Document:

<PAGE>   1
                                                                  Exhibit 10.7.1

                                          September 26, 2000

Mr. John Katzman
Chairman
The Princeton Review, Inc.
2315 Broadway
New York, NY  10024

Dear John,

We are  pleased to advise you that based upon your annual  financial  statements
for the fiscal year 1999,  The Chase  Manhattan  Bank (the  "Bank") has approved
your request for a line of credit in the  aggregate  amount of  $1,500,000.  Our
officers may, at their discretion, make short term loans to The Princeton Review
Operations,  LLC on such terms as are mutually  agreed upon between us from time
to time.

Borrowings  under this line are  intended to be used to meet your  normal  short
term  working  capital  needs and will bear  interest at such a rate as shall be
mutually agreed upon by each of us from time to time.

All loans under this line of credit are subject to the  requirement  that for 30
consecutive  days  prior  to the  expiration  hereof  there  shall  be no  loans
outstanding.

This  line  will  carry  an  annual   administrative   fee  of  $15,000  payable
semi-annually.  As this line is not a  commitment,  credit  availability  is, in
addition,  subject to your execution and delivery of such  documentation  as the
Bank deems  appropriate  and the receipt and  continuing  satisfaction  with the
current financial  information  (including without limitation audited annual and
unaudited quarterly financial statements, promptly prepared and received), which
information will be furnished to the Bank as it may from time to time reasonably
request,  and continuing  satisfaction with your financial  condition,  business
affairs and prospects. This line expires on June 30, 2001.

We are pleased to be of service and trust you will call upon us to assist in any
of your banking requirements.

                                           Very truly yours,
                                           /s/ Walter P. Drury

WPD/bm

cc:   Steve Melvin
      Chief Financial Officer<PAGE>   1
                                                                   Exhibit 10.36

                                    AGREEMENT

AGREEMENT (this "Agreement"), made effective September 1, 1998, between The
Educational and Professional Publishing Group, a unit of The McGraw-Hill
Companies, Inc., ("McGraw-Hill"), a New York corporation, with an office located
at 936 Eastwind Drive, Westerville, OH 43081 ("EPG"), and the Princeton Review
Publishing L.L.C., a Delaware limited liability company with an office located
at 2315 Broadway, 2nd Floor, New York, NY 10024 ("TPR").

                                   WITNESSETH:

WHEREAS, EPG and TPR are each publishers of proprietary educational materials,
and

WHEREAS, EPG and TPR intend to establish a long-term relationship, in which TPR
provides consulting services and creative materials which help relate EPG's
textbooks to state and national exams through editing of those textbooks and
creation of workbooks, seminars, and possibly an online product under a separate
agreement.

NOW THEREFORE, EPG and TPR agree as follows:

I.       DEFINITIONS

Any capitalized term (or grammatical variant) that appears in this Agreement is
defined as follows:

         A.       "Deliverable" means any item that a Project Agreement
                  specifies that TPR is required to deliver.

         B.       "Display," and "Work Made for Hire" have the same definitions
                  that those terms have in the U. S. Copyright Act, 17 U. S.
                  C.Section 101, as amended.

         C.       "Divisions" means the following divisions of EPG:
                  Glencoe/McGraw-Hill, SRA/McGraw-Hill, CTB/McGraw-Hill, and the
                  McGraw-Hill School Division.

         D.       "Educational Market" means educational institutions of all
                  types, public and private, at all grade levels, including
                  pre-school, elementary school, middle, junior and senior high
                  school, and all customer types located therein, including
                  students "taught at home," and all K-12 marketing channels of
                  distribution within which EPG directs its marketing and
                  selling efforts. The Educational Market excludes the retail
                  consumer market, the educational trade book market, the 2- and
                  4-year college market, and the professional book market
                  channels of distribution related to the foregoing markets.
<PAGE>   2
         E.       "McGraw-Hill Materials" means all educational materials
                  including text, computer programs, pictorial or graphic works,
                  know-how, pedagogy, methods, and other works, which
                  McGraw-Hill provides to TPR for inclusion in a Textbook or
                  Workbook.

         F.       "Textbook" means textbooks, both student and teacher editions,
                  that any EPG Division publishes for the Educational Market and
                  which TPR supports, e.g. the Textbook contains TPR Textbook
                  Contributions or any part of the Question Pool, has received
                  TPR Editorial Review, or contains any TPR Mark or a reference
                  to the association with TPR or it is sold using the
                  association with TPR as part of the advertising or promotional
                  program; or EPG distributes a related Workbook; or TPR
                  provides a related Training Seminar or online product.

         G.       "TPR Materials" means all educational text, computer programs,
                  pictorial or graphic works, questions, know-how, pedagogy,
                  methods, and other creative works, which result from TPR's
                  services under this Agreement or the Project Agreements.

         H.       Each of the following terms is defined in the Section set
                  forth next to it:

<TABLE>
<S>                                                           <C>
                           Acceptance                         IV.E
                           Approval Period                    IV.E
                           Brand Fee                          V.C
                           Change Order                       IV. C
                           Confidential Information           XVII.B
                           Derivative Questions               II.B.4
                           Design Document                    III.A
                           Educational Publisher              XVI.A.
                           EPG Marks                          IX.A
                           EPG Programs                       V.D.1
                           Net Sales                          V.D.6
                           North America                      VIII.C
                           Online Product                     III.B.6
                           Project                            IV.A
                           Project Agreement                  IV.A
                           Project Manager                    IV.B
                           Question Pool                      II.B.4
                           Specification                      IV.A
                           Third Party Materials              VIII.A
                           TPR Editorial Review               II.B.l
                           TPR Marks                          IX.A
                           TPR Textbook Contributions         II.B.2
                           Trademark Materials                XI.B
                           Trademarks                         IX.A
                           Training Seminars                  II.B.5
                           Workbooks                          II.B.3
</TABLE>

                                       2

<PAGE>   3
II.      THE PARTIES' PERFORMANCE OBLIGATIONS

         A.       EPG's responsibilities include the following:

                  1.       prepare Textbooks in accordance with EPG's business
                           judgment, and, unless otherwise agreed, publish them
                           within eighteen (18) months of Acceptance of TPR's
                           Deliverable agreed under a Project Agreement for that
                           particular Textbook, in such style and manner, under
                           any imprint of any EPG Division and at a price EPG
                           deems in the best interest of such Textbook; and keep
                           the Textbooks in print for as long as EPG deems
                           appropriate. EPG's good faith determination of the
                           schedule for, and timing of, publication will be
                           binding on TPR. If a Textbook is being prepared in
                           anticipation of an adoption, and the adopting agency
                           postpones or otherwise delays the adoption, the
                           eighteen- (18-) month period referenced above will be
                           extended for a corresponding period;

                  2.       print, publish and sell Workbooks created by TPR,
                           either alone or bundled with each Workbook's
                           corresponding Textbook;

                  3.       contribute McGraw-Hill Materials for TPR's use in the
                           creation of TPR Textbook Contributions and Workbooks;

                  4.       contribute to the Question Pool * questions from its
                           CTB Division in the same subject matters and in
                           approximately the same relative percentages for each
                           subject matter as the questions that TPR is creating
                           under Paragraph II.B.4;

                  5.       arrange and schedule Training Seminars through EPG's
                           Regional Sales Offices;

                  6.       sell and market the Online Product, if the parties
                           decide to develop it.

         B.       TPR's responsibilities include the following:

                  1.       review, within the limits of its available resources
                           as TPR will decide in its sole discretion, the first
                           page proofs, in whole or in part, of pupil and
                           teacher editions of EPG-prepared Textbooks and offer
                           oral or written comments and suggestions for ensuring
                           that sample test questions and other testing
                           information contained in them is accurate and aligned
                           with state or national standards ("TPR Editorial
                           Review"). TPR will inform EPG if it declines to
                           perform TPR Editorial Review in whole or in part, but
                           if it performs, it will report to EPG as part of the
                           Project Agreement the

                                       3

<PAGE>   4
                           number of pages it will review. TPR Editorial Review
                           is intended to enhance, not replace, EPG's normal
                           editorial and fact-checking procedures and will be
                           completed in accordance with a schedule to be agreed
                           upon in writing by the parties;

                  2.       prepare one-color pages and other contributions for
                           Textbooks, which may include TPR Materials and
                           McGraw-Hill Materials ("TPR Textbook Contributions");

                  3.       prepare Workbooks in print format, each of which will
                           refer to a particular Textbook, or review and revise
                           existing EPG workbooks ("Workbooks");

                  4.       create a pool of test questions that can be used by
                           students in grades 2-12 to practice for the major
                           state and national exams (the "Question Pool") and,
                           subject to EPG's determination in Section V.B.4,
                           support the Question Pool so as to keep it
                           technically up-to-date and able to accommodate minor
                           changes to the exams. The initial Question Pool will
                           include * questions that EPG contributes from its CTB
                           Division, * questions from TPR's then-current and
                           future inventory, and * that TPR will create (at
                           least * for each of math and language arts and at
                           least * for each of science and history) on the
                           schedule set out in the attached Exhibit A. If TPR
                           creates a question by electronically altering a
                           question from one test so that it conforms to the
                           appropriate format of a new test, TPR will count the
                           new question as * of a question for the purpose of
                           meeting its quota of questions; if TPR creates a
                           question by manually altering a question from one
                           test so that it conforms to the appropriate format of
                           a new test, TPR will count the new question as * of a
                           question for the purpose of meeting its quota of
                           questions. All such altered questions shall be known
                           as "Derivative Questions." Each question in the
                           Question Pool will be tagged so as to identify
                           whether it was created by TPR, contributed by TPR,
                           contributed by CTB Division, or, if a Derivative
                           Question, from what question it was derived. The
                           major states are Texas, California, Florida,
                           Virginia, and North Carolina, and the major exams are
                           the SAT, ACT, CTBS, Terra Nova, SAT9, and ITBS. If
                           the parties agree, the Question Pool may be expanded
                           to include other states or tests;

                  5.       prepare and conduct pre-service, in-service, and
                           other seminars for teachers and administrators about
                           state or national tests, at times and locations as
                           the parties agree ("Training Seminars"); EPG shall
                           have the right, pursuant to a Project Agreement, to
                           review the format, content, and materials that TPR
                           uses for the Training Seminars, and TPR will conduct
                           Training Seminars only with the request and prior
                           approval of the appropriate EPG Regional Sales
                           Office;

                                       4

<PAGE>   5
                  6.       sell and market the Online Product, if the parties
                           decide to develop it.

III.     DEVELOPMENT OF THE ONLINE PRODUCT

         A.       Design Document. EPG will pay * toward the creation of a
                  design document which contains specifications, features,
                  schedules, and cost estimates for an online product for
                  students, their parents, and teachers that complements the
                  Textbooks ("Online Product") to be delivered through the
                  Internet ("Design Document").

         B.       Delivery and Approval. Not later than three days after
                  execution of the Agreement, TPR will deliver the Design
                  Document, which will include TPR's proposed price for the
                  Online Product and a yearly base online fee. After TPR's
                  delivery of the Design Document, EPG will have up to
                  forty-five (45) days in which to decide whether to proceed
                  with the Online Product at TPR's price. If EPG elects to go
                  forward, the parties will enter into a separate agreement.

         C.       Option. If EPG elects not to proceed with the Online Product,
                  TPR will be free to negotiate with a third party for
                  publication of the Online Product based on the Design
                  Document, except that if TPR negotiates such a deal within the
                  six (6) months following EPG's rejection of TPR's offer for a
                  price that is less than the price that EPG rejected, TPR must
                  again offer publication to EPG at that price, and EPG will
                  have ten (10) days in which to accept it.

         D.       If EPG elects not to go forward with the Online Product, TPR
                  will own all rights including copyright in the Design
                  Document. If TPR publishes the Online Product with another
                  entity, TPR will repay EPG * from the first proceeds of that
                  publishing venture; if TPR publishes the Online Product
                  itself, TPR will repay EPG * which will be offset against the
                  royalties due under Section V.D.1 in three equal amounts over
                  the three years following TPR's publication.

IV.      PROJECT AGREEMENTS AND PROJECT MANAGERS

         A.       Project Agreements. TPR Editorial Review, TPR Textbook
                  Contribution, Workbook, Training Seminar, Question Pool, and,
                  if developed, Online Product (collectively or singly,
                  "Project") must be the subject of a Project Agreement that
                  conforms to the Sample Project Agreement attached to this
                  Agreement as Exhibit B and incorporated in it ("Project
                  Agreement"). No Project Agreement is effective unless signed
                  by both parties. "Specifications" refers to all the
                  information contained in a Project Agreement or a Change
                  Order. No Specification in a Project Agreement that conflicts
                  with a provision of this Agreement is valid, unless the
                  Project Agreement is signed by an officer of each of the
                  parties.

         B.       Project Manager. Each party must designate a "Project Manager"
                  for each Project Agreement. Each of the Divisions is entitled
                  to negotiate and enter into Project

                                       5

<PAGE>   6
                  Agreements with TPR. EPG's Project Manager will initiate
                  Project Agreements. Project Managers will be responsible for
                  managing each party's performance under a Project Agreement.
                  Project Managers will coordinate and facilitate communication
                  between the parties, direct activity for their respective
                  parties, send and receive notices, schedule meetings, review
                  and accept Deliverables and the performance of services, and
                  authorize payments, among other management duties.

         C.       Change Orders. Material changes in the Specifications of a
                  Project Agreement or for any material aspect or detail related
                  to the performance of a Project, including changes in
                  Deliverables, schedule dates, payment amounts, or other
                  matters will be made by use of a Change Order that conforms to
                  the Sample Change Order attached to this Agreement as Exhibit
                  C ("Change Order"). A Change Order will become part of the
                  Project Agreement that it modifies, and will become effective
                  only when it is signed by each party's Project Manager for the
                  Project Agreement that it modifies, but no Specification in a
                  Change Order that conflicts with a provision of this Agreement
                  is valid, unless the Change Order is signed by an officer of
                  each of the parties.

         D.       Progress Reports. Project Managers will notify each other
                  promptly of any factor, occurrence, or event that may affect
                  the party's ability to meet the Specifications of a Project
                  Agreement or that is likely to occasion any material delay or
                  accelerate completion of the Project. As reasonably requested,
                  TPR's Project Manager will provide EPG from time to time with
                  oral or written reports on the progress of services performed
                  and required under each Project Agreement. Unless EPG gives
                  notice of dissatisfaction within five (5) business days of
                  TPR's report, TPR will be entitled to assume that its progress
                  is satisfactory to EPG, and EPG will not later claim lack of
                  Acceptance based on circumstances of which it was notified but
                  did not object.

         E.       Acceptance. TPR will deliver any Deliverable for any Project
                  in accordance with the applicable Project Agreement, including
                  timetables. The Deliverables for any Project including
                  electronic files and/or camera-ready copy shall be prepared in
                  accordance with professional standards in the trade.
                  "Acceptance" means that EPG has determined in its reasonable
                  judgment that a Deliverable or TPR's services meet the agreed
                  Specifications in the applicable Project Agreement and this
                  Agreement, or EPG's Project Manager has allowed the Approval
                  Period to pass without rejecting TPR's Deliverables or
                  services. The "Approval Period" will be a reasonable period to
                  keep the Project on schedule, generally not to exceed 14 days
                  after TPR's delivery of a Deliverable.

         F.       Non-Acceptance. If EPG determines that a Deliverable or
                  service is not Acceptable, EPG will so notify TPR within the
                  Approval Period specifying to the

                                       6

<PAGE>   7
                  extent practical, how and to what extent, the Deliverable or
                  service is deficient and how it should be modified in order to
                  make it Acceptable. TPR will make changes in the Deliverable
                  or provide additional services at its own cost to make the
                  Deliverable or services Acceptable and re-deliver the revised
                  Deliverable to EPG. EPG will indicate its Acceptance of the
                  revised Deliverable according to the procedure established for
                  Acceptance of any Deliverable.

         G.       Deliverables and Services that are Not Acceptable. If TPR
                  fails to modify or correct Deliverables or services or if,
                  after modification, they are still not Acceptable to EPG, EPG
                  will have the right, in its sole discretion:

                  1.       to permit TPR to finish, correct or improve any
                           unsatisfactory Deliverable of a Project by a
                           reasonable date specified by EPG, or

                  2.       either as an alternative or in addition to TPR's
                           revision under (1) above, to make arrangements with
                           third persons or entities, as EPG may select, to
                           correct, revise and complete the Deliverable so as to
                           make it Acceptable to EPG. In that event, EPG may
                           charge the reasonable cost of such arrangements to
                           TPR from funds due to TPR under this Agreement giving
                           TPR credit for any savings EPG may have realized, but
                           the costs of those changes charged to TPR will not
                           exceed the monies due TPR for the applicable Project
                           Agreement.

V.       PAYMENT FOR PROJECTS AND ROYALTIES

         A.       Payment Authorization. No royalty or other compensation will
                  be due or payable to TPR in relation to any Project or the
                  exercise of any rights, except as is expressly provided in
                  this Agreement as duly amended or in a Project Agreement or
                  Change Order.

         B.       Project Fees.

                  1.       For TPR's services in connection with the TPR
                           Textbook Contributions and Workbooks, EPG shall pay
                           TPR * per one-color page. The payment may vary
                           upwards upon mutual agreement reflected in a Project
                           Agreement depending on factors such as increased
                           complexity, additional colors, and, in future years,
                           inflation based on the Consumer Price Index. The
                           payment may also vary downwards upon mutual agreement
                           if the TPR Workbook or the TPR Textbook Contributions
                           require only minor revisions due to small changes in
                           a state test or in the related Textbook. Unless
                           otherwise provided in the Project Agreement, EPG
                           shall pay TPR half of the fee due under each Project
                           Agreement upon signature, and the remainder within 45
                           days of TPR's final delivery of the Deliverable under
                           any Project Agreement unless the Deliverable is
                           rejected within the Approval Period.

                                       7

<PAGE>   8
                           EPG's final payment will not by itself be deemed
                           Acceptance of the Deliverable if the Deliverable has
                           been rejected during the Approval Period, and EPG
                           shall have a right to set off against amounts due to
                           TPR under this Agreement any final payment made on a
                           Deliverable that is not Accepted within the Approval
                           Period. TPR acknowledges receipt from EPG of a
                           pre-payment of * toward the services under this
                           provision.

                  2.       For TPR's services in connection with TPR Editorial
                           Review where there has been review only and no TPR
                           Textbook Contribution, EPG shall pay TPR * for each
                           edited page that EPG submits to TPR for review.

                  3.       For conducting Training Seminars, EPG shall pay TPR
                           monthly * per full-day seminar and * per half-day
                           seminar, plus reimbursement of costs for travel,
                           lodging, and meals, upon submission of reasonable
                           proof of expenditures over $50 in accordance with
                           EPG's reimbursement policies and practices, and the
                           TPR regional office will invoice EPG's local regional
                           sales office directly for such services and costs.
                           EPG is responsible for invoicing and collections from
                           customers.

                  4.       Question Pool. Under a Project Agreement under this
                           Agreement for TPR's preparation of * questions as
                           provided in Paragraph II.B.4, EPG will pay a total of
                           * according to the following schedule: for contract
                           year * for contract year * and for contract year *
                           The payment for the 1998-99 contract year is due upon
                           execution of this Agreement, and subsequent payments
                           are due on the anniversary date of this Agreement. In
                           addition, EPG will pay TPR * annually at the
                           beginning of each contract year in order to support
                           the Question Pool, except that after the first year
                           and on six (6) months' notice, EPG may discontinue
                           the * support fee if it reasonably concludes that
                           continued support of the Question Pool is unnecessary
                           to its continued usefulness. The first annual fee
                           will be due upon execution of the Agreement. If new
                           questions are required because of changed
                           circumstances such as new tests, they will be
                           prepared under separate Project Agreements that
                           include an agreed fee.

         C.       Brand Fee. Within 45 days of December 1, 1998, and within 45
                  days of December 1 of each subsequent year of the contract,
                  EPG will pay TPR for use of the TPR Trademarks on materials in
                  the EPG Programs as follows: *

         D.       Royalties.

                  1.       During the term of the Agreement, EPG shall pay TPR
                           the following royalties based upon net sales of all
                           components of all EPG Programs except those listed on
                           Exhibit D, which may be amended by mutual consent,
                           and upon net sales of any Textbook or Workbook with a

                                       8

<PAGE>   9
                           copyright date earlier than EPG Programs, to which
                           TPR has contributed or which it supports in any way:

                           a.       For all language arts programs,  *

                           b.       For all non-language arts programs,  *

                           An "EPG Program" means each program for the math
                           subject area beginning with those bearing a 1999
                           copyright date and each program for the social
                           studies, science, reading/literature, and language
                           arts subject areas beginning with those bearing a
                           2000 copyright date, which are published by the
                           Glencoe/McGraw-Hill and McGraw-Hill School Divisions
                           and the Open Court Reading and Open Court Math
                           programs of the SRA/McGraw-Hill Division.
                           Notwithstanding the foregoing, EPG Programs do not
                           include the 1999 Glencoe/McGraw-Hill "Math
                           Applications and Connections" math program outside of
                           Texas unless TPR later contributes or supports it in
                           some way.

                  2.       As soon as EPG establishes its divisional sales
                           projections, it will provide TPR with the sales goals
                           (in dollars) for the EPG Program that make up those
                           projections, which shall constitute Confidential
                           Information under Section XVII.

                  3.       If an EPG Program exceeds its sales goal, EPG will
                           pay an additional royalty as follows:

                           a.       for those net sales that are more than * and
                                    less than or equal to * the above goal, an
                                    increase of * ,

                           b.       for those net sales that are more than * and
                                    less than or equal to * the above goal, an
                                    increase of * and

                           c.       for those net sales that are more than * the
                                    above goal, an increase of *

                  4.       If an EPG Program fails to meet its sales goal, the
                           royalty rate otherwise payable to TPR on such EPG
                           Program shall be reduced as follows:

                           a.       if such net sales are less than * of that
                                    EPG Program's goal but not less than * of
                                    goal, a reduction of * ,

                           b.       if such net sales are less than * of that
                                    EPG Program's goal but not less than * of
                                    goal, a reduction of * ,

                                       9

<PAGE>   10
                           c.       if such net sales are less than * of that
                                    EPG Program's goal, a reduction of *

                  5.       After the termination or expiration of this
                           Agreement, EPG will continue to pay TPR royalties at
                           the rates stated in Sections V.D.1 and D.6 for any
                           EPG Program to which TPR contributed in any way
                           during the term of the Agreement.

                  6.       In any contract year, the royalty amounts due TPR
                           will not exceed *

                  7.       Notwithstanding the foregoing royalty obligations, on
                           all copies of any elements of the EPG Programs sold
                           at a * forth in Section V.D.1 above.

                  8.       No royalties are payable for the following: copies of
                           a Textbook or any component of an EPG Program,
                           distributed or disposed of at or below cost,
                           including copies provided in connection with the sale
                           of other copies; copies furnished for review,
                           publicity, promotion, sample or similar purposes, or
                           for charitable or other public purposes; or for
                           copies furnished gratis to TPR or to others at TPR's
                           request. For purposes of this provision, copies sold
                           or distributed or disposed of at a discount of * or
                           more from the lowest state adoption price of the
                           Textbook, shall be deemed sold below cost.

                  9.       As used in this Section, V.D, "net sales" means, with
                           respect to EPG's sales, the net cash amount actually
                           received by EPG from each copy sold of any component
                           or material in the EPG Programs or, after the
                           termination of the agreement, any Textbook, not
                           credited for return, after discounts, any depository
                           charges and exchange allowances.

                  10.      Beginning after publication of the first Textbook,
                           EPG will render royalty statements in April and
                           October for semi-annual accounting periods ending
                           December 31, and June 30 of each year in accordance
                           with its regular practices. Each statement will be
                           accompanied by payment of monies shown to be due
                           after recoupment of amounts payable as recoverable
                           advances, if any.

                  11.      EPG's failure to pay the Brand Fee, royalties, or
                           Project Fees when due, unless excused by TPR, is a
                           material breach of the Agreement, entitling TPR, in
                           addition to all other remedies, to terminate the
                           Agreement.

VI.      AUDITING

         Each party shall keep and maintain accurate books and records with
         respect to financial

                                       10

<PAGE>   11
         transactions relating to this Agreement. Where financial figures have
         been agreed upon as an element of this Agreement or a Project
         Agreement, each party and its agents shall have audit rights and access
         to the other's books and records limited to those financial figures,
         upon reasonable notice, at reasonable intervals, to determine the
         accuracy of such financial figures and the royalties due under this
         Agreement or any Project Agreement. Such examination shall be at the
         examining party's expense unless it discovers accounting errors of more
         than four percent (4%) to its disadvantage for any single accounting
         period, in which case, the examined party will pay the reasonable costs
         of the audit.

VII.     COPYRIGHT AND LICENSES

         A.       Ownership. EPG and TPR agree as follows concerning ownership
                  and the respective rights and licenses of each party:

                  1.       McGraw-Hill Materials. As between McGraw-Hill and
                           TPR, McGraw-Hill owns or controls all rights,
                           including copyright in McGraw-Hill Materials, unless
                           otherwise stated in writing by EPG. EPG may provide
                           TPR with McGraw-Hill Materials, at EPG's sole cost,
                           for use in or in connection with any Project,
                           together with the right to adapt the McGraw-Hill
                           Materials for the purposes of this Agreement as
                           stated in a relevant Project Agreement.

                  2.       TPR Materials. As between TPR and EPG, TPR owns or
                           controls all rights, including copyright, in TPR
                           Materials.

                  3.       TPR Editorial Review. TPR Textbook Contributions and
                           Workbooks. Except for TPR Material that is contained
                           in the Question Pool, Online Product, if developed,
                           and Training Seminars and subject to Section XIII.B,
                           all TPR Materials created in performing the TPR
                           Editorial Review, and contained in the TPR Textbook
                           Contributions and the Workbooks have been specially
                           commissioned by EPG as Works Made For Hire, and EPG
                           shall be considered the author and the owner of the
                           copyright in them for all time everywhere in the
                           world. If it is determined that the TPR Materials
                           that EPG has commissioned as Works Made For Hire are
                           not Works Made For Hire, then as of the date of this
                           agreement and subject to Section XIII.B, TPR hereby
                           assigns them to EPG outright and forever throughout
                           the world.

                  4.       Question Pool. TPR and EPG jointly own all right,
                           title and interest in the TPR Question Pool,
                           including copyright, except that (a) the TPR
                           questions contributed from TPR's inventory and
                           Derivative Questions based on them shall remain the
                           property of TPR, and (b) any questions supplied by
                           CTB and Derivative Questions based on them shall
                           remain the property of CTB.

                  5.       TPR Training Seminars. TPR owns all right, title and
                           interest, including

                                       11

<PAGE>   12
                           copyright, in the Training Seminars.

                  6.       EPG is not authorized to revise any Textbook or any
                           component of an EPG Program using any TPR Materials
                           or TPR Marks in which TPR owns rights without
                           entering into a new agreement with TPR. Nothing shall
                           prevent EPG from revising any Textbook or component
                           of an EPG Program without use of TPR Materials or TPR
                           Marks.

         B.       Copyright Notices. EPG and TPR will publish respectively EPG
                  Programs and Textbooks (EPG) and Training Seminars and, if
                  developed, the Online Product (TPR) with copyright notices in
                  conformity with United States copyright law and the Universal
                  Copyright Convention, including notice of the other's
                  copyright in any TPR Materials or McGraw-Hill Materials. After
                  publication, each party may, but is not obligated to, register
                  copyright in its respective works in its own name (or, for
                  EPG, the name of one of the Divisions). Each party is
                  authorized to execute all documents necessary to register
                  copyright or to extend the copyright in any manner provided by
                  law anywhere in the world, but is not obligated to do so.

         C.       Further Documents. Each party agrees to execute any document
                  the other party deems necessary to evidence, perfect, record,
                  or otherwise confirm the rights transferred or licensed under
                  this Agreement.

         D.       EPG Use of TPR Ideas, Concepts. Any other provision of this
                  Agreement notwithstanding, in connection with its performance
                  under this Agreement, EPG and TPR may each use any ideas,
                  concepts, approaches, suggestions and other similar material
                  suggested or communicated by the other without additional
                  credit or additional compensation of any kind.

         E.       Other Publishing Ventures. Without limitation of any of the
                  foregoing grants and licenses of this Section VII and so long
                  as EPG itself receives no revenues, EPG may, without any
                  additional compensation to TPR, itself publish or license
                  others:

                  1.       to publish any component of an EPG Program, including
                           any TPR Materials in whole or in part, in forms and
                           special formats for the handicapped, such as Braille
                           and recordings for the reading impaired, throughout
                           North America in the English or Spanish language, if
                           applicable rights have been cleared and special
                           editions of the Textbook, for use in special programs
                           for the learning disadvantaged;

                  2.       to use selected portions of an EPG Program, including
                           TPR Materials for publicity or promotional purposes
                           for the EPG Programs in print format and on radio and
                           television broadcasts; and

                                       12

<PAGE>   13
                  3.       to publish in any form, excerpts, summaries, and
                           serializations of any part of an EPG Program,
                           including Textbook and TPR Textbook Contributions in
                           audiovisual, computer, or other versions of the
                           Textbooks, only for use in connection with or to
                           assist in use of a version of the Textbooks or in
                           advertising and promotion of a version of the
                           Textbooks, provided that TPR has reviewed them and
                           TPR will not unreasonably refuse a request to do so.

                  4.       Display on Closed Circuit Cable Systems. EPG may
                           license others, free of charge, to Display and
                           transmit any part of an EPG Program, in whole or in
                           part, including any Textbook or Textbook
                           Contribution, by means of closed circuit cable
                           systems intended primarily for educational purposes.

VIII.    LICENSED THIRD-PARTY MATERIALS

         A.       TPR will obtain written, non-exclusive licenses to include in
                  Projects any third-party material included in the TPR
                  Materials that is still in copyright as well as any other
                  material for which permission is necessary in connection with
                  TPR's warranties in Section XIV of this Agreement ("Third
                  Party Materials"). Third Party Materials include text,
                  computer programs, pictorial or graphic works, musical
                  compositions, sound recordings, audiovisual works and other
                  copyrightable material licensed from a third party. If TPR is
                  unable to obtain licenses for the rights set forth in Section
                  VIII.C. that are satisfactory to EPG, mutually agreeable
                  material will be substituted.

         B.       EPG will obtain written licenses to include in Projects any
                  third-party material in copyright that EPG directs TPR to
                  include in Projects.

         C.       Scope of Third-Party Licenses. To the extent possible, TPR
                  will obtain rights to Third Party Materials in the English
                  language for print media and, if appropriate, online
                  publication in the Educational Market (1) in the United States
                  of America, its territories and possessions, (2) in those
                  jurisdictions outside the United States, which EPG will
                  identify for TPR, that service the U.S. military (Dodds) and
                  other U.S. agency-related personnel or at which American
                  textbooks are used on a regular basis, such as "American" or
                  "International" schools established principally to educate
                  American or English speaking nationals, and (3) in the
                  Dominion of Canada (all the foregoing, "North America"). If
                  the parties agree in specific Project Agreements to designate
                  the Spanish Language or any other language, electronic or
                  other media publication rights, or other rights, including
                  worldwide rights, then to the extent possible, TPR will obtain
                  such rights in Third Party Materials.

         D.       Documentation of Licenses. TPR agrees to deliver to EPG copies
                  of all licenses

                                       13

<PAGE>   14
                 for Third Party Materials and, if not provided in those
                  documents, the source of the Third Party Materials, the
                  grantor's name and address, and, if for a computer program,
                  the release and version numbers. Licenses for Third Party
                  Materials are to be in a form EPG provides or, if not
                  provided, in whatever form TPR chooses. TPR will provide this
                  information and documentation as part of the on-going
                  developmental process but not later than the final delivery of
                  Deliverables for any Project Agreement.

         E.       Costs of Licenses. EPG will pay the costs of the licenses for
                  Third Party Materials either directly to the third-party owner
                  or by reimbursing TPR in those cases where TPR has paid the
                  third-party owner.

IX.      TRADEMARK LICENSES

         A.       Marks. "Trademark" means the trademarks, service marks, and
                  trade names listed in the attached Exhibit E, as amended from
                  time to time, whether or not registered (collectively, the
                  "Trademarks"). Trademarks owned by TPR are identified as "TPR
                  Marks." Trademarks owned by McGraw-Hill are identified as "EPG
                  Marks."

         B.       Ownership of Textbook and Workbook Titles. EPG may obtain
                  trademark or service mark protection for the name that it
                  chooses to identify any EPG Program, Textbook, Workbook, or
                  other component of it. EPG shall own all rights in such
                  Trademarks. TPR agrees to cooperate to the extent reasonably
                  requested by EPG in furnishing information and executing
                  documents which may be required in connection with
                  registration of any such EPG Marks or to confirm EPG's
                  ownership or rights to use any such EPG Marks.

         C.       Ownership of Training Seminar and Online Product Titles. TPR
                  may obtain trademark or service mark protection for the name
                  that it chooses to identify any Training Seminars and the
                  Online Product. TPR shall own all rights in such Trademarks.
                  EPG agrees to cooperate to the extent reasonably requested by
                  TPR in furnishing information and executing documents which
                  may be required in connection with registration of any such
                  TPR Marks or to confirm TPR's ownership of or rights to use
                  any such TPR Marks.

         D.       EPG Use of TPR Marks. Subject to the terms and conditions of
                  this Agreement, TPR hereby grants to EPG a non-exclusive,
                  nontransferable license to use the TPR Marks solely in North
                  America (1) on and in connection with any Textbook that has
                  undergone TPR Editorial Review or contains TPR Textbook
                  Contributions and on Workbooks, (2) with advertising and
                  promotional materials for the Projects, and (3) to publicize
                  EPG's relationship with TPR under this Agreement. EPG may not
                  use or reproduce the TPR Marks in any manner whatsoever other
                  than as expressly permitted by this Agreement.

                                       14

<PAGE>   15
         E.       TPR Use of EPG Marks. Subject to the terms and conditions of
                  this Agreement, EPG hereby grants TPR a non-exclusive,
                  nontransferable license to use the EPG Marks solely in North
                  America (1) on and in connection with the Training Seminars
                  and the Online Product, if developed, (2) to publicize the
                  fact of TPR's relationship with EPG under this Agreement, and
                  (3) to publicize TPR's contribution to and role in preparing
                  the Projects. TPR may not use or reproduce the EPG Marks in
                  any manner whatsoever other than as expressly permitted by
                  this Agreement.

         F.       Ownership of Marks. Each party agrees and acknowledges that
                  the other owns and retains all right, title and interest in
                  and to its respective Trademarks. Except as expressly granted
                  in this Agreement, no party shall have any rights in the
                  other's Trademarks. The licenses each party has granted the
                  other are personal to the other party, and neither shall
                  assign, transfer or sub-license its rights in the other's
                  Trademarks in any manner without the prior consent of the
                  party owning the Trademarks, and any transfer in violation of
                  this restriction will not be valid. Neither party will use or
                  take any action with respect to the other party's Trademarks
                  except in a manner that does not interfere, derogate or
                  diminish the party's rights in its Trademarks, either during
                  the term of this Agreement or afterwards. Each party agrees
                  not to adopt, use or register any corporate name, trade name,
                  trademark, service mark or certification mark, or other
                  designation similar to, or containing in whole or in part, the
                  Trademarks belonging to the other. Any and all goodwill
                  arising from use of the EPG Marks and TPR's Marks shall inure
                  solely to the party owning said Trademarks respectively. Upon
                  termination of this Agreement, each party shall cease use of
                  the other's Trademarks.

X.       TRADEMARK IDENTIFICATION; CREDIT

         A.       Trademark Notices on Textbooks. EPG shall cause to be
                  imprinted irremovably and legibly marked on each copy of
                  Trademark Materials, appropriate trademark notices with
                  respect to the TPR Marks (and any component of them) as TPR
                  specifies in each case, including the initials "TM" or the
                  letter "R" encircled, or "*" (asterisk), and such legend(s) as
                  TPR may require, including a legend indicating that the TPR
                  Marks are owned by TPR, and are being used by EPG under
                  license from TPR. The size, location and other details of
                  placement of the TPR Marks on the Trademark Materials, shall
                  be determined by EPG in consultation with TPR's Project
                  Manager.

         B.       EPG will credit TPR for its contributions to the Projects.
                  Attribution credit will generally be as follows, but must be
                  approved by TPR:

                  1.       TPR's Trademark will appear on the title page of a
                           Textbook (both student and teacher edition);

                                       15

<PAGE>   16
                  2.       TPR will be listed as an author or contributor (as
                           applicable) on those pages where like authors of the
                           Textbook are listed;

                  3.       TPR will be listed as a content reviewer on the
                           reviewer page of the Textbook, if TPR performs TPR
                           Editorial Review.

XI.      TRADEMARK QUALITY, INSPECTION AND APPROVAL

         A.       Quality of Textbooks. EPG agrees to maintain the quality of
                  the Textbooks and Workbooks on which the TPR Marks are used at
                  least equal to the quality of textbooks and other materials
                  currently published by EPG, which employ EPG's own trade name
                  and TPR Marks. The Textbooks will comply with applicable
                  National Association of State Textbook Administrators
                  standards. TPR will likewise maintain the current level of
                  quality of the materials on which it uses EPG Marks.

         B.       Samples and Review of Marks. At each party's request, the
                  other party shall supply the requesting party with suitable
                  specimens of the Projects and advertising and promotional
                  materials (singly or collectively, "Trademark Materials"),
                  which demonstrate its use of the other's Trademarks in the
                  manner specified in the Agreement. Each party shall cooperate
                  fully with the other party to facilitate periodic review of
                  its use of the other's Trademarks and its full compliance with
                  the quality standards described in this Agreement.

                                       16

<PAGE>   17
         C.       Approval of Trademark Use. Each party will abide by the
                  other's reasonable requirements with respect to Trademark
                  usage. Each party reserves the right to approve the other's
                  use of its Trademarks in promotional materials and in any
                  press/public releases of information. Each party reserves the
                  right to approve use of its Trademarks before the other
                  party's use. Accordingly, each party agrees to submit to the
                  other for approval, before use, distribution or disclosure all
                  Trademark Materials. Each party shall act promptly in granting
                  or denying approval. Once a usage of the marks has been
                  approved, the same usage need not be resubmitted for approval
                  and may be used again in the like manner unless approval is
                  withdrawn by the owner. Any disapproval shall specifically
                  state the reason(s) for which approval is being denied. Any
                  approval or denial of approval shall be made within five (5)
                  business days of submission for review. If either party fails
                  to respond to a request for review, the submission shall be
                  deemed approved and may be used by the submitting party
                  without liability to the other. Approval for any such presumed
                  usage may subsequently be withdrawn by the owner of the marks,
                  and the other party shall take all reasonable actions to
                  curtail and cease such disapproved usage but may use any
                  existing materials, and any materials which are required to be
                  produced immediately to meet immediate adoption delivery
                  deadlines. If problems occur with the foregoing approval
                  process, either party may request a reasonable change in the
                  process to alleviate the problem.

         D.       No Assumption of Liability. Review and approval by either
                  party of the use of the other's Trademarks shall be limited to
                  trademark usage, but reasonable and responsible comment may
                  also be volunteered as to content and context, and each party
                  will consider the other's comments. Neither party assumes any
                  liability for the content of the other's advertising,
                  promotional statements or other materials, even if it has
                  reviewed and approved usage of its Trademarks in such
                  materials or communications.

         E.       For purposes of trademark application, registration,
                  recordation, and registration in the U. S. or elsewhere in the
                  world, each party agrees, at the other's reasonable request,
                  to provide necessary information and samples of Trademark
                  Materials, and to execute and return promptly to the other any
                  necessary document, including documents which evidence a
                  party's ownership, assignment or license of rights with
                  respect to the Trademarks.

XII.     FAILURE TO PUBLISH; REVERSION OF RIGHTS

         A.       TPR Request for Publication. If EPG does not publish a
                  Textbook within the period provided in Section II.A.1, TPR may
                  at any time thereafter deliver to EPG a request under Section
                  XVIII.H to publish the Textbook within twelve (12) months
                  after EPG's receipt of TPR's request. If EPG fails to comply
                  with TPR's request within such period, (1) this Agreement and
                  the respective Project

                                       17

<PAGE>   18
                  Agreement for the Textbook will terminate without further
                  notice at the end of such period, and (2) all of TPR rights in
                  the TPR Materials in the specific unpublished Textbook will
                  revert to TPR without further obligation or liability on the
                  part of either party to the other, except for any questions,
                  which will become part of the Question Pool. The termination
                  and reversion of rights provided in this Section XII.A shall
                  be TPR's sole remedy if EPG fails for any reason to Publish a
                  Textbook in which TPR Materials were intended to appear.

         B.       Reversion of Rights. Five years after the copyright date of
                  any Textbook, all of TPR's rights in the TPR Materials for
                  that Textbook and any related Project shall revert to TPR,
                  except for any questions, which will become part of the
                  Question Pool. Notwithstanding that reversion, EPG shall have
                  the right, subject to the royalty payment provisions of this
                  Agreement, to continue selling Textbooks and related Projects
                  as part of the EPG Programs developed during the term of this
                  Agreement, and any licenses previously granted will continue
                  in effect to the end of their terms, and EPG will be entitled
                  to its share of amounts received under any such licenses. EPG
                  agrees to execute such documents as TPR reasonably requests to
                  confirm any reversion of rights under this section.

         C.       Rights After Reversion of Rights. In the event of reversion of
                  rights under Section XIII.B, EPG shall be entitled to prepare
                  and publish new or different textbooks using the same or
                  similar concepts, approaches and organization as were used in
                  the Textbooks, but shall not publish anything that infringes
                  TPR's rights in TPR Materials.

XIII     TERM AND TERMINATION

         A.       Term. Except for the payment of royalties due after
                  termination and any provision that survives termination under
                  Section XVIII.E, the Term of the Agreement in which the
                  parties may commence new Project Agreements is four (4) years,
                  and then the Agreement will renew automatically for one-year
                  terms unless either party gives one (1) year's prior notice of
                  termination.

         B.       EPG's Termination of the Agreement. EPG may terminate this
                  Agreement under the following circumstances:

                  1.       TPR enters into any voluntary or involuntary
                           declaration of bankruptcy or there is a general
                           assignment for the benefit of TPR's creditors
                           occurring before TPR's delivery to EPG of the final
                           Deliverables due under any completely executed
                           Project Agreement, or

                                       18

<PAGE>   19
                  2.       TPR materially breaches this Agreement and fails to
                           cure the breach within the time period specified in
                           Section XIII.F, or

                  3.       upon notice to TPR, if TPR's failure to perform
                           Project Agreements is substantial, material, and
                           repetitive, and TPR has received notice of such
                           failure(s) and has been accorded a commercially
                           reasonable opportunity to cure such failures, but has
                           not done so, with the result that the intent of this
                           Agreement is frustrated.

         C.       EPG's Termination of a Project Agreement for Cause. EPG may
                  terminate a Project Agreement under any of the following
                  circumstances:

                  1.       if a Deliverable, as corrected, revised, or completed
                           pursuant to Section IV.G is not acceptable to EPG, or

                  2.       TPR's performance or delivery is so untimely that EPG
                           is unable to publish Textbooks in accordance with the
                           school adoption schedules; or

                  3.       TPR materially breaches a Project Agreement and fails
                           to cure the breach within the time period specified
                           in Section XIII.F.

         D.       TPR's Termination of the Agreement. TPR may terminate this
                  Agreement, in whole or in part in accordance with this Section
                  XIII if:

                  1.       during the period when a Textbook is being prepared,
                           EPG or McGraw-Hill enters into any voluntary or
                           involuntary bankruptcy or there is a general
                           assignment for the benefit of EPG's or McGraw-Hill's
                           creditors, or

                  2.       EPG breaches a material provision of this Agreement
                           and fails to cure the breach within the time period
                           specified in Section XIII.F.

         E.       EPG's Termination or Delay of a Protect Without Cause.
                  Notwithstanding any other provision of this Agreement and any
                  Project Agreement, EPG shall have the right in its sole
                  discretion, to terminate or to delay a Project Agreement based
                  upon changed business circumstances, including cancellation of
                  an adoption for which the work is being prepared. Upon EPG's
                  notice to TPR of any such termination or delay, each party
                  will cooperate to immediately cease performance of said
                  Project Agreement so as to mitigate costs for each party. EPG
                  will pay TPR for all services performed that EPG has approved
                  in accordance with the Project Agreement, up to the date of
                  termination. EPG will also pay TPR the amount of any bona fide
                  "cancellation fees" payable to third parties arising from
                  TPR's canceled commitments to others. In addition, EPG shall
                  pay to TPR, ten percent (10%) of the amount remaining of the
                  unpaid Project fees as stated in this

                                       19

<PAGE>   20
                  Agreement and the relevant Project Agreement, as modified by
                  any Change Order, as liquidated damages, and not as a penalty,
                  for cancellation. Upon payment, neither party will have any
                  further obligation or liability to the other under the
                  terminated Project Agreement, except those that survive under
                  Section XVIII.E. If EPG delays a Project, the parties will
                  cooperate to make for a smooth, economical transaction under
                  the circumstances by adding other Project(s) or by taking
                  other appropriate measures.

         F.       Right to Cure. Except for termination under Section XIII.E
                  above, neither party may terminate this Agreement or any
                  Project Agreement unless and until the party seeking
                  termination gives notice to the other party stating that it
                  intends to terminate this Agreement or any Project Agreement
                  and specifying the nature of the breach or default and unless
                  the receiving party fails to cure such breach or default
                  within thirty (30) days after receipt of the notice (or such
                  longer period of time as may be specified in the notice).

         G.       Consequences of Termination

                  1.       Upon EPG's notice of termination of a Project
                           Agreement under Section XIII.C. l above, EPG may
                           elect to: (a) retain any Deliverable in its latest
                           form of completion (including all prior drafts,
                           versions, builds or releases) and to own whatever
                           rights in it that have been granted in accordance
                           with this Agreement and the Project Agreement for
                           that Project, with no additional payments by EPG
                           other than what has been made as of termination; or
                           (b) return the Deliverable to TPR and grant back to
                           TPR, without warranty of any kind, all rights TPR
                           granted to EPG under this Agreement and the Project
                           Agreement for that Project, and TPR will return
                           payments made under the Project Agreement but not
                           expended before notice of termination.

                  2.       Upon termination or expiration of this Agreement, TPR
                           will own all right, title, and interest, including
                           copyrights and other rights in the Online Product, if
                           developed, and the parties will divide the Question
                           Pool evenly and randomly by subject between the two
                           parties, except that (a) the questions TPR initially
                           contributed from its inventory shall be allotted to
                           TPR, (b) the questions CTB initially contributed
                           shall be allotted to EPG; and (c) the Derivative
                           Questions shall be assigned to whichever party is
                           allotted the question from which the Derivative
                           Question was derived. Each party hereby assigns to
                           the other party as of the date of termination its
                           joint right, title, and interest, including
                           copyright, in the remaining questions in the Question
                           Pool allotted to the other party. Each party agrees
                           to execute such documents as the other reasonably
                           requests to confirm such assignment of rights under
                           this section.

                                       20

<PAGE>   21
                  3.       All the assignments under this Section XIII.G are
                           subject to the exclusive license granted to TPR in
                           Section XVI.A.2.

                  4.       If either party terminates this Agreement, the rights
                           and remedies of the parties are cumulative, and each
                           party also has all the rights and remedies provided
                           by law or equity.

         H.       Effect of a Project's Termination on Other Projects.
                  Termination of a portion of this Agreement or any Project
                  Agreement relating to a Project shall not affect those
                  provisions relating to the rights in copyrights or payment of
                  royalties or other monies based upon the sale or licensing of
                  Projects containing TPR Materials or bearing TPR Marks already
                  published under this Agreement or EPG's recovery of any
                  advance in royalties EPG paid to TPR.

XIV.     REPRESENTATIONS AND WARRANTIES

         A.       McGraw-Hill warrants and represents as follows:

                  1.       McGraw-Hill has the full right, power, and authority
                           to enter into this Agreement, and McGraw-Hill has not
                           and will not assign, pledge or encumber its rights in
                           the Question Pool to any other person or entity.

                  2.       Except for TPR Materials, the EPG Programs, the
                           Projects and Textbooks contain nothing that is
                           obscene, libelous, defamatory, or, when taken as a
                           whole is substantially inaccurate, or injurious, and
                           appropriate warnings and safety instructions are
                           included in Projects concerning any particular
                           hazards.

                  3.       Except for TPR Materials, the EPG Programs, the
                           Projects, Textbooks, and EPG Marks contain nothing
                           that violates or infringes a copyright, patent, trade
                           secret, or other literary property rights; or that
                           violates the rights of any person, including the
                           right of privacy, publicity, or moral right; or that
                           violates any EPG contract, express or implied; or
                           that discloses any information that EPG has obtained
                           in confidence or with the understanding that it would
                           not be disclosed or published.

                  4.       EPG will use the TPR Marks on and in connection with
                           any Project solely as provided in this Agreement and
                           any applicable provision of any Project Agreement and
                           will not use the TPR Marks on or in connection with
                           other goods, products or services.

                  5.       EPG makes no representation or warranty concerning
                           the timing of a Textbook's publication or the number
                           of copies of a Textbook that will be sold.

                                       21
<PAGE>   22
         B.       TPR hereby warrants and represents as follows:

                  1.       TPR has the full right, power, and authority to enter
                           into this Agreement and to grant, transfer, and
                           assign the rights granted and transferred in this
                           Agreement and TPR has not and will not assign, pledge
                           or encumber such rights or its rights in the Question
                           Pool to any other person or entity.

                  2.       Except for Third-Party Materials and any public
                           domain material, TPR is the sole developer of TPR
                           Materials, and TPR Materials are original and
                           previously unpublished, except as may be disclosed in
                           a Project Agreement.

                  3.       TPR Materials contained in any Projects contain
                           nothing that is obscene, libelous, defamatory, or,
                           when taken as a whole, are substantially inaccurate,
                           or injurious, and appropriate warnings and safety
                           instructions are included in Projects concerning any
                           particular hazards.

                  4.       TPR Materials and TPR Marks contained in any Project,
                           including any programming code, contain nothing that
                           violates or infringes a copyright, patent, trade
                           secret, or other literary property rights; or that
                           violates the rights of any person, including the
                           right of privacy, publicity, or moral right; or that
                           violates any TPR contract, express or implied; or
                           that discloses any information that TPR has obtained
                           in confidence or with the understanding that it would
                           not be disclosed or published.

                  5.       TPR will use the EPG Marks on and in connection with
                           any Project solely as provided in this Agreement and
                           any applicable provision of any Project Agreement and
                           will not use the EPG Marks on or in connection with
                           other goods, products or services.

                  6.       TPR makes no representation or warranties relating to
                           the content of any Project that is not TPR Materials.

         C.       Each party shall abide by all applicable laws in performing
                  this Agreement.

XV.      INDEMNIFICATION

         A.       Each party will defend and indemnify the other party, its
                  successor and assigns, and any seller or licensee of the EPG
                  Programs against all damages (including settlement), costs,
                  and expenses, including reasonable attorney's fees, based on
                  any third-party claim that said party's contribution infringes
                  that third party's copyright, trademark, patent, trade secret,
                  other proprietary right, or that third party's personal
                  property right, or any third-party claim, which, if proved,
                  breaches any of

                                       22
<PAGE>   23
                  the representations or warranties made by said indemnifying
                  party in this Agreement, whether or not the claim results in a
                  judgment. If such a claim has occurred, or in the opinion of
                  the party is likely to occur, the other party agrees to permit
                  the indemnifying party, at its option and expense, to settle
                  any claim, action, change or proceeding on such terms as it
                  deems advisable, or either to procure the right to continue
                  selling, promoting or using the allegedly infringing
                  contribution, or to replace its contribution or Trademark so
                  that the allegedly infringing contribution or Trademark is
                  non-infringing or non-offending. Modification of the
                  infringing or offending contribution shall not negate the
                  indemnifying party's obligation to indemnify the other party
                  in accordance with the terms of this Agreement.

         B.       Each indemnifying party will have the right to defend with
                  counsel of its own choosing. If the indemnified party desires
                  to retain its own counsel, it will do so at its own cost. The
                  indemnifying party shall pay any resulting costs, damages,
                  liabilities and expenses, including reasonable attorney's
                  fees, provided that the party seeking to be indemnified
                  promptly notifies the indemnifying party of the claim and
                  cooperates in the defense at the indemnifying party's expense,
                  and that the indemnifying party has sole control of the
                  defense and all related settlement negotiations.

XVI.     NON-COMPETITION

         A.       TPR

                  1.       Competition During the Term of the Agreement. During
                           the term of the Agreement, TPR agrees it will not
                           enter into a similar agreement with a person or that
                           part of a firm, corporation, company, partnership or
                           other entity engaged in the development, publication,
                           and distribution of proprietary educational materials
                           to the Educational Market ("Educational Publisher").
                           Also during the term of the Agreement, each party
                           (including the Divisions) is entitled to use the
                           questions that it contributed to the Question Pool
                           from inventory in other ventures so long as such
                           ventures do not compete with this Agreement.

                  2.       Competition After the Term of the Agreement. For so
                           long as a Textbook is being sold as part of an EPG
                           Program, TPR will not, for itself or an Educational
                           Publisher, without EPG's prior consent, use or
                           publish more than forty percent (40%) of the TPR
                           Materials in another secondary school textbook or
                           elementary school program, so that such textbook or
                           program might compete with or injure the
                           profitability of that Textbook or the EPG Program.

                  3.       TPR Trade Books. Both during and after the term of
                           this Agreement,

                                       23
<PAGE>   24
                           regardless of which party terminates the Agreement,
                           TPR will have the exclusive right, without any
                           compensation to EPG, to use the Question Pool, except
                           for the CTB questions and derivatives for trade print
                           publications and for products which are
                           noncompetitive with the EPG Programs, so long as not
                           more than forty percent (40%) of any such trade
                           publication includes questions from the Question
                           Pool. If the parties do not go forward with the
                           Online Product under Section III, each party will
                           have the right to use 50% of the Question Pool
                           without accounting to the other party, except that
                           neither party will be able to use the questions that
                           the other party initially contributed to the Question
                           Pool from inventory and the Derivative Questions
                           based on those contributed questions.

         B.       EPG. During the term of the Agreement, EPG will not retain
                  another person or business entity to substitute for TPR in
                  connection with the services that TPR performs under this
                  Agreement.

         C.       Ability to Compete. Except as expressly stated in this Section
                  XVI, each party acknowledges that the other may publish
                  textbooks, test questions, or materials within the same or
                  similar areas of general or specific interest as a Textbook
                  published under this Agreement, and nothing in this Agreement
                  shall inhibit a party from that practice. Each party
                  understands that the other party is in the business of
                  providing goods and services of many types, and it is not the
                  intent of this Section XVI to unduly curtail the freedom of
                  either party to conduct its business affairs, to enter into
                  agreements with others, or to offer goods or services to its
                  customers in accordance with its business judgment. This
                  Section XVI is to be construed in a reasonable manner with the
                  intent of protecting each party's right to carry on its own
                  business while ensuring that each enjoys the benefits of its
                  bargain under this Agreement.

XVII.    CONFIDENTIAL INFORMATION

         A.       Nondisclosure. Confidential Information is and remains the
                  property of the disclosing party. The parties will hold
                  Confidential Information in confidence and treat it as each
                  treats its own Confidential Information and will not disclose
                  it to any third person without the express consent of the
                  other party, except that the parties may disclose Confidential
                  Information, including the terms of this Agreement, for the
                  purpose of obtaining legal, financial or tax advice. A
                  material failure to abide by these provisions shall constitute
                  a material breach and cause for termination of this Agreement.

         B.       Definition of Confidential Information. "Confidential
                  Information" means all information that either party discloses
                  to the other and identifies as "confidential"

                                       24
<PAGE>   25
                  or "proprietary," or which, under all of the circumstances,
                  should reasonably be treated as confidential or proprietary,
                  including the content of a Textbook, its publication date, the
                  development fees, royalties rates and amounts paid, all
                  information that relates to each party's past, present, and
                  future research, development, plans, sales and business
                  activities, as well as all information, conclusions, drafts,
                  programming and associated materials and Textbook product
                  resulting from TPR's performance under this Agreement. Upon
                  termination or expiration of this Agreement, each receiving
                  party will return all Confidential Information to the
                  disclosing party, or destroy it and certify its destruction.
                  The terms and conditions of this Agreement and information
                  learned during an audit conducted under Section VI are
                  Confidential Information, except that either party may
                  disclose the terms of the Agreement for the purpose of seeking
                  legal, financial, or auditing advice so long as such advisors
                  agree to abide by the confidentiality restrictions of this
                  Section XVII.

         C.       Information that is Not Confidential. Confidentiality
                  obligations shall not apply to any Confidential Information
                  (1) that at or after disclosure is available to the general
                  public, other than through a breach by the receiving party;
                  (2) that is already known to the receiving party before
                  disclosure; (3) that is developed through the independent
                  efforts of the receiving party; (4) that the receiving party
                  rightfully receives from a third party without restriction as
                  to confidentiality or use; or (5) whose disclosure is required
                  by law or is requested by legal or administrative process,
                  except that the party who is served with process will give
                  immediate notice to the disclosing party of the process and
                  make reasonable efforts not to disclose the Confidential
                  Information until the disclosing party has had an opportunity
                  to make a motion to quash the request.

         D.       Press Releases. The parties will coordinate and cooperate with
                  each other in making any public announcement or press release
                  concerning this Agreement, any Project Agreement, or the
                  relationship between the parties under the Agreement. To that
                  end, each party will give the other party reasonable prior
                  opportunity to comment upon any such release or announcement
                  and to approve the subject matter, details, and use of the
                  other's Trademarks in it. Neither party will unreasonably
                  withhold its approval.

XVIII.   MISCELLANEOUS

         A.       Independent Contractors. Nothing in this Agreement shall be
                  construed so as to constitute the parties as joint venturers,
                  partners, or agents of each other, and neither party shall
                  have the power to obligate or bind the other in any way
                  whatsoever.

         B.       Entire Agreement. This Agreement, Exhibits A-D attached to it,
                  and the related

                                       25
<PAGE>   26
                  Project Agreements constitute the complete agreement between
                  the parties and supersede all other agreements, promises,
                  representations, and negotiations, whether written or oral,
                  between the parties regarding the subject matter of the
                  Agreement, including the parties' June 10, 1998 letter
                  agreement.

         C.       Amendment: Waiver. No amendment or waiver of any provision of
                  this Agreement will be valid unless in writing and signed by
                  all parties affected by the amendment or waiver. No waiver
                  shall be deemed a waiver of a subsequent breach.

         D.       Assignment. Neither party may assign this Agreement or assign
                  or delegate its obligations under it without the other's prior
                  consent, except that TPR can assign any monies payable to it,
                  and any assignment in violation of this provision shall be
                  null and void. Notwithstanding the foregoing, each party may
                  assign this Agreement as a whole in connection with the
                  transfer and sale of a Division, line of business,
                  substantially all its assets or the sale or transfer of its
                  voting shares, upon notice to the other. Should such transfer
                  create a material conflict of interest for the non-assigning
                  party, that party may terminate this Agreement upon reasonable
                  grounds upon prior notice. Subject to the foregoing, this
                  Agreement will be binding on the parties signing it and on all
                  their successors and permitted assignees.

         E.       Survival. The rights and obligations of Sections VI, VII, XIV,
                  XV, XVI.A.2, XVII, and XVIII, and those other provisions which
                  by their nature survive will survive the expiration or
                  termination of this Agreement and will bind the parties and
                  their successors and assigns in accordance with their terms.

         F.       Severability. If any provision of this Agreement is held
                  invalid or unenforceable, the remainder of the Agreement shall
                  not be affected and shall remain in effect, unless doing so
                  would deprive one of the parties of the benefit of the
                  Agreement.

         G.       Applicable Law and Forum. This Agreement will be construed in
                  accordance with and governed by the laws of the State of New
                  York applicable to agreements made and to be performed there
                  and without regard to it conflict of laws rules. Any disputes
                  arising out of or related to this Agreement will be brought in
                  the state or federal courts with jurisdiction in New York
                  County, New York, and the parties expressly consent to the
                  exclusive jurisdiction and venue of such courts.

         H.       Notices. Notices, approvals, disapprovals, excuses, requests,
                  and consents concerning day-to-day administrative and
                  performance matters must be in writing and sent to the
                  respective party's Project Managers. Notices, approvals,
                  disapprovals, requests, and consents of a substantive or legal
                  nature required by this Agreement for either party are to be
                  in writing and shall be forwarded as follows:

                                       26
<PAGE>   27
                  TPR:
                  ---

                  John Katzman, President
                  The Princeton Review
                  2315 Broadway, 2nd Floor
                  New York, N.Y. 10024
                  Telephone: (2l2) 874-8282
                  Facsimile: (212) 874-0775

                  with a copy to:
                  --------------

                  John P. Schmitt, Esq.
                  Patterson, Belknap, Webb & Tyler LLP
                  1133 Avenue of the Americas
                  New York, New York 10036
                  Telephone: (212) 336-2849
                  Facsimile: (2l2) 336-2222

                  EPG:
                  ---

                  Jack Witmer, President
                  The Educational and Professional Publishing Group
                  a unit of McGraw-Hill Companies, Inc.
                  936 Eastwind Drive
                  Westerville, Ohio 43081
                  Telephone: (614) 899-4300
                  Facsimile: (614) 899-4304

                  with a copy to:
                  --------------

                  Vice President and General Counsel
                  Educational Publishing Group
                  1221 Avenue of the Americas
                  New York, New York 10020-1095
                  Telephone: (212) 512-4427
                  Facsimile: (212) 512-4415

                  Changes in address by either party shall be made by notice to
                  the other party in accordance with this provision. Notices
                  required by this Agreement shall be deemed received (1) upon
                  delivery, when delivered in person or by commercially
                  receipted courier, (2) upon the date sent by facsimile or
                  other electronic media, if the sender confirms by sending a
                  copy by courier delivery or U.S. Postal Service, or (3) five
                  (5) days after deposit with the U.S. Postal Service by
                  registered or certified mail.

         I.       Force Majeure: Neither party shall be liable to the other for
                  any failure or delay caused by events beyond its reasonable
                  control, including, acts of God, sabotage, accidents, failures
                  or delays in transportation or communication, labor disputes,
                  shortages of labor, fuel, raw materials or equipment, or other
                  matters. Each party shall promptly inform the other of any
                  such event. Should the event prevent performance of this
                  Agreement for more than sixty (60) days, the other party may
                  terminate this Agreement or the applicable Project Agreement;
                  rights granted under this Agreement shall revert to the
                  grantor; and each party shall retain its rights in the
                  Question Pool specified in Section VIII.A.4, may exploit those
                  rights to the extent permitted by law, and need not account to
                  the other party with any proceeds from that exploitation.

         J.       Headings. Headings and captions throughout this Agreement are
                  for convenience only and should not be considered part of the
                  substantive terms of this Agreement.

         K.       Including. "Including" means "including but not limited to"
                  and "including without limitation."

                                       27
<PAGE>   28
         L.       Counterparts. This Agreement may be executed in two or more
                  counterparts, each of which shall be deemed an original, but
                  all of which together shall constitute one and the same
                  instrument.

                  IN WITNESS WHEREOF, the parties have executed this Agreement
on the date first set forth above.

EDUCATIONAL AND PROFESSIONAL                PRINCETON REVIEW
PUBLISHING GROUP, A UNIT OF                 PUBLISHING L.L.C.
THE MCGRAW-HILL
COMPANIES, INC.

By:    /s/ Jack Witmer                      By:    /s/ John Katzman
Title: President                            Title: President
Date:  12/24/98                             Date:  12/28/98

                                            Taxpayer ID No. 13-303-9184

                                       28
<PAGE>   29
                        Exhibit A: Question Pool Schedule

This chart represents the numbers of questions that The Princeton Review will
create, not edit, broken down by grade grouping, major subject area, and the
school year during which the questions will be delivered.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
CONTRACT YEAR       Math      Reading      Social Studies      Science     TOTAL
1998-1999
--------------------------------------------------------------------------------
<S>                 <C>       <C>          <C>                 <C>         <C>
K-2                   *          *              *                 *          *
--------------------------------------------------------------------------------
3-6                   *          *              *                 *          *
--------------------------------------------------------------------------------
7-8                   *          *              *                 *          *
--------------------------------------------------------------------------------
9-12                  *          *              *                 *          *
--------------------------------------------------------------------------------
TOTAL                 *          *              *                 *          *
--------------------------------------------------------------------------------
                                                                             *
--------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
CONTRACT YEAR       Math      Reading      Social Studies      Science     TOTAL
1999-2000
--------------------------------------------------------------------------------
<S>                 <C>       <C>          <C>                 <C>         <C>
K-2                   *          *              *                 *          *
--------------------------------------------------------------------------------
3-6                   *          *              *                 *          *
--------------------------------------------------------------------------------
7-8                   *          *              *                 *          *
--------------------------------------------------------------------------------
9-12                  *          *              *                 *          *
--------------------------------------------------------------------------------
TOTAL                 *          *              *                 *          *
--------------------------------------------------------------------------------
                                                                             *
--------------------------------------------------------------------------------
</TABLE>

                                       29
<PAGE>   30
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
CONTRACT YEAR       Math       Reading      Social Studies     Science     TOTAL
2000-2001
--------------------------------------------------------------------------------
<S>                 <C>        <C>          <C>                <C>         <C>
K-2                  *           *              *                *            *
--------------------------------------------------------------------------------
3-6                  *           *              *                *            *
--------------------------------------------------------------------------------
7-8                  *           *              *                *            *
--------------------------------------------------------------------------------
9-12                 *           *              *                *            *
--------------------------------------------------------------------------------
TOTAL                *           *              *                *            *
--------------------------------------------------------------------------------
                                                                              *
--------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
SUMMARY             Math       Reading      Social Studies     Science     TOTAL
--------------------------------------------------------------------------------
<S>                 <C>        <C>          <C>                <C>         <C>
K-2                  *           *              *                *            *
--------------------------------------------------------------------------------
3-6                  *           *              *                *            *
--------------------------------------------------------------------------------
7-8                  *           *              *                *            *
--------------------------------------------------------------------------------
9-12                 *           *              *                *            *
--------------------------------------------------------------------------------
TOTAL                *           *              *                *            *
--------------------------------------------------------------------------------
</TABLE>

                                       30
<PAGE>   31
                       Exhibit B: Sample Project Agreement

--------------------------------------------------------------------------------
Instructions: A Project Agreement is to be prepared by the EPG Contracts,
Copyright & Permissions Department as part of the Contract Request Form
procedures. EPG's Project Managers should initially complete this form and send
it to the Contract Department together with other required materials.
--------------------------------------------------------------------------------

This is a PROJECT AGREEMENT between the Educational and Professional Publishing
Group of The McGraw-Hill Companies, Inc. ("EPG") and Princeton Review Publishing
L.L.C. ("TPR") under a master Agreement dated _______________ 1998, between EPG
and TPR (the "Master Agreement"). The Master Agreement will govern preparation
and publication of the Textbook. Please complete additional pages, if necessary.

Any capitalized term (or grammatical variant of it) in this Project Agreement
has the same definition as does that term in the Master Agreement.

NAME OF PROJECT:

PROJECT AGREEMENT DATE:

NAME OF EPG DIVISION:

TYPE OF PROJECT: Ownership rights, including copyright rights, to the various
Deliverables that comprise TPR Materials are determined under the Master
Agreement in accordance with Section VII and Section XIII. Therefore, it is
important to correctly classify the various components of TPR Materials, since
such classification will determine each party's ownership rights to these
components of the Textbook. Please circle one:

Editorial Review
Workbook
Question Pool
Online Product
Training Seminar

                                       31
<PAGE>   32
NAME OF PROJECT MANAGERS:

EPG:                                        TPR:

Name:  _____________________                Name:  ______________________

Telephone:  _________________               Telephone:  __________________

Fax:  _______________________               Fax:  ________________________

EPG:                                        TPR:

E-mail:  _______________________            E-mail:  _______________________

         (1)      NAME OF EPG TEXTBOOK: Insert the title of the Program/Textbook
                  (if applicable) for which TPR is preparing a contribution
                  ("Project"). Identify the title by name, proposed copyright
                  date, Edition Number (if applicable), Author's Name (if
                  applicable), copyright, and other identifying details.

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

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

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

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

         (2)      DESCRIPTION OF SERVICES AND DELIVERABLES: Insert a description
                  of the services TPR is to perform and the TPR Materials that
                  TPR is to deliver ("Deliverable") hereunder. Attach additional
                  pages, if needed.

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

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

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

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

                                       32
<PAGE>   33
         (3)      Will TPR use any McGraw-Hill Materials in the preparation if
                  this TPR Work? yes / no If yes, please describe.

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

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

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

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

         (4)      MILESTONE EVENTS AND DELIVERY DATES: List all delivery dates
                  for services and Deliverables of the Project. Use additional
                  page(s), if needed:

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

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

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

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

                  Delivery/Performance                                 Dates
                  --------------------                                 -----
                  (Deliverables/Services to be performed)

         (5)      OWNERSHIP/LICENSE OF RIGHTS; RIGHTS OBTAINED FOR PERMISSIONS.
                  Will EPG have the right to publish and distribute the Textbook
                  in the following languages in addition to English (If Spanish
                  or other rights are specified, TPR will be obligated to obtain
                  such rights for all Third Party Materials, as stated in
                  Section VIII.C of the Master Agreement):

                  Spanish/Other (specify)/English only

         (6)      TOTAL PROJECT FEE: Insert the total Project Fee or Budget for
                  the Project, including payment dates or events; attach
                  additional pages, if needed. Unless otherwise noted, half
                  payment will be made at the start of the project, and half on
                  acceptance.

                  Total Project Fee:

         (7)      LICENSED THIRD-PARTY MATERIALS: Describe the nature, sources,
                  and cost of any Third Party Materials that TPR will be
                  licensing under Section VIII of the Agreement:

                                       33
<PAGE>   34
                  Under Section VIII.E, EPG will pay the cost of the Third Party
                  Materials

                  _____ directly to the Third Party (identify):

                  _____ to TPR, which will pay the Third Party.

         (8)      SPECIAL PROVISIONS: Describe any other special provisions, if
                  necessary:

         EPG                                TPR:

         Division:

         By:  ____________________________  By:  ____________________________

         Title:  __________________________ Title:  ___________________________

         Date:  __________________________  Date:  ___________________________

         Note: Please provide the EPG Contracts, Copyrights & Permissions
         Department with other relevant documentation such as correspondence
         exchanged between the parties, any "Request for a Proposal" issued by
         EPG, or any Proposal or Response to Proposal, or Bid issued by TPR when
         submitting a Contract Request Form for this Project Agreement.

                                       34
<PAGE>   35
                         Exhibit C: Sample Change Order

This is a CHANGE Order to a PROJECT AGREEMENT between the Educational and
Professional Publishing Group of The McGraw-Hill Companies, Inc. ("EPG") and
Princeton Review Publishing L.L.C. ("TPR") under a Master Agreement dated
_____________ 1998, between EPG and TPR (the "Master Agreement"). Any
capitalized term (or grammatical variant of it) in this Change Order has the
same definition as does that term in the Master Agreement.

This Change Order affects the following Project Agreement:

Date:  __________________________________
EPG Division:  ___________________________
Title of Program/Textbook:__________________

Insert a description of the material changes in TPR's services or TPR Materials,
for example, any change in the scope of services to be provided by TPR,
Deliverables, scheduled delivery dates, amount and dates of payment of Total
Project Fee, etc. Attach Additional Page(s), if necessary.

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

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

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

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

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

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

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

I)       SCOPE OF CHANGE:  (TPR services or materials to be added or deleted)

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

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

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

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

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

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

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

II)      COMPENSATION OR PAYMENT SCHEDULE:

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

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

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

                                       35
<PAGE>   36
----------------------------------------------------------------------------

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

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

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

III)     OWNERSHIP RIGHTS:

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

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

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

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

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

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

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

IV)      OTHER SUBSTANTIAL CHANGES:

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

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

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

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

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

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

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

EPG:                                TPR:

Division:

By:  ____________________________   By:  ____________________________

Title:  __________________________  Title:  ___________________________

Date:  __________________________   Date:  ___________________________

                                       36
<PAGE>   37
                          Exhibit D: Excluded Materials

Sales of the following materials are excluded from the calculation of royalties
under Section V.D. l of the Agreement:

                                 SCHOOL DIVISION

                                        *

                               GLENCOE/MCGRAW-HILL

                                 SOCIAL STUDIES

                                        *

                                  LANGUAGE ARTS

                                        *

                                     SCIENCE

                                        *

                                      MATH

                                        *

                                       37
<PAGE>   38
                     Exhibit E: List of Licensed Trademarks

A list of Trademarks, service marks and logos which are cross-licensed under the
Agreement between EPG and TPR.

"TPR MARKS" LICENSED TO EPG:

         THE PRINCETON REVIEW

"EPG MARKS" LICENSED TO TPR:

EPG Marks:

         Corporate:

                  McGraw-Hill
                  McGraw-Hill logo                 THE MCGRAW-HILL COMPANIES

         The McGraw-Hill Companies, Inc.
         The Educational and Professional Publishing Group of the McGraw-Hill
         Companies, Inc.

Glencoe Marks:

         Glencoe
         Glencoe/McGraw-Hill/
         Mindjogger

SRA Marks:

         SRA
         SRA/McGraw-Hill
         Science Research Associates
         SRA logo
         Open Court
         OC Design (Open Court)

                                       38
<PAGE>   39
School Division:

         School Division
         Math in My World

Marks may be added or deleted from this Exhibit during the term of the Agreement
with written notice.

                                       39
<PAGE>   40
                                AGREEMENT BETWEEN
               THE EDUCATIONAL AND PROFESSIONAL PUBLISHING GROUP,
                    A UNIT OF THE MCGRAW-HILL COMPANIES, AND
                              THE PRINCETON REVIEW

                                TABLE OF CONTENTS

I.       DEFINITIONS......................................................1

II.      THE PARTIES' PERFORMANCE OBLIGATIONS.............................3

III.     DEVELOPMENT OF THE ONLINE PRODUCT................................5

IV.      PROJECT AGREEMENTS AND PROJECT MANAGERS..........................5

V.       PAYMENT FOR PROJECTS AND ROYALTIES...............................7

VI.      AUDITING........................................................11

VII.     COPYRIGHT AND LICENSES..........................................11

VIII.    LICENSED THIRD-PARTY MATERIALS..................................13

IX.      TRADEMARK LICENSES..............................................14

X.       TRADEMARK IDENTIFICATION; CREDIT................................16

XI.      TRADEMARK QUALITY, INSPECTION AND APPROVAL......................16

XII.     FAILURE TO PUBLISH; REVERSION OF RIGHTS.........................17

XIII.    TERM AND TERMINATION............................................18

XIV.     REPRESENTATIONS AND WARRANTIES..................................21

XV.      INDEMNIFICATION.................................................22

XVI.     NON-COMPETITION.................................................23

XVII.    CONFIDENTIAL INFORMATION........................................24

XVIII.   MISCELLANEOUS...................................................26
<PAGE>   41
Exhibit A:  Question Pool Schedule.......................................29

Exhibit B:  Sample Project Agreement.....................................31

Exhibit C:  Sample Change Order..........................................35

Exhibit D:  Excluded Materials...........................................37

Exhibit E:  List of Licensed Trademarks..................................39

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]