whether statutory, common law, case law, or otherwise) of any jurisdiction
whatsoever, now or hereafter in effect, which may be or become applicable, to
stay, interdict, condition, reduce or inhibit the ability of Lender to enforce
any rights of Lender against Indemnitor by virtue of this Agreement or
otherwise.

                  (j) SPECIFIC NOTICE. IT IS EXPRESSLY AGREED AND UNDERSTOOD
THAT THIS AGREEMENT INCLUDES INDEMNIFICATION PROVISIONS WHICH, IN CERTAIN
CIRCUMSTANCES, COULD INCLUDE AN INDEMNIFICATION BY INDEMNITOR OF LENDER FROM
CLAIMS OR LOSSES ARISING AS A RESULT OF LENDER'S OWN NEGLIGENCE.

                  (k) MISCELLANEOUS. (i) Any amendments or modifications hereto,
in order to be effective, shall be in writing and executed by the parties
hereto. A determination that any provision of this Agreement is unenforceable or
invalid shall not affect the enforceability or validity of any other provision,
and any determination that the application of any provision of this Agreement to
any person or circumstance is illegal or unenforceable shall not affect the
enforceability or validity of such provision as it may apply to any other
persons or circumstances.

                  (ii) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS WITHOUT REGARD TO ITS
CONFLICTS OF LAWS RULES.

                  (iii) This Agreement shall bind the Indemnitor and the its
personal representatives, successors and assigns and shall inure to the benefit
of Lender, its officers, directors, shareholders, agents and employees of Lender
and their respective heirs, personal representatives, successors and assigns.
Notwithstanding the foregoing, Indemnitor shall not assign any of its rights or
obligations under this Agreement without the prior written consent of Lender,
which consent may be withheld by Lender in its sole discretion.

                  (iv) The failure of any party hereto to enforce any right or
remedy hereunder, or to promptly enforce any such right or remedy, shall not
constitute a waiver thereof nor give rise to any estoppel against such party nor
excuse any of the parties hereto from their respective obligations hereunder.
Any waiver of such right or remedy must be in writing and signed by the party to
be bound.

                  (v) This Agreement is subject to enforcement at law or in
equity, including actions for damages or specific performance.

                                      -7-
<PAGE>

                  (vi) Time is of the essence hereof.

                  (vii) The term "business day" as used herein shall mean a
weekday, Monday through Friday, except a legal holiday or a day on which banking
institutions in [Chicago, Illinois] are authorized by law to be closed.

                  (viii) The captions and headings of the sections and
paragraphs of this Agreement are for convenience of reference only and shall not
be construed in interpreting the provisions hereof.

                  (ix) In the event it is necessary for Lender to retain the
services of an attorney or any other consultants in order to enforce this
Agreement, or any portion thereof, Indemnitor agrees to pay to Lender any and
all costs and expenses, including, without limitation, reasonable attorney's
fees, incurred by Lender as a result thereof and such costs, fees and expenses
shall be included in Costs.

                  (x) This Agreement may be executed in any number of
counterparts, each of which shall be effective only upon delivery and thereafter
shall be deemed an original, and all of which shall be taken to be one and the
same instrument, for the same effect as if all parties hereto had signed the
same signature page.

                  (xi) All references to Indemnitor shall mean Faxon, McGregor,
Turner, RoweCom and Dawson, both individually and collectively, and jointly and
severally, and all representations, warranties, duties, covenants, agreements
and obligations of Indemnitor shall be the individual and collective
representations, warranties, duties, covenants, agreements and obligations of
each of Faxon, McGregor, Turner, RoweCom and Dawson.

                  (xii) All references to Borrower shall mean Faxon, McGregor
and Turner, both individually and collectively, and jointly and severally.

                                      -8-
<PAGE>

         IN WITNESS WHEREOF, Indemnitor has executed this Agreement as of the
day and year first written above.

                                         THE FAXON COMPANY, INC.

                                         By:
                                           -------------------------------------
                                           Name:
                                               ---------------------------------
                                           Title:
                                                 -------------------------------

                                          MCGREGOR SUBSCRIPTION COMPANY

                                          By:
                                            ------------------------------------
                                            Name:
                                                --------------------------------
                                            Title:
                                                 -------------------------------

                                          THE TURNER SUBSCRIPTION AGENCY,
                                          INCORPORATED

                                          By:
                                             -----------------------------------
                                             Name:
                                                 -------------------------------
                                             Title:
                                                  ------------------------------

                                          DAWSON, INC.

                                          By:
                                             -----------------------------------
                                             Name:
                                                  ------------------------------
                                             Title:
                                                   -----------------------------

                                          ROWECOM, INC.

                                          By:
                                             -----------------------------------
                                             Name:
                                                  ------------------------------
                                             Title:
                                                  ------------------------------

                                      -9-

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