<SUBMISSION>
<ACCESSION-NUMBER>0000950142-03-001287
<TYPE>SC 13D
<PUBLIC-DOCUMENT-COUNT>5
<FILING-DATE>20030730
<GROUP-MEMBERS>GLADWYNE CATALYST GENPAR, LLC
<GROUP-MEMBERS>INVEMED CATALYST FUND, L.P.
<GROUP-MEMBERS>INVEMED CATALYST GENPAR, LLC
<GROUP-MEMBERS>INVEMED SECURITIES, INC.
<GROUP-MEMBERS>KENNETH G. LANGONE
<SUBJECT-COMPANY>
<COMPANY-DATA>
<CONFORMED-NAME>AMBASSADORS GROUP INC
<CIK>0001162315
<ASSIGNED-SIC>8200
<IRS-NUMBER>911957010
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 13D
<ACT>34
<FILE-NUMBER>005-78137
<FILM-NUMBER>03811850
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>110 SOUTH FERRALL STREET
<CITY>SPOKANE
<STATE>WA
<ZIP>99202
<PHONE>5095346200
</BUSINESS-ADDRESS>
</SUBJECT-COMPANY>
<FILED-BY>
<COMPANY-DATA>
<CONFORMED-NAME>INVEMED CATALYST FUND LP
<CIK>0001085006
<IRS-NUMBER>134051375
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 13D
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>375 PARK AVE
<STREET2>STE 2205
<CITY>NEW YORK
<STATE>NY
<ZIP>10152
<PHONE>2128430542
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>375 PARK AVE
<STREET2>STE 2205
<CITY>NEW YORK
<STATE>NY
<ZIP>10152
</MAIL-ADDRESS>
</FILED-BY>
<DOCUMENT>
<TYPE>SC 13D
<SEQUENCE>1
<FILENAME>sc13d-ambass.txt
<DESCRIPTION>INVEMED CATALYST FUND/AMBASSADORS GROUP, INC.
<TEXT>

================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                            ________________________

                                  SCHEDULE 13D


                    Under the Securities Exchange Act of 1934
                            ________________________

                             AMBASSADORS GROUP, INC.
                                (Name of Issuer)

                     COMMON STOCK, PAR VALUE $0.01 PER SHARE
                         (Title of Class of Securities)


                                   023177-10-8
                                 (CUSIP Number)

                             MS. SUZANNE M. PRESENT
                           INVEMED CATALYST FUND, L.P.
                                 375 PARK AVENUE
                                   SUITE 2205
                               NEW YORK, NY 10152
                            TEL. NO.: (212) 843-0542
                     (Name, Address and Telephone Number of
                      Person Authorized to Receive Notices
                               and Communications)
                            ________________________

                                  JULY 29, 2003
                      (Date of Event which Requires Filing
                               of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 1(f) or 1(g), check the following box [ ].

Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-1(a) for other
parties to whom copies are to be sent.

*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).


================================================================================

<PAGE>

----------------------------------           -----------------------------------
CUSIP NO. 023177-10-8                                              Page  2 of 11
----------------------------------           -----------------------------------


--------------------------------------------------------------------------------
         NAME OF REPORTING PERSON
1        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

                  Invemed Catalyst Fund, L.P.
--------------------------------------------------------------------------------
2        CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP       (a)     [_]
                                                                (b)     [X]

--------------------------------------------------------------------------------
3        SEC USE ONLY


--------------------------------------------------------------------------------
4        SOURCE OF FUNDS

                  OO
--------------------------------------------------------------------------------
5        CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
         ITEMS 2(d) or 2(e)
                                                                        [_]
--------------------------------------------------------------------------------
6        CITIZENSHIP OR PLACE OF ORGANIZATION

                  Delaware
--------------------------------------------------------------------------------
                                7       SOLE VOTING POWER

         NUMBER OF                      1,200,000 shares of Common Stock,
           SHARES                       par value $0.01
      BENEFICIALLY OWNED        ------------------------------------------------
          BY EACH               8       SHARED VOTING POWER
         REPORTING
           PERSON                       None
            WITH                ------------------------------------------------
                                9       SOLE DISPOSITIVE POWER

                                        1,200,000 shares of Common Stock,
                                        par value $0.01
                                ------------------------------------------------
                                10      SHARED DISPOSITIVE POWER

                                        None
--------------------------------------------------------------------------------
11       AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                  1,200,000 shares of Common Stock, par value $0.01
--------------------------------------------------------------------------------
12       CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES

                                                                        [_]
--------------------------------------------------------------------------------
13       PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                  12.13%
--------------------------------------------------------------------------------
14       TYPE OF REPORTING PERSON

                  PN
--------------------------------------------------------------------------------

<PAGE>

----------------------------------           -----------------------------------
CUSIP NO. 023177-10-8                                              Page  3 of 11
----------------------------------           -----------------------------------


--------------------------------------------------------------------------------
         NAME OF REPORTING PERSON
1        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

                  Invemed Catalyst GenPar, LLC
--------------------------------------------------------------------------------
2        CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP       (a)     [_]
                                                                (b)     [X]

--------------------------------------------------------------------------------
3        SEC USE ONLY


--------------------------------------------------------------------------------
4        SOURCE OF FUNDS

                  OO
--------------------------------------------------------------------------------
5        CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
         ITEMS 2(d) or 2(e)
                                                                        [_]
--------------------------------------------------------------------------------
6        CITIZENSHIP OR PLACE OF ORGANIZATION

                  Delaware
--------------------------------------------------------------------------------
                                7       SOLE VOTING POWER

         NUMBER OF                      1,200,000 shares of Common Stock,
           SHARES                       par value $0.01
      BENEFICIALLY OWNED        ------------------------------------------------
          BY EACH               8       SHARED VOTING POWER
         REPORTING
           PERSON                       None
            WITH                ------------------------------------------------
                                9       SOLE DISPOSITIVE POWER

                                        1,200,000 shares of Common Stock,
                                        par value $0.01
                                ------------------------------------------------
                                10      SHARED DISPOSITIVE POWER

                                        None
--------------------------------------------------------------------------------
11       AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                  1,200,000 shares of Common Stock, par value $0.01
--------------------------------------------------------------------------------
12       CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES

                                                                        [_]
--------------------------------------------------------------------------------
13       PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                  12.13%
--------------------------------------------------------------------------------
14       TYPE OF REPORTING PERSON

                  OO
--------------------------------------------------------------------------------

<PAGE>

----------------------------------           -----------------------------------
CUSIP NO. 023177-10-8                                              Page  4 of 11
----------------------------------           -----------------------------------


--------------------------------------------------------------------------------
         NAME OF REPORTING PERSON
1        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

                  Gladwyne Catalyst GenPar, LLC
--------------------------------------------------------------------------------
2        CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP       (a)     [_]
                                                                (b)     [X]

--------------------------------------------------------------------------------
3        SEC USE ONLY


--------------------------------------------------------------------------------
4        SOURCE OF FUNDS

                  OO
--------------------------------------------------------------------------------
5        CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
         ITEMS 2(d) or 2(e)
                                                                        [_]
--------------------------------------------------------------------------------
6        CITIZENSHIP OR PLACE OF ORGANIZATION

                  Delaware
--------------------------------------------------------------------------------
                                7       SOLE VOTING POWER

         NUMBER OF                      None
           SHARES               ------------------------------------------------
      BENEFICIALLY OWNED        8       SHARED VOTING POWER
          BY EACH
         REPORTING                      1,200,000 shares of Common Stock,
           PERSON                       par value $0.01
            WITH                ------------------------------------------------
                                9       SOLE DISPOSITIVE POWER

                                        None
                                ------------------------------------------------
                                10      SHARED DISPOSITIVE POWER

                                        1,200,000 shares of Common Stock,
                                        par value $0.01
--------------------------------------------------------------------------------
11       AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                  1,200,000 shares of Common Stock, par value $0.01
--------------------------------------------------------------------------------
12       CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES

                                                                        [_]
--------------------------------------------------------------------------------
13       PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                  12.13%
--------------------------------------------------------------------------------
14       TYPE OF REPORTING PERSON

                  OO
--------------------------------------------------------------------------------

<PAGE>

----------------------------------           -----------------------------------
CUSIP NO. 023177-10-8                                              Page  5 of 11
----------------------------------           -----------------------------------


--------------------------------------------------------------------------------
         NAME OF REPORTING PERSON
1        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

                  Invemed Securities, Inc.
--------------------------------------------------------------------------------
2        CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP       (a)     [_]
                                                                (b)     [X]

--------------------------------------------------------------------------------
3        SEC USE ONLY


--------------------------------------------------------------------------------
4        SOURCE OF FUNDS

                  OO
--------------------------------------------------------------------------------
5        CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
         ITEMS 2(d) or 2(e)
                                                                        [_]
--------------------------------------------------------------------------------
6        CITIZENSHIP OR PLACE OF ORGANIZATION

                  New York
--------------------------------------------------------------------------------
                                7       SOLE VOTING POWER

         NUMBER OF                      None
           SHARES               ------------------------------------------------
      BENEFICIALLY OWNED        8       SHARED VOTING POWER
          BY EACH
         REPORTING                      1,200,000 shares of Common Stock,
           PERSON                       par value $0.01
            WITH                ------------------------------------------------
                                9       SOLE DISPOSITIVE POWER

                                        None
                                ------------------------------------------------
                                10      SHARED DISPOSITIVE POWER

                                        1,200,000 shares of Common Stock,
                                        par value $0.01
--------------------------------------------------------------------------------
11       AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                  1,200,000 shares of Common Stock, par value $0.01
--------------------------------------------------------------------------------
12       CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES

                                                                        [_]
--------------------------------------------------------------------------------
13       PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                  12.13%
--------------------------------------------------------------------------------
14       TYPE OF REPORTING PERSON

                  CO
--------------------------------------------------------------------------------

<PAGE>

----------------------------------           -----------------------------------
CUSIP NO. 023177-10-8                                              Page  6 of 11
----------------------------------           -----------------------------------


--------------------------------------------------------------------------------
         NAME OF REPORTING PERSON
1        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

                  Kenneth G. Langone
--------------------------------------------------------------------------------
2        CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP       (a)     [_]
                                                                (b)     [X]

--------------------------------------------------------------------------------
3        SEC USE ONLY


--------------------------------------------------------------------------------
4        SOURCE OF FUNDS

                  OO
--------------------------------------------------------------------------------
5        CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
         ITEMS 2(d) or 2(e)
                                                                        [_]
--------------------------------------------------------------------------------
6        CITIZENSHIP OR PLACE OF ORGANIZATION

                  United States
--------------------------------------------------------------------------------
                                7       SOLE VOTING POWER

         NUMBER OF                      None
           SHARES               ------------------------------------------------
      BENEFICIALLY OWNED        8       SHARED VOTING POWER
          BY EACH
         REPORTING                      1,200,000 shares of Common Stock,
           PERSON                       par value $0.01
            WITH                ------------------------------------------------
                                9       SOLE DISPOSITIVE POWER

                                        None
                                ------------------------------------------------
                                10      SHARED DISPOSITIVE POWER

                                        1,200,000 shares of Common Stock,
                                        par value $0.01
--------------------------------------------------------------------------------
11       AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                  1,200,000 shares of Common Stock, par value $0.01
--------------------------------------------------------------------------------
12       CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES

                                                                        [_]
--------------------------------------------------------------------------------
13       PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                  12.13%
--------------------------------------------------------------------------------
14       TYPE OF REPORTING PERSON

                  IN
--------------------------------------------------------------------------------

<PAGE>

----------------------------------           -----------------------------------
CUSIP NO. 023177-10-8                                              Page  7 of 11
----------------------------------           -----------------------------------


ITEM 1.  SECURITY AND ISSUER.

         This Statement on Schedule 13D (this "Statement") relates to the Common
Stock, par value $.01 per share (the "Common Stock"), of Ambassadors Group,
Inc., a Delaware corporation (the "Issuer"). The principal executive offices of
the Issuer are located at 110 S. Ferrall Street, Spokane, WA 99202.

ITEM 2.  IDENTITY AND BACKGROUND.

         (a) Invemed Catalyst Fund, L.P., a Delaware limited partnership (the
"Fund"), Invemed Catalyst GenPar, LLC, a Delaware limited liability company
("Catalyst GenPar"), Gladwyne Catalyst GenPar, LLC, a Delaware limited liability
company ("Gladwyne GenPar"), Invemed Securities, Inc. ("Invemed"), a New York
corporation, and Kenneth G. Langone ("Langone") are sometimes hereinafter
collectively referred to as the "Reporting Persons."

         The Reporting Persons are making this joint filing because they may be
deemed to constitute a "group" within the meaning of Section 13(d)(3) of the
Securities Exchange Act of 1934, although neither the fact of this filing nor
anything contained herein shall be deemed to be an admission by the Reporting
Persons that a group exists.

         (b)-(c)  (i) The principal business of the Fund is investing in
securities. The business address of the Fund is 375 Park Avenue, Suite 2205, New
York, New York 10152. The general partner of the Fund is Catalyst GenPar. The
principal business of Catalyst GenPar is being the general partner of the Fund.

                  (ii) The business address of Catalyst GenPar is 375 Park
Avenue, Suite 2205, New York, NY 10152. The managing members of Catalyst GenPar
are Gladwyne GenPar and Invemed.

                  (iii) The principal business of Gladwyne GenPar is being a
managing member of Catalyst GenPar. The business address of Gladwyne GenPar is
600 The Times Building, Ardmore, PA 19003.

         The name, residence or business address, present principal occupation
and citizenship of each member of Gladwyne GenPar are as follows:

<TABLE>
<CAPTION>
---------------------------- ------------------------------ --------------------------- ---------------------
                                    RESIDENCE OR                   PRINCIPAL
        NAME                       BUSINESS ADDRESS               OCCUPATION               CITIZENSHIP
---------------------------- ------------------------------ --------------------------- ---------------------
<S>                          <C>                            <C>                         <C>
Michael B. Solomon           600 The Times Building         Managing Member of          United States
                             Ardmore, PA 19003              Gladwyne GenPar
---------------------------- ------------------------------ --------------------------- ---------------------

Suzanne M. Present           600 The Times Building         Member of Gladwyne GenPar   Australia
                             Ardmore, PA 19003
---------------------------- ------------------------------ --------------------------- ---------------------
</TABLE>

<PAGE>

----------------------------------           -----------------------------------
CUSIP NO. 023177-10-8                                              Page  8 of 11
----------------------------------           -----------------------------------


<TABLE>
<CAPTION>
---------------------------- ------------------------------ --------------------------- ---------------------
                                    RESIDENCE OR                   PRINCIPAL
        NAME                       BUSINESS ADDRESS               OCCUPATION               CITIZENSHIP
---------------------------- ------------------------------ --------------------------- ---------------------
<S>                          <C>                            <C>                         <C>
Kathryn Casoria              600 The Times Building         Member of Gladwyne GenPar   United States
                             Ardmore, PA 19003
---------------------------- ------------------------------ --------------------------- ---------------------

Robert B. Friedman           600 The Times Building         Member of Gladwyne GenPar   United States
                             Ardmore, PA 19003
---------------------------- ------------------------------ --------------------------- ---------------------

Philip P. Young              600 The Times Building         Member of Gladwyne GenPar   United States
                             Ardmore, PA 19003
---------------------------- ------------------------------ --------------------------- ---------------------

William M. Sams              600 The Times Building         Member of Gladwyne GenPar   United States
                             Ardmore, PA 19003
---------------------------- ------------------------------ --------------------------- ---------------------
</TABLE>

                  (iv) Invemed's principal business is that of a holding
company. The business address of Invemed is 375 Park Avenue, Suite 2205, New
York, NY 10152. Invemed is ultimately controlled by Kenneth G. Langone.

         The name, current business address, present principal occupation or
employment and citizenship of each director and executive officer of Invemed
Securities, Inc. are as follows:

<TABLE>
<CAPTION>
---------------------------- ------------------------------ --------------------------- ---------------------
                                    RESIDENCE OR                   PRINCIPAL
        NAME                       BUSINESS ADDRESS               OCCUPATION               CITIZENSHIP
---------------------------- ------------------------------ --------------------------- ---------------------
<S>                          <C>                            <C>                         <C>
Kenneth G. Langone           375 Park Avenue                Chairman of the Board       United States
                             Suite 2205                     and President,
                             New York, NY  10152            Invemed Securities, Inc.
---------------------------- ------------------------------ --------------------------- ---------------------
Thomas Teague                Salem NationalLease            President, Salem            United States
                             Corporation                    NationalLease Corporation
                             P.O. Box 24788
                             Winston-Salem, NC 27114
---------------------------- ------------------------------ --------------------------- ---------------------
Steven D. Holzman            375 Park Avenue                Chief Executive Officer,    United States
                             Suite 2205                     Invemed Securities, Inc.
                             New York, NY 10152
---------------------------- ------------------------------ --------------------------- ---------------------
G. Allen Mebane              828 Woodward Road                                          United States
                             Mocksville, NC 27028
---------------------------- ------------------------------ --------------------------- ---------------------
John Baran                   375 Park Avenue                Chief Financial Officer,    United States
                             Suite 2205                     Invemed Securities, Inc.
                             New York, NY  10152
---------------------------- ------------------------------ --------------------------- ---------------------
</TABLE>

                  (v) Kenneth G. Langone's current principal occupation is that
of Chairman of the Board and President of Invemed, and his business address is
375 Park Avenue, Suite 2205, New York, NY 10152.

<PAGE>

----------------------------------           -----------------------------------
CUSIP NO. 023177-10-8                                              Page  9 of 11
----------------------------------           -----------------------------------


         (d)-(e) None of the Reporting Persons and none of the individuals
listed in this Item 2 has, during the last five years, been (i) convicted in a
criminal proceeding (excluding traffic violations or similar misdemeanors) or
(ii) a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding was or is subject to a
judgment, decree or final order enjoining future violations of, or prohibited or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.

ITEM 3.  SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.

         Pursuant to a Stock Purchase Agreement (the "Stock Purchase
Agreement"), dated as of July 23, 2003, between the Fund and each of John A.
Ueberroth and Peter V. Ueberroth (the "Sellers"), the Fund agreed to purchase
1,200,000 shares of Common Stock.

         The purchase was completed on July 29, 2003.

ITEM 4.  PURPOSE OF TRANSACTION.

         (a) The Reporting Persons acquired the shares of Common Stock for
investment purposes. The Reporting Persons may from time to time (i) acquire
additional securities of the Issuer (subject to availability at prices deemed
favorable) in the open market, in privately negotiated transactions or
otherwise, or (ii) dispose of the shares of Common Stock or any other securities
of the Issuer that the Reporting Persons may acquire, when prices are deemed
favorable in the open market, in privately negotiated transactions or otherwise.

         (d) The members of the board of directors of the Issuer, at a
telephonic board meeting on July 28, 2003, voted to elect Mr. Dale F. Frey to be
a director of the Issuer as of July 29, 2003.

ITEM 5.  INTEREST IN SECURITIES OF THE ISSUER.

         (a) As of the date of this Statement, the Fund beneficially owns
1,200,000 shares of Common Stock constituting 12.13% of the outstanding shares
of Common Stock (the percentage of shares owned being based upon 9,892,601
shares of Common Stock outstanding as of April 30, 2003, as disclosed in the
Issuer's Form 10-Q for the quarter ended March 31, 2003 filed by the Issuer on
May 14, 2003. Each of the persons listed in Item 2 of this Statement may also be
deemed to beneficially own (as that term is defined in Rule 13d-3 under the
Securities Exchange Act of 1934) the 1,200,000 shares of Common Stock
constituting 12.13% of the outstanding Shares of the Issuer. However, the
persons listed on Item 2 of this Statement (other than the Fund) disclaim
beneficial ownership of such shares of Common Stock.

         (b) The Fund has sole power to vote and dispose the 1,200,000 shares
reported herein. Catalyst GenPar, as the general partner of the Fund, has the
sole power to vote and dispose of the 1,200,000 shares of Common Stock owned by
the Fund. Each of Gladwyne GenPar and Invemed, as managing members of Catalyst
GenPar, may be deemed to have shared voting and dispositive power over the
shares of Common Stock owned by the Fund. Kenneth G. Langone, as the majority
shareholder and


<PAGE>

----------------------------------           -----------------------------------
CUSIP NO. 023177-10-8                                              Page 10 of 11
----------------------------------           -----------------------------------


Chairman of the Board and President of Invemed, may be deemed to have shared
voting and dispositive power over the shares of Common Stock owned by the Fund.

ITEM 6.  CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIP WITH RESPECT TO
         THE ISSUER.

         The members of Gladwyne GenPar are authorized and empowered to vote and
dispose of the securities held by the Fund. Accordingly, Gladwyne GenPar and the
members of Gladwyne GenPar may, from time to time, consult among themselves and
coordinate the voting and disposition of the Issuer's shares of Common Stock as
well as such other action taken on behalf of the Reporting Persons with respect
to the Issuer's shares of Common Stock as they deem to be in the collective
interest of the Reporting Persons.

         On July 29, 2003 and in connection with the consummation of the
transactions contemplated by the Stock Purchase Agreement, the Issuer and the
Fund entered into a Letter Agreement (the "Letter Agreement") pursuant to which
the Issuer agreed to elect a representative of the Fund to the Issuer's board of
directors, as described therein.

         On July 29, 2003 and in connection with the consummation of the
transactions contemplated by the Stock Purchase Agreement, the Issuer and the
Fund entered into the Registration Rights Agreement, dated as of July 29, 2003
(the "Registration Rights Agreement"). Pursuant to the Registration Rights
Agreement, the Fund has been granted certain shelf registration rights with
respect to its shares of Common Stock.

         The foregoing summaries of the Stock Purchase Agreement, the
Registration Rights Agreement and the Letter Agreement are qualified in their
entirety by reference to Exhibits 2, 3 and 4 which are incorporated herein by
reference.

ITEM 7.  MATERIALS TO BE FILED AS EXHIBITS.

Exhibit 1:        Agreement relating to the filing of joint acquisition
                  statements as required by Rule 13d-1(k)(1) under the
                  Securities Exchange Act of 1934, as amended.

Exhibit 2:        Stock Purchase Agreement, dated as of July 23, 2003, between
                  the Fund and the Sellers.

Exhibit 3:        Letter Agreement, dated as of July 29, 2003, between the
                  Issuer and the Fund.

Exhibit 4:        Registration Rights Agreement, dated as of July 29, 2003,
                  between the Issuer and the Fund.

<PAGE>

----------------------------------           -----------------------------------
CUSIP NO. 023177-10-8                                              Page 11 of 11
----------------------------------           -----------------------------------


                                    SIGNATURE

         After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.

Dated as of  July 30, 2003.

                                    INVEMED CATALYST FUND, L.P.

                                    By: INVEMED CATALYST GENPAR, LLC,
                                        General Partner

                                        By: GLADWYNE CATALYST GENPAR, LLC,
                                            Managing Member


                                            By: /s/ Suzanne M. Present
                                                -------------------------------
                                                Name:  Suzanne M. Present
                                                Title:  Member


                                    INVEMED CATALYST GENPAR, LLC

                                    By: GLADWYNE CATALYST GENPAR, LLC,
                                        Managing Member


                                        By: /s/ Suzanne M. Present
                                            -----------------------------------
                                            Name:  Suzanne M. Present
                                            Title:  Member


                                    GLADWYNE CATALYST GENPAR, LLC


                                    By: /s/ Suzanne M. Present
                                        ---------------------------------------
                                        Name:  Suzanne M. Present
                                        Title:  Member


                                    INVEMED SECURITIES, INC.


                                    By: /s/ Kenneth G. Langone
                                        ---------------------------------------
                                        Name: Kenneth G. Langone
                                        Title: Chairman of the Board
                                               and President


                                    /s/ Kenneth G. Langone
                                    -------------------------------------------
                                    Kenneth G. Langone


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>ex1_sc13d-ambass.txt
<DESCRIPTION>EXHIBIT 1
<TEXT>

         EXHIBIT 1
         to SCHEDULE 13D

                           JOINT ACQUISITION STATEMENT
                           PURSUANT TO RULE 13D-(k)(1)

             The undersigned acknowledge and agree that the foregoing statement
on Schedule 13D is filed on behalf of each of the undersigned and that all
subsequent amendments to this statement on Schedule 13D shall be filed on behalf
of each of the undersigned without the necessity of filing additional joint
acquisition statements. The undersigned acknowledge that each shall be
responsible for the timely filing of such amendments, and for the completeness
and accuracy of the information concerning him, her or it contained herein, but
shall not be responsible for the completeness and accuracy of the information
concerning the other entities or persons, except to the extent that he, she or
it knows or has reason to believe that such information is accurate.

Dated:  July 30, 2003


                                    INVEMED CATALYST FUND, L.P.

                                    By: INVEMED CATALYST GENPAR, LLC,
                                        General Partner

                                        By: GLADWYNE CATALYST GENPAR, LLC,
                                            Managing Member


                                            By: /s/ Suzanne M. Present
                                                -------------------------------
                                                Name:  Suzanne M. Present
                                                Title:  Member


                                    INVEMED CATALYST GENPAR, LLC

                                    By: GLADWYNE CATALYST GENPAR, LLC,
                                        Managing Member


                                        By: /s/ Suzanne M. Present
                                            -----------------------------------
                                            Name:  Suzanne M. Present
                                            Title:  Member


                                    GLADWYNE CATALYST GENPAR, LLC


                                    By: /s/ Suzanne M. Present
                                        ---------------------------------------
                                        Name:  Suzanne M. Present
                                        Title:  Member


                                    INVEMED SECURITIES, INC.


                                    By: /s/ Kenneth G. Langone
                                        ---------------------------------------
                                        Name: Kenneth G. Langone
                                        Title: Chairman of the Board
                                               and President


                                    /s/ Kenneth G. Langone
                                    -------------------------------------------
                                    Kenneth G. Langone



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>ex2_sc13d-ambass.txt
<DESCRIPTION>EXHIBIT 2
<TEXT>

                                                                       EXHIBIT 2
                                                                       ---------


                            STOCK PURCHASE AGREEMENT

         This STOCK PURCHASE AGREEMENT (this "AGREEMENT") is made and entered
into as of July 23, 2003 by and among each and all of those individuals and
entities identified on EXHIBIT A, attached hereto (each a "SELLER" and
collectively, the "SELLERS") and Invemed Catalyst Fund, L.P., a Delaware limited
partnership (the "PURCHASER"), with reference to the following:

         WHEREAS, the Sellers collectively own shares of unregistered common
stock in Ambassadors Group, Inc., a Delaware corporation (the "COMPANY"), par
value $0.01 per share, and each Seller wishes to sell the number of shares set
forth opposite each such Seller's name in EXHIBIT A, attached hereto (such
shares collectively, the "COMMON Stock"); and

         WHEREAS, the Sellers desire to sell to the Purchaser, and the Purchaser
desires to purchase from the Sellers, the Common Stock.

         NOW, THEREFORE, in consideration of the conditions and promises herein
contained, and subject to the terms and conditions of this Agreement, the
parties hereto agree as follows:

1.       SALE, PURCHASE AND CLOSING

         1.1      At the Closing (defined herein) and subject to the terms and
conditions of this Agreement, the Purchaser agrees to purchase from each Seller,
and each Seller agrees to sell to the Purchaser, all right, title and interest
in each Seller's respective portion of the Common Stock, constituting an
aggregate of 1,200,000 shares of Common Stock (the "SHARES"). The parties hereto
acknowledge and agree that on the Closing, of the 1,200,000 Shares, a total of
300,000 Shares may be sold by the children of, and/or trusts controlled by, the
Sellers.

         1.2      At the Closing, the Purchaser shall pay an aggregate purchase
price of $20,400,000 (the "PURCHASE PRICE"), constituting $17.00 per Share,
which shall be apportioned to each Seller pro rata.

         1.3      The purchase and sale of the Common Stock (the "CLOSING")
shall take place at 10:00 a.m. (local time) on the later of (i) July 29, 2003 or
(ii) the date upon which the closing conditions specified in Article 4 hereof
are met (the "CLOSING DATE") at the offices of Richman, Mann, Chizever, Phillips
& Duboff, PLC, 9601 Wilshire Boulevard, Penthouse, Beverly Hills, California
90210 or at such other place and time as the Sellers and the Purchaser shall
mutually agree. Deliveries at the Closing shall be in such form and manner as
described in EXHIBIT B, attached hereto.

2.       REPRESENTATIONS AND WARRANTIES OF SELLERS

         Each and every Seller severally (and not jointly) represents and
warrants the following:

         2.1      The Sellers are the owners of record and hold good and valid
title to the Shares, and the Shares are free of any and all liens, encumbrances,
mortgages, deeds of trust, pledge, assignment, security interests or transfer
restrictions other than those specified herein.

<PAGE>

                                                                               2


         2.2      Each Seller has full right, power, authority and capacity to
enter into this Agreement and to consummate the transactions contemplated hereby
including, without limitation, the authority to transfer the Shares to the
Purchaser, and has taken all necessary action to authorize the execution,
delivery and performance of this Agreement. Each Seller which is not an
individual has received all approval required for the authorization, execution
and delivery of this Agreement and all transactions contemplated hereunder. This
Agreement has been duly executed and delivered by each Seller and constitutes a
legal, valid and legally binding obligation of each Seller, enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium or other similar laws
affecting creditors' rights and remedies generally, and subject, as to
enforceability, to general principles of equity (regardless of whether
enforcement is sought in a proceeding at law or in equity).

         2.3      (a) The performance by each Seller of such Seller's
obligations hereunder will not (i) conflict with or violate any laws in effect
as of the date of this Agreement applicable to such Seller or by which any of
such Seller's properties or assets is bound or (ii) result in any breach of,
constitute a default (or an event that with notice or lapse of time or both
would become a default) under, give to any other entity any right of
termination, amendment acceleration or cancellation of, require payment under,
or result in the creation of a lien or encumbrance on any of the properties or
assets of such Seller pursuant to, any note, bond, mortgage, indenture,
contract, agreement, lease, license, permit, franchise, or other instrument or
obligation to which such Seller is a party or by which such Seller or any of
such Seller's properties or assets is bound.

                  (b) The performance by each Seller of such Seller's
obligations hereunder will not, require such Seller to obtain any consent,
registration, approval, authorization or permit of, to make any filing with, or
to give notification to, any person, including any governmental entities, based
on any law in effect as of the date of this Agreement, except those which have
been or will be timely obtained, made or given, and no lapse of a waiting period
under any law or regulation is necessary or required in connection with the
execution, delivery or performance of this Agreement.

         2.4      To each Seller's knowledge, as of the respective dates of
their filing with the Securities and Exchange Commission (the "SEC"), all
reports, registration statements and other filings of the Company, together with
any amendments thereto (the "COMPANY SEC REPORTS") complied, and all such
reports, registration statements and other filings to be filed by the Company
with the SEC prior to the Closing Date will comply, in all material respects
with the applicable requirements of the Securities Act of 1933, as amended (the
"SECURITIES ACT"), the Securities Exchange Act of 1934, as amended (the
"EXCHANGE ACT"), and the rules and regulations of the SEC promulgated
thereunder, and did not at the time they were filed with the SEC, or will not at
the time they are filed with the SEC, contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
in order to make the statements therein, in the light of the circumstances under
which they are made, not misleading.

3.       REPRESENTATIONS AND WARRANTIES OF PURCHASER

         The Purchaser represents and warrants to each and all of the Sellers as
follows:

         3.1      The Purchaser has all requisite power and authority (corporate
or otherwise) to execute, deliver and perform this Agreement and the
transactions contemplated hereby, and the

<PAGE>

                                                                               3


execution, delivery and performance by the Purchaser of this Agreement has been
duly authorized by all requisite action by the Purchaser and this Agreement,
when executed and delivered by the Purchaser, constitutes a valid and binding
obligation of the Purchaser, enforceable against the Purchaser in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization,
fraudulent conveyance, moratorium or other similar laws affecting creditors'
rights and remedies generally, and subject, as to enforceability, to general
principles of equity (regardless of whether enforcement is sought in a
proceeding at law or in equity).

         3.2      The Purchaser acknowledges and agrees that none of the
Sellers, either individually or in the aggregate, nor any of their respective
representatives, affiliates and/or agents, has made any representation or
warranty to the Purchaser about the Company or the Common Stock other than those
representations and warranties set forth in this Agreement, and that such
Purchaser has not relied upon any other representation or warranty, express or
implied, in purchasing the Shares.

         3.3      INVESTMENT REPRESENTATIONS

                  (a)      The Shares to be acquired by the Purchaser will be
acquired for investment for the Purchaser's own account, not as a nominee or
agent, and not with a view to the resale or distribution thereof. The Purchaser
has no present intention of selling, granting any participation in, or otherwise
distributing the Shares within the meaning of Section 2(11) of the Securities
Act.

                  (b)      The Purchaser is an "ACCREDITED INVESTOR" as that
term is defined in Rule 501 of Regulation D promulgated under the Securities
Act. The Purchaser understands all issues and risks concerning or related to the
purchase of restricted common stock, including but not limited to limitations on
liquidity, and is able to bear the economic risk of the purchase of the Shares
pursuant to the terms of this Agreement, including a complete loss of the
Purchaser's investment in the Shares.

                  (c)      The Purchaser understands that the Shares have not
been registered under the Securities Act or qualified under any state securities
laws in reliance on exemptions from registration provided thereunder, and
further understands that the Purchaser is acquiring the Shares without being
furnished any literature or prospectus. The Purchaser understands and agrees
that, when acquired by the Purchaser pursuant to this Agreement, the Shares will
be restricted within the meaning of the Securities Act, and may not be sold,
transferred or otherwise disposed of without registration under the Securities
Act or an exemption therefrom, and shall bear a legend indicating such
restrictions on transfer.

                  (d)      During the course of the transaction contemplated by
this Agreement, and before purchasing the Shares, the Purchaser has had the
opportunity (i) to be provided with financial and other written information
about the Company, (ii) to ask questions and receive answers concerning the
terms and conditions of this Agreement, an investment in the Company, and the
business of the Company and its finances, and (iii) to review all documents,
registration statements and prospectuses publicly filed by the Company. The
Purchaser has, to the extent such Purchaser has availed himself of this
opportunity, received satisfactory information and answers.

<PAGE>

                                                                               4


4.       CONDITIONS PRECEDENT TO EACH PARTY'S OBLIGATIONS

         4.1      The obligation of the Sellers to consummate the Closing shall
be subject to the satisfaction (or waiver by the Sellers) of the following
conditions on or prior to the Closing Date: (i) the representations and
warranties of the Purchaser contained in this Agreement shall be true and
correct in all material respects on and as of the Closing Date with the same
effect as though such representations and warranties had been made on, as of and
with reference to the Closing Date (except to the extent such representations
and warranties specifically relate to a prior date); and (ii) the Sellers shall
have received their pro-rata portion of the Purchase Price.

         4.2      The obligation of the Purchaser to consummate the Closing
shall be subject to the satisfaction (or waiver by the Purchaser) of the
following conditions on or prior to the Closing Date: (i) the representations
and warranties of the Sellers contained in this Agreement shall be true and
correct in all material respects on and as of the Closing Date with the same
effect as though such representations and warranties had been made on, as of and
with reference to the Closing (except to the extent such representations and
warranties specifically relate to a prior date); (ii) Dale Frey shall have been
elected to the Company's Board of Directors in accordance with the terms of the
Management Rights Letter by and among the Company and the Purchaser in
substantially the form attached hereto as EXHIBIT C; (iii) the Company shall
have provided the Purchaser with an executed Registration Rights Agreement by
and among the Company and the Purchaser in substantially the form attached
hereto as EXHIBIT D, and (iv) the Purchaser shall have received from the Seller
certificates registered in the name of the Purchaser representing the Shares.

5.       TERMINATION

         5.1      TERMINATION. This Agreement may be terminated prior to the
Closing as follows:

                  (a)      at any time on or prior to the Closing Date, by
mutual written consent of the Sellers and the Purchaser;

                  (b)      at the election of the Sellers, if there has been a
material breach of any representation or warranty on the part of the Purchaser
contained in this Agreement, which breach has not been cured within fifteen (15)
days notice to the Purchaser of such breach; or

                  (c)      at the election of the Purchaser, if there has been a
material breach of any representation, warranty, covenant or agreement on the
part of the Sellers contained in this Agreement, which breach has not been cured
within fifteen (15) days notice to the Sellers of such breach.

         If this Agreement so terminates, it shall become null and void and have
no further force or effect, except as provided in Section 5.2.

         5.2      SURVIVAL. If this Agreement is terminated and the transactions
contemplated hereby are not consummated as described above, this Agreement shall
become void and of no further force and effect; provided, however, that (a) none
of the parties hereto shall have any liability in respect of a termination of
this Agreement pursuant to Section 5.1(a) and (b) nothing shall relieve any of
the parties from liability for actual damages resulting from a termination of
this Agreement pursuant to Section 5.1(b) or 5.1(c); and provided, further, that
none of the parties hereto shall have any liability

<PAGE>

                                                                               5


for speculative, indirect, unforeseeable or consequential damages resulting from
any legal action relating to any termination of this Agreement.

6.       MISCELLANEOUS

         6.1      No party hereto shall be obligated to pay any commission,
brokerage fee or finder's fee based on any alleged agreement or understanding
between any such party and a third person in respect of the transactions
contemplated hereby.

         6.2      No Seller may sell, license, transfer or assign (by operation
of law or otherwise) any of such party's rights or interests in this Agreement
or delegate such party's duties or obligations under this Agreement, in whole or
in part, without the prior written consent of the Purchaser, and the Purchaser
may not sell, license, transfer or assign (by operation of law or otherwise) any
of such party's rights or interests in this Agreement or delegate such party's
duties or obligations under this Agreement (except to any of such party's
affiliates), in whole or in part, without the prior written consent of each and
all of the Sellers or duly authorized representative thereof. Subject to the
foregoing, this Agreement shall bind and inure to the benefit of the parties
hereto and their respective successors and assigns.

         6.3      All notices, demands and requests of any kind to be delivered
to any party in connection with this Agreement shall be in writing and shall be
deemed to have been duly given if personally delivered or if sent by
internationally-recognized overnight courier or by registered or certified mail,
return receipt requested and postage prepaid, addressed as follows:

                  (a)      if to Purchaser, to:

                           Invemed Catalyst Fund, L.P.
                           375 Park Avenue, Suite 2205
                           New York, NY  10152
                           Attention:  Suzanne Present
                           Telecopy: (212) 813-0249
                           Telephone: (212) 843-0542

                           with a copy to:

                           Paul, Weiss, Rifkind, Wharton & Garrison
                           1285 Avenue of the Americas
                           New York, New York 10019-6064
                           Attention: Douglas A. Cifu, Esq.
                           Telecopy: (212) 492-0436
                           Telephone: (212) 373-3436

<PAGE>

                                                                               6


                  (b)      If to Sellers, to each and all addresses specified
with respect to each Seller in EXHIBIT A

                           with a copy to:

                           Richman, Mann, Chizever, Phillips & Duboff, PLC
                           9601 Wilshire Boulevard
                           Penthouse
                           Beverly Hills, California 90210
                           Attention: Gerald M. Chizever, Esq.
                           Telecopy: (310) 274-2831
                           Telephone: (310) 274-8300

or to such other address as the party to whom notice is to be given may have
furnished to the other parties to this Agreement in writing in accordance with
the provisions of this Section 6.3. Any such notice or communication shall be
deemed to have been received (i) in the case of personal delivery, on the date
of such delivery, (ii) in the case of internationally-recognized overnight
courier, on the next business day after the date when sent and (iii) in the case
of mailing, on the third business day following that on which the piece of mail
containing such communication is posted.

         6.4      This Agreement, including any and all exhibits hereto,
constitutes the entire agreement between the parties hereto. The provisions of
this Agreement supersede all previous communications, negotiations,
representations or agreements, either oral or written, with respect to any
transaction relating to or arising from this Agreement or terms described
herein. This Agreement may be modified or amended only by a written document
executed by all parties.

         6.5      This Agreement and the rights and remedies of each party
arising out of or relating to this Agreement (including, without limitation,
equitable remedies) shall be solely governed by, interpreted under, and
construed and enforced in accordance with the laws (without regard to the
conflicts of law principles thereof) of the State of California, as if this
Agreement were made, and as if its obligations are to be performed, wholly
within the State of California.

         6.6      This Agreement may be executed in any number of counterparts,
and each such counterpart of this Agreement shall be deemed to be an original
instrument, but all such counterparts together shall constitute but one
agreement. Facsimile counterpart signatures to this Agreement shall be
acceptable and binding.

         6.7      All representations and warranties made by any party in
connection with any transaction contemplated by this Agreement shall survive the
execution and delivery of this Agreement, the performance or consummation of any
transaction described in this Agreement, and the termination of this Agreement.

                       [SIGNATURES ON THE FOLLOWING PAGE]



<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
duly executed as of the date first written above.

                                        PURCHASER:

                                        INVEMED CATALYST FUND, L.P.
                                        A DELAWARE LIMITED PARTNERSHIP

                                        By:  Invemed Catalyst GenPar, LLC,
                                        its general partner

                                        By:  Gladwyne Catalyst GenPar, LLC,
                                        its managing member


                                        /s/ Suzanne Present
                                        ---------------------------------
                                        Name:  Suzanne Present
                                        Title:    Member

                                        SELLERS:


                                        /s/ John A. Ueberroth
                                        ---------------------------------
                                        John A. Ueberroth


                                        /s/ Peter V. Ueberroth
                                        ---------------------------------
                                        Peter V. Ueberroth



<PAGE>

                                                                       EXHIBIT A
                                                                       ---------

                                     SELLERS
                                     -------


NAME AND ADDRESS                         SHARES OF COMMON STOCK
----------------                         ----------------------

1.   John A. Ueberroth                   600,000 Shares of which 100,000 Shares
     c/o Ambassadors Performance Group   are to be sold by the children of,
     1071 Camelback Street               and/or a trusts controlled
     Newport Beach, CA 92660-3228        by, John A. Ueberroth.

2.   Peter V. Ueberroth                  600,000 Shares of which 200,000
     P.O. Box 100                        Shares are to be sold by the
                                         children of, and/or trusts controlled
                                         by, Peter V. Ueberroth.



<PAGE>

                                                                       EXHIBIT B
                                                                       ---------


                      MANNER AND FORM OF CLOSING DELIVERIES
                      -------------------------------------

On the Closing and upon the receipt of the Purchase Price, the Sellers shall
cause to be delivered to the Purchaser stock certificates representing the
Shares to be purchased hereunder in a manner and form to be agreed upon in good
faith by the parties.




</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>5
<FILENAME>ex3_sc13d-ambass.txt
<DESCRIPTION>EXHIBIT 3
<TEXT>

                                                                       EXHIBIT 3
                                                                       ---------


                             Ambassadors Group, Inc.
                            110 South Ferrall Street
                                Spokane, WA 99202

                                  July 29, 2003

Invemed Catalyst Fund, L.P.
375 Park Avenue, Suite 2205
New York, NY 10152

Ladies and Gentlemen:

         This letter agreement grants certain rights to Invemed Catalyst Fund,
L.P. (the "Fund") in connection with the Fund's purchase and/or holding of
Ambassadors Group, Inc. (the "Company") common stock, par value $0.01 (the
"Common Stock") pursuant to that certain Stock Purchase Agreement, dated July
23, 2003, by and among the Fund, John A. Ueberroth and Peter V. Ueberroth (the
"Purchase Agreement").

         As a condition to the Fund's obligation to consummate the purchase of
Common Stock under the Purchase Agreement, the Company hereby agrees that the
Board of Directors of the Company (the "Board") shall, as of the date hereof,
fill the existing vacancy on the Board with one person designated by the Fund
(the "Fund Designee"), which designee shall initially be Dale Frey. The Fund
Designee shall serve in accordance with the Company's Certificate of
Incorporation and Bylaws until the next succeeding annual meeting of
stockholders of the Company to be held after such election for the purpose of
electing directors of the class of which the Fund Designee is a member.

         The Company further agrees that, for as long as the Fund or its
affiliates continue to beneficially own in the aggregate not less than 600,000
shares of Common Stock (subject to adjustments if the Company pays a dividend in
shares of Common Stock or distributes shares of Common Stock to the holders of
Common Stock, subdivides or combines the Common Stock) (the "Minimum Ownership
Threshold"), commencing with the next succeeding annual meeting of the
stockholders of the Company at which directors of the class of which the Fund
Designee is a member are elected, and at each annual meeting of the stockholders
of the Company thereafter held for the purpose of electing directors of such
class, the Fund shall be entitled to designate to the Board the Fund Designee to
serve as a director of the Company. The Company covenants that it shall cause
such Fund Designee to be included in the slate of nominees recommended by the
Board to the stockholders for election as directors, and the Company shall use
its reasonable best efforts to cause the election of such Fund Designee,
including using its reasonably best efforts to cause officers of the Company who
hold proxies (unless otherwise directed by the stockholder submitting such
proxy), if any, to vote such proxies in favor of the election of such Fund
Designee, unless the Board determines in good faith, with the written advice of
outside counsel, that it would be inconsistent with their fiduciary duties to
take such actions. As long as the Fund or its affiliates continues to
beneficially own in the aggregate not less than the Minimum Ownership Threshold,
in the event that


                                       1

<PAGE>

the Fund Designee shall cease to serve as a director for any reason, the Company
shall use its reasonable best efforts to cause any vacancy resulting thereby to
be filled by another designee of the Fund, provided that such other designee
must be approved by the Company and such approval shall be in the sole and
absolute discretion of the Company.

         The Additional Rights (as defined below) granted under this letter
shall be SUSPENDED during any period in which the Company's Board of Directors
includes a representative then currently designated by the Fund as described
above.

         The Additional Rights granted under this letter shall CEASE if the Fund
shall fail to hold at least 600,000 shares of Common Stock (subject to
adjustments if the Company pays a dividend in shares of Common Stock or
distributes shares of Common Stock to the holders of Common Stock, subdivides or
combines the Common Stock).

         Subject to the above limitations, the Fund shall have the following
rights (the "Additional Rights"): to make proposals, recommendations and
suggestions to the Company's officers and directors relating to the business and
affairs of the Company.

         Our respective signatures below indicate our mutual assent to the terms
of this letter agreement as of the date set forth above.


                                        Very truly yours,

                                        AMBASSADORS GROUP, INC.



                                        By: /s/ Jeffrey D. Thomas
                                            -----------------------------
                                            Name: Jeffrey D. Thomas
                                            Title: Chief Executive Officer

Agreed to and accepted:

INVEMED CATALYST FUND, L.P.



By:  Invemed Catalyst GenPar, LLC,
its general partner

By:  Gladwyne Catalyst GenPar, LLC,
its managing member


/s/ Suzanne Present
-------------------------------
Name:  Suzanne Present
Title:    Member



                                       2

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>6
<FILENAME>ex4_sc13d-ambass.txt
<DESCRIPTION>EXHIBIT 4
<TEXT>

                                                                       EXHIBIT 4
                                                                       ---------



                          REGISTRATION RIGHTS AGREEMENT

                                 by and between

                           INVEMED CATALYST FUND, L.P.

                                       and

                             AMBASSADORS GROUP, INC.

                               Dated July 29, 2003


         REGISTRATION RIGHTS AGREEMENT (the "AGREEMENT") dated July 29, 2003 by
and between Invemed Catalyst Fund, L.P., a Delaware limited partnership ("ICF")
and Ambassadors Group, Inc., a Delaware corporation (the "COMPANY").

                              W I T N E S S E T H :

         WHEREAS, ICF and each of John A. Ueberroth and Peter V. Ueberroth
(collectively, the "SELLERS") have entered into a Stock Purchase Agreement,
dated as of July 23, 2003 (such Stock Purchase Agreement, as amended or
otherwise modified from time to time, the "PURCHASE AGREEMENT"), pursuant to
which the Sellers (and the Sellers' children and/or trusts controlled by the
Sellers) have sold, and ICF has purchased, an aggregate of 1,200,000 shares of
Common Stock, par value $0.01 per share, of the Company (the "COMMON SHARES").

         WHEREAS, in order to induce ICF to enter into the Stock Purchase
Agreement, the board of directors of the Company has authorized and approved the
grant by the Company of certain registration rights in respect of the
Registrable Securities (as defined below) on the terms and subject to the
conditions set forth herein.

         NOW, THEREFORE, in consideration of the premises and of the mutual
agreements contained herein, and for other good and valuable consideration the
receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound hereby, the parties hereto agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         As used in this Agreement, the following terms shall have the following
meanings:

         "AFFILIATE" shall mean (i) with respect to any Person, any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such Person, which shall be deemed to include for ICF, any
general or


                                        1
<PAGE>

limited partner or member of ICF, and (ii) with respect to any individual, shall
also mean the spouse, sibling, child, stepchild, grandchild, niece, nephew or
parent of such Person, or the spouse thereof.

         "BLACKOUT NOTICE" shall have the meaning set forth in Section 2.3.

         "BLACKOUT PERIOD" shall have the meaning set forth in Section 2.3.

         "COMMON SHARES" shall have the meaning set forth in the recitals
hereto.

         "COMPANY" shall have the meaning set forth in the preamble.

         "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended from time to time, and the rules and regulations thereunder, or any
successor statute.

         "HOLDERS" shall mean the Initial Holder and any of its Affiliates (for
so long as any such Person remains an Affiliate), for so long as they own any
Registrable Securities and such of its respective successors and permitted
assigns (including any permitted transferees of Registrable Securities) who
acquire or are otherwise the transferee of Registrable Securities, directly or
indirectly, from such Initial Holder (or any subsequent Holder), for so long as
such successors and permitted assigns own any Registrable Securities.

         "HOLDERS' COUNSEL" shall mean legal counsel representing the Holders of
Registrable Securities participating in such registration.

         "INITIAL HOLDER" shall mean ICF.

         "INSPECTORS" shall have the meaning set forth in Section 3.1(g).

         "MAJORITY HOLDERS" shall mean one or more Holders of Registrable
Securities who would hold a majority of the Registrable Securities then
outstanding.

         "MAJORITY HOLDERS OF THE REGISTRATION" shall mean, with respect to a
particular registration, one or more Holders of Registrable Securities who would
hold a majority of the Registrable Securities to be included in such
registration.

         "NASD" shall mean the National Association of Securities Dealers, Inc.

         "PERSON" shall mean any individual, firm, partnership, corporation,
trust, joint venture, association, joint stock company, limited liability
company, unincorporated organization or any other entity or organization,
including a government or agency or political subdivision thereof, and shall
include any successor (by merger or otherwise) of such entity.

         "PROSPECTUS" shall mean the prospectus included in a Registration
Statement (including, without limitation, any preliminary prospectus and any
prospectus


                                        2
<PAGE>

that includes any information previously omitted from a prospectus filed as part
of an effective registration statement in reliance upon Rule 430A promulgated
under the Securities Act), and any such Prospectus as amended or supplemented by
any prospectus supplement, and all other amendments and supplements to such
Prospectus, including post-effective amendments, and in each case including all
material incorporated by reference (or deemed to be incorporated by reference)
therein.

         "RECORDS" shall have the meaning set forth in Section 3.1(g).

         "REGISTRABLE SECURITIES" shall mean (i) the Common Shares sold pursuant
to the Purchase Agreement and (ii) any other securities of the Company (or any
successor or assign of the Company, whether by merger, consolidation, sale of
assets or otherwise) which may be issued or issuable with respect to, in
exchange for, or in substitution of, the Registrable Securities referenced in
clause (i) above by reason of any dividend or stock split, combination of
shares, merger, consolidation, recapitalization, reclassification,
reorganization, sale of assets or similar transaction. As to any particular
Registrable Securities, such securities shall cease to be Registrable Securities
when (A) a registration statement with respect to the sale of such securities
shall have been declared effective under the Securities Act and such securities
shall have been disposed of in accordance with such registration statement, (B)
such securities have been otherwise transferred, a new certificate or other
evidence of ownership for them not bearing the legend restricting further
transfer shall have been delivered by the Company and subsequent public
distribution of them shall not require registration under the Securities Act,
(C) such securities shall have ceased to be outstanding, or (D) such securities
become eligible for sale under Rule 144(k) without any volume, manner of sale or
other restrictions.

         "REGISTRATION EXPENSES" shall mean any and all expenses incident to
performance of or compliance with this Agreement by the Company and its
subsidiaries, including, without limitation, (i) all SEC, stock exchange, NASD
and other registration, listing and filing fees, (ii) all fees and expenses
incurred in connection with compliance with state securities or blue sky laws
and compliance with the rules of any stock exchange (including fees and
disbursements of counsel in connection with such compliance and the preparation
of a blue sky memorandum and legal investment survey), (iii) all expenses of any
Persons retained by the Company in preparing or assisting in preparing, word
processing, printing, distributing, mailing and delivering any Registration
Statement, any Prospectus, transmittal letters, securities sales agreements,
securities certificates and other documents relating to the performance of or
compliance with this Agreement, (iv) the fees and disbursements of counsel for
the Company, (v) the fees and disbursements of all independent public
accountants (including the expenses of any audit and/or "cold comfort" letters)
and the fees and expenses of other Persons, including experts, retained by the
Company, and (vi) premiums and other costs of policies of insurance purchased by
the Company as designated by the Board of Directors of the Company, if any,
against liabilities arising out of the public offering of the Registrable
Securities being registered.


                                        3
<PAGE>

         "REGISTRATION STATEMENT" shall mean any registration statement of the
Company which covers any Registrable Securities and all amendments and
supplements to any such Registration Statement, including post-effective
amendments, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference (or deemed to be
incorporated by reference) therein.

         "SEC" shall mean the Securities and Exchange Commission, or any
successor agency having jurisdiction to enforce the Securities Act.

         "SECURITIES ACT" shall mean the Securities Act of 1933, as amended from
time to time, and the rules and regulations thereunder, or any successor
statute.

         "SHELF REGISTRATION PERIOD" shall have the meaning set forth in Section
2.1(b).

         "SHELF REGISTRATION STATEMENT" shall have the meaning set forth in
Section 2.1(a).


                                   ARTICLE II
                      REGISTRATION UNDER THE SECURITIES ACT

         2.1      SHELF REGISTRATION STATEMENT.

                  (a)      The Company: (A) shall cause to be filed with the
SEC, on or before September 30, 2003, a shelf registration statement (the "SHELF
REGISTRATION STATEMENT") on an appropriate form under the Securities Act,
relating solely to the offer and sale of all the Registrable Securities by the
Holders thereof from time to time in accordance with the methods of distribution
specified by the Initial Holder as set forth in the Registration Statement and
Rule 415 under the Securities Act; and (B) shall use its best efforts to have
such Shelf Registration declared effective by the SEC as soon as practicable
thereafter; provided, however, that no Holder (other than the Initial Holder)
shall be entitled to have the Registrable Securities held by it covered by such
Registration Statement unless such Holder agrees in writing to be bound by all
the provisions of this Agreement applicable to such Holder.

                  (b)      The Company shall use its best efforts to keep the
Shelf Registration Statement continuously effective, supplemented and amended in
order to permit the Prospectus included therein to be lawfully delivered by the
Holders of the Registrable Securities through the date on which all of the
Registrable Securities covered by such Shelf Registration may be sold pursuant
to Rule 144(k) under the Securities Act (or any successor provision having
similar effect) without any volume, manner of sale or other restrictions, or
such shorter period that will terminate on the date on which all of the
Registrable Securities have been sold pursuant to an effective registration
statement (in any such case, such period being called the "SHELF REGISTRATION
PERIOD"); provided, however, that prior to the termination of such Shelf
Registration Period, the Company


                                        4
<PAGE>

shall first furnish to each Holder of Registrable Securities participating in
such Shelf Registration an opinion, in form and substance satisfactory to the
Majority Holders of the Registration, of counsel for the Company satisfactory to
the Majority Holders stating that such Registrable Securities are freely
saleable pursuant to Rule 144(k) under the Securities Act (or any successor
provision having similar effect) without any volume, manner of sale or other
restrictions. The Company shall be deemed not to have used its best efforts to
keep the Registration Statement effective during the Shelf Registration Period
if it voluntarily takes any action that would result in Holders of the
Registrable Securities covered thereby not being able to offer and sell such
Registrable Securities during the Shelf Registration Period, unless such action
is required by applicable law.

         2.2      EXPENSES. The Company shall pay all Registration Expenses in
connection with any Shelf Registration, whether or not such registration shall
become effective and whether or not all Registrable Securities originally
requested to be included in such registration are withdrawn or otherwise
ultimately not included in such registration. Each Holder shall pay (x) all
discounts and commissions payable to selling brokers, managers or other similar
Persons engaged in the distribution of such Holder's Registrable Securities
pursuant to any registration pursuant to this Section 2 and (y) all other of its
expenses and costs (such as fees and expenses of Holder's Counsel) relating to
the registration and/or offering other than registration expenses.

         2.3      POSTPONEMENTS. The Company shall be entitled to require the
Holders of Registrable Securities to discontinue the disposition of their
securities covered by a Shelf Registration during any Blackout Period (as
defined below) (i) if the board of directors of the Company determines in good
faith that effecting such a registration or continuing such disposition at such
time would have an adverse effect upon a proposed sale of all (or substantially
all) of the assets of the Company or a merger, reorganization, recapitalization
or similar current transaction materially affecting the capital, structure or
equity ownership of the Company, or (ii) if the Company is in possession of
material information which the board of directors of the Company determines in
good faith is not in the best interests of the Company to disclose in a
registration statement at such time, provided, however, that the Company may
require the Holders of Registrable Securities to discontinue the disposition of
their securities covered by a Shelf Registration only for a reasonable period of
time not to exceed 90 days (or such earlier time as such transaction is
consummated or no longer proposed or the material information has been made
public (the "BLACKOUT PERIOD"). There shall not be more than one Blackout Period
in any 12-month period.

         The Company shall promptly notify the Holders in writing (a "BLACKOUT
NOTICE") of any decision to discontinue sales of Registrable Securities covered
by a Shelf Registration pursuant to this Section 2.3 and shall include an
undertaking by the Company to promptly notify the Holders as soon as a sale of
Registrable Securities covered by a Shelf Registration may resume. In making any
such determination to initiate or terminate a Blackout Period, the Company shall
not be required to consult with or obtain the consent of any Holder, and any
such determination shall be the Company's sole responsibility. Each Holder shall
treat all notices received from the Company


                                        5
<PAGE>

pursuant to this Section 2.3 in the strictest confidence and shall not
disseminate such information.

                                   ARTICLE III
                             REGISTRATION PROCEDURES

         3.1      OBLIGATIONS OF THE COMPANY. Whenever the Company is required
to effect the registration of Registrable Securities under the Securities Act
pursuant to Section 2 of this Agreement, the Company shall, as expeditiously as
possible:

                  (a)      prepare and file with the SEC the requisite
Registration Statement to effect such registration, which Registration Statement
shall comply as to form in all material respects with the requirements of the
applicable form and include all financial statements required by the SEC to be
filed therewith, and the Company shall use its best efforts to cause such
Registration Statement to become effective (provided, that the Company may
discontinue any registration of its securities that are not Registrable
Securities, and, under the circumstances specified in Section 2.3, its
securities that are Registrable Securities); provided, however, that before
filing a Registration Statement or Prospectus or any amendments or supplements
thereto, or comparable statements under securities or blue sky laws of any
jurisdiction, the Company shall (i) provide Holders' Counsel and any other
Inspector (as defined in Section 3.1(g))with an adequate and appropriate
opportunity to review comment on, at the Holders' cost, such Registration
Statement and each Prospectus included therein (and each amendment or supplement
thereto or comparable statement) to be filed with the SEC, and (ii) not file any
such Registration Statement or Prospectus (including any amendment or supplement
thereto or comparable statement but excluding any filing made under the Exchange
Act that is incorporated by reference therein) with the SEC to which Holder's
Counsel, any selling Holder or any other Inspector shall have reasonably
objected on the grounds that such filing does not comply in all material
respects with the requirements of the Securities Act or of the rules or
regulations thereunder;

                  (b)      prepare and file with the SEC such amendments and
supplements to such Registration Statement and the Prospectus used in connection
therewith as may be necessary (i) to keep such Registration Statement effective,
and (ii) to comply with the provisions of the Securities Act with respect to the
disposition of all Registrable Securities covered by such Registration
Statement, in each case until such time as all of such Registrable Securities
have been disposed of (but not before the expiration of the 90-day period
referred to in Section 4(3) of the Securities Act and Rule 174 thereunder, if
applicable);

                  (c)      furnish, without charge, to each selling Holder of
such Registrable Securities of the securities covered by such Registration
Statement, such number of copies of such Registration Statement, each amendment
and supplement thereto (in each case including all exhibits), and the Prospectus
included in such Registration Statement (including each preliminary Prospectus)
in conformity with the requirements of the Securities Act, and other documents,
as such selling Holder may reasonably request in order to facilitate the public
sale or other disposition of the


                                        6
<PAGE>

Registrable Securities owned by such selling Holder (the Company hereby
consenting to the use in accordance with applicable law of each such
Registration Statement or amendment or post-effective amendment thereto) and
each such Prospectus (or preliminary prospectus or supplement thereto) by each
such selling Holder of Registrable Securities, in connection with the offering
and sale of the Registrable Securities covered by such Registration Statement or
Prospectus);

                  (d)      prior to any public offering of Registrable
Securities, use its best efforts to register or qualify all Registrable
Securities and other securities covered by such Registration Statement under
such other securities or blue sky laws of such jurisdictions as any selling
Holder of Registrable Securities covered by such Registration Statement may
reasonably request to enable such selling Holder to consummate the disposition
in such jurisdictions of the Registrable Securities owned by such selling Holder
and to continue such registration or qualification in effect in each such
jurisdiction for as long as such Registration Statement remains in effect
(including through new filings or amendments or renewals), and do any and all
other acts and things which may be necessary or advisable to enable any such
selling Holder to consummate the disposition in such jurisdictions of the
Registrable Securities owned by such selling Holder; provided, however, that the
Company shall not be required to (i) qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this
Section 3.1(d), (ii) subject itself to taxation in any such jurisdiction, or
(iii) consent to general service of process in any such jurisdiction;

                  (e)      use its best efforts to obtain all other approvals,
consents, exemptions or authorizations from such governmental agencies or
authorities as may be necessary to enable the selling Holders of such
Registrable Securities to consummate the disposition of such Registrable
Securities;

                  (f)      promptly notify Holders' Counsel and each Holder of
Registrable Securities covered by such Registration Statement: (i) when the
Registration Statement, any pre-effective amendment, the Prospectus or any
prospectus supplement related thereto or post-effective amendment to the
Registration Statement has been filed and, with respect to the Registration
Statement or any post-effective amendment, when the same has become effective,
(ii) of any request by the SEC or any state securities or blue sky authority for
amendments or supplements to the Registration Statement or the Prospectus
related thereto or for additional information, (iii) of the issuance by the SEC
of any stop order suspending the effectiveness of the Registration Statement or
the initiation or threat of any proceedings for that purpose, (iv) of the
receipt by the Company of any notification with respect to the suspension of the
qualification of any Registrable Securities for sale under the securities or
blue sky laws of any jurisdiction or the initiation of any proceeding for such
purpose, (v) of the existence of any fact of which the Company becomes aware or
the happening of any event which results in (A) the Registration Statement
containing an untrue statement of a material fact or omitting to state a
material fact required to be stated therein or necessary to make any statements
therein not misleading, or (B) the Prospectus included in such Registration
Statement containing an untrue statement of a material fact or omitting to state
a material fact required to be stated therein or necessary to make any
statements therein, in the light of


                                        7
<PAGE>

the circumstances under which they were made, not misleading, and (vi) of the
Company's reasonable determination that a post-effective amendment to a
Registration Statement would be appropriate or that there exists circumstances
not yet disclosed to the public which make further sales under such Registration
Statement inadvisable pending such disclosure and post-effective amendment; and,
if the notification relates to an event described in any of the clauses (ii)
through (vi) of this Section 3.1(f), the Company shall promptly prepare a
supplement or post-effective amendment to such Registration Statement or related
Prospectus or any document incorporated therein by reference or file any other
required document so that (1) such Registration Statement shall not contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading,
and (2) as thereafter delivered to the purchasers of the Registrable Securities
being sold thereunder, such Prospectus shall not include an untrue statement of
a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein in the light of the circumstances
under which they were made not misleading (and shall furnish to each such
Holder, a reasonable number of copies of such Prospectus so supplemented or
amended); and if the notification relates to an event described in clause (iii)
of this Section 3.1(f), the Company shall take all reasonable action required to
prevent the entry of such stop order or to remove it if entered;

                  (g)      make available for inspection by any selling Holder
of Registrable Securities, Holders' Counsel and any attorney, accountant or
other agent retained by any such seller (each, an "INSPECTOR" and, collectively,
the "INSPECTORS"), all financial and other records, pertinent corporate
documents and properties of the Company and any subsidiaries thereof as may be
in existence at such time (collectively, the "RECORDS") as shall be necessary,
in the opinion of such Holders' counsel, to enable them to exercise their due
diligence responsibility and to conduct a reasonable investigation within the
meaning of the Securities Act, and cause the Company's and any subsidiaries'
officers, directors and employees, and the independent public accountants of the
Company, to supply all information reasonably requested by any such Inspectors
in connection with such Registration Statement;

                  (h)      obtain an opinion from the Company's counsel and a
"cold comfort" letter from the Company's independent public accountants who have
certified the Company's financial statements included or incorporated by
reference in such Registration Statement, in each case dated the effective date
of such Registration Statement, in customary form and covering such matters as
are customarily covered by such opinions and "cold comfort" letters delivered to
underwriters in underwritten public offerings, which opinion and letter shall be
reasonably satisfactory to the Majority Holders, and furnish to each Holder
participating in the offering a copy of such opinion and letter addressed to
such Holder;

                  (i)      provide and cause to be maintained a transfer agent
and registrar for all such Registrable Securities covered by such Registration
Statement not later than the effectiveness of such Registration Statement;


                                        8
<PAGE>

                  (j)      otherwise use its best efforts to comply with all
applicable rules and regulations of the SEC and any other governmental agency or
authority having jurisdiction over the offering, and make available to its
security holders, as soon as reasonably practicable but no later than 90 days
after the end of any 12-month period, an earnings statement commencing with the
first day of the Company's calendar month next succeeding each sale of
Registrable Securities after the effective date of a Registration Statement,
which statement shall cover such 12-month periods, in a manner which satisfies
the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder;

                  (k)      if so requested by the Majority Holders of the
Registration, use its best efforts to cause all such Registrable Securities to
be listed (i) on each national securities exchange on which the Company's
securities are then listed or, (ii) if securities of the Company are not at the
time listed on any national securities exchange (or, if the listing of
Registrable Securities is not permitted under the rules of each national
securities exchange on which the Company's securities are then listed), on a
national securities exchange or The Nasdaq Stock Market's National Market;

                  (l)      keep each selling Holder of Registrable Securities
advised in writing as to the initiation and progress of any registration under
Section 2 hereunder;

                  (m)      enter into and perform customary agreements and
provide officers' certificates and other customary closing documents;

                  (n)      cooperate with each selling Holder of Registrable
Securities participating in the disposition of such Registrable Securities and
such selling Holder's counsel in connection with any filings required to be made
with the NASD;

                  (o)      furnish to each Holder participating in the offering,
without charge, at least one manually-signed copy of the Registration Statement
and any post-effective amendments thereto, including financial statements and
schedules, all documents incorporated therein by reference and all exhibits
(including those deemed to be incorporated by reference);

                  (p)      cooperate with the selling Holders of Registrable
Securities to facilitate the timely preparation and delivery of certificates not
bearing any restrictive legends representing the Registrable Securities to be
sold and cause such Registrable Securities to be issued in such denominations
and registered in accordance with the instructions of the selling Holders of
Registrable Securities at least three business days prior to any sale of
Registrable Securities; and

                  (q)      use its best efforts to take all other steps
necessary to expedite or facilitate the registration and disposition of the
Registrable Securities contemplated hereby.

         3.2      SELLER INFORMATION. The Company may require each selling
Holder of Registrable Securities as to which any registration is being effected
to furnish to the Company such information regarding such Holder, such Holder's
Registrable Securities and such Holder's intended method of disposition as the
Company may from time to time


                                        9
<PAGE>

reasonably request in writing; provided that such information shall be used only
in connection with such registration.

         If any Registration Statement or comparable statement under "blue sky"
laws refers to any Holder by name or otherwise as the Holder of any securities
of the Company, then such Holder shall have the right to require (i) the
insertion therein of language, in form and substance satisfactory to such
Holder, to the effect that the holding by such Holder of such securities is not
to be construed as a recommendation by such Holder of the investment quality of
the Company's securities covered thereby and that such holding does not imply
that such Holder will assist in meeting any future financial requirements of the
Company, and (ii) in the event that such reference to such Holder by name or
otherwise is not in the judgment of the Company, as advised by counsel, required
by the Securities Act or any similar federal statute or any state "blue sky" or
securities law then in force, the deletion of the reference to such Holder.

         3.3      NOTICE TO DISCONTINUE. Each Holder of Registrable Securities
agrees by acquisition of such Registrable Securities that, upon receipt of any
notice from the Company of the happening of any event of the kind described in
Section 3.1(f)(ii) through (vii), such Holder shall forthwith discontinue
disposition of Registrable Securities pursuant to the Registration Statement
covering such Registrable Securities until such Holder's receipt of the copies
of the supplemented or amended prospectus contemplated by Section 3.1(f) and, if
so directed by the Company, such Holder shall deliver to the Company (at the
Company's expense) all copies, other than permanent file copies, then in such
Holder's possession of the Prospectus covering such Registrable Securities which
is current at the time of receipt of such notice.

                                   ARTICLE IV
                          INDEMNIFICATION; CONTRIBUTION

         4.1      INDEMNIFICATION BY THE COMPANY. The Company agrees to
indemnify and hold harmless, to the fullest extent permitted by law, each Holder
of Registrable Securities, its officers, directors, partners, members,
shareholders, employees, Affiliates and agents (collectively, "AGENTS") and each
Person who controls such Holder (within the meaning of the Securities Act) and
its Agents with respect to each registration which has been effected pursuant to
this Agreement, against any and all losses, claims, damages or liabilities,
joint or several, actions or proceedings (whether commenced or threatened) in
respect thereof, and expenses (as incurred or suffered and including, but not
limited to, any and all expenses incurred in investigating, preparing or
defending any litigation or proceeding, whether commenced or threatened, and the
reasonable fees, disbursements and other charges of legal counsel) in respect
thereof (collectively, "CLAIMS"), insofar as such Claims arise out of or are
based upon any untrue or alleged untrue statement of a material fact contained
in any Registration Statement or Prospectus (including any preliminary, final or
summary prospectus and any amendment or supplement thereto) related to any such
registration or any omission or alleged omission to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading, or any violation by the Company of the Securities Act or any rule or
regulation thereunder applicable to the Company and relating to action or
inaction


                                       10
<PAGE>

required of the Company in connection with any such registration, or any
qualification or compliance incident thereto; provided, however, that the
Company will not be liable in any such case to the extent that any such Claims
arise out of or are based upon any untrue statement or alleged untrue statement
of a material fact or omission or alleged omission of a material fact so made in
reliance upon and in conformity with written information furnished to the
Company by such Holder specifically for use in a Registration Statement. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such indemnified party and shall survive the transfer of
such securities by such Holder.

         4.2      INDEMNIFICATION BY HOLDERS. Each Holder, if Registrable
Securities held by it are included in the securities as to which a registration
is being effected, agrees to, severally and not jointly, indemnify and hold
harmless, to the fullest extent permitted by law, the Company, its officers,
directors, employees, and Affiliates and each Person who controls the Company
(within the meaning of the Securities Act) and its Agents against any and all
Claims, insofar as such Claims arise out of or are based upon any untrue or
alleged untrue statement of a material fact contained in any Registration
Statement or Prospectus (including any preliminary, final or summary prospectus
and any amendment or supplement thereto) related to such registration, or any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, to
the extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with written information furnished to the Company by such Holder
specifically for use in a Registration Statement; provided, however, that the
aggregate amount which any such Holder shall be required to pay pursuant to this
Section 4.2 shall in no event be greater than the amount of the net proceeds
received by such Holder upon the sale of the Registrable Securities pursuant to
the Registration Statement giving rise to such Claims less all amounts
previously paid by such Holder with respect to any such Claims. Such indemnity
shall remain in full force and effect regardless of any investigation made by or
on behalf of such indemnified party and shall survive the transfer of such
securities by such Holder.

         4.3      CONDUCT OF INDEMNIFICATION PROCEEDINGS. Promptly after receipt
by an indemnified party of notice of any Claim or the commencement of any action
or proceeding involving a Claim under this Section 4, such indemnified party
shall, if a claim in respect thereof is to be made against the indemnifying
party pursuant to Section 4, (i) notify the indemnifying party in writing of the
Claim or the commencement of such action or proceeding; provided, that the
failure of any indemnified party to provide such notice shall not relieve the
indemnifying party of its obligations under this Section 4, except to the extent
the indemnifying party is materially and actually prejudiced thereby and shall
not relieve the indemnifying party from any liability which it may have to any
indemnified party otherwise than under this Section 4, and (ii) permit such
indemnifying party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party; provided, however, that any indemnified
party shall have the right to employ separate counsel and to participate in the
defense of such claim, but the fees and expenses of such counsel shall be at the
expense of such indemnified party unless (A) the indemnifying party has agreed
in writing to pay such fees and


                                       11
<PAGE>

expenses, (B) the indemnifying party shall have failed to assume the defense of
such claim and employ counsel reasonably satisfactory to such indemnified party
within 10 days after receiving notice from such indemnified party that the
indemnified party believes it has failed to do so, (C) in the reasonable
judgment of any such indemnified party, based upon advice of counsel, a conflict
of interest may exist between such indemnified party and the indemnifying party
with respect to such claims (in which case, if the indemnified party notifies
the indemnifying party in writing that it elects to employ separate counsel at
the expense of the indemnifying party, the indemnifying party shall not have the
right to assume the defense of such claim on behalf of such indemnified party)
or (D) such indemnified party is a defendant in an action or proceeding which is
also brought against the indemnifying party and reasonably shall have concluded
that there may be one or more legal defenses available to such indemnified party
which are not available to the indemnifying party. No indemnifying party shall
be liable for any settlement of any such claim or action effected without its
written consent, which consent shall not be unreasonably withheld. In addition,
without the consent of the indemnified party (which consent shall not be
unreasonably withheld), no indemnifying party shall be permitted to consent to
entry of any judgment with respect to, or to effect the settlement or compromise
of any pending or threatened action or claim in respect of which indemnification
or contribution may be sought hereunder (whether or not the indemnified party is
an actual or potential party to such action or claim), unless such settlement,
compromise or judgment (1) includes an unconditional release of the indemnified
party from all liability arising out of such action or claim, (2) does not
include a statement as to or an admission of fault, culpability or a failure to
act, by or on behalf of any indemnified party, and (3) does not provide for any
action on the part of any party other than the payment of money damages which is
to be paid in full by the indemnifying party.

         4.4      CONTRIBUTION. If the indemnification provided for in Section
4.1 or 4.2 from the indemnifying party for any reason is unavailable to (other
than by reason of exceptions provided therein), or is insufficient to hold
harmless, an indemnified party hereunder in respect of any Claim, then the
indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such Claim in such proportion as is appropriate to reflect the relative fault
of the indemnifying party, on the one hand, and the indemnified party, on the
other hand, in connection with the actions which resulted in such Claim, as well
as any other relevant equitable considerations. The relative fault of such
indemnifying party and indemnified party shall be determined by reference to,
among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact, has been made by, or relates to information supplied by,
such indemnifying party or indemnified party, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
action. If, however, the foregoing allocation is not permitted by applicable
law, then each indemnifying party shall contribute to the amount paid or payable
by such indemnified party in such proportion as is appropriate to reflect not
only such relative faults but also the relative benefits of the indemnifying
party and the indemnified party as well as any other relevant equitable
considerations.


                                       12
<PAGE>

         The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 4.4 were determined by pro rata allocation
or by any other method of allocation which does not take into account the
equitable considerations referred to in the immediately preceding paragraph. The
amount paid or payable by a party as a result of any Claim referred to in the
immediately preceding paragraph shall be deemed to include, subject to the
limitations set forth in Section 4.3, any legal or other fees, costs or expenses
reasonably incurred by such party in connection with any investigation or
proceeding. Notwithstanding anything in this Section 4.4 to the contrary, no
indemnifying party (other than the Company) shall be required pursuant to this
Section 4.4 to contribute any amount in excess of the net proceeds received by
such indemnifying party from the sale of the Registrable Securities pursuant to
the Registration Statement giving rise to such Claims, less all amounts
previously paid by such indemnifying party with respect to such Claims. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(a) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.

         4.5      OTHER INDEMNIFICATION. Indemnification similar to that
specified in the preceding Sections 4.1 and 4.2 (with appropriate modifications)
shall be given by the Company and each selling Holder of Registrable Securities
with respect to any required registration or other qualification of securities
under any Federal or state law or regulation of any governmental authority,
other than the Securities Act. The indemnity agreements contained herein shall
be in addition to any other rights to indemnification or contribution which any
indemnified party may have pursuant to law or contract.

         4.6      INDEMNIFICATION PAYMENTS. The indemnification and contribution
required by this Section 4 shall be made by periodic payments of the amount
thereof during the course of any investigation or defense, as and when bills are
received or any expense, loss, damage or liability is incurred.

                                   ARTICLE V
                                     GENERAL

         5.1      ADJUSTMENTS AFFECTING REGISTRABLE SECURITIES. The Company
agrees that it shall not effect or permit to occur any combination or
subdivision of shares which would materially adversely affect the ability of the
Holder of any Registrable Securities to include such Registrable Securities in
any registration contemplated by this Agreement or the marketability of such
Registrable Securities in any such registration.

         5.2      REGISTRATION RIGHTS TO OTHERS. The Company is not party to any
agreement with respect to its securities granting any registration rights to any
Person. If the Company shall at any time hereafter provide to any holder of any
securities of the Company rights with respect to the registration of such
securities under the Securities Act, such rights shall not be in conflict with
or adversely affect any of the rights provided in this Agreement to the Holders.


                                       13
<PAGE>

         5.3      AVAILABILITY OF INFORMATION. The Company covenants that it
shall timely file any reports required to be filed by it under the Securities
Act or the Exchange Act (including, but not limited to, the reports under
Sections 13 and 15(d) of the Exchange Act referred to in subparagraph (c) of
Rule 144 under the Securities Act), and that it shall take such further action
as any Holder of Registrable Securities may reasonably request, all to the
extent required from time to time to enable such Holder to sell Registrable
Securities without registration under the Securities Act within the limitation
of the exemptions provided by (i) Rule 144 under the Securities Act, as such
rule may be amended from time to time, or (ii) any other rule or regulation now
existing or hereafter adopted by the SEC. Upon the request of any Holder of
Registrable Securities, the Company shall deliver to such Holder a written
statement as to whether it has complied with such requirements.

         5.4      AMENDMENTS AND WAIVERS. The provisions of this Agreement may
not be amended, modified, supplemented or terminated, and waivers or consents to
departures from the provisions hereof may not be given, without the written
consent of the Company and the Holders holding more than 50% of the Registrable
Securities then outstanding; provided, however, that no such amendment,
modification, supplement, waiver or consent to departure shall reduce the
aforesaid percentage of Registrable Securities without the written consent of
all of the Holders of Registrable Securities; and provided, further, that
nothing herein shall prohibit any amendment, modification, supplement,
termination, waiver or consent to departure the effect of which is limited only
to those Holders who have agreed to such amendment, modification, supplement,
termination, waiver or consent to departure.

         5.5      NOTICES. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, telecopier, any
courier guaranteeing overnight delivery or first class registered or certified
mail, return receipt requested, postage prepaid, addressed to the applicable
party at the address set forth below or such other address as may hereafter be
designated in writing by such party to the other parties in accordance with the
provisions of this Section:

                           If to the Company, to:

                           Ambassadors Group, Inc.
                           Dwight D. Eisenhower Building
                           110 S. Ferrall Street
                           Spokane, WA  99202
                           Attn:  Jeffrey D. Thomas, Chief Executive Officer
                           Telecopy:  (509) 536-1996
                           Telephone:  (509) 534-6200


                                       14
<PAGE>

                           With a copy to:

                           Richman, Mann, Chizever, Phillips & Duboff, PLC
                           9601 Wilshire Boulevard
                           Penthouse
                           Beverly Hills, California  90210
                           Attention:  Gerald M. Chizever, Esq.
                           Telecopy: (310) 274-1114
                           Telephone: (310) 274-8300

                           If to the Initial Holder, to:

                           Invemed Catalyst Fund, L.P.
                           375 Park Avenue, Suite 2205
                           New York, NY  10152
                           Attn:  Suzanne Present
                           Telecopy: (212) 813-0249
                           Telephone: (212) 843-0542

                           With a copy to:

                           Paul, Weiss, Rifkind, Wharton & Garrison
                           1285 Avenue of the Americas
                           New York, New York 10019-6064
                           Attn: Douglas A. Cifu, Esq.
                           Telecopy: (212) 492-0436
                           Telephone: (212) 373-3436

         If to any subsequent Holder, to the address of such Person set forth in
the records of the Company.

         All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; when receipt is
acknowledged, if telecopied; on the next business day, if timely delivered to a
courier guaranteeing overnight delivery; and five days after being deposited in
the mail, if sent first class or certified mail, return receipt requested,
postage prepaid.

         5.6      SUCCESSORS AND ASSIGNS. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and other Holders.

         5.7      COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which, when so executed and delivered, shall be deemed to
be an original, but all of which counterparts, taken together, shall constitute
one and the same instrument. Any party may execute and deliver a counterpart to
this Agreement by delivering by facsimile or electronic mail transmission a
signature page of this Agreement signed by such party, and such facsimile or
electronic mail signature shall be treated in all respects as having the same
effect as an original signature.


                                       15
<PAGE>

         5.8      DESCRIPTIVE HEADINGS, ETC. The headings in this Agreement are
for convenience of reference only and shall not limit or otherwise affect the
meaning of terms contained herein. Unless the context of this Agreement
otherwise requires: (1) words of any gender shall be deemed to include each
other gender; (2) words using the singular or plural number shall also include
the plural or singular number, respectively; (3) the words "hereof', "herein"
and "hereunder" and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this
Agreement, and Section and paragraph references are to the Sections and
paragraphs of this Agreement unless otherwise specified; (4) the word
"including" and words of similar import when used in this Agreement shall mean
"including, without limitation," unless otherwise specified; (5) "or" is not
exclusive; and (6) provisions apply to successive events and transactions.

         5.9      SEVERABILITY. In the event that any one or more of the
provisions, paragraphs, words, clauses, phrases or sentences contained herein,
or the application thereof in any circumstances, is held invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision, paragraph, word, clause, phrase or
sentence in every other respect and of the other remaining provisions,
paragraphs, words, clauses, phrases or sentences hereof shall not be in any way
impaired, it being intended that all rights, powers and privileges of the
parties hereto shall be enforceable to the fullest extent permitted by law.

         5.10     GOVERNING LAW. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York (without giving
effect to the conflict of laws principles thereof).

         5.11     REMEDIES; SPECIFIC PERFORMANCE. The parties hereto acknowledge
that money damages would not be an adequate remedy at law if any party fails to
perform in any material respect any of its obligations hereunder, and
accordingly agree that each party, in addition to any other remedy to which it
may be entitled at law or in equity, shall be entitled to seek to compel
specific performance of the obligations of any other party under this Agreement,
without the posting of any bond, in accordance with the terms and conditions of
this Agreement in any court of the United States or any State thereof having
jurisdiction, and if any action should be brought in equity to enforce any of
the provisions of this Agreement, none of the parties hereto shall raise the
defense that there is an adequate remedy at law. Except as otherwise provided by
law, a delay or omission by a party hereto in exercising any right or remedy
accruing upon any such breach shall not impair the right or remedy or constitute
a waiver of or acquiescence in any such breach. No remedy shall be exclusive of
any other remedy. All available remedies shall be cumulative.

         5.12     ENTIRE AGREEMENT. This Agreement and the Purchase Agreement
are intended by the parties as a final expression of their agreement and
intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained
herein. There are no restrictions, promises, representations, warranties,
covenants or undertakings relating to such subject matter, other than those set
forth or referred to herein or in the Purchase Agreement. This


                                       16
<PAGE>

Agreement and the Purchase Agreement supersede all prior agreements and
understandings between the Company and the other parties to this Agreement with
respect to such subject matter.

         5.13     NOMINEES FOR BENEFICIAL OWNERS. In the event that any
Registrable Securities are held by a nominee for the beneficial owner thereof,
the beneficial owner thereof may, at its election in writing delivered to the
Company, be treated as the holder of such Registrable Securities for purposes of
any request or other action by any holder or holders of Registrable Securities
pursuant to this Agreement or any determination of any number or percentage of
shares of Registrable Securities held by any holder or holders of Registrable
Securities contemplated by this Agreement. If the beneficial owner of any
Registrable Securities so elects, the Company may require assurances reasonably
satisfactory to it of such owner's beneficial ownership of such Registrable
Securities.

         5.14     CONSENT TO JURISDICTION; WAIVER OF JURY. Each party to this
Agreement hereby irrevocably and unconditionally agrees that any legal action,
suit or proceeding arising out of or relating to this Agreement or any
agreements or transactions contemplated hereby may be brought in any federal
court of the Southern District of New York or any state court located in New
York County, State of New York, and hereby irrevocably and unconditionally
expressly submits to the personal jurisdiction and venue of such courts for the
purposes thereof and hereby irrevocably and unconditionally waives any claim (by
way of motion, as a defense or otherwise) of improper venue, that it is not
subject personally to the jurisdiction of such court, that such courts are an
inconvenient forum or that this Agreement or the subject matter may not be
enforced in or by such court. Each party hereby irrevocably and unconditionally
consents to the service of process of any of the aforementioned courts in any
such action, suit or proceeding by the mailing of copies thereof by registered
or certified mail, postage prepaid, to the address set forth or provided for in
Section 5.5 of this Agreement, such service to become effective 10 days after
such mailing. Nothing herein contained shall be deemed to affect the right of
any party to serve process in any manner permitted by law or commence legal
proceedings or otherwise proceed against any other party in any other
jurisdiction to enforce judgments obtained in any action, suit or proceeding
brought pursuant to this Section. Each of the parties hereby irrevocably waives
trial by jury in any action, suit or proceeding, whether at law or equity,
brought by any of them in connection with this Agreement or the transactions
contemplated hereby.

         5.15     FURTHER ASSURANCES. Each party hereto shall do and perform or
cause to be done and performed all such further acts and things and shall
execute and deliver all such other agreements, certificates, instruments and
documents as any other party hereto reasonably may request in order to carry out
the intent and accomplish the purposes of this Agreement and the consummation of
the transactions contemplated hereby.

         5.16     NO INCONSISTENT AGREEMENTS. The Company will not hereafter
enter into any agreement which is inconsistent with the rights granted to the
Holders in this Agreement.


                                       17
<PAGE>

         5.17     CONSTRUCTION. The Company and the Holders acknowledge that
each of them has had the benefit of legal counsel of its own choice and has been
afforded an opportunity to review this Agreement with its legal counsel and that
this Agreement shall be construed as if jointly drafted by the Company and the
Holders.

                       [SIGNATURES ON THE FOLLOWING PAGE]


                                       18
<PAGE>


         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first written above.


                                   INVEMED CATALYST FUND, L.P.

                                   By:  Invemed Catalyst GenPar, LLC,
                                        its general partner

                                        By:  Gladwyne Catalyst GenPar, LLC,
                                             its managing member


                                        /s/ Suzanne Present
                                        ----------------------------------------
                                        Name:   Suzanne Present
                                        Title:  Member


                                   AMBASSADORS GROUP, INC.


                                   By:  /s/ Jeffrey D. Thomas
                                        ----------------------------------------
                                        Name:   Jeffrey D. Thomas
                                        Title:  Chief Executive Officer


                                       19
<PAGE>

                                TABLE OF CONTENTS

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

ARTICLE II   REGISTRATION UNDER THE SECURITIES ACT.............................4

         2.1      SHELF REGISTRATION STATEMENT.................................4
         2.2      EXPENSES.....................................................5
         2.3      POSTPONEMENTS................................................5

ARTICLE III  REGISTRATION PROCEDURES...........................................6

         3.1      OBLIGATIONS OF THE COMPANY...................................6
         3.2      SELLER INFORMATION...........................................9
         3.3      NOTICE TO DISCONTINUE.......................................10

ARTICLE IV   INDEMNIFICATION; CONTRIBUTION....................................10

         4.1      INDEMNIFICATION BY THE COMPANY..............................10
         4.2      INDEMNIFICATION BY HOLDERS..................................11
         4.3      CONDUCT OF INDEMNIFICATION PROCEEDINGS......................11
         4.4      CONTRIBUTION................................................12
         4.5      OTHER INDEMNIFICATION.......................................13
         4.6      INDEMNIFICATION PAYMENTS....................................13

ARTICLE V    GENERAL..........................................................13

         5.1      ADJUSTMENTS AFFECTING REGISTRABLE SECURITIES................13
         5.2      REGISTRATION RIGHTS TO OTHERS...............................13
         5.3      AVAILABILITY OF INFORMATION.................................14
         5.4      AMENDMENTS AND WAIVERS......................................14
         5.5      NOTICES.....................................................14
         5.6      SUCCESSORS AND ASSIGNS......................................15
         5.7      COUNTERPARTS................................................15
         5.8      DESCRIPTIVE HEADINGS, ETC...................................16
         5.9      SEVERABILITY................................................16
         5.10     GOVERNING LAW...............................................16
         5.11     REMEDIES; SPECIFIC PERFORMANCE..............................16
         5.12     ENTIRE AGREEMENT............................................16
         5.13     NOMINEES FOR BENEFICIAL OWNERS..............................17
         5.14     CONSENT TO JURISDICTION; WAIVER OF JURY.....................17
         5.15     FURTHER ASSURANCES..........................................17
         5.16     NO INCONSISTENT AGREEMENTS..................................17
         5.17     CONSTRUCTION................................................18


</TEXT>
</DOCUMENT>
</SUBMISSION>
