Document:

Unassociated Document

     

    
      CONFIDENTIAL
        LICENSE AGREEMENT

      FOR
        THE WiiTM CONSOLE

      (EEA,
        AUSTRALIA, AND NEW ZEALAND)

       

       

      THIS
        LICENSE AGREEMENT ("Agreement") is entered into between NINTENDO CO., LTD.
        ("NINTENDO") at 11-1 Kamitoba Hokotate-cho, Minami-ku, Kyoto, Japan 601-8501,
        Attn:  General Manager, International Business Administration
        Department (Fax:  81.75.662.9619), and ACTIVISION, INC., a corporation
        of Delaware, and its subsidiaries (Activision Publishing, Inc., a corporation
        of
        Delaware, Activision UK, Ltd., a limited company of the United Kingdom; ATVI
        France, S.A.S., a corporation of France; Activision GmbH, a corporation of
        Germany, and Activision Pty., Ltd., a limited company of Australia) (jointly
        and
        severally "LICENSEE") at 3100 Ocean Park Blvd., Santa Monica, CA 90405,
        Attn: Mr. George Rose (Fax: 310.255.2152). NINTENDO and LICENSEE agree as
        follows:

       

      
        	1.	
                RECITALS

              

      

       

      1.1  NINTENDO
        designs, develops, manufactures, markets and sells advanced design, high-quality
        video game systems, including the WiiTM video game console ("WiiTM").

       

      1.2  LICENSEE
        desires use of the highly proprietary programming specifications, unique
        and
        valuable security technology, trademarks, copyrights and other valuable
        intellectual property rights of NINTENDO, which rights are only available
        for
        use under the terms of a license agreement, to develop, have manufactured,
        advertise, market and sell video game software for play on WiiTM.

       

      1.3  NINTENDO
        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 text and design specifications for the Game Disc label and the
          Printed
          Materials in the format specified by NINTENDO in the Guidelines.

         

        2.2  "Bulk
          Goods" means Game Discs printed with the Game Disc label portion of the
          Artwork
          for delivery to LICENSEE without Printed Materials or other packaging.
          

         

        2.3  "Check
          Disc(s)" means the pre-production Game Discs to be produced by
          NINTENDO.

         

        2.4  "Confidential
          Information" means the information described in Section 8.1.

         

        2.5  "Development
          Tools" means the development kits, programming tools, emulators and other
          materials of NINTENDO, or third parties authorized by NINTENDO, that may
          be used
          in the development of Games under this Agreement.

         

        2.6  "Effective
          Date" means the date that LICENSEE placed its first order for Licensed
          Products
          of October 24, 2006.

         

        2.7  "Finished
          Product(s) means the fully assembled Game Disc with a Game Disc label,
          Printed
          Materials, and packed in a plastic storage case; 

         

        2.8  "Game
          Disc(s)" means custom optical discs for play on WiiTM on which a Game has been
          stored.

         

        2.9  "Game(s)"
          means any interactive programs (including source and object/binary code)
          developed to be compatible with WiiTM.

         

        
          
             

          

          
            -1-

            
              

            

          

          
             

          

        

         

        2.10  "Guidelines"
          means the then-current version of "WiiTM Programming Guidelines;" "Licensee
          Packaging Guidelines" pertaining to the layout, trademark usage and requirements
          of the Game Disc label, instruction manual and Game Disc packaging; "Marketing
          Materials"; "Nintendo Trademark Guidelines;" "Guidelines on Ethical Content";
          and "Nintendo WiiTM Software Submission Requirements," together with other
          guidelines provided by NINTENDO to LICENSEE from time to time. The Guidelines
          on
          Ethical Content are attached as Annex A, and the remainder of the
          Guidelines have been provided to LICENSEE independent of this Agreement.
          The
          Guidelines may be changed or updated from time to time without notice,
          and the
          versions current from time to time will be available on request from
          NINTENDO.

         

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

         

        2.12  "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
          WiiTM
          including NintendoTM, WiiTM, Official Nintendo Seal of QualityTM, and MiiTM,
          (b) select trade dress associated with WiiTM and licensed video games for
          play thereon, (c) Proprietary Rights in the Security Technology employed in
          the Games or Game Discs by Nintendo, (d) rights in the Development Tools
          for use in developing the Games, excluding, however, rights to use, incorporate
          or duplicate select libraries, protocols and/or sound or graphic files
          associated with the Development Tools which belong to any third party and
          for
          which no additional licenses or consents are required, (e) patents, patent
          applications, design registrations, utility models or copyrights which
          may be
          associated with the Game Discs or Printed Materials, (f) copyrights in the
          Guidelines, and (g) other Proprietary Rights of Nintendo in the
          Confidential Information.

         

        2.13  "Licensed
          Products" means (a) Bulk Goods, and/or (b) Finished Products after
          being assembled and packaged with the Printed Materials in accordance with
          the
          Guidelines. 

         

        2.14  "Marketing
          Materials" means marketing, advertising or promotional materials developed
          by or
          for LICENSEE (or subject to LICENSEE's approval) that 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, print media and all audio or video content other than the
          Game that
          is to be included on the Game Disc.

         

        2.15  "NDA"
          means the non-disclosure agreement related to WiiTM previously entered into
          between NINTENDO and/or NOA and LICENSEE.

         

        2.16  "NOA"
          means NCL's subsidiary, Nintendo of America Inc. of Redmond, Washington,
          USA.

         

        2.17  "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 mail,
          or (c) deposited, carriage 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, or (d) transmitted by
          e-mail with an express written acknowledgement of receipt sent personally
          by or
          on behalf of the recipient (which shall include any automated reply). Notice
          shall be deemed effective upon the earlier of actual receipt or two (2)
          business
          days after transmittal, provided, however, any Notice received after the
          recipient's normal business hours will be deemed received on the next business
          day. 

         

        2.18  "Price
          Schedule" means the then-current version of NINTENDO's schedule of purchase
          prices and minimum order quantities for the Finished Products and the Bulk
          Goods. The Price Schedule has been provided to LICENSEE independent of
          this
          Agreement and may be changed or updated from time to time without notice,
          and
          the version current from time to time will be available on request from
          NINTENDO.

         

        
          
             

          

          
            -2-

            
              

            

          

          
             

          

        

         

        2.19  "Printed
          Materials" means title page, instruction booklet, precaution booklet, and
          optional printed materials.

         

        2.20  "Promotional
          Disc(s)" means custom optical discs compatible with WiiTM that incorporate select
          game promotional or supplemental materials, as may be specified or permitted
          in
          the Guidelines.

         

        2.21  "Proprietary
          Rights" means any rights or applications for rights owned, licensed or
          otherwise
          held in patents, patent applications, utility models, registered design
          rights,
          unregistered design rights, trademarks, service marks, copyrights, and
          neighboring rights, semiconductor chip layouts or masks, database rights,
          trade
          secrets, trade dress, get up, moral rights and publicity rights, together
          with
          all inventions, discoveries, ideas, know-how, data, information, processes,
          methods, procedures, formulas, drawings and designs, computer programs,
          software
          source code and object code, and all amendments, modifications, and improvements
          thereto for which such patents, patent applications, utility models, registered
          design rights, unregistered design rights, trademarks, service marks,
          copyrights, and neighboring rights, semiconductor chip layouts or masks,
          database rights, trade secrets, trade dress, get up, moral rights or publicity
          rights may exist or may be sought and obtained in the future.

         

        2.22  "Rebate
          Program" means any then-current version of NINTENDO's optional rebate program,
          establishing select terms for price rebates under this Agreement.

         

        2.23  "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.

         

        2.24  "Security
          Technology" means the highly proprietary security features of the WiiTM and the
          Licensed Products to minimize the risk of unlawful copying and other
          unauthorized or unsafe usage, including, without limitation, any security
          signature, bios, data scrambling, password, hardware security apparatus,
          watermark, hologram, encryption, digital rights management system, copyright
          management information system, proprietary manufacturing process or any
          feature
          which obstructs piracy, limits unlawful, unsafe or unauthorized use, or
          facilitates or limits compatibility with other hardware, software, accessories
          or peripherals, or with respect to a video game system other than the WiiTM, or
          limits distribution outside of the Territory.

         

        2.25  "Sole
          License" means a license under which only the licensor and a single licensee
          can
          utilize the subject matter of the license. 

         

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

         

        2.27  "Territory"
          means any and all countries within the European Economic Area; namely Austria,
          Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France,
          Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein,
          Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal,
          Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The
          Territory shall also include Australia, New Zealand, Russia, Switzerland
          and
          Turkey. NINTENDO may add additional countries to the Territory upon written
          notice to LICENSEE.

         

        2.28  "TM"
          means trademark of NINTENDO, whether registered or not.

         

        2.29  "Wii
          Network Services" means and includes the Wii Shop Channel Services,
          WiiTMConnect24, and any related services and material delivered to a consumer's
          WiiTM console over the Internet. 

      

       

      
        	3.	
                GRANT
                  OF LICENSE; LICENSEE
                  RESTRICTIONS

              

      

      
         

        3.1  Limited
          License Grant. For the Term and for the Territory, NINTENDO grants to
          LICENSEE a nonexclusive, nontransferable, limited license to use the
          Intellectual Property Rights, for the purpose of and to the extent necessary,
          to
          develop (or have developed on LICENSEE's behalf) Games for manufacture,
          advertising, marketing and sale by LICENSEE as Licensed Products, subject
          to the
          terms and conditions of this Agreement. This license is
          royalty-free.

         

        
          
             

          

          
            -3-

            
              

            

          

          
             

          

        

         

        3.2  LICENSEE
          Acknowledgement. LICENSEE's use of the Intellectual Property Rights shall
          not create any right, title or interest of LICENSEE therein. LICENSEE is
          authorized and permitted to develop Games, and have manufactured, advertise,
          market, and sell Licensed Products, only for play on WiiTM and only in accordance
          with this Agreement. In the event that LICENSEE challenges NINTENDO's ownership
          or the validity of the Intellectual Property Rights, NINTENDO may terminate
          this
          Agreement without any notice or procedure.

         

        3.3  Restrictions
          on License Grant. NINTENDO does not guarantee that the hardware for the WiiTM
system is distributed throughout the Territory. Moreover, the present
          limited
          license to LICENSEE does not extend to the use of the Intellectual Property
          Rights for the following purposes: 

            (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, except (a) as a part of wireless Game play on and
          among WiiTM systems, or between WiiTM and Nintendo DS systems, (b) for the
          purpose of facilitating Game development under the terms of this Agreement,
          or
          (c) as otherwise approved in writing by NINTENDO. LICENSEE shall use
          reasonable security measures, customary within the high technology industry,
          to
          reduce the risk of unauthorized interception or retransmission of any Game
          transmission. No right of retransmission shall attach to any authorized
          transmission of a Game; 

         

            (b) authorize
          or permit any online activities involving a Game, including, without limitation,
          multiplayer, peer-to-peer or online play, except as expressly permitted
          by
          NINTENDO in writing;

         

            (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 WiiTM, the
          Nintendo DS system, the Development Tools or such other Nintendo system
          as
          NINTENDO may authorize in the Guidelines;

         

            (e) embed,
          incorporate, or store a Game in any media or format except the optical
          disc
          format utilized by WiiTM, 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
          disable, obstruct, circumvent or otherwise diminish the effectiveness or
          operation of 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 Reverse Engineering all or any part of WiiTM, including the
          hardware, software (embedded or not) or the Security Technology, except
          as
          specifically permitted under the laws and regulations applicable in the
          Territory. 

         

        
          
             

          

          
            -4-

            
              

            

          

          
             

          

        

         

        3.4  Development
          Tools. NINTENDO and NOA may lease, loan or sell Development Tools, including
          any improvements made by NINTENDO or NOA from time to time, to LICENSEE
          to
          assist in the development of Games under this Agreement on such terms as
          may be
          agreed between the parties. Ownership and use of any Development Tools,
          whether
          provided by NINTENDO or NOA, prior to or during the Term hereof, shall
          be
          subject to the terms of this Agreement and any separate license or purchase
          agreement required by NINTENDO or any third party licensing the Development
          Tools. LICENSEE acknowledges the respective interests of NINTENDO, and
          in the
          case of third-party Development Tools, such third parties, 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. Any license to LICENSEE to use the Development Tools does not
          extend
          to: (a) use of the Development Tools for any purpose except the design and
          development of Games under this Agreement, (b) reproduction or creation of
          derivatives of the Development Tools, except in association with the development
          of Games under this Agreement, (c) Reverse Engineering of the Development
          Tools (except as specifically permitted under the laws and/or regulations
          applicable in the Territory), or (d) selling, leasing, assigning, lending,
          licensing, encumbering or otherwise transferring the Development Tools.
          Anything
          developed or derived by LICENSEE as a result of a study of the performance,
          design or operation of any Nintendo Development Tools shall be considered
          a
          derivative work of the Intellectual Property Rights, but may be retained
          and
          utilized by LICENSEE in connection with this Agreement. Unless LICENSEE
          can
          demonstrate that such derivative work has one or more applications that
          are
          independent of and separate from the Intellectual Property Rights ("Independent
          Applications"), it shall be deemed to have granted NINTENDO and NOA an
          indefinite, worldwide, royalty-free, transferable and Sole License (including
          the right to sub-license) to such derivative work. To the extent that LICENSEE
          can demonstrate one or more Independent Applications, LICENSEE shall be
          deemed
          to have granted to NINTENDO and NOA a royalty-free and transferable
          non-exclusive License (including the right to sub-license) in relation
          to such
          Independent Applications for the Term. Anything developed or derived by
          LICENSEE
          as a result of a study of the performance, design or operation of any
          third-party Development Tools shall be governed by the terms of the license
          agreement applicable to such Development Tools. Notwithstanding any referral
          or
          information provided or posted regarding third-party Development Tools,
          NINTENDO
          and NOA make no representations or warranties with regard to any such
          third-party Development Tools. LICENSEE acquires and utilizes third-party
          Development Tools at its own risk. 

         

        3.5  Games
          Developed for Linked Play on Two Systems. In the event the Guidelines permit
          LICENSEE to develop a Game for simultaneous or linked play on WiiTM and on
          another Nintendo video game system, LICENSEE shall be required to acquire
          and
          maintain with NINTENDO such additional licenses as are necessary for the
          use of
          the Proprietary Rights associated with such other Nintendo video game system.
          

         

        3.6  In-Game
          Advertising. LICENSEE shall not include advertising or product placements
          for products or services of third parties, whether in the Game, as separate
          content on a Game Disc (e.g., a trailer), or in the Printed Materials,
          without
          NINTENDO's prior written consent.

         

        3.7  Use
          of
          MiiTM Characters. LICENSEE shall not develop any Game that permits
          NINTENDO's MiiTM characters to appear in the Game without NINTENDO's prior
          written consent.

         

        3.8  Sending
          Data to Consumers. LICENSEE shall not, without the prior written consent of
          NINTENDO, send any data, content, messages, advertising, or other communications
          of any kind to any consumer's WiiTM console through the WiiTM Network Services or
          otherwise.

         

        3.9  Downloadable
          Content. If LICENSEE desires to develop Games or updates/additions of any
          kind for any Licensed Product, to be downloaded to consumers through the
          Wii
          Network Services, the terms and conditions of such development shall be
          separately agreed in writing between the parties. LICENSEE acknowledges
          that the
          rights granted herein do not include the right to use the Intellectual
          Property
          Rights to develop downloadable content.

      

       

      
        	4.	
                SUBMISSION
                  AND APPROVAL OF GAME AND
                  ARTWORK

              

      

      
         

        4.1  Submission
          of a Completed Game to NINTENDO. Upon completion of a Game, LICENSEE shall
          deliver a prototype of the Game to NINTENDO in a format specified in the
          Guidelines. Delivery shall be made in accordance with the methods set forth
          in
          the Guidelines. Each Submission shall include such other information or
          documentation deemed necessary by NINTENDO, including, without limitation,
          a
          complete set of 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. LICENSEE
          must establish that the Game and any other content included on the Game
          Disc
          complies with the guidelines of the Pan European Game Information System
          (PEGI),
          the Unterhaltungssoftware Selbstkontrolle (USK), the Office of Film and
          Literature Classification (OFLC), or any other national or regional game
          rating
          system that NINTENDO may accept, as applicable. LICENSEE shall be responsible
          for the submission of the Game to the appropriate national or regional
          game
          rating organization and shall provide NINTENDO with a statement or certificate
          in writing from the relevant organization, confirming the rating for the
          Game.
          Where any such game has been rated as being suitable only for players aged
          18
          and over (or an equivalent rating), LICENSEE must submit a certificate
          in
          writing that confirms the game is rated as no higher than "M" (Mature)
          by the
          Entertainment Software Rating Board (ESRB) of the U.S. In addition, NINTENDO
          reserves the right to require LICENSEE to provide NINTENDO with ***
          .

        
           

          ***Confidential
            treatment requested.

        

         

        
          
             

          

          
            -5-

            
              

            

          

          
             

          

        

         

        4.2  Testing
          of a Completed Game. Upon submission of a completed Game, NINTENDO shall
          promptly test the Game with regard to its technical compatibility with,
          and
          error-free operation on, WiiTM utilizing the lot check process. Within a
          reasonable period of time after receipt, NINTENDO shall approve or disapprove
          such Game. If a Game is disapproved, NINTENDO shall specify in writing
          the
          reasons for such disapproval and state what corrections are necessary.
          After
          making the necessary corrections, LICENSEE shall submit a revised Game
          to
          NINTENDO for testing. NINTENDO shall not unreasonably withhold or delay
          its
          approval of any Game. Neither the testing nor approval of a Game by NINTENDO
          shall relieve LICENSEE of its sole responsibility for the development,
          quality
          and operation of the Game or in any way create any warranty by NINTENDO
          relating
          to any Licensed Product.

         

        4.3  Production
          of Check Discs. By submission of a completed Game to NINTENDO in accordance
          with Section 4.1, LICENSEE authorizes NINTENDO to proceed with production
          of Check Discs for such Game. If NINTENDO approves a Game, it shall promptly,
          and without further notification to or instruction from LICENSEE, submit such
          Game for the production of Check Discs. Unless otherwise advised by LICENSEE,
          following production of the Check Discs, NINTENDO shall deliver to LICENSEE
          approximately ten (10) Check Discs for content verification, testing and
          final
          approval by LICENSEE.

         

        4.4  Approval
          or Disapproval of Check Discs by LICENSEE. If, after review and testing,
          LICENSEE approves the Check Discs, it shall promptly transmit to NINTENDO
          a
          signed authorization for production in the form specified in the Guidelines.
          If
          LICENSEE does not approve the sample Check Discs for any reason, LICENSEE
          shall
          advise NINTENDO in writing and may, after undertaking any necessary changes
          or
          corrections, resubmit the Game to NINTENDO for approval in accordance with
          the
          procedures set forth in this Section 4. The absence of a signed
          authorization form from LICENSEE within five (5) days after delivery of
          the
          Check Discs to LICENSEE shall be deemed disapproval of such Check Discs.
          Production of any order for Finished Goods or Bulk Goods shall not proceed
          without LICENSEE's signed authorization.

         

        4.5  Cost
          of Check Discs and Disc Stamper. If LICENSEE: (a) disapproves the Check
          Discs for any reason (except if the disapproval is due to defects in or
          failure
          of the Check Discs due to NINTENDO's act, error or omission); (b) fails to
          order the minimum order quantity of any Game approved by NINTENDO within
          six (6)
          months after the date the Game was first approved by NINTENDO; or
          (c) submits a revised version of the Game to NINTENDO after production of
          such Game has commenced, LICENSEE shall reimburse NINTENDO (or its designee)
          for
          the reasonable estimated cost of the production of the Check Discs, including
          the cost of the disc stamper. The payment will be due (i) thirty (30) days
          after NINTENDO's written notification to LICENSEE of the Check Disc fee
          due
          NINTENDO because of LICENSEE's failure to approve such Check Disc; (ii) six
          (6) months after the date the Game was first approved by NINTENDO; or
          (iii) upon the subsequent submission by LICENSEE of a revised version of
          the Game to NINTENDO, as the case may be.

         

        
          
             

          

          
            -6-

            
              

            

          

          
             

          

        

         

        4.6  Submission
          and Approval of Artwork. Prior to submitting a completed Game to NINTENDO
          under Section 4.1, LICENSEE shall submit to NINTENDO all Artwork for the
          proposed Licensed Product. Within ten (10) business days of receipt, NINTENDO
          shall approve or disapprove the Artwork. If any Artwork is disapproved,
          NINTENDO
          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 NINTENDO
          for approval. NINTENDO shall not unreasonably withhold or delay its approval
          of
          any Artwork. The approval of the Artwork by NINTENDO 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
          NINTENDO.
          All Artwork must be approved prior to submitting an order for the Bulk
          Goods or
          Finished Products, and LICENSEE shall not produce any Printed Materials
          for
          commercial distribution until such Artwork or Finished Products has been
          approved by NINTENDO. 

         

        4.7  Artwork
          for Bulk Goods. If LICENSEE intends to submit an order for Bulk Goods, all
          Artwork and other materials to be included with the Licensed Product shall
          be
          submitted to NINTENDO in accordance with Section 4.6 herein. No Printed
          Materials shall be produced by LICENSEE until such Artwork has been approved
          by
          NINTENDO.

         

        4.8  Promotional
          Discs. In the event NINTENDO issues Guidelines in the future that permit
          LICENSEE to develop and distribute Promotional Discs, either separately
          or as a
          part of the Licensed Product, the content and specifications of such Promotional
          Disc shall be subject to all of the terms and conditions of this Agreement,
          including, without limitation, the Guidelines, the Price Schedule and the
          submission and approval procedures provided for in this Section 4.

         

      

      
        	
                5.

              	
                ORDER
                  PROCESS, PURCHASE PRICE, PAYMENT AND
                  DELIVERY

              

      

      
         

        5.1  Submission
          of Orders by LICENSEE. After receipt of NINTENDO's approval for a Game and
          Artwork, LICENSEE may at any time submit a written purchase order to NINTENDO
          for any approved Licensed Product title. The purchase order shall specify
          whether it is for Finished Products or Bulk Goods. The terms and conditions
          of
          this Agreement shall control over any contrary or additional terms of such
          purchase order or any other written documentation or verbal instruction
          from
          LICENSEE. All orders shall be subject to acceptance by NINTENDO or its
          designee.

         

        5.2  Purchase
          Price and Minimum Order Quantities. The purchase price and minimum order
          quantities for Finished Products and Bulk Goods shall be set forth in NINTENDO's
          then-current Price Schedule. Unless otherwise specifically provided for,
          the
          purchase price includes the cost of manufacturing a single Game Disc. No
          taxes,
          duties, import fees or other tariffs related to the development, manufacture,
          import, marketing or sale of the Licensed Products (except for taxes imposed
          on
          NINTENDO's income) are included in the purchase price and all such taxes
          are the
          responsibility of LICENSEE. The Price Schedule is subject to change by
          NINTENDO
          at any time without Notice, provided however, that any price increase shall
          be
          applicable only to purchase orders submitted, paid for, and accepted by
          NINTENDO
          after the date of the price increase.

         

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

         

        5.4  Delivery
          of Licensed Products. NINTENDO shall deliver the Finished Products and
          Bulk
          Goods ordered by LICENSEE to LICENSEE FOB Japan, CIP European Destination
          or
          ex-warehouse Grossostheim, per the terms in the Price Schedule. Also per
          the
          Price Schedule, the minimum shipping quantity is *** units for Finished
          Products
          and *** units for Bulk Goods. Upon mutual consent of NINTENDO and LICENSEE,
          orders may be delivered in partial shipments with a minimum shipment quantity
          as
          specified in the Price Schedule. Such orders shall be delivered only to
          countries 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, per Incoterms 2000.

         

        ***Confidential
          treatment requested

         

        
          
             

          

          
            -7-

            
              

            

          

          
             

          

        

         

        5.5  Rebate
          Program. NINTENDO, at its sole option, may elect to offer LICENSEE a Rebate
          Program. The terms and conditions of any Rebate Program shall be subject
          to
          NINTENDO's sole discretion. LICENSEE shall not be entitled to offset any
          claimed
          rebate amount against other amounts owing NINTENDO. No interest shall be
          payable
          by NINTENDO to LICENSEE on any claimed rebate. The Rebate Program is subject
          to
          change or cancellation by NINTENDO at any time without
          Notice.

      

       

      
        	6.	
                MANUFACTURE
                  OF THE LICENSED
                  PRODUCT

              

      

      
         

        6.1  Manufacturing.
          Given NINTENDO's ownership of valuable Intellectual Property Rights, NINTENDO
          shall be the exclusive source for the manufacture of the Game Discs, Check
          Discs
          and Promotional Discs, 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.
          Upon
          acceptance by NINTENDO of a purchase order from LICENSEE and receipt of
          payment
          as provided for at Section 5.3 herein, NINTENDO shall (through its
          suppliers and subcontractors) arrange for manufacturing. 

         

        6.2  Security
          Features. The final release version of the Game, the Game Disc and the
          Printed Materials shall include such Security Technology as NINTENDO, in
          its
          sole discretion, deems necessary or appropriate to (a) reduce the risk of
          unlawful copying or other unlawful, unsafe or unauthorized uses,
          (b) protect the Proprietary Rights of NINTENDO and of the LICENSEE,
          (c) promote consumer confidence, and (d) increase the quality,
          reliability or operation of WiiTM. 

         

        6.3  Printed
          Materials for Bulk Goods. Upon delivery to LICENSEE of Bulk Goods, LICENSEE
          shall assemble the Printed Materials and Bulk Goods into the Licensed Products
          in accordance with the Guidelines. No other materials, items, products
          or
          packaging may be included or assembled with the Bulk Goods without NINTENDO's
          prior written consent. Bulk Goods may be sold or distributed by LICENSEE
          only
          when fully assembled in accordance with the Guidelines. 

         

        6.4  Sample
          Printed Materials. Within a reasonable period of time after LICENSEE's
          assembly of an initial order for Bulk Goods for a Game title, LICENSEE
          shall
          provide NINTENDO with (a) two (2) samples of the fully assembled
          Licensed Product, and (b) twenty (20) samples of the LICENSEE produced
          Printed Materials (excluding the plastic disc storage case, precaution
          booklet,
          and other optional printed materials) for such Game title.

         

        6.5  Retention
          of Sample Licensed Products by NINTENDO. NINTENDO may, at its own expense,
          manufacture reasonable quantities of the Game Discs or the Licensed Products,
          and make a reasonable number of copies of the Printed Materials, not to
          exceed
          fifty (50) copies, to be used for archival purposes, legal proceedings
          against
          infringers of the Intellectual Property Rights, and for other lawful purposes
          (but not for resale). 

      

       

      
        	7.	
                MARKETING
                  AND ADVERTISING

              

      

      
         

        7.1  Approval
          of Marketing Materials. LICENSEE represents and warrants that the Printed
          Materials and the Marketing Materials shall be of high quality and comply
          with
          (a) the Guidelines, (b) the guidelines of the PEGI, and (c) all
          applicable laws and regulations and official codes of practice in those
          jurisdictions in the Territory where they will be used or distributed,
          including
          without limitation all applicable privacy laws. To protect NINTENDO's valuable
          Intellectual Property Rights, to prevent the dilution of NINTENDO's trademarks,
          and to avoid use of the licensed Intellectual Property Rights giving rise
          to any
          implication of NINTENDO's sponsorship, association, approval or endorsement
          where this is not the case, prior to actual use or distribution, LICENSEE
          shall
          submit to NINTENDO for review samples of all proposed Marketing Materials.
          NINTENDO shall, within ten (10) business days of receipt, approve or disapprove
          of the quality of such samples. If any of the samples are disapproved,
          NINTENDO
          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 NINTENDO.
          NINTENDO shall not unreasonably withhold or delay its approval of any proposed
          Marketing Materials. No Marketing Materials shall be used or distributed
          by
          LICENSEE without NINTENDO's prior written approval. 

         

        
          
             

          

          
            -8-

            
              

            

          

          
             

          

        

         

        7.2  No
          Bundling. To protect NINTENDO's valuable Intellectual Property Rights, to
          prevent the dilution of NINTENDO's trademarks and to avoid use of the licensed
          Intellectual Property Rights giving rise to any implication of NINTENDO's
          sponsorship, association, approval or endorsement where this is not the
          case,
          LICENSEE shall not, without NINTENDO's prior written approval, market or
          distribute any Games or Game Discs that have been bundled with (a) any
          peripheral designed for use with WiiTM that has not been licensed or approved in
          writing by NINTENDO, provided that LICENSEE is responsible for ensuring
          that any
          such peripheral shall comply with all applicable laws and regulations in
          the
          Territory, or (b) any other product or service where NINTENDO's
          association, approval or endorsement might be suggested by bundling the
          products
          or services.

         

        7.3  Warranty
          and Repair. LICENSEE shall provide the original consumer with a minimum one
          hundred eighty (180) day (or such longer minimum period as may be required
          by
          applicable law) limited warranty on all Licensed Products. LICENSEE shall
          also
          provide reasonable product service, including out-of-warranty service,
          for all
          Licensed Products. LICENSEE shall make such warranty and repair information
          available to consumers as required by applicable law.

         

        7.4  Business
          Facilities. LICENSEE agrees to develop and maintain sufficient customer
          service, either directly or through a third party, to adequately support
          the
          Licensed Products.

         

        7.5  No
          Sales Outside the Territory. LICENSEE covenants that it shall not market,
          sell, offer to sell, import or distribute the Licensed Products outside
          the
          Territory, or within the Territory when LICENSEE has 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 NINTENDO's reasonable judgment, significantly impair
          the
          ability of a consumer to play the Game, NINTENDO may, after consultation
          with
          LICENSEE, require the LICENSEE to recall the Licensed Product and undertake
          suitable repairs or replacements.

         

        7.7  NINTENDO
          Promotional Materials, Publications and Events. With a view to improving the
          competitiveness of the video game products consisting of Nintendo video
          game
          systems and services and compatible software published by LICENSEE and
          others,
          at its option and expense, NINTENDO may (a) utilize screen shots, Artwork
          and information regarding the Licensed Products in all NINTENDO published
          or
          officially licensed magazines, official NINTENDO sponsored web sites or
          other
          advertising, promotional or marketing media, which promote NINTENDO products,
          services or programs, and (b) exercise public performance rights in the
          Games and use related trademarks and Artwork in connection with NINTENDO
          sponsored contests, tours, conventions, trade shows, press briefings and
          similar
          events which promote such video game products. NCL shall submit to LICENSEE
          for
          review printed materials and related art for the Game that NCL intends
          to use in
          publications or media or marketing programs. 

         

        7.8  Nintendo
          Gateway System. To promote and increase demand for games on Nintendo video
          game systems, NINTENDO licenses select games 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
          hardware referred to as the "Nintendo Gateway System". If NINTENDO identifies
          a
          Game for possible license on the Nintendo Gateway System, the parties agree
          to
          conduct good faith negotiations to determine commercially reasonable terms
          for
          such participation.

         

        
          
             

          

          
            -9-

            
              

            

          

          
             

          

        

         

        
          	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
          WiiTM or the Development Tools, including, but not limited to, (a) all
          current or future information, know-how, techniques, methods, tools, emulator
          hardware or software, software development specifications, proprietary
          manufacturing processes and/or trade secrets, (b) any information on
          inventions, patents, or patent applications, (c) any business, legal,
          marketing, pricing 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 or
          NOA
          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
          or NOA 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 LICENSEE shall notify NINTENDO at least
          thirty
          (30) days prior to such disclosure, or such lesser period as may be needed
          to
          comply with such requirement. 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 NINTENDO, shall cooperate in the preparation
          and
          entry of appropriate court orders limiting the persons to whom Confidential
          Information may be disclosed and the extent of disclosure of such Confidential
          Information.

         

        8.3  Disclosure
          and Use. NINTENDO 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 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 individuals of their obligation
          of
          confidentiality as provided herein. LICENSEE shall require each such individual
          to retain in confidence the Confidential Information pursuant to a written
          non-disclosure agreement with LICENSEE. LICENSEE shall use its best efforts
          to
          ensure that individuals who are permitted hereunder to work with or otherwise
          have 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, including without limitation the Guidelines and
          Intellectual Property Rights, to any Independent Contractor, nor permit
          any
          Independent Contractor to perform or assist in development work for a Game,
          without the prior written consent of NINTENDO. Any Independent Contractor
          seeking access to Confidential Information shall be required to enter into
          a
          written non-disclosure agreement with NINTENDO or NOA that is no less
          restrictive than the terms of this Section 8, and that expressly includes
          the following language, prior to receiving any access to or disclosure
          of the
          Confidential Information from either LICENSEE or NINTENDO: 

         

        "Independent
          Contractor may have access to highly-confidential and proprietary information,
          intellectual property, and trade secrets of Nintendo Co., Ltd. and/or Nintendo
          of America Inc. (collectively, "Nintendo"). Independent Contractor expressly
          acknowledges (i) the valuable nature of such materials; and
          (ii) Nintendo's right, title and interest in such materials. All such
          materials constitute confidential information under this agreement and
          shall be
          treated by Independent Contractor as such. Independent Contractor's use
          of such
          materials shall not create any right, title or interest of Independent
          Contractor therein. In the event that Independent Contractor challenges
          Nintendo's ownership or the validity of such materials, Nintendo may terminate
          the agreement without any notice or procedure. Nintendo Co., Ltd. and Nintendo
          of America Inc. are intended third-party beneficiaries of this
          agreement."

         

        
          
             

          

          
            -10-

            
              

            

          

          
             

          

        

         

        At
          LICENSEE's option, the written non-disclosure agreement may be with LICENSEE
          rather than NINTENDO or NOA, in which case the form and substance of the
          non-disclosure agreement must be acceptable to NINTENDO. Also, in such
          case
          LICENSEE shall provide to NINTENDO on a continuing basis a listing of all
          Independent Contractors who have received or been granted access to Confidential
          Information along with copies of the applicable written non-disclosure
          agreements. In addition, LICENSEE shall take all reasonable measures to
          ensure
          that its Independent Contractors fulfill the requirements of the applicable
          written non-disclosure agreements.

         

        LICENSEE
          shall use its best efforts to ensure that its employees and Independent
          Contractors working with or otherwise having access to Confidential Information
          shall not disclose or make unauthorized use of the Confidential Information.
          LICENSEE agrees to ***.

         

        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 NINTENDO'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 government agencies in
          the Territory that regulate publicly-traded securities, provided that all
          Confidential Information shall be edited from such disclosures to the maximum
          extent allowed by such government agencies, (d) in response to lawful
          process, subject to court order limiting the persons to whom Confidential
          Information may be disclosed and the extent of disclosure of such Confidential
          Information, approved in advance by NINTENDO, and (e) to a third party
          proposing to enter into a business transaction with LICENSEE or with NINTENDO,
          but only to the extent reasonably necessary for carrying out the proposed
          transaction and only under terms of mutual confidentiality.

         

        8.6  Notification
          Obligations. LICENSEE shall promptly notify NINTENDO of the unauthorized use
          or disclosure of any Confidential Information by LICENSEE or any of its
          employees, or any Independent Contractor or its employees, 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 NINTENDO
          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 provisions of this Agreement shall
          control.

         

        ***Confidential
          treatment requested

      

       

      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

       

      
        	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

         

            (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
          all other
          Proprietary Rights incorporated into the Game or the Artwork or used in
          the
          development, advertising, marketing and sale of the Licensed Products or
          the
          Marketing Materials, or (ii) the holder of such rights, including
          trademarks, copyrights and all other Proprietary Rights which belong to
          any
          third party but have been licensed from such third party or an agent or
          licensee
          of a third party, such as a collecting society, by LICENSEE, as are necessary
          for incorporation into the Game or the Artwork or as are used in the
          development, advertising, marketing and sale of the Licensed Products or
          the
          Marketing Materials under this Agreement.

         

        9.2  NINTENDO's
          Representations and Warranties.
          NINTENDO 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 NINTENDO do not
          conflict with any agreement or understanding to which NINTENDO may be
          bound.

         

        9.3  NTELLECTUAL
          PROPERTY RIGHTS DISCLAIMER.
          NINTENDO
          (ON ITS OWN BEHALF AND ON BEHALF OF ITS AFFILIATES, SUBSIDIARIES, LICENSORS,
          SUPPLIERS AND SUBCONTRACTORS) EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND
          WARRANTIES CONCERNING THE SCOPE OR VALIDITY OF THE INTELLECTUAL PROPERTY
          RIGHTS.
          NINTENDO (ON ITS OWN BEHALF AND ON BEHALF OF ITS AFFILIATES, SUBSIDIARIES,
          LICENSORS, SUPPLIERS AND SUBCONTRACTORS) EXPRESSLY DISCLAIMS ANY WARRANTY
          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 ANY PATENT, COPYRIGHT, TRADEMARK OR OTHER PROPRIETARY RIGHTS OF A
          THIRD
          PARTY TO THE MAXIMUM EXTENT LEGALLY PERMISSIBLE. ANY WARRANTY, CONDITION
          OR TERM
          THAT MAY BE PROVIDED IN ANY APPLICABLE PROVISION OF ANY LAW OR REGULATION
          IN THE
          TERRITORY GOVERNING COMMERCIAL ACTIVITY, OR ANY OTHER COMPARABLE LAW OR
          REGULATION, IS EXPRESSLY DISCLAIMED. LICENSEE HEREBY
          ASSUMES THE RISK OF INFRINGEMENT.

         

        9.4  GENERAL
          DISCLAIMER.
          NINTENDO (ON ITS OWN BEHALF AND ON BEHALF OF ITS AFFILIATES, SUBSIDIARIES,
          LICENSORS, SUPPLIERS AND SUBCONTRACTORS) EXPRESSLY 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. NINTENDO (ON ITS OWN BEHALF AND ON BEHALF
          OF
          ITS AFFILIATES, SUBSIDIARIES, LICENSORS, SUPPLIERS AND SUBCONTRACTORS)
          EXPRESSLY
          DISCLAIMS ALL WARRANTIES, CONDITIONS OR OTHER TERMS OF ANY KIND UNDER THE
          APPLICABLE LAWS OF ANY COUNTRY, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTIES
          OF MERCHANTABILITY OR FITNESS FOR A GENERAL OR PARTICULAR PURPOSE.

         

        
          
             

          

          
            -12-

            
              

            

          

          
             

          

        

         

        9.5  LIMITATION
          OF LIABILITY.
          TO THE
          MAXIMUM EXTENT PERMITTED BY LAW, NEITHER NINTENDO NOR ITS AFFILIATES,
          SUBSIDIARIES, LICENSORS, SUPPLIERS, OR SUBCONTRACTORS 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 NINTENDO,
          THE
          MANUFACTURE OF THE LICENSED PRODUCTS OR THE USE OF THE LICENSED PRODUCTS
          ON ANY
          NINTENDO VIDEO GAME SYSTEM BY LICENSEE OR BY ANY END USER.

      

       

      
        	10.	
                INDEMNIFICATION 

              

      

       

      10.1  Claim.
        "Claim" means any and all third-party claims, demands, actions, suits,
        proceedings, 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. "Claim" shall
        specifically include civil, criminal, and regulatory matters, and those brought
        by any third party (including governmental authorities or agencies) under
        any
        national, subnational, or multinational law or regulation, or the rules of
        any
        self-regulatory body (e.g., PEGI).

       

      10.2  LICENSEE's
        Indemnification. LICENSEE shall indemnify and hold harmless NINTENDO (and
        any of
        its affiliates, subsidiaries, licensors, suppliers, officers, directors,
        employees or agents) from any Claims which are alleged to result from or
        be in
        connection with:

       

          (a) a
        breach
        by LICENSEE of any of the provisions 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 any aspect of the Licensed
        Products or the Marketing Materials, 

       

          (c) 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 aspect of the Licensed Products,
        and

       

          (d) the
        design, development, advertising, marketing, sale or use of any aspect of
        the
        Licensed Products or the Marketing Materials. 

       

      NINTENDO
        and LICENSEE shall give prompt Notice to the other of any Claim which is
        or
        which may be subject to indemnification under this Section 10. With respect
        to any such Claim, LICENSEE, as indemnitor, shall have the right to select
        counsel and to control the defense and/or settlement thereof. NINTENDO 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 Claim in
        which
        (a) NINTENDO has been named as a party, or (b) Intellectual Property
        Rights have been asserted, without NINTENDO's prior written consent. NINTENDO
        shall provide reasonable assistance to LICENSEE in its defense of any
        Claim.

       

      10.3  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 an insurance company rated at least B+ by A.M. Best
        or a
        comparable rating by another recognized insurance rating organization. Such
        policy of insurance shall be in an amount of not less than the equivalent
        of ***
        on a per-occurrence basis and shall provide for adequate protection against
        any
        Claims. Such policy shall name NINTENDO as an additional insured and shall
        specify it may not be canceled without thirty (30) days' prior written Notice
        to
        NINTENDO. A Certificate of Insurance shall be provided to NINTENDO not later
        than the date of the initial order of Licensed Products under this Agreement
        or
        within thirty (30) days of the Effective Date of this Agreement, whatever
        date
        occurs later. If LICENSEE fails to provide NINTENDO with such Certificate
        of
        Insurance or fails to maintain such insurance at any time during the Term
        and
        for a period of two (2) years thereafter, NINTENDO, in its sole discretion
        may
        (a) terminate this Agreement in accordance with Section 13.2 herein;
        and/or (b) secure comparable insurance, at LICENSEE's expense, for the sole
        benefit and protection of NINTENDO. 

       

      ***Confidential
        treatment requested

    

    
       

      
        
           

        

        
          -13-

          
            

          

        

        
           

        

      

       

      10.4  Suspension
        of
        Production.
        In the
        event NINTENDO deems itself at risk with respect to any Claim under this
        Section 10, NINTENDO may, at its sole option, suspend production, delivery
        or order acceptance for any Licensed Products, in whole or in part, pending
        resolution of such Claim.

       

      
        	11.	
                PROTECTION
                  OF PROPRIETARY RIGHTS

              

      

      
         

        11.1  Joint
          Actions Against Infringers. LICENSEE and NINTENDO may agree to jointly
          pursue cases of infringement involving 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 NINTENDO for their respective reasonable
          attorneys' fees and costs, pro rata, and any remaining recovery shall be
          distributed to LICENSEE and NINTENDO, pro rata, based upon the fees and
          costs
          incurred in bringing such action.

         

        11.2  Actions
          by LICENSEE. LICENSEE, without the consent of NINTENDO and to the extent
          permitted by law, 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 good faith efforts to inform NINTENDO
          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 NINTENDO. NINTENDO, without the consent of LICENSEE, may bring any action
          or proceeding relating to an infringement or potential infringement of
          NINTENDO's Intellectual Property Rights in the Licensed Products. NINTENDO
          shall
          make, in a timely manner, reasonable, good faith efforts to inform LICENSEE
          of
          such actions likely to affect LICENSEE's rights. NINTENDO will have the
          right to
          retain all proceeds it may derive from any recovery in connection with
          such
          actions.

      

       

      
        	12.	
                ASSIGNMENT

              

      

      
         

        12.1  Definition.
          "Assignment" means every type and form of assignment, transfer, sale,
          sublicense, delegation, encumbrance, pledge and/or hypothecation of LICENSEE's
          rights or obligations under this Agreement, including, but not limited
          to,
          (a) a voluntary assignment, transfer, sale, sublicense, delegation,
          encumbrance, pledge and/or hypothecation by LICENSEE of all or any portion
          of
          its rights or obligations under this Agreement, (b) the assignment,
          transfer, sale, sublicense, delegation, encumbrance, pledge and/or hypothecation
          of all or any portion of LICENSEE's rights or obligations under this Agreement
          to or by LICENSEE's trustee in bankruptcy, receiver, or other individual
          or
          entity appointed to control or direct the business and affairs of LICENSEE,
          (c) an involuntary assignment, transfer, sale, sublicense, delegation,
          encumbrance, pledge or hypothecation of all or a portion of LICENSEE's
          rights or
          obligations under this Agreement, including but not limited to a foreclosure
          by
          a third party upon assets of LICENSEE, (d) the merger or consolidation of
          LICENSEE if LICENSEE is a corporation, and (e) any other means or method
          whereby rights or obligations of LICENSEE under this Agreement are sold,
          assigned or transferred to another individual or entity for any reason.
          Assignment also includes the sale, assignment, transfer or other event
          affecting
          a change in the controlling interest of LICENSEE, whether by sale, transfer
          or
          assignment of shares in LICENSEE, or by sale, transfer or assignment of
          partnership interests in LICENSEE, or otherwise.

         

        12.2  No
          Assignment by LICENSEE. This Agreement and the subject matter hereof are
          personal to LICENSEE. No Assignment of LICENSEE's rights or obligations
          hereunder shall be valid or effective without NINTENDO's prior written
          consent,
          which consent may be withheld by NINTENDO for any reason whatsoever in
          its sole
          discretion. In the event of an attempted Assignment in violation of this
          provision, NINTENDO shall have the right at any time, at its sole option,
          to
          immediately terminate this Agreement. Upon such termination, NINTENDO shall
          have
          no further obligation under this Agreement to LICENSEE or to LICENSEE's
          intended
          or purported assignee.

         

        
          
             

          

          
            -14-

            
              

            

          

          
             

          

        

         

        12.3  Proposed
          Assignment.
          Prior
          to any proposed Assignment of this Agreement, LICENSEE shall give NINTENDO
          not
          less than thirty (30) days prior written Notice thereof, which Notice shall
          disclose the name of the proposed assignee, the proposed effective date
          of the
          proposed Assignment and the nature and extent of the rights and obligations
          that
          LICENSEE proposes to assign. NINTENDO may, in its sole discretion, approve
          or
          disapprove such proposed Assignment. Unless written consent is given by
          NINTENDO
          to a proposed Assignment, any attempted or purported Assignment shall be
          deemed
          disapproved and NINTENDO shall have the unqualified right, in its sole
          discretion, to terminate this Agreement at any time. Upon termination,
          NINTENDO
          shall have no further obligation under this Agreement to LICENSEE or to
          LICENSEE's intended or purported assignee.

         

        12.4  LICENSEE's
          Obligation of Non-Disclosure.
          LICENSEE shall not (a) disclose NINTENDO's Confidential Information to any
          proposed assignee of LICENSEE, or (b) permit access to NINTENDO's
          Confidential Information by any proposed assignee or other third party,
          without
          the prior written consent of NINTENDO 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
        material 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 NINTENDO'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 ***
        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 Notice of such destruction (with proof
        certified by an officer of LICENSEE) shall be delivered to
        NINTENDO.

       

      13.5  Termination
        by LICENSEE's Breach. If this Agreement is terminated by NINTENDO 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
        Notice
        of such destruction (with proof certified by an officer of LICENSEE) shall
        be
        delivered to NINTENDO. 

       

      13.6  Breach
        of NDA or other NINTENDO License Agreements. At NINTENDO's option, any
        breach by LICENSEE of (a) the NDA, or (b) any other license agreement
        between NINTENDO and LICENSEE relating to the development of games for any
        Nintendo video game system, which breach is not cured within the time period
        for
        cure allowed under the applicable agreement (and which shall give NINTENDO
        reasonable cause to believe that it needs to terminate this Agreement so
        as to
        protect its legitimate business interests), shall be considered a material
        breach of this Agreement entitling NINTENDO to terminate this Agreement in
        accordance with Section 13.5 herein.

       

      13.7  No
        Further Use of the Intellectual Property Rights. Upon expiration 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 the Licensed Products authorized under Section 13.4 herein.
        LICENSEE shall, within thirty (30) days of expiration or termination,
        (a) return to NINTENDO all Development Tools provided to LICENSEE by
        NINTENDO, and (b) return to NINTENDO or destroy any and all copies of
        materials constituting, relating to, or disclosing any Confidential Information,
        including but not limited to Guidelines, writings, drawings, models, data,
        and
        tools, whether in LICENSEE's possession or in the possession of any past
        or
        present employee, agent or Independent Contractor who received the information
        through LICENSEE. Proof of such return or destruction shall be certified
        by an
        officer of LICENSEE and promptly provided to NINTENDO.

       

      ***Confidential
        treatment requested

    

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

     

    13.8  Termination
      by NINTENDO's Breach.
      If this
      Agreement is terminated by LICENSEE as a result of a breach of its terms or
      conditions by NINTENDO, 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  Compliance
        with Applicable Laws and Regulations. Licensee shall at all times comply
        with applicable laws, regulations and orders in the countries of the Territory
        relating to or in any way affecting this Agreement and Licensee's performance
        under this Agreement, including, without limitation, the export laws and
        regulations of any country with jurisdiction over the Intellectual Property
        Rights, Licensed Products, Development Tools and/or either party. Licensee
        shall
        not market, distribute, or sell the Game and/or Game Discs in any country
        in the
        Territory in which such marketing, distribution or sale would violate any
        applicable laws, regulations or orders of such country.

       

      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, NINTENDO 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 relating
        to the
        use of the Confidential Information, the Development Tools and the Intellectual
        Property Rights. Upon reasonable Notice to LICENSEE, NINTENDO may, at its
        expense, arrange for a third-party audit of LICENSEE's records, reports and
        other information related to LICENSEE's compliance with this Agreement;
        provided, however, that NINTENDO shall not, during the course of the audit,
        access LICENSEE's source code, development plans, marketing plans, internal
        business plans or other items deemed confidential by LICENSEE, except to
        the
        extent such materials incorporate, disclose or reference NINTENDO's Confidential
        Information or Intellectual Property Rights. 

       

      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, 11, 13.4, 13.7, 13.8
        and 14 shall survive any expiration or termination of this Agreement to the
        degree necessary to permit their complete fulfillment or discharge.

       

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

       

      
        
           

        

        
          -16-

          
            

          

        

        
           

        

      

       

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

       

      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  Expansion
        of Rights. NINTENDO may expand the rights granted to LICENSEE under this
        Agreement by providing written notice of such expansion of rights to LICENSEE
        and without having to enter into a written addendum to the present Agreement
        with LICENSEE.

       

      14.10  Delegation
        of Duties. NINTENDO, at its option, may delegate its duties under the
        present Agreement to a wholly owned subsidiary. To the extent necessary for
        the
        parties to carry out their duties under this Agreement, NINTENDO shall provide
        notice to LICENSEE of any such delegation, including to whom at NINTENDO's
        wholly owned subsidiary communications from LICENSEE under this Agreement
        may be
        directed. Also in the event of a delegation by NINTENDO, the provisions of
        this
        Agreement shall continue to govern the relationship between NINTENDO and
        LICENSEE and shall govern the relationship between NINTENDO's subsidiary
        and
        LICENSEE, subject to any amendments or modifications to this Agreement which
        such subsidiary and LICENSEE may agree to in their relationship. NINTENDO
        shall
        remain obligated under the present Agreement for the performance of NINTENDO's
        duties by NINTENDO's subsidiary.

       

      14.11  Counterparts
        and Signature by Facsimile. This Agreement may be signed in counterparts,
        which shall together constitute a complete Agreement. A signature transmitted
        by
        facsimile or electronically via computer network 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.

    

      
        	
                NCL:

              	
                LICENSEE:

              
	 	 
	
                Nintendo
                  Co., Ltd.

              	
                Activision,
                  Inc.

              
	 	 
	
                By:                      
                  

              	
                By:                      
                  

              
	 	
                  George
                  Rose

              
	
                  President                

              	
                  General
                  Counsel

              
	
                Date:                      

              	
                Date:                      

              
	 	 
	 	
                Activision
                  Publishing, Inc.

              
	 	
                By:                       

              
	 	
                  George
                  Rose

              
	 	
                  Title:                    

              
	 	
                Date:                      

              

      

    

     

    

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    

      
        	 	
                Activision
                  UK, Ltd.

              
	 	
                By:                      

              
	 	
                George
                  Rose

              
	 	
                Director

              
	 	 
	 	
                Date:  
                                       

              
	 	 
	 	
                ATVI
                  France, S.A.S.

              
	 	
                By:                       

              
	 	
                George
                  Rose

              
	 	
                Director

              
	 	 
	 	
                Date:  
                                        

              
	 	 
	 	 
	 	
                Activision
                  GmbH

              
	 	
                By:                        

              
	 	
                George
                  Rose

              
	 	
                Managing
                  Director

              
	 	 
	 	
                Date:  
                                        

              
	 	 
	 	
                Activision
                  Pty, Ltd.

              
	 	
                By:                        

              
	 	
                George
                  Rose

              
	 	
                Director

              
	 	 
	 	
                Date:  
                                        

              

      

    

    Enclosure:

    Annex A:
      Guidelines on Ethical Conduct

     

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

     

    Annex
      A

     

    Guidelines
      on Ethical Content

     

     

    The
      following Guidelines on Ethical Content are presented for assistance in the
      development of Games by defining the types of the theme inconsistent with
      NINTENDO's corporate philosophy. Exceptions may be made when necessary to
      maintain the integrity of the Game or the Game's theme. Games shall
      not:

     

     

    
      	
            	(a)	
              contain
                sexually explicit content including but not limited to nudity, rape,
                sexual intercourse and sexual touching; for instance, NINTENDO does
                not
                allow bare-breasted women in Games, however, mild displays of affection
                such as kissing or hugging are
                acceptable;

            

    

     

    
      	
            	(b)	
              contain
                language or depictions which specifically denigrate members of any
                race,
                gender, ethnicity, religion or political
                group;

            

    

     

    
      	
            	(c)	
              depict
                gratuitous or excessive blood or violence. NINTENDO does not permit
                depictions of animal cruelty or
                torture;

            

    

     

    
      	
            	(d)	
              depict
                verbal or physical spousal or child
                abuse;

            

    

     

    
      	
            	(e)	
              permit
                racial, gender, ethnic, religious or political stereotypes; for example,
                religious symbols such as crosses will be acceptable when fitting
                into the
                theme of the Game and not promoting a specific religious
                denomination;

            

    

     

    
      	
            	(f)	
              use
                profanity, obscenity or incorporate language or gestures that are
                offensive by prevailing public standards and tastes;
                and

            

    

     

    
      	
            	(g)	
              promote
                the use of illegal drugs, smoking materials, tobacco and/or alcohol;
                for
                example NINTENDO does not allow gratuitous beer or cigarette advertisement
                anywhere in a Game; however, Sherlock Holmes smoking a pipe would
                be
                acceptable as it fits the theme of the
                Game.

            

    

     

     

     

    

     

     

    JEN:hjd

     

    
      
         

      

      
        -19-VALIDITY
      GUARANTY

    

    I,
      Mark
      Seremet, being first duly sworn on oath, depose and say that:

    

    1. I
      am the
      duly qualified and acting President of Green Screen Interactive Software ,
      Inc.
      parent company of Zoo Games, Inc. a New Jersey corporation
      ("Borrower").

    

    2. I
      am
      familiar with Borrower's business and financial affairs, including without
      limitation the matters and things hereinafter described.

    

    3. This
      Validity Guaranty is made by me in my individual capacity and is delivered
      to
      Working Capital Solutions, Inc. ("Lender") for the purpose of inducing Lender,
      now and from time to time hereafter, to advance monies and/or extend credit
      and
      other financial assistance to Borrower pursuant to that certain Loan and
      Security Agreement (the "Security Agreement") dated August 5, 2008 between
      Borrower and Lender, together with the "Loan Documents" (as defined in the
      Security Agreement).

    

    4. As
      of the
      date of each borrowing under the Security Agreement, I hereby warrant and
      represent to and guaranty Lender that, except as disclosed from time to time
      to
      Lender in writing by Borrower:

    

    (a) All
      accounts receivable, inventory and equipment reports and records submitted
      by
      Borrower to Lender have been, and after the date hereof will be, true, complete
      and correct in all material respects and all financial and other reports of
      every nature whatsoever submitted by Borrower to Lender shall fairly represent
      Borrower's business as of the date such reports are made;

    

    (b) There
      are, and until the termination of the Security Agreement will be, no liens
      or
      security interests granted by Borrower with respect to the Borrower's assets,
      except as contemplated by the Security Agreement and the Loan
      Documents;

    

    (c) Borrower
      has and will at all times maintain its assets insured against loss or damage
      by
      fire, theft, explosion, spoilage and all other hazards and risks ordinarily
      insured against by other owners or users of such properties in similar
      businesses in an amount at least equal to the full insurable value of all such
      property, and all such policies of insurance have and will have loss payable
      endorsements in favor of Lender, in form and substance reasonably satisfactory
      to Lender;

    

    (d) All
      "Accounts" (as defined in the Security Agreement), and all reports prepared
      by
      Borrower relating to such Accounts, are and will be genuine and in all respects
      what they purport to be;

    

    (e) All
      Accounts shown on the statements, reports, schedules and borrowing certificates
      delivered in connection with the Security Agreement are and will be valid and
      subsisting and arise and will arise out of the bona fide sale of goods or the
      performance of services by Borrower;

    

    (f) The
      amount of the Accounts represented as owing by each account debtor is and will
      be the correct amount actually owing by such account debtor, as reflected in
      the
      books and records of Borrower, is not disputed, to the best of her knowledge,
      and is not subject to any defense, setoff, credit, deduction or contra
      charge.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (g) Borrower
      will at all times during the term of the Security Agreement employ commercially
      reasonable credit approval and collection procedures in connection with
      Accounts;

    

    (h) Borrower
      has and will have good title (subject to liens permitted by the Security
      Agreement) to the Accounts and the absolute right to grant to Lender a first,
      senior and valid security interest in the same;

    

    (i) All
      of
      the "Inventory" (as defined in the Security Agreement) is and will be located
      on
      the premises described on Exhibit B to the Security Agreement, and is and will
      be of merchantable quality, free from any material defects which would
      materially affect the market value of such Inventory;

    

    (j) All
      the
      "Equipment" (as defined in the Security Agreement) is and will be located at
      the
      premises described on Exhibit B to the Security Agreement, is and will be in
      working condition (reasonable wear and tear expected) and is and will be
      currently used or usable in Borrower's business; and

     

    (k) Borrower
      has and will have good title (subject to liens permitted by the Security
      Agreement) to all Inventory and Equipment and the absolute right to grant to
      Lender a valid security interest in the same.

    

    5. No
      "Event
      of Default" (as defined in the Security Agreement) existed as of the date of
      execution of the Security Agreement and Loan Documents or has occurred since
      such time which has not been cured.

    

    6. In
      the
      event Lender comes into possession of any or all of the "Collateral" (as defined
      in the Security Agreement) or is collecting the Accounts [by reason of the
      occurrence of a Event of Default under the terms of the Security Agreement],
      I
      hereby covenant that I will, at Lender's option and upon Lender's request,
      and
      for so long as any of the "Liabilities" (as defined in the Security Agreement)
      shall remain outstanding, enter Lender's employ as an independent contractor
      for
      the sole purpose of disposing of, such Collateral and collecting such Accounts.
      During the period of such employment or when asked by Lender to render such
      employment or when asked by Lender to render such other assistance, I shall
      exert my best efforts and devote all of my regular working hours to obtain
      sales
      of such Collateral at the best obtainable prices and terms and collect such
      Accounts at their full face value. Lender shall have the right to terminate
      my
      employment or other activities described above at any time, on five (5) business
      days' notice, for any cause or without cause. My sole compensation and
      remuneration for any employment or assistance rendered pursuant to this
      paragraph 6 shall be a weekly salary paid at the same weekly rate as the average
      weekly salary paid to me by Borrower in twelve (12) months immediately preceding
      the commencement of such employment or activities. Such compensation shall
      be
      prorated for partial week of service. I shall not have any authority to bind
      Lender, except such specific authority as Lender may grant in
      writing.

    

    7. The
      warranties, representations and guaranties contained herein shall be continuing
      in nature and shall be deemed to have been remade upon each borrowing by
      Borrower under the Security Agreement except as otherwise disclosed in writing
      to Lender. I hereby acknowledge that Lender has relied, and will continue to
      rely, upon the warranties and representations contained herein. In the event
      of
      my breach of the representations, warranties and guaranties set forth herein,
      I
      shall be personally liable to Lender for all damages resulting from such
      breach.

    

    8. This
      Validity Guaranty shall remain in effect until all the Liabilities have been
      paid in full provided that in the event that Guarantor ceases to be an officer
      of Borrower, this Validity Guaranty shall not be effective with respect to
      matters arising after such date.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    9. THIS
      GUARANTY SHALL BE GOVERNED AND CONTROLLED BY THE INTERNAL LAWS OF THE STATE
      OF
      ILLINOIS.

    

    10. Guarantor
      irrevocably agrees that, subject to Bank's sole and absolute election, ALL
      ACTIONS OR PROCEEDINGS IN ANY WAY, MANNER OR RESPECT, ARISING OUT OF OR FROM
      OR
      RELATED TO THIS GUARANTY SHALL BE LITIGATED IN COURTS HAVING SITUS WITHIN THE
      CITY OF CHICAGO, STATE OF ILLINOIS. GUARANTOR HEREBY CONSENTS AND SUBMITS TO
      THE
      JURISDICTION OF ANY LOCAL, STATE OR FEDERAL COURTS LOCATED WITHIN SAID CITY
      AND
      STATE. Guarantor hereby irrevocably appoints and designates the Secretary of
      State of Illinois, whose address is Springfield, Illinois (or any other person
      having and maintaining a place of business in such state whom Guarantor may
      from
      time to time hereafter designate upon ten (10) days written notice to Bank
      and
      who Bank has agreed in its sole discretion in writing is satisfactory and who
      has executed an agreement in form and substance satisfactory to Bank agreeing
      to
      act as such attorney and agent), as Guarantor's true and lawful attorney and
      duly authorized agent for acceptance of service of legal process. Guarantor
      agrees that service of such process upon such person shall constitute person
      service of such process upon Guarantor. GUARANTOR HEREBY WAIVES ANY RIGHT IT
      MAY
      HAVE TO TRANSFER OR CHANGE THE VENUE OF ANY LITIGATION BROUGHT AGAINST GUARANTOR
      BY BANK IN ACCORDANCE WITH THIS PARAGRAPH.

    

    11. GUARANTOR
      HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING WHICH
      PERTAINS DIRECTLY OR INDIRECTLY TO THIS GUARANTY.

     

    Dated:
      8-11, 2008

     

    
      	
	
               in
                his individual capacity

            

    

     

    SUBSCRIBED
      AND SWORN TO before me,
      the
      undersigned, a Notary Public in and for the State and County
      aforesaid, this 11
      day
of
      August,
      2008.

     

    
      	
              

            	
              STEVEN
                KHOLODOVSKY

              Notary
                Public - State of New York

              No.
                01KH6145695

              Qualified
                in Richmond County

              My
                Commission Expires: May
                08, 2010 

            
	
              My
                Commission Expires:

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