Document:

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                                                                    EXHIBIT 10.1

                              AMENDMENT NO. 1 TO
                             SUCCESSION AGREEMENT

     This AMENDMENT NO. 1 TO SUCCESSION AGREEMENT (this "Amendment") is made as
                                                         ---------
of April 15, 2000 by and between Vincent J. Bitetti ("Bitetti") and SOUND SOURCE
                                                      -------
INTERACTIVE, INC., a Delaware corporation ("SSI/DE"), and SOUND SOURCE
                                            ------
INTERACTIVE, INC, a California corporation ("SSI/CA")(SSI/DE and SSI/CA
                                             ------
collectively, "Sound Source").
               ------------

                                R E C I T A L S

     A.  Bitetti is employed by Sound Source as its Chairman of the Board and
Chief Executive Officer pursuant to that certain Succession Agreement dated as
of November 12, 1999 (as amended and restated, the "Succession Agreement").
                                                    --------------------

     B.  Since entering into the Succession Agreement, Bitetti has guided Sound
Source into an expanded strategic relationship with TDK Recording Media Europe
S.A., and overseen the development of several new product offerings intended for
use on the Sony Playstation product.

     C.  Sound Source and Bitetti have mutually agreed to amend the Succession
Agreement to provide for Bitetti's continued management services to Sound
Source, subject to the terms and conditions set forth herein.

                               A G R E E M E N T

     In consideration of the mutual covenants and agreements contained herein
and other valuable consideration, the parties hereto hereby agree as follows:

     1.  Paragraph 1 of the Succession Agreement is hereby amended by
substituting "December 31, 2002" in place of "December 31, 2000" in the first
sentence thereof.

     2.  Paragraph 5 of the Succession Agreement is hereby amended by
substituting "December 31, 2002" in place of "December 31, 2000" in subparagraph
(a) thereof.

     3.  Paragraph 5 of the Succession Agreement is further amended by adding a
new subparagraph (k) and (l) thereto as follows:

         (k) to pay Bitetti a bonus of $35,000 for each calendar quarter,
     commencing with the quarter ending June 30, 2000, during which Sound Source
     realizes a profit; and

         (l) to pay Bitetti additional compensation of $100,000 during the
     remainder of calendar year 2000, such amount to be paid ratably over the
     remainder of calendar year 2000 commencing with the first regular pay
     period after the date hereof (provided that such additional amount shall
     not be payable in calendar year 2001 or 2002).
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     4.  Paragraph 5 of the Succession Agreement is further amended by deleting
the word "and" at the end of subparagraph (i) thereof, and substituting a ";"
for the "." at the end of subparagraph (j) thereof.

     5.  The Succession Agreement shall remain in full force and effect in
accordance with its terms, except as expressly set forth above.

     IN WITNESS WHEREOF, the undersigned have executed this Amendment No. 1 to
Separation Agreement on the date set forth herein.

                                 Sound Source Interactive, Inc.,
                                 a Delaware corporation

                                 By:  ____________________________
                                      Eugene Code, Secretary

                                 Sound Source Interactive, Inc.
                                 a California corporation

                                 By:  ____________________________
                                      Eugene Code, Secretary

                                 _________________________________
                                 Vincent J. Bitetti<PAGE>

                                                                    EXHIBIT 10.2

                         SOUND SOURCE INTERACTIVE, INC

                                       &

                        TDK RECORDING MEDIA EUROPE S.A.

                         INTERACTIVE COMPUTER SOFTWARE
                         -----------------------------

                   CHILDREN EDUCATION & EDUTAINMENT SOFTWARE
                   -----------------------------------------

This Agreement is made and entered into as of this twenty-eight day of February,
2000, is by and between:

Sound Source Interactive, Incorporated, a California Corporation, and carrying
on business at:

26115 Mureau Road, Suite B
Calabasas, CA 91302-3126
United States of America

Hereinafter referred as "SSII"

And

TDK Recording Media Europe S.A., a Luxembourg Corporation, and carrying on
business at:

Z.I. Bommelscheuer
L-4902 Bascharage
Grand Duchy of Luxembourg

Hereinafter referred as "TDK"

WHEREAS:

SSII is engaged in licensing, creating, developing and marketing computer
software products (hereinafter referred as "Articles"). SSII is or may become
the sole and exclusive owner and/or licensee of Articles.

SSII proposes to grant to TDK the exclusive license for the existing or coming
Articles in the purpose to republish, market, distribute and sell Localized
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Language Versions of the Articles within the countries (hereinafter referred as
the "Territory") as set forth in Schedule A, which is made a part hereof, and in
accordance with conditions as set forth herein and attached hereto.

NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, TDK and SSII agree as follows:

1.     GRANT OF RIGHTS/SERVICES

1.1    SSII hereby grants to TDK and TDK hereby accepts the exclusive rights to
       republish, adapt and amend the Articles for the purpose of creating
       Localized Language Versions of the Articles and to republish,
       manufacture, market, distribute, display, sell the Localized Language
       Versions throughout the Territory (as set forth in Schedule A). The
       exclusive right shall apply to all existing or future titles of the
       Articles. However, both parties shall negotiate and co-operate in the
       selection of the most valuable titles of the Articles. The Articles,
       which have been chosen by the parties, shall be regarded as a constituent
       part of this Agreement and added by Addendum hereto.

1.2    SSII hereby grants to TDK and TDK hereby accepts the exclusive rights to
       republish, manufacture, distribute, display, and sell the Localized
       Language Versions of the Articles in all formats currently existing and
       new formats that may come into existence during the Term of this
       Agreement that are under license or may come under license by SSII,
       including, but not limited to the following:

       .  PC/Mac CD-ROM and DVD;
       .  Sony PlayStation 1;
       .  Sony PlayStation 2;
       .  Nintendo Game Boy Color;
       .  Nintendo Game Boy Advance;
       .  Nintendo Dolphin;
       .  Sega Dreamcast.

1.3    SSII shall not itself nor through agents or third parties knowingly
       publish, republish, manufacture, market, distribute, display, sell
       Localized Language Versions or American English language versions in the
       Territory while this Agreement is in force. TDK shall have the right to
       use, distribute or otherwise dispose of the American English Version or
       UK English Versions within the Territory. In no event shall TDK be
       permitted to sell, distribute or otherwise dispose of the Articles
       outside of the Territory. For the avoidance of doubt SSII hereby
       acknowledges that there is a so-called "grey market" in software and that
       the availability of Localized Language Versions produced by TDK outside
       the Territory will not, of itself, constitutes a breach of this
       Agreement.

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1.4    SSII shall not be liable to TDK for any loss or damage incurred as a
       result of any unauthorized republishing, manufacturing, marketing,
       distribution, displaying or of Articles in the Territory during the term
       of this Agreement.

1.5    SSII grants to TDK the right to make such adaptations (pending original
       licensor approval) to the Articles as are necessary to develop Localized
       Language Versions of them and allow TDK to exercise its rights under
       Article 1 and without prejudice to the generality of the foregoing the
       right to use discs, manuals, CD's and read only memories and the right to
       translate the Articles into any language approved by SSII as listed in
       and in accordance with Schedule A of this Agreement. Adaptations mean
       also the right for TDK to adapt the Articles by making such changes as
       TDK deems appropriate to bring the Articles in live with the specific
       cultural requirements of each country within the Territory. However, in
       exercising its rights herein, TDK is not authorized to make any change to
       the function or content (audio and/or visual) of the Articles without the
       written consent of SSII (such consent not to be unreasonably withheld)
       except for necessary adaptations required by each localized language. All
       approvals shall be deemed given unless TDK is notified to the contrary
       within twenty-one (21) calendar days of SSII receipt of localized
       adaptation requirements. Once given, approval shall be irrevocable.

1.6    SSII does not grant to TDK any rights under Article 1 to publish,
       republish, manufacture, market, distribute, sell, nor in any way use the
       Articles through time-sharing services or networks or rentals except on-
       line demos of products for promotional purposes as set forth in Article 7
       unless pre-approved by SSII.

1.7    For all titles of the Articles proposed by SSII to TDK, TDK is hereby
       granted a right of first refusal and shall have sixty (60) calendar days
       from receipt of a SSII Beta CD to exercise such right of first refusal.
       That period can be extended up to ninety (90) calendar days if requested
       in writing by TDK and if then agreed to in writing by SSII to accept such
       offer. Titles of the Articles accepted by TDK shall be regarded as a
       constituent part of this Agreement and added by Addendum hereto.

2.     TERM

2.1    This Agreement shall enter into force the date set forth on the front
       page and shall continue for a period of sixty (60) months. Ninety (90)
       days prior to the end of this initial period the parties may elect to
       renegotiate the term of this Agreement for another period of one year, or
       may elect to terminate this Agreement by sending a written notice of
       termination, unless sooner terminated pursuant to Clause 16.1 or 16.2.

2.2    It is understood by the parties that SSII's license agreements are not
       indefinite and that from time to time licenses expire and that in the
       event a license expires prior to the expiration date herein, all

                                     Page 3
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       terms and conditions of the original licensor will be adhered to.
       Notwithstanding, any license SSII and TDK mutually agree is beneficial
       beyond the term will be negotiated with the original licensor to obtain a
       renewal or extension

2.3    However, SSII hereby undertakes to provide TDK with a copy of its license
       agreements with original licensors in the purpose for TDK to be aware of
       the expiry dates of licenses.

2.4    Both parties shall use their best efforts to reach a mutual agreement on
       any disputes, controversies or differences which may arise between the
       parties, out of or in connection with this Agreement.

3.     LOCALISATION KIT & TECHNICAL ASSISTANCE

3.1    SSII shall forthwith upon execution of this Agreement furnish TDK with
       two Localization Kit of each agreed Article and reproducible copies of
       all available file maintenance documentation, drawings, data, upgrade and
       "bug" lists that are necessary to enable TDK to republish, manufacture,
       market, distribute, sell and support the Articles. Each Localization Kit
       delivered to TDK shall comply with the checklist mentioned in Schedule B
       "Localization Kit & Technical Information" attached hereto.

3.2    SSII shall keep TDK fully informed of and issue TDK with any changes,
       additions or modifications to the master disk and to such documentation,
       drawings, data upgrade and "bug" lists that have affect on marketing,
       operations, performance, cost or support by furnishing TDK with one
       reproducible copy of the modified master disk, within a fortnight (14
       days) of release of such revisions by SSII.

3.3    SSII shall use its best endeavor to assist TDK in the management and
       administration of all phases of localization integration when requested
       by TDK. SSII agrees to provide quality control of localized product for
       TDK with master licensors and technical assistance and expertise to
       authorized TDK localization developers throughout the world.

4.     CONSIDERATION AND ROYALTY

4.1    In Consideration for the Grant of Rights/Services (Section 1) and Term
       (section 2), TDK agrees to pay a one time signing fee of $1 million USD
       upon execution of this agreement. It is mutually understood that this one
       time signing fee shall be used by SSII primarily for the development of
       future titles.

4.2    TDK hereby agrees to pay a royalty fee for the Localized Language
       Versions of the Articles sold by TDK within the Territory. Since no
       titles and no formats have been decided for the Articles, only the
       general terms will be defined hereinafter.

                                     Page 4
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        The royalty payment shall be based on total invoiced sales less return.
        For the avoidance of doubt no royalties shall be payable on review,
        advertising, samples or other promotional copies. Except as otherwise
        set forth herein, royalties shall be due and payable within forty-five
        (45) days of the close of each calendar quarter.

        In consideration of the above, TDK agrees to pay to SSII the following
        royalty advance amount which shall be recoupable against royalties paid
        to SSII:

        (a)  Five million United States dollars ($5,000,000) as a minimum title
             guarantees for SSII over the Term of the Agreement;

        (b)  Title delivery and guarantees/advances per product shall follow the
             basic guidelines set forth herein but will be subject to mutual
             negotiation:

                .  PC/MAC CD ROMs
                $100,000- to $150,000- range per title
                $1.50 to $2.50 Republishing Fee per title

                .  Sony PlayStation 1
                $450,000- to $500,000- range per title
                $1.50 - $2.50 Republishing Fee per title

                .  Sony PlayStation 2
                $1,000,000- to $1,700,000- range per title
                $1.00 - $2.00 Republishing Fee per title

                .  Nintendo Color Game Boy
                $50,000- to $65,000- range per title
                $1.50 - $2.50 Republishing Fee per title

                .  Additional Formats  (Advances. Republishing Fees and
                   Schedules)

                Nintendo Dolphin, Sega Dreamcast, and all other formats that
                exist now and / or may be introduced during the term of this
                agreement have to be defined and negotiated in good faith by the
                parties.

                Exact titles of the Articles, amounts and payment schedules will
                be mutually determined by the parties and defined in Addendum,
                such Addendum shall be regarded as a constituent part of this
                Agreement.

                It is also understood by the parties that so called "original"
                titles and characters may require higher development costs than
                contemplated here and that the parties will work in good faith
                on a case by case basis to determine costs and advances on such
                titles.

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4.3    SSII and TDK acknowledge that the minimum royalty advance amount of five
       million United States dollars ($5,000,000) mentioned in Clause 4.1.(b)
       shall represent a cumulated royalty advance amount of titles (reported on
       a per product basis) of the Articles which are expected to be selected
       during the Term of this Agreement. It means that TDK has no obligation to
       pay the $5,000,000 in case that (i) the cumulated royalty advance amount
       of titles selected during the Term of this Agreement does not match
       $5,000,000 or (ii) due to a disagreement on the conditions which create a
       discrepancy between the total royalty advance amount and the $5,000,000.

4.4    Within thirty (30) days after the 31/st/ March, the 30/th/ June, the
       30/th/ September and the 31/st/ December of each year during the period
       this Agreement shall be in force and effect, TDK hereby undertakes to
       submit to SSII, even in case of no sales, a statement in writing, setting
       forth with respect to the preceding quarterly period:

       (a)  the quantities of Articles manufactured by TDK;
       (b)  the quantities of Articles sold country by country, specifying the
            quantities for each type of Articles as referred in the Addendum;
       (c)  The royalty amount of each type of said Articles sold due to SSII.

4.5    In case of expiration or termination of this Agreement, all Articles
       manufactured prior but remaining in stock with TDK at the date of
       expiration or termination can be sold, distributed, used or disposed by
       TDK as set forth in Clause 16.6. TDK shall respect the reporting
       obligation as set forth in Clause 4.4.

4.6    All payments to SSII referred to in this Agreement shall be effected by
       wire transfer in US dollar to Sound Source Interactive, INC., account
       number:

WELL FARGO BANK, 8812 CORBIN AVENUE,
NORTHRIDGE, CALIFORNIA 91324, USA

Name of Account: Sound Source Interactive, Inc., Business Checking Acct.

Account n(Degree): 0747-563716    ABA Routing # 121-000248

4.7    All stamp duties, taxes and other similar levies originating from or in
       connection with the execution of this Agreement under Luxembourg law
       shall be borne by TDK. However, in the event that the government of a
       country imposes any income taxes on payments hereunder by TDK to SSII and
       requires TDK to withhold such tax from such payments, TDK may deduct such
       tax from such payments. In such event, TDK shall promptly furnish SSII
       with tax receipts issued by appropriate tax authorities so as to enable
       SSII to support a claim for credit against income taxes which may be
       payable by SSII in United States of America.

                                     Page 6
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4.8    In order that the royalties and reports provided for in article 4 may be
       verified, TDK agrees to ensure that full, complete and accurate books and
       records shall be kept covering all sales or other disposals of Articles
       by TDK, for a period of two (2) years following each quarterly report.

4.9    It is agreed that the books and records of TDK may be audited from time
       to time, but not more than once in each calendar year, by an independent
       certified public accountant appointed by SSII and reasonably acceptable
       to TDK, to the extend necessary to verify the accuracy of the
       aforementioned statements and payments. Such inspection shall be
       completed at SSII's own expense.

5.     INDEMNIFICATION

5.1    SSII hereby indemnifies TDK and shall hold it harmless from any loss,
       liability, damage, cost or expense arising out of any claims or suits
       which may be brought or made against TDK by reason of the breach by SSII
       of the warranties, intellectual property rights or representations as set
       forth.

5.2    TDK hereby indemnifies and agrees to hold SSII and its agents, servants,
       employees, officers and directors harmless from any loss, liability,
       damage, cost or expense arising out of any claims or suits which may be
       made against SSII by reason of or alleging any unauthorised or infringing
       use by TDK of any patent, process, trade secret, copyright or other
       similar property in connection with the Articles or the Trademarks
       covered by this Agreement or by reason of any alleged defects (design,
       manufacturing, handling or other) of the Articles manufactured by TDK
       other than as a result of any breach of this Agreement by SSII.

6.     APPROVAL / QUALITY / SAMPLES

6.1    TDK agrees that the Articles as well as all packaging, labels, press
       releases, advertising, promotion display or other material prepared in
       connection with the Articles ("Collateral Materials"), shall be of a
       similar standard and quality to that of the Articles delivered to TDK by
       SSII and shall ensure that all Articles and the distribution thereof,
       comply with all applicable laws throughout the Territory.

6.2    TDK will send the golden masters for the Localized Language Versions (the
       "Golden Masters") to SSII in a timely fashion to permit SSII to complete
       the acceptance described in this Article 6.2 prior to the initial
       publication of the localized language version. Acceptance shall be deemed
       given unless TDK is notified to the contrary within twenty-one (21)
       calendar days of SSII's receipt of Golden Masters. The Golden Masters
       will be deemed acceptable when (i) they perform at a level of performance
       similar than that of the SSII title; and (ii) the changes in the Articles
       have been made in accordance with the requirements mentioned in Article
       1. In

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       addition to the Golden Masters, TDK will send samples of printed
       documentation, packaging to SSII for approval in a timely fashion to
       permit SSII to review such materials such acceptance not to be
       unreasonably withheld. Acceptance shall be deemed given unless TDK is
       notified to the contrary within twenty-one (21) calendar days of SSII's
       receipt of such materials. Once given, approval shall be irrevocable. All
       such material submitted by TDK to SSII shall be at TDK's expense.

6.3    TDK shall supply SSII with twenty-five (25) samples of each Article in
       each localized language produced, at the time of first distribution. A
       Republishing Fee shall not be payable on such samples.

6.4    SSII may purchase from TDK localised language versions of Articles as
       authorised and produced hereunder at a reasonable price (such price shall
       include costs, sales expense and a reasonable margin) for direct sale
       outside the Territory. The License Fee shall not be payable on such
       purchases.

7.     ADVERTISING AND PROMOTIONAL ACTIVITIES

7.1    Advertising

TDK shall be entitled for the term of this Agreement to realise advertising
campaigns of the Articles by printed media, radio and TV advertising throughout
the Territory.

TDK has the right to use free of charge SSII's name, image, likeness, software
characters, software animations and other elements of the Articles for printed
media, on-line, radio and TV advertising throughout the Territory.

TDK shall also be entitled to establish an Internet site (or create a page(s) in
connection with TDK's Internet site) subject in all respects to approval in
accordance with Clause 7.4 below, containing information and advertising related
to the Articles.

7.2    Promotional Activities

TDK shall be entitled for the term of this Agreement to create marketing
communication material and Press release to promote the Software throughout the
Territory.

TDK shall be entitled to use, at its own expense, SSII's name, image, likeness,
software characters, software animations and other elements of the Articles for
production of promotional items like posters, stickers, header cards, leaflets,
catalogues, demos, and any other promotional item that TDK deems necessary for
promotional activities.

TDK shall also be entitled to use software characters, software animations,
demos and other elements of the software on TDK products in the purpose to
promote the Articles.

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7.3    Material

SSII will provide TDK, free of charge, with sufficient existing photographs,
logos, software character pictures and software animations and other elements of
the Articles for the purpose contemplated in clause 7.1 and 7.2. This material
will be delivered to TDK forthwith upon delivery of the Localisation Kit.

SSII will provide TDK, free of charge, with necessary guidelines on material
delivered to TDK in the purposes to allow TDK an appropriate usage of the
material.

7.4    Approval

All material produced by TDK shall be submitted to SSII's prior approval. All
approvals shall be deemed given unless Licensee is notified to the contrary
within twenty-one (21) calendar days of Licensor's receipt of material. In the
event that any request for approval is denied, Licensor shall give its reasons
therefore and suggest how to alter same to make it acceptable. Once given,
approval shall be irrevocable.

8.     COPYRIGHT AND TRADEMARK

8.1    All ownership of copyrights and trademarks in Articles republished
       hereunder, as well as all artwork, packaging, copy, literary text,
       advertising material of any sort other than in the product of the
       localisation development carried out by TDK, shall be in such names and
       all such items shall bear copyright and trademark notices and any other
       legal notice as SSII may reasonably direct.

8.2    TDK shall furnish all applicable notices and markings as appropriate and
       as otherwise required by local governments within the Territory.

9.     RESERVATION OF RIGHTS

9.1    Subject to SSII's ownership of the rights to the Articles as set forth
       above, TDK shall own all right, title and interest and intellectual
       property rights (except SSII's trademarks as set forth in Clause 9.2),
       including without limitation all copyrights, in the Localised Language
       Versions. It being understood and agreed that TDK may not make any use
       whatsoever of the Localised Language Versions, including without
       limitation the production, marketing and distribution of such Localised
       Language Versions after the expiration or termination of this Agreement
       unless otherwise specifically provided herein. After the expiration or
       termination of this Agreement all rights, title, interest, intellectual
       property rights and copyrights in the Localised Language Versions shall
       remain TDK's property. TDK may grant SSII the right to use all rights,
       titles, interest, intellectual property rights and copyrights in the
       Localised Language Versions under license agreement.

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9.2   TDK acknowledges that the right to republish as granted herein, does not
      include any right, title, or interest in or to the Proprietary Subject
      Matter nor to any copyrights, patents, and/or trademarks therein or
      associated therewith other than any copyright in the product of the
      localization development carried out by TDK.

9.3   TDK acknowledges that this Agreement relates solely to the Proprietary
      Subject Matter. TDK is not, by virtue of this Agreement acquiring any
      right whatsoever in any motion picture or television production or other
      endeavor which is based upon, derivative of, or otherwise related to the
      Proprietary Subject Matter, including without limitation, remakes,
      sequels, sound recordings, publications, or copyrights and/or trademarks
      in the Proprietary Subject Matter.

9.4   With respect to the Proprietary Subject Matter, SSII reserves unto itself
      and/or its designees the right to manufacture, sell, advertise, promote,
      display and otherwise exploit software product similar and/or identical to
      the Articles outside Territory.

10.   UNDERTAKINGS BY SSII

10.1  SSII undertakes to facilitate the introduction of TDK to the Hollywood
      Studios and Publishing content owners as well as Licensing Divisions, Home
      Video Divisions, Theatrical and Publishing units as applicable.

      Content Owners include but are not limited to: Warner Bros., Universal,
      Harvey Entertainment, Jim Henson Productions, Viacom/Paramount, Random
      House, Candlewick Press, United Media, MGM, Fox, Saban, and others as
      applicable.

10.2  SSII shall respond to requests from TDK for end user software support in
      accordance with the level of support specified in Schedule C as attached
      hereto and incorporated herein. For such purposes SSII shall employ and
      maintain employment of suitably qualified personnel (English speaking
      only) to operate an efficient support via e-mail or Internet.

10.3  SSII shall prepare, compile, maintain and update the master disks and
      related documentation at its own cost to enable TDK to satisfactorily
      develop Localized Language Versions and to market, distribute, sell and/or
      otherwise support the Articles in accordance with the terms of this
      Agreement and to provide TDK with such documentation or sufficient access
      thereto or to the appropriately qualified personnel for such purposes.

10.4  SSII shall satisfactorily resolve any defect in the Article and for such
      purpose shall forthwith take all such action and/or make available all
      such facilities to rectify the defect. This only extends to operation on
      systems as used in the USA. Any factors unique to other nations is the
      responsibility of TDK to adjust or compensate for.

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10.5  SSII shall provide TDK at mutually agreed intervals or at such reasonable
      times or at the request of TDK with information concerning Articles,
      enhancements, current developments, support and any changes relating to
      ultimate users, customers and activities of competitors and such other
      matters and information in any way relating to the constructive
      performance of this Agreement.

10.6  SSII warrants to TDK that each master disk of the software issued to TDK
      upon execution hereof or from time to time hereafter shall be free from
      such faults, defects, "bugs" or inadequacies as would restrict TDK from
      marketing and/or supporting the Articles.

10.7  SSII agrees that within a period of five (5) working days from
      notification of the same and in any other case, as soon as possible, to
      rectify or replace free of charge a Master Disk of an Article found
      faulty, defective or inadequate, upon receipt of TDK, and shall forthwith
      replace each such Master Disk of the Article with one incorporating
      appropriate corrections.

11.   MUTUAL UNDERTAKINGS OF SSII AND TDK

It is mutually understood and agreed that neither SSII nor TDK shall incur any
liability on behalf of the other or in any way to pledge to the others credit or
accept any order or make any contract binding upon the other without the other
without obtaining prior written consent and that nothing in this Agreement
should be interpreted as creating a partnership between the parties.

12.   UNDERTAKINGS BY TDK

12.1  TDK agrees to use its reasonable endeavors and optimum abilities in its
      endeavors to republish, manufacture, market, distribute and sell copies of
      the Articles and generally market the Articles in a form which at least
      meets the same standards of quality as that established by SSII in the
      original SSII released product.

12.2  TDK agrees to use its reasonable endeavors to support the Articles in good
      operational order to such standards of quality as are generally accepted
      throughout the PC software application industry for applications of
      similar nature and quality to the Articles.

12.3  TDK agrees not to market or deal with the Articles in any way with any
      party so as to bring the Article or its name nor SSII's name into
      disrepute or in which would otherwise affect the marketability of the
      Article.

12.4  TDK agrees to use its reasonable endeavors to republish, manufacture,
      distribute and sell the Articles throughout the Territory provided always
      that, in the exercise of TDK's reasonable

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      judgement, it makes good commercial sense to do so; specifically, it
      shall:

      (a)  Republish, manufacture, distribute and sell Articles in such price
           and quality brackets as are required to meet competition by reputable
           manufacturers of similar articles;
      (b)  Make and maintain adequate arrangements for the distribution of the
           Articles throughout the Territory;
      (c)  Will not knowingly deliver or sell Articles outside the Territory.

13.   LIABILITY

SSII shall not be liable to TDK or any other person for loss or damage arising
directly in connection with any adaptation to the Articles developed by TDK or
any modification, variation, enhancement or upgrade thereof, and any
documentation, manual or training relating specifically thereof.

14.   COPYRIGHT

SSII agrees to protect and save harmless and defend at its own expense (i) from
and against any and all claims of infringement of copyrights, patents,
trademarks, industrial designs or other property rights issued under the laws of
any country affecting the Article; (ii) from and against any and all claims of
infringement of copyrights, patents, trademarks, industrial designs or other
property rights hold by third parties.

15.   CONFIDENTIAL INFORMATION

15.1  The parties have imparted and may from time to time impart to the other
      certain confidential information relating to the Articles, successor
      Articles or other software, marketing or support thereof including
      specifications and copyright manual thereof.

15.2  Each party hereby agrees that it will use such confidential information
      solely for the purposes of this Agreement and that it shall not disclose,
      whether directly or indirectly, to any third party such information other
      than as required to carry out the purposes of this Agreement.

16.   EXPIRATION OR TERMINATION OF AGREEMENT

16.1  SSII may terminate this Agreement with immediate effect by registered mail
      notice in any of the following circumstances:

      (a)  TDK defaults in due and punctual payment of any amount due to SSII
           pursuant to this Agreement for more than thirty (30) days after
           written notice of summons to pay from SSII;
      (b)  TDK is in breach of any other provision contained in this Agreement
           and such breach has not been remedied within thirty (30) days from
           SSII written notice;

                                    Page 12
<PAGE>

      (c)  TDK is declared bankrupt or put under receivership;
      (d)  TDK or any of its employees deliberately make false statements in
           reports.
      (e)  If employees, officers or directors of TDK commit or are under formal
           investigation for allegedly having committed criminal acts or other
           acts of moral turpitude which could damage SSII's reputation.

16.2  TDK may terminate this Agreement with immediate effect by registered mail
      notice in any of the following circumstances:

      (a)  SSII is in breach of any other provision contained in this Agreement
           and such breach has not been remedied within thirty (30) days from
           TDK written notice; especially for the breach of SSII's obligation to
           license all the rights to TDK;
      (b)  SSII is declared bankrupt or put under receivership;
      (c)  If any dispute arises between any of the persons directly or
           indirectly interested in the management or shareholdership of SSII's
           business which affects the business relationship between TDK and
           SSII;
      (d)  If employees, officers or directors of SSII commit or are under
           formal investigation for allegedly having committed criminal acts or
           other acts of moral turpitude which could damage TDK's reputation.

16.3  In the event SSII commits a material breach of this Agreement, SSII shall
      reimburse TDK (i) 50% of the Localization costs expended to date of
      termination; (ii) 100% of the advance payment if termination date is
      within the Term of this Agreement. The remedies set out in this section
      16.3 are in addition to and not instead of remedies provided by law.

16.4  In the event TDK does not commence the distribution or the sale of one
      licensed Article or one licensed format within the Territory twelve (12)
      months after the delivery of the Localization Kit, TDK grants SSII the
      right to republish, manufacture, market, distribute, and sell the Article
      or the format that TDK failed to distribute in the Territory within the
      period mentioned above.

16.5  Upon termination pursuant to Article 16.1, TDK shall immediately cease any
      further license, sale, distribution, use or disposal of any Articles, if
      applicable, and TDK may at its discretion (i) return all units in TDK's
      possession or control to SSII or destroy such units, in which case no
      royalty for said returned units will be due and payable, or (ii) retain
      said units for sale or distribution and pay the royalty due as if all such
      units had been sold during the calendar quarter prior to the quarter in
      which SSII delivered notice of termination.

16.6  Upon termination pursuant to Article 16.2, TDK may at its discretion sell,
      distribute, use or otherwise dispose of all units already manufactured and
      pay the royalty due pursuant to this Agreement. Under no circumstances
      shall either party be liable to the other for incidental or consequential
      damages, whether

                                    Page 13
<PAGE>

      foreseeable or not, including lost profits, direct or indirect damages,
      costs of goods, promotion, advertising or any other cost, charge or
      damage.

17.   WARRANTIES:

17.1  SSII represents, warrants and covenants to TDK as follows:

      (a)  SSII has the full right and legal authority to enter into and fully
           perform this Agreement in accordance with its terms;
      (b)  SSII is fully able to grant TDK the rights it grants herein and
           represents that these rights are granted free and clear of any and
           all claims and encumbrances and that the exercise by TDK of such
           rights will not infringe the rights of any third party;
      (c)  SSII declares that it is authorised to grant the rights of use
           concerning the Articles of this Agreement and attached Addendum and
           which are the subject of this Agreement and it vouches for the TDK's
           right to the same.
      (d)  SSII guarantees that referring to the production, utilisation and
           exploitation of the Articles, all rights of manufacture and use
           required for the exploitation of the Articles as contemplated in this
           Agreement and attached Addendum have been duly acquired and do not
           infringe upon any personal or other rights of software utilisation by
           a third party. SSII must hold TDK harmless in this matter from and
           against claims made by third parties related to third parties holding
           rights on such Articles .
      (e)  For the avoidance of doubt all rights wholly controlled by SSII shall
           be licensed to TDK for use in accordance with this Agreement without
           charge.
      (f)  SSII declares and warrants that the rights hereby granted have
           neither been granted in whole nor in part to a third party, that a
           third party neither has the right to exercise them nor has been
           entrusted with the care of such rights and that SSII will not seek to
           exploit such rights itself. SSII indemnifies TDK as well as any other
           party who may obtain the rights granted in this Agreement from claims
           of a third party, which may be imposed in connection with the
           utilisation of rights granted in this Agreement.
      (g)  This Agreement when executed and delivered by SSII and TDK will be
           legal, valid and binding obligations enforceable against SSII in
           accordance with its terms, except to the extent that enforcement
           thereof may be limited by bankruptcy, insolvency or other similar
           laws affecting creditors' rights generally;
      (h)  The execution, delivery and performances of this Agreement by SSII
           does not and will not violate or cause a breach of any other
           agreements or obligations to which it is a party or by which it is
           bound, and no approval or other action by any governmental authority
           or agency is required in connection herewith;
      (i)  Each of the foregoing representations, warranties and covenants shall
           be true at all times. SSII acknowledges that each of such
           representations, warranties and covenants are

                                    Page 14
<PAGE>

           deemed to be material and have been relied upon by TDK
           notwithstanding any investigation made by TDK;
      (j)  SSII has not entered and will not enter into any agreement,
           commitment or other arrangement which affects or diminishes any of
           the rights herein granted to TDK.
      (k)  The SSII Localisation Kit will be free from faults, bugs or other
           defects and capable of performing in accordance with the requirements
           imposed on developers of games for all formats granted to TDK and, to
           the extend that TDK is granted the relevant rights.
      (l)  There is no litigation and SSII is not aware of any pending or
           threatened litigation in respect of the Articles.

17.2  TDK represents, warrants and covenants to SSII as follows:

      (a)  TDK has the full right and legal authority to enter into and fully
           perform this Agreement in accordance with its terms;

      (b)  This Agreement when executed and delivered by TDK and SSII will be
           legal, valid and binding obligations enforceable against TDK in
           accordance with its terms, except to the extent that enforcement
           thereof may be limited by bankruptcy, insolvency or other similar
           laws affecting creditors' rights generally;
      (c)  The execution, delivery and performances of this Agreement by TDK
           does not and will not violate or cause a breach of any other
           agreements or obligations to which it is a party or by which it is
           bound, and no approval or other action by any governmental authority
           or agency is required in connection herewith;
      (d)  Each of the foregoing representations, warranties and covenants shall
           be true at all times. TDK acknowledges that each of such
           representations, warranties and covenants are deemed to be material
           and have been relied upon by SSII notwithstanding any investigation
           made by SSII;
      (e)  TDK is not entitled to transfer sub-license or assign any rights
           granted in this Agreement to a third party without SSII's prior
           written consent (such consent not to be unreasonably withheld).

18.   SUCCESSORS AND ASSIGNS:

Neither party shall assign its rights and/or obligations under this Agreement
without the prior written approval of the other party (such approval not to be
unreasonably withheld). This Agreement and all of the terms and provisions
hereof will be binding upon, and will inure to the benefit of, the parties
hereto, and their respective successors and approved assigns.

19.   MISCELLANEOUS:

      (a)  Each of the individuals executing this Agreement certifies that he or
           she is duly authorised to do so.
      (b)  The rights and remedies set forth herein are intended to be
           cumulative, and the exercise of any one right or remedy by

                                    Page 15
<PAGE>

           either party shall not preclude or waive its exercise of any other
           right or remedies hereunder or pursuant to law.
      (c)  This Agreement may be executed in counterparts.

20.   FORCE MAJEURE

TDK shall be under no liability to SSII in any way whatsoever for destruction,
damage, delay or any other matters of the nature whatsoever arising out of war,
rebellion, civil commotion, strikes, lock-outs and individual disputes, fires,
explosion, earthquake, act of God, flood, drought or bad weather, the
unavailability of delivers or supplies or requisitioning or other constituted
body that could not have been reasonably foreseen by a reasonably prudent
business officer in the Territory. At any time following ninety (90) days after
commencement of a force majeure event, either may elect to terminate the term of
this Agreement pursuant to Clause 16.6.

21.   NOTICES

Any notice required or permitted under the terms of this Agreement or required
by statute, law or regulation shall (unless otherwise provided) be in writing
and shall be delivered in person, sent by registered mail or by DHL or Federal
Express, properly posted and fully pre-paid in an envelope properly addressed to
the address set out at the head of this Agreement or to such other address as
may from time to time be designated by notice hereunder. Any such notice shall
be in English language and shall be considered to have been given at the time
when actually delivered, or any event within fourteen (14) days after it was
mailed in the manner as herein provided.

22.   AGREEMENT

This Agreement supersedes any arrangements, understandings, promises or
agreements made or existing between the parties hereto prior to or
simultaneously with this Agreement and constitutes the entire understanding
between the parties hereto. Except as otherwise provided herein, no addition,
amendment to or modification of this Agreement shall be effective unless it is
in writing and signed by and on behalf of both.

23.   HEADINGS

The headings of the paragraphs of this Agreement are inserted for convenience of
reference only and are not intended to be part of or to affect the meaning or
interpretation of this Agreement.

24.   SEVERABILITY

In the event that any of these terms, conditions or provisions shall be
determined invalid, unlawful or unenforceable to any extent such term,
condition, or provision shall be severed from the remaining terms, conditions

                                    Page 16
<PAGE>

and provisions which shall continue to be valid to the fullest extent permitted
by law.

25.   LAW AND JURISDICTION:

25.1  This Agreement is governed by and construed in accordance with the laws of
      the Grand Duchy of Luxembourg.

25.2  Any dispute arising in connection with the conclusion, the validity, the
      interpretation or the performance of this Agreement shall be under the
      exclusive jurisdiction of the Courts of Luxembourg, Grand Duchy of
      Luxembourg.

IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed
the day and year as herein set forth at the effectivity date.

Sound Source Interactive, Inc.        TDK Recording Media Europe S.A.

  /s/ Mr. Vincent Bitetti               /s/ Masatoshi Shikanai
______________________________        _______________________________
Mr. Vincent Bitetti                   Masatoshi Shikanai
CEO                                   President

                                    Page 17
<PAGE>

SCHEDULE A:    "Language & Territory"
-----------

--------------------------------------------------------------------------------

LANGUAGE:
---------

Articles licensed and approved by SSII to be developed and manufactured by TDK
in the Localised Languages as set forth herein below ONLY, is made a part of and
is incorporated into the Agreement as follows:

                          French           German

                          Spanish          UK English

                          Italian          Swedish

                          Dutch            Danish

In case that SSII and TDK agree to introduce other languages in the Territory,
TDK is granted the right of first refusal and shall have sixty (60) days from
receipt of SSII proposal to exercise such right of first refusal. If TDK wants
to introduce other languages in the Territory, TDK and SSII will negotiate in
good faith the terms and conditions of the Agreement.
<PAGE>

--------------------------------------------------------------------------------

TERRITORY:
----------

SSII authorises the Localised Language version of Articles to be distributed for
sale by TDK in the following countries, which constitute the Territory as
referred to herein and is incorporated into and made part of the Agreement;

All countries except North America (United States and Canada).
<PAGE>

SCHEDULE B:    "Localization Kit & Technical Assistance"
-----------

--------------------------------------------------------------------------------

SSII will supply to TDK information on:

1.  Program files on disk;

    Where the files are to be found; menu files and control programs.

2.  Data files on disk;

    Where the files are to be found; their structure, e.g. records, field,
    characters (enough information to enable TDK to access the data).

3.  Interaction of program/data files.

4.  Utility programs/recovery programs to look at data files; for the
    reconstruction of data/records and executables.

          A.  Bug list on current release and updates;

          B.  Documentation;

          C.  Information on future plans/developement
<PAGE>

SCHEDULE C:    "Support Level"
-----------

--------------------------------------------------------------------------------

A.  Call SSII Control desk (0730 to 1700 M-F).

B.  Way Forward Technologies.

C.  Other.

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