Document:

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                                                                   EXHIBIT 10.14

tyco                                                       The Ludlow Company LP
-------------                                                          [address]
Healthcare

Ludlow

                          Memorandum of Understanding
                          ---------------------------

     Between Natus Medical Inc. of San Carlos California (Natus) and The Ludlow
             ---------------------------------------------------     ----------
Company LP of Chicopee Massachusetts (Ludlow).
---------------------------------------------

     Natus Medical Inc. and The Ludlow Company LP, the parties, desire to enter
into an agreement. Both parties expect to receive certain benefits from this
agreement and both parties accept obligations as part of this agreement. The
term of this agreement will be five years from date of acceptance by both
parties.

Ludlow agrees to do the following for the benefit of Natus:

1.   Supply "one piece molded Ear Couplers" and "Tab" style electrodes to Natus
     at pricing per letter from Paul Latka to Tom Waugh dated September 18,
     2000.

2.   Provide design input and manage the design and fabrication of production
     tooling at [***] expense for Natus designed injection molded Ear Coupler
     parts.

3.   Design and have constructed at [***] expense production equipment to
     manufacture finished Natus Ear Coupler assemblies packaged similar to the
     current "Colorado Pack."

4.   Demonstrate to Natus' satisfaction the ability to manufacture Ear Couplers
     at two Ludlow facilities.  One facility will be Ludlow's [***] plant which
     will be called the Primary Manufacturing Location.  An additional location
     will be chosen by Ludlow and will be referred to as the Secondary
     Manufacturing Location.

5.   Give a minimum of six months notice of intention to move manufacturing
     locations for Natus products.  In this case, manufacturing of Natus
     products will not cease at the original location until Natus validates and
     qualifies the new location.

6.   Warehouse Natus-owned finished goods Ear Coupler inventory at two
     locations, one being Ludlow's Huntington Beach facility.  If the alternate
     site is a Ludlow owned facility, there will be [***] to Natus for this
     service, otherwise Ludlow may [***] on its actual [***] to Natus.

7.   Provide Natus with a [***] for Ear Couplers and Electrodes that are used in
     conjunction with Ear Couplers, those costs that are under [***] for the
     term of this agreement. Ludlow may [***] on either increases or decreases
     on costs, such as [***], which are beyond [***]. In particular, [***] is
     under the control of Ludlow and only [***] changes will be [***]
     through.

8.   Share [***] with Natus as follows: If the [***] is the result of joint
     efforts by both Natus and Ludlow, each party will receive [***] of the
     [***]. If the [***] is achieved by actions of only [***], Ludlow will
     retain [***]% of the [***] and Natus will receive [***]% of the [***]. In
     the case of a proposed [***], Ludlow will reveal the [***] of the
     individual component under question but will not reveal the overall [***]
     of the product.

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[***] Confidential treatment requested pursuant to a request for confidential
      treatment filed with the Securities and Exchange Commission. Omitted
      portions have been filed separately with the Commission.
<PAGE>

Natus agrees to do the following for the benefit of Ludlow:

1.  Purchase a combination of foam and molded Ear Coupler/Electrode sets from
    Ludlow for the term of this agreement as outlined in the following table:

                                    Minimum Units Purchase
                         Year            Requirement
                       ---------    ----------------------
                       Year 2001            [***]
                       Year 2002            [***]
                       Year 2003            [***]
                       Year 2004            [***]
                       Year 2005            [***]

2.  [***] for [***] initiated by Natus after various sign-off stages. These may
    include additional [***] to [***] equipment, or additional [***] for product
    or packaging components.

3.  [***] for [***] in capital equipment and engineering if this agreement is
    cancelled by Natus prior to it's expiration, unless the reason for the
    cancellation is due to poor quality or delivery, or other reasons that are
    controllable by Ludlow. In the event that Natus is [***] under this clause,
    the [***] will become the [***] of [***].

The parties have executed this Memorandum of Understanding on the 7/th/day of
December, 2000.

For: Natus Medical Inc.               For: The Ludlow Company LP

/s/ Thomas M. Waugh                   /s/ Lee Carrier
---------------------------------     ----------------------------
Signature                             Signature

Name: Thomas M. Waugh                 Name:  Lee Carrier
      ---------------------------            ---------------------

Title: Vice President, Operations     Title: President
       --------------------------            ---------------------

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[***] Confidential treatment requested pursuant to a request for confidential
      treatment filed with the Securities and Exchange Commission. Omitted
      portions have been filed separately with the Commission.
<PAGE>

                                                           The Ludlow Company LP
                                                                       [address]

Tyco / Healthcare / Ludlow
================================================================================

18 September 2000

Thomas Waugh
Vice President, Operations
Natus Medical Inc.
1501 Industrial Rd
San Carlos, CA  94070-4111

Dear Tom:

Estimates for the new Natus ear coupler and electrodes have been completed. The
cost projections are based upon best guess information available at this time.
The cost projections include the cost for a new production line for the ear
couplers utilizing the molded ear coupler and [***] hydrogel. [***] for the
molded ear coupler are also included in the estimate.

Proposed Natus System
---------------------

One piece molded ear coupler:         $[***] per pair
"Tab" style electrode:                $[***] per pouch of three electrodes
                                       -----
Total cost per procedure:             $[***]

Current Natus System
--------------------

Foam Ear coupler:                     $[***] per pair
Snap style electrodes:                $[***] per pouch of three electrodes
                                       -----
Total cost per procedure:             $[***]

Moving to the new system would result in a [***]% ($[***]) cost reduction per
patient procedure.

Attached are two spreadsheets detailing the total cost saving to Natus per year
using realistic conversion rates from the current system to the new design over
a five year period. In year five, we project complete conversion to the new
molded design. Total savings over this time period are in excess of $[***].

Of course, a faster rate of conversion would yield great savings sooner.

We look forward to reviewing this proposal and moving forward with the
conversion.

Best Regards,

/s/ Paul Latka

Paul Latka
Director of Sales & Marketing
OEM Medical Products

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[***] Confidential treatment requested pursuant to a request for confidential
      treatment filed with the Securities and Exchange Commission. Omitted
      portions have been filed separately with the Commission.
<PAGE>

              Natus Product Conversion to Molded Ear Couplers/Tabs

<TABLE>
<CAPTION>
                                                 Annual   Total
          Foam    Foam   Annual  Molded  Molded  Molded  Annual   Total                   Annual Price                   Average
           Ear     Ear    Foam     Ear     Ear     Ear     Ear    Annual  Avg Ear Cost of Jelly   of   Annual   Total     Cost
Calendar Coupler Coupler   Ear   Coupler Coupler Coupler Coupler   Ear    Coupler  Jelly  Button  New   Tab   Electrode    of
  Year     Qty    Cost   Coupler   Qty    Cost    Cost    Cost   Couplers  Cost   Buttons  Cost  Tabs   Cost    Cost    Electrodes
-------- ------- ------- ------- ------- ------- ------- ------- -------- ------- ------- ------ ----- ------ --------- ----------
<S>       <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>      <C>     <C>    <C>    <C>   <C>      <C>       <C>
    2000  [***]   [***]   [***]   [***]   [***]   [***]   [***]   [***]    [***]   [***]  [***]  [***] [***]    [***]     [***]
    2001  [***]   [***]   [***]   [***]   [***]   [***]   [***]   [***]    [***]   [***]  [***]  [***] [***]    [***]     [***]
    2002  [***]   [***]   [***]   [***]   [***]   [***]   [***]   [***]    [***]   [***]  [***]  [***] [***]    [***]     [***]
    2003  [***]   [***]   [***]   [***]   [***]   [***]   [***]   [***]    [***]   [***]  [***]  [***] [***]    [***]     [***]
    2004  [***]   [***]   [***]   [***]   [***]   [***]   [***]   [***]    [***]   [***]  [***]  [***] [***]    [***]     [***]
    2005  [***]   [***]   [***]   [***]   [***]   [***]   [***]   [***]    [***]   [***]  [***]  [***] [***]    [***]     [***]

<CAPTION>

              Total
Calendar     Estimated
  Year         Cost
--------     ---------
<C>          <S>
  2000        [***]
  2001        [***]
  2002        [***]
  2003        [***]
  2004        [***]
  2005        [***]
</TABLE>
Cost Comparison Current Foam Ear Coupler vs. Conversion to Molded Ear Coupler

<TABLE>
<CAPTION>
                    Average Cost Per  Annual Cost    Current
           Total       Study with        with        Cost Per   Annual Cost
          Annual       Conversion     Conversion    Study with   Per Study
Calendar    Ear        to Molded       to Molded     Foam Ear   with Current
  Year   Couplers      Ear Coupler    Ear Coupler    Coupler    Ear Coupler       Savings
-------- --------   ----------------  ------------  ----------  ------------      -------
<S>      <C>         <C>             <C>           <C>         <C>              <C>
  2000     [***]         [***]           [***]        [***]        [***]           [***]
  2001     [***]         [***]           [***]        [***]        [***]           [***]
  2002     [***]         [***]           [***]        [***]        [***]           [***]
  2003     [***]         [***]           [***]        [***]        [***]           [***]
  2004     [***]         [***]           [***]        [***]        [***]           [***]
  2005     [***]         [***]           [***]        [***]        [***]           [***]
Total five year savings                                                            [***]
</TABLE>

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[***] Confidential treatment requested pursuant to a request for confidential
      treatment filed with the Securities and Exchange Commission. Omitted
      portions have been filed separately with the Commission.<PAGE>

                                                                    EXHIBIT 10.3

                                   AGREEMENT

  THIS AGREEMENT (the "Agreement"), dated the 2nd day of July, 2001, is made and
entered into by and between Virtgame.com Corp. (hereinafter referred to as
"VGTI"), a Public Company incorporated pursuant to the laws of Delaware, and R.
Stephen Sarli (hereinafter referred to as "Consultant").

P R E A M B L E:

  WHEREAS, VGTI desires to engage the Consultant as its general management
consultant; and

  WHEREAS the Consultant has performed the abovementioned services for a
substantial amount of time without compensation and VGTI is desirous of
continuing of continuing the relationship; and

  WHEREAS the Consultant wishes to continue to provide the above stated services
to VGTI;

  NOW, THEREFORE, in consideration for the Consultant's agreement to render the
hereinafter described services, as well as of the premises, the sum of TEN ($10)
DOLLARS, and other good and valuable consideration, the receipt and adequacy of
which is hereby acknowledged, the Parties, intending to be legally bound, hereby
agree as follows:

WITNESSETH:

                                  ARTICLE ONE
                              CONSULTANT SERVICES

1.1 The Consultant shall perform the following services for VGTI:

(a) Consultant shall work with VGTI to further develop its management structure
and its Board of Directors, and to plan its strategy in acquiring companies that
will meld with VGTI's development plans. Consultant will also review any and all
prospective joint ventures and strategic partners, and comment on the
desirability and feasibility of said joint ventures/strategic partners, and will
develop plans of action for any general plans for expansion as required.

(b) VGTI hereby irrevocably agrees to keep Consultant apprised of all material
matters involving the VGTI, as required to permit Consultant to fully, properly
and legally perform its duties hereunder.

(c) Consultant shall submit reports to VGTI on its progress.

                                  ARTICLE TWO
                        FEES, EXPENSES, AND TERMINATION

2.1 Fees

(a) The Consultant shall be entitled to a fee of $125,000 payable in cash on a
monthly basis beginning July 2, 2001and ending December 31, 2001 or payable by
issuance of 500,000 free trading shares of VGTI common stock within 10 working
days of the execution of this agreement for the sum of $125,000, said sum having
been earned by Consultant.
<PAGE>

2.2 Expenses

The Company shall be responsible for all reasonable expenses Sarli may incur in
performing services under this Agreement. However, all expenses over $500 in any
month must be pre-approved by the Company.

2.3 Term

This agreement shall be for a period of 1 year.

                                 ARTICLE THREE
                                 MISCELLANEOUS

3.1 All notices, demands or other written communications hereunder shall be in
writing, and unless otherwise provided, shall be deemed to have been duly given
on the first business day after mailing by United States registered or certified
mail, return receipt requested, postage prepaid, addressed as follows:

TO CONSULTANT:

And

TO VGTI: 5230 Carroll Canyon Rd., Suite 318, San Diego, California 92121;

in each case, with copies to such other address or to such other persons as any
Party shall designate to the others for such purposes in the manner herein above
set forth.

3.2 Time shall be of the essence in this Agreement.

3.3 This Agreement may be executed in one or more counterparts, each of which
when so executed shall constitute an original and all of which together shall
constitute one and the same agreement.

3.4 This Agreement, constitutes the entire agreement between the parties hereto.
There are not and shall not be any verbal statements, representations,
warranties, undertakings or agreements between the parties and this Agreement
may not be amended or modified in any respect except by written instrument
signed by the parties hereto.

3.5 This Agreement shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the laws of the State of New York.
Any and all disputes arising under this Agreement whether as to interpretation,
performance or otherwise, shall be subject to the exclusive jurisdiction of the
Courts of the State of New York.  Each of the parties hereto hereby irrevocably
agrees to the jurisdiction of the Courts of the State of New York.

3.6 The parties hereto shall sign such further and other papers, cause such
meetings to be held, resolutions passed and by-laws enacted, exercise their vote
and do or cause to be done all such other acts and things as maybe necessary or
desirable in order to give full force and effect to this Agreement and every
part thereof.

3.7 The headings used herein are inserted for convenience of reference only and
shall not affect the construction of, or interpretation of, this Agreement.

3.8 In the event that any Article or section of this Agreement is held to be
invalid or unenforceable by a court of competent jurisdiction, such invalidity
or unenforceability shall not affect the remainder of the provisions hereof, but
such part shall be fully severable, and this Agreement
<PAGE>

shall be construed and enforced as if such invalid or unenforceable part had
never been inserted herein and the parties do hereby agree that they would have
signed this Agreement without such invalid or unenforceable part included
herein.

3.9 In this Agreement words importing the singular number only shall include the
plural and vice versa; and words importing the masculine gender shall include
the feminine and vice versa.

3.10 This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective heirs, legal personal representatives,
successors and permitted assigns.

3.11 Where the date for the expiry of any time period or for the closing of any
thing hereunder expires or falls upon a day which is not a Business Day, the
time so limited extends to and the thing shall be done on the day next following
that is a Business Day.

  IN WITNESS WHEREOF the parties hereto have executed this Agreement on the day
and year first above written.

SIGNED, SEALED AND DELIVERED
in the presence of

                   "Company"

                   VIRTGAME.COM CORP.
                   a Delaware corporation

                   By:  /S/  BRUCE MERATI
                      ------------------------------
                      Chief Operating Officer

                   "Consultant"

                   /S/  R. STEPHEN SARLI
                   ---------------------------------
                        R. Stephen Sarli

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