Document:

STAR E MEDIA CORP.
                               ------------------

             Notice of Exercise and Common Stock Purchase Agreement
             ------------------------------------------------------
     THIS AGREEMENT is dated as of ___________, ____, between Star E Media Corp.
(the  "Company"),  and  _________________  ("Purchaser").

                              W I T N E S S E T H:

     WHEREAS,  the  Company  and  Purchaser  are  parties  to  that  certain ___
Incentive  ___ Nonstatutory Stock Option Agreement dated as of ___________, ____
(the  "Option  Agreement")  pursuant  to  which  the  Purchaser has the right to
purchase  up  to  ______  shares  of  the  Company's  common  stock (the "Option
Shares");  and
WHEREAS,  the Option is exercisable with respect to certain of the Option Shares
as  of  the  date  hereof;  and

     WHEREAS,  pursuant to the Option Agreement, Purchaser desires  to  purchase
shares of the Company as herein described, on the terms and conditions set forth
in  this Agreement, the Option Agreement and the Star E Media Corp. 2002 Omnibus
Securities  Plan  (the "Plan"). Certain capitalized terms used in this Agreement
are  defined  in  the  Plan.

     NOW,  THEREFORE,  it  is  agreed  between  the  parties  as  follows:

SECTION  1:  PURCHASE  OF  SHARES.
---------------------------------

     (a)     Pursuant  to  the  terms  of the Option Agreement, Purchaser hereby
agrees  to purchase from the Company and the Company agrees to sell and issue to
Purchaser  _________  shares of the Company's common stock (the "Stock") for the
Exercise  Price  per share specified in the Option Agreement payable by personal
check,  cashier's check or money order, if permitted by the Option Agreement, as
follows:  _______________________________.  Payment  shall  be  delivered at the
Closing,  as  such  term  is  hereinafter  defined.

     (b)     The closing hereunder (the "Closing") shall occur at the offices of
the  Company  on  __________,  ____,  or  such  other  time  and place as may be
designated  by  the  Company  (the  "Closing  Date").

SECTION  2:  REPURCHASE  OPTION
-------------------------------
     All  unvested  shares  of  the Stock purchased by the Purchaser pursuant to
this Agreement (sometimes referred to as the "Repurchase Option Stock") shall be
subject  to  the  following  option  (the  "Repurchase  Option"):

     (a)     In  the  event  the  Purchaser  terminates service with the Company
("Service")  for any reason, with or without cause, the Company may exercise the
Repurchase  Option.

<PAGE>
     (b)    Purchaser  understands  that  the Stock  is  being sold in order  to
induce Purchaser to become and/or remain associated with the Company and to work
diligently  for  the success of the Company and that the Repurchase Option Stock
will  continue  to  vest in accordance with the schedule set forth in the Option
Agreement.  Accordingly,  the Company shall have the right at any time within 90
days  after the termination of Service to purchase from the Purchaser all shares
of  Stock purchased hereunder which have not vested in accordance with the terms
of  such  vesting  schedule in the Option Agreement. The purchase price for such
unvested shares of Repurchase Option Stock shall be the Exercise Price per share
paid  by  Purchaser for such shares pursuant to the Option (the "Option Price").
The  purchase  price  shall  be  paid  by  certified  or  cashier's  check or by
cancellation  of  any  indebtedness  of  Purchaser  to  the  Company.

     (c)     Nothing  in  this  Agreement  shall  be  construed  as  a  right by
purchaser to be employed by Company, or a  parent  or  subsidiary  of  Company.

SECTION  3:  EXERCISE  OF  REPURCHASE  OPTION
---------------------------------------------

     The  Repurchase  Option  shall  be exercised by written notice signed by an
officer of the Company and delivered or mailed as provided in Section 16 of this
Agreement  and to the Escrow Agent as provided in Section 16 of the Joint Escrow
Instructions  attached  as  Exhibit  B  to  the  Option  Agreement.

SECTION  4:  WAIVER,  ASSIGNMENT,  EXPIRATION  OF  REPURCHASE  OPTION
---------------------------------------------------------------------
     If  the Company waives or fails to exercise the Repurchase Option as to all
of  the  shares subject thereto, the Company may, in the discretion of its Board
of  Directors,  assign  the  Repurchase Option to any other holder or holders of
preferred  or  common  stock of the Company in such proportions as such Board of
Directors may determine.  In the event of such an assignment, the assignee shall
pay  to  the  Company  in  cash  an amount equal to the fair market value of the
Repurchase  Option.  The  Company  shall promptly, upon expiration of the 90-day
period  referred to in Section 2 above, notify Purchaser of the number of shares
subject  to the Repurchase Option assigned to such stockholders and shall notify
both  the Purchaser and the assignees of the time, place and date for settlement
of  such  purchase, which must be made within 90 days from the date of cessation
of  continuous  employment.  In the event that the Company and/or such assignees
do  not  elect to exercise the Repurchase Option as to all or part of the shares
subject  to  it,  the  Repurchase Option shall expire as to all shares which the
Company  and/or  such  assignees  have  not  elected  to  purchase.

SECTION  5:  ESCROW  OF  SHARES
-------------------------------

     (a)     As  security  for  Purchaser's faithful performance of the terms of
this Agreement and to ensure the availability for delivery of Purchaser's shares
upon  exercise of the Repurchase Option herein provided for, Purchaser agrees at
the  Closing hereunder, to deliver to and deposit with the Escrow Agent named in
the Joint Escrow Instructions attached to the Option Agreement as Exhibit B, the
certificate  or  certificates  evidencing  the  Option  Stock  subject  to  the
Repurchase  Option  and  two Assignments Separate from Certificate duly executed
(with  date  and  number  of shares in blank) in the form attached to the Option
Agreement  as  Exhibit D.  Such documents are to be held by the Escrow Agent and
delivered  by  the Escrow Agent pursuant to the Joint Escrow Instructions, which
instructions  shall  also  be  delivered  to  the  Escrow  Agent  at the Closing
hereunder.

     (b)     Within  30  days  after  the  last day of each successive completed
calendar  quarter  after  the Closing Date, if Purchaser so requests, the Escrow
Agent  will  deliver  to  Purchaser  certificates representing so many shares of
Stock  as  are  no  longer subject to the Repurchase Option (less such shares as
have  been  previously  delivered).  Ninety  days after cessation of Purchaser's

<PAGE>
employment  with the Company the Company will direct the Escrow Agent to deliver
to Purchaser a certificate or certificates representing the number of shares not
repurchased  by  the  Company  or  its  assignees  pursuant  to  exercise of the
Repurchase  Option  (less  such  shares  as  have  been  previously  delivered).

SECTION  6:  ADJUSTMENT  OF  SHARES
-----------------------------------
     Subject  to the provisions of the Articles of Incorporation of the Company,
if,  from  time  to  time  during  the  term  of  the  Repurchase  Option:

     (a)     there  is any stock dividend or liquidating dividend of cash and/or
property,  stock  split or other change in the character or amount of any of the
outstanding  securities  of  the  Company,  or

     (b)     there  is any consolidation, merger or sale of all or substantially
all, of  the  assets  of  the  Company,

then,  in  such  event, any and all new, substituted or additional securities or
other property to which Purchaser is entitled by reason of Purchaser's ownership
of  the  shares  shall be immediately subject to such Repurchase Option with the
same force and effect as the shares of Option Stock from time to time subject to
the Repurchase Option.  While the total Option Price shall remain the same after
each such event, the Option Price per share of Option Stock upon exercise of the
Repurchase Option shall be appropriately and equitably adjusted as determined by
the  Board  of  Directors  of  the  Company.

SECTION  7:  THE  COMPANY'S  RIGHT  OF  FIRST  REFUSAL
------------------------------------------------------

     Before  any  shares  of  Stock  registered in the name of Purchaser and not
subject  to  the Repurchase Option may be sold or transferred, such shares shall
first  be  offered  to  the  Company  as  set  forth  in  the  Option Agreement.

SECTION  8:  PURCHASER'S RIGHTS AFTER EXERCISE OF REPURCHASE OPTION OR RIGHT OF
-------------------------------------------------------------------------------
FIRST  REFUSAL
--------------

     If the Company makes available, at the time and place and in the amount and
form  provided  in  this  Agreement,  the  consideration  for  the  Stock  to be
repurchased  in  accordance  with  the  provisions  of  Sections 2 and 7 of this
Agreement, then from and after such time the person from whom such shares are to
be repurchased shall no longer have any rights as a holder of such shares (other
than  the right to receive payment of such consideration in accordance with this
Agreement).  Such  shares shall be deemed to have been repurchased in accordance
with  the  applicable  provisions  hereof,  whether  or  not  the certificate(s)
therefor  have  been  delivered  as  required  by  this  Agreement.

SECTION  9:  TRANSFER  BY  PURCHASER  TO  CERTAIN  TRUSTS.
----------------------------------------------------------
     Purchaser  shall  have  the  right  to  transfer  all  or  any  portion  of
Purchaser's  interest  in the shares issued under this Agreement which have been
delivered to Purchaser under the provisions of Section 5 of this Agreement, to a
trust  established by Purchaser for the benefit of Purchaser, Purchaser's spouse
or  Purchaser's  children,  without being subject to the provisions of Section 7
hereof,  provided that the trustee on behalf of the trust shall agree in writing
to be bound by the terms and conditions of this Agreement.  The transferee shall
execute  a  copy of Exhibit C attached to the Option Agreement and file the same
with  the  Secretary  of  the  Company.

<PAGE>
SECTION  10: LEGEND  OF  SHARES.
--------------------------------

     All  certificates  representing  the  Stock  purchased under this Agreement
shall,  where  applicable,  have  endorsed  thereon the legends set forth in the
Option  Agreement  and any other legends required by applicable securities laws.

SECTION  11: PURCHASER'S  INVESTMENT  REPRESENTATIONS.
------------------------------------------------------
     (a)     This  Agreement is made with Purchaser in reliance upon Purchaser's
representation  to the Company, which by Purchaser's acceptance hereof Purchaser
confirms,  that  the  Stock  which  Purchaser will receive will be acquired with
Purchaser's  own  funds  for investment for an indefinite period for Purchaser's
own  account,  not  as  a  nominee  or agent, and not with a view to the sale or
distribution of any part thereof, and that Purchaser has no present intention of
selling,  granting  participation  in,  or  otherwise distributing the same, but
subject,  nevertheless,  to  any  requirement  of  law  that  the disposition of
Purchaser's  property  shall  at  all  times  be within Purchaser's control.  By
executing  this  Agreement, Purchaser further represents that Purchaser does not
have any contract, understanding or agreement with any person to sell, transfer,
or  grant  participation, to such person or to any third person, with respect to
any  of  the  Stock.

     (b)     Purchaser  understands  that  the  Stock  will not be registered or
qualified  under  federal  or  state securities laws on the ground that the sale
provided  for  in  this  Agreement  is exempt from registration or qualification
under  federal  or state securities laws and that the Company's reliance on such
exemption  is  predicated  on  Purchaser's  representations  set  forth  herein.

     (c)     Purchaser agrees that in no event will Purchaser make a disposition
of any of the Stock (including a disposition under Section 9 of this Agreement),
unless  and  until (i) Purchaser shall have notified the Company of the proposed
disposition  and  shall  have  furnished  the  Company  with  a statement of the
circumstances surrounding the proposed disposition and (ii) Purchaser shall have
furnished  the Company with an opinion of counsel satisfactory  to  the  Company
to the effect  that (A)  such  disposition  will  not  require  registration  or
qualification  of  such  Stock  under  federal  or  state securities laws or (B)
appropriate action necessary for compliance with the federal or state securities
laws  has  been  taken  or (iii) the Company shall have waived, expressly and in
writing,  its  rights  under  clauses  (i)  and  (ii)  of  this  section.

     (d)     With  respect  to a transaction occurring prior to such date as the
Plan  and  Stock  thereunder  are covered by a valid Form S-8 or similar federal
registration  statement,  this  subsection shall apply unless the transaction is
covered  by  the  exemption in Nevada General Corporation Law or a similar broad
based  exemption. In connection with the investment representations made herein,
Purchaser  represents  that  Purchaser is able to fend for himself or herself in
the  transactions  contemplated  by  this  Agreement,  has  such  knowledge  and
experience  in financial and business matters as to be capable of evaluating the
merits and risks of Purchaser's investment, has the ability to bear the economic
risks  of  Purchaser's investment and has been furnished with and has had access
to  such  information  as  would be made available in the form of a registration
statement  together  with  such additional information as is necessary to verify
the  accuracy  of the information supplied and to have all questions answered by
the  Company.

     (e)     Purchaser understands  that  if  the Company does not register with
the  Securities and Exchange Commission pursuant to Section 12 of the Securities
Exchange  Act  of  1934,  as  amended  (the "Exchange Act") or if a registration
statement  covering  the  Stock  (or  a  filing  pursuant  to the exemption from
registration  under  Regulation  A  of  the  Securities  Act  of 1933) under the
Securities  Act  of  1933  is  not  in effect when Purchaser desires to sell the
Stock,  Purchaser may be required to hold the Stock for an indeterminate period.
<PAGE>
Purchaser  also  acknowledges  that  Purchaser  understands that any sale of the
Stock  which  might  be  made  by  Purchaser in reliance upon Rule 144 under the
Securities  Act  of  1933 may be made only in limited amounts in accordance with
the  terms  and  conditions  of  that  Rule.

SECTION  12: ASSISTANCE  TO  PURCHASER  UNDER  RULE  144.
---------------------------------------------------------

     The  Company  covenants  and  agrees  that  (a) at all times after it first
becomes  subject  to  the  reporting  requirements of Section 13 or 15(d) of the
Exchange  Act,  it  will  use its best efforts to comply with the current public
information requirements of Rule 144(c)(1) under the  Securities  Act  of  1933,
and that  if  prior  to  becoming  subject  to  such  reporting  requirements an
over-the-counter  market develops for the Stock, it will make publicly available
the  information required by Rule 144(c)(2); (b) it will furnish Purchaser, upon
request,  with  all  information required for the preparation and filing of Form
144;  and (c) it will on a timely basis use its best efforts to file all reports
required  to  be  filed  and  make  all  disclosures,  including  disclosures of
materially  adverse  information,  required  to  permit  Purchaser  to  make the
required  representations  in  Form  144.

SECTION  13: NO  DUTY  TO  TRANSFER  IN  VIOLATION  HEREUNDER.
--------------------------------------------------------------

     The  Company  shall not be required (a) to transfer on its books any shares
of  Stock  of the Company which shall have been sold or transferred in violation
of any of the provisions set forth in this Agreement or (b) to treat as owner of
such  shares or to accord the right to vote as such owner or to pay dividends to
any  transferee  to  whom  such  shares  shall  have  been  so  transferred.

SECTION  14: RIGHTS  OF  PURCHASER.
-----------------------------------

     Except  as  otherwise  provided herein, Purchaser shall, during the term of
this  Agreement,  exercise  all  rights  and  privileges of a stockholder of the
Company  with  respect  to  the  Stock.

SECTION  15: OTHER  NECESSARY  ACTIONS.
---------------------------------------
     The  parties  agree  to  execute  such further instruments and to take such
further  action  as  may reasonably be necessary to carry out the intent of this
Agreement.

SECTION  16: NOTICE.
--------------------

     Any  notice  required  or permitted hereunder shall be given in writing and
shall  be  deemed  effectively  given  upon  the  earliest of personal delivery,
receipt or the third full day following deposit in the United States Post Office
with  postage  and  fees  prepaid,  addressed  to  the other party hereto at the
address  last  known  or at such other address as such party may designate by 10
days'  advance  written  notice  to  the  other  party  hereto.

SECTION  17: SUCCESSORS  AND  ASSIGNS.
--------------------------------------

     This  Agreement shall inure to the benefit of the successors and assigns of
the  Company  and,  subject to the restrictions on transfer herein set forth, be
binding  upon  Purchaser   and  Purchaser's  heirs,  executors,  administrators,
successors  and assigns.  The failure of the Company in any instance to exercise
the  Repurchase  Option  or  rights  of  first  offer described herein shall not
constitute  a waiver of any other Repurchase Option or right of first offer that
may subsequently arise under the provisions of this Agreement.  No waiver of any
breach  or  condition  of  this  Agreement shall be deemed to be a waiver of any
other  or subsequent breach or condition, whether of a like or different nature.

<PAGE>
SECTION  18: APPLICABLE  LAW.
-----------------------------
     This  Agreement shall be governed by, and construed in accordance with, the
laws  of the State of Nevada, as such laws are applied to contracts entered into
and  performed  in  such  state.

SECTION  19: NO  STATE  QUALIFICATION.
--------------------------------------

     THE  SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT
BEEN  QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF NEVADA AND
THE  ISSUANCE  OF  SUCH  SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE
CONSIDERATION  THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE SALE
OF  SECURITIES  IS  EXEMPT FROM THE QUALIFICATION.  THE RIGHTS OF ALL PARTIES TO
THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED,
UNLESS  THE  SALE  IS  SO  EXEMPT.

SECTION  20: NO  ORAL  MODIFICATION.
------------------------------------

     No modification of this Agreement shall be valid unless made in writing and
signed  by  the  parties  hereto.

SECTION  21: ENTIRE  AGREEMENT.
-------------------------------

     This  Agreement and the Option Agreement constitute the entire complete and
final  agreement  between  the  parties hereto with regard to the subject matter
hereof.

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

STAR  E  MEDIA  CORP.                    PURCHASER

By:_____________________________         ______________________________
    Its:________________________DISTRIBUTION AGREEMENT

THIS DISTRIBUTION AGREEMENT (this "AGREEMENT") is entered into as of May 1, 2000
(the  "EFFECTIVE  DATE")  by and between SCHOLASTIC INC., a New York corporation
with  offices  at 555 Broadway, New York, New York 10012 ("SCHOLASTIC") and STAR
E-MEDIA  CORPORATION, a Nevada corporation with offices at 188 Technology Drive,
Suite  B,  Irvine,  California  92618  ("DISTRIBUTOR").

                                    RECITALS

WHEREAS,  Scholastic  designs,  develops,  manufactures, markets and distributes
certain  multimedia  and interactive software in various formats and for various
platforms.

WHEREAS,  Distributor markets and distributes certain multimedia and interactive
software  for selected platforms through its channels of distribution, including
without  limitation  the  Permitted  Channels,  as  defined  herein.

WHEREAS,  Distributor  desires  the  right  to  market,  distribute and sell the
Scholastic software described herein and Scholastic desires to grant Distributor
the  right  to  so  market,  distribute  and sell such software on the terms and
conditions  set  forth  herein.

THEREFORE, in consideration of the promises, agreements, covenants,  representa-
tions  and  warranties  herein  contained,  Scholastic and Distributor agree  as
follows:

1.      CERTAIN DEFINITIONS. For purposes of this Agreement, the following terms
have  the  indicated  meanings:

1.1     "CD-ROM"  means  Compact  Disc-Read  Only  Memory.

1.2     "DERIVATIVE  WORK"  means: (a) without limitation, any computer program,
work  product,  service,  improvement,  supplement,  modification,   alteration,
addition,  revision,  enhancement,  new  version,  new  edition, remake, sequel,
translation,  adaptation,  design,  plot, theme, character, story line, concept,
scene,  audio-visual  display,  interface,  element  or  aspect,  in any medium,
format,  use  or  form whatsoever, whether interactive or linear and whether now
known  or unknown (including but not limited to sound recordings, phono records,
computer-assisted  media,  games,  books,  magazines,  periodicals, merchandise,
animation,  home  videos, radio, motion pictures, cable and television), that is
derived  in  any manner, directly or indirectly, from any Scholastic Property or
Product,  or any part or aspect of any thereof, or that uses or incorporates and
Scholastic  Property  or  Product, or any part or aspect of any thereof; (b) any
"derivative  work"  of any Scholastic Property or Product, or any part or aspect
of  any  thereof,  as  defined in the Copyright Law of the U.S., Title 17 U.S.C.
(101  et  seq.  (the  "COPYRIGHT  LAW");  and  (c) any material or documentation
related  to  any  of  the  foregoing.

1.3     "SCHOLASTIC  AFFILIATES"  means  Scholastic  and  all  of  its  related,
affiliated  and  subsidiary  companies.

1.4     "SCHOLASTIC  PROPERTIES"  means, with respect to any product, Translated
Product  and  collectively  with respect to all Products and Translated Products
(as  the  context  may  require), all scenes and characters (together with their
likenesses  and  names)  and  designs  (including  without  limitation marks and

<PAGE>
logos),  and  all  art,  animation, video and other audiovisual material, sound,
music,  and  text  (including  without  limitation  fonts), owned or licensed by
Scholastic  which  are  depicted  or  used in such Product, Products, Translated
Product  or  Translated  Products.

1.5     "DOLLARS"  and  the  sign  "$"  each  mean  lawful  money  of  the  U.S.

1.6     "END  USER"  means  any  third party that acquires a Translated Unit for
personal  use  and/or in classroom use (without a view to resell, lease, license
or otherwise further commercially distribute such Unit or any component thereof)
from  Distributor.

1.7     "FLOPPY  DISK"  means  a 3.5 inch disk capable of storing computer data.

1.8     "INTELLECTUAL  PROPERTY  RIGHTS"  means any and all (by whatever name or
term  known  or  designated)  tangible and intangible and now known or hereafter
existing (a) rights associated with works of authorship throughout the universe,
including  but  not limited to copyrights (including without limitation the sole
and  exclusive  right to prepare "derivative works" (as defined in the Copyright
Law)  of  the  copyrighted  work and to copy, manufacture, reproduce, distribute
copies  of,  modify,  publicly perform and publicly display the copyrighted work
and  all  derivative  works thereof), moral rights (including without limitation
any  right  to  identification  of  authorship  and any limitation on subsequent
modification)  and  mask-works,  (b) rights in and relation to the protection of
trademarks, service marks, trade names, goodwill, rights in packaging, rights of
publicity,  merchandising  rights,  advertising  rights  and similar rights, (c)
rights  in  and  relating  to  the  protection of trade secrets and confidential
information,  (d)  patents,  designs,  algorithms  and other industrial property
rights  and  rights  associated therewith, (e) other intellectual and industrial
property  and  proprietary  rights  (of  every  kind  and  nature throughout the
universe  and  however  designated)  relating  to  intangible  property that are
analogous  to  any  of the foregoing rights (including without limitation logos,
character  rights,  "rental" rights and rights to remuneration), whether arising
by  operation  of  law,  contract,  license  or  otherwise,  (f)  registrations,
applications, renewals, extensions, continuations, divisions or reissues thereof
now  or hereafter in force throughout the universe (including without limitation
rights  in any of the foregoing), and (g) rights in and relating to the sole and
exclusive  possession,  ownership and use of any of the foregoing throughout the
universe,  including  without  limitation  the  right to license and sublicense,
franchise,  assign,  pledge, mortgage, sell, transfer, convey, grant, gift over,
divide,  partition  and  use (or not use) in any way any of the foregoing now or
hereafter  (including  without limitation any claims and causes of action of any
kind  with  respect to, and any other rights relating to the enforcement of, any
of  the  foregoing).

1.9     "PERMITTED  CHANNELS"  means  Trade  Channels  and  School Channels.  As
used  herein:  "Trade  Channels"  means  wholesalers, jobbers, independent sales
representatives,  direct  mail,  telemarketing, catalog sales, retail chains and
independent retailers where software is sold; "School Channels" mean any and all
private  schools,  public  schools,  religious schools, school districts, school
boards,  and  state or local departments of education, including any educational
use  by  handicapped  and/or  disabled students,  community  centers,  neighbor-
hood  houses,  hospitals  or  other  health institutions, after school programs,
libraries, juvenile houses or halls, camps or camping organizations, direct mail
to school, and catalog excluding without limitation the following which shall be
exclusively reserved for Scholastic and Scholastic Affiliates: all United States
Department  of  Defense,  U.S.  Embassy dependent schools and programs, American

<PAGE>
schools  and  programs,  International  schools  and  programs and U.S. Military
schools  wherever  located; Scholastic Book Clubs, Scholastic Software Clubs and
Scholastic-branded Fairs and Scholastic Affiliates within the Territory. As used
herein:  "Scholastic  Book  Club"  means  through  the use of Scholastic-branded
flyers;  "Scholastic  Software Club" means through the use of Scholastic-branded
flyers;  and  Scholastic-branded  Fair"  means  Scholastic-branded  fairs.

1.10    "PRODUCT  OR  PRODUCTS" means the software products developed by or  for
Scholastic  listed  on  Exhibit  A  attached  hereto.
                        ----------

1.11    "TRANSLATION OR TRANSLATED" means all  revisions,  modifications,  dele-
tions, additions, localizations, translations and/or adaptations of the Products
and  Units  in  the  Spanish  language and appropriate to the customs of Brazil,
Colombia, Venezuela, Peru, Argentina, Costa Rica, Guatemala, El Salvador, Mexico
and  Spain  and  translated  by  Distributor  under  this  Agreement.

1.12    "TRANSLATED  PRODUCT  OR  TRANSLATED  PRODUCTS"   means  the  Translated
version  of  the  Products  in  the  Spanish  language  only  and  translated by
Distributor  under  this  Agreement.

1.13    "UNIT"  means  a single, shrink-wrapped package of a Product  containing
one  CD-ROM  or  Floppy Disk, as applicable, and its related User Documentation.

1.14    "TRANSLATED  UNIT"  means  a single, shrink-wrapped package of  a Trans-
lated  Product  containing  one  CD-ROM  or  Floppy Disk, as applicable, and its
related  Translated  User  Documentation.

1.15    "USER  DOCUMENTATION"  means,  with respect to any Product and  collect-
tively with respect to all Products (as the context may require), (a) the user's
manual for such Product, in booklet form, which shall be printed "four color" on
the  front  and  back and in black and white on all text pages; (b) the end user
license agreement and related warranties and disclaimers for such Product, which
in  Scholastic's  sole  discretion,  shall  be  included either as a part of the
user's  manual  for  such  Product or in a separate black and white booklet (the
"End  User License"); (c) other information not otherwise included in the user's
manual or End User License for such Product further instructing End Users in the
use and operation of such Product (such as an errata sheet, technical notes, and
additional warranties and disclaimers and customer support information); (d) all
registration  cards and other related materials for such Product; (e) a separate
sticker,  blow-in  insert,  or pre-printed sleeve, bag or envelope, in each case
advising  of  the  contents of the End User License so that the same may be read
without opening the sealed package containing the CD-ROM or Floppy Disk for such
Product;  (f)  promotional  inserts  (such as catalogs, brochures or flyers) and
such  other  documents  included  with such Product as Scholastic may provide or
approve  in  its  sole  discretion;  (g)  all  packaging  and  label artwork and
information.
1.16    "TRANSLATED  USER  DOCUMENTATION" means, with respect to any  Translated
Product and collectively with respect to all Translated Products (as the context
may require), (a) the user's manual for such Translated Product, in booklet form
,  which  shall  be  printed "four color" on the front and back and in black and
white  on  all  text  pages;  (b)  the  end  user  license agreement and related
warranties  and  disclaimers for such Translated Product, which, in Scholastic's
sole  discretion,  shall  be  included either as a part of the user's manual for
such  Translated  Product  or  in  a  separate  black  and  white  booklet  (the
"Translated  End User License"); (c) other information not otherwise included in

<PAGE>
the  user's  manual  or  Translated End User License for such Translated Product
further  instructing  End  Users  in  the  use  and operation of such Translated
Product  (such  as  an  errata sheet, technical notes, additional warranties and
disclaimers  and  customer  support information); (d) all registration cards and
other  related  materials  for  such Translated Product; (e) a separate sticker,
blow-in insert, or pre-printed sleeve, bag or envelope, in each case advising of
the  contents  of  the  Translated End User License so that the same may be read
without opening the sealed package containing the CD-ROM or Floppy Disk for such
Translated  Product;  (f)  promotional  inserts  (such  as Translated Product as
Scholastic  may provide or approve in its sole discretion; (g) all packaging and
label  artwork  and  information.

1.17    "TERMINATION  DATE"  means  the date upon which any termination of  this
Agreement,  for  any  reason whatsoever (including expiration in accordance with
the  terms  hereof  due  solely  to  the  passage  of  time), becomes effective.

1.18    "TERRITORY"  is  Brazil,  Colombia,  Venezuela,  Peru, Argentina,  Costa
Rica,  Guatemala,  El  Salvador,  Mexico and Spain (excluding any non-contiguous
possessions,  territories,  dependencies  or  protectorates  of such countries.)
1.19     "TRANSLATED  UNIT  ROYALTY  OR  TRANSLATED  UNIT  ROYALTIES",  for each
Translated Product, means the royalty paid by Distributor to Scholastic for each
Translated  Unit sold by Distributor thereof hereunder, determined in accordance
with  Section  7.1  and  Exhibit  A  hereof.
                         ----------

1.20    "WORK PRODUCT" means any and all results or proceeds of the services  of
Distributor,  and  of all persons and entities rendering services, in connection
with  any  promotional  materials,  Translated   Promotional   Materials  and/or
Translations  from the inception of Distributor's and such persons' or entities'
efforts  with  respect  thereto, in each case including all physical embodiments
thereof,  (as  such  term  is  defined in Section 6.1 hereof) and each and every
constituent  portion  and  element  thereof  (including  without  limitation all
original  designs,  artwork,  characters  and slogans) produced, by or on behalf
of Distributor.  Notwithstanding  the  foregoing,  Distributor  and  Scholastic
expressly  intend to exclude from this definition of Work Product, Distributor's
proprietary  trademark  and  logo  which  pre-exist  this  Agreement.

1.21    "TRANSLATED  STORYLINE  SCRIPTS"  means  the Spanish-language  storyline
scripts  supplied  to  Distributor  by  Scholastic  for  the following Products:
Chato's  Kitchen  and  Why  Mosquitoes  Buzz  in  People's  Ears.

1.22    "TRANSLATED  JEWEL-CASE UNIT"  means a single, shrink-wrapped package in
a  jewel  case  of a Translated Product containing one CD-ROM or Floppy Disk, as
applicable,  and  the  Translated  User Documentation without the box packaging.

1.23    "SCHOLASTIC  PURCHASE  PRICE",  for  each Translated Product, means  the
price at which Scholastic purchases a Translated Unit or a Translated Jewel-Case
Unit  thereof hereunder, determined in accordance with Section 7.7 and Exhibit B
                                                                       ---------
hereof.

<PAGE>
1.24    "SCHOLASTIC  ROYALTY  OR  ROYALTIES", for each Translated Unit or Trans-
lated  Jewel-Case  Unit, means the royalty paid by Scholastic to Distributor for
each  Translated  Unit  or Translated Jewel-Case Unit sold by Scholastic thereof
hereunder,  determined  in  accordance  with  Sections 3.5 and 7.8 and Exhibit B
hereof.

1.25    "SCHOLASTIC  TERRITORY"  means  worldwide  excluding  Brazil,  Colombia,
Venezuela,  Peru,  Argentina,  Costa  Rica,  Guatemala,  El Salvador, Mexico and
Spain.

1.26    "TRANSLATED  MASTER  DISCS"  means duplication-ready, compact  disc-read
only  memories  or  other  optical  media,  whether  now existing or hereinafter
devised, containing data that can be read, accessed or manipulated by optical or
laser  technologies  bearing  the  Translated  version  of  the  Product  titles
identified  in  Exhibit  A.

1.27    "TRANSLATED MASTER PRINT COMPONENTS" means camera-ready Translated  user
Documentation  and labels for the Translated Master Discs for the Product titles
identified  in  Exhibit  A  hereof.

1.28    "SCHOLASTIC  TRANSLATION  OR  TRANSLATIONS"  means the  Spanish-language
version  of  the  Units  that  has been translated by Scholastic and supplied by
Scholastic  to  Distributor  under  this  Agreement.

2.      TERM

2.1.    TERM.  The  term  of  this  Agreement shall commence upon the  Effective
Date  (provided that it has been executed and delivered by both parties hereto),
and  shall continue until March 31, 2002 unless terminated earlier in accordance
with  Section  16.1  or  Section  16.2  hereof  (the  "TERM").

2.2.    NO  RENEWAL.  Neither  party  shall be under any obligation to renew  or
extend  the  operation of this Agreement or to enter into any new agreement with
the  other  party  following the expiration of the Term.  Neither party shall be
under  any obligation of any kind whatsoever to the other party by reason of any
failure  or  refusal  to  renew  or extend the operation of this Agreement or to
enter  into  any new agreement with the other party, following the expiration of
the  Term.

3.      APPOINTMENT  AS  DISTRIBUTOR  AND  TERRITORY.

3.1.    GRANT  OF  RIGHTS.
        (a)    Subject to the terms and conditions of this Agreement, Scholastic
     grants  to  Distributor a non-exclusive right to Translate the products and
     Units  pursuant  to  Section 4, reproduce copies of the Translated Products
     and  Translated  Units  and  the  exclusive  right  to  advertise,  market,
     distribute  and  sell such Translated Units within the Territory and solely
     through  the  Permitted  Channels  during  the  Term.

        (b)    This  Agreement does  not  permit Distributor to, and Distributor
     shall  not,  under any circumstances, advertise, market, sell or distribute
     any  Translated  Unit (i) outside the Permitted Channels' (ii) in any other
     channel  or  market  (whether  labor,  business,  professional, industry or
     institutional),  (iii)  in  any  manner  where Distributor knows, or in the
     exercise  of  prudent  business  judgment  should  know, that such activity
     ultimately will result in the exporting of such Translated Unit outside the
     Territory,  (iv) to governmental or public benefit entities or authorities,
     or  (v)  in  "Duty  Free"  shops.

<PAGE>
        (c)    This  Agreement does not  permit  Distributor  to and Distributor
     shall  not  under  any  circumstances  without  Scholastic's  prior written
     approval  distribute  any  Translated  Product  other  than  as  individual
     stand-alone  Translated  Units,  in  each  case  with  all  packaging   and
     Translated  User  Documentation  intact   and   in  the  form  approved  by
     Scholastic.  Without  limiting  the  foregoing,  Distributor  is  expressly
     forbidden  from  distributing  any  Translated  Product  by  any  means  of
     electronic distribution or transmission (including without limitation, over
     the  Internet,  via  any  online  service  or  through television, cable or
     satellite) provided, however, Distributor may distribute Products hereunder
     when  Distributor  obtains  orders  therefore  from  the Internet when such
     orders  are  placed  by  customers  within  the  Territory  and  within the
     Permitted  Channels  and Distributor fulfills such orders by shipping Units
     within  the  Territory  and  Permitted  Channels  only.

        (d)    Distributor shall directly  distribute  to  sub-distributors  and
     End  Users  all  Translated  Units  authorized  for distribution hereunder.
     Distributor  acknowledges,  agrees  and  shall  ensure  that any  such sub-
     distributor  shall  be  obligated  to  comply with all of the terms of this
     Agreement.  Distributor  shall bear all costs of distribution of Translated
     Units  under  this  Agreement.

3.2.    NO  RIGHT TO REPRODUCE, MODIFY OR REVERSE ENGINEER.  Except as  provided
in  Sections  4.1  (a)  and for the Translations only, nothing in this Agreement
shall  be  construed  as giving Distributor any right to, and Distributor agrees
that  it  shall  not,  and  shall  not  permit  or assist any employee, officer,
director,  agent,  contractor,  parent, subsidiary, affiliate, joint venturer or
partner  of  Distributor (each a "DISTRIBUTOR AFFILIATE"), or any other party to
manufacture,  modify  or  adapt  all  or  any part of any Translated Unit, Unit,
Translated  Product  or  Product  or otherwise make copies of all or part of any
Translated Unit, Unit, Translated Product or Product onto any media (whether for
error  correction  or  other  License and as set forth above in Section 3.1 (a).
Distributor  agrees  that  it  shall  not,  and  shall  not permit or assist any
Distributor  Affiliate  or  other  party  to,  disassemble, decompile or reverse
engineer all or any part of any Product or Translated Product.  Without limiting
the  materiality of any other term of this Agreement, the failure of Distributor
to comply with the provisions of this Section 3.2 shall be considered a material
breach  of  this  Agreement.

3.3.    RESALE REQUIRED.  Distributor shall not, and shall not permit or  assist
any Distributor Affiliate or other party to, lend or rent any Unit or Translated
Unit to any other person or entity.  Distributor shall not, and shall not permit
or  assist  any Distributor Affiliate or other party to, use or display any Unit
or  Translated  Unit  in  any  manner  except in accordance with this Agreement.

3.4.    NO  CONFUSINGLY  SIMILAR  PRODUCTS.  Distributor recognizes  and acknow-
ledges  the  vital  importance  to  Scholastic  of  the  characters  and  other
proprietary  material  Scholastic  owns  and creates, and the association of the
Scholastic  name  therewith. In order to prevent the denigration of Scholastic's
property and the value of its association with the Scholastic name, and in order
to  ensure the dedication of Distributor's best efforts to preserve and maintain
that  value,  Distributor  agrees  that,  in  the Territory and during the Term,
Distributor  shall  not  advertise,  market,  sell or distribute any software or
other  materials  embodying  or  displaying any artwork, music, designs or other

<PAGE>
representation  which  Scholastic  determines, to be substantially similar to or
likely  to  cause  confusion  with  any  Scholastic Property or other Scholastic
proprietary  material.  Distributor shall not utilize the Scholastic name or the
names of any of the characters or other proprietary material owned by Scholastic
in  any  products  or  in  the  title  of  any  products owned or distributed by
distributor,  other  than  the  Translated  Products.

3.5.    RESERVED  RIGHTS.  All rights not specifically and expressly granted  by
Scholastic  to  Distributor are hereby reserved by Scholastic.  Without limiting
the foregoing, Scholastic reserves to itself and the other Scholastic Affiliates
the  right,  directly  or  through  third  parties,  to  manufacture,   package,
advertise,  market,  distribute or sell any Product or Units thereof through all
United  States  Department  of  Defense,  U.S.  Embassy  dependent  schools  and
programs,  American  schools  and  programs, International schools and programs,
American  schools  and  programs,  International  schools  and programs and U.S.
Military  schools  wherever  located; Scholastic Book Clubs, Scholastic Software
Clubs  and  Scholastic-branded Fairs in the School to Home Market and Scholastic
Affiliates  within  the Territory during the Term and to Translate such Products
or  Units.

Scholastic  reserves to itself and the other Scholastic Affiliates the exclusive
right,  directly  or  through  third  parties,  to  purchase  from   Distributor
Translated  Units  and Translated Jewel-Case Units at a per Translated Unit or a
per  Translated  Jewel-Case Unit price determined in accordance with Section 7.7
and  Exhibit  B  hereof,  and  to  advertise,  market and distribute or sell any
     ----------
Translated  Units  and  Translated  Jewel-Case  Units  thereof in the Scholastic
Territory  during  the  Term.

Scholastic  further  reserves to itself and other Scholastic Affiliates the non-
exclusive  right,  directly  or through third parties, to manufacture Translated
Programs  from  the  Translated Master Discs of the  Product  titles  identified
in Exhibit  A  and  the  non-exclusive  right  to  manufacture  Translated  User
   ----------
Documentation  from the Translated Master Print Components of the product titles
identified in Exhibit A and the exclusive right to advertise, market, distribute
              ---------
and sell such Translated Units solely within the Scholastic Territory during the
Term  paying to Distributor the Scholastic Royalty determined in accordance with
Section  7.8  and  Exhibit  B  hereof.
                   ----------

4.      TRANSLATIONS  AND  APPROVALS

4.1.    TRANSLATIONS.  Subject  to  Scholastic's  approval as set forth  herein,
all  Translations to the Products and Units done by or on behalf of Distributor,
including  but not limited to the Translated Products' titles, shall be faithful
and accurate with only such modifications to the Products as may be necessary to
achieve  a  competent  and  idiomatic translation.  Such modifications shall not
materially  change  the  meaning  or  otherwise  materially  alter the Products.
Distributor shall Translate the titles of the Products into Spanish and only use
such  Translated  titles.  Additions to abridgments of or other modifications in
the  text  or  Product title may be made only with the prior written approval of
Scholastic.  Distributor  shall use the text of the Translated Storyline Scripts
for  the  story  portions  of  the  Translated products, Chato's Kitchen and Why
Mosquitoes  Buzz  in  People's  Ears  only,  with  such usage being faithful and
accurate.  Distributor  shall  provide its own Translation of all other portions
of  the  Translated  Products  and  Translated  Units,  Chato's  Kitchen and Why
Mosquitoes  Buzz  in  People's  Ears.

4.2.    Materials  Submitted  for Scholastic's Review and Approval.  Subject  to
the  approval  of  Scholastic  as  set  forth herein, Distributor shall have the

<PAGE>
non-exclusive  right:  1)  to  place  its  logo  on  the Translated Products and
Translated  Units  on  the  front  cover of the packaging, the rear cover of the
packaging,  the  front  cover  of  the Translated User Documentation, the bumper
screen  of  the  Translated  Product,  the labels of the CD-ROMs or Floppy disks
containing  the  Translated  Products,  and Translated Promotional Materials (as
defined  herein)  and  2)  and  obligation to create and use the Translated User
documentation in connection with the Translated Units.  Distributor shall submit
copies  of  the  following  materials  for  Scholastic's prior written approval:
        (a)    all packaging, labels, advertising  and  Translated  Promotional
     Materials.
        (b)    All  Translated  user  Documentation and instructional materials.
        (c)    A  written functional specification of all purposed modifications
     to  the Products including but not limited to the Products' script, images,
     artwork,  navigation, menus, screens, animation, music, sound effects, game
     content  and/or  voices.
        (d)    A  written  statement  explaining all proposed revisions  to  the
     content,  style packaging and navigation of the Products, including but not
     limited  to  the  Products'  script,  artwork,  navigation, menus, screens,
     animation,  music,  sound  effects,  game  content,  and/or  voices.

        (e)    Functional  sample  screens,  including  any  bumper   or  credit
     screens.
        (f)    "Alpha  and  Beta Disks".  As used in this section,  "Alpha Disk"
     means  a  version  of the Translated Product in which all of the Translated
     Product's  components  are  present,  all  features  are  implemented,  all
     navigational  and  interface  issues  are resolved and all text and copy is
     written  and  in  final  form and any existing errors do not interfere with
     functionality;  "Beta  Disk  means  a  version of the Translated Product in
     which all of the Translated Product's features are implemented, all movies,
     sounds  and  Translated  Product's  features  are  implemented, all movies,
     sounds and other multimedia elements are complete, all final settings (such
     as  but  not  limited  to system requirements, extensions and fonts) are in
     place  and  all  "Material  Errors",  "Priority  1  Errors" and "Priority 2
     Errors"  have  been  corrected.  "Material Errors" means errors in software
     execution  that  cause  abnormal  termination  of  the functionality of the
     Translated  Product  on  the  computer;  "Priority  1 Errors" mean function
     errors that terminate execution of the Translated Product or force the user
     to  restart  the  user's  computer;  and "Priority 2 Errors" means function
     errors that do not force the user to quit the Translated Product or restart
     the computer, but prohibit 100% performance of the Translated Product. 4.3.
     SCHOLASTIC'S  APPROVAL. Scholastic shall use reasonable business efforts to
     provide  Distributor with such approval and/or disapproval on all submitted
     materials  within  fourteen  (14)  business days of Scholastic's receipt of
     such materials. All revisions, modifications, additions and Translations of
     the  Products shall be subject to the prior written approval of Scholastic,
     including  but  not  limited to Distributor's inclusion of its logo and the
     placement  thereof on the Translated Units. However, no submitted materials
     shall  be  deemed approved unless Distributor receives from Scholastic such
     approval  in  writing.

4.4.    EXPENSES.  All  expenses  associated with the Translations of the  Units
shall  be  borne  solely  by  Distributor.

<PAGE>
4.5     CREDITS.  Distributor shall Translate and reproduce all materials in the
Units,  including  but  not  limited  to  all  existing creative, performing and
production  credits  in  and  on  the Products and Units and in the packaging or
promotion  of the Units exactly as they appear in the Products and Units, unless
otherwise  instructed  by  Scholastic.  At  the  sole  discretion of Scholastic,
Distributor  shall  place  Scholastic's  name,  trademark,  and  logo,  and  all
applicable  notices  on  the  Translated  Units  where  appropriate,  subject to
Scholastic's  prior  written  approval.

5.      MARKETING  EFFORTS  AND  RELEASE  DATES.

5.1.    MARKETING COMMITMENT.  Distributor shall use best efforts to  vigorously
and  aggressively  advertise,  market,  distribute  and  sell  Translated  Units
throughout  the  Permitted Channels within the Territory and, in doing so, shall
ensure  that  its  marketing and advertising efforts are in accordance with high
quality  and  good taste and will be comparable to the highest quality marketing
efforts  in  the  Territory  for  competitive  products.  All Translated Product
selections,  catalog placements, advertising (including catalogs), marketing and
publicity  and  every  association of Distributor with Scholastic (including any
reference  to  the  "Scholastic"  name  and  any Scholastic character), shall be
subject  to Scholastic's prior written approval in accordance with the procedure
for  the  approval  of Translated Promotional Materials set forth in Section 6.1
hereof.  Distributor  shall  submit a marketing plan to Scholastic no later than
November  1,  2000.

5.2.    PRODUCT  MANAGER.  At  all  times  during  the  Term, distributor  shall
provide  Scholastic  with a "Product Manager" who shall be primarily (though not
exclusively)  dedicated to the Translated Products and who shall be satisfactory
to Scholastic.  The Product Manager shall be a designated individual employee of
distributor  who  shall  be available to Scholastic during Distributor's regular
business  hours.   The  Product  Manager  shall  maintain  continuous,  but  not
necessarily  daily,  contact with such personnel of Scholastic as Scholastic may
from time to time designate, shall be fully familiar with Scholastic's method of
operation in general and the Scholastic Products in particular, shall coordinate
the  performance  by  distributor  of  its obligations under this Agreement, and
shall promptly respond to all Scholastic inquiries, both oral and written.  GENE
ABBADESSA  is hereby initially appointed by Distributor and is deemed reasonably
satisfactory  by  Scholastic,  as  the  Product  Manager.  The Product Manager's
contact  at  Scholastic  for all issues related to the Translated Products or to
this  Agreement  shall initially be the DIRECTOR, INTERNATIONAL MARKETING, ALEEN
STEIN,  or  such  other  person  as  named  by  Scholastic.

5.3.    MARKETING  PRACTICES.  Distributor  shall  (a)  conduct  business  in  a
manner that reflects favorably at all times on the Translated Units and the good
name,  goodwill and reputation of Scholastic; (b) avoid deceptive, misleading or
unethical  practices  that  are  or  might  be  detrimental  to  Scholastic, and
Translated  Product  or the public, including, but not limited to, disparagement
of  Scholastic  or  any  Translated  Product;  (c)  make  no false or misleading
representations  with  regard  to  Scholastic or any Translated Product; (d) not
publish  or  employ  or  cooperate  in  the  publication  or  employment  of any
misleading  or  deceptive  advertising  material;  (e)  make no representations,
warranties  or guaranties to anyone with respect to the specifications, features
or capabilities of any Translated Product that are inconsistent with its related
Translated  User  Documentation or any literature distributed by Scholastic; and

<PAGE>
(f)  not  engage in illegal or deceptive trade practices such as bait and switch
techniques  or  any  other  practices  proscribed  hereunder.

5.4.    RELEASE  DATE.  Distributor shall release for sale the Translated  Units
in  the  Territory  on  the following date (the "RELEASE DATE"):  by December 1,
2000.

6.      PROMOTIONAL  RIGHTS.

6.1     Subject  to Section 4.2 above, Scholastic hereby grants to Distributor a
non-exclusive  license  to: 1) Translate and reproduce the Scholastic Properties
and  create  Translated  User  Documentation solely for use within the Territory
during  the Term in advertising and promotional  materials  in  connection  with
the Translated  Units,  (advertising  and  promotional  materials  incorporating
Scholastic  Properties  are  referred  to collectively herein as the "Translated
Promotional  Materials",  and 2) use Translated User Documentation in connection
with  the  Translated Units; provided however, that Distributor shall submit the
Translated Promotional Materials and Translated User Documentation to Scholastic
for  its  written  approval prior to any use thereof.  Distributor shall procure
Scholastic's  approval  of  Translated Promotional Materials and Translated user
Documentation  in  two  steps:  first,  when  Distributor has put the Translated
                                -----
Promotional  Materials  in  rough  or story board format and the Translated User
Documentation  in  rough  draft;  and  second,  when  Distributor  has  put  the
                                       ------
Translated  Promotional  Materials  and  Translated  User Documentation in final
form.  Printed  matter  submitted  to Scholastic for approval hereunder shall be
submitted  with  two  (2)  additional  copies  thereof.  If  Scholastic provides
Distributor  with  forms  for  use  in  the submission of Translated Promotional
Material  and/or  Translated  User  Documentation approval requests, Distributor
shall  use  the  same.  Scholastic  shall  endeavor  to  provide  its  approvals
or  disapprovals  of  Translated   Promotional  Materials  and  Translated  User
Documentation  submitted at each step reasonably promptly; provide however, that
all  Translated  Promotional  Materials  and  Translated  User documentation not
approved  in  writing by Scholastic within ten (10) days of Scholastic's written
receipt  of  Distributor's  request  for  approvals shall be deemed disapproved.
Scholastic's  approval  or  disapproval   of  Translated  Promotional  Materials
submitted  at each step shall be in Scholastic's sole discretion, and the use of
unapproved  Translated Promotional Materials or Translated User Documentation is
strictly  prohibited.  Translated  Promotional  Materials  and  Translated  User
Documentation  not  approved by Scholastic in writing shall be deemed unlicensed
and  shall  not  be  utilized.   During  the  Term,  Distributor  shall  provide
Scholastic  with  such  reasonable  quantities  of  samples  of  the  Translated
Promotional  Materials  to  the extent it exists in final form as Scholastic may
from  time  to  time  request  and  at  no  expense  to  Scholastic.

6.2     All  costs  of  all  advertising  and  promotions  shall   be  borne  by
Distributor.  At  Distributor's  request,  Scholastic  may (in Scholastic's sole
discretion) support the creative production of Translated Promotional Materials,
such as providing art and copy.  Scholastic may from time to time make available
for  purchase  by  Distributor  point-of-sale  materials  and  promotional items
prepared by Scholastic.  If Distributor elects to purchase such materials and/or
items  for  use  in  connection  with its promotional efforts for the Translated
Products,  the  cost thereof shall be paid by Distributor  upon  being  invoiced
by  Scholastic.   Upon  such  purchase,  such  point-of-purchase  materials  and
promotional  items  shall  be  deemed "Translated Promotional Materials" for all
purposes  of  this  Agreement  except  the  approval requirements of Section 6.1
hereof.

<PAGE>
6.3     Distributor  shall obtain prior written approval, not to be unreasonably
withheld,  of  Scholastic   regarding   any  promotional  activity  relating  to
Translated Units or Translated Products and shall not, without Scholastic's sole
discretion),  sell  or  otherwise  provide  any Translated Unit for use in fund-
raisers, sweepstakes, contests or similar activities or provide Translated Units
for  use  as  prizes,  premiums  or  give-aways.

6.4     Distributor  shall  not  utilize the Translated Promotional Materials or
any  part  thereof  in  connection  with any Products or services other than the
Translated  Units  or  solely  to  promote Distributor and, without limiting the
materiality  of any other Term of this Agreement, such use shall be considered a
material  breach  of  this  Agreement.

6.5     In  designing  and  implementing   Translated   Promotional   Materials,
Distributor shall be entitled, subject to the other provisions of this Section 6
and  to  the provisions of Sections 12 and 13 hereof, to use such trademarks and
trade  names  as  are  provided  by  Scholastic to distributor for this purpose;
provided  that  (a)  Distributor  shall  not  create  a  unitary  composite mark
involving  any  such trademark or trade name and (b) Distributor agrees that all
use  of  such  trademarks  and trade names shall inure to the benefit, and be on
behalf,  of  Scholastic.

7.      CONSIDERATION  AND  PAYMENT.

7.1.    TRANSLATED  UNIT  ROYALTIES.  During the Term, Distributor shall pay  to
Scholastic  the  Translated Unit Royalty rate as set forth on Exhibit A attached
                                                              ---------
hereto.

7.2.    PAYMENT  FORMS.  All payments due hereunder shall be made within  thirty
(30)  days  of  Distributor's  sale via check sent to Scholastic Inc., New Media
Division  Finance  Department, 555 Broadway, New York, New York 10012 Attention:
Scott  Lennett.  However,  Scholastic  may change such recipient of all payments
due hereunder, by providing Distributor with written notice of such change.  All
payments  shall  be  made  in  Dollars,  free  of  any currency control or other
restriction.  Where applicable, the currency exchange rate for any payment shall
be  calculated  as  of  the  applicable  due  date  therefor.

7.3.    SALES  REPORTS.  Within  ten  (10)  days after the end of each  calendar
month  during  which  any  Translated  Units are sold, Distributor shall provide
Scholastic  with  a  written report setting forth, for the applicable month, the
number  of  Translated  Units  of  each  Translated  Product  sold.

7.4.    AUDITS.  Distributor  agrees  to  keep and preserve, for at least  three
(3)  years  after  the  Termination  Date,  accurate records of all transactions
relating  to  this  Agreement.  In particular, Distributor shall ensure that all
its  records shall identify the Translated Units separately from other goods not
licensed  hereunder.  At all times during the Term and for a period of three (3)
years thereafter Scholastic and its agents, employees, and representatives shall
have  the right, at any time during Distributor's normal business hours and upon
reasonable  prior  to notice to Distributor, to examine and make extracts of all
such  records,  including  invoices,  book  of  account,  computer  and database
information,  and documents,  correspondence  and  other records  that relate to
the  sale  and  distribution  of  Translated  Units. All information obtained by
Scholastic  as  a  result  of  any  audit  pursuant to this Section 7.4 shall be
subject  to  the  confidentiality  restrictions  set forth in Section 14 hereof.

<PAGE>
7.5.    DISTRIBUTOR TO DETERMINE ITS OWN RESALE PRICES.  Distributor is free  to
determine  its  own  resale  prices for Translated Units unilaterally.  Although
Scholastic  may  publish suggested wholesale or retail prices for any Translated
Unit,  these  are  suggestions  only  and  Distributor shall be entirely free to
determine  the  actual  prices  at  which Translated Units are to be sold to its
customers.  Each  party  understands that neither Scholastic nor any employee or
representative  of  Scholastic  may  give  any  special  treatment (favorable or
unfavorable) to Distributor as a result of its selection of prices.  No employee
or  representative  of  Scholastic nor anyone else associated or affiliated with
Scholastic  has any authority to tell Distributor what its prices for Translated
Units  must  be  or  to inhibit in any way Distributor's pricing discretion with
respect  to  Translated  Units.

7.6.    TAXES.  Distributor  shall  be  solely  responsible  for any  applicable
sales,  use  value,  added  or  other  tax, tariff, duty or assessment levied or
imposed  (including without limitation any withholding thereof which Distributor
may  be required to make or collect on payments to Scholastic hereunder) arising
out  of  or related to any of the transactions contemplated under this Agreement
(including  without  limitation the distribution of the Translated Units and, if
applicable,  the  production and manufacture of Translated Units thereof), other
than  any tax based on Scholastic's net income in the U.S. Distributor shall pay
directly,  or  reimburse  or  gross-up Scholastic for, the amount of such sales,
use, value added or other tax, tariff, duty or assessment which Scholastic is at
any  time  obligated  to  pay  or  collect.  Distributor  shall promptly furnish
Scholastic  with  the  official receipt of any payment of such sales, use, value
added or other tax, tariff, duty or assessment by Distributor to the appropriate
taxing  authority.  Upon  Scholastic's  request therefor, Distributor shall also
provide Scholastic with copies of resale certificates or  other  documents  evi-
dencing  to Scholastic's reasonable satisfaction any exemption which Distributor
claims  from  any  sales,  use,  value  added  or  other  tax (including without
limitation  any  withholding  tax),  tariff,  duty or assessment that Scholastic
reasonably  determines it would have to pay or collect arising out of or related
to  any  of the transactions contemplated under this Agreement in the absence of
such  an  exemption.

Distributor  shall  take out and file the appropriate withholding taxes with the
appropriate  taxing  authorities for the monies paid to Scholastic hereunder and
provide  Scholastic  with  a  receipt  and proof of payment of all such filings.

7.7.    SCHOLASTIC  TRANSLATED  UNIT  AND  TRANSLATED  JEWEL-CASE UNIT  PURCHASE
PRICE.  During the Term, Scholastic may purchase Translated Units and Translated
Jewel-Case  Units  from  Distributor  for  distribution  through  the Scholastic
Territory  at  a  per  Translated Unit or a per Translated Jewel-Case Unit price
determined  in  accordance  with  Exhibit  B  hereof.
                                  ----------

7.8.    SCHOLASTIC  ROYALTIES.  During  the   Term,   Scholastic  shall  pay  to
Distributor  the  Scholastic  Royalty  rate  as  set forth on Exhibit B attached
                                                              ---------
hereto  for Translated Units and/or Translated Jewel-Case Units that are created
by Distributor and do not incorporate Scholastic translations.  Scholastic shall
not  pay  Scholastic  Royalties  on the following Translated Units and/or Trans-
lated  Jewel-Case  Units,  which  will be created using Scholastic Translations:
Usborne's Animated First Thousand Words and I'm Ready for Kindergarten: Huggly's
Sleepover.

8.      MINIMUM  GUARANTEE,  SELL-OFF  AND  DESTRUCTION.

<PAGE>
8.1.    MINIMUM GUARANTEE. Distributor shall pay Scholastic eighty thousand five
hundred  dollars  ( $80,500.00)  as  a  non-refundable,  recoupable,  non  cross
collateralized Minimum Guarantee which is recoupable against the Translated Unit
Royalties (the "MINIMUM GUARANTEE"). Distributor shall pay the Minimum Guarantee
to  Scholastic  as  follows:  (a) thirty-eight thousand five hundred twenty-five
dollars  ($38,525.00)  for  the  Translated  Units  I'm  Ready for Kindergarten:
Huggly's  Turtle  Rescue,  I'm  Ready  for  Kindergarten:   Huggly's  Sleepover,
Scholastic  SuperPrint  Deluxe,  Math  Shop Deluxe, and Usborne's Animated First
Thousand  Words  upon  mutual execution of this Agreement; (b) eighteen thousand
nine  hundred  seventy-five  dollars  ($18,975.00)  for the Translated Units I'm
ready  for  Kindergarten:  Huggly's  Turtle  Rescue, I'm Ready for Kindergarten:
Huggly's Sleepover, Scholastic SuperPrint Deluxe, Math Shop Deluxe and Usborne's
Animated  First  Thousand  Words  on  or  before  February  1, 2001; (c) fifteen
thousand  four hundred ten dollars ($15,410.00) for the Translated Units Chato's
Kitchen  and Why Mosquitoes Buzz in People's Ears on or before November 1, 2001;
and  (d)  seven  thousand  five  hundred  ninety  dollars  ($7,590.00)  for  the
Translated  Units Chato's Kitchen and Why Mosquitoes Buzz in People's Ears on or
before  March  1,  2002.

8.2.    SELL-OFF,  REPURCHASE OR DESTRUCTION.  Scholastic reserves the right  to
buy  back,  as  of  the Termination Date, any excess, unsold Translated Units in
Distributor's  inventory,  at  Distributor's  cost  or  instruct  Distributor to
destroy such Translated Units and provide Scholastic with an affidavit attesting
to  the  destruction  of such Translated Units.  For any inventory of Translated
units  that Scholastic did not buy back or have Distributor destroy, Distributor
may  sell  such Translated Units from such inventory solely within the Territory
provided that such sales are made by within three (3) months of such termination
date  and  provided  further  that this Agreement expired in accordance with its
terms  solely due to the passage of time and Distributor has fully complied with
the  terms  of this Agreement.  This Section is expressly subject to Section 2.2
above.

9.      PRODUCT  AVAILABILITY  AND  PRODUCT  CHANGES.

9.1     Without  further  obligation  to  Distributor  of  any  kind whatsoever,
Scholastic  reserves  the  right  in  its  sole  discretion  at  any time to (i)
discontinue  the  production,  distribution  or  licensing of any Product and/or
Translated  Product;  (ii)  change  the  design or specifications of any Product
and/or  Translated  Product  and any part thereof; and (iii) change its service,
warranty  or  other  policies  regarding  any Product and/or Translated Product.
Scholastic agrees to attempt to consult with Distributor prior to the occurrence
of any event indicated in the  preceding  sentence.  However,  Distributor  ack-
nowledges  that  Scholastic's  ability  to  so  consult  with Distributor may be
limited by competitive, marketing  and other  factors  (including  without limi-
tation  trade  secret and confidentiality concerns), and accordingly agrees that
Scholastic  shall not be liable in any respect should Scholastic fail to consult
with  Distributor  prior  to actually taking any action that results in any such
event.  Notwithstanding  the  foregoing,  Scholastic shall notify Distributor in
writing  no  later than thirty (30) days after the occurrence of any such event.
Within  thirty  (30)  days  after  its receipt of such notice, Distributor shall
adjust  its  marketing  and  distribution activities permitted hereunder to take
into  account such event. Distributor agrees to execute an amendment or addendum
to  this  Agreement  relating  to  any  of  the  foregoing, to the extent deemed
necessary  or  appropriate  by  Scholastic.

<PAGE>
9.2     Although  Scholastic  may  consider  requests  from  Distributor  to add
additional Scholastic Products to Exhibit A during the Term, the addition of any
                                  ---------
such additional Scholastic product shall be determined by Scholastic in its sole
discretion  and  Scholastic shall have no obligation whatsoever to make any such
additional  Scholastic  product available to Distributor for the purpose of this
Agreement.  The  addition  any  such  additional Scholastic product to Exhibit A
                                                                       ---------
hereto,  if  Scholastic  is  prepared to agree to the same, shall be conditioned
upon  Scholastic  and  Distributor  agreeing to mutually acceptable arrangements
with respect to such additional Scholastic product (including without limitation
the applicable Translated Unit Royalties for such additional Scholastic product)
and  the  execution by Scholastic and Distributor of an amendment or addendum to
this  Agreement  setting  forth  the  relevant  details  with  respect  thereto.

10.     TRANSLATED  PRODUCT  SUPPORT.

10.1.   RESPONSIBILITY GENERALLY.  Distributor will manage all customer  service
matters  concerning the sale, installation and use of Translated Products and/or
Translated  Units.

10.2.   TRANSLATED  PRODUCT  EXPERTISE.   Distributor  and  its  staff shall  be
conversant  with  the  Translated  Products  and  similar  software  Products in
general,  and  shall  develop  sufficient  knowledge  of  the  industry,  of the
Translated  Products  and  of  Products competitive with the Translated Products
(including  specifications,  features  and benefits) so as to be able to explain
the  Translated  Products  in  detail  to  End  Users  and  potential End Users.
Distributor  shall conduct or provide for any training of its personnel that may
be  necessary  to  impart  such  knowledge.

10.3.   TRANSLATED  UNIT  RETURNS.   Distributor  agrees  to  honor  any  refund
requests  received  from  End  Users  pursuant  to  the  terms of the applicable
Translated  Unit  warranty.  Distributor may return any such returned Translated
Unit  to  its  inventory  if  the  Translated  Unit  is  in  salable  condition.
Distributor shall instruct End Users to make all refund requests with respect to
Translated  Units  sold  by  Distributor  directly  to  Distributor  and  not to
Scholastic.

10.4.   NOTIFICATION  OF CLAIMED OR SUSPECTED DEFECTS.  No later than  ten  (10)
days  after  Distributor  learns of the same (whether directly or through an End
User),  Distributor  shall  notify  Scholastic  in  writing  of  any  claimed or
suspected defect in any Translated product.  DISTRIBUTOR SHALL HAVE THE RIGHT TO
CORRECT  ANY  SUCH  DEFECT,  AND  Scholastic  MAKES  NO  WARRANTY,  AND  HEREBY
SPECIFICALLY  DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, THAT ANY SUCH DEFECT
BROUGHT  TO  ITS  ATTENTION  WILL  BE  CORRECTED.

10.5.   ONLINE  INFORMATION.  Subject to Sections 3.1 (c) and  6.1,  Distributor
shall  have  the  right to provide information regarding the Translated Products
for  customer  service  and  information  purposes only, on an Internet Web page
owned  by  Distributor (or such other equivalent network system now or hereafter
developed)  ("On-line  information").  Notwithstanding anything to the contrary,
Distributor shall have no right under this Agreement to solicit or accept orders
for  any  Translated  Products  and/or  Translated  Units through the use of any
On-line  Information,  except  as  specified  in  Section  3.1(c)  herein.

11.     OWNERSHIP  OF  PROPRIETARY  RIGHTS.

<PAGE>
11.1.   Except  as  specifically  and clearly granted herein, it  is  understood
that Scholastic s not granting to Distributor, and Distributor does not acquire,
by  the  operation of this Agreement or otherwise, any right to, or interest in,
the name "Scholastic" or any derivation of the name "Scholastic", any Scholastic
Property  or  any  Intellectual  Property  Right  of  any  Scholastic Affiliate.

11.2.   Except  as  specifically  and  clearly  set  forth  in  this  Agreement,
nothing  herein,  nor  the exercise of any rights granted Distributor hereunder,
conveys to Distributor, and Distributor shall not have or acquire, and shall not
purport  to  have  or  acquire,  whether  for  any  platform or in any format or
otherwise,  any  Intellectual  Property  Rights  or any other right, interest or
title  to any Product, Unit, Translated Product or Translated Unit.  Distributor
agrees  that  it  shall  not  at any time assert or claim any interest in, or do
anything  that  may  adversely  affect  the  validity  or enforceability of, any
Intellectual Property Right belonging to or licensed by Scholastic.  Distributor
acknowledges  and  agrees  that  Scholastic  is  the  creator  and author of the
Products  and Translated Products and all Intellectual Property Rights and every
other  right,  interest  and  title  therein,  including  without limitation the
copyrights  (and  all  renewals  and  extension  thereof)  in and to each of the
foregoing,  are  and  shall  be  the  Property  of  Scholastic.

11.3.   As  between  Scholastic  and  Distributor, Scholastic retains all Intel-
lectual  Property  Rights  in  and  to  the  Products, the Units, the Translated
Products, the Translated Units, Translated Promotional Materials and any and all
Materials  that may be provided by Scholastic, and Distributor shall not have or
acquire, and shall not purport to have or acquire, any right, title, or interest
in  any of the foregoing, Distributor agrees that any and all Work Product shall
be  deemed  produced, specially ordered and commissioned at Scholastic's request
and  direction,  and  shall  be  considered  works-made-for-hire for Scholastic.
Scholastic,  its  successors,  privies  and  assigns,  shall exclusively own all
Intellectual Property Rights, in perpetuity and in all languages, embodied in or
pertaining  to all Work Product and all Derivative Works, and Distributor hereby
makes  a  full,  irrevocable, present assignment and transfer, in perpetuity, to
Scholastic  of  (a)  all  such  Intellectual Property Rights, (b) all contracts,
agreements,  assignments,  licenses,  documents  and/or  instruments pursuant to
which  Distributor  may  have  heretofore acquired or may hereafter acquire such
Intellectual  Property Rights, and (c) all releases, warranties, indemnities and
undertakings  acquired  by Distributor in connection with Distributor's services
with  respect  to any Work Product. Distributor acknowledges that there are, and
may  be  future  Rights  that  Distributor may otherwise become entitled to with
respect  to  any  Work  Product or any Derivative Work that do not yet exist, as
well as new uses, media, means and forms of exploitation throughout the universe
employing  current  and/or  future  technology  yet to be developed; the parties
specifically  intend  the  foregoing  full,  irrevocable,  present and perpetual
assignment  and  transfer  of Rights to Scholastic to include all such now known
and  unknown  uses,  media,  means  and  forms  of  exploitation, throughout the
universe.

11.4.   Nothing  herein,  nor  the  exercise of any Rights  granted  Distributor
hereunder,  conveys  to  Distributor, and Distributor shall not have or acquire,
and shall not purport to have or acquire, any Intellectual Property right or any
other  right or title to, or interest in, any Product, Translated Product or any
part  or  aspect thereof (including without limitation any Scholastic Property),
any  Work  Product or any Derivative Work.  Distributor agrees that it shall not
at  any  time  during  or  after the Term assert or claim any interest in, or do

<PAGE>
anything  that  may  adversely  affect  the  validity  or enforceability of, any
Intellectual  Property  Right  belonging to or licensed by Scholastic (including
any  act,  or  assistance  to  any  act,  which  may  infringe  or  lead  to the
infringement  of  any such right in any Work Product).  In the event Distributor
has  any  Intellectual  Property  Rights  in  and  to  any  Work  Product or any
Derivative Work that cannot be assigned or transferred to Scholastic as provided
above, Distributor hereby unconditionally waives, and agrees not to assert, such
Rights  (including  without  limitation  any and  all  moral  Rights,  including
any right  to  identification  of  authorship or any  limitation  on  subsequent
modification).  Distributor  also  shall procure that each person and entity who
contributes  to  any  Work  Product or any Derivative Work wave and agree not to
assert  any  such Rights (including without limitation any and all moral Rights,
including  any  right  to  identification  of  authorship  or  any limitation on
subsequent  modification  that  such  person or entity may have therein.  In the
event  Distributor  has  any  Intellectual  Property  Rights  in and to any Work
Product  or  any  Derivative  Work  that  cannot  be  assigned or transferred to
Scholastic  as provided above and cannot be so waived, Distributor hereby grants
to  Scholastic  an  irrevocable,  exclusive,  worldwide, royalty-free license in
perpetuity to exercise all Intellectual Property Rights in and to the foregoing.

11.5.   Scholastic  shall be deemed the creator and author of all  Work  Product
and  all  Intellectual Property Rights and every other right, interest and title
therein  shall be the Property of Scholastic when produced.  Scholastic shall be
entitled  to  full ownership of the original and all copies of all Work Product.
Distributor  acknowledges  that  Scholastic  may  register  in  the Territory or
elsewhere  the copyright for any Work Product or any Derivative Work thereof now
existing  or  hereafter developed in any and all media, or delivered through any
and  all  means of delivery, now known or hereafter conceived or created, in its
own  name or that of any of its designees for the full  term  of  copyright  and
all renewals  and  extensions  thereof.  Scholastic  may utilize, distribute and
otherwise exploit in any manner any Work Product and derivative Work thereof now
existing  or  hereafter  developed  without  any  royalty or other obligation to
Distributor.

11.6.   Scholastic  shall  have the sole and exclusive right to  possession  and
custody of all Work Product and Materials provided by Scholastic.  Possession by
Distributor  or  any  third  party  of  any Work Product or any such material is
solely  for  the  purpose  of  fulfilling  Distributor's  obligations under this
Agreement  and  in  now  way  shall  be deemed or construed to grant, license or
otherwise  convey  any  Rights to Distributor or any other party in the same, by
any  means, including without limitation, any insolvency, creditor or other laws
of  any jurisdiction.  Scholastic may at any time require Distributor to deliver
to  Scholastic  or  its  designee  any or all Work Product,  in  whatever  state
of completion,  or  any  Materials  provided  by  Scholastic.  Upon  receipt  of
Scholastic's written request therefore, Distributor shall immediately deliver to
Scholastic  or its designee such originals or copies of such Work Product or any
such  material  as Scholastic shall have indicated in such request.  Distributor
retains  no Rights to use any Work Product or any such material and agrees not o
challenge  the  validity  of  the  ownership by Scholastic of Rights therein and
shall  promptly  deliver the same to Scholastic upon completion of Distributor's
services  under  this  Agreement.  Distributor  further agrees that at all times
during  the term, Scholastic and its agents, employees and representatives shall
have  the right, at any time during Distributor's normal business hours and with
prior  notice  to  Distributor, to enter Distributor's premises in order to take
repossession  of  all  Work Product and all Materials provided by Scholastic, in
which case Distributor shall forthwith surrender to Scholastic such Work Product
and  such  Materials.

<PAGE>
11.7.   Distributor  shall,  and  shall  cause  every party acting under  it  in
relation  to  this Agreement to, execute any and all documents and do such other
acts  requested  at  any  time  by  Scholastic  as  may be required to evidence,
perfect,  confirm and/or further effect the Rights granted Scholastic under this
section  11.  in  the  event  Distributor  fails to execute and deliver any such
documents  and  instruments  promptly  upon  request  therefore  by  Scholastic,
Scholastic  is  hereby  authorized  and  appointed  attorney-in-fact  of and for
Distributor  to  make,  execute  and  deliver  any  and  all  such documents and
instruments, it being understood that such power is coupled with an interest and
is  therefore  irrevocable.

12.     PROTECTION  OF  PROPRIETARY  RIGHTS.

12.1.   Distributor  shall  implement  adequate  control  measures   to  protect
Scholastic's  Intellectual  Property  Rights  and  to  cooperate in Scholastic's
efforts  to  protect  such  Intellectual  Property Rights.  Without limiting the
foregoing,  Distributor  shall  maintain  all Units, Translated Units, Products,
Translated Products, Promotional Materials, Translated Promotional Materials and
any  Materials  provided  by Scholastic hereunder in a safe and secure condition
and  shall  take commercially reasonable measures to ensure adequate security at
its  facilities  to  prevent unauthorized duplication, loss or theft of any such
Unit,  Translated  Unit,  Product,  Translated  Product,  Promotional Materials,
Translated  Promotional  material  or any other material provided by Scholastic.

12.2.   Scholastic  shall  provide Distributor with appropriate notices of copy-
right  in Scholastic's name, and Distributor shall place,  in  such  manner  and
form  as  Scholastic  shall  direct,  such  copyright  notices on all Translated
Promotional  Materials.  In  no  event shall Distributor alter, remove, obscure,
erase  or  deface  or  otherwise  hide  from view, any such notices or any other
copyright,  trademark or other proprietary Rights notice of scholastic contained
on  or incorporated in any Translated Promotional material, any Translated Unit,
or  any  other  material  provided  by  Scholastic.

12.3.   Distributor shall not do any act or omit to take any act or  permit  any
act  to  be  taken or not to be taken that would cause any Product or Translated
Product  to  vest  in  the  public  domain anywhere in the territory, and if any
notice  shall be necessary to protect  any of Scholastic's Intellectual Property
Rights  in  any  Product or Translated Product, Distributor shall, in accordance
with  and subject to the provisions of section 6 hereof, cause such notice to be
affixed to each Translated Unit thereof there circulated, in accordance with the
terms  of  all  pertinent  domestic  and international conventions pertaining to
Intellectual  Property  Rights.

12.4.   This  Agreement  only  grants  to  Distributor  a  license  to  transfer
Translated  Units  to  end  users,  and  does  not transfer any right, title, or
interest  in  or  to any Unit, Translated Unit, Product or Translated Product to
Distributor,  or  any  Distributor Affiliate.  Notwithstanding any "purchase" or
"sale"  or  similar language contained herein, Distributor acknowledges that the
Translated  Units  are  licensed  as  indicated  in  this  section  12.4.

13.     LITIGATION.

Distributor  shall  promptly report to Scholastic (a) any infringement of any of
Scholastic's  Intellectual  Property  Rights by any Distributor Affiliate or any

<PAGE>
other person or entity, (b) any infringement by any such person or entity of any
right  granted  to  Distributor  hereunder  and  (any  unauthorized  copying  or
distribution  of any Product, Translated Product, Unit or Translated Unit or any
component  thereof  (including without limitation any artwork or music contained
therein)  by  any such person or entity. Scholastic may, in its sole discretion,
undertake  to  prosecute  necessary  actions to prevent such infringement or any
unlicensed  or  unauthorized  distribution.  In  the  event Distributor shall be
joined  in  any such litigation, the decisions of the counsel of Scholastic with
reference  to  matters  of  procedure,  conduct  of  such  litigation and/or the
handling  thereof, shall prevail and Distributor shall cooperate with and assist
Scholastic's  counsel.  Any  recovery  shall be the sole property of Scholastic.

14.     CONFIDENTIAL  INFORMATION

14.1.   Confidential   Information   Defined.   Both  parties  may,  under  this
Agreement,  have  access  to and acquire knowledge from, material, data, systems
and  other  information  concerning  the operation, business, financial affairs,
products,  customers  and  Intellectual  Property Rights or other aspects of the
other  party that may not be accessible or known to the general public (referred
to  herein  as  "CONFIDENTIAL  INFORMATION").  'Confidential  Information"  also
includes  (the  terms  of  this Agreement and the fact of its existence and (any
information  or  materials  that  either party obtains from any third party that
such  party  treats  as  proprietary  or designates as Confidential Information,
whether  or not owned by such party. "Confidential Information" does not include
information that either party can document in reasonable detail and to the other
party's satisfaction: (i) is known by the receiving party at the time of receipt
from  the  other  party and is not subject to any other non-disclosure agreement
between  the  parties; (ii) is now, or hereafter becomes, generally known to the
industry through no fault of the receiving party; or (iii) is otherwise lawfully
and  independently developed by the receiving party, or lawfully acquired from a
third  party  without  any  obligation  of  confidentiality.

14.2.   NO  DISCLOSURE.  Any Confidential Information acquired by  either  party
shall  not  be  used, published or divulged by such party to any other person or
entity  in  any  manner  whatsoever  without the prior clear and express written
approval of the other party, which approval other party may withhold in its sole
discretion.

The existence of this Agreement and such details regarding its subject matter as
are  reasonably  necessary  to  permit  performance of Distributor's obligations
hereunder  may be disclosed by Distributor to persons and entities to be engaged
by  Distributor  in  connection with its services under this Agreement; provided
however,  prior  to any such engagement Distributor shall cause each such person
and  entity  to  sign  an  employment  or  nondisclosure agreement that contains
provisions in substance similar to those included in this Section 14 prohibiting
the  further  disclosure  and  use  by such person or entity of any Confidential
Information.  Distributor  agrees  to  deliver  copies of all such agreements to
Scholastic  upon  request.  Distributor  shall,  and  shall cause its employees,
agents  and  every  other  person  and  entity it  employs  in  connection  with
its  services  under  this  Agreement to, protect and safeguard the Confidential
Information  by  using  the  same  degree of care, but no less than a reasonable
degree  of  care,   to  prevent  the  unauthorized  use  or  disclosure  of  the
Confidential  Information as Distributor uses to protect its own confidential or
proprietary  information  of  a  like  nature.  In the event that Distributor is
directed  by court order  to  disclose  any portion of any Confidential Informa-
tion  or  any  other  materials  proprietary to Scholastic in  conjunction  with
a  governmental  or  judicial  proceeding  or  arbitration,   Distributor  shall
immediately  notify Scholastic both orally and in writing. Distributor agrees to

<PAGE>
provide  Scholastic  with  reasonable  cooperation and assistance in obtaining a
suitable  protective  order  and  in  taking any other steps to  preserve confi-
dentiality.  Upon  any  termination  or  expiration  of  this  Agreement or upon
Scholastic's  request,   Distributor  shall  immediately  return  all  materials
embodying  Confidential  Information  to  Scholastic. Without limiting any other
non-disclosure  obligation  of Distributor or any other rights and remedies that
Scholastic  may have under this Agreement, Distributor specifically acknowledges
that  Distributor's  disclosure of amounts payable to Scholastic hereunder could
have a detrimental effect on Scholastic's business, the extent of which could be
difficult,  if  not  impossible  to  establish  and  that any disclosure of such
information  by  Distributor  in violation of the terms hereof shall be deemed a
material  breach  of  this  Agreement.

14.3.   PUBLISHED  REPORTS.  Without limiting the generality of any of the fore-
going,  the  parties specifically agree that any reports concerning Confidential
Information  that  are  not  made  or  authorized  by Scholastic and that appear
publicly  prior  to  Scholastic's  official  disclosure  of  such  Confidential
Information  shall  not  release Distributor from its obligations hereunder with
respect  to  such  Confidential  Information.

14.4.   NO  CONFIDENTIAL  INFORMATION OF OTHER PARTIES.  Distributor  represents
and  warrants  that it shall not use in the course of its performance hereunder,
and  shall not disclose to Scholastic, any confidential information of any third
party (including competitors of Scholastic or Distributor) unless Distributor is
expressly  authorized  in  writing  by  such  third  party  to  do  so.

14.5.   PUBLICITY.  Each  party  agrees  that any press release it  proposes  to
issue  with  regard  to  the execution of this Agreement  shall  be  subject  to
the prior  written  consent  of  the  other  party,  which consent shall  not be
unreasonably  withheld.  Notwithstanding  anything  to the contrary contained in
Section 5.1 hereof, Distributor shall not directly or indirectly issue or permit
the  issuance  of  any  publicity regarding, or grant any interview, or make any
public  statements  whatsoever  concerning,  (  Scholastic,  this  Agreement  or
Distributor's services hereunder without prior coordination with and approval by
Scholastic,  which  approval  may  be  granted  or withheld in Scholastic's sole
discretion,  or  (  any Product or Translated Product without prior coordination
with  and  approval  by  Scholastic,  which  approval  shall not be unreasonably
withheld  or  delayed.  In particular and without limiting any of the foregoing,
Distributor  shall not pre release any Translated Product or any portion thereof
without  prior  coordination with and approval by Scholastic, which approval may
be  granted  or withheld in Scholastic's sole discretion. Distributor shall not,
and  shall  have no right to, release, distribute or disclose to any third party
any  of the materials provided by Scholastic hereunder without the prior written
consent of Scholastic, which consent may be granted or withheld by Scholastic in
its  sole  discretion.

14.6    SPECIFIC  PERFORMANCE.  The  parties specifically acknowledge and  agree
that  the  provisions  of  this  Section 14 are reasonable and necessary for the
protection  of  the  Confidential  Information  and to prevent damage or loss to
Scholastic.  Distributor  understands  and  agrees  that  Scholastic  may suffer
irreparable  harm  if  Distributor  fails  to comply with any of its obligations
under  this  Section  14,  and  that  monetary  damages  in  such event would be
inadequate  to  compensate  Scholastic. Consequently, Distributor agrees that in
such  event Scholastic shall be entitled, in addition to such monetary relief as
may  be  recoverable at law, to such injunctive or other equitable relief as may
be  necessary  to  restrain  any  threatened,  continuing  or  further breach by

<PAGE>
Distributor,  without  showing  or  proving  any  actual  damages  sustained  by
Scholastic,  without  bond.

15.     REPRESENTATIONS,  WARRANTIES,  LIMITATIONS  AND  INDEMNIFICATION

15.1.   REPRESENTATIONS  AND WARRANTIES OF DISTRIBUTOR.  Distributor  represents
and  warrants  that (a) it has the right, power and authority to enter into this
Agreement and to fully perform its obligations under this Agreement and to grant
the  rights  granted  or  agreed to be granted hereunder; (b) the making of this
Agreement by it does not violate any agreement existing between it and any other
person  or  entity, and throughout the Term it shall not make any agreement with
any  person  or  entity  that is inconsistent with any of the provisions of this
Agreement;  (c)  it complies, and at all times during the Term shall comply with
all  applicable  laws  in  effect  at  the  time duties are performed under this
Agreement  and  in  all dealings with respect to the Products, Units, Translated
Products,  Translated Units and Translated User Documentation; (d) it is, and at
all  times  during  the  Term shall be, the holder of all consents necessary, if
any,  for it to perform its obligations hereunder; (e) it has the experience and
skill  to  perform the services required to be performed by it hereunder; (f) it
shall  perform  such services in accordance with generally accepted professional
standards  and  in  an  expeditious  and economical manner consistent with sound
professional  practices;  (g)  it  is  adequately financed to meet any financial
obligation  that  it  may  be  required  to  incur under this Agreement; (h) the
Translations, Translated Promotional Materials and Translated User Documentation
do  not  infringe upon any proprietary right of a third party, including but not
limited  to  any  copyright,  trademark,  trade  secret  and/or  patent; and (i)
Distributor  shall  not  issue  any  press  releases or use the Scholastic name,
trademark  and/or  logo  or  any  other  property  of  Scholastic  other than as
specifically  set  forth  herein.

15.2.   NO  EXPECTATIONS.  Distributor acknowledges and agrees that (a)  it  has
no  expectation  and  has  received no assurances that its business relationship
with  Scholastic  will continue beyond the Termination Date, that any investment
by  it in the Translation, promotion or distribution of Translated Units will be
recovered  or recouped, or that it will obtain any anticipated amount of profits
by  virtue  of this Agreement; and (b) it shall not have or acquire by virtue of
this  Agreement  any  vested,  proprietary or other right in the Translations or
promotion  of Translated Units or Translated Products or in any goodwill created
by  its  efforts.

15.3.   INDEMNIFICATION  BY  DISTRIBUTOR.  Distributor  agrees  to,  and  shall,
indemnify,  defend  and  hold  harmless  Scholastic  and  all  other  Scholastic
Affiliates  and  their  respective  directors,  shareholders,  officers, agents,
employees,  successors and assigns from and against any and all claims, demands,
suits, actions, judgments, damages, costs, losses, expenses (including attorneys
fees  and  expenses)  and  other liabilities arising from, in connection with or
related  in  any  way  to,  directly  or indirectly, (a) its performance of this
Agreement,  (b)  any and all promotional activities relating to Translated Units
or  Translated  Products,  (c)  any  breach  or  alleged  breach  of  any of the
representations,  warranties,  undertakings  or agreements made by it under this
Agreement  or  (d)  any  act  or  omission of it or any Distributor Affiliate in
connection  with this Agreement. Scholastic shall promptly notify Distributor of
any  such  claim.  Distributor  shall  bear  full responsibility for the defense
(including  any  settlements); provided however, that (i) Distributor shall keep
Scholastic  informed  of,  and  consult  with  Scholastic in connection with the
progress  of  such litigation or settlement; and (ii) Distributor shall not have

<PAGE>
any  right,  without  Scholastic's  written consent, to settle any such claim if
such  settlement  arises  from  or  is  part  of  any  criminal  action, suit or
proceeding  or  contains a stipulation to or admission or acknowledgment of, any
liability  or wrongdoing (whether in contract, tort or otherwise) on the part of
any  Scholastic  Affiliate.

15.4    REPRESENTATIONS  AND  WARRANTIES  OF  SCHOLASTIC.

        (a)    Scholastic  represents  and  warrants  that (it  has  the  right,
     power  and  authority to enter into this Agreement; and (the making of this
     Agreement  by it does not violate any agreement existing between it and any
     other  person  or  entity.
        (b)    Except  for  the  foregoing representations and  warranties,  THE
     PRODUCTS  AND UNITS ARE PROVIDED "AS IS". SCHOLASTIC SPECIFICALLY DISCLAIMS
     ALL  OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO (i)
     ANY  WARRANTY THAT ANY PRODUCT, TRANSLATED PRODUCT, UNIT OR TRANSLATED UNIT
     OR  ANY  PART  OR  ASPECT  THEREOF  DOES  NOT  INFRINGE UPON OR VIOLATE ANY
     INTELLECTUAL  PROPERTY  RIGHT  OF ANY PARTY, AND (ii) IMPLIED WARRANTIES OF
     MERCHANTABILITY  AND  FITNESS  FOR A PARTICULAR PURPOSE AS TO ANY PRODUCTS,
     UNITS  OR  SERVICES  PROVIDED  BY  SCHOLASTIC  UNDER  THIS  AGREEMENT.

15.5    LIMITATION  OF  LIABILITY.

        (a)    IN  NO EVENT SHALL SCHOLASTIC BE LIABLE UNDER  OR  IN  CONNECTION
     WITH  THIS AGREEMENT FOR ANY LOSS OF PROFIT OR ANY OTHER COMMERCIAL DAMAGE,
     INCLUDING WITHOUT LIMITATION INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY,
     PUNITIVE OR OTHER DIRECT OR INDIRECT DAMAGES OF ANY NATURE, FOR ANY REASON,
     INCLUDING  WITHOUT  LIMITATION THE BREACH OF THIS AGREEMENT, ANY EXPIRATION
     OR  TERMINATION  OF  THIS  AGREEMENT,  CLAIMS  ALLEGING  THAT  ANY PRODUCT,
     TRANSLATED  PRODUCT,  UNIT OR TRANSLATED UNIT OR ANY PART OR ASPECT THEREOF
     INFRINGES  UPON OR VIOLATES ANY INTELLECTUAL PROPERTY RIGHT OF ANY PARTY OR
     CLAIMS  ARISING  FROM THE MALFUNCTION OF OR DEFECTS IN ANY PRODUCT OR UNIT,
     WHETHER  SUCH  LIABILITY  IS  ASSERTED  ON  THE  BASIS  OF  CONTRACT, TORT,
     (INCLUDING NEGLIGENCE OR STRICT LIABILITY) OR OTHERWISE, EVEN IF SCHOLASTIC
     HAS  BEEN  ADVISED  OF  THE  POSSIBILITY  OF  SUCH  DAMAGES.

        (b)    IN  NO  EVENT  SHALL SCHOLASTIC'S LIABILITY FOR ANY CLAIM ARISING
     OUT  OF  THIS  AGREEMENT  EXCEED THE AGGREGATE AMOUNT PAID TO SCHOLASTIC BY
     DISTRIBUTOR  UNDER THIS AGREEMENT DURING THE CALENDAR QUARTER IN WHICH SUCH
     CLAIM  ACCRUES.

<PAGE>
        (c)    THIS  SECTION  15.5  HAS  BEEN  INCLUDED AS A MATERIAL INDUCEMENT
     FOR  SCHOLASTIC  TO  ENTER INTO THIS AGREEMENT AND DISTRIBUTOR ACKNOWLEDGES
     AND  AGREES  THAT SCHOLASTIC WOULD NOT HAVE ENTERED INTO THIS AGREEMENT BUT
     FOR  THE  LIMITATIONS  OF  LIABILITY  IN  THIS  AGREEMENT.

15.6.   NO  PASS  THROUGH OF WARRANTY OBLIGATIONS. SCHOLASTIC DOES NOT  MAKE  BY
VIRTUE OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREIN, AND SCHOLASTIC
HEREBY  EXPRESSLY  DISCLAIMS  ANY  REPRESENTATION  OR  WARRANTY TO ANY END USER,
DEALER  OR  OTHER  THIRD PARTY, WITH RESPECT TO ANY TRANSLATED UNIT PURCHASED OR
DISTRIBUTED  BY  DISTRIBUTOR  PURSUANT  TO  THIS  AGREEMENT,  INCLUDING, BUT NOT
LIMITED  TO,  ANY  IMPLIED  WARRANTIES  OF  MERCHANTABILITY  AND  FITNESS  FOR A
PARTICULAR PURPOSE. DISTRIBUTOR SHALL NOT HAVE THE RIGHT TO MAKE OR PASS ON, AND
SHALL  TAKE  ALL  MEASURES  NECESSARY  TO  INSURE THAT NEITHER IT NOR ANY OF ITS
EMPLOYEES OR AGENTS MAKES OR PASSES ON, OR ATTEMPTS TO MAKE OR PASS ON, ANY SUCH
REPRESENTATION  OR  WARRANTY  ON BEHALF OF SCHOLASTIC TO ANY END USER, DEALER OR
OTHER  THIRD  PARTY.

15.7    INDEMNIFICATION  BY  SCHOLASTIC.  Scholastic  shall defend, at its  sole
expense, any suit or proceeding brought against Distributor insofar as such suit
or  proceeding  shall  be based upon a claim in respect of any of the warranties
set  forth in Section 15.4(a) hereof. Scholastic shall pay any damages and costs
finally  awarded  by a court against Distributor on such a claim, provided that:

        (a)    Scholastic  shall  have  been  promptly notified of the  suit  or
     claim by Distributor and provided with a copy of each communication, notice
     or  other  action  relating  to  said  claim;

        (b)    Scholastic  shall have the right  to  assume  sole  authority  to
     conduct  the trial or settlement of such claim or any, negotiations related
     thereto  at  Scholastic's  expense;  and

        (c)    Distributor  shall have provided Scholastic all  information  and
     assistance reasonably requested by Scholastic in connection with such claim
     or  suit.

The  foregoing  shall  not  apply,  and  Scholastic shall have no obligations to
Distributor  to  the  extent  any  such  claim  is  based  on (x) any use of any
Translated Unit in combination with any product, equipment, software or data not
manufactured  or  marketed  by  Scholastic  or identified by Scholastic as being
compatible  with  any Translated Unit, (y) any alteration or modification of any
Translated Unit beyond those permitted hereunder, or (z) marketing, distribution
or  use  of  any  Translated  Units after written notice that Distributor should
cease  such  activity  due  to  such  claim.

16.     TERMINATION

16.1.   Without   prejudice  to  any  other  rights  or  remedies  available  to
Scholastic,  Scholastic  shall  have  the  right,  in  its  sole  discretion, to

<PAGE>
immediately  terminate  this Agreement upon written notice to Distributor in the
event  of  the  occurrence  of  one  or  more  of  the  following:

        (a)    Distributor  discontinues its marketing and distribution business
     or  fails  to  meet  the  Release  Date through no fault of delay caused by
     Scholastic;  or

        (b)    Scholastic is prevented from manufacturing, publishing, distribu-
     ting,  marketing,  selling,  licensing or providing any Product or Unit  by
     law  or  as  a  result of a suit, claim or proceeding (including settlement
     thereof)  brought  by  a  third  party  against  Scholastic;  or

        (c)    Distributor  (i)  asserts  any  Intellectual Property Right in or
     to  any  Translated  Product,  Product, Scholastic Property or any material
     provided  by  Scholastic or (ii) fails to perform any obligation, warranty,
     duty  or  responsibility, or is in breach of or in default, with respect to
     any  other term or condition undertaken by Distributor under this Agreement
     which  pertains to or affects any other proprietary right of Scholastic; or

        (d)    Distributor fails to make any payment or furnish any statement as
     herein  provided  and  such failure continues for a period of five (5) days
     following  receipt  of  notice  of  such  failure;  or

        (e)    there  is  any  violation  of  Section  3.1  hereof;  or

        (f)    subject  to  Section  19.7 hereof,  an  event  therein described
     occurs; or

        (g)    Distributor makes any assignment for the benefit of creditors  or
     files a petition in bankruptcy or is adjudged bankrupt or becomes insolvent
     or  is placed in the hands of a receiver or if the equivalent of any of the
     proceedings  or  acts  referred  to  in  this  clause,  though known and/or
     designated  by  some other name or term in any part of the Territory, shall
     occur;  or

        (h)    Distributor breaches  any  other  material  term  or provision of
     this  Agreement  and  fails  to cure such breach within ten (10) days after
     Scholastic  delivers  written  notice  thereof  to  Distributor.

16.2.   Distributor  shall  have  the right to terminate this Agreement  in  the
event Scholastic (a) breaches a material term or provision of this Agreement and
fails  to  cure  such  breach  within  ten  (10) days after Distributor delivers
written  notice  thereof  to  Scholastic,  or  (b)  makes any assignment for the
benefit  of  creditors or files a petition in bankruptcy or is adjudged bankrupt
or  becomes  insolvent  or  is  placed  in  the  hands  of  a receiver or if the
equivalent  of any of the proceedings or acts referred to in this clause, though
known and/or designated by some other name or term in any part of the Territory,
shall  occur.

16.3.   For purposes of this Agreement, any act or failure to act by  any  third
party  contractor  of  Distributor, or any employee of Distributor or such third
party  contractor  shall  be  deemed  an  act  or failure to act by Distributor.

16.4.   Subject  to  Distributor's  limited sell-off right pursuant  to  Section
8.2  above,  on the Termination Date, all rights granted to Distributor under or
pursuant  to this Agreement shall revert to Scholastic, and Distributor shall no
longer  distribute  any  Translated  Units.

<PAGE>
16.5.   No  expiration  or  termination  of   this   Agreement   shall   release
Distributor  from its obligation to pay Scholastic the Minimum Guarantee and any
amounts  payable  to  Scholastic under this Agreement which accrued prior to the
Termination  Date  or  which  may  accrue  after  the  Termination  Date.

16.6.   In  the  event  of the expiration or termination of this  Agreement  for
any  reason  (including  a  material  breach  of  this Agreement by Scholastic),
subject  to  Distributor's  limited  right  of sell-off set forth in Section 8.2
hereof,  Distributor shall promptly deliver to Scholastic Translated Promotional
Materials  and  all  materials  provided  by  Scholastic  (including  all copies
thereof).  Distributor further agrees that Scholastic and its agents, employees,
and  representatives  shall have the right, with prior notice to Distributor, to
enter  Distributor's  premises  in order to take repossession of such Translated
Promotional  Materials  and materials, in which case Distributor shall forthwith
surrender  to  Scholastic such materials. In no event shall Distributor have any
right  to (a) recover or obtain any Intellectual Property Rights or other rights
in  or  to  any  Product,  Translated  Product, promotional material, Translated
Promotional  Material  or  any material provided by Scholastic,  or  (b)  enjoin
or otherwise interfere with  Scholastic's  development,  licensing,  publishing,
marketing,  distribution  or  provision  of  any  Product or Translated Product.

16.7.   Except as set forth in Section 16.2 above, no breach of  this  Agreement
by  Scholastic  shall entitle Distributor to terminate or rescind this Agreement
or  to  injunctive or other equitable relief, it being agreed that Distributor's
sole  remedy,  if  any,  in  the  event  of such a breach shall be an action for
damages.

16.8.   The  obligations  in this Agreement which are intended, by  their  terms
or  by  necessary  implication, to survive the expiration or termination of this
Agreement  shall so survive. In addition, and without limiting the generality of
the  preceding  sentence,  Sections  3.2, 7.4, 7.6, 11 through 15, 17, 18 and 19
hereof  shall  survive  the  expiration or termination of this Agreement for any
reason.

17.     INDEPENDENT  CONTRACTOR  NO  AGENCY

17.1.   Distributor  is,  and  shall  remain,  an  independent  contractor  with
respect  to  services  performed  pursuant  to  this  Agreement.

17.2.   Personnel  supplied  by  Distributor  shall  work exclusively  for  same
and shall not, for any purpose, be considered employees or agents of Scholastic.
Distributor  assumes full responsibility for the actions of such personnel while
performing  services  pursuant  to  this  Agreement  and  shall  be  exclusively
responsible  for,  shall  solely  bear  the  costs  and  expenses  of, and shall
indemnify  Scholastic and hold it harmless from claims relating to, their super-
vision,  daily direction and control (including without limitation Distributor's
and  such  personnel's  compliance  with  any  applicable  laws),  compensation,
benefits  (including without limitation any pension or welfare plan and workers'
compensation  program)  and  taxes (including without limitation any withholding
taxes,  payroll  taxes,  disability  insurance payments, unemployment taxes, and
other  similar taxes, assessments, contributions or charges on the payments made
or required to be made by Distributor to such personnel). Distributor shall file
all returns and reports that may be required by any governmental or professional
agency  with  respect  to  any  of  the  foregoing.

<PAGE>
17.3    Scholastic shall have no obligation whatsoever to compensate Distributor
or  any  person  or  entity  engaged by Distributor on account of any damages or
injuries  which  Distributor or such person or entity may sustain as a result or
in  the course of the performance by such person or entity of services for or on
behalf  of  Distributor  pursuant  to  this  Agreement.

17.4.   Nothing  contained  herein  shall be construed to constitute  either  of
the  parties  as  principal  and agent, employer and employee, partners or joint
venturers,  nor  shall  any  similar relationship be deemed to exist between the
parties.  Except  as  specifically provided herein, neither party shall have any
power  to  obligate  or  bind  the  other  party.

18.     INSURANCE

Distributor  shall  maintain  in  full  force and effect at all times while this
Agreement  is  in  effect and for two (2) years thereafter comprehensive general
and  commercial  liability  insurance,  including  broad  form  contractual  and
products  liability  coverage waiving subrogation with combined single limits of
no  less  than  two  million  dollars  ($2,000,000)  and naming Scholastic as an
additional  insured.  Distributor  shall  deliver to Scholastic a certificate or
certificates  of  insurance evidencing satisfactory coverage and indicating that
Scholastic  shall  receive  written  notice  of cancellation, non-renewal or any
material  change  in  coverage  at least thirty (30) days prior to the effective
date  thereof.  All  insurance  required hereunder shall be written by reputable
insurers accorded a rating by A.M. Best Company, Inc. of B+:Vll or higher at the
time of issuance of any policy pertaining to such insurance. Compliance herewith
in  no way limits Distributor's indemnity obligations, except to the extent that
Distributor's  insurance  company  actually  pays  Scholastic  amounts  which
Distributor  would  otherwise  pay  Scholastic.

19.     GENERAL  PROVISIONS

19.1.   NOTICES.  All  notices which either party is required or may  desire  to
serve  upon the other party shall be in writing and in English, addressed to the
party  to  be  served  as  follows:

        (a)    if  to  Scholastic:
               Scholastic  Inc.
               555  Broadway
               New  York,  NY  10012
               Attention:  Senior  Vice  President-Business  and  Legal  Affairs
               Telephone:  (212)  343-6633
               Facsimile:  (212)  343-6965

               and

               Scholastic  Inc.
               568  Broadway
               New  York,  NY  10012
               Attention:  International  Marketing  Manager
               Telephone:  (212)  343-7178
               Facsimile:  (212)  343-4951

        (b)    if  to  Distributor:
               Star  E-Media  Corporation

<PAGE>
               188  Technology  Drive,  Suite  B
               Irvine,  CA  92618
               Attention:  Gene  Abbadessa
               Telephone:  (949)  727-0012
               Facsimile:  (949)  727-0030

Any  such notice may be served personally or by courier, mail (postage prepaid),
facsimile  (provided  oral  confirmation of receipt is immediately obtained or a
hard  copy  is  concurrently  sent  by  internationally  commercially recognized
overnight delivery service) or internationally commercially recognized overnight
delivery  service.  Notice  shall  be deemed served upon the date sent; provided
however,  that Scholastic shall be deemed to have been served with a notice of a
request  for  approval  of materials under this Agreement only upon Scholastic's
actual  receipt  of  the  request  and  of  any required accompanying materials.
Materials,  including  language,  which  require approval by Scholastic shall be
sent by mail (postage  prepaid),  internationally  commercially recognized over-
night  delivery  service,  or  served personally or by courier. Either party may
change the address to which notices are to be delivered by written notice to the
other  party  served  as  provided  in  this  Section  19.1.

19.2.   ENTIRE  AGREEMENT.  This Agreement, together with the  exhibit  attached
hereto  and  hereby  incorporated herein by reference, constitutes the complete,
final  and  exclusive  understanding  and  agreement  between   Scholastic   and
Distributor with respect to the transactions contemplated herein, and supersedes
any  and  all  prior  or  contemporaneous oral or written representation, under-
standing,  agreement,  correspondence  or  communication  between Scholastic and
Distributor  concerning the subject matter hereof. Neither party is relying upon
any  warranties,  representations,  assurances  or inducements not expressly set
forth  herein.

19.3.   AMENDMENTS. All amendments or modifications of this Agreement  shall  be
binding  upon  the parties despite any lack of consideration so long as the same
shall  be in writing and executed by each of the parties hereto. It is expressly
understood and agreed that no usage of trade or other regular practice or method
of  dealing  between  the  parties  hereto  shall  be used to modify, interpret,
supplement  or  alter  in  any manner the express terms of this Agreement or any
part  hereof.

19.4.   WAIVER.  No waiver of any provision of this Agreement or any  rights  or
obligations  of  either party hereunder shall be effective, except pursuant to a
written  instrument  signed by the party waiving compliance, and any such waiver
shall  be  effective  only in the specific instance and for the specific purpose
stated  in  such  writing.

19.5.   NO  OTHER OBLIGATIONS. Neither party shall have any obligation  that  is
not  expressly  set  forth  in  this  Agreement.

19.6.   CUMULATIVE  REMEDIES.  Except as may be specifically set forth  in  this
Agreement with respect to certain matters, the rights and remedies of each party
as  set  forth  in  this  Agreement are not exclusive and are in addition to any
other  rights  and  remedies  provided  under this Agreement or now or hereafter
provided  by  law.

19.7.   FORCE MAJEURE. Neither party shall be deemed in default  hereunder,  nor
shall  it  hold  the other party responsible for, any cessation, interruption or
delay  in  the performance of its obligations hereunder due to causes beyond its

<PAGE>
reasonable control including, but not limited to: earthquake, flood, fire, storm
or  other natural disaster, epidemic, accident, explosion, casualty, act of God,
lockout,  strike, labor controversy or threat thereof, riot, insurrection, civil
disturbance  or  commotion,  boycott,  disruption  of the public markets, war or
armed  conflict  (whether or not officially declared), sabotage, act of a public
enemy,  embargo,  delay  of a common carrier, the inability to obtain sufficient
material, supplies, labor, transportation, power or other essential commodity or
service  required  in  the  conduct  of  its  business,  or any change in or the
adoption  of  any  law,  ordinance, rule, regulation, order, judgment or decree;
provided  that the party relying upon this Section 19.7 (a) shall have given the
other  party  written notice thereof promptly and, in any event, within five (5)
days  of  discovery  thereof  and  (b) shall take all steps reasonably necessary
under  the circumstances to mitigate the effects of the force majeure upon which
such  notice  is  based;  provided further, that in the event of a force majeure
described  in  this  Section  19.7 extends for a period in excess of thirty (30)
days,  the other party may, pursuant to Section 16 hereof, immediately terminate
this  Agreement.

19.8.   NO  THIRD PARTY BENEFICIARIES. Except as expressly provided  in  Section
14  hereof,  nothing in this Agreement is intended or shall be construed to give
any  person, other than the parties hereto, any legal or equitable right, remedy
or  claim  under  or  in  respect  of this Agreement or any provisions contained
herein.

19.9.   ASSIGNMENT.  Scholastic  shall  have  the right at any time  to  assign,
delegate  or  otherwise  transfer this Agreement, in whole or in part, or any or
all  of Scholastic's rights, duties or obligations hereunder to any third party.
This  Agreement  and  Distributor's rights, duties and obligations hereunder are
personal  to  Distributor  and  may  not  be  assigned,  delegated  or otherwise
transferred  by  Distributor,  or by operation of law, without the prior written
consent of Scholastic, which consent may be granted or withheld by Scholastic in
its  sole discretion. Without limiting the materiality of any other term of this
Agreement,  any  attempted  assignment,  delegation or other transfer (including
without  limitation  any license or sublicense, mortgage or pledge) without such
consent  shall  be  null and void and shall constitute a material breach of this
Agreement.  The  sale, transfer or encumbrance of fifty percent (50%) or more of
the  ownership  interest in, or outstanding voting stock of, Distributor, or the
merger  of  Distributor  into  or with any other third party or entity, shall be
deemed  an  assignment  for  purposes  of  this  Section  19.9.

19.10.  FURTHER  ASSURANCES.  Distributor  agrees  to do and  perform  all  such
further  acts  and  things  and shall execute and deliver such other agreements,
certificates,  instruments  and  documents necessary or that Scholastic may deem
advisable  in  order to carry out the intent and accomplish the purposes of this
Agreement  and  to  evidence,  perfect  or otherwise confirm Scholastic's rights
hereunder.

19.11.  CONSTRUCTION.  This  Agreement shall be fairly interpreted and construed
in  accordance  with its terms and without strict interpretation or construction
in  favor  of  or  against  either party. Distributor has had the opportunity to
consult  with  counsel  in  the  negotiation  of  this  Agreement.

19.12.  HEADINGS.   The   section  and  paragraph  headings  appearing  in  this
Agreement  are inserted only as a matter of convenience. Such headings in no way
define,  govern, limit, modify or construe the scope or extent of the provisions
of  this Agreement to which they may relate and therefore shall not be given any
legal  effect.

<PAGE>
19.13.  SEVERABILITY.  While the restrictions and covenants set  forth  in,  and
the  other  provisions  of,  this  Agreement are considered by the parties to be
reasonable  under  the  circumstances hereof, it is recognized that restrictions
and  covenants  of  such  nature  may  be  unenforceable for reasons unforeseen.
Accordingly,  if  any  of  such  restrictions,  covenants or provisions shall be
adjudged by a court of competent jurisdiction to be void as going beyond what is
reasonable  in  all the circumstances for the protection of the interests of the
party  seeking  to enforce such restriction, covenant or provision, but would be
valid  if  part of the wording thereof were deleted or the time periods (if any)
thereof  were  reduced  or  the  range  of activities or area dealt with thereby
reduced  in scope, such restriction, covenant or provision shall apply with such
modifications  as  may be necessary to make it valid and effective. In the event
that  any  provision  of  this Agreement should be found by a court of competent
jurisdiction  to  be  invalid,  illegal  or  unenforceable  in  any respect, the
validity,  legality  and  enforceability  of  the remaining provisions contained
herein  shall  not  in  any  way  be  affected  or  impaired  thereby.

19.14.  GOVERNING  LAW,  FORUM  AND JURISDICTION.  The  validity,  construction,
interpretation  and legal effect of this Agreement shall be governed by the laws
and  judicial  decisions  of  the  State of New York and the U.S. without giving
effect  to  principles of conflicts of law. Scholastic and Distributor expressly
agree  that  any  action  at law or in equity arising out of or relating to this
Agreement  shall  be  filed  only in the courts of the State of New York, or the
United  States District Court for the Southern District of New York. The parties
hereby  consent  and  submit to the personal jurisdiction of such courts for the
purposes  of  litigating  any  such  action.

19.15.  COUNTERPARTS. This Agreement may be executed in  counterparts,  each  of
which  shall  be deemed an original and all of which shall be deemed an original
and  all  of  which  together  shall  constitute  one  and  the same instrument.
IN  WITNESS  WHEREOF, the duly authorized representatives of each of the parties
hereto  have  entered  into  this  Agreement  as  of  the  Effective  Date.

SCHOLASTIC INC.                          STAR E-MEDIA CORPORATION

By   /s/  Leonard Mlodinow               By   /s/  E.G. Abbadessa
  ------------------------                 ----------------------
Name:   Leonard  Mlodinow                Name:   E. G. Abbadessa
     --------------------                     ------------------
Title:   Vice President                  Title:   President
      -----------------                          ------------
Date:   May 3, 2001                       Date:   April 16, 2001
     --------------                            -----------------

<PAGE>
                                    EXHIBIT A
                                    ---------
                     PRODUCTS AND TRANSLATED UNIT ROYALTIES
                     --------------------------------------
PRODUCTS
--------
I'm  Ready  for  Kindergarten:  Huggly's  Turtle  Rescue
I'm  Ready  for  Kindergarten:  Huggly's  Sleepover
Usborne's  Animated  First  Thousand  Words
Scholastic  SuperPrint  Deluxe
Math  Shop  Deluxe
Why  Mosquitoes  Buzz  in  People's  Ears
Chato's  Kitchen

TRANSLATED  UNIT  ROYALTIES
---------------------------
-  For  I'm Ready for Kindergarten: Huggly's Turtle Rescue: One dollar and fifty
cents  ($1.50)  per  each  Translated  Unit  sold.
- For I'm Ready for Kindergarten: Huggly's Sleepover: One dollar and fifty cents
($1.50)  per  each  Translated  Unit  sold.
-  For  Usborne's  Animated  First  Thousand  Words:  One dollar and fifty cents
($1.50)  per  each  Translated  Unit  sold.
-  For Scholastic SuperPrint Deluxe: One dollar and fifty cents ($1.50) per each
Translated  Unit  sold.
-  For  Math Shop Deluxe: One dollar and fifty cents ($1.50) per each Translated
Unit  sold.
-  For  Why Mosquitoes Buzz in People's Ears: One dollar and fifty cents ($1.50)
per  each
Translated  Unit  sold.
-  For  Chato's  Kitchen: One dollar and fifty cents ($1.50) per each Translated
Unit  sold.

<PAGE>
                                    EXHIBIT B
                                    ---------
    TRANSLATED PRODUCTS. SCHOLASTIC PURCHASE PRICES AND SCHOLASTIC ROYALTIES
    ------------------------------------------------------------------------

TRANSLATED  PRODUCTS
--------------------
Usborne's  Animated  First  Thousand  Words
Math  Shop  Deluxe
Scholastic  SuperPrint  Deluxe
Why  Mosquitoes  Buzz  in  People's  Ears
Chato's  Kitchen
I'm  Ready  for  Kindergarten:  Huggly's  Sleepover
I'm  Ready  for  Kindergarten:  Huggly's  Turtle  Rescue

SCHOLASTIC  PURCHASE  PRICES
----------------------------
Two  dollars  and  fifty  cents  ($2.50)  per  Translated  Jewel  Unit
Three  dollars  and  fifty  cents  ($3.50)  per  Translated  Unit

SCHOLASTIC  ROYALTIES
---------------------
Fifty  cents ($.50) per each Translated Unit or Translated Jewel-Case Unit sold.
Scholastic  Royalties  shall  only  apply  to Translated Units and/or Translated
Jewel-Case  Units  that  are  created  by  Distributor  and  do  not incorporate
Scholastic  Translations.  Scholastic  shall not pay Scholastic Royalties on the
following  Translated  Units,  and/or  Translated Jewel-Case Units which will be
created  using Scholastic Translations: Usborne's Animated First Thousand Words;
I  Spy;  and  I'm  Ready  for  Kindergarten:
Huggly's  Sleepover.

<PAGE>
                                 SCHOLASTIC INC.
                                  AMENDMENT TO
                             DISTRIBUTION AGREEMENT
                                DATED MAY 1, 2000

This  Amendment  is  entered  into  and  effective  as  of March 8, 2001 between
Scholastic  Inc., a New York corporation  with  offices  at  555  Broadway,  New
York, New York 10012 ("Scholastic"); and  Star  E-Media,  a  Nevada  corporation
with offices  at  188  Technology  Drive,  Suite  B,  Irvine,  California  92618
("Distributor"),  and  sets  forth  the  amendment to the Distribution Agreement
dated  March  15,  1999  between  the  parties  (the  "Agreement").

Whereas  Scholastic  and  Distributor  desire to amend the Agreement as follows:

1.     SECTION  5.1  MARKETING  COMMITMENT  is  amended by adding the following:
Distributor  shall  submit  a  marketing  plan  to Scholastic for the Translated
Products, I Spy and I Spy Spooky Mansion and I Spy Junior, no later than July 1,
2001.

2.     SECTION  2.1  TERM  is  amended  by  adding  the  following:
For the Translated Products and Translated Units, I Spy and I Spy Spooky Mansion
and  I  Spy Junior, the Term of this Agreement shall commence upon March 8, 2001
(provided  that  this  Amendment  has  been fully executed and delivered by both
parties), and shall continue until March 7, 2003 (the "Second Termination Date")
unless  terminated  earlier  in  accordance  with  Section  16.1 or Section 16.2
hereof.

3.     SECTION  5.4  RELEASE  DATE  is  amended  by  adding  the  following:
Distributor  shall release for sale the Translated Units, I Spy and I Spy Spooky
Mansion  and  I  Spy Junior, in the Territory on the following date (the "Second
Release  Date")  by  December  1,  2001.

4.     SCHOLASTIC  ROYALTIES  is  amended  by  adding  the  following:
Scholastic  shall not pay Scholastic Royalties on the following Translated Units
and/or  Translated  Jewel-Case  Units,  which  will  be created using Scholastic
Translations:  I  Spy.

5.     SECTION  8.1.  MINIMUM  GUARANTEE is amended by deleting the "AND" before
                                                                    -----
"(B)"  and  by  adding  the  following:
  ---
       ; (c)  twenty-three thousand one hundred fifteen dollars ($23,115.00) for
       the Translated Units I Spy and I Spy Spooky Mansion and I Spy Junior upon
       mutual execution of this Amendment; and (d) eleven thousand three hundred
       eighty-five dollars ($11,385.00) for the Translated Units I Spy and I Spy
       Spooky  Mansion  and I Spy  Junior  on  or  before  May  1,  2001.

6.     EXHIBIT  A.  PRODUCTS  is  amended  by  adding  the  following:

       I  Spy
       I  Spy  Spooky  Mansion
       I  Spy  Junior

7.     SECTION 16.1(A) is amended by deleting its entirety and replacing it with
the  following:

       (a)     Distributor  discontinues its marketing and distribution business
       or fails  to  meet  the  Release  Date  or  the  Second Release  Date; or

8.     EXHIBIT  A. TRANSLATED UNIT ROYALTIES is amended by adding the following:

       -  For I Spy: One dollar and fifty cents ($1.50) per each Translated Unit
       sold.
       -  For I Spy  Spooky  Mansion:  One  dollar  and  fifty cents ($1.50) per
       each Translated  Unit  sold.
       -  For I  Spy  Junior: One dollar and fifty cents ($1.50) per each Trans-
       lated  Unit sold.

9.     EXHIBIT  B.  TRANSLATED  PRODUCTS  is  amended  by  adding the following:

       I  Spy
       I  Spy  Spooky  Mansion
       I  Spy  Junior

All  other  terms and conditions of the Agreement shall remain in full force and
effect.  All  defined terms in this Amendment shall have the same definitions as
those  defined  terms  set  forth  in  the  Agreement.

Accepted  and  agreed  to  effective  as  of  the date first set forth above by:

SCHOLASTIC:                                DISTRIBUTOR:

SCHOLASTIC  INC.                           STAR  E-MEDIA  CORPORATION

By   /s/  Leonard  Mlodinow                By   /s/  E.G.  Abbadessa
  -------------------------                  -----------------------
Name:   Leonard  Mlodinow                  Name:   E.  G.  Abbadessa
     --------------------                       --------------------
Title:   Vice  President                   Title:   President
      ------------------                         ------------

<PAGE>
                                 SCHOLASTIC INC.
                                 AMENDMENT #2 TO
                             DISTRIBUTION AGREEMENT
                                DATED MAY 1, 2000

This  Amendment  #2  is  entered  into  and effective as of June 1, 2001 between
Scholastic  Inc., a  New  York  corporation  with  offices  at 555 Broadway, New
York, New  York  10012  ("Scholastic");  and  Star E-Media, a Nevada corporation
with offices  at  188  Technology  Drive,  Suite  B,  Irvine,  California  92618
("Distributor"),  and  sets  forth  the  amendment to the Distribution Agreement
dated  March  15,  1999  between the parties (the "Agreement") and the amendment
dated  March  8,  2001  between  the  parties  (the  Amendment").
Whereas  Scholastic  and  Distributor  desire to amend the Agreement as follows:

1.     SECTION  1.12  TRANSLATED  PRODUCT  OR  TRANSLATED PRODUCTS is amended by
deleting  its  entirety  and  replacing  it  with  the  following:

Translated  Product  or  Translated Products means the Translated version of the
Products  in the Spanish language only as a bilingual Spanish/English Translated
Product  or  Translated  Unit.

2.     SECTION  2.1  TERM  is  amended  by  adding  the  following:

For  the Translated Products and Translated Units, Clifford Reading and Clifford
Thinking  Adventures  and  I  Spy  Junior:  Puppet  Playhouse,  the Term of this
Agreement  shall  commence  upon  June 1, 2001 (provided that this Amendment has
been fully executed and delivered by both parties), and shall continue until May
31,  2003 (the "Third Termination Date") unless terminated earlier in accordance
with  Section  16.1  or  Section  16.2  hereof.

3.     SECTION  5.1  MARKETING  COMMITMENT  is  amended by adding the following:

Distributor  shall  submit  a  marketing  plan  to Scholastic for the Translated
Products,  Clifford  Reading  and Clifford Thinking Adventures and I Spy Junior:
Puppet  Playhouse,  no  later  than  November  30,  2001.

4.     SECTION  5.4  RELEASE  DATE  is  amended  by  adding  the  following:

Distributor  shall  release  for sale the Translated Units, Clifford Reading and
Clifford  Thinking  Adventures  and  I  Spy  Junior:  Puppet  Playhouse,  in the
Territory on the following date (the "Third Release Date") by December 31, 2001.

5.     SECTION  8.1. MINIMUM GUARANTEE is amended by deleting the " before " and
by  adding  the  following:

-;  (e)  eleven thousand dollars ($11,000.00) for the Translated Units, Clifford
Reading  and  Clifford  Thinking  Adventures and I Spy Junior: Puppet Playhouse,
upon  mutual  execution  of  this  Amendment;   (f)  thirteen  thousand  dollars
($13,000.00)  for  the  Translated Units, Clifford Reading and Clifford Thinking
Adventures  and  I  Spy Junior: Puppet Playhouse, on or before February 1, 2002;
(g)  eleven  thousand  dollars  ($11,000.00)  for the Translated Units, Clifford
Reading  and Clifford Thinking Adventures and I Spy Junior: Puppet Playhouse, on
or  before  April  1,  2002;  and  (h) four thousand dollars ($4,000.00) for the
Translated  Unit,  I  Spy  Junior:  Puppet Playhouse, on or before July 1, 2002.

6.     SECTION 16.1(A) is amended by deleting its entirety and replacing it with
the  following:

(a)     Distributor  discontinues  its  marketing  and  distribution business or
fails  to  meet the Release Date or the Second Release Date or the Third Release
Date  through  no  fault  of  delay  caused  by  Scholastic;  or

7.     EXHIBIT  A.  PRODUCTS  is  amended  by  adding  the  following:

Clifford  Reading
Clifford  Thinking  Adventures
I  Spy  Junior:  Puppet  Playhouse

8.     EXHIBIT  A. TRANSLATED UNIT ROYALTIES is amended by adding the following:

     -  For  Clifford  Reading:  One  dollar  and  fifty  cents ($1.50) per each
Translated  Unit  sold.
     -  For Clifford Thinking Adventures: One dollar and fifty cents ($1.50) per
each  Translated  Unit  sold.
     -  For  I Spy Junior: Puppet Playhouse: One dollars and fifty cents ($1.50)
for  each  Translated  Unit  sold.

9.     EXHIBIT  B.  TRANSLATED  PRODUCTS  is  amended  by  adding the following:

Clifford  Reading
Clifford  Thinking  Adventures
I  Spy  Junior:  Puppet  Playhouse

10.    EXHIBIT  B.   SCHOLASTIC   PURCHASE  PRICES  is  amended  by  adding  the
following:

For  the Translated Units, Clifford Reading and Clifford Thinking Adventures and
I  Spy  Junior:  Puppet  Playhouse  only:
Three  dollars  and  fifty  cents  ($3.50  per  Translated  Jewel-Case  Unit
Four  dollars  and  fifty  cents  ($4.50)  per  Translated  Unit.

All  other terms and conditions of the Agreement as amended shall remain in full
force  and  effect.  All  defined terms in this Amendment #2 shall have the same
definitions  as  those  defined  terms  set  forth  in the Agreement as amended.
Accepted  and  agreed  to  effective  as  of  the date first set forth above by:

SCHOLASTIC:                               DISTRIBUTOR:

SCHOLASTIC  INC.                          STAR  E-MEDIA  CORPORATION

By   /s/  Leonard  Mlodinow               By   /s/  E.G.  Abbadessa
  -------------------------                 -----------------------
Name:   Leonard  Mlodinow                 Name:   E.  G.  Abbadessa
     --------------------                      --------------------
Title:   Vice  President                  Title:   President
      ------------------                        ------------
Date:   May  3,  2001                     Date:   April  16,  2001
     ----------------                          -------------------

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