Document:

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                                                                     EXHIBIT 4.2

                              VARSITYBOOKS.COM INC.

             THIRD AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

                                DECEMBER 22, 1999

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                                TABLE OF CONTENTS

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SECTION 1
RESTRICTIONS ON TRANSFERABILITY; REGISTRATION RIGHTS...........................2
       1.1    CERTAIN DEFINITIONS..............................................2
       1.2    RESTRICTIONS.....................................................4
       1.3    RESTRICTIVE LEGEND...............................................4
       1.4    NOTICE OF PROPOSED TRANSFERS.....................................5
       1.5    REQUESTED REGISTRATION...........................................5
       1.6    COMPANY REGISTRATION.............................................7
       1.7    REGISTRATION ON FORM S-3.........................................8
       1.8    EXPENSES OF REGISTRATION.........................................9
       1.9    REGISTRATION PROCEDURES..........................................9
       1.10   INDEMNIFICATION.................................................11
       1.11   INFORMATION BY HOLDER...........................................13
       1.12   RULE 144 REPORTING..............................................13
       1.13   TRANSFER OF REGISTRATION RIGHTS.................................13
       1.14   STANDOFF AGREEMENT..............................................14
       1.15   TERMINATION OF RIGHTS...........................................14
       1.16   OTHER REGISTRATION RIGHTS.......................................14

SECTION 2
RIGHT OF FIRST OFFER AND ELECTION OF DIRECTORS................................15
       2.1    INVESTORS' RIGHT OF FIRST OFFER.................................15
       2.2    ELECTION OF DIRECTORS...........................................16
       2.3    TERMINATION OF RIGHT OF FIRST OFFER AND ELECTION OF DIRECTORS...18

SECTION 3
AFFIRMATIVE COVENANTS OF THE COMPANY..........................................18
       3.1    FINANCIAL INFORMATION...........................................18
       3.2    DELIVERY OF INFORMATION.........................................18
       3.3    INSPECTION......................................................18
       3.4    EXPENSES OF THE BOARD OF DIRECTORS..............................19
       3.5    RESERVED EMPLOYEE SHARES........................................19
       3.6    ACQUISITION OF STOCK............................................19
       3.7    TITLES AND SALARIES.............................................19
       3.8    BOARD OF DIRECTORS MEETINGS.....................................19
       3.9    IRC SECTION 305.................................................19
       3.10   BOARD OF DIRECTORS..............................................19
       3.11   POSITIVE COVENANTS..............................................20
       3.12   NEGATIVE COVENANTS..............................................21
       3.13   STOCK RESTRICTION AGREEMENTS....................................22
       3.14   OBSERVER RIGHTS.................................................20
       3.15   TERMINATION OF SECTION 3 RIGHTS.................................22
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<TABLE>
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SECTION 4
MISCELLANEOUS.................................................................22
       4.1    GOVERNING LAW...................................................22
       4.2    THIRD PARTIES...................................................22
       4.3    SURVIVAL........................................................22
       4.4    SUCCESSORS AND ASSIGNS..........................................22
       4.5    ENTIRE AGREEMENT; AMENDMENT.....................................22
       4.6    EFFECT OF AMENDMENT OR WAIVER...................................23
       4.7    RIGHTS OF HOLDERS...............................................23
       4.8    NOTICES, ETC....................................................23
       4.9    DELAYS OR OMISSIONS.............................................24
       4.10   COUNTERPARTS....................................................24
       4.11   SEVERABILITY OF THIS AGREEMENT..................................24

EXHIBIT A   SERIES A PREFERRED INVESTOR SCHEDULE

EXHIBIT B   SERIES B PREFERRED INVESTOR SCHEDULE

EXHIBIT C   SERIES C PREFERRED INVESTOR SCHEDULE
</TABLE>

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             THIRD AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

       THIS THIRD AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT (the
"Agreement") is entered into as of this 22nd day of December, 1999 by and among
(i) VarsityBooks.com Inc., a Delaware corporation (the "Company"), with
principal offices located at 2020 K Street, N.W., Sixth Floor, Washington, D.C.
20006, (ii) those holders of the Company's Series A Preferred Stock (the "Series
A Preferred") listed on Exhibit A attached hereto (the "Series A Investors"),
(iii) Baker & Taylor, Inc. ("B&T"), a Delaware corporation with its principal
office at Five LakePointe Plaza, Suite 500, 2709 Water Ridge Parkway, Charlotte,
North Carolina 28217, (iv) those holders of the Company's Series B Preferred
Stock (the "Series B Preferred") listed on Exhibit B attached hereto (the
"Series B Investors"), (v) those holders of the Company's Series C Preferred
Stock (the "Series C Preferred" and together with the Series A Preferred and
Series B Preferred, the "Preferred Stock") listed on Exhibit C attached hereto
(the "Series C Investors"), (vi) Eric J. Kuhn, (vii) Timothy J. Levy, and
(viii) America Online, Inc. ("AOL" and together with the Series A Investors,
the Series B Investors and Series C Investors, the "Investors").

                                R E C I T A L S :

       WHEREAS, the Company, the Series A Investors and B&T have entered into
that certain Investors' Rights Agreement (the "Original Agreement"), dated as of
August 6, 1998;

       WHEREAS, the Company, the Series A Investors, Series B Investors and B&T
entered into that certain Amended and Restated Investors Rights Agreement (the
"Second Agreement"), dated as of February 25, 1999;

       WHEREAS, the Company, the Series A Investors, Series B Investors, the
Series C Investors, Eric Kuhn, Timothy Levy and B&T entered into that certain
Second Amended and Restated Investors Rights Agreement (the "Third Agreement"),
dated as of August 27, 1999;

       WHEREAS, on the date hereof, the Company and ICQ, Inc. are entering into
that certain Interactive Marketing Agreement (the "Marketing Agreement")
pursuant to which the Company shall grant that certain contingent Stock
Subscription Warrant (the "Warrant") dated as of December 22, 1999, to AOL to
purchase an aggregate of up to 463,246 shares of the Common Stock of the
Company;

       WHEREAS, it is a condition to the Warrant and to the closing of the
transactions contemplated by the Marketing Agreement that the Company and the
Investors enter into this Agreement to, among other things, amend and restate
the rights granted pursuant to the Third Agreement in order to provide AOL with
certain rights in connection with the Warrant;

       WHEREAS, pursuant to Section 4.5 of the Third Agreement, the Third
Agreement or any term thereof may be amended, waived, discharged or terminated
by a written instrument signed by the party against whom enforcement of any such
amendment, waiver, discharge or termination is sought; provided, however, that
(i) a majority of the outstanding Registrable Securities whether or not
converted by the Series A Investors and B&T and (ii) a majority of the
outstanding Registrable Securities whether or not converted held by the Series B
Investors, each

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group voting separately as a class, may waive or amend, on behalf of the
Investors and other holders of Shares, any provisions of the Second Agreement
benefiting the Series A Investors and Series B Investors so long as the effect
thereof will be that the Series A Investors and Series B Investors and other
holders of Shares will be treated equally, and (iii) a majority of the
outstanding Registrable Securities (whether or not converted) held by the Series
C Investors, each group voting separately as a class, may waive or amend, on
behalf of the Investors and other holders of Shares, any provisions of the Third
Agreement benefiting the Investors so long as the effect thereof will be that
the Investors and other holders of Shares will be treated equally; provided,
further, that (i) any action that would affect the rights of Mr. Kuhn or Mr.
Levy under the Third Agreement will only be effective with their written consent
and (ii) the rights of any series of Preferred Stock, any individual, or any
entity to nominate a director under Section 2.2 will not be amended without the
consent of such individual or a majority of the holders of such series; and

       WHEREAS, by entering into this Agreement, the Series A Investors whose
signatures are set forth on the signature pages hereto, which Series A Investors
constitute a majority of the outstanding Registrable Securities; the Series B
Investors whose signatures are set forth on the signature pages hereto, which
Series B Investors constitute a majority of the outstanding Registrable
Securities; the Series C Investors whose signatures are set forth on the
signature pages hereto, which Series C Investors constitute a majority of the
outstanding Registrable Securities; B&T; Eric Kuhn and Timothy Levy, hereby
consent to amending the Third Agreement in the manner set forth herein.

       NOW THEREFORE, in consideration of the mutual agreements, covenants and
conditions contained herein, the Company and each of the Investors hereby agree
as follows:

                                   SECTION 1
              RESTRICTIONS ON TRANSFERABILITY; REGISTRATION RIGHTS

       1.1    CERTAIN DEFINITIONS.

       All capitalized terms used herein and not defined below shall have the
meanings set forth in the Series C Stock Purchase Agreement. The following terms
shall have the following respective meanings:

              "COMMISSION" shall mean the Securities and Exchange Commission or
any other federal agency at the time administering the Securities Act.

              "CONVERSION SHARES" shall mean the Common Stock issued or issuable
upon conversion of the Preferred Stock.

              "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended, or any similar federal statute and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

              "HOLDER" shall mean Mr. Kuhn, Mr. Levy, B&T any Investor holding
Registrable Securities and any person holding Registrable Securities to whom the
rights under this Agreement have been transferred in accordance with Section
1.13 hereof.

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              "INITIATING HOLDERS" shall mean any Investors or transferees of
any Investors under Section 1.13 hereof who in the aggregate are Holders of not
less than twenty percent (20%) of the Registrable Securities; provided, that Mr.
Kuhn or Mr. Levy shall be Initiating Holders for purposes of Section 1.7 without
regard to the percentage of Registrable Securities held by them, and provided,
that AOL shall be an Initiating Holder for purposes of Sections 1.5 and 1.7
without regard to the percentage of Registrable Securities held by AOL.

              "REGISTER", "REGISTERED" and "REGISTRATION" shall refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement.

              "REGISTRATION EXPENSES" shall mean all expenses incurred by the
Company in complying with Sections 1.5 and 1.6 hereof, including, without
limitation, all registration, qualification and filing fees, printing expenses,
escrow fees, fees and disbursements of counsel for the Company, blue sky fees
and expenses, all fees and disbursements of one counsel for the Holders (as
limited by Section 1.8), and the expense of any special audits incident to or
required by any such registration (but excluding the compensation of regular
employees of the Company which shall be paid in any event by the Company).

              "REGISTRABLE SECURITIES" shall mean (i) the Conversion Shares; and
(ii) any Common Stock of the Company issued or issuable in respect of the Shares
or Conversion Shares or other securities issued or issuable with respect to the
Shares or Conversion Shares upon any stock split, stock dividend,
recapitalization, or similar event, or any Common Stock otherwise issued or
issuable with respect to the Shares or Conversion Shares; (iii) the shares of
Common Stock purchased by B&T pursuant to that certain Stock Purchase Agreement
and Warrant, each dated July 10, 1998; (iv) the shares of Common Stock held by
Mr. Kuhn and Mr. Levy; and (v) the shares of Common Stock purchased by AOL
pursuant to the Warrant, provided, however, that shares of Common Stock or other
securities shall only be treated as Registrable Securities if and so long as
they have not been (A) sold to or through a broker or dealer or underwriter in a
public distribution or a public securities transaction, or (B) sold in a
transaction exempt from the registration and prospectus delivery requirements of
the Securities Act under Rule 144 so that all transfer restrictions and
restrictive legends with respect thereto are removed upon the consummation of
such sale

              "RESTRICTED SECURITIES" shall mean the securities of the Company
required to bear the legend referred to by the Securities Act as set forth in
Section 1.3 hereof.

              "RULE 144" means Rule 144 promulgated under the Securities Act.

              "RULE 145" means Rule 145 promulgated under the Securities Act.

              "SECURITIES ACT" shall mean the Securities Act of 1933, as
amended, or any similar federal statute and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

              "SELLING EXPENSES" shall mean all underwriting discounts, selling
commissions and stock transfer taxes applicable to the securities registered by
the Holders and, except as set forth under "Registration Expenses," all fees and
disbursements of counsel for any Holder.

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              "SHARES" shall mean the shares of Series A Preferred sold pursuant
to the Series A Convertible Preferred Stock Purchase Agreement, dated August 6,
1998, the shares of Series B Preferred sold pursuant to the Series B Convertible
Stock Purchase Agreement dated February 25, 1999, the shares of Series C
Preferred sold pursuant to the Series C Stock Purchase Agreement, the shares of
Common Stock purchased by B&T pursuant to that certain Stock Purchase Agreement
and Warrant, each dated July 10, 1998, and the shares of Common Stock purchased
by AOL pursuant to the Warrant dated December 22, 1999.

       1.2    RESTRICTIONS.

       The Shares and the Conversion Shares shall not be sold, assigned,
transferred or pledged except upon the conditions specified in this Agreement,
which conditions are intended to ensure compliance with the provisions of the
Securities Act. Each Investor will cause any proposed purchaser, assignee,
transferee or pledgee of the Shares and the Conversion Shares to agree to take
and hold such securities subject to the provisions and upon the conditions
specified in this Agreement.

       1.3    RESTRICTIVE LEGEND.

       Each certificate representing (i) the Shares, (ii) the Conversion Shares,
and (iv) any other securities issued in respect of the securities referenced in
clauses (i) and (ii) upon any stock split, stock dividend, recapitalization,
merger, consolidation or similar event, shall (unless otherwise permitted by the
provisions of Section 1.4 below) be stamped or otherwise imprinted with legends
in the following form (in addition to any legend required under applicable state
securities laws):

              "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
              INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
              OF 1933, AS AMENDED. SUCH SHARES MAY NOT BE SOLD, TRANSFERRED OR
              PLEDGED IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH SALE OR
              TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
              REQUIREMENTS OF SAID ACT. THE COMPANY MAY REASONABLY REQUEST AN
              OPINION OF COUNSEL (WHICH MAY BE COUNSEL FOR THE COMPANY) STATING
              THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND
              PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT."

              "THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED
              ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE
              COMPANY AND THE SHAREHOLDER, A COPY OF WHICH IS ON FILE WITH THE
              SECRETARY OF THE COMPANY."

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              Each Investor and Holder consents to the Company making a notation
on its records and giving instructions to any transfer agent of the Restricted
Securities in order to implement the restrictions on transfer established in
this Section 1.

       1.4    NOTICE OF PROPOSED TRANSFERS.

       The holder of each certificate representing Restricted Securities, by
acceptance thereof, agrees to comply in all respects with the provisions of this
Section 1. Prior to any proposed sale, assignment, transfer or pledge of any
Restricted Securities, unless there is in effect a registration statement under
the Securities Act covering the proposed transfer, the holder thereof shall give
written notice to the Company of such holder's intention to effect such
transfer, sale, assignment or pledge. Each such notice shall describe the manner
and circumstances of the proposed transfer, sale, assignment or pledge in
sufficient detail, and shall be accompanied at such holder's expense by either
(i) an unqualified written opinion of legal counsel who shall be, and whose
legal opinion shall be, reasonably satisfactory to the Company, addressed to the
Company, to the effect that the proposed transfer of the Restricted Securities
may be effected without registration under the Securities Act, (ii) a "no
action" letter from the Commission to the effect that the transfer of such
securities without registration will not result in a recommendation by the staff
of the Commission that action be taken with respect thereto, or (iii) any other
evidence reasonably satisfactory to counsel to the Company, whereupon the holder
of such Restricted Securities shall be entitled to transfer such Restricted
Securities in accordance with the terms of the notice delivered by the holder to
the Company. The Company will not require such a legal opinion or "no action"
letter (a) in any transaction in compliance with Rule 144, (b) in any
transaction in which an Investor which is a corporation distributes Restricted
Securities solely to its majority-owned subsidiaries, affiliates or stockholders
for no consideration, or (c) in any transaction in which an Investor which is a
partnership or a limited liability company distributes Restricted Securities
solely to partners, members or other equity holders thereof for no
consideration; provided that each transferee agrees in writing to be subject to
the terms of this Section 1.4. Each certificate evidencing the Restricted
Securities transferred as above provided shall bear, except if such transfer is
made pursuant to Rule 144, the appropriate restrictive legends referring to the
Securities Act set forth in Section 1.3 above, except that such certificate
shall not bear such restrictive legend if, in the opinion of counsel for such
holder and the Company, such legend is not required in order to establish
compliance with any provisions of the Securities Act.

       1.5    REQUESTED REGISTRATION.

              (a) Request for Registration. In case the Company shall receive
from Initiating Holders a written request that the Company effect any
registration, qualification or compliance with respect to the Registrable
Securities, the reasonably anticipated aggregate offering price of which exceeds
five million dollars ($5,000,000), the Company will:

                     (i)    promptly give written notice of the proposed
registration, qualification or compliance to all other Holders; and

                     (ii)   as soon as practicable, use its best efforts to
effect such registration, qualification or compliance (including, without
limitation, the execution of an

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undertaking to file post-effective amendments, appropriate qualification under
applicable blue sky or other state securities laws and appropriate compliance
with applicable regulations issued under the Securities Act and any other
governmental requirements or regulations) as may be so requested and as would
permit or facilitate the sale and distribution of all or such portion of such
Registrable Securities as are specified in such request, together with all or
such portion of the Registrable Securities of any Holder or Holders joining in
such request as are specified in a written request received by the Company
within thirty (30) days after receipt of such written notice from the Company;
provided, however, that the Company shall not be obligated to take any action to
effect any such registration, qualification or compliance pursuant to this
Section 1.5:

                            (1) In any particular jurisdiction in which the
Company would be required to execute a general consent to service of process in
effecting such registration, qualification or compliance unless the Company is
already subject to service in such jurisdiction and except as may be required by
the Securities Act;

                            (2) Prior to the earlier of (i) six (6) months
following the closing date of the first public offering of the Company's
securities to the general public which is effected pursuant to a registration
statement filed with, and declared effective by, the Commission under the
Securities Act (the "Initial Public Offering") or (ii) August 6, 2001;

                            (3) Prior to ninety (90) days following the closing
date of the Company's Initial Public Offering;

                            (4) If the Company delivers notice to the Holders
within thirty (30) days of such request that the Company intends to file a
registration statement for the Company's Initial Public Offering within ninety
(90) days;

                            (5) (a) After the Company has effected two (2) such
registrations pursuant to this Section 1.5(a) with respect to rights held
hereunder by the Series A Investors, (b) after the Company has effected two (2)
such registrations pursuant to this Section 1.5(a) with respect to rights held
hereunder by the Series B Investors, (c) after the Company has effected two (2)
such registrations pursuant to this Section 1.5(a) with respect to rights held
hereunder by the Series C Investors, and (d) after the Company has effected two
(2) such registrations pursuant to this Section 1.5(a) with respect to rights
held hereunder by AOL, provided that, notwithstanding any provision hereof to
the contrary, AOL shall not initiate more than one (1) registration pursuant to
this Section 1.5(a) prior to the first anniversary of the Initial Public
Offering; or

                            (6) If the Company shall furnish to such Holders a
certificate, signed by the President of the Company, stating that in the good
faith judgment of the Board of Directors it would be detrimental to the Company
or its shareholders for a registration statement to be filed in the near future,
then the Company's obligation to use its best efforts to register, qualify or
comply under this Section 1.5 shall be deferred for a period not to exceed
ninety (90) days from the date of receipt of written request from the Initiating
Holders; provided, however, that the Company may not utilize this right more
than once in any twelve (12) month period.

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       Subject to the foregoing clauses (1) through (6), the Company shall file
a registration statement covering the Registrable Securities so requested to be
registered as soon as practicable after receipt of the request or requests of
the Initiating Holders.

              (b) Underwriting. If a registration pursuant to Section 1.5 is for
a registered public offering involving an underwriting, the Company shall so
advise the Holders as part of the notice given pursuant to Section 1.5(a)(i).
The right of any Holder to registration pursuant to Section 1.5 shall be
conditioned upon such Holder's participation in the underwriting arrangements
required by this Section 1.5 and the inclusion of such Holder's Registrable
Securities in the underwriting, to the extent requested, to the extent provided
herein.

       The Company shall (together with all Holders proposing to distribute
their securities through such underwriting) enter into an underwriting agreement
in customary form with the managing underwriter selected for such underwriting
by a majority in interest of the Initiating Holders (which managing underwriter
shall be reasonably acceptable to the Company). Notwithstanding any other
provision of this Section 1.5, if the managing underwriter advises the
Initiating Holders in writing that marketing factors require a limitation of the
number of shares to be underwritten, then the Company shall so advise all
Holders of Registrable Securities and the number of shares of Registrable
Securities that may be included in the registration and underwriting shall be
allocated first among all Holders thereof other than Mr. Kuhn and Mr. Levy in
proportion, as nearly as practicable, to the respective amounts of Registrable
Securities held by such Holders at the time of filing the registration statement
and then, to the extent any Registrable Securities may be included that are held
by Mr. Kuhn and Mr. Levy, in proportion to the amounts held by them; provided,
however, that with respect to any public offering following the Initial Public
Offering, the number of shares allocated among all Holders (including Mr. Kuhn
and Mr. Levy) shall not be less than thirty percent (30%) of the number of
shares to be sold in such public offering. No Registrable Securities excluded
from the underwriting by reason of the underwriter's marketing limitation shall
be included in such registration. To facilitate the allocation of shares in
accordance with the above provisions, the Company or the underwriters may round
the number of shares allocated to any Holder to the nearest one hundred (100)
shares.

       If any Holder of Registrable Securities disapproves of the terms of the
underwriting, such person may elect to withdraw therefrom by written notice to
the Company, the managing underwriter and the Initiating Holders. The
Registrable Securities and/or other securities so withdrawn shall also be
withdrawn from registration.

       1.6    COMPANY REGISTRATION.

              (a) Notice of Registration. If at any time or from time to time,
the Company shall determine to register any of its securities, either for its
own account or the account of a security holder or holders other than (i) the
Company's Initial Public Offering, (ii) a registration relating solely to
employee benefit plans, or (iii) a registration relating solely to a transaction
subject to Rule 145, the Company will:

                     (i)    promptly give to each Holder written notice thereof;
and

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                     (ii)   include in such registration (and any related
qualification under blue sky laws or other compliance), and in any underwriting
involved therein, all the Registrable Securities specified in a written request
or requests made within thirty (30) days after receipt of such written notice
from the Company by any Holder.

              (b) Underwriting. If the registration of which the Company gives
notice is for a registered public offering involving an underwriting, the
Company shall so advise the Holders as a part of the written notice given
pursuant to Section 1.6(a)(i). In such event, the right of any Holder to
registration pursuant to Section 1.6 shall be conditioned upon such Holder's
participation in such underwriting and the inclusion of Registrable Securities
in the underwriting to the extent provided herein. All Holders proposing to
distribute their securities through such underwriting shall (together with the
Company and the other holders distributing their securities through such
underwriting) enter into an underwriting agreement in customary form with the
managing underwriter selected for such underwriting by the Company (or by the
Holders who have demanded such registration). Notwithstanding any other
provision of this Section 1.6, if the managing underwriter determines that
marketing factors require a limitation of the number of shares to be
underwritten, the managing underwriter may limit the number of Registrable
Securities to be included in the registration and underwriting, on a pro rata
basis based on the total number of securities (including, without limitation,
Registrable Securities) entitled to registration pursuant to registration rights
granted to the participating Holders other than Mr. Kuhn and Mr. Levy by the
Company at the time of the filing of the registration statement and then, to the
extent any Registrable Securities may be included that are held by Mr. Kuhn and
Mr. Levy, in proportion to the amounts held by them; provided, however, that (i)
in no event shall any shares being sold by a shareholder exercising a demand
registration right either pursuant to or substantially the same as that granted
in Section 1.5 hereof be excluded from the offering, except as provided in
Section 1.5(b), and (ii) that with respect to any public offering following the
Initial Public Offering, the number of shares allocated among all Holders of
Registrable Securities exercising its rights under this Section 1.6 shall not be
less than thirty percent (30%) of the number of shares to be sold in such public
offering. To facilitate the allocation of shares in accordance with the above
provisions, the Company or the underwriters may round the number of shares
allocated to any Holder or other holder to the nearest one hundred (100) shares.
If any Holder or other holder disapproves of the terms of any such underwriting,
he or she may elect to withdraw therefrom by written notice to the Company and
the managing underwriter. Any securities excluded or withdrawn from such
underwriting shall be withdrawn from such registration.

              (c) Right to Terminate Registration. The Company shall have the
right to terminate or withdraw any registration initiated by it under this
Section 1.6 prior to the effectiveness of such registration, whether or not any
Holder has elected to include securities in such registration.

       1.7    REGISTRATION ON FORM S-3.

       In addition to the rights set forth in Section 1.5, if the Initiating
Holders request that the Company file a registration statement on Form S-3 (or
any successor thereto) for a public offering of shares of Registrable Securities
the reasonable anticipated aggregate price to the public of which would exceed
one million dollars ($1,000,000), and the Company is a registrant

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entitled to use Form S-3 to register securities for such offering, the Company
shall use its best efforts to cause such shares to be registered for the
offering on such form (or any successor thereto). The Company shall not be
obligated to file (i) more than four (4) registration statements under this
Section 1.7 in any consecutive twelve (12) month period.

       1.8    EXPENSES OF REGISTRATION.

       All Registration Expenses incurred in connection with demand
registrations pursuant to Section 1.5, all Company registrations pursuant to
Section 1.6, and all registrations on Form S-3 pursuant to Section 1.7 shall be
borne by the Company, provided that the Company shall not be required to pay the
Registration Expenses of any registration proceeding begun pursuant to Section
1.5, the request of which has been subsequently withdrawn by the Initiating
Holders. In such case, (i) the Holders of Registrable Securities to have been
registered shall bear all such Registration Expenses pro rata on the basis of
the number of shares to have been registered, and (ii) the Company shall be
deemed not to have effected a registration pursuant to subparagraph 1.5(a) of
this Agreement. Notwithstanding the foregoing, however, if at the time of the
withdrawal, the Holders have learned of a material adverse change in the
condition, business or prospects of the Company from that known to the Holders
at the time of their request, of which the Company had knowledge at the time of
the request, then the Holders shall not be required to pay any of said
Registration Expenses. In such case, the Company shall be deemed not to have
effected a registration pursuant to subparagraph 1.5(a) of this Agreement.
Unless otherwise stated, all Selling Expenses relating to securities registered
on behalf of the Holders and all other registration expenses incurred in
connection with any registration pursuant to this Section 1 shall be borne by
the Holders of the registered securities included in such registration pro rata
on the basis of the number of shares so registered.

       1.9    REGISTRATION PROCEDURES.

       In the case of each registration, qualification or compliance effected by
the Company pursuant to this Section 1, the Company will keep each Holder
advised in writing as to the initiation of each registration, qualification and
compliance and as to the completion thereof. At its expense the Company will:

              (a) Prepare and file with the Commission a registration statement
with respect to such securities and use its best efforts to cause such
registration statement to become and remain effective for at least one hundred
eighty (180) days or until the distribution described in the registration
statement has been completed;

              (b) Furnish to the Holders participating in such registration and
to the underwriters of the securities being registered such reasonable number of
copies of the registration statement, preliminary prospectus, final prospectus
and such other documents as such underwriters may reasonably request in order to
facilitate the public offering of such securities;

              (c) Use its best efforts to register and qualify the securities
covered by the registration statement under such other securities or Blue Sky
laws of such jurisdictions as shall be reasonably requested by the Holders,
provided that the Company shall not be required in

                                       9
<PAGE>   13

connection therewith or as a condition thereto to qualify to do business or to
file a general consent to service of process in any such states or
jurisdictions;

              (d) In the event of any underwritten public offering, enter into
and perform all its obligations under an underwriting agreement, in usual and
customary form, with the managing underwriter of such offering. Each Holder
participating in such underwriting shall also enter into and perform its
obligations under such an agreement;

              (e) Notify each Holder of Registrable Securities covered by such
registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event
as a result of which the prospectus included in such registration statement, as
then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statement therein not misleading in light of the circumstances then existing;
and, at the request of such Holder, prepare and furnish to such Holder a
reasonable number of copies of a supplement to or an amendment of such
prospectus as may be necessary so that, as thereafter delivered to the offerees
of such shares, such prospectus shall not include an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances then existing;

              (f) Notify each Holder promptly (i) of the receipt by the Company
of any notification with respect to any comments by the Commission with respect
to such registration statement or prospectus or any amendment or supplement
thereto or any request by the Commission for the amending or supplementing
thereof or for additional information with respect thereto, (ii) of the receipt
by the Company of any notification with respect to the issuance by the
Commission of any stop order suspending the effectiveness of such registration
statement or prospectus or any amendment or supplement thereto or the initiation
or threatening of any proceeding for that purpose and (iii) of the receipt by
the Company of any notification with respect to the suspension of the
qualification of such Registrable Securities, for sale in any jurisdiction or
the initiation or threatening of any proceeding for such purposes;

              (g) Use its best efforts to cause such Registrable Securities to
be registered with or approved by such other governmental agencies or
authorities as may be necessary by virtue of the business and operations of the
Company to enable the seller or sellers thereof to consummate the disposition of
such Registrable Securities;

              (h) Use its best efforts to obtain from its independent certified
public accountants "comfort" letters in customary form and at customary times
and covering matters of the type customarily covered by comfort letters;

              (i) Use its best efforts to obtain from its counsel an opinion or
opinions in customary form;

              (j) Provide a transfer agent and registrar (which may be the same
entity and which may be the Company) for such Registrable Securities; and

              (k) Issue to any underwriter to which any Holder of Registrable
Securities may sell shares in such offering certificates evidencing such
Registrable Securities;

                                       10
<PAGE>   14

       1.10   INDEMNIFICATION.

              (a) The Company will indemnify each Holder of Registrable
Securities included in a registration pursuant to this Agreement, each of its
officers directors and partners, and each person controlling such Holder within
the meaning of Section 15 of the Securities Act, with respect to which
registration, qualification or compliance has been effected pursuant to this
Agreement, and each underwriter, if any, and each person who controls any
underwriter within the meaning of Section 15 of the Securities Act, against all
expenses, claims, losses, damages or liabilities (or actions in respect
thereof), including any of the foregoing incurred in settlement of any
litigation, commenced or threatened, arising out of or based on any untrue
statement (or alleged untrue statement) of a material fact contained in any
registration statement, prospectus, offering circular or other document, or any
amendment or supplement thereto, incident to any such registration,
qualification or compliance, or based on any omission (or alleged omission) to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, or any violation by the Company of the
Securities Act, the Exchange Act, state securities laws or any rule or
regulation promulgated under such laws applicable to the Company in connection
with any such registration, qualification or compliance, and the Company will
reimburse each such Holder, each of its officers and directors, and each person
controlling such Holder, each such underwriter and each person who controls any
such underwriter, for any legal and any other expenses reasonably incurred in
connection with investigating, preparing or defending any such claim, loss,
damage, liability or action, as such expenses are incurred, provided that the
Company will not be liable in any such case to the extent that any such claim,
loss, damage, liability or expense arises out of or is based on any untrue
statement or omission or alleged untrue statement or omission, made in reliance
upon and in conformity with written information furnished to the Company by an
instrument duly executed by any Holder, controlling person or underwriter and
stated to be specifically for use therein.

              (b) Each Holder, severally and not jointly, will, if Registrable
Securities held by such Holder are included in the securities as to which such
registration, qualification or compliance is being effected, indemnify the
Company, each of its directors and officers, each underwriter, if any, of the
Company's securities covered by such a registration statement, each person who
controls the Company or such underwriter within the meaning of Section 15 of the
Securities Act, and each other such Holder, each of its officers, directors and
partners and each person controlling such Holder within the meaning of Section
15 of the Securities Act, against all claims, losses, damages and liabilities
(or actions in respect thereof) arising out of or based on any untrue statement
(or alleged untrue statement) of a material fact contained in any such
registration statement, prospectus, offering circular or other document, or any
omission (or alleged omission) to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, and
will reimburse the Company, such Holders, such directors, officers, partners,
persons, underwriters or control persons for any legal or any other expenses
reasonably incurred in connection with investigating or defending any such
claim, loss, damage, liability or action, as such expenses are incurred, in each
case to the extent, but only to the extent, that such untrue statement (or
alleged untrue statement) or omission (or alleged omission) is made in such
registration statement, prospectus, offering circular or other document in
reliance upon and in conformity with written information furnished to the
Company by an instrument duly executed by such Holder and stated to be
specifically for use therein.

                                       11
<PAGE>   15

Notwithstanding the foregoing, the liability of each Holder under this Section
1.10(b) shall be limited to an amount equal to the net proceeds of the shares
sold by such Holder.

              (c) Each party entitled to indemnification under this Section 1.10
(the "Indemnified Party") shall give notice to the party required to provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom, provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or litigation, shall be
approved by the Indemnified Party (whose approval shall not unreasonably be
withheld), and the Indemnified Party may participate in such defense at such
party's expense; provided, however, that an Indemnified Party (together with all
other Indemnified Parties which may be represented without conflict by one
counsel) shall have the right to retain one separate counsel, with the fees and
expenses to be paid by the Indemnifying Party, if representation of such
Indemnified Party by the counsel retained by the Indemnifying Party would be
inappropriate due to actual or potential differing interests between such
Indemnified Party and any other party represented by such counsel in such
proceeding. The failure of any Indemnified Party to give notice as provided
herein shall not relieve the Indemnifying Party of its obligations under this
Section 1.10 unless the failure to give such notice is materially prejudicial to
an Indemnifying Party's ability to defend such action. No Indemnifying Party, in
the defense of any such claim or litigation, shall, except with the consent of
each Indemnified Party, consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the giving by
the claimant or plaintiff to such Indemnified Party of a release from all
liability in respect to such claim or litigation.

              (d) If the indemnification provided for in this Section is held by
a court of competent jurisdiction to be unavailable to an indemnified party with
respect to any loss, claim, damage, liability or action referred to herein, then
the indemnifying party, in lieu of indemnifying such indemnified party
hereunder, shall contribute to the amounts paid or payable by such indemnified
party as a result of such loss, claim, damage, liability or action in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party on the one hand and of the indemnified party on the other in connection
with the statements or omissions which resulted in such loss, claim, damage or
liability as well as any other relevant equitable considerations. The relative
fault of the indemnifying party and of the indemnified party shall be determined
by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the indemnifying party or by
the indemnified party and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The Company and the Holders of Registrable Securities agree that it would not be
just and equitable if contributions pursuant to this paragraph were determined
by pro rata allocation or by any other method of allocation which did not take
into account the equitable considerations referred to herein. The amount paid or
payable to an indemnified party as a result of the losses, claims, damages,
liabilities or expenses referred to above shall be deemed to include, subject to
the limitation set forth in this Section (h)(iv), any legal or other expenses
reasonably incurred in connection with investigating or defending the same.
Notwithstanding the foregoing, in no event shall the amount contributed by a
Holder of

                                       12
<PAGE>   16

Registrable Securities exceed the aggregate net offering proceeds received by
such Holder from the sale of such Holder's Registrable Securities.

       1.11   INFORMATION BY HOLDER.

       The Holder or Holders of Registrable Securities included in any
registration shall furnish to the Company such information regarding such Holder
or Holders, the Registrable Securities held by them and the distribution
proposed by such Holder or Holders as the Company may request in writing and as
shall be required in connection with any registration, qualification or
compliance referred to in this Section 1.

       1.12   RULE 144 REPORTING.

       With a view to making available the benefits of certain rules and
regulations of the Commission which may at any time permit the sale of the
Restricted Securities to the public without registration, after such time as a
public market exists for the Common Stock of the Company, the Company agrees to
use its best efforts to:

              (a) Make and keep public information available, as those terms are
understood and defined in Rule 144, at all times after the effective date that
the Company becomes subject to the reporting requirements of the Securities Act
or the Exchange Act;

              (b) File with the Commission in a timely manner all reports and
other documents required of the Company under the Securities Act and the
Exchange Act (at any time after it has become subject to such reporting
requirements); and

              (c) So long as an Investor owns any Restricted Securities, to
furnish to each Investor forthwith upon request a written statement by the
Company as to its compliance with the reporting requirements of said Rule 144
(at any time after ninety (90) days after the effective date of the first
registration statement filed by the Company for an offering of its securities to
the general public), and of the Securities Act and the Exchange Act (at any time
after it has become subject to such reporting requirements), a copy of the most
recent annual or quarterly report of the Company, and such other reports and
documents of the Company and other information in the possession of or
reasonably obtainable by the Company as an Investor may reasonably request in
availing itself of any rule or regulation of the Commission allowing an Investor
to sell any such securities without registration.

       1.13   TRANSFER OF REGISTRATION RIGHTS.

       The rights to cause the Company to register securities granted Investors
under Sections 1.5, 1.6 and 1.7 may be assigned to a transferee or assignee
reasonably acceptable (unreasonable transferees or assignees would include, but
not be limited to, competitors or potential competitors of the Company as
determined by the Board of Directors prior to transfer) to the Company in
connection with any transfer or assignment of Registrable Securities by an
Investor (together with any affiliate); provided that (a) such transfer may
otherwise be effected in accordance with applicable securities laws, (b) notice
of such assignment is given to the

                                       13
<PAGE>   17

Company, (c) such transferee or assignee covenants to be bound by the
registration rights provisions in this Agreement, and (d) such transferee or
assignee (i) is a wholly-owned subsidiary, affiliate, or constituent partner
(including limited partners, retired partners, spouses and ancestors, lineal
descendants and siblings of such partners or spouses who acquire Registrable
Securities by gift, will or intestate succession) of such Investor, (ii) is any
family member or trust for the benefit of Mr. Kuhn, Mr. Levy or any individual
Investor, or (iii) acquires from Mr. Kuhn, Mr. Levy or such Investor at least
fifty thousand (50,000) shares of Restricted Securities (as appropriately
adjusted for stock splits and the like).

       1.14   STANDOFF AGREEMENT.

       Each Holder holding more than one percent (1 %) of the Company's Common
Stock on a fully-diluted basis agrees in connection with the Initial Public
Offering and the first public offering of the Company's securities thereafter
(other than a registration of securities in a transaction subject to Rule 145 or
with respect to an employee benefit plan) that, upon request of the Company or
the underwriters managing any underwritten offering of the Company's securities,
not to sell, make any short sale of, loan, grant any option for the purchase of,
or otherwise dispose of any Registrable Securities (other than those included in
the registration) without the prior written consent of the Company or such
underwriters, as the case may be, for such period of time (not to exceed one
hundred eighty (180) days from the effective date of such registration) as may
be requested by the Company or such managing underwriters; provided, that (i)
the officers and directors of the Company also agree to such restrictions, and
(ii) the holders of the Company's securities with registration rights similar to
those granted in Sections 1.5, 1.6 and 1.7 herein also agree to, or are bound
by, such restrictions.

       1.15   TERMINATION OF RIGHTS.

       The rights of any particular Holder to cause the Company to register
securities under Sections 1.5, 1.6 and 1.7 shall terminate with respect to such
Holder on the fifth year anniversary of the effective date of the Company's
Initial Public Offering.

       1.16   OTHER REGISTRATION RIGHTS.

       The Company shall not grant any registration rights to any existing or
future holder of equity securities of the Company, or securities convertible
into Common Stock of the Company, which rights are more favorable than the
registration rights granted to the Investors.

                                       14
<PAGE>   18

                                   SECTION 2
                 RIGHT OF FIRST OFFER AND ELECTION OF DIRECTORS

       2.1    INVESTORS' RIGHT OF FIRST OFFER.

              (a) Right of First Offer. Subject to the terms and conditions
contained in this Section 2.1, the Company hereby grants to each Investor the
right of first offer to purchase its Pro Rata Portion of any New Securities (as
defined in subsection 2.1(b)) which the Company may, from time to time, propose
to sell and issue. An Investor's "Pro Rata Portion" for purposes of this Section
2.1 is the ratio that (x) the sum of the number of shares of the Company's
Common Stock then held by such Investor and the number of shares of the
Company's Common Stock issuable upon conversion of the Preferred Stock then held
by such Investor bears to (y) the sum of the total number of shares of Company's
Common Stock then outstanding and the number of shares of the Company's Common
Stock issuable upon conversion of the then outstanding securities exercisable
for or convertible into, directly or indirectly, shares of Common Stock.

              (b) Definition of New Securities. Except as set forth below, "New
Securities" shall mean any shares of capital stock of the Company, including
Common Stock and Preferred Stock, whether authorized or not, and rights, options
or warrants to purchase said shares of Common Stock or Preferred Stock, and
securities of any type whatsoever that are, or may become, convertible into said
shares of Common Stock or Preferred Stock. Notwithstanding the foregoing, "New
Securities" does not include (i) the Shares or the Conversion Shares, (ii)
securities offered to the public generally pursuant to a registration statement
under the Securities Act, (iii) securities issued pursuant to the acquisition of
another corporation by the Company by merger, purchase of substantially all of
the assets or shares or other reorganization whereby the Company or its
shareholders own not less than a majority of the voting power of the surviving
or successor corporation, (iv) any shares of the Company's Common Stock or
related options convertible into or exercisable for such Common Stock issued to
employees, officers and directors of, and consultants to, the Company, pursuant
to any arrangement approved by the Board of Directors of the Company including
the members of the Board of Directors appointed by the Series B Investors and
Series C Investors, (v) shares of the Company's Common Stock or related options
convertible into or exercisable for such Common Stock issued to any bank,
equipment lessor or other similar financial institution if and to the extent
that the transaction in which such sale or grant is to be made is unanimously
approved by the Company's Board of Directors, (vi) shares of the capital stock
of the Company issued pursuant to any existing rights or agreements that have
been disclosed to the Investors, including, without limitation, convertible
securities, options and warrants, provided that the Company shall have complied
with the right of first offer established by this Section 2.1 with respect to
the initial sale or grant by the Company of such rights or agreements, (vii)
stock issued in connection with any stock split, stock dividend or
recapitalization by the Company; or (viii) the shares of Common Stock purchased
by AOL pursuant to the Warrant dated December 22, 1999; provided however, that
shares of the Company's Common Stock issued pursuant to (iv) shall not, in the
aggregate, exceed 2,030,836 shares of Common Stock, or such other number of
shares of Common Stock as the Board of Directors shall, in its sole discretion,
from time to time approve as being issuable pursuant to the Company's Stock
Option Plans in accordance with Section 3.12.

                                       15
<PAGE>   19

              (c) Notice of Right. In the event the Company proposes to
undertake an issuance of New Securities, it shall give each Investor written
notice of its intention, describing the type of New Securities and the price and
terms upon which the Company proposes to issue the same. Each Investor shall
have fifteen (15) days from the date of receipt of any such notice to agree to
purchase shares of such New Securities (up to the amount referred to in
subsection 2.1 (a)), for the price and upon the terms specified in the notice,
by giving written notice to the Company and stating therein the quantity of New
Securities to be purchased. If any Investor fails to agree to purchase its full
Pro Rata Portion within such fifteen (15) day period, the Company will give the
Investors that did so agree (the "Electing Investors") notice of the number of
shares which were not subscribed for by the non-electing Investors. Such notice
may be by telephone if followed by written confirmation within two (2) days. The
Electing Investors shall have ten (10) business days from the date of such
notice to agree to purchase their Pro Rata Portion of all of the New Securities
not purchased by such non-electing Purchasers.

              (d) Exercise of Right. If any Investor exercises its right of
first offer hereunder, the closing of the purchase of the New Securities with
respect to which such right has been exercised shall take place within ninety
(90) calendar days after each Investor gives notice of such exercise, which
period of time shall be extended in order to comply with applicable laws and
regulations. Upon exercise of such right of first offer, the Company and such
Investor shall be legally obligated to consummate the purchase contemplated
thereby and shall use their best efforts to secure any approvals required in
connection therewith.

              (e) Lapse and Reinstatement of Right. In the event an Investor
fails to exercise the right of first offer provided in this Section 2.1 within
said fifteen (15) day period, the Company shall have ninety (90) days thereafter
to sell or enter into an agreement (pursuant to which the sale of New Securities
covered thereby shall be closed, if at all, within sixty (60) days from the date
of said agreement) to sell the New Securities not elected to be purchased by
such Investor at the price and upon the terms no more favorable to the
purchasers of such securities than specified in the Company's notice. In the
event the Company has not sold the New Securities or entered into an agreement
to sell the New Securities within said ninety (90) day period (or sold and
issued New Securities in accordance with the foregoing within sixty (60) days
from the date of said agreement), the Company shall not thereafter issue or sell
any New Securities without first offering such securities to each Investor in
the manner provided above.

              (f) Assignment. The right of each Investor to purchase any part of
the New Securities may be assigned in whole or in part to any partner,
subsidiary, affiliate or shareholder of an Investor, or other persons or
organizations who acquire at least one hundred thousand (100,000) shares of
Restricted Securities (as adjusted for stock splits and the like).

       2.2    ELECTION OF DIRECTORS. The Holders shall vote their respective
shares of the Company's capital stock in favor of the nominees to the Company's
Board of Directors who are nominated as follows:

              (i)    for as long as at least 100,000 shares of Series A
Preferred are outstanding, the holders of at least one-half (50%) the Series A
Preferred then outstanding shall be entitled to nominate one (i) representative
to be elected as a member of the Company's Board of Directors;

                                       16
<PAGE>   20

              (ii)   for as long as at least 200,000 shares of Series B
Preferred are outstanding, FBR Technology Venture Partners I, LP shall be
entitled to nominate one (1) representative to be elected as a member of the
Company's Board of Directors and Mayfield Fund, LP shall be entitled to nominate
one (1) representative to be elected as a member of the Company's Board of
Directors;

              (iii)  for as long as B & T holds at least 500,000 shares of
Common Stock, B & T shall have the right to nominate one (1) representative to
be elected as a member of the Company's Board of Directors;

              (iv)   for as long as at least 900,000 shares of Series C are
outstanding (as adjusted for stock splits, combinations, dividends or similar
recapitalizations) shall remain outstanding, Tribune Company shall be entitled
to nominate one (1) representative;

              (v)    for so long as Eric J. Kuhn continues in the employ of the
Company or holds at least 100,000 shares of Common Stock, Eric J. Kuhn shall be
entitled to nominate a member of the Company's Board of Directors;

              (vi)   for so long as Timothy J. Levy continues in the employ or
the Company or holds at least 100,000 shares of Common Stock, Timothy J. Levy
shall be entitled to nominate a member of the Company's Board of Directors; and

              (vii)  any representatives to be elected as a member of the
Company's Board of Directors to replace any representative due to the failure of
the named parties in paragraphs (i) through (vi) above to continue to meet the
conditions of such respective provisions, shall be mutually agreed upon between
the Company and the holders of two-thirds (66 2/3%) of the then outstanding
Preferred Stock, which approval may be withheld or given in the sole and
absolute discretion of the holders of the Preferred Stock.

              (c)    In the case of any vacancy (other than a vacancy caused by
removal) in the office of a director occurring among the directors elected by
holder(s) of stock pursuant to this Section 2.2, the remaining directors so
elected by such holder(s) may by affirmative vote of at least one-half (50%)
thereof (or the remaining director so elected if there be but one and, if there
are no such directors remaining, by the holder(s) who has the right to designate
such director as described in this Section 2.2, if such holder(s) has the
authority to designate a representative to the Board of Directors or, if no such
particular stockholder has such rights by the affirmative vote of the holders of
a majority of the shares of that class or series), elect successor or successors
to hold office for the unexpired term of the director or directors whose place
or places shall be vacant. Any director who shall have been elected by any
particular holder(s) or by any directors so elected as provided in the
immediately preceding sentence hereof may be removed during the aforesaid term
of office, either with or without cause, by, and only by, the affirmative vote
of the holder(s) of stock entitled to elect such director or directors, given
either at a special meeting of such holder(s) duly called for that purposed or
pursuant to a written consent of stockholders, and any vacancy thereby created
may be filled by the holder(s) of stock represented at the meeting or pursuant
to unanimous written consent.

                                       17
<PAGE>   21

       2.3    TERMINATION OF RIGHT OF FIRST OFFER AND ELECTION OF DIRECTORS. The
right of first offer granted under Section 2.1 of this Agreement and the
election of directors provision set forth under Section 2.2 of this Agreement
shall terminate immediately prior to and be of no further force or effect on or
after the date of the closing of the Company's first sale of its Common Stock
pursuant to an firm commitment underwritten public offering (a "Qualifying
Public Offering") pursuant to which all outstanding shares of Preferred Stock
are converted, automatically or otherwise, into shares of Common Stock of the
Company.

                                   SECTION 3
                      AFFIRMATIVE COVENANTS OF THE COMPANY

       The Company hereby covenants and agrees as follows:

       3.1    FINANCIAL INFORMATION. So long as an Investor is a Holder, the
Company will furnish to such Holder, as soon as practicable after the end of
each fiscal year, but in no event more than ninety (90) days after the end of
such fiscal year, an audited consolidated balance sheet of the Company and
audited consolidated statements of income, shareholders' equity and cash flows
for such year, as well as annual budgets. Additionally, the Company will deliver
to such Holder, as soon as practicable after the end of each calendar quarter,
and calendar month, consolidated balance sheets of the Company and consolidated
statements of income and cash flow for such calendar quarter or calendar month
and for the current fiscal year to date.

       3.2    DELIVERY OF INFORMATION. So long as a Series B Investor, Series C
Investor or AOL is a Holder, the Company will furnish to such Holder the same
written information it delivers to its Board of Directors. In addition, the
Company will deliver to a Holder all other information reasonably requested by
such Series B Investor, Series C Investor or AOL. All information hereafter
furnished to such Holder hereunder shall be deemed confidential and shall be
kept in strict confidence by such Holder under appropriate safeguards; provided,
that the foregoing restriction shall not apply to any information which (i) as
shown by written records, was lawfully in the possession of such Holder prior to
any disclosure by the Company, so long as the source of such information was not
bound by a confidentiality agreement with the Company in respect thereof, or
(ii) is generally available to the public other than as a result of disclosure
by such Holder.

       3.3    INSPECTION. The Company shall permit each Investor, at such
Investor's expense, to visit and inspect the Company's properties, to examine
its books of account and records and to discuss the Company's affairs, finances
and accounts with its officers, all at such reasonable times as may be requested
by such Investor; provided, however, that the Company shall not be obligated
pursuant to this Section 3.3 to provide access to any information which it
reasonably considers to be a trade secret or similar confidential information.

                                       18
<PAGE>   22

       3.4    EXPENSES OF THE BOARD OF DIRECTORS. The Company shall pay the
reasonable, preapproved expenses of the members of the Board of Directors,
including airfare and hotel costs, incurred in connection with their service on
the Board of Directors.

       3.5    RESERVED EMPLOYEE SHARES. The shares of Common Stock reserved for
employees, officers, of, and consultants to, the Company (the "Employee
Shares"), are to be issued from time to time solely under the Company's 1998
Stock Plan (the "Stock Plan") as may be determined and approved by the Board of
Directors subject to Section 3.12 hereof. Unless otherwise agreed to by the
Board of Directors and subject to Section 3.12 hereof, Employee Shares subject
to options issued under the Stock Plan or other approved plans will vest, until
the option holder's employment with or services to the Company terminate, over a
four year period on an equal monthly basis. The Company shall retain a right of
first refusal, which right shall be freely assignable and, with respect to all
such Employee Shares subject to such options, the holder of such Employee Shares
shall agree to a market standoff provision consistent with the market standoff
provision contained in Section 1.14.

       3.6    ACQUISITION OF STOCK. All shares of Preferred Stock held or
acquired by the Investors or by affiliated entities or persons shall be
aggregated together for the purpose of determining the availability of any
rights under this Section 3.

       3.7    TITLES AND SALARIES. Titles of Company management shall be agreed
upon by the Board of Directors. All salaries must be reviewed and approved by
the Board of Directors.

       3.8    BOARD OF DIRECTORS MEETINGS. The Board of Directors shall meet on
a monthly basis until such time as the unanimous Board of Directors determine
otherwise. The meetings shall be held at the principal office of the Company or
in any other place the directors may determine. If the Chairman is not present
at a meeting of the Board of Directors, the directors present may appoint one of
their number to act as Chairman for the purpose of the meeting. A meeting of
directors may be held by means of any telephone, electronic or other
communications facilities which permit all persons participating in the meeting
to communicate with each other simultaneously and instantaneously, and a
director participating in a meeting by those facilities is deemed to be present
at that meeting.

       3.9    IRC SECTION 305. So long as any shares of Preferred Stock remain
outstanding, the Company will not, without approval of holders of a majority of
each series of Preferred Stock then outstanding, do any act or thing which would
result in taxation of the holders of shares of the Preferred Stock under Section
305 of the Internal Revenue Code of 1986, as amended (or any comparable
provision of the Internal Revenue Code as hereafter from time to time amended).

       3.10   BOARD OF DIRECTORS.

              (a) In any and all elections of directors of the Company (whether
at a meeting or by written consent in lieu of a meeting), all parties hereto
shall vote or cause to be voted all shares of the Company's capital stock then
owned by him or it, or over which he or it has voting control, and otherwise use
his or its respective best efforts, so as to fix the number of directors as set
forth in Section 2.2 of this Agreement and to elect the nominees nominated in
accordance with Section 2.2 of this Agreement.

                                       19
<PAGE>   23

              (b) The Company shall provide each of the Investors with 30 days'
prior written notice of any intended mailing of a notice to the Investors for a
meeting at which directors are to be elected. The Company agrees to nominate and
recommend for election as directors only the individuals designated pursuant to
Section 2.2 of this Agreement.

       3.11   POSITIVE COVENANTS. Subject to Section 3.15, so long as
Registrable Securities are outstanding, the Company will:

              (a) promptly pay and discharge, or cause to be paid and
discharged, when due and payable, all lawful taxes, assessments, and
governmental charges or levies imposed upon the income, profits, property, or
business of the Company or any subsidiary; provided, however, that any such tax,
assessment, charge, or levy need not be paid if the validity thereof shall
currently be contested in good faith by appropriate proceedings and if the
Company shall have set aside on its books adequate reserves with respect
thereof, and provided further, that the Company will pay all such taxes,
assessments, charges, or levies forthwith upon the commencement of proceedings
to foreclose any lien that may have attached as security therefor;

              (b) keep its properties and those of its subsidiaries in good
repair, working order, and condition, reasonable wear and tear excepted, and
from time to time make all needful and proper repairs, renewals, replacements,
additions, and improvements thereto;

              (c) keep its assets and those of its subsidiaries that are of an
insurable character insured by financially sound and reputable insurers against
loss or damage by fire, extended coverage, and explosion insurance in amounts
customary for companies in similar businesses similarly situated; and the
Company will maintain, with financially sound and reputable insurers, insurance
against other hazards, risks, and liabilities to persons and property to the
extent and in the manner customary for companies in similar businesses similarly
situated;

              (d) keep true records and books of account in which full, true,
and correct entries will be made of all dealings or transactions in relation to
its business and affairs in accordance with generally accepted accounting
principles applied on a consistent basis;

              (e) duly observe and conform to all valid requirements of
governmental authorities relating to the conduct of their businesses or to their
property or assets;

              (f) maintain in full force and effect its corporate existence,
rights, and franchises and all licenses and other rights to use patents,
processes, licenses, trademarks, trade names, or copyrights owned or possessed
by it or any subsidiary and deemed by the Company to be necessary to the conduct
of its business;

              (g) the Company will retain independent public accountants of
recognized national standing who shall certify the Company's financial
statements at the end of each fiscal year. In the event the services of the
independent public accountants so selected, or any firm of independent public
accountants hereafter employed by the Company are terminated, the Company will
promptly thereafter notify the Investors and will request the firm of
independent public accountants whose services are terminated to deliver to the
Investors a letter from such firm setting forth the reasons for the termination
of their services. In the event of such termination, the Company will promptly
thereafter engage another firm of independent public

                                       20
<PAGE>   24

accountants of recognized national standing. In its notice to the Investors the
Company shall state whether the change of accountants was recommended or
approved by the Board of Directors of the Company or any committee thereof;

              (h) cause each person now or hereafter employed by it or any
subsidiary with access to confidential information to enter into a proprietary
information and inventions agreement substantially in form acceptable to the
Company and the Investors;

              (i) and hold monthly meetings of the Board of Directors.

       3.12   NEGATIVE COVENANTS.

              (a) Subject to Section 3.15, so long as any shares of Series B
Preferred or Series C Preferred remain outstanding, the Company will not execute
any Major Actions (as hereinafter defined) without the majority vote of the
Board of Directors, which vote must include the affirmative vote of both members
of the Board of Directors nominated by the Series B Investors and the member of
the Board of Directors nominated by Tribune Company, as the case may be. Major
Actions shall be limited to the following:

                     (i)    the issuance of indebtedness for borrowed money in
excess of One Hundred Thousand Dollars ($100,000);

                     (ii)   the sale, conveyance, or other disposition,
including a merger, consolidation or reorganization, of all or substantially all
of the Company's property or business;

                     (iii)  repurchase, redemption or other acquisition of
outstanding shares of the Company's capital stock (other than redemption from
employees in connection with their termination);

                     (iv)   an acquisition by the Company of capital assets for
a consideration in excess of One Hundred Thousand Dollars ($100,000) or other
material expenditures in excess of Two Hundred Thousand Dollars ($200,000) not
included in the annual operating budget;

                     (v)    changes in the list of Major Actions;

                     (vi)   the approval of an annual budget;

                     (vii)  any increase in the number of shares reserved for
issuance under the Company's stock option plans;

                     (viii) any option granted under the Company's stock option
plan (or shares for which options granted thereunder have been exercised) where
such grant vests at a rate in excess of 25% per annum from the date of issuance;

                     (ix)   the entering into a new line of business not
specified or contemplated in the Business Plan dated July, 1999; and

                                       21
<PAGE>   25

                     (x)    any amendment to the Company's Third Amended and
Restated Certificate of Incorporation or Bylaws.

              (b) Subject to Section 3.15, the Company shall not enter into any
transaction with any director, officer or affiliated party unless such
transaction is approved by a majority of the disinterested members of the Board
of Directors. A "disinterested" director shall mean any director who does not
have any direct or indirect financial or other interest in a transaction except
for an interest arising as a result of his or her shareholdings in the Company.

       3.13   STOCK RESTRICTION AGREEMENTS. The Company will cause each person
now or hereafter employed by the Company or any subsidiary of the Company to
enter into stock restriction and market stand-off agreements substantially in
form acceptable to the Investors.

       3.14   OBSERVER RIGHTS. For so long as Carlyle Venture Partners, L.P. or
its affiliates shall be a stockholder, such entities shall be entitled to the
rights specified in the Management Letter dated August 26, 1999, attached to the
Series C Stock Purchase Agreement as Exhibit H.

       3.15   TERMINATION OF SECTION 3 RIGHTS. The rights granted under this
Section 3 shall terminate immediately prior to and be of no further force or
effect on or after the date of the closing of the first Qualifying Public
Offering.

                                   SECTION 4
                                  MISCELLANEOUS

       4.1    GOVERNING LAW. This Agreement shall be governed in all respects by
the laws of the State of Delaware without reference to conflict of laws of
principles.

       4.2    THIRD PARTIES. Nothing in this Agreement, express or implied, is
intended to confer upon any party, other than the parties hereto, and their
respective successors and assigns, any rights, remedies, obligations or
liabilities under or by reason of this Agreement, except as expressly provided
herein.

       4.3    SURVIVAL. The representations, warranties, covenants and
agreements made herein shall survive any investigation made by any Investor and
the closing of the transactions contemplated hereby. All statements as to
factual matters contained in any certificate or exhibit delivered by or on
behalf of the Company pursuant hereto shall be deemed to be the representations
and warranties of the Company hereunder as of such date of such certificate or
exhibit.

       4.4    SUCCESSORS AND ASSIGNS. Except as otherwise provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors and administrators of the parties hereto.

       4.5    ENTIRE AGREEMENT; AMENDMENT. This Agreement and the other
documents delivered pursuant hereto constitute the full and entire understanding
and agreement among the parties with regard to the subjects hereof and thereof
and supercede any prior discussions, agreements or understandings of the parties
hereto relating to the matters contained herein, including without limitation,
the Equity Investment and Operating Agreement, dated as of July

                                       22
<PAGE>   26

10, 1988 (as amended by the First Amendment, dated as of October 9, 1998) by and
between the Company and Baker & Taylor, Inc (in particular, Article 5 thereof),
the Original Agreement, the Second Agreement and the Third Agreement. Neither
this Agreement nor any term hereof may be amended, waived, discharged or
terminated other than by a written instrument signed by the party against whom
enforcement of any such amendment, waiver, discharge or termination is sought;
provided, however, that (i) a majority of the outstanding Registrable Securities
(whether or not converted) held by the Series A Investors and B&T, (ii) a
majority of the outstanding Registrable Securities (whether or not converted)
held by the Series B Investors and (iii) a majority of the outstanding
Registrable Securities (whether or not converted) held by the Series C
Investors, each group voting separately as a class, may waive or amend, on
behalf of the Investors and other holders of Shares, any provisions hereof
benefiting the Investors so long as the effect thereof will be that the
Investors and other holders of Shares will be treated equally; provided,
further, that (i) any action that would affect the rights of AOL, Mr. Kuhn or
Mr. Levy under this Agreement shall only be effective with their written consent
and (ii) the rights of any series of Preferred Stock, any individual, or any
entity to nominate a director under Section 2.2 shall not be amended without the
consent of such individual or a majority of the holders of such series.

       4.6    EFFECT OF AMENDMENT OR WAIVER. Each Investor and its successors
and assigns acknowledge that by the operation of Section 4.5 hereof the Company
and the holders of a majority of the outstanding Registrable Securities held by
the parties specified will have the right and power to diminish or eliminate any
or all rights or increase any or all obligations pursuant to this Agreement.

       4.7    RIGHTS OF HOLDERS. Each holder of Registrable Securities shall
have the absolute right to exercise or refrain from exercising any right or
rights that such holder may have by reason of this Agreement, including, without
limitation, the right to consent to the waiver or modification of any obligation
under this Agreement, and such holder shall not incur any liability to any other
holder of any securities of the Company as a result of exercising or refraining
from exercising any such right or rights.

       4.8    NOTICES, ETC. All notices and other communications required or
permitted hereunder shall be in writing and shall be deemed effectively given
the earlier of (a) when received, (b) upon personal delivery to the party to be
notified, (c) one business day after delivery via facsimile, (d) one day after
being deposited with an overnight courier service or (e) three days after
deposit with the United States Post Office, by registered or certified mail,
postage prepaid, return receipt requested, and addressed (i) if to an Investor,
at such Investor's address set forth on Exhibit A, Exhibit B, or Exhibit C or at
such address as such Investor shall have furnished to the Company in writing, or
(ii) if to any other holder of any Shares, at such address as such holder shall
have furnished the Company in writing, or, until any such holder so furnishes an
address to the Company, then to and at the address of the last holder of such
Shares who has so furnished an address to the Company, or (iii) if to the
Company, at its address set forth on the first page of this Agreement addressed
to the attention of the Corporate Secretary, or at such other address as the
Company shall have furnished to the Investors. If notice is provided by mail,
notice shall be deemed to be given upon proper deposit with the United States
mail.

                                       23
<PAGE>   27

       4.9    DELAYS OR OMISSIONS. No delay or omission to exercise any right,
power or remedy accruing to any holder of any Shares upon any breach or default
of the Company under this Agreement shall impair any such right, power or remedy
of such holder, nor shall it be construed to be a waiver of any such breach or
default, or an acquiescence thereof or of any similar breach or default
thereafter occurring; nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent or approval of any kind or character on
the part of any holder of any breach or default under this Agreement, or any
waiver on the part of any holder of any provisions or conditions of this
Agreement, must be in writing and shall be effective only to the extent
specifically set forth in such writing or as provided in this Agreement. All
remedies, either under this Agreement or by law or otherwise afforded to any
holder, shall be cumulative and not alternative.

       4.10   COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which may be executed by less than all parties hereto,
each of which shall be enforceable against the parties actually executing such
counterparts, and all of which together shall constitute one instrument.

       4.11   SEVERABILITY OF THIS AGREEMENT. If any provision of this Agreement
becomes or is declared by a court of competent jurisdiction to be illegal,
unenforceable or void, this Agreement will continue in full force and effect
without said provision and the parties agree to replace such provision with a
valid and enforceable provision that will achieve, to the extent possible, the
economic, business and other purposes of such provisions; provided that no such
severability will be effective against a party if it materially and adversely
changes the economic benefits of this Agreement to such party.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       24
<PAGE>   28

       IN WITNESS WHEREOF, the parties have executed this Amended and Restated
Investors' Rights Agreement as of the date first above written.

                                          VARSITYBOOKS.COM INC.

                                          By: /s/ ERIC J. KUHN
                                             -----------------------------------
                                             Eric J. Kuhn
                                             Chief Executive Officer

                                       25
<PAGE>   29

PALMER PRIVATE EQUITY INVESTMENTS, LLC
c/o Stone Pine Companies
1625 Farnam Street, #700
Omaha, NE   68102

By: /s/ THOMPSON H. ROGERS
   --------------------------------
   Name: Thompson H. Rogers

STONE PINE VARSITYBOOKS.COM, LLC
1625 Farnam Street, #700
Omaha, NE  68102

By: /s/ THOMPSON H. ROGERS
   --------------------------------
   Name: Thompson H. Rogers
   Title: Chairman/Manager

<PAGE>   30

John D. McKey, Jr.
2081 East Ocean Blvd.
2nd Floor
Stuart, FL 34996

By:
   -------------------------------
   Name: John D. McKey, Jr.

MESIROW Financial, F.B.O.
Mary H. Jochim
350 North Clark Street
Chicago, IL   60610

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

FBR TECHNOLOGY VENTURE
PARTNERS I, L.P.
Potomac Tower
1001 19th Street North
Arlington, VA  22209
By FBR Venture Capital Managers, Inc.

By: /s/ GENE RIECHERS
   -------------------------------
   Name: Gene Riechers
   Title: Managing Director

MAYFIELD IX
A Delaware Limited Partnership
c/o Mayfield Fund, L.P.
2800 Sand Hill Road
Menlo Park, CA  94025

By: Mayfield IX Management, L.L.C.
A Delaware Limited Liability Company,
Its General Partner

By: /s/ GEORGE A. PAVLOV
   ------------------------------
   Name: George A. Pavlov
   Title: Authorized Signatory

<PAGE>   31

MAYFIELD ASSOCIATES FUND IV
c/o Mayfield Fund, L.P.
2800 Sand Hill Road
Menlo Park, CA  94025

A Delaware Limited Partnership

By: Mayfield IX Management, L.L.C.
A Delaware Limited Liability Company,
Its General Partner

By: /s/ GEORGE A. PAVLOV
   ------------------------------
   Name: George A. Pavlov
   Title: Authorized Signatory

Richard Gaiti
559 Provinceline Road
Hopewell, NJ 08525

By:
   ------------------------------
   Name: Richard Gaiti

Steven B. Kalafer
8 Coach and Four Lane
Annandale, NJ 08801

By:
   ------------------------------
   Name: Steven B. Kalafer

<PAGE>   32

CLIFTON MANAGEMENT TRADING, INC.
633 Franklin Avenue, Suite 112
Nutley, NY  07110

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

KUHN IRREVOCABLE TRUST DATED
7/30/98
Sandor Engel, Esq. Trustee
825 N. Twelfth Street
Allentown, PA  18102

By:
   ------------------------------
   Name: Sandor Engel, Esq.
   Title: Trustee

Edward and Blossom Leibowitz, JTWRS
1039 Guisando De Avila
Tampa, FL  33613

By:
   ------------------------------
   Name: Edward Leibowitz

By:
   ------------------------------
   Name: Blossom Leibowitz

Michael J. Kuhn
2804 Deercreek Circle
Austin, TX  78703

By:
   ------------------------------
   Name: Michael J. Kuhn

Eric J. Kuhn
2501 Porter Street, N.W., Apt. 1026
Washington, D.C. 20008

By: /s/ ERIC J. KUHN
   ------------------------------
   Name: Eric J. Kuhn

<PAGE>   33

Jason and Susan Kuhn, JTWRS
1039 Guisando De Avila
Tampa, FL 33613

By:
   ------------------------------
   Name: Jason Kuhn

By:
   ------------------------------
   Name: Susan Kuhn

Karen Kuhn
2334 Riverbend Road
Allentown, PA 18103

By: /s/ KAREN KUHN
   ------------------------------
   Name: Karen Kuhn

Timothy J. Levy
2501 Porter Street, N.W., Apt. 416
Washington, D.C. 20008

By: /s/ TIMOTHY J. LEVY
   ------------------------------
   Name: Timothy J. Levy

Allen Gribben
8157 Lyon Valley Road
New Tripoli, PA  18066

By:
   ------------------------------
   Name: Allen Gribben

Moshe Lehrfield
1310 NE 173rd Street
Miami Beach, FL  33162

By:
   ------------------------------
   Name: Moshe Lehrfield

<PAGE>   34

Karen R. Gundersheimer &
Werner L. Gundersheimer
2903 32nd Street, N.W.
Washington, D.C.  20008

By:
   ------------------------------
   Name: Karen R. Gundersheimer

By:
   ------------------------------
   Name: Werner L. Gundersheimer

Jeffrey C. Levy
120 The Prado
Atlanta, GA 30309

By:
   ------------------------------
   Name: Jeffrey C. Levy

Linda R. Levy
19 Greenwood Avenue
Lawrenceville, NJ 08648

By:
   ------------------------------
   Name: Linda R. Levy

Paul G. Levy
19 Greenwood Avenue
Lawrenceville, NJ 08648

By:
   ------------------------------
   Name: Paul G. Levy

Deborah R. Levy
444 Central Park West, #9B
New York, NY  10025

By:
   ------------------------------
   Name: Deborah R. Levy

<PAGE>   35

Robert Haft
2346 Massachusetts Avenue
Washington, D.C.  20008

By:
   ------------------------------
   Name: Robert Haft

Andrew Green
1325 18th Street, N.W. # 1010
Washington, D.C.

By:
   ------------------------------
   Name: Andrew Green

Jeremy Fineberg
833 Central Avenue
Lawrence, NY

By:
   ------------------------------
   Name: Jeremy Fineberg

BARRY FAMILY TRUST U/D/T
DATED JANUARY 13, 1998
1950 TASSO
Palo Alto, CA  94304
Lawrence, NY

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

<PAGE>   36

WS INVESTMENT COMPANY 98B
650 Page Mill Road
Palo Alto, CA  94304

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

SDJ CAPITAL, INC.
c/o Jay Seinfeld
2025 Broadway, Apt. 27B
New York, NY  10023

By:
   ------------------------------
   Name: Jay Seinfeld

THE TRIBUNE COMPANY

435 N. Michigan Avenue
Chicago, Illinois  60611

By: /s/ ANDREW OLESZCZUK
    --------------------------------
Name: Andrew Oleszczuk
      ------------------------------
Title: President/Tribune Ventures
       -----------------------------

<PAGE>   37

CARLYLE VENTURES PARTNERS, L.P.
By:  Its General Partner, TCG Ventures, Ltd.

1001 Pennsylvania Avenue, N.W.
Suite 220 South
Washington, DC 20004

By: /s/ J. MITCHELL REESE
   ------------------------------
   J. Mitchell Reese
   Attorney-In-Fact

C/S VENTURE INVESTORS, L.P.
By:  Its General Partner, TCG Ventures, Ltd.

1001 Pennsylvania Avenue, N.W.
Suite 220 South
Washington, DC  20004

By: /s/ J. MITCHELL REESE
   ------------------------------
   J. Mitchell Reese
   Attorney-In-Fact

CARLYLE U.S. VENTURE PARTNERS, L.P.
By:  Its General Partner, TCG Ventures, L.L.C.

1001 Pennsylvania Avenue, N.W.
Suite 220 South
Washington, DC  20004

By: /s/ J. MITCHELL REESE
   ------------------------------
   J. Mitchell Reese
   Attorney-In-Fact

CARLYLE VENTURE COINVESTMENT L.L.C.
By:  Its Manager TCG Ventures, L.L.C.

1001 Pennsylvania Avenue, N.W.
Suite 220 South
Washington, DC  20004

By: /s/ J. MITCHELL REESE
   ------------------------------
   J. Mitchell Reese
   Attorney-In-Fact

<PAGE>   38

VARSITY BOOK TRUST
c/o Mayfield Fund
2800 Sand Hill Road
Menlo Park, CA  94025

By: /s/ GEORGE A. PAVLOV
    --------------------------------
Name: George A. Pavlov
      ------------------------------
Authorized Signatory

Allen Morgan
c/o Mayfield Fund
2800 Sand Hill Road
Menlo Park, CA  94025

------------------------------------
Allen Morgan

SOUTHEASTERN TECHNOLOGY FUND, L.P.
By:  Southeastern Capital Company, L.L.C.,
      Its General Partner

Attn: Emerson Fann
4035 Chris Drive, Suite C
Huntsville, Alabama  35802

By:
    --------------------------------
       Name: Chris H. Horgen
       Title: Managing Member

AFFILIATED E-COMMERCE INVESTMENTS, LLC

1625 Farnan Street #700
Omaha, NE  68102

By: /s/ THOMPSON H. ROGERS
    --------------------------------
       Name: Thompson H. Rogers
       Title: Chairman/Manager

<PAGE>   39

FBR TECHNOLOGY VENTURE PARTNERS, I.L.P.
Attn: Potomac Tower
1001 19th Street North
Arlington, Virginia  22209

By: /s/ GENE RIECHERS
    --------------------------------
       Name: Gene Riechers
       Title: Managing Director

ROLLINGWOOD CAPITAL PARTNERS L.L.C.
1750 Tysons Boulevard
Suite 400
McLean VA  22102

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

GARAGE.COM INVESTMENTS I, L.P.
420 Florence Avenue
Suite 300
Palo Alto, CA  94301

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

ROGER A. KUHN AND KAREN KUHN JTWROS
2334 Riverbend Road
Allentown, PA  18103

By:
    --------------------------------
       Name:  Roger A. Kuhn

By:
    --------------------------------
       Name: Karen Kuhn

Craig Richards
2736 Flintgrove Road
Charlotte, NC  28226

<PAGE>   40

By:
    --------------------------------
       Name:  Craig Richards

Richard Hozik
707 Crown Meadow Drive
Great Falls, VA  22066

By:
    --------------------------------
       Name:  Richard Hozik

Philip B. Dolan
9521 Purcell Drive
Potomac, MD  20854

By: /s/ PHILIP B. DOLAN
    --------------------------------
       Name:  Philip B. Dolan

B&T Enterprises, L.L.C.

Attn: Philip Dolan
The Carlyle Group
1001 Pennsylvania Avenue, N.W.
Suite 220 South
Washington, DC 20004

By:    CPLCF I, L.P,
       Its Managing Member

By:    The Carlyle Group, L.P.,
       Its General Partner

By:    TWC Virginia, Inc.,
       Its General Partner

By: /s/ DANIEL A. D'ANIELLO
   --------------------------------
       Name: Daniel A. D'Aniello
       Title: Executive Vice President

EAGLE ROCK VENTURES, L.P.

<PAGE>   41

c/o hipO.com
2 Concourse Parkway, Suite 600
Atlanta, GA  30328

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

Onuoha O. Odim
c/o hipO.com
2 Concourse Parkway, Suite 600
Atlanta, GA  30328

By:
    --------------------------------
       Name: Onuoha O. Odim

Joe Argilages
c/o hipO.com
2 Concourse Parkway, Suite 600
Atlanta, GA  30328

By:
    --------------------------------
       Name: Joe Argilages

ESHER LIMITED
P.O. Box 274
Hemisphere House
36 Hilgrove Street
St Helier, Jersey JE4 8TR
Channel Islands
United Kingdom

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

Roger T. Staubach
Staubach Companies
6750 LBJ Freeway, Suite 1100
Dallas, Texas  75240

By:
    --------------------------------
       Name: Roger T. Staubach

<PAGE>   42

America Online, Inc.
22000 AOL Way
Dulles, VA 20166-9323

By: /s/ ERIC L. KELLER
    --------------------------------
       Name: Eric L. Keller
       Title: Vice President

Cornelius McCarthy
c/o Rick Putnam
Baird Holm Law Firm
1500 Woodmen Tower
Omaha, Neb  68102

By: /s/ DAVID McLEESE
    --------------------------------
       Name: David McLeese, as agent

Katharine McLeese
c/o Rick Putnam
Baird Holm Law Firm
1500 Woodmen Tower
Omaha, Neb  68102

By: /s/ DAVID McLEESE
    --------------------------------
       Name: David McLeese, as agent

Peter Rawlings
c/o Rick Putnam
Baird Holm Law Firm
1500 Woodmen Tower
Omaha, Neb  68102

By: /s/ DAVID McLEESE
    --------------------------------
       Name: David McLeese, as agent

Richard Hansen
c/o Rick Putnam
Baird Holm Law Firm
1500 Woodmen Tower
Omaha, Neb  68102

By: /s/ DAVID McLEESE
    --------------------------------
       Name: David McLeese, as agent

<PAGE>   43

CBF Investments LLC
c/o Rick Putnam
Baird Holm Law Firm
1500 Woodmen Tower
Omaha, Neb  68102

By: /s/ DAVID McLEESE
    --------------------------------
       Name: David McLeese, as agent

Roy Dinsdale
c/o Rick Putnam
Baird Holm Law Firm
1500 Woodmen Tower
Omaha, Neb  68102

By: /s/ DAVID McLEESE
    --------------------------------
       Name: David McLeese, as agent

Todd Feltz
c/o Rick Putnam
Baird Holm Law Firm
1500 Woodmen Tower
Omaha, Neb  68102

By: /s/ DAVID McLEESE
    --------------------------------
       Name: David McLeese, as agent

Jerry Slusky
c/o Rick Putnam
Baird Holm Law Firm
1500 Woodmen Tower
Omaha, Neb  68102

By: /s/ DAVID McLEESE
    --------------------------------
       Name: David McLeese, as agent

Vantage Communications, Inc.
c/o Rick Putnam
Baird Holm Law Firm
1500 Woodmen Tower

<PAGE>   44

Omaha, Neb  68102

By: /s/ DAVID McLEESE
    --------------------------------
       Name: David McLeese, as agent

Chris Dinsdale
c/o Rick Putnam
Baird Holm Law Firm
1500 Woodmen Tower
Omaha, Neb  68102

By: /s/ DAVID McLEESE
    --------------------------------
       Name: David McLeese, as agent

MTAC, Inc.
c/o Rick Putnam
Baird Holm Law Firm
1500 Woodmen Tower
Omaha, Neb  68102

By: /s/ DAVID McLEESE
    --------------------------------
       Name: David McLeese, as agent

Susan Gallagher
c/o Rick Putnam
Baird Holm Law Firm
1500 Woodmen Tower
Omaha, Neb  68102

By: /s/ DAVID McLEESE
    --------------------------------
       Name: David McLeese, as agent<PAGE>   1
                                                                   EXHIBIT 10.12

                                                                  EXECUTION COPY

                                  CONFIDENTIAL
                         INTERACTIVE MARKETING AGREEMENT

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

                                  INTRODUCTION

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

                                      TERMS

1.      PROMOTION, DISTRIBUTION AND MARKETING.

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

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

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

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

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

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

2.      MP AREAS.

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

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

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

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

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

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

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

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

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

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

3       ICQ EXCLUSIVITY OBLIGATIONS.

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

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

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

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

        3.5    The "Section 3.5 Entities" are:         .

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

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

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

4       PAYMENTS.

        4.1    GUARANTEED PAYMENTS. MP will pay ICQ a non-refundable guaranteed
               payment of          (the "Guaranteed Payment Amount") as follows:

                   (i)                       shall be paid on
                                  ;

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

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

4.2  LATE PAYMENTS; WIRED PAYMENTS. All amounts owed hereunder not
               paid when due and payable will bear interest from five days after
               the date such amounts are due and payable at the prime rate in
               effect at such time as published in the Wall Street Journal. All
               payments required hereunder will be paid in immediately
               available, non-refundable U.S. funds wired to the "America
               Online" account, Account Number         .

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

4.4  REPORTS.

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

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

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

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

5       TERM; RENEWAL; TERMINATION.

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

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

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

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

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

6       MANAGEMENT COMMITTEE/ARBITRATION.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                       [the next page is a signature page]

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

ICQ, INC.                                     VARSITYBOOKS.COM INC.

By:    /s/                                    By:      /s/
    ----------------------------------            -----------------------------
Name                                          Name:
Title:                                        Title:

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                                    EXHIBIT A

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                                    EXHIBIT B
                                   DEFINITIONS

The following definitions will apply to this Agreement:

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

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

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

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

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

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

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

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

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

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

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ICQ NETWORK.

ICQ SERVICE.

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

ICQ.COM.

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

IMPRESSIONS COMMITMENTS.  As defined in Section 1.2 hereof.

INTEGRATED PLACEMENTS.  As defined in Section 1.3 hereof.

INTERACTIVE SERVICE. An entity offering one or more of the following: (i) online
or Internet connectivity services (e.g., an Internet service provider); (ii) an
interactive site or service featuring a broad selection of aggregated third
party interactive content (or navigation thereto) (e.g., an online service or
search and directory service) and/or marketing a broad selection of products
and/or services across numerous interactive commerce categories (e.g., an online
mall or other leading online commerce site); (iii) a persistent desktop client;
or (iv) communications software capable of serving as the principal means
through which a user creates, sends and receives electronic mail or real time or
"instant" online messages (whether by telephone, computer or other means),
including without limitation greeting cards.

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

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

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

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

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

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

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

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                                    EXHIBIT C
                               MP CROSS-PROMOTION

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

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

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

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

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

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

C.      On-Campus Marketing Cross-Promotion

        DELIVERABLES

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

        -  1,000,000 co-branded impressions
        -  At least 300,000 Promotional e-mails to VB.C customer base
        -  Permanent fixed position on VB.C
        -  At least 4,000 Promotional e-mails to VB.C affiliates

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        -  At least 80,000 Inserts in VB.C boxes(1)
        -  Use of VB.C Campus Rep Network

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

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

           EXPENSES

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

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

           TERMINATION

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

D. Communications Promos. In 50% of any online or offline promotions by MP or
      over which MP exercises at least partial editorial control, when promoting
      solely the communications aspects of MP (each, a "Communications Promo"),
      MP will include specific references or mentions (verbally where possible)
      of the ICQ Service (e.g., a reference to the availability of the ICQ
      Service through the MP Areas or vice versa) during the period in which MP
      is ICQ's exclusive college marketing channel . For purposes of this
      paragraph, an "offline promotion" shall include without limitation, MP's
      television, radio, print and "out of home" (e.g., buses and billboards)
      advertisements and in editorial content in any publications, programs,
      features or other forms of media over which MP exercises at least partial
      editorial control.

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

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                                    EXHIBIT D

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                                    EXHIBIT E
                               OPERATING STANDARDS

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

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

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

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

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

6.  Technical Performance.

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

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

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

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

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

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

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

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

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                                    EXHIBIT F

                   STANDARD ONLINE COMMERCE TERMS & CONDITIONS

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

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

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

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

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

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

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

8. Management of ICQ Network. ICQ will manage, review, delete, edit, create,
   update and otherwise manage all Content available on or through the ICQ
   Network, in a timely and professional manner and in accordance with the terms
   of this Agreement. ICQ will use commercially reasonable efforts to see that
   the ICQ Network remains current, accurate and well-organized at all times.
   ICQ agrees that the ICQ Service and ICQ.com and any Content available on
   them: (i) will not infringe on or violate any third-party copyright,
   trademark, U.S. patent which exists on the effective date of this agreement,
   or any other third party right, including without limitation, any music
   performance or other music-related rights; (ii) will not violate ICQ's
   then-applicable Terms of Service or any other standard, written ICQ policy or
   license; and (iii) will not violate any applicable law or regulation of the
   United State or any other country or jurisdiction, including those relating
   to contests, sweepstakes or similar promotions. ICQ also warrants that a
   reasonable basis exists for all ICQ Service performance or comparison claims
   expressly made by ICQ and appearing through the ICQ Network. Except as
   provided herein, ICQ shall not in any manner state or imply that MP
   recommends or endorses ICQ or the ICQ Network (e.g., no statements that ICQ
   is an "official" or "preferred" provider of products or services for MP)
   without the prior authorization of MP. MP will have no obligations with
   respect to the ICQ Services available on or through the ICQ Network other
   than the MP Areas, including, but not limited to, any duty to review or
   monitor any such ICQ Services.

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

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

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

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

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

14. Message Boards; Chat Rooms and Comparable Vehicles. Any Content submitted by
   MP or its agents within message boards, chat rooms or any comparable vehicles
   will be subject to the license grant relating to submissions to "public
   areas" set forth in the ICQ Terms of Service. MP acknowledges that it has no
   rights or interest in ICQ Member submissions to message boards within the ICQ
   Network. MP will refrain from editing, deleting or altering, without ICQ's
   prior approval (which shall not be unreasonably withheld or delayed), any
   opinion expressed or submission made by an ICQ Member within MP Programming
   except in cases where MP has a good faith belief that the Content in question
   violates an applicable law, regulation, third party right or the applicable
   ICQ Terms of Service.

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                                    EXHIBIT G
                        STANDARD LEGAL TERMS & CONDITIONS

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

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

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

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

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

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

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

8. Confidentiality. Each Party acknowledges that Confidential Information may be
disclosed to the other Party during the course of this Agreement. Each Party
agrees that it will take reasonable steps, at least substantially equivalent to
the steps it takes to protect its own proprietary information, during the term
of this Agreement,

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

9.    Limitation of Liability; Disclaimer; Indemnification.

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

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

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

9.4   Claims. If a Party entitled to indemnification hereunder (the "Indemnified
      Party") becomes aware of any matter it believes is indemnifiable hereunder
      involving any claim, action, suit, investigation, arbitration or other
      proceeding against the Indemnified Party by any third party (each an
      "Action"), the Indemnified Party will give the other Party (the
      "Indemnifying Party") prompt written notice of such Action. Such notice
      will (i) provide the basis on which indemnification is being asserted and
      (ii) be accompanied by copies of all relevant pleadings, demands, and
      other papers related to the Action and in the possession of the
      Indemnified Party. The Indemnifying Party will have a period of ten (10)
      business days after delivery of such notice to respond. If the
      Indemnifying Party elects to defend the Action or does not respond within
      the requisite ten (10) business day period, the Indemnifying Party will be
      obligated to defend the Action, at its own expense, using counsel of its
      choosing. The Indemnified Party will cooperate, at the expense of the
      Indemnifying Party, with the Indemnifying Party and its counsel in the
      defense and the Indemnified Party will have the right to participate
      fully, at its own expense, in the defense of such Action. If the
      Indemnifying Party responds within the required ten (10) business day
      period and elects not to defend such Action, the Indemnified Party will be
      free, without prejudice to any of the Indemnified Party's rights
      hereunder, to compromise or defend (and control the defense of) such
      Action. In such case, the Indemnifying Party will cooperate, at its own
      expense, with the Indemnified Party and its counsel in the defense against
      such Action and the Indemnifying Party will have the right to participate
      fully, at its own expense, in the defense of such Action. Any compromise
      or settlement of an Action will require the prior written consent

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      of both Parties hereunder, such consent not to be unreasonably
      withheld or delayed.

9.5   Acknowledgment. ICQ and MP each acknowledges that the provisions of this
      Agreement were negotiated to reflect an informed, voluntary allocation
      between them of all risks (both known and unknown) associated with the
      transactions contemplated hereunder. The limitations and disclaimers
      related to warranties and liability contained in this Agreement are
      intended to limit the circumstances and extent of liability. The
      provisions of this Section 9 will be enforceable independent of and
      severable from any other enforceable or unenforceable provision of this
      Agreement.

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

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

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

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

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

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

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

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with the other relevant notice information, including the recipient for notice
and, as applicable, such recipient's fax number or ICQ e-mail address, to be as
reasonably identified to ICQ by MP.

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

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

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

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

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

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

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

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

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

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

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

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

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

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                                    EXHIBIT H

                                       28

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