Document:

Exhibit
10.1

CONFIDENTIAL
LICENSE AGREEMENT

FOR THE Wii CONSOLE

(Western Hemisphere)

THIS
LICENSE AGREEMENT (“Agreement”) is entered into between NINTENDO OF AMERICA
INC. (“NOA”) at 4820 150th Avenue N.E., Redmond, WA  98052 Attn: General Counsel (Fax: 425-882-3585)
and TAKE-TWO INTERACTIVE SOFTWARE, INC., and each of the Affiliates that
are signatories to this Agreement (collectively, “LICENSEE”) at 622 Broadway,
6th Floor, New York, NY 10012 Attn: Kristine Severson (Fax:
212-334-6644).  NOA and LICENSEE agree as
follows:

1.             RECITALS

1.1           NOA markets and sells advanced
design, high-quality video game systems, including the Wii video game console (“Wii”).

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 NOA and its parent company, Nintendo Co., Ltd.,
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 Wii.

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

2.             DEFINITIONS

2.1           “Affiliates” means and includes with
respect to Take Two Interactive Software, Inc., a corporation or other
legal entity that operates primarily as a video game publisher and/or developer
and is under the Control of, or is under common Control with, Take Two
Interactive Software, Inc.  A list
of such Affiliates is attached to this Agreement as Exhibit A, which may
be amended in writing from time to time.

2.2             “Artwork” means the text and
design specifications for the Game Disc label and the Printed Materials in the
format specified by NOA in the Guidelines.

2.3           “Bulk Goods” means Game Discs that
have been printed with the Game Disc label Artwork for delivery to LICENSEE
without Printed Materials or other packaging.

2.4           “Control” means ownership, either
directly or indirectly, through a subsidiary or series of tiered subsidiaries, of
shares of capital stock (or like units of ownership) representing more than
fifty percent (50%) of the voting rights in such corporation or other legal
entity.

2.5           “Check Disc(s)” means the
pre-production Game Discs to be produced by Nintendo.

2.6           “Confidential Information” means the
information described in Section 8.1.

2.7           “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.

2.8           “Effective Date” means February 21,
2007.

2.9           “Game Discs(s)” means custom optical
discs for play on Wii on which a Game has been stored.

 

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2.10         “Game(s)” means any interactive
programs (including source and object/binary code) developed to be compatible
with Wii.

2.11         “Guidelines” means the then current
version of “Wii Programming Guidelines,” “Licensee Packaging Guidelines,” and “Nintendo
Trademark Guidelines,” together with other guidelines provided by NOA to LICENSEE
from time to time.

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

2.13         “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 Wii including
Nintendo®, WiiTM, Official Nintendo Seal of Quality®, and MiiTM , (b) select
trade dress associated with Wii 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, design
registrations 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.

2.14         “Licensed Products” means Bulk Goods
after being assembled by or for LICENSEE with the Printed Materials in accordance
with the Guidelines.

2.15         “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.

2.16         “NDA” means the non-disclosure agreement
related to Wii previously entered into between NOA and LICENSEE.

2.17         “Nintendo” means NOA’s parent company,
Nintendo Co., Ltd., of Kyoto, Japan, individually or collectively with
NOA.

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

2.19         “Price Schedule” means the then current
version of NOA’s schedule of purchase prices and minimum order quantities for
the Bulk Goods.

2.20         “Printed Materials” means a plastic
disc storage case, title page, instruction booklet, warranty card and poster
incorporating the Artwork.

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

 

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

2.23         “Rebate Program” means any then current
version of NOA’s optional rebate program, establishing select terms for price
rebates under this Agreement.

2.24         “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.

2.25         “Security Technology” means the highly
proprietary security features of the Wii 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 Wii, or limits distribution outside of the Territory.

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

2.27         “Territory” means all countries within
the Western Hemisphere and their respective territories and possessions.

2.28         “Wii Network Services” means and
includes the Wii Shop Channel Services, WiiConnect24, and any related services
and material delivered to a consumer’s Wii console over the Internet.

3.             GRANT
OF LICENSE; LICENSEE RESTRICTIONS

3.1           Limited License Grant.  For the Term and for the Territory, NOA
grants to LICENSEE a nonexclusive, nontransferable, limited license to use the
Intellectual Property Rights to develop (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.  Except as permitted under a separate written
authorization from Nintendo, LICENSEE shall not use the Intellectual Property
Rights for any other purpose.

3.2           LICENSEE Acknowledgement.  LICENSEE acknowledges (a) the valuable
nature of the Intellectual Property Rights, 
(b) the right, title and interest of Nintendo in and to the Intellectual
Property Rights, and (c) the right, title, and interest of Nintendo in and
to the Proprietary Rights associated with all aspects of Wii.  LICENSEE recognizes that the Development
Tools, Games, Game Discs and Licensed Products will embody valuable rights of
Nintendo and Nintendo’s licensors. 
LICENSEE represents and warrants that it will not undertake any act or
thing which in any way impairs or is intended to impair any part of the right,
title, interest or goodwill of Nintendo in the Intellectual Property
Rights.  LICENSEE’s use of the
Intellectual Property Rights shall not create any right, title or interest of
LICENSEE therein.  Licensee is authorized
and permitted to develop Games, and have manufactured, advertise, market, and
sell Licensed Products, only for play on Wii and only in accordance with this
Agreement.

 

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3.3           LICENSEE Restrictions and
Prohibitions.  LICENSEE is not
licensed to and covenants that, without the express, written consent of NOA, it
will not at any time, directly or indirectly, do or cause to be done any of the
following:

(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 Wii systems, or
between Wii 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 Wii, the Nintendo DS system,
the Development Tools or such other Nintendo system as NOA may authorize in the
Guidelines;

(e)           embed, incorporate, or store a Game
in any media or format except the optical disc format utilized by Wii, 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 Wii, including the hardware, software
(embedded or not) or the Security Technology.

3.4           No Free-Riding; No Co-Publishing
Arrangements.  To protect Nintendo’s
valuable Intellectual Property Rights, to prevent the dilution of Nintendo’s
trademarks and to preclude free-riding by third parties on the goodwill
associated with Nintendo’s trademarks, the license granted under this Agreement
is limited to LICENSEE and may not be delegated or contracted out for the
benefit of a third party, or to a division, affiliate, or subsidiary of
LICENSEE. This Agreement, together with all submissions, representations,
undertakings and approvals contemplated of LICENSEE by this Agreement, is and
shall remain the right and obligation only of LICENSEE.  All Printed Materials and Marketing Materials
for a Game shall prominently and accurately identify LICENSEE as NOA’s
licensee.  NOA does not permit the
designation or identification of any third party co-publisher for a Game on any
Game Disc or Game Disc label Artwork, however, LICENSEE may identify a third
party as a co-publisher, licensor, developer or other partner of LICENSEE in
those Printed Materials (other than the Game Disc label), Marketing Materials
or Game credits, as authorized under the Guidelines. For purposes of
clarification, LICENSEE’s name, or logo, will appear on the Licensed Product
Game Disc case and Game Disc label as it appears in the preamble of this
Agreement.

 

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3.5           Development Tools.  NOA and Nintendo Co., Ltd. may lease,
loan or sell Development Tools to LICENSEE to assist in the development of
Games under this Agreement.  Ownership
and use of any Development Tools 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.  LICENSEE shall not, directly or indirectly,
(a) use the Development Tools for any purpose except the design and
development of Games under this Agreement, (b) reproduce or create
derivatives of the Development Tools, except in association with the
development of Games under this Agreement, (c) Reverse Engineer the
Development Tools, or (d) sell, lease, assign, lend, license, encumber or
otherwise transfer the Development Tools. 
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 and shall belong
to Nintendo, but may be retained and utilized by LICENSEE in connection with
this Agreement.  In no event shall
LICENSEE (i) seek, claim or file for any patent, copyright or other
Proprietary Right with regard to any such derivative work, (ii) make available
any such derivative work to any third party, or (iii) use any such
derivative work except in connection with the design and development of Games
under this Agreement. 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, NOA and Nintendo Co., Ltd. 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.

3.6           Third Party Developers.  LICENSEE shall not disclose or permit access
to the Confidential Information, the Guidelines or the Intellectual Property
Rights to any Independent Contractor, unless and until such Independent
Contractor has signed a confidentiality agreement with LICENSEE that is no less
restrictive than the terms of Section 8 below, and that expressly includes
the following language:

“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 shall not undertake
any act or thing which in any way impairs or is intended to impair any part of
the right, title, interest or goodwill of Nintendo in such materials.  Independent Contractor’s use of such
materials shall not create any right, title or interest of Independent
Contractor therein.  Nintendo Co., Ltd.
and Nintendo of America Inc. are intended third-party beneficiaries of
this agreement.”

LICENSEE shall,
upon request by NOA, provide NOA with copies of the confidentiality agreements
required by this Section. 
Notwithstanding any such confidentiality agreement, LICENSEE shall
remain fully responsible for, and shall hold NOA and Nintendo Co., Ltd.
harmless against, any breach of the confidentiality agreement by any
Independent Contractor involving any Confidential Information, Guidelines, or
Intellectual Property Rights.

3.7           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 Wii and on
another Nintendo video game system, LICENSEE shall be required to acquire and
maintain with NOA such additional licenses as 

 

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are necessary for
the use of the Proprietary Rights associated with such other Nintendo video
game system.

3.8           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.

3.9           Use of Mii Characters.  LICENSEE shall not develop any Game that
permits Nintendo’s Mii characters to appear in the Game without NOA’s prior
written consent.

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

3.11         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
NOA.  Upon completion of a Game,
LICENSEE shall deliver a prototype of the Game to NOA 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 NOA, 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
Advertising Code of Conduct of the Entertainment Software Ratings Board (“ESRB”)
and that the Game has been rated EC, E, E10+, T or M (or another non-Adult Only
category added by the ESRB) by the ESRB. 
LICENSEE shall provide NOA with a certificate of rating for the Game
issued by the ESRB.

4.2           Testing of a Completed Game.  Upon submission of a completed Game, NOA and
Nintendo Co., Ltd. shall promptly test the Game with regard to its
technical compatibility with and error-free operation on Wii, utilizing the lot
check process.  Within a reasonable
period of time after receipt, NOA shall approve or disapprove such Game.  If a Game is disapproved, NOA 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 NOA for testing.  NOA shall not unreasonably withhold or delay
its approval of any Game.  Neither the
testing nor approval of a Game by NOA or Nintendo Co., Ltd. shall relieve
LICENSEE of its sole responsibility for the development, quality and operation
of the Game or in any way create any warranty by NOA or Nintendo Co., Ltd.
relating to any Licensed Product.

4.3           Production of Check Discs.  By submission of a completed Game to NOA in
accordance with section 4.1, LICENSEE authorizes Nintendo to proceed with
production of Check Discs for such Game. 
If NOA 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, NOA
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
NOA 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 NOA in writing and
may, after undertaking any necessary 

 

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changes or
corrections, resubmit the Game to NOA 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 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; (b) fails to order
the minimum order quantity of any Game approved by NOA within six (6) months
after the date the Game was first approved by NOA; or (c) submits a
revised version of the Game to NOA after production of such Game has commenced,
LICENSEE shall reimburse NOA (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 NOA’s written notification to LICENSEE of
the Check Disc fee due NOA because of LICENSEE’s failure to approve such Check
Disc; (ii) six (6) months after the date the Game was first approved
by NOA; or (iii) upon the subsequent submission by LICENSEE of a revised
version of the Game to NOA, as the case may be.

4.6           Submission and Approval of Artwork.  Prior to submitting a completed Game to NOA
under Section 4.1, LICENSEE shall submit to NOA all Artwork for the
proposed Licensed Product.  Within ten
(10) business days of receipt, NOA shall approve or disapprove the
Artwork.  If any Artwork is disapproved,
NOA shall specify in writing the reasons for such disapproval and state what
corrections or improvements are necessary. 
After making the necessary corrections or improvements, LICENSEE shall
submit revised Artwork to NOA for approval. 
NOA shall not unreasonably withhold or delay its approval of any
Artwork.  The approval of the Artwork by
NOA shall not relieve LICENSEE of its sole responsibility for the development
and quality of the Artwork or in any way create any warranty for the Artwork or
the Licensed Product by NOA.  All Artwork
must be approved prior to submitting an order for the Bulk Goods, and LICENSEE
shall not produce any Printed Materials for commercial distribution until such
Artwork has been approved by NOA.

4.7           Promotional Discs.  In the event NOA 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 NOA’s approval for a Game
and Artwork, LICENSEE may at any time submit a written purchase order to NOA
for Bulk Goods for such Game.  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 NOA in Redmond, WA.

5.2           Purchase Price and Minimum Order
Quantities.  The purchase price and
minimum order quantities for the Bulk Goods shall be set forth in NOA’s then
current Price Schedule.  Unless otherwise
specifically provided for, the purchase price includes the cost of
manufacturing a single Game Disc, together with a royalty for the use of the
Intellectual Property Rights.  No taxes,
duties, import fees or other tariffs related to the development, manufacture,
import, marketing or sale of the Licensed Products (except for taxes imposed on
NOA’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 NOA at any time without Notice, provided
however, that any price increase shall be applicable only to purchase orders
submitted, paid for, and accepted by NOA after the effective date of the price
increase.

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

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5.4           Delivery of Bulk Goods.  Bulk Goods shall be delivered to LICENSEE FCA
Torrance, California, USA, or such other delivery point within the continental
United States as may be specified by NOA. 
Orders may be delivered in partial shipments, at NOA’s option.  Title to Bulk Goods shall vest in LICENSEE in
accordance with the terms of the applicable letter of credit, or in the absence
thereof, upon delivery to LICENSEE and receipt by NOA of full payment for the
shipment at issue.  The term “FCA” shall
have the same meaning for purposes of this Section as given by INCOTERMS 2000.

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

6.             MANUFACTURE OF THE LICENSED
PRODUCT

6.1           Manufacturing.  Nintendo Co., Ltd. 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 NOA of a purchase order
from LICENSEE and receipt of payment as provided for at Section 5.3 herein, NOA
shall place the order with Nintendo Co., Ltd. who 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 Wii.

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
NOA’s prior written consent.  Bulk Goods
may be sold or distributed by LICENSEE only when fully assembled in accordance
with the Guidelines.

6.4           Prior Approval of LICENSEE’s
Independent Contractors.  Prior to
the placement of a purchase order for Bulk Goods, LICENSEE shall obtain NOA’s
approval of any Independent Contractors selected to perform the production and
assembly operations.  LICENSEE shall
provide NOA with the names, addresses and all business documentation reasonably
requested by NOA for such Independent Contractors.  NOA may, prior to approval and at reasonable
intervals thereafter, (a) require submission of additional business or
financial information regarding the Independent Contractors, (b) inspect
applicable facilities of the Independent Contractors, and (c) be present
to supervise any work on the Licensed Products to be done by the Independent
Contractors.  If at any time NOA deems
the Independent Contractor to be unable to meet quality, security or
performance standards reasonably established by NOA, NOA may refuse to grant
its approval or withdraw its approval upon Notice to LICENSEE.  LICENSEE may not proceed with the production
of the Printed Materials or assembly of the Licensed Product by such
Independent Contractor until NOA’s concerns have been resolved to its satisfaction
or until LICENSEE has selected and received NOA’s approval of another
Independent Contractor.  NOA may
establish preferred or required supply sources for select components of the
Printed Materials, or for assembly of Printed Materials and Bulk Goods into
Licensed Products, which sources shall be deemed preapproved in accordance with
this Section 6.4.  LICENSEE shall comply
with all sourcing requirements established by NOA.

6.5           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 NOA with (a) six (6)

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samples of the
fully assembled Licensed Product, and (b) seventy-five (75) samples of the
LICENSEE produced Printed Materials (excluding the plastic disc storage case,
warranty card, and poster) for such Game title.

6.6           Retention of Sample Licensed
Products by NOA.  NOA or Nintendo
may, at their own expense, manufacture reasonable quantities of the Bulk Goods,
and make a reasonable number of copies of the Printed Materials to be used for
archival purposes, legal proceedings against infringers of the Intellectual
Property Rights and for other lawful purposes.

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 ESRB’s Advertising Code of Conduct
and Principles and Guidelines for Responsible Advertising, and (c) all
applicable laws and regulations in those jurisdictions in the Territory where
they will be used or distributed, including without limitation all applicable
privacy laws such as the Children’s Online Privacy Protection Act.  Prior to actual use or distribution, LICENSEE
shall submit to NOA for review samples of all proposed Marketing
Materials.  NOA shall, within ten (10)
business days of receipt, approve or disapprove of the quality of such
samples.  If any of the samples are
disapproved, NOA shall specify the reasons for such disapproval and state what
corrections and/or improvements are necessary. 
After making the necessary corrections and/or improvements, LICENSEE
shall submit revised samples for approval by NOA.  No Marketing Materials shall be used or
distributed by LICENSEE without NOA’s prior written approval.  NOA shall not unreasonably withhold or delay
its approval of any proposed Marketing Materials.

7.2           No Bundling.  To protect Nintendo’s valuable Intellectual
Property Rights, to prevent the dilution of Nintendo’s trademarks and to
preclude free-riding by non-licensed products on the goodwill associated with
Nintendo’s trademarks, LICENSEE shall not market or distribute any Games or
Game Discs that have been bundled with (a) any peripheral designed for use
with Wii that has not been licensed or approved in writing by NOA, or
(b) any other product or service where NOA’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 ninety (90) day limited warranty on all Licensed Products.  LICENSEE shall also provide reasonable
product service, including out-of-warranty service, for all Licensed Products.  LICENSEE shall make such warranty and repair
information available to consumers as required by applicable federal and state
law.

7.4           Business Facilities.  LICENSEE agrees to develop and maintain  (a) suitable office facilities within
the United States, adequately staffed to enable LICENSEE to fulfill all
responsibilities under this Agreement, (b) necessary warehouse,
distribution, marketing, sales, collection and credit operations to facilitate
proper handling of the Licensed Product, and (c) customer service and game
counseling, including telephone service, 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 NOA’s reasonable judgment, significantly
impair the ability of a consumer to play the Game, NOA may, after consultation
with LICENSEE, require the LICENSEE to recall the Licensed Product and
undertake suitable repairs or replacements.

7.7           NOA Promotional Materials,
Publications and Events.  At its
option and expense **, NOA may (a) utilize screen shots, Artwork and
information regarding the Licensed Products in Nintendo Power, Nintendo
Power Source, official Nintendo sponsored web sites or other

**               Denotes confidential information that has
been omitted and filed separately, accompanied by a confidential treatment
request, with the Securities and Exchange Commission pursuant to 17 C.F.R.
200.83.

 9
 

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 NOA sponsored contests,
tours, conventions, trade shows, press briefings and similar events which
promote Wii. **

7.8           Nintendo Gateway System.  To promote and increase demand for games on
Nintendo video game systems, NOA 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 NOA 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.

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 Wii or the Development Tools,
including, but not limited to, (a) all current or future information, know-how,
techniques, methods, information, tools, emulator hardware or software,
software development specifications, proprietary manufacturing processes and/or
trade secrets, (b) any information on 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
under an obligation of confidentiality which is still in force, and (iii) data
and information which LICENSEE can show was received by it from a third party
who did not acquire the same directly or indirectly from Nintendo and to whom
LICENSEE has no obligation of confidentiality.

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

8.3           Disclosure and Use.  NOA may provide LICENSEE with highly
confidential development information, Guidelines, Development Tools, systems,
specifications and related resources and information constituting and
incorporating the Confidential Information to assist LICENSEE in the
development of Games.  LICENSEE agrees to
maintain all Confidential 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, and Independent Contractors
that are in compliance with the requirements of Section 3.6 above, 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 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 having access to Confidential Information shall not disclose or make
any unauthorized use of the Confidential Information.

8.4             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

**               Denotes confidential information that has
been omitted and filed separately, accompanied by a confidential treatment
request, with the Securities and Exchange Commission pursuant to 17 C.F.R.
200.83.

 10
 

shall be subject
to NOA’s prior written approval.  The
parties may disclose this Agreement (a) to accountants, banks, financing
sources, lawyers, parent companies and related parties under substantially
equivalent confidentiality obligations, (b) in connection with any formal
legal proceeding for the enforcement of this Agreement, (c) as required by
the regulations of the Securities and Exchange Commission (“SEC”), provided
that all Confidential Information shall be redacted from such disclosures to
the maximum extent allowed by the SEC, and (d) in response to lawful process,
subject to a written protective order approved in advance by NOA.

8.5           Notification Obligations.  LICENSEE shall promptly notify NOA 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 NOA under this Agreement or applicable law.

8.6           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.

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 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           NOA’s Representations and
Warranties.  NOA represents and
warrants that:

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

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

9.3           INTELLECTUAL PROPERTY RIGHTS
DISCLAIMER.  NOA (ON ITS OWN BEHALF
AND ON BEHALF OF NINTENDO CO., LTD. AND ITS AFFILIATES, LICENSORS, SUPPLIERS
AND SUBCONTRACTORS) EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES
CONCERNING THE SCOPE OR VALIDITY OF THE INTELLECTUAL PROPERTY RIGHTS.  NOA (ON ITS OWN BEHALF AND ON BEHALF OF
NINTENDO CO., LTD. AND ITS AFFILIATES, 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.  ANY WARRANTY THAT MAY BE PROVIDED IN ANY
APPLICABLE PROVISION OF THE 

 11
 

UNIFORM COMMERCIAL
CODE OR ANY OTHER COMPARABLE LAW OR STATUTE IS EXPRESSLY DISCLAIMED.  LICENSEE HEREBY ASSUMES THE RISK OF
INFRINGEMENT.

9.4           GENERAL DISCLAIMER.  NOA (ON ITS OWN BEHALF AND ON BEHALF OF
NINTENDO CO., LTD. AND ITS AFFILIATES, LICENSORS, SUPPLIERS AND SUBCONTRACTORS)
EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES WITH RESPECT TO THE BULK GOODS AND
THE LICENSED PRODUCTS, INCLUDING, WITHOUT LIMITATION, THE SECURITY
TECHNOLOGY.  LICENSEE PURCHASES AND
ACCEPTS ALL BULK GOODS AND LICENSED PRODUCTS ON AN “AS IS” AND “WHERE IS”
BASIS.  NOA (ON ITS OWN BEHALF AND ON
BEHALF OF NINTENDO CO., LTD. AND ITS AFFILIATES, LICENSORS, SUPPLIERS AND
SUBCONTRACTOR) EXPRESSLY DISCLAIMS ALL WARRANTIES UNDER THE APPLICABLE LAWS OF
ANY COUNTRY, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A GENERAL OR PARTICULAR PURPOSE.

9.5           LIMITATION OF LIABILITY.  TO THE MAXIMUM EXTENT PERMITTED BY LAW,
NEITHER NOA NOR NINTENDO CO., LTD. (NOR THEIR AFFILIATES, 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 NOA, THE MANUFACTURE OF THE BULK GOODS OR THE USE
OF THE BULK GOODS 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 federal,
state, or foreign law or regulation, or the rules of any self-regulatory body
(e.g., ESRB).

10.2         LICENSEE’s Indemnification.  LICENSEE shall indemnify and hold harmless
NOA and Nintendo Co., Ltd. (and any of their respective affiliates,
subsidiaries, licensors, suppliers, officers, directors, employees or agents)
from any Claims 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, Promotional
Materials 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, Promotional
Materials or the Marketing Materials.

NOA 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.  NOA may, at
its own expense, participate in such action or proceeding with counsel of its
own choice.  LICENSEE shall not enter
into any settlement of any Claim in which (i) NOA or Nintendo Co., Ltd. has
been named as a party, or (ii) Intellectual Property Rights have been asserted,
without NOA’s prior written consent.  NOA
shall provide reasonable assistance to LICENSEE in its defense of any Claim.

 

 12

 

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.  Such
policy of insurance shall be in an amount of not less than Five Million Dollars
($5,000,000 US) on a per occurrence basis and shall provide for adequate
protection against any Claims.  Such
policy shall name NOA and Nintendo Co., Ltd. as additional insureds and shall
specify it may not be canceled without thirty (30) days’ prior written Notice
to NOA.  A Certificate of Insurance shall
be provided to NOA’s Licensing Department not later than the date of the
initial order of Bulk Goods under this Agreement.  If LICENSEE fails to provide NOA’s Licensing
Department 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, NOA, in its sole discretion may 1) terminate this Agreement in
accordance with Section 13.2 herein; and/or 2) secure comparable insurance, at
LICENSEE’s expense, for the sole benefit and protection of NOA and Nintendo
Co., Ltd. .

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

11.          PROTECTION OF PROPRIETARY RIGHTS

11.1         Joint Actions against Infringers.  LICENSEE and NOA 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 NOA
for their respective reasonable attorneys’ fees and costs, pro  rata, and any remaining recovery shall be
distributed to LICENSEE and NOA, pro rata, based upon the fees and costs
incurred in bringing such action.

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

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

12.          ASSIGNMENT

12.1         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 

 13
 

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 NOA’s prior written consent,
which consent may be withheld by NOA for any reason whatsoever in its sole
discretion.  In the event of an attempted
Assignment in violation of this provision, NOA shall have the right at any
time, at its sole option, to immediately terminate this Agreement.  Upon such termination, NOA shall have no
further obligation under this Agreement to LICENSEE or to LICENSEE’s intended
or purported assignee.

12.3         Proposed Assignment.  Prior to any proposed Assignment of this
Agreement, LICENSEE shall give NOA 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 Assignment and the nature and extent of the
rights and obligations that LICENSEE proposes to assign.  NOA may, in its sole discretion, approve or
disapprove such proposed Assignment. 
Unless written consent is given by NOA to a proposed Assignment, any
attempted or purported Assignment shall be deemed disapproved and NOA shall
have the unqualified right, in its sole discretion, to terminate this Agreement
at any time.  Upon termination, NOA 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
NOA to such disclosure.

13.          TERM
AND TERMINATION

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

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

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

13.4         Termination Other Than by Breach.  Upon the expiration of this Agreement or its
termination other than by LICENSEE’s breach, LICENSEE shall have a period of
one hundred eighty (180) days to sell any unsold Licensed Products.  All Licensed Products in LICENSEE’s control
following the expiration of such sell-off period shall be destroyed by LICENSEE
within ten (10) days and Notice of such destruction (with proof certified by an
officer of LICENSEE) shall be delivered to NOA.

13.5         Termination by LICENSEE’s Breach.  If this Agreement is terminated by NOA as a
result of a breach of its terms and conditions by LICENSEE, LICENSEE shall
immediately cease all distribution, advertising, marketing or sale of any
Licensed Products.  All Bulk Goods and
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 NOA.

13.6         Breach of NDA or other NOA License
Agreements.  At NOA’s option, any
breach by LICENSEE of (a) the NDA, or (b) any other license agreement between
NOA and LICENSEE relating to the development of games for any Nintendo video
game system, which breach is not cured within the 

 14
 

time period for cure
allowed under the applicable agreement, shall be considered a material breach
of this Agreement entitling NOA to terminate this Agreement in accordance with
Section 13.5 herein.

13.7         No Further Use of the Intellectual
Property Rights.  Upon expiration 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 NOA all Development Tools provided to
LICENSEE by Nintendo, and (b) return to NOA 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 NOA.

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

14.          GENERAL PROVISIONS

14.1         Export Control.  LICENSEE agrees to comply with the export
laws and regulations of the United States and any other country with
jurisdiction over the Intellectual Property Rights, the Licensed Products or
the Development Tools.

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 Bulk Goods, NOA reserves the right to allocate such
resources among itself and its licensees.

14.3         Records and Audit.  During the Term and for a period of two (2)
years thereafter, LICENSEE agrees to keep accurate, complete and detailed
records relating to the use of the Confidential Information, the Development
Tools and the Intellectual Property Rights. 
Upon reasonable Notice to LICENSEE, NOA may, at its expense, audit
LICENSEE’s records, reports and other information related to LICENSEE’s
compliance with this Agreement; provided, however, that NOA 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, 12.4, 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 fulfilment or discharge.

 15
 

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

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

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

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

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

	
  NOA:

  	
  LICENSEE:

  
	
   

  	
   

  	
   

  
	
  NINTENDO
  OF AMERICA INC.

  	
  TAKE-TWO INTERACTIVE SOFTWARE, INC.

  
	
   

  	
   

  	
   

  
	
  By: /s/ James R.
  Cannataro

  	
  By:

  	
  /s/ Ben Feder

  
	
  Name: James R.
  Cannataro

  	
  Name:

  	
  Ben Feder

  
	
  Title:  Executive VP, Administration

  	
  Title:

  	
  CEO

  
	
   

  	
   

  	
   

  
	
   

  	
  ROCKSTAR
  GAMES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel
  Emerson

  
	
   

  	
  Name:

  	
  Daniel Emerson

  
	
   

  	
  Title:

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  GLOBAL
  STAR SOFTWARE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel
  Emerson

  
	
   

  	
  Name:

  	
  Daniel Emerson

  
	
   

  	
  Title:

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  2K
  GAMES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel
  Emerson

  
	
   

  	
  Name:

  	
  Daniel Emerson

  
	
   

  	
  Title:

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  2K
  SPORTS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel
  Emerson

  
	
   

  	
  Name:

  	
  Daniel Emerson

  
	
   

  	
  Title:

  	
  Secretary

  

 

 16

 

Exhibit A

Affiliates

	
  Affiliates:

  	
   

  	
  Jurisdiction of

  Incorporation

  	
   

  	
  Address

  	
   

  	
  Contact/Email

  
	
  Rockstar Games, Inc.

  	
   

  	
  Delaware

  	
   

  	
  622 Broadway

  New York, NY 10012

  	
   

  	
   

  
	
  Global Star Software, Inc.

  	
   

  	
  Delaware

  	
   

  	
  622 Broadway

  New York, NY 10012

  	
   

  	
  Steve Lux

  (646) 723-4231

  
	
  2K Games, Inc.

  	
   

  	
  Delaware

  	
   

  	
  622 Broadway

  New York, NY 10012

  	
   

  	
  Christoph
  Hartmann

  (646) 723-4217

  
	
  2K Sports, Inc.

  	
   

  	
  Delaware

  	
   

  	
  622 Broadway

  New York, NY 10012

  	
   

  	
  Christoph
  Hartmann

  (646) 723-4217CONSULTING AND ACQUISITION MANAGEMENT AGREEMENT

EXHIBIT 10.1

CONSULTING AGREEMENT

This Consulting Agreement (the "Agreement") made this fifth day of September by and between Capital One Resource Co., Ltd., (the “Consultant”), a Brunei Corporation, and wholly owned subsidiary of China Direct, Inc., a Florida corporation located at 5301 N. Federal Highway, Suite 120, Boca Raton, FL 33487, and MediaReady, Inc., a Florida corporation (“MRED” or "Company"), located at 888 East Las Olas Boulevard, Suite 710, Fort Lauderdale, FL 33301. 

RECITALS:

A.

MediaReady, Inc. desires to engage the services of Consultant to assist MRED to identify, evaluate and coordinate a potential merger and/or acquisition opportunity involving an entity in the People’s Republic of China (“PRC”).  MRED will look to Consultant for advice on general business activities and customs relative to the operations of a business entity in the PRC.  

B.

Capital One Resource Co., Ltd., is a consultant organization serving as a cross pacific bridge between US capital markets and entities operating within the Chinese economy. 

C.

Capital One Resource Co., Ltd. is desirous of performing such consulting services on behalf of MediaReady, Inc.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, the parties hereto agree as follows:

1.

Consulting Services.

a

Consultant has identified an entity located in the PRC who is desirous of establishing a potential merger and acquisition opportunity and/or business combination with a U.S. entity.  Consultant hereby agrees that it shall, during the term of this Agreement, undertake the performance of services as outlined in this Agreement.  

b

Upon the terms and subject to the conditions contained in this Agreement, Consultant hereby agrees that it shall, during the term of this Agreement, use its best efforts to provide support to MRED in the following areas:

i.

Structure a potential M&A or business combination

ii.

Translation of materials (English/Chinese)

iii.

Restructure balance sheet of Company

iv.

Convert all outstanding debt obligations

v.

General business consulting relative to business customs in the PRC

1

vi.

Support the efforts of MRED and a candidate to enter into definitive agreements regarding a potential transaction

vii.

Assist in the Due diligence on candidates

viii.

Assisting to close a potential transaction

ix.

Assist with the preparation and filing of a Form 8/K disclosing material terms and financial statements of potential transaction

2.

Term.  This Agreement shall expire on September 30, 2007.  Consultant compensation for any extension will be negotiated prior to such extension. 

3.

Compensation.  

a

Company shall issue to Consultant 10,000,000 shares of common stock of MediaReady, Inc. (OTCBB: MRED) upon signing this Agreement.

b

Company shall issue to Consultant 8,000,000 shares of common stock of MediaReady, Inc. (OTCBB: MRED) upon signing a definitive agreement to enter into a business combination transaction with any entity introduced by Consultant or any of Consultant’s affiliates.  

c

Discretionary Award Fees.  At the discretion of the Company, this Agreement provides for the additional payment of fees payable to the Consultant in either readily available funds or other marketable securities.  

4. 

Indemnification.  Consultant shall not be liable to the Company or to any officer, director, employee, stockholders, or creditor of the Company, for any act or omission in the course of or in connection with the provision of advice or assistance hereunder.  The Company agrees to and shall defend, indemnify and hold China Direct Investments, Inc., China Direct, Inc. and its affiliates and any of their directors, officers and employees harmless from and against any and all suits, claims, demands, causes of action, judgment damages, expenses and liability, including court costs and attorney’s fees which may in any way result from services provided by Consultant pursuant to or in connection with this Agreement.  Consultant does not, in any way, guarantee that MRED will subsequently close any transaction with any Chinese entity introduced to MRED by Consultant.

5. 

Termination.  Either party may terminate this Agreement upon the giving of thirty (30) days’ prior written notice, but no such termination shall affect compensation pursuant to Paragraph 3 hereof.  

6. 

Entire Agreement.  This Agreement contains the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto.

7. 

Waivers and Amendments.  This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions hereof may be waived, only by a written instrument signed by the parties or, in the case of a waiver, by the 

2

party waiving compliance.  No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder, nor any single or partial exercise of any right, power or privilege hereunder, preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder.  The rights and remedies herein provided are cumulative and are not exclusive of any rights or remedies which any party may otherwise have at law or in equity.

8.

Governing Law.  This Agreement shall be governed and construed in accordance with the laws of the State of Florida applicable to agreements made and to be performed entirely within such State.

9.

Severability of Provisions.  The invalidity or unenforceability of any term, phrase, clause, paragraph, restriction, covenant, agreement or other provision of this Agreement shall in no way affect the validity or enforcement of any other provision or any part thereof.

10. 

Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed, shall constitute an original copy hereof, but all of which together shall consider but one and the same document.

11. 

Other Activities.  Nothing contained herein shall prevent Consultant from acquiring or participating in a transaction of any kind with any other entity proposed by Consultant to be acquired by Company.  Consultant may be a party to such transaction at a price, terms and conditions more or less favorable than those offered to Company.

12. 

Natural Disaster.  In the event that any obligation of either party is prevented or delayed by circumstances of natural disaster, such party will be excused from any failure to perform any such obligation under this Agreement to the extent that such failure is caused by any such circumstances.

13. 

Non-Solicitation of Consultant's Employees:  Company agrees not to knowingly hire or solicit Consultant's employees during performance of this Agreement and for a period of two years after termination of this Agreement without Consultant's written consent. 

14. 

Mediation and Arbitration:  If a dispute arises under this Agreement, the parties agree to first try to resolve the dispute with the help of a mutually agreed-upon mediator in Palm Beach County, FL. Any costs and fees other than attorney fees associated with the mediation shall be shared equally by the parties. If the dispute is not resolved through mediation, the parties agree to submit the dispute to binding arbitration in Florida under the rules of the American Arbitration Association. Judgment upon the award rendered by the arbitrator may be entered in any court with jurisdiction to do so. 

15. 

Attorney Fees:  If any legal action is necessary to enforce this Agreement, the prevailing party shall be entitled to reasonable attorney fees, costs and expenses.

3

IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.

		
	MediaReady, Inc.

/s/ V. Jeffrey Harrell

[Sign name]

V. Jeffrey Harrell, President

[Print name]

September 5, 2007

[Date]

	Capital One Resource Co., Ltd.

/s/ Xiaowen Zhuang

[Sign name]

Xiaowen Zhuang

[Print name]

September 5, 2007

[Date]

4

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