Document:

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                           Q COMM INTERNATIONAL, INC.

                                STOCK OPTION PLAN

1.  Purpose of Plan.

         This 2000 Stock Option Plan (the "Plan") is designed to assist Q Comm
International, Inc. (the "Company") in attracting and retaining highly qualified
persons as employees of the Company and its Subsidiaries and to provide such key
employees with incentives to contribute to the growth and development of the
business of the Company.

         This Plan will be effected through the granting of stock options on the
terms and conditions hereinafter provided, which options are intended to qualify
as "incentive stock options" within the meaning of section 422(b) of the
Internal Revenue Code of 1986, as amended.

2.  Definitions.

         Unless the context otherwise indicates, the following terms have the
following meanings:

         "Board" means the Board of Directors of the Company.

         "Code" means the Internal Revenue Code of 1986, as the same may from
time to time be amended.

         "Committee" means a committee consisting of at least three (3) persons
appointed by the Board to administer the Plan and to perform the functions set
forth herein.

         "Common Stock" means the Common Stock of the Company.

         "Designated Beneficiary" means the person designated by an optionee to
be entitled on his death to any remaining rights arising out of an option, such
designation to be made by written notice from the optionee to the Company in
accordance with such regulations as the Committee may create.

         "Employee" means any employee (including any officer) of the Company or
any subsidiary of the Company.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

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         "Fair Market Value" means the fair market value of the shares of Common
Stock ("Fair Market Value") shall be the last closing sale price on the
principal exchange on which the Common Stock is traded; or if not traded on any
exchange, shall then be the average of the last closing bid and asked price as
reported for the shares on the Over-the-Counter Bulletin Board ("OTCBB") or on
the last date preceding such date on which a sale was reported.

         "Incentive Stock Options" means stock options which constitute
incentive stock options within the meaning of Section 422(b), or any successor
section, of the Code having the provisions specified in the Plan for such
incentive stock options.

         "Parent" means "parent corporation" as defined in Section 425(e), or
any successor section, of the Code.

         "Stock Option Agreement" means a stock option agreement entered into
pursuant to the Plan substantially in the form of Exhibit A hereto.

         "Subsidiary" means "subsidiary corporation" as defined in Section 425
(f), or any successor section of the Code.

         "Ten Percent Stockholder" means any person who, immediately after any
option is granted to such person, owns within the meaning of Section 422 (b)(6),
or any successor section, of the Code more than 10% of the total combined voting
power of all classes of stock of the Company, its parent, if any, or its
Subsidiaries.

3.  Stock Subject to Plan

         The shares to be issued upon exercise of the options granted under the
Plan shall be Common Stock. The maximum number of shares of Common Stock for
which options may be granted under the Plan shall be 2,000,000 shares (subject
to adjustment as provided in Section 9 hereof). If any option granted under the
Plan shall expire or terminate for any reason whatsoever without having been
exercised in full, the unpurchased shares of Common Stock previously subject to
such option shall become available for new options.

4.  Administration.

         (a) The Plan shall be administered by the Committee. The Board shall
annually appoint the members of the Committee at the annual organizing meeting
of the Board.

         (b) The Board shall fill all vacancies on the Committee and may remove
any member of the Committee at any time with or without cause. The Committee
shall select its own chairman and shall adopt, alter or repeal such rules and
procedures as it may deem proper and shall hold its meetings at such times and
places as it may determine. The Committee shall keep minutes of its meetings.
Action by a majority of the Committee members present at any meeting at which a

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quorum is present, or action approved in writing by all members of the Committee
without a meeting, shall constitute the acts of the Committee.

         (c) Subject to the provisions of the Plan, the Committee shall have the
full and final authority to (i) determine the eligible employees of the Company
and its Subsidiaries to whom, and the times at which, options shall be granted
and the number of shares subject to each option; (ii) prescribe, amend and
rescind rules and regulations relating to the Plan; (iii) determine the
provisions of options granted under the Plan (which need not be identical) and,
with the consent of the holder thereof, amend or modify any option; (iv)
interpret the Plan and the respective options; and (v) make all other
determinations necessary or advisable for administering the Plan. All
determinations and interpretations by the Committee shall be binding upon all
parties. No member of the Committee or the Board shall be liable for any action
or determination made in good faith in respect of the Plan or any option granted
under it.

         (d) The provisions of this Section 4 shall survive any termination of
the Plan.

5.  Eligibility for Award of Options.

         (a) Options may be granted only to officers and other key employees of
the Company and its Subsidiaries. Any reference in the Plan to "employment by
the Company" shall also be deemed to include employment by any Subsidiary of the
Company. Determination by the Committee or the Board as to who are eligible
employees shall be conclusive.

         (b) A person who is a director of the Company shall not be considered
an officer or employee for the purpose of the Plan solely because he or she is a
director. However, a person who otherwise is an eligible officer or employee
shall not be disqualified by virtue of being a director of the Company or any
Subsidiary.

         (c) More than one option may be granted to any eligible employee.

6.  Option Price.

         The purchase price of the Common Stock under each option shall be
determined by the Committee. The purchase price shall be at least 100 percent
(100%) of the Fair Market Value of the Common Stock on the date of grant of
option. The purchase price under an option granted to an officer or employee who
is a Ten Percent Stockholder shall be at least 110% of the Fair Market Value of
the Common Stock on the date of the grant of the option.

7.  Annual Limitation on Grants to One Officer or Employee.

         No option shall be granted during any calendar year to any individual
under the Plan if the aggregate fair market value (as of the time the option is
granted) of the Common Stock with respect to which incentive stock options are
exercisable for the first time by such individual

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during any calendar year (under the Plan and any other plan of the Company, its
Parent, if any, and its Subsidiaries) exceeds $200,000.

8.  Terms and Exercise of Option.

         (a) Maximum Ten-Year Termination Date. Each option shall expire no
later than ten years after the date on which it shall have been granted, but the
Committee in its discretion may prescribe a shorter period for any individual
option or options. Any option granted to a person who is a Ten Percent
Stockholder shall terminate no later than five years after the date on which the
option was granted. The date of termination pursuant to this paragraph is
referred to hereinafter as the "termination date of the option."

         (b) Vesting. Options shall be exercisable at such times and in such
installments, if any, as the Committee may determine. In the event any option is
exercisable in installments, any shares which may be purchased during any year
or other period which are not purchased during such year or other period may be
purchased at any time or from time to time during any subsequent year or period
during the term of the option unless otherwise provided in the Stock Option
Agreement.

         (c) Means of Exercise of Option. An option shall be exercised by
written notice to the Secretary or Treasurer of the Company at its then
principal office which is received not later than 5:00 p.m. of the expiration
date. The notice shall specify the number of shares as to which the option is
being exercised and shall be accompanied by payment in full of the purchase
price for such shares. An optionee at his discretion may, in lieu of cash
payment, deliver Common Stock already owned, with a Fair Market Value (on the
date of exercise) equal to the purchase price for the shares being acquired
pursuant to the exercise of the option, as payment for the exercise of any
option. In the event an option is being exercised in whole or in part, pursuant
to Section 8 (f) or (g) hereof by any person other than the optionee, a notice
of election shall be accompanied by proof satisfactory to the Company of the
rights of such person to exercise said option. An optionee shall not, by virtue
of the granting of an option, be entitled to any rights of a shareholder in the
Company and he or she shall not be considered a record holder of shares
purchased by him until the date on which he shall actually be recorded as the
holder of such shares upon the stock records of the Company. The Company shall
not be required to pay to the person exercising the option the cash equivalent
of any fractional share interest unless so determined by the Committee.

         (d) Options are Nontransferable. No option may be transferred by the
optionee (except in connection with death or disability as provided in Sections
8(f) and (g)).

         (e) Options Lapse Three Months after Termination of Employment. In the
event of the termination of an optionee's employment by the Company and its
Subsidiaries at any time for any reason (excluding disability or death), the
optionee's options and all rights thereunder shall expire three months after the
date of termination of employment. The option shall be exercisable

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by the optionee at any time within three months, but only to the extent
exercisable by the optionee on the date of termination of his or her employment.

         (f) Option Exercisable Six Months After Termination in Event of
Disability. In the event the optionee is permanently and totally disabled
(within the meaning of Section 105(d)(4), or any successor section, of the
Code), the optionee's option and all rights thereunder shall expire six months
after the date of termination of employment. The option shall be exercisable by
the optionee (or the optionee's legal representative) at any time within such
six months.

         (g) Option Exercisable Six Months after Date of Death. If an optionee
shall die while in the employ of the Company or any of its Subsidiaries, his
option may be exercised by his designated beneficiaries (or if none have been
effectively designated, by his executor, administrator or the person to whom
rights under his option shall pass by way of his will or by the laws of descent
and distribution) at any time within six (6) months after date of his death, but
only to the extent exercisable by the optionee at his death. The option shall
expire six months after the date of the optionee's death.

         (h) No Right to Continued Employment. Nothing in the Plan or in any
option granted pursuant hereto shall confer on any individual any right to
continue in the employ of the Company or any of its Subsidiaries or prevent or
interfere in any way with the right of the Company or its Subsidiaries to
terminate the optionee's employment at any time, with or without cause.

         (i) Options Must be Evidenced by Writing. Each option granted pursuant
to the Plan shall be evidenced by a written Stock Option Agreement, duly
executed by the Company and the optionee, in such form and containing such
provisions as the Committee or Board may from time to time authorize or approve.

9.  Adjustments.

         The Stock Option Agreement shall contain appropriate provisions for the
adjustment of the kind and number of shares subject to each outstanding option,
and for the adjustment of the exercise price per share, in the event of any
changes in the outstanding Common Stock of the Company by reason of stock
dividends, stock splits, recapitalization, reorganizations, mergers,
consolidations, combinations or exchanges of shares, and the like. In the event
of any such change or changes in the outstanding Common Stock, and as often as
the same shall occur, the kind and aggregate number of shares available under
the Plan shall be appropriately adjusted by the Committee or Board, whose
determination shall be binding and conclusive.

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10.  Amendment and Termination.

         (a) Unless the Plan shall have been sooner terminated as provided
herein, it shall terminate on, and no option shall be granted thereunder after ,
2010. The Board may at any time prior to that date alter, suspend or terminate
the Plan as it may deem advisable, except that it may not without further
shareholder approval: (i) increase the maximum number of shares subject to the
Plan (except for changes pursuant to Section 9); (ii) extend the period during
which options may be granted or exercised; or (iii) make any other changes
unless the Board determines that the change would not materially increase the
cost of the Plan to the Company. Except as otherwise hereinafter provided, no
alteration, suspension or termination of the Plan may, without the consent of
the employee to whom any option shall have theretofore been granted (or the
person or persons entitled to exercise such option under Section 8(f) or (g) of
the Plan), terminate his option or adversely affect his rights thereunder.

         (b) Anything herein to the contrary notwithstanding, in the event that
the Board shall at any time declare it advisable to do so in connection with any
proposed sale or conveyance of all or substantially all of the assets of the
Company or of any proposed consolidation or merger of the Company, the Company
may give written notice to the holder of any option that his option may be
exercised only within thirty (30) days after the date of such notice but not
thereafter, and all rights under said option which shall have not been so
exercised shall terminate at the expiration of such thirty (30) days, provided
that the proposed sale, conveyance, consolidation or merger to which such notice
shall relate shall be consummated within six (6) months after the date of such
notice. In the event such notice shall have been given, any such option may be
exercised either in whole or in part notwithstanding the vested period required
under the terms of the option for the exercise thereof. If such proposed sale,
conveyance, consolidation or merger shall not be consummated within said time
period, no unexercised rights under any option shall be affected by such notice
except that such option may not be exercised between the date of expiration of
such thirty (30) days and the date of the expiration of such six (6) months.

11.  Indemnification.

         Any member of the Committee or the Board who is made, or threatened to
be made, a party to any action or proceeding, whether civil or criminal, by
reason of the fact that the member is or was a member is or was a member of the
Committee or the Board insofar as it relates to the Plan shall be indemnified by
the Company, and the Company may advance his related expenses, to the full
extent permitted by law or to any greater extent as provided in the Company's
Certificate of Incorporation or By-Laws or in any agreement between the Company
and the member.

12.  Effective Date of the Plan.

         The Plan shall become effective on, and options may be granted
thereunder after , 2000, provided, however, that if the Plan shall not be
approved by the holders of a majority of

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the outstanding voting stock of the Company within 12 months of said date, the
Plan and all options granted thereunder shall be and become null and void, and
provided, further, that no options granted by the Commission may be exercised
prior to the approval of the Plan by shareholders.

13.  Expenses.

         The Company shall pay all fees and expenses incurred in connection with
the establishment and administration of the Plan.

14.  Government Regulations.  Registration and Listing of Stock.

         (a) The Plan, and the grant and exercise of options thereunder, and the
Company's obligation to sell and deliver stock under such options, shall be
subject to all applicable federal and state laws, rules and regulations and to
such approvals by any regulatory or governmental agency as may be required.

         (b) Unless a registration statement under the Securities Act of 1933
and the applicable rules and regulations thereunder (collectively the "Act") is
then in effect with respect to shares issued upon exercise of any option (which
registration shall not be required), the Company shall require that the offer
and sale of such shares be exempt from the registration provisions of said act.
In furtherance of such exemption, the Company may require, as a condition
precedent to the exercise of any option, that the person exercising the option
give to the Company a written representation and undertaking, satisfactory in
the form and substance to the Company, that he or she is acquiring the shares
for his or her own account for investment and not with a view to the
distribution or resale thereof and otherwise establish to the Company's
satisfaction that the offer or sale of the shares issuable upon the exercise of
the option will not constitute or result in any breach or violation of the Act
or any similar state act or statute or any rules or regulations thereunder. In
the event a Registration Statement under the Act is not then in effect with
respect to the shares of Common Stock issued upon exercise of an option, the
Company shall place upon any stock certificate an appropriate legend referring
to the restrictions on disposition under the Act.

         (c) In the event the class of shares issuable upon the exercise of any
option is listed on any national securities exchange, the Company shall not be
required to issue or deliver any certificate for shares upon the exercise of any
options prior to the listing of the shares so issuable on such national
securities exchange and prior to the registration of the same under the Exchange
Act or any similar act or statute.

ATTEST:                              Q COMM INTERNATIONAL, INC.

/s/ Katie Benioni                   By: /s/ Paul C. Hickey
-----------------------------           ------------------------------------
Katie Benioni, Secretary                Paul C. Hickey, Chief Executive Officer

                                        7TAKE-TWO SOFTWARE DISTRIBUTION AGREEMENT
                                 (NORTH AMERICA)

     THIS DISTRIBUTION  AGREEMENT (this "Agreement") is made as of May 27, 1998,
by and between  TAKE-TWO  INTERACTIVE  SOFTWARE,  INC.,  a Delaware  corporation
("T2"), with offices at 575 Broadway, New York, New York 10012, and GATHERING OF
DEVELOPERS I, LTD. ("Gathering"),  a Texas limited partnership,  with offices at
2700 Fairmount, Dallas, Texas 75201.

                               W I T N E S S E T H

     WHEREAS,  Gathering  owns or controls  the rights in and to the Game Titles
(as defined below); and

     WHEREAS,  T2 is  engaged  in the  business  of  distributing,  selling  and
exploiting  Software Devices (as defined below) and desires to distribute,  sell
and otherwise exploit Software Devices embodying the Game Titles;

     NOW, THEREFORE,  in consideration of the premises, the mutual covenants and
agreements  contained  herein and other  good and  valuable  consideration,  the
receipt and sufficiency of which are hereby acknowledged, each of the parties do
hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     The following terms shall, unless the context requires otherwise,  have the
following  meanings  [whether  such words shall appear in lower case or with the
first letter of each word  capitalized]  (the foregoing shall apply to all other
defined terms used in this Agreement):

     (a) The term "Basic Term" means the period  commencing  on the date of full
execution of this Agreement and ending four (4) years later.

     (b) The term "Bug" means a repeatable  phenomenon of  unintended  events or
actions during the running of a Software  Device (as defined below) under normal
conditions that results in:

          (i) the  software  being  unable to  perform  repeatedly  and  without
     interruption;

          (ii) a material  failure of the  software to conform to the  technical
     specifications in Exhibit "A";

          (iii) a material detriment to the functionality of the software;

          (iv) a material detriment to the visual representation or sound of the
     software; or

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          (v) the destruction or corruption of data.

     (c) The term  "Deliver,"  "Delivered"  or  "Delivery"  means  the  physical
transfer to T2 of Distributed  Products for each fully  completed Game Title (as
defined below) as provided in this Agreement.

     (d) The term  "Delivery  Date"  means,  with respect to each Game Title the
date set forth  opposite  such Game Title in Section 1(i) and other dates as may
be agreed to by the parties.

     (e) The term  "Distributed  Product(s)"  means Software Devices embodying a
Game Title;  which Game Title and Software  Devices are produced by or on behalf
of Gathering for the Game Machines, the distribution rights to which are granted
to T2 pursuant to Section 2(a), below.

     (f) The term  "Documentation"  means the technical  documentation  for each
Game Title in accordance with Exhibit "A" attached hereto.

     (g) The term "Exploitation  Period" with respect to each Game Title covered
by the terms hereof means the date  commencing on the date hereof and ending the
later to occur of (i) the  expiration  of the Basic Term, or (ii) the date which
is three (3) years  following the initial release of each such Game Title in the
Territory by T2.

     (h) The term "Game  Machine(s)"  shall mean the personal  computer platform
devices  and  personal  computer  operating  systems on which  units of the Game
Titles are played, including, but not limited to, those containing and using the
operating  systems of Windows(TM) and  Macintosh(TM).  Game Machine(s) shall not
include  any other media or  platform  utilized  for  interactive  video  games,
including,  but not  limited  to, (i) game  console  platforms  such as Nintendo
64(TM), Sony PlayStation(TM),  or Sega Genesis(TM) ("Console  Platforms");  (ii)
standalone, network or other arcade games; or (iii) any other inter-active media
utilized for similar purposes such as satellite, Internet or cable distribution.

     (i)  The  term  "Game  Title"  or  "Game  Titles"  means,  individually  or
collectively,  as the context requires, the following computer software products
developed by or on behalf of Gathering and currently referred to as:

<TABLE>
<CAPTION>
               Title                    Delivery Date              Developer
               -----                    -------------              ---------
<S>           <C>                     <C>                    <C>
     (i)      Railroad Tycoon 2       December 31, 1998      PopTop Software, Inc.

     (ii)     Flight                  December 31, 1998      Terminal Reality, Inc.

     (iii)    Max Payne               June 30, 1999          Apogee Software/3D Realms

     (iv)     FAKK 2                  September 30, 1999     Ritual Entertainment, Inc.

     (v)      Unreal Based Game X     December 31, 1999      Epic Megagames, Inc.

     (vi)     Rat Patrol              June 30, 2000          Terminal Reality, Inc.
</TABLE>

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<PAGE>

<TABLE>
<S>           <C>                     <C>                    <C>
     (vii)    Stunts                  September 30, 1999     Terminal Reality, Inc.

     (viii)   Nocturne                December 31, 1999      Terminal Reality, Inc.

     (ix)     Jazz Jackrabbit         December 31, 1998      Epic Megagames, Inc.

     (x)      Next unnamed            To be determined.      unknown
</TABLE>

     (j) The term "Gross  Invoice  Price" means the price listed on T2's invoice
to its customers for sales of Distributed Product(s).

     (k) The term  "Manual"  means a document  which  describes  in English  the
operation and functions of the computer  software and contains  instructions for
using the Distributed  Products.  It must be written in a style calculated to be
understandable  to an  English  reading  end-user  with  little  or no  computer
experience and must contain information sufficient to enable such an end-user to
use the Distributed Product

     (l) With respect to each Game Title, the term "Net  Distribution  Receipts"
means  all  sums  actually  received  by T2  from  its  customers  on  sales  of
Distributed  Products  for such Game Title  less (i) any and all  excise  taxes,
value added or  comparable  or similar taxes paid or payable by T2, (ii) freight
and  similar  third  party  handling  charges  paid or  payable by T2, and (iii)
returns,  discounts,  allowances or credits  (inclusive of co-op,  discounts and
allowances)  on account of the sale of the  Distributed  Products  for such Game
Title. For purposes hereof, T2 shall be deemed to have actually received payment
on an invoice from one of T2's customers upon actual receipt of such payment.

     (m)  With  respect  to  each  Game  Title,  the  term  "Net  Monies"  means
Gathering's share of Net Distribution Receipts.

     (n) With respect to each Game Title, the term "Net Remaining  Monies" means
the amounts  payable to Gathering  following T2's  recoupment from Net Monies of
any amounts  attributable to such Game Title advanced to Gathering under Section
5(a).

     (o)  The  term  "T2"  means  and  includes  without  limitation  all of the
following:  Take  Two  Interactive  Software,  Inc.  or  any  company  owned  or
controlled by, or under common control with, Take Two Interactive Software, Inc.
or any subsidiary,  including  Alliance Inventory  Management,  Inc., ("AIM") or
parent  company of Take Two  Interactive  Software,  Inc. For  purposes  hereof,
"control" shall mean the ownership of more than 51% of the voting interests of a
company or the power,  direct or indirect,  to direct or cause the  direction of
the  management  and policies of any company  whether  through the  ownership of
voting  securities,  by contract or otherwise.  Gathering  acknowledges that AIM
will be performing T2's obligations hereunder.

     (p) The term "sku" means stock keeping unit.

                                      -3-
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     (q) The term  "Software  Device"  means any  device,  whether  now known or
unknown, on or by which computer software and its associated visual images, with
or without sound, may be embodied or recorded for later operation,  manipulation
or communication to users,  including without limitation  semiconductor devices,
compact discs (or other type of optical disc),  ROM  Cartridges,  cassettes,  or
magnetic discs  (whether  floppy or otherwise) of any size,  tapes,  cartridges,
boards, cassettes, or other prerecorded devices whatsoever existing now or later
developed  by which a computer  or video game can be  perceived,  reproduced  or
otherwise communicated directly or with the aid of a machine or device and which
are designed and used for use with the Game Machines.

     (r) The term  "Territory"  means the  United  States  and  Canada and their
respective  territories,  possessions and military  installations  (including PX
Stores and Military Exchanges) wherever located.

                                    ARTICLE 2
                                 RIGHTS GRANTED

     Subject  to the terms of this  Agreement,  Gathering  hereby  grants and T2
hereby accepts the following exclusive rights:

     (a) Distribution Rights:

          (i)  Gathering   hereby   engages  T2,  and  T2  hereby  accepts  such
     engagement,  to  act as  Gathering's  sole  and  exclusive  distributor  of
     Distributed  Products  throughout  the Territory  and for the  Exploitation
     Period of each Game Title to be  distributed  hereunder for use on the Game
     Machines.  During  the  Exploitation  Period  for each Game  Title,  T2 may
     distribute such Distributed  Products through any and all means of standard
     retail  channels  distribution,  but in no event  shall T2  distribute  the
     Distributed  Products  through  "bundling" or OEM sales, or to end-users by
     mail, over the air, telephone,  satellite,  cable, by electronic or digital
     delivery  systems,  whether now known or  hereafter  devised,  or any other
     means  which  Gathering  reasonably  deems or may  deem not to be  standard
     retail channels in accordance with the then applicable  industry  standard.
     With  respect  to the  distribution  of  the  Distributed  Products  in the
     Territory via end-user on-line  distribution  ("On-line  Distribution") and
     multi-player  gaming,  T2's right to engage in such  distribution  shall be
     non-exclusive  and shall not prohibit  Gathering from also engaging in such
     distribution.   With  respect  to  each  Game  Title,  subject  to  On-line
     Distribution and the terms of this Agreement, Gathering will not for itself
     or  knowingly  permit  any third  party to sell or  distribute  Distributed
     Products  through standard retail channels of distribution in the Territory
     during the  Exploitation  Period for such Game Title.  With respect to each
     Game Title  other than Jazz  Jackrabbit  II,  Gathering  shall not offer or
     promote  the sale or  knowingly  allow  third  parties to offer,  market or
     distribute any of the Distributed  Products  outside of the Territory prior
     to the  initial  release of such Game Title in the  Territory  by T2.  With
     respect to each Game Title,  Gathering  shall not offer or promote the sale
     of a fully  accessible  version  of such Game  Title,  other  than  through
     On-line  Distribution,  in the  Territory  for a period of ninety (90) days
     after the  initial  date of release of such Game  Title  without  the prior
     consent of T2. For purposes of this Agreement, a "fully accessible version"
     of such Game Title

                                      -4-
<PAGE>

     shall not include shareware of such Game Title in which the full version of
     such Game Title is  encrypted.  With  respect to On-line  Distribution,  T2
     shall  receive a Fee of ten percent  (10%) of gross  income paid to T2 less
     costs of goods sold for each individual Distributed Product sold thereby by
     T2.

          (ii) T2 shall have the right to use,  publish and permit others to use
     and  publish  Gathering's  name  as  well  as any  names  of or  trademarks
     associated  with or  embodied  in any  Game  Title or any  reproduction  or
     simulation  thereof and,  subject to any contractual  restrictions of which
     Gathering has advised T2 (and which are set forth on Schedule  2(a)(ii) and
     as may be updated  from time to time by  Gathering),  the  script,  speech,
     images,  characters,  characterizations,  designs,  graphics,  artwork, and
     other  characteristics  associated with each Game Title as well as the name
     of each Game Title in connection with the sale,  advertising,  distribution
     and exploitation thereof.

          (iii) The right, for advertising,  publicity and promotional purposes,
     to perform the Distributed  Products  publicly and to permit the reasonable
     public performance thereof.

          (iv)  The  right  to use  all  artwork,  textual  material  and  other
     materials  used for or by Gathering  in  connection  with such  Distributed
     Products,   including   advertising,   packaging  and  wrapping   materials
     (collectively,  "Packaging and Promotional Materials") created by Gathering
     in connection therewith.

     (b) (i) Gathering,  or the developer of the Game Title, as the case may be,
shall  own  the  copyright  and  other  rights  to the  Game  Software,  and any
packaging,  advertising  and  promotional  material  produced by  Gathering  and
delivered  to T2 for any Game Title.  Subject to the prior  written  approval of
Gathering  and in the  event  T2 is  called  upon or  required  to  produce  any
packaging,  advertising  or promotional  material for a Game Title,  or make any
additions to, or new renderings,  modifications  or  embellishments  of, artwork
delivered by Gathering hereunder,  T2 agrees to assign, and hereby assigns to T2
the  copyright  and other  rights  thereto,  and agrees to execute  such further
documentation as T2 may request to evidence such assignments.

     (ii)  Except as set forth in Section  2(a),  as between  Gathering  and T2,
Gathering,  or the developer of the Game Title,  as the case may be, retains all
copyright,  patent, trade secret,  trademark and trade name rights in and to the
Distributed  Products,   including  all  packaging,   designs,  logos,  slogans,
advertising  materials  and  promotional  materials  and in all other  materials
relating to the Game Software  (collectively,  "Gathering's  Property"),  and T2
will not  have or  acquire  any  right,  title or  interest  therein  under  any
circumstance  whatsoever.  T2 further  acknowledges  that its use of Gathering's
Property  shall inure to the benefit and be on behalf of  Gathering;  and use of
Gathering's  Property will not create any right,  title or interest by or for T2
therein.  T2 shall not, during the Term of this Agreement or thereafter,  attack
Gathering's, or the developer's of the Game Title, as the case may be, ownership
of Gathering's  Property or the validity thereof,  or apply for any registration
or file any document or take any action which would affect  Gathering's,  or the
developer's  of the Game Title,  as the case may be,  ownership  of  Gathering's
Property or  knowingly  aid or abet anyone else in doing so, or use or authorize
the use of any trademark, trade name or words, symbols or combination thereof or
other designation identical with

                                      -5-
<PAGE>

or confusingly  similar to the  trademarks  and/or trade names which are part of
Gathering's  Property. T2 will not alter, remove,  obscure,  erase or deface any
proprietary  rights notices  contained on or  incorporated in any SKU related to
Gathering's  Property  or the  packaging  of any  SKU.  related  to  Gathering's
Property In the event T2 is called  upon or  required to produce any  packaging,
advertising and promotional  material for a Game Title, T2 will (i) in the event
such  obligation  or request  comes from a person other than  Gathering,  notify
Gathering  in  writing  of  such  obligation;  and  (ii)  include  thereon  such
proprietary rights notices as may be designated and approved by Gathering.

     (iii) In the event T2 is called upon or required to produce any  packaging,
advertising or promotional  material for a Game Title, or make any additions to,
or new renderings,  modifications  or  embellishments  of, artwork  delivered by
Gathering  hereunder,  Gathering shall have the right to approve such materials,
such approval not to be unreasonably  withheld or delayed. If disapproval is not
received by T2 within twenty (20) business days after Gathering's receipt of the
item submitted for approval,  then Gathering's  approval of such matter shall be
deemed to have been given.

     (iv) With respect to the Distributed  Products,  this Agreement only grants
to T2 a  license  to  offer a  license  to  such  Distributed  Products  to T2's
customers and their  Customers  and does not transfer to T2 any right,  title or
interest in or to any software therein, notwithstanding any "purchase" or "sale"
or similar language contained herein.

     (c) With  respect  to the  distribution  of the  Game  Titles  for  Console
Platforms in North  America,  Europe,  Israel,  Australia  and Africa,  T2 shall
receive a right of first  refusal  to meet the  material  terms of  distribution
deals offered by Gathering to third  parties to  distribute  the Game Titles for
Console Platforms in the Territory. T2 shall have fifteen (15) days from receipt
of notice from Gathering  setting forth the material terms upon which  Gathering
anticipates  offering  third parties the right to distribute the Game Titles for
Console  Platforms in the  Territory to enter into an agreement  with  Gathering
which  incorporates  such material terms. In the event that T2 does not exercise
this right within fifteen (15) days, it will be deemed to have refused its right
of first refusal with respect to and only to such material terms.

                                    ARTICLE 3
                             GATHERING'S OBLIGATIONS

     (a)  Gathering  represents  that it has designed or has had designed on its
behalf the computer  software and  Documentation  for each of the Game Titles so
that they may be operated and  perceived  through the Game  Machines.  Gathering
will  consider in good faith all changes  requested  by T2 before the product is
released.

     (b) Gathering shall be solely responsible for the manufacture,  advertising
and marketing of such  Distributed  Products,  except as may be provided  below.
Gathering  will  place  such   advertising  in  publications  as  it  reasonably
determines,  and  may  consult  with  T2  on a  regular  basis

                                      -6-
<PAGE>

concerning such advertising  plans.  Gathering agrees to spend for the marketing
and  advertising  of  Distributed  Products a minimum of FIVE  HUNDRED  THOUSAND
DOLLARS ($500,000) for each Game Title distributed by T2 hereunder.

     (c)  Gathering  shall  manufacture  or have  manufactured  the  Distributed
Products pursuant to mutually agreeable specifications for packaging, design and
configuration.  T2 shall, at its sole cost, ship or have shipped the Distributed
Products,  F.O.B.  at  Gathering's  storage  facility or such other  facility or
warehouse as Gathering  may  hereafter  notify T2. T2 shall be  responsible  for
shipment  and  insurance  of  the  Distributed  Products  to T2 and  from  T2 to
Gathering.

     (d) Gathering and T2 shall, prior to the release of any Game Title, discuss
in good  faith  the  projected  sales for such  title  and based on  Gathering's
projected sales for such title,  Gathering shall thereafter  deliver  sufficient
quantities  of such  title to T2 to  enable T2 to meet  such  sales  projection.
Gathering  agrees,  at its  expense,  that it will use  commercially  reasonable
efforts to fill any orders for manufactured Distributed Products consistent with
such projected sale placed by T2.  Notwithstanding  the foregoing,  or any other
provision  to the  contrary  contained  herein,  T2 shall  not be  obligated  to
maintain  at its  warehouse  at any  one  time  quantities  of  any  title  of a
particular  Game  Title in  excess  of that  which  is  necessary  to meet  T2's
customers' orders for any consecutive four (4) month period.

     (e)  Gathering  will  place  the  machine,   medium  and  other   operating
requirements  (such as minimum memory capacity) on each  Distributed  Product as
Gathering,  at its reasonable  determination,  deems  necessary.  Gathering will
shrink-wrap all Distributed Products and will incorporate into the design of the
packaging all relevant bar code information.

     (f) Gathering  agrees to use its best efforts,  consistent  with prevailing
industry  standards,  to ensure that each  Distributed  Product in the different
configurations  in which the  Distributed  Product is designated to run shall be
free of Bugs.  Gathering agrees to conduct all testing using equipment  designed
to operate in accordance with  electrical and design  standards as are normal in
the United States. T2 shall notify Gathering in writing if it discovers any Bugs
or defects in any Distributed  Products.  Gathering shall be responsible for all
costs  associated  with any recall or return on credit of Game Titles  resulting
from Bugs in the Distributed Products.

         (g) If applicable,  Gathering agrees that all Distributed Product shall
be rated by the appropriate  video game or software  publishers rating committee
or board in such  countries  within the territory  where video games or software
publisher  ratings have been  instituted  by law,  statute or regulation of such
country or where such a ratings have been accepted by a majority of the software
publishers within such country.  The packaging embodying any Distributed Product
so rated shall have  affixed to it the rating  given by such  applicable  rating
board or agency.

         (h) Title to all Distributed Products shall remain with Gathering while
in inventory at T2's warehouse  facilities.  Gathering  shall have the right, on
not less than 72 hours  prior  notice to T2 to  inspect  its  inventory  at T2's
warehouse  facilities  during  normal  business  hours.  Upon  shipment  of  any
Distributed  Product by T2 to one of its  customers,  title to such  Distributed
Product

                                      -7-
<PAGE>

shall then be immediately transferred to and vest with T2 until delivery thereof
to a  customer  at which time title to such  Distributed  Product  shall then be
transferred to and vest with such customer.  In case any Distributed  Product is
returned to T2 by one of T2's customers, title to such Distributed Product shall
vest with T2 upon such  Distributed  Product  leaving  such  customer  and shall
remain  with  T2  until  such  Distributed  Product  is  restocked  by T2 in its
inventory,  at which  time title to such  Distributed  Product  shall  return to
Gathering.

                                    ARTICLE 4
                                T2'S OBLIGATIONS

     T2 shall  perform  the  following  sales and  distribution  functions  with
respect to Distributed Products:

     (a) T2 shall use its best  efforts,  consistent  with  prevailing  industry
standard,  to sell and distribute the Distributed  Products subject to the terms
of this Agreement.  T2 shall sell the Distributed Products at wholesale price(s)
determined by Gathering in consultation with T2 prior to the scheduled  release.
In addition,  the sales policies (including discount rates and returns policies)
for  Distributed  Products  shall be as mutually  approved by Gathering,  T2 and
Strategic  Marketing  Partners,  Inc.  ("SMP"),  with  such  approval  not to be
unreasonably withheld. Adjustments,  discounts, credits, returns and settlements
afforded  to trade  customers  shall be subject  to  Gathering's  prior  written
approval, with such approval not to be unreasonably withheld.

     (b) Provide  warehousing  for  Gathering's  Distributed  Products,  fulfill
orders (i.e.  provide "pick,  pack and ship"  services) and manage,  process and
restock returns of Distributed Product, if any.

     (c) Invoice and collect from customers for Distributed Products distributed
pursuant to this Agreement.  T2 shall be solely responsible for extending credit
and  assuming  the risk of bad debts;  provided  that if  Gathering  requests in
writing  that T2 extend  credit (or  additional  credit) to a customer  which T2
believes to be not worthy of such credit risk (or extended credit risk), then T2
shall so notify  Gathering in writing and  Gathering  (and not T2) shall then be
solely  responsible for any subsequent  default in the payment of any obligation
by such customer and T2 shall have the right in such event,  notwithstanding any
provision to the contrary  contained  herein, to deduct the amount of any unpaid
indebtedness  resulting  from such default in payment from Net Monies  otherwise
payable hereunder.

     (d) Provide  Gathering  with the monthly  reports  pursuant to Section 6(a)
regarding sales and inventory of Distributed  Products including the information
as described in this Agreement and in Exhibit "C" attached to this Agreement and
incorporated  herein  by  this  reference.  With  respect  to each  Game  Title,
notwithstanding  anything to the  contrary  in this  Section  4(d),  all monthly
reports  provided to Gathering by T2 shall be  sufficient in recording all sales
and promotional  distributions of units of Distributed Products,  detailing with
reasonable  specificity (i) the number of units of Distributed  Products sold or
otherwise  distributed;  (ii) the Net Distribution Receipts, Net

                                      -8-
<PAGE>

Monies,  and Net Remaining  Monies  attributable  thereto;  and (iii) a complete
listing of all deduction and offsets from Net Remaining  Monies,  whether due to
recoupment of amounts  attributable  to such Game Title advanced to Gathering or
otherwise.

     (e) Manage and implement co-op advertising  programs and marketing displays
devised by Gathering in consultation with T2, and provide merchandising services
limited to placement  and  management  of  point-of-sale  materials  produced by
Gathering.

     (f) Provide that the fire and theft  insurance that T2 presently  maintains
on its warehouse facilities shall, subject to the terms of such Policies,  apply
to  Distributed  Products.  In the event of a covered loss  affecting any of the
Distributed Products, Gathering shall be entitled to share in any recovery under
such Policy as may be applicable to such  Distributed  Products lost or damaged,
provided that T2 shall be responsible for that portion of the deductible on such
policies as may be applicable to such  Distributed  Products lost or damaged and
for which  coverage  is sought,  and  further,  T2 shall have no  obligation  to
Gathering  beyond the stated  provisions  of its insurance  policies.  Gathering
shall be named as an additional insured under the foregoing policies which shall
provide for thirty day notice to Gathering prior to cancellation.

                                    ARTICLE 5
                                  CONSIDERATION

     (a)  Apportionment  of Net Distribution  Receipts:  On sales of Distributed
Products in the Territory,  Net  Distribution  Receipts  derived from such sales
shall be apportioned as follows:

          (i) First, T2 shall have the right,  but not the obligation to retain,
     as a reserve  against  charges,  credits,  or returns,  such portion of Net
     Distribution  Receipts  as  shall  be  reasonable  in  T2's  best  business
     judgment;  provided,  however,  that (i) no such  reserve  shall exceed ten
     percent  (10%) of such  accrued  Net  Distribution  Receipts;  and (ii) the
     balance  of each such  reserve  shall be  distributed  in  accordance  with
     Section  5(a)(ii) and 5(a)(iii),  not later than four (4) months after such
     reserve is  established.  With  respect  to each Game Title and  subject to
     Section 5(a)(i)(ii), notwithstanding the foregoing, T2 shall be entitled to
     an increase in returns reserve to a maximum of Fifteen Percent (15%) of the
     Net Distribution Receipt during the last six (6) months of the Exploitation
     Period for any Game Title,  if T2 reasonably  anticipates  that the returns
     reserve  permitted by the preceding  sentence will be insufficient to cover
     returns  of  such  Game  Title  during  the  subsequent  months  after  the
     termination of the Exploitation Period.

          (iii) Second,  with respect to each Game Title, except as set forth in
     Section  5(b),  T2  shall  deduct  from  the  Net   Distribution   Receipts
     attributable  to such Game Title after  establishing  the reserve,  if any,
     described in paragraph (i) and retain for its own account,  a  distribution
     fee ("Fee")  based on a percentage of the Gross Invoice Price from original
     sales of units of the Distributed  Products  relating to such Game Title as
     set forth below:

                                      -9-
<PAGE>

Units of the Individual Distributed Products   Percentage of Gross Invoice Price
--------------------------------------------   ---------------------------------
0 to 249,999                                                20%
250,000 to 399,999                                          15%
400,000 +                                                   12%

     T2 shall be  responsible  for  paying  from its own funds any and all fees,
     royalties,  revenues or other  monies  payable by  Gathering to SMP up to a
     maximum of three  percent (3%) of gross  invoice of each Game Title less an
     allowance for returns and  discounts  that is actually paid for pursuant to
     any representation agreement between Gathering and SMP with respect to such
     Game Title (the "SMP Agreement"). T2 shall indemnify Gathering with respect
     to any claims made against  Gathering by or on behalf of SMP arising out of
     the non-payment of such amounts to SMP, under the same terms and conditions
     set forth in Article 8.

          (iii)  Third,  with  respect to each Game  Title,  up to Seventy  Five
     Percent (75%) of the balance of Net Distribution  Proceeds  remaining after
     establishment  of the reserve  described in paragraph (i) above and payment
     to T2 of its Fee  shall  be  available  as Net  Monies  out of which T2 may
     recoup any unrecouped portion of any Guarantee payments attributable to the
     Game Titles in accordance with Section 5(c).

     (b)  Notwithstanding  the  provisions of Section  5(a), on any  Distributed
Products  which are resold  after  being  returned to T2 and  restocked  in T2's
warehouse,  the Fee on such  sale(s)  shall be five  percent  (5%) of the  Gross
Invoice Price from such sales.

     (c) Guarantee::

          (i)  Subject to Section  5(c)(iv),  below,  T2 shall pay to  Gathering
     SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS  ($7,500,000) as a guarantee of
     Net Monies hereunder  ("Guarantee.").  For Purposes of this Agreement,  the
     Guarantee shall be apportioned  among the Game Titles on the basis of SEVEN
     HUNDRED FIFTY THOUSAND DOLLARS ($750,000) per Game Title:

          (ii) The Guarantee shall be paid by T2 to Gathering as follows:

               (a)  FIVE MILLION DOLLARS ($5,000,000) on or before May 27, 1998.

               (b)  ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS  ($1,250,000)
                    paid to  Gathering  on the later to occur of (i)  August 15,
                    1998,  or (ii) upon delivery by Gathering to and accepted by
                    T2 of the Beta and Gold Master  products of Jazz  Jackrabbit
                    II, such acceptance not to be unreasonably withheld.

                                      -10-
<PAGE>

               (c)  TWO  HUNDRED  FIFTY  THOUSAND  DOLLARS  ($250,000)  paid  to
                    Gathering  upon the later to occur of (i) October 15,  1998,
                    or (ii)  delivery by  Gathering to and accepted by T2 of the
                    Beta product for Railroad  Tycoon II, such acceptance not to
                    be unreasonably withheld.

               (d)  FIVE HUNDRED THOUSAND  DOLLARS  ($500,000) paid to Gathering
                    upon the later to occur of (i)  October  15,  1998,  or (ii)
                    delivery  by  Gathering  to and  accepted  by T2 of the Gold
                    Master product for Railroad  Tycoon II, such  acceptance not
                    to be unreasonably withheld.

               (e)  FIVE HUNDRED THOUSAND  DOLLARS  ($500,000) paid to Gathering
                    upon the  later to occur  of (i)  October  15,  1998 or (ii)
                    delivery  by  Gathering  and  acceptance  by T2 of the  Gold
                    Master product for Fly!, such acceptance not be unreasonably
                    withheld.

                                    ARTICLE 6
                                   ACCOUNTINGS

     (a) With respect to each Game Title,  statements as to the  calculation  of
Net Monies  hereunder  ("Statements")  shall be sent by T2 to  Gathering  within
forty-five  (45) days  following  the end of each monthly  period  together with
payment of Net Remaining Monies for such Game Title, if any, earned by Gathering
hereunder during such monthly period.

     (b) Net Monies in respect of sales  hereunder  outside of the United States
shall be  computed  in the  national  currency  in which T2 is paid and shall be
credited to Gathering's  account hereunder at the same rate of exchange as T2 is
paid (or T2's account is credited),  and shall be proportionately subject (based
on T2's Fee rate  hereunder)  to any  taxes  imposed  on the  remittance  of the
receipts derived from the sale of Distributed Products from the country in which
the sale is made to the United States to the extent actually paid or incurred by
T2. In the event T2 shall not receive  payment in United  States  dollars in the
United  States  (because the  remittance  of such monies to the United States is
prohibited  or restricted  by law or other  regulations)  in respect of any such
sales,  Net Monies in  respect  thereof  shall not be  credited  to  Gathering's
account  hereunder.  T2  shall,  however,  if T2 is able to do so,  accept  such
payments in foreign currency and deposit such foreign currency in a foreign bank
or other  depository,  at  Gathering's  expense and in  Gathering's  name,  such
portion thereof, if any, as shall equal the Net Monies which would have actually
been payable to Gathering  hereunder in respect of such sales had such  payments
been made to T2 in United  States  currency  in the  United  States.  Deposit as
aforesaid shall fulfill T2's obligations hereunder as to such sales.

     (c) All Statements and all other accountings rendered by T2 hereunder shall
be  conclusive,  final,  and binding on Gathering,  shall  constitute an account
stated,  and shall not be

                                      -11-
<PAGE>

subject  to any  question  for any reason  whatsoever  unless  specific  written
objection, stating the basis thereof, is given by Gathering to T2 within two (2)
years after the date rendered.  No action,  suit, or proceeding of any nature in
respect of any  Statement or other  accounting  rendered by T2 hereunder  may be
maintained  against T2 unless such  action,  suit,  or  proceeding  is commenced
against T2 in a court of competent jurisdiction within three hundred sixty (360)
days after the date of T2's written  notice  delivered  to  Gathering  rejecting
Gathering's objection.

     (d) T2 shall maintain, at its executive offices, which are presently in New
York, New York, books of account  concerning  sales of the Distributed  Products
hereunder. Gathering, or its representatives,  may, at Gathering's sole expense,
examine  T2's said books (no more often than twice a year)  relating to the sale
of the Distributed  Products hereunder,  solely for the purpose of verifying the
accuracy  thereof,  only during T2's normal  business hours and upon  reasonable
prior written  notice.  Such books relating to any  particular  statement may be
examined  as  aforesaid  only  within  two (2) years  after  the date  rendered.
Gathering  shall notify T2 in writing  within ninety (90) days after  completing
such  examination  if Gathering  believes that T2's books are not accurate,  and
supply  T2  with a  report  including  a  description  of any  and  all  alleged
inaccuracies   contained   therein.   Gathering,   T2   and   their   respective
representatives   shall  keep  all  information  obtained  in  such  examination
confidential and to use such information solely for the purpose of this Section.
If any additional  monies are shown to be payable by T2 to Gathering  based upon
an  examination  and such amount  shown due exceeds five percent (5%) of the Net
Monies  previously paid by T2 in relation to the particular  Statement(s)  which
may be the subject of the  examination,  T2 shall reimburse the reasonable costs
of such examination and fees and expenses  related thereto,  as and when paid by
Gathering,  plus  interest at the lesser of (a) a rate of five  percent over the
Prime Rate charged by NationsBank, N.A., plus three percent (3%), or the maximum
lawful rate on such unpaid amount to be computed from the first date such monies
were to have been accounted for.

     (e) With  respect  to any claim by  Gathering  that  additional  monies are
payable by T2 to Gathering  pursuant to this Agreement based upon an examination
by Gathering to T2's books and records, T2 shall not be deemed in breach of this
Agreement  unless within  forty-five (45) days after T2's receipt of Gathering's
written claim that additional monies are due and payable together with a copy of
the examination  report prepared in connection with such  examination,  T2 shall
neither: (i) pay such additional monies so claimed by Gathering, nor (2) contest
such claim,  in whole or in part, by written  notice to Gathering  specifying in
reasonable  detail the grounds for contesting  such claim. In the event T2 shall
so contest  any such  claim,  T2 shall not be deemed in breach of this  contract
unless such claim shall have been  reduced to a judgment by a court of competent
jurisdiction or resolved by binding  arbitration and T2 shall have failed to pay
Gathering  the amount  thereof  within three (3) business  days after  Gathering
shall have received notice of the entry of such final non-appealable judgment.

     (f) T2 has not made and does not hereby make any representation or warranty
with respect to the quantity of sales (if any) of Distributed Products embodying
the Game Titles which T2 may sell.  Gathering  recognizes and acknowledges  that
the sale of Distributed  Products is  speculative  and agrees that T2's judgment
with regard to the sales of any of its  Distributed  Products and with regard to
the  marketing,  promotion,  advertising  and  exploitation  of the  Distributed

                                      -12-
<PAGE>

Products shall be binding and conclusive upon Gathering  absent gross negligence
or willful  misconduct on the part of T2. Gathering  warrants and agrees that it
will not make any claim,  nor shall any  liability be imposed upon T2 based upon
any claim,  that more sales could have been made or that better  business  could
have been done than what was actually  made or done by T2, or that better prices
or terms could have been  obtained so long as T2 has  complied,  in all material
respects,  with  its  obligations  hereunder  and in a  manner  consistent  with
industry practice.

                                    ARTICLE 7
                         REPRESENTATIONS AND WARRANTIES

     (a) T2 hereby warrants and represents that

          (i) This Agreement has been duly authorized, executed and delivered by
     T2; T2 has the full power and authority to enter into this Agreement and to
     perform its obligations hereunder and is free to enter into this Agreement;
     this  Agreement  constitutes  the  valid  and  binding  obligation  of  T2,
     enforceable in accordance  with its terms;  the making of this Agreement by
     T2 does not violate any agreement,  right or obligation existing between T2
     on the one hand, and any other person,  firm or  corporation,  on the other
     hand.

          (ii) No consents of any third  parties  are  required  for T2 to enter
     into and perform this Agreement.

          (iii) T2 has no arrangement or interest,  which is  inconsistent or in
     conflict with this Agreement,  or which would prevent, limit, or impair, in
     any way, either T2's or Gathering's  performance of any of the covenants or
     duties herein set forth.

          (iv) T2 is  experienced  in the  distribution  of video  games and has
     sufficient qualified personnel to carry out its obligations hereunder.

     (b) Gathering hereby represents and warrants that:

          (i) This Agreement has been duly authorized, executed and delivered by
     Gathering;  Gathering  has the full power and  authority to enter into this
     Agreement  and to perform its  obligations  hereunder  and is free to enter
     into this  Agreement;  this  Agreement  constitutes  the valid and  binding
     obligation of Gathering,  enforceable  in  accordance  with its terms;  the
     making of his Agreement by Gathering does not violate any agreement,  right
     or obligation  existing  between  Gathering on the one hand,  and any other
     person,  firm or  corporation,  on the other  hand;  and except for the SMP
     Agreement,  Gathering  has not  heretofore  granted  any rights to the Game
     Titles to any other  person,  party or company for use in the  Territory in
     connection with the Distributed Products for the Game Machines.

          (ii) Except for the SMP  Agreement,  no consents of any third  parties
     are required for Gathering to enter into this Agreement or grant the rights
     granted herein to T2.

                                      -13-
<PAGE>

          (iii)  All Game  Titles  are or  shall be  original  and  neither  the
     computer  software  nor  the  Documentation  thereto,  or any  part  of any
     character,  object, sound or music embodied in Software, infringes or shall
     infringe  upon any  common  law or  statutory  rights  of any  third  party
     including,  without limitation,  contractual rights,  patents,  copyrights,
     mask-work rights,  trade secrets,  rights of privacy or other  intellectual
     property rights.

          (iv)  Subject to the SMP  Agreement,  the Game Titles shall be free of
     all liens and encumbrances and there are and will be no claims,  demands or
     actions pending or threatened with respect thereto.

          (v) In connection with materials supplied by or developed by Gathering
     for use in any Game Titles,  Gathering shall be solely  responsible for and
     shall  pay all sums due all  parties  entitled  to  receive  Net  Monies in
     connection  with the sale and  exploitation  of the  Distributed  Products.
     Subject to the terms of this  Agreement,  all monies  payable to  Gathering
     include all Net Monies due Gathering and such parties.  Gathering  shall be
     solely  responsible  for and shall pay all costs  incurred in the creation,
     development and design of any Game Titles,  including,  without  limitation
     the  Documentation  therefor.  With  respect to each Game Title,  Gathering
     shall be responsible for paying any  development  fees or royalties owed to
     such  developer  of such  Game  Title  in  accordance  with the  terms  and
     conditions  of the  publishing  agreement by and between  Gathering and the
     developer for such Game Title.

          (vi) With respect to each Game Title,  the Amended and Restated Rights
     Agreement  for  Computer  Video  Games  by and  between  Gathering  and the
     developer of such Game Title are in full force and effect as of  Wednesday,
     May 27, 1998.  With respect to each Game Title,  Gathering has acquired all
     rights with respect to such Game Title to publish such Game Titles pursuant
     to  the  terms  and  conditions  of the  respective  Amended  and  Restated
     Agreement  Regarding  Rights to Computer  Games  between  Gathering and the
     developer  of such Game  Title  and to grant to T2 the right to  distribute
     such Game Title in accordance with the terms hereof.

     (c) Gathering  makes no warranties or  representations  with respect to the
Distributed  Products  to any  end-user  thereof  other than as set forth in the
limited warranty provided by Gathering for each Distributed  Product;  Gathering
makes no warranty,  express, implied, statutory or otherwise with respect to the
Distributed  Products  including  but not limited to the implied  warranties  of
merchantability  and fitness for a particular  purpose,  each of which is hereby
disclaimed.

                                      -14-
<PAGE>

                                    ARTICLE 8
                                 INDEMNIFICATION

     (a) T2  shall  indemnify,  defend  and  hold  harmless  Gathering,  and its
partners,  officers,  employees,  agents,  successors  and  assigns  ("Gathering
Indemnitees") from and against any and all demands, claims, damages,  judgments,
costs,  (including reasonable attorneys' fees),  penalties and liabilities based
upon,  relating  to,  or  arising  out of a  breach  or  failure  of any of T2's
agreements,   representations  or  warranties  hereunder,   including,   without
limitation,  any claims brought by third parties  alleging that any intellectual
property  rights  contained  in a Game Title  infringes  upon the rights of such
third  party.  Upon notice from  Gathering  of any such claim,  demand or action
being advanced or commenced,  T2 agrees to adjust,  settle or defend the same at
T2's sole cost and expense.  Each Gathering Indemnitee shall have the right, but
not the  obligation,  to  participate,  at its own  expense  and  using  its own
counsel,  in the  defense of any such claim,  and,  in such  event,  the parties
hereto shall  cooperate with each other in the defense of any such action,  suit
or proceeding hereunder.

     (b)  Gathering  shall  indemnify,  defend  and hold  harmless  T2,  and its
officers,  employees,  agents, successors and assigns ("T2 Indemnitees") against
any and all demands,  claims, damages,  judgments,  costs, (including reasonable
attorneys' fees),  penalties and liabilities based upon, relating to, or arising
out of a breach or failure of any of Gathering's agreements,  representations or
warranties hereunder, including, without limitation, any claims brought by third
parties alleging that any intellectual property rights contained in a Game Title
infringes  upon the rights of such third party.  Upon notice from T2 of any such
claim, demand or action being advanced or commenced, Gathering agrees to adjust,
settle  or  defend  the  same at  Gathering's  sole  cost and  expense.  Each T2
Indemnitee shall have the right, but not the obligation, to participate,  at its
own expense and by its own  counsel,  in the defense of any such claim,  and, in
such event, the parties hereto shall cooperate with each other in the defense of
any such action, suit or proceeding hereunder.

     (c) IT IS THE EXPRESS  INTENTION OF THE PARTIES  HERETO THAT EACH PERSON TO
BE INDEMNIFIED PURSUANT TO THIS ARTICLE 8 SHALL BE INDEMNIFIED AND HELD HARMLESS
FROM AND AGAINST ALL DAMAGES AND INSTANCES AS TO WHICH INDEMNITY IS PROVIDED FOR
UNDER THIS ARTICLE 8 NOTWITHSTANDING  THAT ANY SUCH DAMAGES OR INSTANCES ARISING
OUT OF OR RESULT FROM THE ORDINARY,  STRICT, SOLE, OR CONTRIBUTORY NEGLIGENCE OF
SUCH PERSON AND  REGARDLESS  OF WHETHER ANY OTHER  PERSON  (INCLUDING  THE OTHER
PARTY TO THIS AGREEMENT) IS OR IS NOT ALSO NEGLIGENT.

     (d)  With  respect  to  any  claims   between  the  parties   hereto,   the
non-prevailing  party shall  indemnify the  prevailing  party for all reasonable
attorneys fees incurred by such prevailing party with respect to such claim.

                                      -15-
<PAGE>

     (e)  Gathering  shall obtain and  maintain at its own  expense,  reasonable
product liability  insurance and errors and omission insurance from a recognized
and qualified  insurance  company naming T2 as insured in the amount of at least
One  Million  Dollars  ($1,000,000)  per  occurrence  and  Two  Million  Dollars
($2,000,000) in the aggregate  against any claims,  suit, loss or damage arising
out of any personal  injury or property  damage or  infringement of the computer
software and/or the Game Titles and/or the Documentation thereto, or any part of
any  character,  object,  sound or music  embodied in the Game  Title,  upon any
common  law  or  statutory  rights  of  any  third  party,  including,   without
limitation,  contractual rights,  patents,  copyrights,  mask-work rights, trade
secrets,  right to privacy and other intellectual  property rights.  Such policy
shall be non-scancellable except after thirty (30) days' prior written notice to
T2. T2 shall be named as an additional  insured on such policy. As proof of such
insurance,  a fully-paid  certificate  of  insurance  will be submitted to T2 by
Gathering within a reasonable time after the execution of this Agreement.

                                    ARTICLE 9
                     EXPIRATION OR TERMINATION OF AGREEMENT

     (a) In the event that Gathering,  for reasons within its control,  fails to
Deliver a Game  Title  referred  to in this  Agreement  to T2 by a date which is
sixty (60) days after the Delivery Date (the "Post Delivery Date"), or Gathering
otherwise  materially  breaches  this  Agreement  with  respect  to a Game Title
hereunder  and such breach is not cured within thirty (30) days after receipt of
notice from T2 of such  breach,  then,  without in any way  limiting any of T2's
other rights and remedies in such event,  and  notwithstanding  any provision to
the contrary  contained  herein, T2 shall have the right at its sole election to
terminate this Agreement with respect only to the undelivered  Game Title and/or
Game Title to which Gathering's material breach relates,  upon written notice to
Gathering  (the  "Termination  Notice").  In  such  event,  notwithstanding  any
provision to the contrary  contained  herein,  but only with respect to the Game
Title which is the subject of the Termination Notice,  Gathering shall pay to T2
an  amount  equal  to any  unearned  and  unrecouped  portion  of the  Guarantee
theretofore paid by T2 to Gathering  hereunder  attributable to such undelivered
Game  Title.  All such  amounts as  described  above  shall be paid to T2 by the
Gathering within ninety (90) days following T2's written request therefor.

     (b) (i) In the event T2 materially  breaches this Agreement with respect to
a Game Title  hereunder  and such  breach is not cured  (which may  include,  at
Gathering's election,  the appointment of a substitute distributor acceptable to
Gathering to perform T2's obligations hereunder with respect to such Game Title)
within thirty (30) days after  receipt of notice from  Gathering of such breach,
then,  without in any way limiting any of Gathering's  other rights and remedies
in such event,  and  notwithstanding  any  provision to the  contrary  contained
herein,  Gathering  shall have the right at its sole election to terminate  this
Agreement,  but only with  respect  to such Game  Title to which  T2's  material
breach relates, upon written notice to T2.

     (ii) Upon any subsequent two (2) material  breaches by T2 of this Agreement
which such  breaches  are not cured  within  thirty  (30) days after  receipt of
notice from Gathering of such breach,  then,  without in any way limiting any of
Gathering's  other rights and remedies in such

                                      -16-
<PAGE>

event,  and  notwithstanding  any  provision to the contrary  contained  herein,
Gathering shall have the right at its sole election to terminate this Agreement.

     (c) In the  event  either  party  to this  Agreement  files a  petition  in
bankruptcy or is adjudged a bankruptcy,  or if a petition in bankruptcy is filed
against  such  party  and  is  not  dismissed  within  sixty  (60)  days  of the
institution of such proceeding,  or if such party becomes insolvent, or makes an
assignment for the benefit of creditors,  or if any receiver  appointed for such
party or its business is not discharged within sixty (60) days (for convenience,
the  "bankrupt  or  insolvent  party"),  the other party shall have the right to
terminate  this  Agreement,  upon  written  notice to the  bankrupt or insolvent
party.

     (d) Upon  expiration of the Term of this  Agreement,  all exclusive  rights
granted to T2 herein  shall  forthwith  revert to Gathering  with the  following
consequences:

          (i) T2 shall  continue  to pay all Net  Monies  which  become  due and
     payable.

          (ii) Gathering shall thereafter be free to engage others to distribute
     the Game Titles or to distribute them itself.

          (iii)  T2  shall  not   thereafter   advertise,   distribute  or  sell
     Distributed  Products,  and will cease all display,  advertising and use of
     Gathering's  Property,  except  that T2 may sell  off,  market,  advertise,
     distribute and sell existing  inventories of the Distributed Products for a
     period of twelve (12) months, subject to all the other terms and conditions
     hereof.  T2 shall  deliver to Gathering a complete  and accurate  statement
     indicating  the number,  description  and  whereabouts  of all units of the
     Distributed  Products in T2's inventory as of the date of the expiration of
     the Term update such list on a monthly basis.

          (iv) T2 shall  return to  Gathering  all  materials  and any copies or
     reproductions  thereof  furnished  to T2 by  Gathering  hereunder  or  give
     satisfactory evidence of their destruction.

                                   ARTICLE 10
                                     NOTICES

     All  notices,  statements  and/or  payments  to be  given  to  the  parties
hereunder  shall be addressed to the parties at the  addresses  set forth on the
first page hereof or at such other  address as the parties  shall  designate  to
each other in writing  from time to time.  All  notices  shall be in writing and
shall  either be served by personal  delivery  (to an officer of each  company),
mail, or facsimile (if confirmed by mail or personal delivery of the hard copy),
all charges prepaid.  Except as otherwise provided herein, such notices shall be
deemed given when personally delivered, all charges prepaid, or on the date five
(5) days following the date of mailing, except that notices of change of address
shall be effective only after the actual receipt thereof.

                                      -17-
<PAGE>

                                   ARTICLE 11
                              EUROPEAN NEGOTIATIONS

     T2 and  Gathering  shall  continue to  negotiate in good faith a publishing
agreement for Europe,  Israel,  Africa,  Middle East,  Australia and New Zealand
which, if entered into, shall include the following terms.

     (a)  At   Gathering's   request,   T2  shall  house  a  team  of  Gathering
representatives in its Windsor, UK offices. This team:

          (i)  Oversees  the  marketing  of all  Gathering  titles  published in
               Europe.

          (ii) Monitors and learns the selling process throughout Europe for all
               Gathering titles.

         (iii) Is paid for by Gathering.

          (iv) May set-up a corporate  subsidiary  or other entity for Gathering
               in Europe.

     (b) The  existing  agreement/understanding  between T2 and  Gathering  with
respect to certain European publishing rights for the interactive software video
games referred to as Max Payne,  Railroad Tycoon 2 and Aviator shall be extended
to include an additional seven (7) interactive software video games not included
therein. T2 shall pay Gathering $2.8 million in non-refundable guarantees in two
equal  payments  of $1.4  million  due July 15,  1998 and  September  15,  1998;
provided that the advance will be recoupable only to the extent of $400,000 with
respect to each of the seven (7) additional games.

     (c) Such agreement  shall include no less favorable terms than as set forth
in the draft of the Heads of Agreement attached hereto as Exhibit D.

     (d) T2 shall  receive a right of first refusal to meet the terms of certain
publishing deals offered by Gathering to third parties to publish and distribute
in Europe  certain  products  not solely or jointly  published  by  Gathering in
Europe over the next 5 years.

                                      -18-
<PAGE>

                                   ARTICLE 12
                            CONFIDENTIAL INFORMATION

     Each party  hereto shall keep in  confidence  and not disclose to any third
party,  without  the  written  permission  of the other  party the terms of this
Agreement and the proprietary  information of each party made known to the other
under this Agreement.  This  requirement of  confidentiality  shall not apply to
information  that is (i) in the public  domain  through no  wrongful  act of the
receiving  party;  (ii) rightfully  received by the receiving party from a third
party who is not bound by a restriction of  nondisclosure;  (iii) already in the
receiving party's  possession without  restriction as to disclosure;  or (iv) is
required to be disclosed  by  applicable  rules and  regulations  of  government
agencies or judicial  bodies.  For purposes of this  Agreement,  all information
provided to T2 by or on behalf of  Gathering  shall be deemed  confidential  and
proprietary information.

                                   ARTICLE 13
                                  MISCELLANEOUS

     (a) This  Agreement  shall  inure to the  benefit  of, and shall be binding
upon,  the  successors  and assigns of each party  hereto.  Notwithstanding  the
foregoing,  neither  party  shall  assign  any rights or  obligations  hereunder
without the prior written consent of the other party;  provided,  however,  that
Gathering may assign to another party its rights to receive Net Monies  pursuant
to Section 6 of this Agreement.

     (b) The entire  understanding  between the parties  hereto  relating to the
subject  matter  hereof  is  contained  herein.  There  are no  representations,
warranties, terms, conditions,  undertakings or collateral agreements,  express,
implied or statutory, between the parties other than expressly set forth in this
Agreement.  This Agreement  cannot be changed,  modified,  amended or terminated
except by an  instrument  in  writing  executed  by both T2 and  Gathering.  The
Exhibits  annexed hereto  constitute a part of this Agreement.  The headings and
captions used herein are inserted for  convenience  of reference  only and shall
not affect the construction or interpretation of this Agreement.  This Agreement
shall not be deemed  effective,  final or  binding  upon  Gathering  or T2 until
signed by each of them. Only the final,  executed Agreement is admissible as the
written agreement  between the parties and prior drafts,  if any,  incorporating
revisions or original  language may not be used,  and shall not be admissible as
evidence for any purpose in any  litigation  that may arise between the parties.
This Agreement  shall be deemed to have been drafted by all the parties  hereto,
since all parties  were  assisted by their  counsel in  reviewing  and  agreeing
thereto,  and no ambiguity shall be resolved  against any party by virtue of its
participation in the drafting of this Agreement.

     (c) No waiver,  modification  or  cancellation  of any term or condition of
this  Agreement  shall be  effective  unless  executed  in  writing by the party
charged  therewith.  No written  waiver shall excuse the  performance of any act
other than those  specifically  referred  to therein  and shall not be deemed or
construed  to be a waiver  of such  terms or  conditions  for the  future or any
subsequent

                                      -19-
<PAGE>

breach thereof.  Except as otherwise provided in this Agreement,  all rights and
remedies herein or otherwise,  including,  but not limited to those set forth in
Article 9, shall be  cumulative  and none of them shall be in  limitation of any
other right or remedy.

     (d) This  Agreement  does not  constitute  and  shall not be  construed  as
constituting a partnership or joint venture between Gathering and T2. Neither T2
nor  Gathering  shall have any right to obligate or bind the other in any manner
whatsoever,  and nothing herein  contained shall give or is intended to give any
rights of any kind to any third persons.

     (e) Any  dispute  hereunder  shall  be  submitted  to  binding  arbitration
pursuant to the rules of the American  Arbitration  Association,  applying Texas
law,  without regard to choice of law provisions,  with three  arbitrators.  Any
such proceeding shall take place in Dallas, Texas.

     (f) This  Agreement  may be executed in one or more  counterparts,  each of
which shall be deemed an original and all of which shall  constitute but one and
the same document.

     (g) The  expiration  of this  Agreement  shall  not  impair  the  rights or
obligations of either party hereto which shall have accrued  hereunder  prior to
such expiration or termination. Without limiting the generality of the preceding
sentence,  the  provisions  of  Articles  5, 6, 7, 8, 9, 10, 11, 12 and 13 shall
survive the termination of this Agreement.

     (h)  Each  of the  parties  hereto  agrees  to  execute  all  such  further
instruments and documents and to take all such further action as the other party
may  reasonably  require in order to  effectuate  the terms and purposes of this
Agreement as stated herein.

     (i) If any  provision  of this  Agreement  shall  be held or  deemed  to be
invalid,  inoperative or  unenforceable  in any  jurisdiction or  jurisdictions,
because of conflicts with any  constitution,  statute,  rule or public policy or
for any other reason,  such circumstance  shall not have the effect of rendering
the  provision in question  unenforceable  in any other  jurisdiction  or in any
other case or circumstance or of rendering any other provisions herein contained
unenforceable  to the  extent  that such  other  provisions  are not  themselves
actually in conflict with such  constitution,  statute or rule of public policy,
but this Agreement  shall be reformed and construed in any such  jurisdiction or
case as if such invalid,  inoperative or unenforceable  provision had never been
contained herein and such provision  reformed so that it would be enforceable to
the maximum extent permitted in such jurisdiction or in such case.

     (j) Within thirty (30) days of the execution of this  Agreement,  Gathering
shall file or have filed on its behalf a UCC-1  Financing  Statement in order to
perfect a security interest in its general  intangibles,  inventory,  equipment,
receivables and other physical  assets of Gathering,  in favor of T2, except for
those assets consisting of any of Gathering's rights under the respective rights
agreements with the developers of the respective Game Titles.  Immediately  upon
its recoupment of the Guarantee, T2 shall release such UCC-1 Financing Statement
and the  security  interests  created  thereby and any and all  obligations  and
liabilities of Gathering to T2 related thereto or arising therefrom.

                                      -20-
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the
27th day of May, 1998.

                                   GATHERING OF DEVELOPERS I, LTD.
                                   (Gathering)

                                   By:  Gathering of Developers, Inc.
                                        (a Texas corporation),
                                        its general partner

                                        Address:
                                        2700 Fairmount
                                        Dallas, Texas 75202
                                        fax:  (214) 871-7934

                                        By:  /s/ Michael S. Wilson
                                             ------------------------
                                             Michael S. Wilson,
                                             Chief Executive Officer

                                   TAKE TWO INTERACTIVE SOFTWARE, INC.
                                   (T2)

                                        Address:
                                        575 Broadway
                                        New York, New York 10012
                                        fax:  (212) 941-2997

                                        By:  /s/ Ryan A. Brant
                                             ------------------------
                                             Name:  Ryan A. Brant
                                             Title: President and CEO

                                      -21-

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