**SALES      AGREEMENT**

**Agreement**
**Zoo**
**ATARI”**

|   | a. | “**Territory**,”                shall mean the United States (and its territories, possessions and                military bases wherever situated), Canada and Mexico. |
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|   | b. | “**Platforms**,”                shall include the Nintendo Game Boy Advance System (GBA), the Nintendo                Dual Screen System (DS), the Nintendo Wii System (Wii), the Sony                Playstation Portable (PSP) and Sony Playstation 2 (PS2), and the                Personal                Computer. |
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|   | c. | “**Video                Games**”                or “**Games**,”                means individual finished units of video games, including all applicable                manuals and packaging, developed and marketed for distribution on                the                Platforms during the Term as listed on Exhibit “A”. The corresponding                initial purchase order unit amounts and cost of goods for each Video                Game                are attached hereto as Exhibit “A”; as such exhibit may be amended from                time to time in accordance with the terms of this Agreement.                Notwithstanding, purchase orders shall be added on a revolving basis. |
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|   | a. | Subject to the terms and conditions of this Agreement,              Zoo hereby grants to ATARI the right to purchase the Video Games directly              from Zoo and sell such Video Games to wholesalers and retailers in              the              Territory. The right to sell the specific Video Games to the specific              wholesalers and distributors identified in Exhibit A shall be exclusive              to              Atari. Notwithstanding the foregoing, in the event any such retailers              or              wholesalers refuse to purchase the Video Games from ATARI or ATARI              refuses              to sell the specified Video Games to any of the specified wholesales              or              retailers, Zoo shall have the right to sell such Video Games              to such wholesaler or retailer. |
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|   | b. | ATARI                recognizes that Zoo is bound by certain license agreements that control                the use of proprietary property, proprietary information, service                marks,                game content, inclusive of characters, script, speech, images,                characterizations, designs, graphics, artwork as well as the use                of any                trademarks or service marks associated with each Video Game. ATARI                shall                be permitted to utilize, in all cases, unless specifically prohibited                by                Zoo, all images, text and other content contained on the packaging,                manuals or sell sheets relative to each specific Video Game. Should                ATARI                desire to utilize specific elements of the Games outside of the packaging,                manuals or sell sheets for such Game, ATARI shall submit a specific                request to Zoo illustrating the proposed use and specifying the proposed                purpose of said illustration (advertising, store display, marketing                etc.).                Zoo will review all such submissions and use its commercially reasonable                efforts to approve the same or submit the same to its applicable                licensor(s) for review and approval in an expeditious                manner. |
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|   | c. | Notwithstanding                the foregoing, should any license granted to Zoo with respect to                any Video                Game by any licensor of such Video Game expire, terminate, revert                or if                such Game otherwise ceases to be available to Zoo, such Video Game                shall                cease to be part of this Agreement upon written notice to ATARI.                In such                event, ATARI shall be entitled, subject to a return to Zoo of the                unsold                units of the relevant Video Game, at Zoo’s expense: (i) to a prompt refund                of amounts paid to Zoo by ATARI for such Video Game equal to the                amount                paid to Zoo for the unsold units of such Video Game in stock at ATARI                and                returned to Zoo; (ii) to reimbursement of all Handling Charges (as                defined                in Section 2(h)) and customer chargebacks, if any, incurred by ATARI                in                connection with such Video Game; or, in lieu if (i) above, (iii)                to                allocate any portion of amounts paid to Zoo by ATARI for such unsold                units                of the relevant Video Game against unshipped product paid hereunder                to                such other Video Game titles contained in Exhibit A as the parties                shall                agree or to such new Video Games as the parties mutually agree to                add to                Exhibit A, so as to provide an appropriate credit for any such payment                for                the unavailable Video Game. |
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|   | d. | Zoo                sales staff shall solicit orders for the Video Games from wholesalers                and                retailers in the Territory and direct such wholesalers and retailers                to                purchase such Video Games from ATARI. Purchase orders for such Video                Games                shall be made out to ATARI if possible. ATARI acknowledges that some                of                Zoo’s customers will not change their current purchase orders with Zoo.                For such customers, Zoo shall assign such purchase orders to ATARI                and                direct the customer to remit payment to ATARI. ATARI in turn shall                submit                purchase orders to Zoo for the Video Games ordered by the wholesalers                and                retailers from ATARI and from Zoo as assigned to ATARI. The purchase                order                from ATARI to Zoo shall contain the quantity ordered and the amount                due to                Zoo and such additional terms as may be mutually agreed from time                to time.                Any additional terms and conditions that conflict with this Agreement                shall be null and void. It is the intent of the parties that this                Agreement set forth all of the material terms and conditions of all                Video                Game sales made by Zoo to ATARI, unless otherwise mutually                agreed. |
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|   | e. | ATARI                shall purchase directly from Zoo the initial quantities of the Video                Games                as set forth on the attached Exhibit “A”. Subsequent purchase orders shall                be sent by ATARI to Zoo at any time during the Term and ATARI shall                purchase the Video Games at the prices set forth on Exhibit A in                the                quantities set forth on the subsequent purchase orders, or at other                such                price as determined by Zoo. Any such subsequent Video game purchases                shall                be subject to the availability of the relevant Video Game. The payment                for                subsequent orders shall be made by ATARI to Zoo once per week during                the                Term. |
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|   | f. | Accompanying                each purchase order from ATARI to Zoo shall be a payment of the cost                of                goods amount for the Video Games being ordered (set forth on Exhibit                A for                the initial orders) plus [INFORMATION                OMITTED AND FILED SEPARATELY WITH THE COMMISSION UNDER RULE                24B-2] %                of the difference between (i) the “**ATARI                Price**”                (defined as [INFORMATION                OMITTED AND FILED SEPARATELY WITH THE COMMISSION UNDER RULE                24B-2] %                of the price on the customer purchase order) less a reserve of                [INFORMATION                OMITTED AND FILED SEPARATELY WITH THE COMMISSION UNDER RULE                24B-2] %                of the ATARI Price and (ii) the cost of goods (“**Initial                Payment**”).                The remaining amount of the ATARI Price shall be paid to Zoo no later                than                fifteen days after shipment of the relevant Video Game(s) to the                relevant                customer. The reserve shall be analyzed and reviewed sixty days following                the execution of this Agreement and liquidated monthly thereafter                with a                final liquidation no later than July 31, 2009, subject to Section                6(b).                The reserve amount will be returned to Zoo on a monthly basis to                the                extent that the amount of the reserve exceeds actual and projected                customer sales allowances, returns and price protection and the like                given                in lieu of returns. Reserve amounts may be cross-collateralized.                For the                avoidance of doubt, ATARI shall wire the Initial Payment for the                Video                Games listed on Exhibit A to Zoo upon its execution of this Agreement                .                Zoo shall provide ATARI with wire instructions under separate cover.                Refunds of any portion of the Initial Payment shall be governed by                Sections 2(c) and 2(g) of this Agreement. |
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|   | g. | Zoo shall verify all purchase orders by return facsimile              or e-mail within 24 hours of receipt of the purchase order from ATARI.              Verification shall specify the estimated shipping date as well as any              products which may be back ordered. Unless otherwise agreed to by ATARI,              Zoo agrees to use commercially reasonable efforts to make products              available for shipment within two (2) business days following receipt              of              the purchase order provided that the Video Games requested are in              inventory. If Zoo must produce inventory or order Video Games from              Sony or              Nintendo to fulfill the purchase order, Zoo agrees to make product              available for shipment within two (2) business days following the receipt              of the completed manufacture of finished units of the products. Zoo              shall              notify ATARI if a product ordered by ATARI is not in stock and shall              advise ATARI of the anticipated delivery date. If Zoo fails to make              any              Video Game available for shipment in a timely manner or if any wholesaler              or retailer cancels an order for or refuses delivery of Video Games              for              any reason, then ATARI shall be entitled to a prompt refund of amounts              paid to Zoo by ATARI for the undelivered (to ATARI) or unshipped (to              the              retailer or wholesaler) units of such Video Game and reimbursement              of all              Handling Charges and customer chargebacks, if any, incurred by Atari              in              connection with such Video Game in addition to its other rights and              remedies. In such event, ATARI shall return the unshipped units of              the              Video Game to Zoo at Zoo’s expense, and, notwithstanding anything to the              contrary contained in this Agreement, Zoo shall be free to sell such              Video              Games to the wholesaler or retailer which cancelled its              order(s). |
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|   | h. | Zoo will pay all Handling Charges associated with              any              returns of Video Games to Zoo. In addition, in the event of a recall              of              any Video Games, Zoo will pay all costs associated with the recall,              including but not limited to Handling Charges, customer chargebacks,              end              user notification costs, and unit replacement costs. The term "Handling              Charges" will mean, for each Video Game returned, reasonable labor              and              administrative costs plus all of Atari's out-of-pocket shipping and              insurance costs related to the return and, if applicable, replenishment              of              such Video Games, to and from Zoo to Atari and to and from Atari to              customers. |
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**Term**

|   | a. | Zoo                has obtained, or shall obtain prior to the applicable release dates                set                forth in Exhibit “A”, all necessary rights and licenses to develop,                publish, market, sell and distribute the Video Games as contemplated                by                this Agreement. Anything contained in this Agreement notwithstanding,                as a                precondition to any obligation of ATARI to make any payment with                respect                to any Video Game, Zoo shall have obtained all such rights and licenses                with respect to such Video Game. |
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|   | b. | Zoo                shall sell the relevant Video Game to third parties and shall assign                the                Zoo purchase order ATARI. Zoo shall ship the Video Games pursuant                to                ATARI’s instructions and shall direct the customer to pay Atari. Zoo shall                assist ATARI with collections, if                needed. |
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|   | c. | Zoo                shall sell and deliver to ATARI, Video Games, duly packaged as finished                units that are in good and saleable condition and in conformity with                the                documentation provided and that will operate in accordance with industry                standards, for sale by ATARI to wholesalers and retailers for the                use by                the ultimate end user. In addition, Zoo shall have the option to                engage                certain third parties that provide manufacturing services to ATARI                for the                purpose of assembling and packaging Video Games at Zoo’s sole                discretion. |
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|   | d. | Zoo                warrants that it is duly incorporated and is in good standing in                the State                of New Jersey, with the full power and authority to execute and deliver                this Agreement and to perform the its obligations                hereunder. |
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|   | e. | The                entering into of this Agreement by Zoo does not violate any agreement,                right or obligation of Zoo and no other person or entity is required                to                execute this Agreement or perform the obligations                herein. |
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|   | f. | There                is no pending or threatened litigation which may affect the legality,                validity or enforceability of this Agreement or any transactions                contemplated hereunder. |
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|   | g. | The                Video Games delivered to ATARI shall be subject to Zoo’s and its                developers’ and manufacturers’ standard warranty terms as such are                contained in the packaging for each Video Game, with copies to be                communicated in writing to ATARI and to end users from time to time.                Zoo                will provide technical support for each Video Game. Technical support                will                include, without limitation, warranty service, internet support and                phone                support via a local or toll-free telephone number. Zoo will have                personnel                knowledgeable of the technical and application aspects of each Video                Game                available to answer support questions during regular business hours. |
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|   | h. | None                of the Video Games or related materials infringes on any patents,                copyrights, trademarks, tradenames, trade secrets or any other                intellectual property rights of a third                party. |
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|   | i. | The                Video Games and related materials will be in compliance with all                applicable laws and regulatory requirements in the Territory, including                without limitation, ESRB requirements and procedures, packaging and                labeling requirements, language requirements, and country of origin                requirements. For purposes of compliance with applicable ESRB regulations                Zoo shall be deemed the “publisher” of the Video Games. |
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|   | a. | ATARI warrants that it is duly incorporated, and              is in              good standing in the State of Delaware, with the full power and authority              to execute and deliver this Agreement and to perform the its obligations              hereunder. |
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|   | b. | The                entering into of this Agreement by ATARI does not violate any agreement,                right or obligation of ATARI and no other person or entity is required                to                execute this Agreement on behalf of ATARI or perform ATARI’s obligations                herein. |
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|   | c. | To                ATARI’s knowledge, there is no pending or threatened, litigation which                may                affect the legality, validity or enforceability of this Agreement                or any                transactions contemplated                hereunder. |
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|   | d. | ATARI                warrants and represents that it will make no claims or assertions                against                Zoo’s ownership of, or license rights in and to, any of Video Games or                advertising, packaging or promotional materials for the Video Games                during                the Term of this Agreement or thereafter. Zoo’s licenses in and to the                Video Games shall remain the sole and exclusive property of                Zoo. ATARI                also agrees that neither this Agreement nor any action, omission                or                statement by Zoo or ATARI, nor ATARI’s use of the Video Games or elements                thereof in connection with this Agreement shall in any way confer                or imply                a grant of rights, title or interest thereto, or to any element or                portion                thereof or any other rights, including, without limitation, copyrights,                trademarks, trade names, service marks or goodwill associated therewith,                the ownership of which shall be and at the times remain solely and                exclusively with Zoo or its licensors. Zoo reserves all rights now                known                or hereafter devised in and to the proprietary properties used in                the                Video Games, including all copyrights and trademarks including but                not                limited to the names and logos of Zoo and its licensors throughout                the                universe in perpetuity.   |
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|   | (a) | ATARI                shall keep sufficient records of all sales of the Video Games in                order to                verify the amount of the reserve ultimately retained by ATARI and                send a                report to Zoo for each month of the Term no later than 5 days following                the end of such month, [INFORMATION                OMITTED AND FILED SEPARATELY WITH THE COMMISSION UNDER RULE                24B-2] . |
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|   | (b) | [INFORMATION                OMITTED AND FILED SEPARATELY WITH THE COMMISSION UNDER RULE                24B-2] . |
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**Miscellaneous.**

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| ZOO PUBLISHING, INC.  By: /s/ Susan                Kain                                              Name: Susan                Kain                                               Title:                President                                     | ATARI, INC. By: /s/ James                Wilson                                           Name: James                Wilson                                            Title:                President/CEO                             |
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***WE      HAVE REQUESTED CONFIDENTIAL TREATMENT OF CERTAIN PROVISIONS CONTAINED IN THIS      EXHIBIT. THE COPY FILED AS AN EXHIBIT OMITS THE INFORMATION SUBJECT TO THE      CONFIDENTIALITY REQUEST.***

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