Document:

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Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

                         CONFIDENTIAL LICENSE AGREEMENT
                              FOR GAME BOY ADVANCE
                              (Western Hemisphere)

     THIS LICENSE AGREEMENT ("Agreement") is entered into between NINTENDO OF
AMERICA INC. ("NOA"), at 4820 150th Avenue N.E., Redmond, WA 98052 Attn: General
Counsel (Fax: 425-882-3585) and Acclaim Entertainment, Inc., ("LICENSEE") at One
Acclaim Plaza, Glen Cove, NY 11542-2708 Attn: Johnny Ma (Fax: (516) 656-2040).
NOA and LICENSEE agree as follows:

1.   RECITALS

     1.1 NOA markets and sells advanced design, high-quality video game systems,
including the GAME BOY(R)ADVANCE system.

     1.2 LICENSEE desires a license to use highly proprietary programming
specifications, development tools, trademarks and other valuable intellectual
property rights of NOA and its parent company, Nintendo Co., Ltd. (collectively
"Nintendo"), to develop, have manufactured, advertise, market and sell video
game software for play on the GAME BOY ADVANCE system.

     1.3 NOA is willing to grant a license to LICENSEE on the terms and
conditions set forth in this Agreement.

2.   DEFINITIONS

     2.1 "Artwork" means the design specifications for the Game Cartridge label
and Printed Materials in the format specified by NOA in the Guidelines.

     2.2 "Development Tools" means the development kits, programming tools,
emulators, and other materials that may be used in the development of Games
under this Agreement.

     2.3 "Effective Date" means the last date on which all parties shall have
signed this Agreement.

     2.4 "Finished Product(s)" means the fully assembled and shrink-wrapped
Licensed Products, each including a Game Cartridge, Game Cartridge label and
Printed Materials.

     2.5 "Game Cartridges(s)" means custom cartridges specifically manufactured
under the terms of this Agreement for play on the GAME BOY ADVANCE system,
incorporating semiconductor components in which a Game has been stored.

     2.6 "Game(s)" means interactive video game programs (including source and
object/binary code) developed for play on the GAME BOY ADVANCE system.

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     2.7 "Guidelines" means the current version or any future revision of the
"Game Boy Packaging Guidelines", "Nintendo Trademark Guidelines", "Game Boy
Advance Development Manual" and related guidelines.

     2.8 "Independent Contractor" means any individual or entity that is not an
employee of LICENSEE, including any independent programmer, consultant,
contractor, board member or advisor.

     2.9 "Intellectual Property Rights" means individually, collectively or in
any combination, Proprietary Rights owned, licensed or otherwise held by
Nintendo that are associated with the development, manufacturing, advertising,
marketing or sale of the Licensed Products, including, without limitation, (a)
registered and unregistered trademarks and trademark applications used in
connection with video games for play on the GAME BOY ADVANCE system including
"Nintendo(R)", "GAME BOY(R) ADVANCE," "AGB" and the "Official Nintendo Seal of
Quality(R)", (b) select trade dress associated with the GAME BOY ADVANCE system
and licensed video games for play thereon, (c) Proprietary Rights in the
Security Technology incorporated into the Game Cartridges, (d) rights in the
Development Tools for use in developing the Games, (e) patents or design
registrations associated with the Game Cartridges, (f) copyrights in the
Guidelines, and (g) other Proprietary Rights of Nintendo in Confidential
Information.

     2.10 "Licensed Products" means (a) Finished Products, or (b) Stripped
Products when fully assembled and shrink-wrapped with the Printed Materials.

     2.11 "Marketing Materials" means marketing, advertising or promotional
materials developed by or for LICENSEE (or subject to LICENSEE's approval) to
promote the sale of the Licensed Products, including, but not limited to,
television, radio and on-line advertising, point-of-sale materials (e.g.
posters, counter-cards), package advertising and print media or materials.

     2.12 "NDA" means the non-disclosure agreement providing for the protection
of Confidential Information related to the GAME BOY ADVANCE system previously
entered into between NOA and LICENSEE.

     2.13 "Notice" means any notice permitted or required under this Agreement.
All notices shall be sufficiently given when (a) personally served or delivered,
or (b) transmitted by facsimile, with an original sent concurrently by first
class U.S. mail, or (c) deposited, postage prepaid, with a guaranteed air
courier service, in each case addressed as stated herein, or addressed to such
other person or address either party may designate in a Notice. Notice shall be
deemed effective upon the earlier of actual receipt or two (2) business days
after transmittal.

     2.14 "Price Schedule" means the current version or any future revision of
NOA's schedule of purchase prices and minimum order quantities for the Licensed
Products.

     2.15 "Printed Materials" means the box, user instruction booklet, poster,
warranty card and LICENSEE inserts incorporating the Artwork, together with a
precautions booklet as specified by NOA.

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     2.16 "Proprietary Rights" means any rights or applications for rights
owned, licensed or otherwise held in patents, trademarks, service marks,
copyrights, mask works, trade secrets, trade dress, moral rights and publicity
rights, together with all inventions, discoveries, ideas, technology, know-how,
data, information, processes, formulas, drawings and designs, licenses, computer
programs, software source code and object code, and all amendments,
modifications, and improvements thereto for which such patent, trademark,
service mark, copyright, mask work, trade secrets, trade dress, moral rights or
publicity rights may exist or may be sought and obtained in the future.

     2.17 "Reverse Engineer(ing)" means, without limitation, (a) the x-ray,
electronic scanning or physical or chemical stripping of semiconductor
components, (b) the disassembly, decompilation, decryption or simulation of
object code or executable code, or (c) any other technique designed to extract
source code or facilitate the duplication of a program or product.

     2.18 "Security Technology" means, without limitation, any security
signature, bios, data scrambling, password, hardware security apparatus,
watermark, hologram, copyright management information system or any feature
which facilitates or limits compatibility with other hardware or software
outside of the Territory or on a different video game system.

     2.19 "Stripped Product(s)" means the Game Cartridges with Game Cartridge
labels affixed.

     2.20 "Term" means three (3) years from the Effective Date.

     2.21 "Territory" means all countries within the Western Hemisphere and
their respective territories and possessions.

3.   GRANT OF LICENSE; LICENSEE RESTRICTIONS

     3.1 Limited License Grant. For the Term and for the Territory, NOA grants
to LICENSEE a nonexclusive, nontransferable, limited license to use the
Intellectual Property Rights to develop Games for manufacture, advertising,
marketing and sale as Licensed Products, subject to the terms and conditions of
this Agreement. Except as permitted under a separate written authorization from
Nintendo, LICENSEE shall not use the Intellectual Property Rights for any other
purpose.

     3.2 LICENSEE Acknowledgement. LICENSEE acknowledges (a) the value of the
Intellectual Property Rights, (b) the right, title, and interest of Nintendo in
and to the Intellectual Property Rights, and (c) the right, title and interest
of Nintendo in and to the Proprietary Rights associated with all aspects of the
GAME BOY ADVANCE system. LICENSEE recognizes that the Games, Game Cartridges and
Licensed Products will embody valuable rights of Nintendo and Nintendo's
licensors. LICENSEE represents and warrants that it will not undertake any act
or thing which in any way impairs or is intended to impair any part of the
right, title, interest or goodwill of Nintendo in the Intellectual Property
Rights. LICENSEE's use of the Intellectual Property Rights shall not create any
right, title or interest of LICENSEE therein.

     3.3 LICENSEE Restrictions and Prohibitions. LICENSEE represents and
warrants that it will not at any time, directly or indirectly, do or cause to be
done any of the following:

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         (a) grant access to, distribute, transmit or broadcast a Game by
electronic means or by any other means known or hereafter devised, including,
without limitation, by wireless, cable, fiber optic, telephone lines, microwave,
radiowave, computer or other device network; provided, however, that limited
transmissions may be made for the sole purpose of facilitating development under
the terms of this Agreement, but no right of retransmission shall attach to any
such authorized transmission and, reasonable security measures, customary within
the high technology industry, shall be utilized to reduce the risk of
unauthorized interception or retransmission of any such authorized transmission,

         (b) authorize or permit any online activities involving a Game,
including, without limitation, multiplayer, peer-to-peer or online play,

         (c) modify, install or operate a Game on any server or computing device
for the purpose of or resulting in the rental, lease, loan or other grant of
remote access to the Game,

         (d) emulate, interoperate, interface or link a Game for operation or
use with any hardware or software platform, accessory, computer language,
computer environment, chip instruction set, consumer electronics device or
device other than the GAME BOY ADVANCE system or the Development Tools,

         (e) embed, incorporate, or store a Game in any media or format except
the cartridge format utilized by the GAME BOY ADVANCE system, except as may be
necessary as a part of the Game development process under this Agreement,

         (f) design, implement or undertake any process, procedure, program or
act designed to circumvent the Security Technology,

         (g) utilize the Intellectual Property Rights to design or develop any
interactive video game program, except as authorized under this Agreement,

         (h) manufacture or reproduce a Game developed under this Agreement,
except through Nintendo, or

         (i) Reverse Engineer or assist in the Reverse Engineering of all or any
part of the GAME BOY ADVANCE system, including the hardware or software (whether
embedded or otherwise), or the Security Technology.

     3.4 Development Tools. Nintendo may lease, loan or sell Development Tools
to LICENSEE to assist in the development of Games under this Agreement.
Ownership and use of any Development Tools provided to LICENSEE by Nintendo
shall be subject to the terms of this Agreement. LICENSEE acknowledges the
exclusive interest of Nintendo in and to the Proprietary Rights associated with
the Development Tools. LICENSEE's use of the Development Tools shall not create
any right, title or interest of LICENSEE therein. LICENSEE shall not, directly
or indirectly, (a) use the Development Tools for any purpose except the design
and development of Games under this Agreement, (b) reproduce or create
derivatives of the Development Tools, except in association with the development
of Games under this Agreement, (c) Reverse Engineer the Development Tools, or
(d) sell, lease, assign, lend, license, encumber or otherwise transfer the
Development Tools. Any tools developed or derived by LICENSEE as a

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result of a study of the performance, design or operation of the Development
Tools shall be considered derivative works of the Intellectual Property Rights,
but may be retained and utilized by LICENSEE in connection with this Agreement.
In no event shall LICENSEE (i) seek, claim or file for any patent, copyright or
other Proprietary Right with regard to any such derivative work, (ii) make
available any such derivative work to any third party, or (iii) use any such
derivative work except in connection with the design and development of Games
under this Agreement.

4.   SUBMISSION OF GAME AND ARTWORK FOR APPROVAL

     4.1 Development and Sale of the Games. LICENSEE may develop Games and have
manufactured, advertise, market and sell Licensed Products for play on the GAME
BOY ADVANCE system only in accordance with this Agreement.

     4.2 Third Party Developers. LICENSEE shall not disclose the Confidential
Information, the Guidelines or the Intellectual Property Rights to any
Independent Contractor, nor permit any Independent Contractor to perform or
assist in development work for a Game, unless and until such Independent
Contractor has been approved by NOA and has executed a written confidentiality
agreement with NOA relating to the GAME BOY ADVANCE system.

     4.3 Delivery of Completed Game. Upon completion of a Game, LICENSEE shall
deliver a prototype of the Game to NOA in a format specified in the Guidelines,
together with written user instructions, a complete description of any security
holes, backdoors, time bombs, cheats, "easter eggs" or other hidden features or
characters in the Game and a complete screen text script. NOA shall promptly
evaluate the Game with regard to (a) its technical compatibility with and
error-free operation on the GAME BOY ADVANCE system, and (b) its compliance with
the game content guidelines of the Entertainment Software Ratings Board
("ESRB"). LICENSEE shall provide NOA with a certificate of a rating for the Game
from the ESRB other than "AO" or "ADULTS ONLY".

     4.4 Approval of Completed Game. NOA shall, within a reasonable period of
time after receipt, approve or disapprove each submitted Game. If a Game is
disapproved, NOA shall specify in writing the reasons for such disapproval and
state what corrections or improvements are necessary. After making the necessary
corrections or improvements, LICENSEE shall submit a revised Game to NOA for
approval. NOA shall not unreasonably withhold or delay its approval of any Game.
The approval of a Game by NOA shall not relieve LICENSEE of its sole
responsibility for the development, quality and operation of the Game or in any
way create any warranty for a Game or a Licensed Product by NOA.

     4.5 Submission of Artwork. Upon submission of a completed Game to NOA,
LICENSEE shall prepare and submit to NOA the Artwork for the proposed Licensed
Product. Within ten (10) business days of receipt, NOA shall approve or
disapprove the Artwork. If any Artwork is disapproved, NOA shall specify in
writing the reasons for such disapproval and state what corrections or
improvements are necessary. After making the necessary corrections or
improvements, LICENSEE shall submit revised Artwork to NOA for approval. NOA
shall not unreasonably withhold or delay its approval of any Artwork. The
approval of the Artwork by

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NOA shall not relieve LICENSEE of its sole responsibility for the development
and quality of the Artwork or in any way create any warranty for the Artwork or
the Licensed product by NOA.

     4.6 Artwork for Stripped Product. If LICENSEE submits an order for Stripped
Product, all Artwork shall be submitted to NOA in advance of NOA's acceptance of
the order and no production of Printed Materials shall occur until such Artwork
has been approved by NOA under Section 4.5 herein.

5.   ORDER PROCESS, PURCHASE PRICE, PAYMENT AND DELIVERY

     5.1 Submission of Orders by LICENSEE. LICENSEE may at any time submit
written purchase orders to NOA for any approved Licensed Product title. The
purchase order shall specify whether it is for Finished Product or Stripped
Product. The terms and conditions of this Agreement shall control over any
contrary terms of such purchase order or any other written documents submitted
by LICENSEE. All orders are subject to acceptance by NOA in Redmond, WA.

     5.2 Purchase Price and Minimum Order Quantities. The purchase price and
minimum order quantities for the Licensed Products shall be set forth in NOA's
then current Price Schedule. The purchase price includes the cost of
manufacturing together with a royalty for the use of the Intellectual Property
Rights. No taxes, duties, import fees or other tariffs related to the
development, manufacture, import, marketing or sale of the Licensed Products are
included in the purchase price and all such taxes are the responsibility of
LICENSEE (except for taxes imposed on NOA's income). The Price Schedule is
subject to change by NOA at any time without Notice.

     5.3 Payment. Upon placement of an order with NOA, LICENSEE shall pay the
full purchase price to NOA either (a) by placement of an irrevocable letter of
credit in favor of NOA and payable at sight, issued by a bank acceptable to NOA
and confirmed, if requested by NOA, at LICENSEE's expense, or (b) in cash, by
wire transfer to NOA's designated account. All associated banking charges shall
be for LICENSEE's account.

     5.4 Shipment and Delivery. The Licensed Products shall be delivered F.O.B.
Japan or such other delivery point specified by NOA, with shipment at LICENSEE's
direction and expense. Orders may be delivered by NOA in partial shipments, each
directed to not more than two (2) destinations designated by LICENSEE within the
Territory. Title to the Licensed Products shall vest in accordance with the
terms of the applicable letter of credit or, in the absence thereof, at the
point of delivery.

6.   MANUFACTURE OF THE LICENSED PRODUCT

     6.1 Manufacturing. Nintendo Co., Ltd. shall be the exclusive source for the
manufacture of the Game Cartridges, with responsibility for all aspects of the
manufacturing process, including the selection of the locations and
specifications for any manufacturing facilities, determination of materials and
processes, appointment of suppliers and subcontractors and management of all
work-in-progress.

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Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

     6.2 Manufacture of the Licensed Products. Upon acceptance by NOA of a
purchase order for an approved Licensed Product title and payment as provided
for under Section 5.3 herein, NOA (through Nintendo Co., Ltd., and/or its
subcontractors), will arrange for the manufacture of Finished Product or
Stripped Product, as specified in LICENSEE's purchase order.

     6.3 Security Features. The final release version of the Game, Game
Cartridges and Printed Materials shall include such Security Technology as
Nintendo, in its sole discretion, may deem necessary or appropriate.

     6.4 Production of Stripped Product Printed Materials. For Stripped Product,
LICENSEE shall arrange and pay for the production of the Printed Materials using
the Artwork. Upon receipt of an order of Stripped Product, LICENSEE shall
assemble the Game Cartridges and Printed Materials into the Licensed Products.
Licensed Products may be sold or otherwise distributed by LICENSEE only in fully
assembled and shrink-wrapped condition.

     6.5 Prior Approval of LICENSEE's Independent Contractor. Prior to the
placement of a purchase order for Stripped Product, LICENSEE shall obtain NOA's
approval of any Independent Contractors selected to perform the production and
assembly operations. LICENSEE shall provide NOA with the names, addresses and
all business documentation reasonably requested by NOA for such Independent
Contractors. NOA may, prior to approval and at reasonable intervals thereafter,
(a) require submission of additional business or financial information regarding
the Independent Contractors, (b) inspect the facilities of the Independent
Contractors, and (c) be present to supervise any work on the Licensed Products
to be done by the Independent Contractors. If at any time NOA deems an
Independent Contractor to be unable to meet quality, security or performance
standards reasonably established by NOA, NOA may refuse to grant its approval or
withdraw its approval upon Notice to LICENSEE. LICENSEE may not proceed with the
production of the Printed Materials or assembly of the Licensed Product until
NOA's concerns have been resolved to its satisfaction or until LICENSEE has
selected and received NOA's approval of another Independent Contractor.

     6.6 NOA Inserts for Stripped Product. NOA, at its option, may provide
LICENSEE with NOA produced promotional materials (as provided for at Section
7.7(a) herein), which LICENSEE agrees to include in the assembly of the Licensed
Products.

     6.7 Sample Printed Materials and Stripped Product. Within a reasonable
period of time after LICENSEE's assembly of the initial order for a Stripped
Product title, LICENSEE shall provide NOA with (a) [*] sample of the fully
assembled, shrink-wrapped Licensed Product, and (b) [*] samples of LICENSEE
produced Printed Materials for such Licensed Product.

     6.8 Retention of Sample Licensed Products by Nintendo. Nintendo may, at its
own expense, manufacture reasonable quantities of the Game Cartridges or the
Licensed Products to be used for archival purposes, legal proceedings against
infringers of the Intellectual Property Rights or for other lawful purposes.

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7.   MARKETING AND ADVERTISING

     7.1 Approval of Marketing Materials. LICENSEE represents and warrants that
the Marketing Materials shall (a) be of high quality and comply with the
Guidelines, (b) comply with all voluntary ESRB advertising, marketing or
merchandising guidelines, and (c) comply with all applicable laws and
regulations in those jurisdictions in the Territory where they will be used or
distributed. Prior to actual use or distribution, LICENSEE shall submit to NOA
for review samples of all proposed Marketing Materials. NOA shall, within ten
(10) business days of receipt, approve or disapprove the quality of such
samples. If any of the samples are disapproved, NOA shall specify the reasons
for such disapproval and state what corrections and/or improvements are
necessary. After making the necessary corrections and/or improvements, LICENSEE
shall submit revised samples for approval by NOA. No Marketing Materials shall
be used or distributed by LICENSEE without NOA's prior written approval. NOA
shall not unreasonably withhold or delay its approval of any proposed Marketing
Materials.

     7.2 No Bundling. LICENSEE shall not market or distribute any Finished
Product or Stripped Product that has been bundled with (a) any peripheral
designed for use with the GAME BOY ADVANCE system which has not been licensed or
approved in writing by NOA, or (b) any other product or service where NOA's
sponsorship, association, approval or endorsement might be suggested by the
bundling of the products or services.

     7.3 Warranty and Repair. LICENSEE shall provide the original consumer with
a minimum ninety (90) day limited warranty on all Licensed Products. LICENSEE
shall also provide reasonable product service, including out-of-warranty
service, for all Licensed Products.

     7.4 Business Facilities. LICENSEE agrees to develop and maintain (a)
suitable office facilities within the United States, adequately staffed to
enable LICENSEE to fulfill all responsibilities under this Agreement, (b)
necessary warehouse, distribution, marketing, sales, collection and credit
operations to facilitate proper handling of the Licensed Products, and (c)
customer service and game counseling, including telephone service, to adequately
support the Licensed Products.

     7.5 No Sales Outside the Territory. LICENSEE represents and warrants that
it shall not market, sell, offer to sell, import or distribute the Licensed
Products outside the Territory, or within the Territory when with actual or
constructive knowledge that a subsequent destination of the Licensed Product is
outside the Territory.

     7.6 Defects and Recall. In the event of a material programming defect in a
Licensed Product that would, in NOA's reasonable judgment, significantly impair
the ability of a consumer to play the Game, NOA may, after consultation with
LICENSEE, require the LICENSEE to recall the Licensed Product and undertake
suitable repairs or replacements.

     7.7 NOA Promotional Materials, Publications and Events. At its option, NOA
may (a) insert in the Printed Materials for the Licensed Products promotional
materials concerning Nintendo Power magazine or other NOA products, services or
programs, (b) utilize screen shots, Artwork and information regarding the
Licensed Products in Nintendo Power, Nintendo Power

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Source or other advertising, promotional or marketing media which promotes
Nintendo products, services or programs, and (c) exercise public performance
rights in the Games and use related trademarks and Artwork in connection with
NOA sponsored contests, tours, conventions, trade shows, press briefings and
similar events which promote the GAME BOY ADVANCE system.

     7.8 Nintendo Gateway System. To promote and increase demand for games on
Nintendo video game systems, NOA licenses a system (the "Nintendo Gateway
System") in various non-coin activated commercial settings such as commercial
airlines, cruise ships, rail systems and hotels, where customers play games on
specially adapted Nintendo video game systems. If NOA identifies a Game for
possible license on the Nintendo Gateway System, the parties agree to conduct
good faith negotiations toward including the Game in the Nintendo Gateway
System.

8.   CONFIDENTIAL INFORMATION

     8.1 Definition. "Confidential Information" means information provided to
LICENSEE by Nintendo or any third party working with Nintendo relating to the
hardware and software for the GAME BOY ADVANCE system or the Development Tools,
including, but not limited to, (a) all current or future information, know-how,
techniques, methods, information, tools, emulator hardware or software, software
development specifications, and/or trade secrets, (b) any patents or patent
applications, (c) any business, marketing or sales data or information, and (d)
any other information or data relating to development, design, operation,
manufacturing, marketing or sales. Confidential Information shall include all
confidential information disclosed, whether in writing, orally, visually, or in
the form of drawings, technical specifications, software, samples, pictures,
models, recordings, or other tangible items which contain or manifest, in any
form, the above listed information. Confidential Information shall not include
(i) data and information which was in the public domain prior to LICENSEE's
receipt of the same hereunder, or which subsequently becomes part of the public
domain by publication or otherwise, except by LICENSEE's wrongful act or
omission, (ii) data and information which LICENSEE can demonstrate, through
written records kept in the ordinary course of business, was in its possession
without restriction on use or disclosure, prior to its receipt of the same
hereunder and was not acquired directly or indirectly from Nintendo under an
obligation of confidentiality which is still in force, and (iii) data and
information which LICENSEE can show was received by it from a third party who
did not acquire the same directly or indirectly from Nintendo and to whom
LICENSEE has no obligation of confidentiality.

     8.2 Disclosures Required by Law. LICENSEE shall be permitted to disclose
Confidential Information if such disclosure is required by an authorized
governmental or judicial entity, provided that NOA is given Notice thereof at
least thirty (30) days prior to such disclosure. LICENSEE shall use its best
efforts to limit the disclosure to the greatest extent possible consistent with
LICENSEE's legal obligations, and if required by NOA, shall cooperate in the
preparation and entry of appropriate protective orders.

     8.3 Disclosure and Use. NOA may provide LICENSEE with highly confidential
development information, Guidelines, Development Tools, systems, specifications
and related resources and information constituting and incorporating the
Confidential Information to assist LICENSEE in the development of Games.
LICENSEE agrees to maintain all Confidential

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Information as strictly confidential and to use such Confidential Information
only in accordance with this Agreement. LICENSEE shall limit access to the
Confidential Information to LICENSEE's employees having a strict need to know
and shall advise such employees of their obligation of confidentiality as
provided herein. LICENSEE shall require each such employee to retain in
confidence the Confidential Information pursuant to a written non-disclosure
agreement between LICENSEE and such employee. LICENSEE shall use its best
efforts to ensure that its employees working with or otherwise having access to
Confidential Information shall not disclose or make any unauthorized use of the
Confidential Information.

     8.4 No Disclosure to Independent Contractors. LICENSEE shall not disclose
the Confidential Information to any Independent Contractor without the prior
written consent of NOA. Any Independent Contractor seeking access to
Confidential Information shall be required to enter into a written
non-disclosure agreement with NOA prior to receiving any access to or disclosure
of the Confidential Information from either LICENSEE or NOA.

     8.5 Agreement Confidentiality. LICENSEE agrees that the terms, conditions
and contents of this Agreement shall be treated as Confidential Information. Any
public announcement or press release regarding this Agreement or the release
dates for Games developed by LICENSEE under this Agreement shall be subject to
NOA's prior written approval. The parties may disclose this Agreement (a) to
accountants, banks, financing sources, lawyers, parent companies and related
parties under substantially equivalent confidentiality obligations, (b) in
connection with any formal legal proceeding for the enforcement of this
Agreement, (c) as required by the regulations of the Securities and Exchange
Commission ("SEC"), provided that all Confidential Information regarding NOA
shall be redacted from such disclosures to the maximum extent allowed by the
SEC, and (d) in response to lawful process, subject to a written protective
order approved in advance by NOA.

     8.6 Notification Obligations. LICENSEE shall promptly notify NOA of the
unauthorized use or disclosure of any Confidential Information and shall
promptly act to recover any such information and prevent further breach of the
obligations herein. The obligations of LICENSEE set forth herein are in addition
to and not in lieu of any other legal remedy that may be available to NOA under
this Agreement or applicable law.

     8.7 Continuing Effect of the NDA. The terms of this Section 8 supplement
the terms of the NDA, which shall remain in effect. In the event of a conflict
between the terms of the NDA and this Agreement, the terms of this Agreement
shall control.

9.   REPRESENTATIONS AND WARRANTIES

     9.1 LICENSEE's Representations and Warranties. LICENSEE represents and
warrants that:

         (a) it is a duly organized and validly existing corporation and has
full authority to enter into this Agreement and to carry out the provisions
hereof,

         (b) the execution, delivery and performance of this Agreement by
LICENSEE does not conflict with any agreement or understanding to which LICENSEE
may be bound, and

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         (c) excluding the Intellectual Property Rights, LICENSEE is either (i)
the sole owner of all right, title and interest in and to the trademarks,
copyrights and other intellectual property rights used on or in association with
the development, advertising, marketing and sale of the Licensed Products and
the Marketing Materials, or (ii) the holder of such rights to the trademarks,
copyrights and other intellectual property rights which have been licensed from
a third party as are necessary for the development, advertising, marketing and
sale of the Licensed Products and the Marketing Materials under this Agreement.

     9.2 NOA's Representations and Warranties. NOA represents and warrants that:

         (a) it is a duly organized and validly existing corporation and has
full authority to enter into this Agreement and to carry out the provisions
hereof, and

         (b) the execution, delivery and performance of this Agreement by NOA
does not conflict with any agreement or understanding to which NOA may be bound.

     9.3 INTELLECTUAL PROPERTY RIGHTS DISCLAIMER BY NOA. NOA MAKES NO
REPRESENTATION OR WARRANTY CONCERNING THE SCOPE OR VALIDITY OF THE INTELLECTUAL
PROPERTY RIGHTS. NOA DOES NOT WARRANT THAT THE DESIGN, DEVELOPMENT, ADVERTISING,
MARKETING OR SALE OF THE LICENSED PRODUCTS OR THE USE OF THE INTELLECTUAL
PROPERTY RIGHTS BY LICENSEE WILL NOT INFRINGE UPON PATENT, COPYRIGHT, TRADEMARK
OR OTHER PROPRIETARY RIGHTS OF A THIRD PARTY. ANY WARRANTY THAT MAY BE PROVIDED
IN ANY APPLICABLE PROVISION OF THE UNIFORM COMMERCIAL CODE OR ANY OTHER
COMPARABLE LAW OR STATUTE IS EXPRESSLY DISCLAIMED. LICENSEE HEREBY ASSUMES THE
RISK OF INFRINGEMENT.

     9.4 GENERAL DISCLAIMER BY NOA. NOA DISCLAIMS ANY AND ALL WARRANTIES WITH
RESPECT TO THE LICENSED PRODUCTS, INCLUDING, WITHOUT LIMITATION, THE SECURITY
TECHNOLOGY. LICENSEE PURCHASES AND ACCEPTS ALL LICENSED PRODUCTS ON AN "AS IS"
AND "WHERE IS" BASIS. NOA DISCLAIMS ALL WARRANTIES UNDER THE APPLICABLE LAWS OF
ANY COUNTRY, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY
OR FITNESS FOR A GENERAL OR PARTICULAR PURPOSE.

     9.5 LIMITATION OF LIABILITY. TO THE MAXIMUM EXTENT PERMITTED BY LAW,
NEITHER NOA NOR NINTENDO CO., LTD. (OR THEIR RESPECTIVE AFFILIATES, LICENSORS OR
SUPPLIERS) SHALL BE LIABLE FOR LOSS OF PROFITS, OR FOR ANY SPECIAL, PUNITIVE,
INCIDENTAL OR CONSEQUENTIAL DAMAGES OF LICENSEE OR ITS CUSTOMERS ARISING OUT OF
OR RELATED TO THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE BREACH OF THIS
AGREEMENT BY NOA, THE MANUFACTURE OF THE LICENSED PRODUCTS OR THE USE OF THE
LICENSED PRODUCTS ON ANY NINTENDO VIDEO GAME SYSTEM BY LICENSEE OR ANY END USER.

                                       11
<PAGE>

Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

10.  INDEMNIFICATION

     10.1 LICENSEE's Indemnification. LICENSEE shall indemnify and hold harmless
NOA and Nintendo Co., Ltd. (and any of their respective affiliates,
subsidiaries, licensors, suppliers, officers, directors, employees or agents)
from any claims, losses, liabilities, damages, expenses and costs, including,
without limitation, reasonable attorneys' fees and costs and any expenses
incurred in the settlement or avoidance of any such claim, which result from or
are in connection with:

         (a) a breach of any of the provisions, representations or warranties
undertaken by LICENSEE in this Agreement,

         (b) any infringement of a third party's Proprietary Rights as a result
of the design, development, advertising, marketing, sale or use of the Licensed
Products or the Marketing Materials,

         (c) any claims alleging a defect, failure to warn, bodily injury
(including death) or other personal or property damage arising out of, or in
connection with, the design, development, advertising, marketing, sale or use of
any of the Licensed Products, and

         (d) any federal, state or foreign civil or criminal actions relating to
the design, development, advertising, marketing, sale or use of the Licensed
Products or the Marketing Materials.

NOA and LICENSEE shall give prompt Notice to the other of any indemnified claim
under this Section 10.1. With respect to any third party claim subject to this
indemnity clause, LICENSEE, as indemnitor, shall have the right to select
counsel and to control the defense and/or settlement thereof. NOA may, at its
own expense, participate in such action or proceeding with counsel of its own
choice. LICENSEE shall not enter into any settlement of any such claim in which
(i) NOA or Nintendo Co., Ltd. has been named as a party, or (ii) claims relating
to the Intellectual Property Rights have been asserted, without NOA's prior
written consent. NOA shall provide reasonable assistance to LICENSEE in its
defense of any such claim.

     10.2 LICENSEE's Insurance. LICENSEE shall, at its own expense, obtain a
comprehensive policy of general liability insurance (including coverage for
advertising injury and product liability claims) from a recognized insurance
company. Such policy of insurance shall be in an amount of not less than [*] on
a per occurrence basis and shall provide for adequate protection against any
suits, claims, loss or damage by the Licensed Products. Such policy shall name
NOA and Nintendo Co., Ltd. as additional insureds and shall specify that it may
not be canceled without thirty (30) days' prior written Notice to NOA. A
Certificate of Insurance shall be provided to NOA's Licensing Department not
later than the date of the initial order of Licensed Products under this
Agreement. If LICENSEE fails to maintain such insurance at any time during the
Term and for a period of two (2) years thereafter, NOA may secure such insurance
at LICENSEE's expense.

     10.3 Suspension of Production. In the event NOA deems itself at risk with
respect to any claim, action or proceeding under this Section 10, NOA may, at
its sole option, suspend

                                       12
<PAGE>

production, delivery or order acceptance for any Licensed Products, in whole or
in part, pending resolution of such claim, action or proceeding.

11.  PROTECTION OF PROPRIETARY RIGHTS

     11.1 Joint Actions Against Infringers. LICENSEE and NOA may agree to
jointly pursue cases of infringement involving of the Licensed Products, as such
Licensed Products will contain Proprietary Rights owned by each of them. Unless
the parties otherwise agree, or unless the recovery is expressly allocated
between them by the court, in the event of such an action, any recovery shall be
used first to reimburse LICENSEE and NOA for their respective reasonable
attorneys' fees and costs incurred in bringing such action, pro rata, and any
remaining recovery shall be distributed to LICENSEE and NOA, pro rata, based
upon the fees and costs incurred in bringing such action.

     11.2 Actions by LICENSEE. LICENSEE, without the consent of NOA, may bring
any action or proceeding relating to an infringement or potential infringement
of LICENSEE's Proprietary Rights in the Licensed Products. LICENSEE shall make
reasonable efforts to inform NOA of such actions in a timely manner. LICENSEE
will have the right to retain all proceeds it may derive from any recovery in
connection with such actions.

     11.3 Actions by NOA. NOA, without the consent of LICENSEE, may bring any
action or proceeding relating to an infringement or potential infringement of
NOA's Intellectual Property Rights in the Licensed Products. NOA shall make
reasonable efforts to inform LICENSEE of such actions in a timely manner. NOA
will have the right to retain all proceeds it may derive from any recovery in
connection with such actions.

12.  ASSIGNMENT

     12.1 No Assignment by LICENSEE. This Agreement is personal to LICENSEE and
may not be sold, assigned, delegated, sublicensed or otherwise transferred or
encumbered, in whole or in part, without NOA's prior written consent, which
consent may be withheld by NOA in its sole discretion. In the event of an
assignment or other transfer in violation of this Agreement, NOA shall have the
unqualified right to immediately terminate this Agreement without further
obligation to LICENSEE.

     12.2 Assignment by Operation of Law. In the event of an assignment of this
Agreement by operation of law, LICENSEE shall, not later than thirty (30) days
thereafter, give Notice and seek consent thereto from NOA. Such Notice shall
disclose the name of the assignee, the effective date and the nature and extent
of the assignment. An assignment by operation of law includes, but is not
limited to (a) a merger of LICENSEE into another business entity or a merger of
another business entity into LICENSEE, (b) the sale, assignment or transfer of
all or substantially all of the assets of LICENSEE to a third party, (c) the
sale, assignment or transfer to a third party of any of LICENSEE's intellectual
property rights which are used in the development of or are otherwise
incorporated into any Licensed Products, or (d) the sale, assignment or transfer
of any of LICENSEE's stock resulting in the acquirer having management power
over or voting control of LICENSEE. Following the later of (i) such an
assignment by operation of law, or (ii) receipt of Notice therefor, NOA shall
have the unqualified right for a

                                       13
<PAGE>

Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

period of ninety (90) days to immediately terminate this Agreement without
further obligation to LICENSEE.

     12.3 Non-Disclosure Obligation. In no event shall LICENSEE disclose or
allow access to NOA's Confidential Information prior to or upon the occurrence
of an assignment, whether by operation of law or otherwise, unless and until NOA
gives its written consent to such disclosure.

13.  TERM AND TERMINATION

     13.1 Term. This Agreement shall commence on the Effective Date and continue
for the Term, unless earlier terminated as provided for herein.

     13.2 Default or Breach. In the event that either party is in default or
commits a breach of this Agreement, which is not cured within thirty (30) days
after Notice thereof, then this Agreement shall automatically terminate on the
date specified in such Notice.

     13.3 Bankruptcy. At NOA's option, this Agreement may be terminated
immediately and without Notice in the event that LICENSEE (a) makes an
assignment for the benefit of creditors, (b) becomes insolvent, (c) files a
voluntary petition for bankruptcy, (d) acquiesces to any involuntary bankruptcy
petition, (e) is adjudicated as a bankrupt, or (f) ceases to do business.

     13.4 Termination Other Than by Breach. Upon the expiration of this
Agreement or its termination other than by LICENSEE's breach, LICENSEE shall
have a period of [*] days to sell any unsold Licensed Products. All Licensed
Products in LICENSEE's control following the expiration of such sell-off period
shall be destroyed by LICENSEE within ten (10) days and proof of such
destruction (certified by an officer of LICENSEE) shall be provided to NOA.

     13.5 Termination by LICENSEE's Breach. If this Agreement is terminated by
NOA as a result of a breach of its terms and conditions by LICENSEE, LICENSEE
shall immediately cease all distribution, advertising, marketing or sale of any
Licensed Products. All Licensed Products in LICENSEE's control as of the date of
such termination shall be destroyed by LICENSEE within ten (10) days and proof
of such destruction (certified by an officer of LICENSEE) shall be provided to
NOA.

     13.6 Breach of NDA or Other NOA License Agreements. At NOA's option, any
breach by LICENSEE of (a) the NDA, or (b) any other license agreement between
NOA and LICENSEE relating to the development of games for any Nintendo video
game system which is not cured within the time period for cure allowed under the
applicable agreement, shall be considered a material breach of this Agreement
entitling NOA to terminate this Agreement in accordance with Section 13.5
herein.

     13.7 No Further Use of the Intellectual Property Rights. Upon expiration
and/or termination of this Agreement, LICENSEE shall cease all use of the
Intellectual Property Rights for any purpose, except as may be required in
connection with the sale of Licensed Products authorized under Section 13.4
herein. LICENSEE shall, within thirty (30) days thereafter, return or destroy
all Guidelines, writings, drawings, models, data, tools and other materials and
things in LICENSEE's possession or in the possession of any past or present
employee, agent or

                                       14
<PAGE>

contractor receiving the information through LICENSEE, which constitute or
relate to or disclose any Confidential Information, without making copies or
otherwise retaining any such information. Proof of any destruction shall be
certified by an officer of LICENSEE and promptly provided to NOA.

     13.8 Termination by NOA's Breach. If this Agreement is terminated by
LICENSEE as a result of a breach of its terms or conditions by NOA, LICENSEE may
continue to sell the Licensed Products in the Territory until the expiration of
the Term, at which time the provisions of Section 13.4 shall apply.

14.  GENERAL PROVISIONS

     14.1 Export Control. LICENSEE agrees to comply with the export laws and
regulations of the United States and any other country with jurisdiction over
the Licensed Products and/or either party.

     14.2 Force Majeure. Neither party shall be liable for any breach of this
Agreement occasioned by any cause beyond the reasonable control of such party,
including governmental action, war, riot or civil commotion, fire, natural
disaster, labor disputes, restraints affecting shipping or credit, delay of
carriers, inadequate supply of suitable materials or any other cause which could
not with reasonable diligence be controlled or prevented by the parties. In the
event of material shortages, including shortages of materials or production
facilities necessary for production of the Licensed Products, NOA reserves the
right to allocate such resources among itself and its licensees.

     14.3 Records and Audit. During the Term and for a period of two (2) years
thereafter, LICENSEE agrees to keep accurate, complete and detailed records
related to the development and sale of the Licensed Products and the Marketing
Materials. Upon reasonable Notice to LICENSEE, NOA may, at its expense, audit
LICENSEE's records, reports and other information related to LICENSEE's
compliance with this Agreement.

     14.4 Waiver, Severability, Integration, and Amendment. The failure of a
party to enforce any provision of this Agreement shall not be construed to be a
waiver of such provision or of the right of such party to thereafter enforce
such provision. In the event that any term, clause or provision of this
Agreement shall be construed to be or adjudged invalid, void or unenforceable,
such term, clause or provision shall be construed as severed from this
Agreement, and the remaining terms, clauses and provisions shall remain in
effect. Together with the NDA, this Agreement constitutes the entire agreement
between the parties relating to the subject matter hereof. All prior
negotiations, representations, agreements and understandings are merged into,
extinguished by and completely expressed by this Agreement and the NDA. Any
amendment to this Agreement shall be in writing, signed by both parties.

     14.5 Survival. In addition to those rights specified elsewhere in this
Agreement, the rights and obligations set forth in Sections 3, 8, 9, 10 and 13
shall survive any expiration or termination of this Agreement to the degree
necessary to permit their complete fulfillment or discharge.

                                       15
<PAGE>

     14.6 Governing Law and Venue. This Agreement shall be governed by the laws
of the State of Washington, without regard to its conflict of laws principles.
Any legal action (including judicial and administrative proceedings) with
respect to any matter arising under or growing out of this Agreement, shall be
brought in a court of competent jurisdiction in King County, Washington. Each
party hereby consents to the jurisdiction and venue of such courts for such
purposes.

     14.7 Equitable Relief. LICENSEE acknowledges that in the event of its
breach of this Agreement, no adequate remedy at law may be available to NOA and
that NOA shall be entitled to seek injunctive or other equitable relief in
addition to any relief available at law.

     14.8 Attorneys' Fees. In the event it is necessary for either party to this
Agreement to undertake legal action to enforce or defend any action arising out
of or relating to this Agreement, the prevailing party in such action shall be
entitled to recover from the other party all reasonable attorneys' fees, costs
and expenses relating to such legal action or any appeal therefrom.

     14.9 Counterparts and Signature by Facsimile. This Agreement may be signed
in counterparts, which shall together constitute a complete Agreement. A
signature transmitted by facsimile shall be considered an original for purposes
of this Agreement.

     IN WITNESS WHEREOF, the parties have entered into this Agreement on the
dates set forth below.

NOA:                                         LICENSEE:

NINTENDO OF AMERICA INC.                     ACCLAIM ENTERTAINMENT, INC.

By: /s/ John Bauer                           By: /s/ Gregory Fischbach
   ----------------------------------           --------------------------------

Title:  Executive VP, Administration         Title: Chief Executive Officer
                                                   -----------------------------

Date: July 11, 2001                          Date: June 19, 2001
     --------------------------------             ------------------------------

                                       16<PAGE>

Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

                              MICROSOFT CORPORATION
                      XBOX(TM) PUBLISHER LICENSE AGREEMENT

This License Agreement (the "Agreement") is entered into and effective as of
October 10, 2000 (the "Effective Date") by and between MICROSOFT CORPORATION, a
Washington corporation ("Microsoft"), and ACCLAIM ENTERTAINMENT, INC.
("Licensee").

         A. Whereas, Microsoft develops and licenses a computer game system,
known as the Xbox(TM) game system; and

         B. Whereas, Licensee is an experienced publisher of software products
that wishes to develop and/or publish one or more software products running on
the Xbox game system, and to license proprietary materials from Microsoft, on
the terms and conditions set forth herein.

Accordingly, for and in consideration of the mutual covenants and conditions
contained herein, and for other good and valuable consideration, receipt of
which each party hereby acknowledges, Microsoft and Licensee agree as follows:

1. DEFINITIONS. For the purposes of this Agreement, the following terms will
have the respective indicated meanings.

     1.1 "ART & MARKETING MATERIALS" shall mean art and mechanical formats for a
Software Title including the retail packaging, end user instruction manual with
end user license agreement and warranties, Finished Product Unit media label,
and any promotional inserts and other materials that are to be included in the
retail packaging, as well as all press releases, marketing, advertising or
promotional materials related to the Software Title and/or Finished Product
Units (including without limitation web advertising and Licensee's web pages to
the extent they refer to the Software Title(s) or the Finished Products Units).

     1.2 "AUTHORIZED REPLICATOR" shall mean a software replicator certified and
approved by Microsoft for replication of games that run on Xbox. Upon Licensee's
written request, Microsoft will provide Licensee with a copy of the then-current
list of Authorized Replicators, but the status of a particular replicator and
such list may change from time to time in Microsoft's sole and absolute
discretion.

     1.3 "BRANDING SPECIFICATION" shall mean the specifications in Exhibit C,
and such other design specifications as Microsoft may hereafter provide from
time to time, for using the Licensed Trademarks on a Software Title and/or on
related product packaging, documentation, and other materials.

     1.4 "COMMERCIAL RELEASE" shall mean (a) with respect to Xbox, the first
distribution of an Xbox to the public for payment, and (b) with respect to a
Software Title, the earlier of the first distribution of the Software Title for
payment or distribution of Finished Product Units that are not designated as
beta or prerelease versions.

     1.5 "FINISHED PRODUCT UNIT" shall means a DVD-9 copy, in software object
code only, of a Software Title, in whole or in part.

<PAGE>

     1.6 "LICENSED TRADEMARKS" shall mean the Microsoft trademarks depicted in
Exhibit B (which Microsoft unilaterally may modify from time to time during the
term of this Agreement upon written notice to Licensee).

     1.7 "SOFTWARE TITLE" shall mean the single software product as described in
the applicable Exhibit A (i.e., Exhibit A-1, Exhibit A-2, or Exhibit A-n, as the
case may be), developed by Licensee, and running on Xbox. A Software Title shall
include the improvements and patches thereto (if and to the extent approved by
Microsoft), but shall not include any "prequel" or "sequel." If Microsoft
approves one or more additional concept(s) for another single software product
proposed by Licensee to run on Xbox, pursuant to the procedure set forth in
Section 2.1.1 below and the Xbox Guide (as defined in Section 2.1), then upon
Microsoft's written approval of such concept, this Agreement, and the term
"Software Title," shall be broadened automatically to cover the respective new
software product and the parties will prepare, initial and append to this
Agreement a new Exhibit A-n for each such additional new software product.

     1.8 "CERTIFICATION REQUIREMENTS" shall mean the requirements specified in
this Agreement (including without limitation the Xbox Guide) for quality,
compatibility, and/or performance of a Software Title, and, to the extent not
inconsistent with the foregoing standards, the standards of quality and
performance generally accepted in the console game industry.

     1.9 "TERRITORY" shall be determined on a Software Title-by-Software Title
basis, and shall mean such countries as may be specified in writing by Microsoft
when the concept of the applicable Software Title is approved pursuant to
Section 2.1.1 below.

     1.10 "XBOX" shall mean the first version (as of the Commercial Release) of
Microsoft's Xbox game system, including operating software and hardware design
specifications.

2. DEVELOPMENT; DELIVERY; APPROVAL

     2.1 SOFTWARE TITLE DEVELOPMENT. Licensee's development activities with
respect to each Software Title shall be in accordance with the development
schedule set forth in the applicable Exhibit A-n. Furthermore, Licensee agrees
to be bound by all provisions contained in the then-applicable version of the
"Xbox Guide", the current version of which Microsoft or its affiliate will
deliver to Licensee when it is completed, after the execution of this Agreement.
Licensee understands and agrees that Microsoft may, in its discretion,
supplement, revise and update the Xbox Guide from time to time and that upon
Licensee's receipt of the applicable supplement, revision or updated version,
Licensee automatically shall be bound by all provisions of the then-current Xbox
Guide, Microsoft will specify in each such supplement, revision or updated
version a reasonable effective date of each change if such change or revision is
not required to be effective immediately. If Licensee proceeds with the
development of a Software Title, Licensee shall developer each milestone (as
described in this Section 2.1) to Microsoft for approval in writing. All
certification and playtesting (and applicable fees therefor, if any) will be in
accordance with the then-applicable version of the Xbox Guide. If Microsoft does
not approve Licensee's submission for a given milestone then Licensee shall
either correct the problems that contributed to the lack of approval or, if
Microsoft gives Licensee written

                                       2
<PAGE>

notice to cease development, Licensee shall immediately cease all development
activities for the applicable Software Title's subsequent milestones. Each
successive milestone shall comply in all material respects with the
characteristics of previously approved milestones. Each software milestone shall
be delivered in compiled object code form.

         2.1.1 CONCEPT. Licensee shall deliver to Microsoft a written and
completed concept submission form (in the form provided by Microsoft to
Licensee), including without limitation: (a) a detailed description of the
Software Title, including but not limited to (to the extent applicable) title,
theme, plot, characters, play elements, and technical specifications; (b) the
identities of any proposed subcontractors, and general information about the
principal team of individual developers, and (c) an explanation of the design,
technical and marketing suitability of the Software Title. Evaluation of the
proposed design will be based on criteria including, but not necessarily limited
to, the following: (i) originality; (ii) play breadth and depth; (iii)
playability; (iv) replayability and long-term interest; and (v) theme,
characters and storyline. Technical evaluation of the concept will be based on
criteria including, but not necessarily limited to, feasibility of execution and
usage of system capabilities (such as graphics, audio, hard drive, play control,
online capabilities and peripherals). Marketing suitability will be evaluated
based on criteria including, but not necessarily limited to, the following: (i)
market viability; (ii) Licensee's marketing commitment (if any); (iii)
suitability to the target demographic; and (iv) overall fit with the Xbox
certified software products portfolio.

         2.1.2 PRELIMINARY VERSIONS. Licensee may, but will not be required to,
deliver to Microsoft certain preliminary versions of the Software Title, as
addressed in the Xbox Guide.

         2.1.3 FEATURE-COMPLETE VERSION. Licensee shall deliver to Microsoft a
feature-complete version of the Software Title (the "Beta Version"), which
includes all features of the Software Title and such other content as may be
required under the Xbox Guide. Concurrently with delivery of the Beta Version,
Licensee will disclose in writing to Microsoft the details about any and all
so-called "hidden characters," "cheats," "easter eggs," "bonus video and/or
audio," and similar elements included in the Beta Version and/or intended to be
included in the final release version of the Software Title.

         2.1.4 FINAL RELEASE VERSION. Licensee shall deliver to Microsoft,
Licensee's proposed final release version of the applicable Software Title that
is complete and ready for manufacture and commercial distribution, with the
final content rating certification, with identified program errors corrected,
and with any and all changes previously by Microsoft implemented. However,
nothing herein will be deemed to relieve Licensee of its obligation to correct
program bugs and errors, whenever discovered (including without limitation after
Commercial Release), and Licensee agrees to correct such bugs and errors as soon
as possible after discovery (provided that, with respect to bugs or errors
discovered after Commercial Release of the applicable Software Title, Licensee
will use commercially reasonable efforts to correct the bug/error in all
Finished Product Units manufactured after discovery). In addition, Licensee will
comply with all certification procedures, guidelines and standards set forth in
the then-applicable version of the Xbox Guide. Licensee shall not distribute the
Software Title, nor manufacture any Finished Product Units intended for
distribution, unless and until Microsoft shall have given its final
certification and approval of the final release version of the Software

                                       3
<PAGE>

Title, and Microsoft shall have provided the code for the final release version
to the applicable Authorized Replicator(s).

         2.1.5 PLAYTESTING. Microsoft will playtest the Beta Version and
proposed final release version of each Software Title; if Licensee delivers
preliminary versions of a Software Title, Microsoft may (but will not be
obligated to) playtest such versions. Microsoft will provide written comments to
Licensee regarding the results of its playtest results, and Licensee shall
comply with any requests made by Microsoft to improve the applicable Software
Title based on such playtest results. Licensee acknowledges that,
notwithstanding its receipt of approvals from Microsoft for prior milestones or
versions during the development process, Licensee's proposed final release
version of each Software Title must be approved by Microsoft, as set forth in
the Xbox Guide. In addition to conforming with the approved concept, with all
technical specifications, and with all other requirements set by Microsoft
during the development and approval process, each Software Title must achieve a
satisfactory rating in final playtesting. Notwithstanding anything to the
contrary contained herein, Licensee acknowledges and understands that, in part,
the results of playtesting will be subjective, that Microsoft will have the
right to deny final approval based on its determination, and that Licensee has
and will have no expectation of final approval of any Software Title regardless
of any approvals or assessments given or made by Microsoft, informally or
formally, at any time.

         2.1.6 ART & MARKETING MATERIALS. Licensee shall deliver to Microsoft
for approval all Art & Marketing Materials as and when developed, whether during
development activities or thereafter. Licensee shall not distribute any specific
Art & Marketing Materials unless and until Microsoft shall have given its final
certification and approval of the specific item.

     2.2 CONTENT RATING. Licensee understands and agrees that, without
limitation, Microsoft will not give final certification and approval of a
Software Title unless and until Licensee shall have obtained, at Licensee's sole
cost, a rating of no higher than "Mature (17+)" or its equivalent from the
appropriate rating bodies for the applicable Territory (such as, ESRB, ELSPA,
etc.) and/or any and all other independent content rating authority/authorities
reasonably designated by Microsoft. Licensee shall make any changes to the
Software Title required to obtain a rating of no higher than "Mature (17+)" (or
its equivalent). In no event shall Licensee distribute any Software Title under
an "Adults Only" or higher rating (or equivalent rating). Licensee shall include
the applicable rating(s) prominently on Finished Product Units, in accordance
with the applicable rating body guidelines.

     2.3 DEVELOPMENTS KIT LICENSE. Microsoft or its affiliate will offer to
Licensee the opportunity to enter into one or more development kit license(s)
(each an "XDK License") pursuant to which Microsoft would license to Licensee
software development tools and hardware to assist Licensee in the development of
Software Titles, including without limitation certain sample code and other
redistributable code which Licensee could incorporate into Software Titles, on
such terms and conditions as are contained in the XDK License.

     2.4 SUBCONTRACTORS. Licensee shall not use any subcontractors or any other
third parties to perform software development work in connection with a Software
Title unless and until (i) the proposed subcontractor or other third party and
(ii) Microsoft shall have executed an

                                       4
<PAGE>

XDK license; provided that nothing contained herein will be deemed to require
Microsoft or its affiliate to execute an XDK License with any particular person
or entity if Microsoft or its affiliate determines that it is not appropriate to
execute such an XDK License.

     2.5 CHANGES OF REQUIREMENTS BY MICROSOFT. Unless otherwise reasonably
specified by Microsoft at the respective time: (a) after approval by Microsoft
of the Beta Version of a Software Title, Licensee will not be obligated to
comply, with respect to such Software Title only, with any subsequent changes
made by Microsoft to the technical or content requirements for Software Titles
generally in the Xbox guide; and (b) subject to the immediately preceding clause
(a), any changes made by Microsoft in Branding Specifications or other
requirements after final certification of a Software Title by Microsoft will be
effective as to such Software Title only on a "going forward" basis (i.e., only
to such Art & Marketing Materials and/or Finished Product Units as are
manufactured after Microsoft notifies Licensee of the change), unless (i) the
change can be accommodated by Licensee with insignificant added expense, or (ii)
Microsoft pays for Licensee's direct, out-of-pocket expenses necessarily
incurred as a result of its retrospective compliance with the change.

3.   RIGHTS AND RESTRICTIONS

     3.1 TRADEMARKS.

         3.1.1 LICENSE. In each Software Title, and on each Finished Product
Unit (and the packaging therefor), Licensee shall incorporate the Licensed
Trademarks and include credit and acknowledgement to Microsoft as set forth in
the Branding Specifications and the Xbox Guide. Microsoft grants to Licensee a
non-exclusive, non-transferable, personal license to use the Licensed
Trademarks, according to the Branding Specifications and other conditions
herein, and solely in connection with marketing, sale, and distribution in the
Territory of Finished Product Units that meet the Certification Requirements.

         3.1.2 LIMITATIONS. Licensee is granted no right, and shall not purport,
to permit any third party to use the Licensed Trademarks in any manner without
Microsoft's prior written consent. Licensee's license to use Licensed Trademarks
in connection with the Software Title and Finished Product Units shall not
extend to the merchandising or sale of related or promotional products under the
Licensed Trademarks.

         3.1.3 BRANDING SPECIFICATIONS. Licensee's use of the Licensed
Trademarks (including without limitation in Finished Product Unit and Art &
Marketing Materials) shall comply with the Branding Specifications in Exhibit C.
License shall not use Licensed Trademarks in association with any third party
trademarks in a manner that might suggest co-branding or otherwise create
potential confusion as to source or sponsorship of the Software Title or
Finished Product Units or ownership of the Licensed Trademarks. Upon notice or
other discovery of any non-conformance with the requirements or prohibitions of
this section, Licensee shall promptly remedy such non-conformance and notify
Microsoft of the non-conformance and remedial steps taken.

         3.1.4 CERTIFICATION REQUIREMENTS. Licensee may use the Licensed
Trademarks only in connection with the copies of the Software Title that meet
the Certification

                                       5
<PAGE>

Requirements. Licensee shall test the Software Title and Finished Product Units
for conformance with the Certification Requirements according to generally
accepted and best industry practices, and shall keep written or electronic
records of such testing during the term of this Agreement and for no less than
two (2) years thereafter ("Test Records"). Upon Microsoft's request, Licensee
shall provide Microsoft with copies of or reasonable access to inspect the Test
Records, Finished Product Units and Software Title (either in pre-release or
commercial release versions, as Microsoft may request). Upon notice or other
discovery of any non-conformance with the Certification Requirements, Licensee
shall promptly remedy such non-conformance in all Finished Products Units
wherever in the chain of distribution (subject to Sections 2.1.4 and 2.5 above),
and shall notify Microsoft of the non-conformance and remedial steps taken.

         3.1.5 PROTECTION OF LICENSED TRADEMARKS. Licensee shall assist
Microsoft in protecting and maintaining Microsoft's rights in the Licensed
Trademarks, including preparation and execution of documents necessary to
register the Licensed Trademarks or record this Agreement, and giving immediate
notice to Microsoft of potential infringement of the Licensed Trademarks.
Microsoft shall have the sole right to and in its sole discretion may commence,
prosecute or defend, and control any action concerning the Licensed Trademarks
either in its own name or by joining Licensee as a party thereto. Licensee shall
not during the Term of this Agreement contest the validity of, by act or
omission jeopardize, or take any action inconsistent with, Microsoft's rights or
goodwill in the Licensed Trademarks in any country, including attempted
registration of any Licensed Trademark, or use or attempted registration of any
mark confusingly similar thereto.

         3.1.6 OWNERSHIP. Licensee acknowledges Microsoft's ownership of all
Licensed Trademarks, and all goodwill associated with the Licensed Trademarks.
Use of the Licensed Trademarks shall not create any right, title or interest
therein in Licensee's favor. Licensee's use of the Licensed Trademarks shall
inure solely to the benefit of Microsoft.

         3.1.7 NO BUNDLING WITH UNAPPROVED PERIPHERALS, PRODUCTS OR SOFTWARE.
Licensee shall not market or distribute any Finished Product Unit bundled with a
peripheral product software or other products, nor shall Licensee knowingly
permit or assist any third party in such bundling, without Microsoft's prior
written consent.

     3.2 EULA. Licensee shall distribute (directly or indirectly) the Software
Title to end users subject to an end user license agreement ("EULA") in a form
to be approved by Microsoft prior to any distribution of the Software Title;
provided that, in any event, Licensee's EULA for the Software Title shall (a)
name Microsoft as a third party beneficiary, with the right to enforce the
agreement, (b) grant the end user the right to use the Software Title on only
one Xbox console at a time, and (c) forbid the end user from reverse engineering
or decompiling the Software Title or Xbox. Microsoft will have the right to
modify its requirements for the EULA at any time, in its discretion, and
Licensee shall implement, at its sole cost, all such new requirements as soon as
reasonably possible after receiving written notice from Microsoft of such
required modifications.

     3.3 NO ELECTRONIC TRANSMISSION; NO ONLINE ACTIVITIES. Licensee shall
distribute the Software Title only as embodied in Finished Product Units;
specifically, but without limitation, Licensee shall not distribute the Software
Title by any means of electronic

                                       6
<PAGE>

transmission without the prior written approval of Microsoft, which Microsoft
may grant or withhold in its discretion. Furthermore, Licensee will not
authorize or permit any online activities involving the Software Title,
including without limitation multiplayer, peer-to-peer and/or online play,
without the prior written approval of Microsoft, which Microsoft may grant or
withhold in its discretion.

     3.4 NO DISTRIBUTION OUTSIDE THE TERRITORY. Licensee shall distribute
Finished Product Units only in the Territory. Licensee shall not directly or
indirectly export any Finished Product Units from the Territory or shall
Licensee knowingly permit or assist any third party in doing so, nor shall
Licensee distribute Finished Product Units to any person or entity that it has
reason to believe may re-distribute or sell such Finished Product Units outside
the Territory.

     3.5 NO REPRODUCTION OF FINISHED PRODUCT UNITS EXCEPT BY MICROSOFT OR
AUTHORIZED REPLICATORS. Licensee acknowledges that this Agreement does not grant
Licensee the right to reproduce or otherwise manufacture Finished Product Units
itself, or on its behalf, other than with Microsoft or an Authorized Replicator.
Licensee must use Microsoft or an Authorized Replicator to produce Finished
Product Units, pursuant to Section 4.

     3.6 NO REVERSE ENGINEERING. Licensee may utilize and study the design,
performance and operation of Xbox solely for the purposes of developing the
Software Title. Notwithstanding the foregoing, Licensee shall not, directly or
indirectly, reverse engineer or aid or assist in the reverse engineering of all
or any part of Xbox except and only to the extent that such activity is
expressly permitted by applicable law notwithstanding this limitation. Reverse
engineering includes, without limitation, decompiling, disassembly, sniffing,
peeling semiconductor components, or otherwise deriving source code. In addition
to any other rights and remedies that Microsoft may have under the
circumstances, Licensee shall be required in all cases to pay royalties to
Microsoft in accordance with Section 6 below with respect to any games or other
products that are developed, marketed or distributed by Licensee, and derived in
whole or in part from the reverse engineering of Xbox or any Microsoft data,
code or other material.

     3.7 RESERVATION OF RIGHTS. Microsoft reserves all rights not explicitly
granted herein.

     3.8 OWNERSHIP OF THE SOFTWARE TITLES. Except for the intellectual property
supplied by Microsoft to Licensee (including without limitation the licenses in
the Licensed Trademarks hereunder and the licenses in certain software and
hardware granted by an XDK License), ownership of which is retained by
Microsoft, insofar as Microsoft is concerned, Licensee will own all rights in
and to the Software Titles.

4.   MANUFACTURING

     4.1 APPROVED REPLICATORS. Licensee shall retain only an Authorized
Replicator to manufacture all Finished Product Units.

     4.2 TERMS OF USE OF AUTHORIZED REPLICATOR. Licensee will notify Microsoft
in writing of the identity of the applicable Authorized Replicator and unless
Microsoft agrees

                                       7
<PAGE>

Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

otherwise, the agreement for such manufacturing/replication services shall be as
negotiated by Licensee and the applicable Authorized Replicator, subject to the
following requirements:

         4.2.1 Microsoft, and not Licensee, will provide to the single
applicable Authorized Replicator the final release version of the Software Title
and all specifications required by Microsoft for the manufacture of the Finished
Product Units (including without limitation the Security Technology (as defined
in Section 4.4 below); Licensee will be responsible for preparing and delivering
to the Authorized Replicator all other items required for manufacturing Finished
Product Units; and Licensee agrees that all Finished Product Units must be
replicated in conformity with all of the quality standards and manufacturing
specifications, policies and procedures that Microsoft requires of its
Authorized Replicators, and that all so-called "adders" must be approved by
Microsoft prior to packaging (in accordance with Section 2.1.6 above);

         4.2.2 Microsoft will have the right but not the obligation, to be
supplied with up to [*] Finished Product Units (including pre-production samples
and random units manufactured during production runs) at Licensee's cost but
without royalties, for quality assurance and archival purposes;

         4.2.3 the initial manufacturing order for Finished Product Units of
each Software Title may not be less than a number specified by Microsoft in the
Xbox Guide; although such number may change from time to time during the term of
this Agreement, initially it will be [*];

         4.2.4 as between Licensee and Microsoft, Licensee shall be responsible
for ensuring that all Finished Product Units are free of all defects;

         4.2.5 Licensee will use commercially reasonable efforts to cause the
Authorized Replicator to deliver to Microsoft true and accurate monthly
statements of Finished Product Units manufactured in each calendar month, on a
Software Title-by-Software Title basis and in sufficient detail to satisfy
Microsoft, within fifteen (15) days after the end of the applicable month, and
Microsoft will have reasonable audit rights to examine the records of the
Authorized Replicator regarding the number of Finished Product Units
manufactured;

         4.2.6 Microsoft will have the right to have included in the packaging
of Finished Product Units such marketing materials for Xbox and/or other Xbox
products or services as Microsoft may determine in its reasonable discretion.
Microsoft will be responsible for delivering to the Authorized Replicator all
such marketing materials as it desires to include with Finished Product Units,
and any incremental insertion costs relating to such marketing materials will be
borne by Microsoft;

         4.2.7 Microsoft does not guarantee any level of performance by its
Authorized Replicators, and Microsoft will have no liability to Licensee for any
Authorized Replicator's failure to perform its obligations under any applicable
agreement between Microsoft and such Authorized Replicator and/or between
Licensee and such Authorized Replicator;

                                       8
<PAGE>

         4.2.8 Prior to placing an order with a replicator/manufacturer for
Finished Product Units, Licensee shall confirm with Microsoft that such entity
is an Authorized Replicator, Microsoft will endeavor to keep an up-to-date list
of Authorized Replicators in the Xbox Guide. Licensee will not place any order
for Finished Product Units with any entity that is not at such time an
Authorized Replicator.

     4.3 APPROVAL OF NEW AUTHORIZED REPLICATOR. If Licensee requests that
Microsoft certify and approve a third party replicator that is not then an
Authorized Replicator, Microsoft will consider such request in good faith.
Licensee acknowledges and agrees that Microsoft may condition certification and
approval of such third party on the execution of an agreement in a form
satisfactory to Microsoft pursuant to which such third party agrees to strict
quality standards, non-disclosure requirements, licensee fees for use of
Microsoft intellectual property and trade secrets, and procedures to protect
Microsoft's intellectual property and trade secrets. Notwithstanding anything
contained herein, Licensee acknowledges that Microsoft is not required to
certify or approve any particular third party as an Authorized Replicator, and
that the certification and approval process may be time-consuming.

     4.4 SECURITY. Microsoft will have the right to add to the final release
version of the Software Title delivered by Licensee to Microsoft, and to all
Finished Product Units, such digital signature technology and other security
technology and copyright management information (collectively, "Security
Technology") as Microsoft may determine to be necessary, and/or Microsoft may
modify the signature included in any Security Technology included in the
Software Title by Licensee at Microsoft's direction. Additionally, Microsoft may
add Security Technology that prohibits the play of Software Titles on Xbox units
manufactured in a region or country different from the location of manufacture
of the respective Finished Product Units.

5.   MARKETING, SALES AND SUPPORT

     5.1 LICENSEE RESPONSIBLE. As between Microsoft and Licensee, Licensee shall
be solely responsible for marketing sales of the Software Title, and for
providing technical and all other support to the end users of the Finished
Product Units. Licensee will provide all end users of Software Titles contact
information (including without limitation Licensee's street address and
telephone number, and the applicable individual/group responsible for customer
support). Such end user support will be consistent with the then-applicable
console game industry standards. Licensee acknowledges and agrees that Microsoft
will have no support responsibilities whatsoever to end users of the Software
Title or with respect to Finished Product Units.

     5.2 ART & MARKETING MATERIALS. In accordance with Section 2.1.6 above,
Licensee shall submit all Art & Marketing Materials to Microsoft, and Licensee
shall not distribute such Art & Marketing Materials unless and until Microsoft
has approved them in writing. Prior to publication of any Art & Marketing
Materials, Licensee agrees to incorporate all changes relating to use the
Licensed Trademarks that Microsoft may request, and will use its commercially
reasonable efforts to incorporate other changes reasonably suggested by
Microsoft (provided, however, that Licensee shall at all times comply with the
requirements set forth in the Branding Specifications and/or the Xbox Guide).

                                       9
<PAGE>

Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

     5.3 WARRANTY. Licensee shall provide the original end user of any Finished
Product Unit a minimum ninety (90) day limited warranty that the Finished
Product Unit will perform in accordance with its user documentation or Licensee
will provide a replacement Finished Product Unit at no charge.

     5.4 RECALL. Notwithstanding anything to the contrary contained in this
Agreement (including without limitation Section 2.1.4), in the event of a
material defect in a Software Title and/or any Finished Product Units, which
defect in the reasonable judgement of Microsoft would significantly impair the
ability of an end user to play such Software Title or Finished Product Unit,
Microsoft may require Licensee to recall Finished Product Units and undertake
prompt repair or replacement of such Software Title and/or Finished Product
Units.

     5.5 SOFTWARE TITLE LICENSE. Subject to third party rights of which Licensee
shall have informed Microsoft in writing at the time of delivery of the
feature-complete version of the applicable Software Title, Licensee hereby
grants to Microsoft a fully-paid, royalty-free, non-exclusive license (i) to
publicly perform the Software Titles at conventions, events, trade shows, press
briefings, and the like; and (ii) to use the title of the Software Title, and
screen shots from the Software Title, in advertising and promotional material
relating to Xbox and related Microsoft products and services, as Microsoft may
reasonably deem appropriate.

6.   PAYMENTS

     6.1 ROYALTIES. Licensee shall pay Microsoft royalties, on a Software
Title-by-Software Title basis, for each Finished Product Unit manufactured, in
accordance with the following table:

 FINISHED PRODUCT UNITS MANUFACTURED     ROYALTY PER APPLICABLE FINISHED PRODUCT
                                                         UNIT
                                                      US DOLLARS
                                                         YEN
                                                        EUROS

              Units [*]-[*]                              [*]
                                                         [*]
                                                         [*]

              Units [*]-[*]                              [*]
                                                         [*]
                                                         [*]

              Units [*]-[*]                              [*]
                                                         [*]
                                                         [*]

              Units [*] and [*]                          [*]
                                                         [*]
                                                         [*]

                                       10
<PAGE>

Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

Notwithstanding the foregoing, no royalties will be payable hereunder with
respect to any Demo Finished Product Units. For the purposes hereof, a "Demo
Finished Product Unit" will mean a Finished Product Unit that (i) contains only
a small portion of the applicable Software Title, (ii) is provided to end users
only to advertise or promote the applicable Software Title (although it may
include demonstration versions of other games for Xbox published by Licensee),
(iii) is manufactured in a number of units that has been approved in advance by
Microsoft, which approval Microsoft agrees not to unreasonably withhold, and
(iv) is distributed free or with a suggested retail price of not more than [*].

     6.2 ROYALTY PAYMENTS. Licensee shall have the option of paying the above
royalties in US Dollars, Japanese Yen or Euros, according to the terms of this
Section. By designating the appropriate box below, Licensee may choose to pay
royalties on either a "Worldwide" or "Regional" basis. Such designation shall be
binding throughout the term of this Agreement for all of Licensee's Software
Titles. If Licensee elects to pay on a Worldwide basis, it shall pay royalties
in US Dollars regardless of where the Finished Product Units are distributed or
manufactured. If Licensee elects to pay on a Regional basis, it shall pay
royalties in US Dollars, Japanese Yen or Euros in accordance with the table set
forth in Section 6.1 but subject to the rest of this Section 6.2:

            (i) If the Authorized Replicator manufacturing the Finished Product
Units is located in Japan, Singapore, Malaysia or Taiwan, Licensee shall pay its
royalty denominated in Japanese Yen for such Finished Product Units.

            (ii) If the Authorized Replicator manufacturing the Finished Product
Units is located in a member country of the European Union, Licensee shall pay
its royalty denominated in Euros for such Finished Product Units.

            (iii) If the Authorized Replicator manufacturing the Finished
Product Units is located in any other country or region of the world, Licensee
shall pay its royalty denominated in U.S. Dollars for such Finished Product
Units.

Notwithstanding the foregoing, in the event the conversion ratio for either Yen
or Euros to Dollars, as described in the US edition of the Wall Street Journal,
falls outside the foreign exchange trading range as set forth in the chart
below, for a period of time greater than 30 consecutive days. Microsoft may then
readjust the royalty amounts set forth in Section 6.1 for that currency. Such
readjustments shall be made in Microsoft's good faith discretion according to
its normal practices.

                       YEN/EURO TO US DOLLAR TRADING RANGE

                              MINIMUM                       MAXIMUM

        Yen                     [*]                           [*]
       Euros                    [*]                           [*]

        [ ]                  Worldwide                 _____ (initials)

        [X]                   Regional                 _____ (initials)

                                       11
<PAGE>

Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

     6.3 PAYMENT PROCESS. After its receipt from the applicable Authorized
Replicator(s) of each monthly statement of Finished Product Units manufactured,
Microsoft will invoice Licensee for the amount owed to Microsoft pursuant to
Section 6.1 above based upon the applicable statement. Licensee shall pay to
Microsoft the full amount invoiced within thirty (30) calendar days after the
date of the respective invoice. Payment will be made by wire transfer, in
immediately available funds, to an account, and in accordance with a reasonable
procedure, to be specified in writing by Microsoft.

     6.4 AUDIT. Licensee shall keep all usual and proper records related to its
performance (and any subcontractor's performance) under this Agreement,
including support for any cost borne by or income due to Microsoft, for a
minimum period of three (3) years from the date they are created. Such records,
books of account, and entries shall be kept in accordance with generally
accepted accounting principles. Microsoft reserves the right, upon twenty-four
(24) hours' notice, to audit Licensee's records and consult with Licensee's
accountants for the purpose of verifying Licensee's compliance with the terms of
this Agreement and for a period of two (2) years thereafter. Any such audit
shall be made by Microsoft's internal audit team or any Microsoft designee, and
shall be conducted during regular business hours at the Licensee's (or any
applicable subcontractor's) offices. Any such audit shall be paid for by
Microsoft unless material discrepancies are disclosed. "Material" shall mean [*]
of the royalties due to Microsoft within the audit period. If material
discrepancies are disclosed, Licensee agrees to pay Microsoft for the costs
associated with the audit, as well as reimburse Microsoft for all over-charged
amounts, plus interest at a rate of [*].

     6.5 TAXES.

         6.5.1 The royalties to be paid by Licensee to Microsoft herein do not
include any foreign, U.S. federal, state, local, municipal or other governmental
taxes, customs and other duties, levies, fees, excises or tariffs, arising as a
result of or in connection with the transactions contemplated under this
Agreement including, without limitation, any state or local sales or use taxes
or consumption tax or any value added tax or business transfer tax now or
hereafter imposed on the provision of goods and services to Licensee by
Microsoft under this Agreement, regardless of whether the same are separately
stated by Microsoft (all such taxes and other charges being referred to herein
as "Taxes"). All Taxes (and any penalties, interest, or other additions to any
Taxes), with the exception of taxes imposed on Microsoft's net income or with
respect to Microsoft's property ownership, shall be the financial responsibility
of Licensee. Licensee agrees to indemnify, defend and hold Microsoft harmless
from any such Taxes or claims, causes of action, costs (including, without
limitation, reasonable attorneys' fees) and any other liabilities of any nature
whatsoever related to such Taxes.

         6.5.2 Licensee will pay all applicable value added, sales and use taxes
and other taxes levied on it by a duly constituted and authorized taxing
authority on the XDKs or any transaction related thereto in each country in
which the services and/or property are being provided or in which the
transactions contemplated hereunder are otherwise subject to tax, regardless of
the method of delivery. Any taxes that are owed by Licensee, (i) as a result of
entering into this Agreement and the payment of the fees hereunder, (ii) are
required or permitted to be collected from Licensee by Microsoft under
applicable law, and (iii) are based upon the

                                       12
<PAGE>

amounts payable under this Agreement (such taxes described in (i), (ii) and
(iii) above the "Collected Taxes"), shall be remitted by Licensee to Microsoft,
whereupon, upon request, Microsoft shall provide to Licensee tax receipts or
other evidence indicating that such Collected Taxes have been collected by
Microsoft and remitted to the appropriate taxing authority. Licensee may provide
to Microsoft an exemption certificate acceptable to Microsoft and to the
relevant taxing authority (including without limitation a resale certificate) in
which case, after the date upon which such certificate is received in proper
form, Microsoft shall not collect the taxes covered by such certificate.

         6.5.3 If, after a determination by foreign tax authorities, any taxes
are required to be withheld, on payments made by Licensee to Microsoft, Licensee
may deduct such taxes from the amount owed Microsoft and pay them to the
appropriate taxing authority; provided, however, that Licensee shall promptly
secure and deliver to Microsoft an official receipt for any such taxes withheld
or other documents necessary to enable Microsoft to claim a U.S. Foreign Tax
Credit. Licensee will make certain that any taxes withheld are minimized to the
extent possible under applicable law.

         6.5.4 This tax Section 6.5 shall govern the treatment of all taxes
arising as a result of or in connection with this Agreement notwithstanding any
other section of this Agreement.

7.   NON-DISCLOSURE; ANNOUNCEMENTS

     7.1 NON-DISCLOSURE AGREEMENT. The information, materials and software
exchanged by the parties hereunder or under an XDK License, including the terms
and conditions hereof and of the XDK License, shall be subject to the
Non-Disclosure Agreement between the parties attached hereto and incorporated
herein by reference as Exhibit D.

     7.2 PUBLIC ANNOUNCEMENTS. The parties contemplate that they will coordinate
the issuance of initial press releases or a joint press release, announcing the
relationship established by the execution of this Agreement. However, neither
party shall issue any such press release or make any such public announcement(s)
without the express prior consent of the other party, which consent will not be
unreasonably withheld or delayed. Furthermore, the parties agree to use their
commercially reasonable efforts to coordinate in the same manner any subsequent
press releases and public announcements relating to their relationship hereunder
prior to the issuance of the same. Nothing contained in the Section 7.2 will
relieve Licensee of any other obligations it may have under this Agreement,
including without limitation its obligations to seek and obtain Microsoft
approval of Art & Marketing Materials.

     7.3 REQUIRED PUBLIC FILINGS. Notwithstanding Sections 7.1 and 7.2, the
parties acknowledge that this Agreement, or portions thereof, may be required
under applicable law to be disclosed, as part of or an exhibit to a party's
required public disclosure documents. If either party is advised by its legal
counsel that such disclosure is required, it will notify the other in writing
and the parties will jointly seek confidential treatment of this Agreement to
the maximum extent reasonably possible, in documents approved by both parties
and filed with the applicable governmental or regulatory authorities, and/or
Microsoft will prepare a redacted version of this Agreement for filing.

                                       13
<PAGE>

Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

8.   TERM AND TERMINATION

     8.1 TERM. The term of this Agreement shall commence on the Effective Date
and unless terminated earlier as provided herein, shall continue until three (3)
years after Commercial Release of Xbox.

     8.2 TERMINATION FOR BREACH. In the event either party shall materially fail
to perform or comply with this Agreement or any provision thereof, and fail to
remedy the default within fifteen (15) days after the receipt of notice to that
effect, then the other party shall have the right, at its sole option and upon
written notice to the defaulting party, to terminate this Agreement upon written
notice. Any notice of default hereunder shall be prominently labeled "NOTICE OF
DEFAULT"; provided, however, that if the default is of Section 3 or 7.1 above,
or an XDK License, then the non-defaulting party may terminate this Agreement
immediately upon written notice, without being obligated to provide a
fifteen-day cure period. The rights and remedies provided in this Section shall
not be exclusive and are in addition to any other rights and remedies provided
by law or this Agreement. If the uncured default is related to a particular
Software Title, then the party not in default will have the right, in its
discretion, to terminate this Agreement in its entirety or with respect to the
applicable Software Title.

     8.3 TERMINATION FOR CREATIVE REASONS. In the event that Microsoft
determines, at any time prior to the Commercial Release of a Software Title,
that such Software Title does not comply with the requirements set forth in the
Xbox Guide, then Microsoft will have the right to terminate this Agreement,
without cost or penalty, upon written notice to Licensee solely with respect to
such Software Title, in Microsoft's sole discretion and notwithstanding any
prior approvals given by Microsoft pursuant to Section 2 above.

     8.4 EFFECT OF TERMINATION; SELL-OFF RIGHTS. Upon termination or expiration
of this Agreement, Licensee shall have no further right to exercise the rights
licensed hereunder or otherwise acquired in relation to this Agreement and shall
promptly return any and all copies of the Licensed Trademarks. Licensee shall
have a period of [*] following expiration of this Agreement, or termination for
a reason other than Licensee's breach, to sell-off its inventory of Finished
Product Units existing as of the date of termination or expiration, after which
sell-off period Licensee immediately shall destroy all Finished Product Units
then in its possession or under its control. All of Licensee's obligations under
this Agreement shall continue to apply during such [*] sell-off period. If
this Agreement is terminated due to Licensee's breach, Licensee shall
immediately destroy all Finished Product Units not yet distributed to Licensee's
distributors, dealers and/or end users. If requested by Microsoft in writing,
Licensee will deliver to Microsoft the written certification by an officer of
Licensee confirming the destruction of Finished Product Units required
hereunder.

     8.5 SURVIVAL. The following provisions shall survive termination of this
Agreement: 1, 3.6, 5.1, 5.3, 5.4, 6, 7, 8.4, 8.5, 9, 10, 11 and 12.

9.   WARRANTIES

     9.1 LICENSEE. Licensee warrants and represents that:

                                       14
<PAGE>

         9.1.1 It has the full power to enter into this Agreement;

         9.1.2 It has not previously and will not grant any rights to any third
party that are inconsistent with the rights granted to Microsoft herein; and

         9.1.3 The Software Title, Finished Product Units, Art & Marketing
Materials (excluding those portion that consist of the Licensed Material,
Licensed Trademarks, and redistributable components of the so-called "XDK" in
the form as delivered to Licensee by Microsoft pursuant to an XDK License) do
not and will not infringe upon or misappropriate any third party trade secrets,
copyrights, trademarks, patents, publicity, privacy or other proprietary rights.

     9.2 MICROSOFT. Microsoft warrants and represents that:

         9.2.1 It has the full power to enter into this Agreement; and

         9.2.2 It has not previously and will not grant any rights to any third
party that are inconsistent with the rights granted to Licensee herein.

     9.3 DISCLAIMER. EXCEPT AS EXPRESSLY STATED IN THIS SECTION 9, MICROSOFT
PROVIDES ALL MATERIALS (INCLUDING WITHOUT LIMITATION THE SECURITY TECHNOLOGY)
AND SERVICES HEREUNDER ON AN "AS IS" BASIS AND MICROSOFT DISCLAIMS ALL OTHER
WARRANTIES UNDER THE APPLICABLE LAWS OF ANY COUNTRY, EXPRESS OR IMPLIED,
REGARDING THE MATERIALS AND SERVICES IT PROVIDES HEREUNDER, INCLUDING ANY
IMPLIED WARRANTIES OF MECHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR
WARRANTY OF FREEDOM FROM COMPUTER VIRUSES. WITHOUT LIMITATION, MICROSOFT
PROVIDES NO WARRANTY OF NON-INFRINGEMENT.

     9.4 LIMITATION OF LIABILITY. THE MAXIMUM LIABILITY OF MICROSOFT TO LICENSEE
OR ANY THIRD PARTY ARISING OUT OF THIS AGREEMENT SHALL BE THE TOTAL AMOUNTS
RECEIVED BY MICROSOFT HEREUNDER. FURTHERMORE, UNDER NO CIRCUMSTANCES SHALL
MICROSOFT BE LIABLE TO LICENSEE FOR ANY DAMAGES WHATSOEVER WITH RESPECT TO ANY
CLAIMS RELATING TO THE SECURITY TECHNOLOGY AND/OR ITS AFFECT ON ANY SOFTWARE
TITLE.

10.  INDEMNITY

     10.1 INDEMNIFICATION. A claim for which indemnity may be sought hereunder
shall be referred to as a "Claim."

         10.1.1 MUTUAL INDEMNIFICATION. Each party hereby agrees to indemnify,
defend, and hold the other party harmless from any and all claims, demands,
costs, liabilities, losses, expenses and damages (including reasonable
attorneys' fees, costs, and expert witnesses' fees) arising out of or in
connection with any claim that, taking the claimant's allegations to be

                                       15
<PAGE>

Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

true, would result in a breach by the indemnifying party of any of its
warranties and covenants set forth in Section 9.

         10.1.2 ADDITIONAL LICENSEE INDEMNIFICATION OBLIGATION. Licensee further
agrees to indemnify, defend, and hold Microsoft harmless from any and all
claims, demands, costs, liabilities, losses, expenses and damages (including
reasonable attorneys' fees, costs, and expert witnesses' fees) arising out of or
in connection with any claim regarding any Software Title or Finished Product
Unit, including without limitation any claim relating to quality, performance,
safety or conformance with the Certification Requirements, or arising out of
Licensee's use of the Licensed Trademarks in breach of this Agreement.

     10.2 NOTICE AND ASSISTANCE. The indemnified party shall: (i) provide the
indemnifying party reasonably prompt notice in writing of any Claim and permit
the indemnifying part to answer and defend such Claim through counsel chosen and
paid by the indemnifying party; and (ii) provide information, assistance and
authority to help the indemnifying party defend such Claim. The indemnified
party may participate in the defense of any Claim at its own expense. The
indemnifying party will not be responsible for any settlement made by the
indemnified party without the indemnifying party's written permission, which
will not be unreasonably withheld or delayed. In the event the indemnifying
party and the indemnified party agree to settle a Claim, the indemnified party
agrees not to publicize the settlement without first obtaining the indemnifying
party's written permission.

     10.3 INSURANCE. Prior to distribution of any Software Title, Licensee at
its sole cost and expense shall have endorsed Microsoft as an additional insured
on Licensee's media perils errors and omissions liability policy for claims
arising in connection with production, development and distribution of each
Software Title in an amount no less than [*] on a per occurrence or per incident
basis. Coverage provided to Microsoft under the policy shall be primary to and
not contributory with any insurance maintained by Microsoft. Upon request,
Licensee agrees to furnish copies of the additional insured endorsement and/or a
certificate of insurance evidencing compliance with this requirement.

11.  PROTECTION OF PROPRIETARY RIGHTS

     11.1 MICROSOFT INTELLECTUAL PROPERTY. In the event Licensee learns of any
infringement or imitation of the Licensed Trademarks, the Software Title or the
Finished Product Units, or the proprietary rights in or related to any of them,
it will promptly notify Microsoft thereof. Microsoft may take such action as it
deems advisable for the protection of its rights in and to such proprietary
rights and Licensee shall, if requested by Microsoft, cooperate in all
reasonable respects therein at Microsoft's expense. In no event, however, shall
Microsoft be required to take any action if it deems it inadvisable to do so.
Microsoft will have the right to retain all proceeds it may derive from any
recovery in connection with such actions.

     11.2 LICENSEE INTELLECTUAL PROPERTY. Licensee, without the express written
permission of Microsoft, may bring any action or proceeding relating to this
infringement or potential infringement, to the extent such infringement involves
any proprietary rights of Licensee (provided that Licensee will not have the
right to bring any such action or proceeding involving Microsoft's intellectual
property). Licensee shall make reasonable efforts to inform

                                       16
<PAGE>

Microsoft regarding such actions in a timely manner. Licensee will have the
right to retain all proceeds it may derive from any recovery in connection with
such actions. Licensee agrees to use all commercially reasonable efforts to
protect and enforce its proprietary rights in the Software Title.

     11.3 JOINT ACTIONS. Licensee and Microsoft may agree to jointly pursue
cases of infringement involving the Software Titles (since such products will
contain intellectual property owned by each of them). Unless the parties
otherwise agree, or unless the recovery is expressly allocated between them by
the court (in which case the terms of Sections 11.1 and 11.2 will apply). In the
event Licensee and Microsoft jointly prosecute an infringement lawsuit under
this provision, any recovery shall be used first to reimburse Licensee and
Microsoft for their respective reasonable attorneys' fees and expenses, pro
rata, and any remaining recovery shall also be given to License and Microsoft
pro rata based upon the fees and expenses incurred in bringing such action.

12.  GENERAL

     12.1 GOVERNING LAW; VENUE; ATTORNEYS FEES. This Agreement shall be
construed and controlled by the laws of the State of Washington, U.S.A., and
Licensee consents to exclusive jurisdiction and venue in the federal courts
sitting in King County, Washington, U.S.A., unless no federal jurisdiction
exists, in which case Licensee consents to exclusive jurisdiction and venue in
the Superior Court of King County, Washington, U.S.A. Licensee waives all
defenses of lack of personal jurisdiction and forum non conveniens. Process may
be served on either party in the manner authorized by applicable law or court
rule. If either party employs attorneys to enforce any rights arising out of or
relating to this Agreement, the prevailing party shall be entitled to recover
its reasonable attorneys' fees, costs and other expenses. This choice of
jurisdiction provision does not prevent Microsoft from seeking injunctive relief
with respect to a violation of intellectual property rights or confidentiality
obligations in any appropriate jurisdiction.

     12.2 NOTICES; REQUESTS. All notices and requests in connection with this
Agreement shall be deemed given as of the day they are (i) deposited in the U.S.
mails, postage prepaid, certified or registered, return receipt requested; or
(ii) sent by overnight courier, charges prepaid, with a confirming fax; and
addressed as follows:

                 Licensee:                Acclaim Entertainment, Inc.
                                          One Acclaim Plaza
                                          Glen Cove, NY 11542-2708

                 Attention:               Bernard J. Fischbach
                 Fax:                     516-656-2016
                 Phone:                   516-656-2210

                 Microsoft:               MICROSOFT CORPORATION
                                          One Microsoft Way
                                          Redmond, WA  98052-6399

                                       17
<PAGE>

                 Attention:               Ms. Kelly Tofte

                 With a cc to:            MICROSOFT CORPORATION
                                          One Microsoft Way
                                          Redmond, WA 98052-6399

                 Attention:               Law & Corporate Affairs Development
                                          Product Development & Marketing
                 Fax:                     (425) 936-7329

or to such other address as the party to receive the notice or request so
designates by written notice to the other.

     12.3 ASSIGNMENT. Licensee may not assign this Agreement or any portion
thereof, to any third party unless Microsoft expressly consents to such
assignment in writing. Microsoft will have the right to assign this Agreement
and/or any portion thereof as Microsoft may deem appropriate for the purposes of
this Agreement, a merger, consolidation, or other corporate reorganization, or a
transfer or sale of a controlling interest in a party's stock, or of all or
substantially all of its assets shall be deemed to be an assignment. This
Agreement will inure to the benefit of and be binding upon the parties, their
successors, administrators, heirs, and permitted assigns.

     12.4 NO PARTNERSHIP. Microsoft and Licensee are entering into a license
pursuant to this Agreement and nothing in this Agreement shall be construed as
creating an employer-employee relationship, a partnership, or a joint venture
between the parties.

     12.5 SEVERABILITY. In the event that any provision of this Agreement is
found invalid or unenforceable pursuant to judicial decree or decision, the
remainder of this Agreement shall remain valid and enforceable according to its
terms. The parties intend that the provisions of this Agreement be enforced to
the fullest extent permitted by applicable law. Accordingly, the parties agree
that if any provisions are deemed not enforceable, they shall be deemed modified
to the extent necessary to make them enforceable.

     12.6 INJUNCTIVE RELIEF. The parties agree that Licensee's threatened or
actual unauthorized use of the Licensed Trademarks whether in whole or in part,
may result in immediate and irreparable damage to Microsoft for which there is
no adequate remedy at law, and that either party's threatened or actual breach
of the confidentiality provisions may cause like damage to the nonbreaching
party, and in such event the nonbreaching party shall be entitled to appropriate
injunctive relief, without the necessity of posting bond or other security.

     12.7 ENTIRE AGREEMENT; MODIFICATION; NO OFFER. The parties hereto agree
that this Agreement (including all Exhibits hereto, and the Microsoft
Non-Disclosure Agreement to the extent incorporated herein) and the Xbox Guide
(as applicable from time to time) constitute the entire agreement between the
parties with respect to the subject matter hereof and merges all prior and
contemporaneous communications. It shall not be modified except by a

                                       18
<PAGE>

written agreement dated subsequent hereto signed on behalf of Licensee and
Microsoft by their duly authorized representatives. Neither this Agreement nor
any written or oral statements related hereto constitute an offer, and this
Agreement shall not be legally binding until executed by both parties hereto.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as of the Effective Date on the dates indicated below.

MICROSOFT CORPORATION

/s/                                      /s/
---------------------------------        ---------------------------------------
By (sign)                                By (sign)

J. Allard                                Gregory Fischbach
---------------------------------        ---------------------------------------
Name (Print)                             Name (Print)

General Manager                          President and Chief Executive Officer
---------------------------------        ---------------------------------------
Title                                    Title

October 26, 2000                         October 26, 2000
---------------------------------        ---------------------------------------
Date                                     Date

                                       19
<PAGE>

                                   EXHIBIT A-1
                          DESCRIPTION OF SOFTWARE TITLE

<PAGE>

                                    EXHIBIT B
                               LICENSED TRADEMARKS

                            [insert Xbox design here]

<PAGE>

                                    EXHIBIT B
                               LICENSED TRADEMARKS

The following guidelines apply whenever Licensee places a copy of any Licensed
Trademark on the Software Title, or related collateral materials.

     o   Licensee may use the Licensed Trademarks solely on the retail box,
         documentation, and Art & Marketing Materials for the Software Title,
         and in no other manner.

     o   Licensee's name, logo, or trademark must appear on any materials where
         the Licensed Trademarks are used, and must be larger and more prominent
         that the Licensed Trademarks.

     o   The Licensed Trademarks may not be used in any manner that expresses or
         might imply Microsoft's affiliation, sponsorship, endorsement,
         certification, or approval, other than as contemplated by this
         Agreement.

     o   The Licensed Trademarks may not be included in any non-Microsoft trade
         name, business name, domain name, product or service name, logo, trade
         dress, design, slogan, or other trademark.

     o   Licensee may use the Licensed Trademarks only as provided by Microsoft
         electronically or in hard copy form. Except for size subject to the
         restrictions herein, the Licensed Trademarks may not be altered in any
         manner, including proportions, colors, elements, etc., or animated,
         morphed, or otherwise distorted in perspective or dimensional
         appearance.

     o   The Licensed Trademarks may not be combined with any other symbols,
         including words, logos, icons, graphics, photos, slogans, numbers, or
         other design elements.

     o   The Licensed Trademarks (including but not limited to Microsoft's
         logos, logotypes, trade dress, and other elements of product packaging
         and web sites) may not be initiated.

     o   The Licensed Trademarks may not be used as a design feature in any
         materials.

     o   The Licensed Trademarks must stand alone. A minimum amount of empty
         space must surround the Licensed Trademarks separating it from any
         other object, such as type, photography, borders, edges, and so on. The
         required area of empty space around the Licensed Trademarks must be
         1/2x, where x equals the height of the Licensed Trademarks.

     o   Each use of the Licensed Trademarks must include the notice: "Xbox is a
         trademark of Microsoft Corporation in the United States and/or other
         countries and is used under license from Microsoft".

<PAGE>

ADDITIONAL GUIDELINES FOR PROPER USE OF THE "XBOX" WORD MARK:

     o   Use the trademark symbol ("(TM)") at the upper right corner or baseline
         immediately following the name "Xbox". This symbol should be used at
         the first or most prominent mention. Please be sure to spell Xbox as
         one word, with no hyphen and with no space between "X" and "box".

     o   Include the following notice on materials referencing Xbox:

         "Xbox is a trademark of Microsoft Corporation."

     o   Trademarks identify a company's goods or services. Xbox is not a
         generic thing, but rather a brand of game system from Microsoft. A
         trademark is a proper adjective that modifies the generic name or
         descriptor of a product or service. The descriptor for Xbox is a "game
         system," i.e., "Xbox(TM) game system." Use the descriptor immediately
         after mention of "Xbox". You should not combine the Xbox trademark with
         an improper generic name or descriptor. For example, game programs
         designed to run on the Xbox game system are not "Xbox games," but
         rather "games for the Xbox system" or "Xbox certified games."

     o   The Xbox trademark may never be abbreviated. Do not use "X" by itself
         to represent "Xbox."

                                       23

<PAGE>

                                    EXHIBIT D
                            NON-DISCLOSURE AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00032-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00032-of-00352.parquet"}]]