Exhibit
10.62  LEASE TERMINATION
AGREEMENT  This Lease
Termination Agreement (Agreement), dated as of December 3, 2002, is entered
into by and between TBI-Mission West LLC, a California limited liability
company (Landlord), and Media Arts Group, Inc., a Delaware corporation
(Tenant).  RECITALS  A.            Landlord and Tenant entered into a
Lease dated December 20, 1999, and amended by a First Amendment to Lease dated
July 6, 2000 and a Second Amendment to Lease dated November 16, 2001
(collectively, the Lease) for those certain premises to be constructed at
18640 Madrone Parkway in Morgan Hill, California.  B.            Landlord and Tenant now desire to
provide for the termination the Lease and to release Landlord from any further
obligation to construct the Building, all on the terms and conditions set forth
herein.  AGREEMENT  In consideration
of the mutual covenants set forth herein and other valuable consideration,
Landlord and Tenant agree as follows:  1.             Termination of Lease. Subject to Tenants
performance of its obligations under paragraph 2 below, the Lease and all
rights, obligations and liabilities of Landlord and Tenant under the Lease,
except those which arise from either partys breach of this Agreement shall
terminate effective June 1, 2002. 
Tenant shall have no obligation to pay to Landlord any of the monthly
ground rent that was due or would have been due under the Second Amendment to
Lease and Landlord hereby waives any claims against Tenant for any such ground
rent. 2.             Consideration. In consideration of the
termination of the Lease and the release of Tenant from the performance of its
obligations under the Lease, Tenant shall (i) execute and deliver to Landlord
an amendment to that certain Lease dated December 20, 1999, as amended, between
Landlord and Tenant for the premises at 925 Lightpost Way, Morgan Hill,
California, releasing certain rights of first offer, payment and option to
expand; (ii) execute and deliver to TBI-Madrone I, LLC an amendment to that
certain Lease dated December 20, 1999, as amended, between TBI-Madrone I, LLC
as landlord and Tenant for the premises at 900 Lightpost Way, Morgan Hill,
California, releasing certain rights of first offer, payment and option to
expand; and (iii) issue and deliver to Landlord a warrant to purchase 150,000
shares of Tenants common stock (the Warrant).  The Warrant shall be exercisable on or before the fifth
anniversary of the issuance dated of the Warrant and the exercise price for the
common stock underlying the Warrant shall be $2.00 per share.  Tenant shall have thirty (30) days after the
date of this Agreement to deliver the Warrant to Landlord.  Tenants failure to deliver the Warrant to
Landlord within such 30-day period shall constitute a default under the Lease
without further notice to Tenant.  -1- 
   3.             Attorneys Fees. If either party brings any action
or other proceeding to enforce or interpret any of the terms of this Agreement,
the prevailing party in such action or proceeding shall be entitled to recover
its attorneys fees and cost from the non-prevailing party. 4.             Successors and Assigns. This Agreement shall be
binding on and inure to the benefit of the respective heirs, successors and
assigns of the parties hereto. LANDLORD
  TENANTTBI-Mission West, LLC, a California
  Media Arts Group, Inc., a Delawarelimited liability company
  corporationBy
  TBI-MWP I, a California limited
  By
  /s/ Herbert D. Montgomerypartnership, Managing MemberIts
  CFOBy
  Toeniskoetter & Breeding, Inc.Development, a California corporation,General PartnerBy
  /s/  Brad W.
  KrouskupIts
  President  -2-