Document:

Exhibit 10.9

                              DATED 4th August 2005
                              ---------------------

                           (1) Gizmondo Europe Limited

                      (2) Game Factory Publishing Limited

________________________________________________________________________________

                         GAME CONCEPT LICENCE AGREEMENT
                           (WITH DEVELOPMENT SERVICES)
________________________________________________________________________________

                                     MANCHES
                                   Manches LLP
                                  Aldwych House
                                   81 Aldwych
                                     London
                                    WC2B 4RP

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THIS AGREEMENT is made the 4th day of August 2005.

BETWEEN:

(1)     GIZMONDO EUROPE LIMITED a company incorporated in England and Wales with
        company registration number 04620348 and whose registered office is at 1
        Meadow Gate Avenue,  Farnborough Business Park, Farnborough,  Hampshire,
        GU14 6RG (the "Gizmondo"); and

(2)     GAME FACTORY  PUBLISHING  LIMITED (a company  registered  in England and
        Wales under company number  04470659),  whose registered  office is at 6
        Albermarle Street, London W15 4HG ("Gamefactory").

RECITALS:

(A)     Gizmondo is engaged in the business of, among other things, publishing,
        developing, marketing, distributing and selling wireless interactive
        entertainment software products.

(B)     Gamefactory  has produced the Concept (as defined in clause 1 below) and
        the Concept Materials (as defined in clause 1 below).

(C)     Gizmondo  desires to obtain an exclusive  licence of and the Gamefactory
        desires so to grant such a licence of the Concept and Concept  Materials
        to Gizmondo on the terms and conditions of this Agreement.

(D)     Gamefactory will provide Gizmondo with certain  development  services in
        respect of certain of Games  comprising  the  Concept,  on the terms and
        conditions set out herein.

IT IS AGREED:

 1.     DEFINITIONS

        In this Agreement:

        1.1.    except  where the  context  otherwise  requires,  the  following
                capitalised words shall have the following meanings:

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        "Agreement" means this agreement and any schedules attached to it;

        "Business  Day" means a day on which banks in England are generally open
        for business, other than a Saturday and Sunday;

        "Code"  means both machine  readable  programming  statements  (commonly
        referred to as object code, which can be directly executed by a computer
        without  translation  by other  computer  programs)  and human  readable
        programming  statements  (commonly  referred to as source code, which is
        computer code that is sufficient to enable a reasonably  skilled  person
        to assess,  analyse,  review,  complete,  maintain  and/or  enhance  the
        program to which that code relates, without the help of any other person
        or  reference  to any other  program or  materials),  including  without
        limitation  any and all code,  other  programs  or  materials  which are
        essential for enabling the use of the same on any Gizmondo Device;

        "Commencement Date" means the date of this Agreement;

        "Competing Game" means any Game which: (a) is the same or similar to the
        Gizmondo  Game  Product;  or (b) which uses or is related to,  concerns,
        embodies,  derives from or is otherwise associated with the Concept, the
        Concept IP and/or the Concept Materials;

        "Concept" means Gamefactory's ideas (whether or not fully developed) for
        a  number  of  Games,  as  more  particularly  described  and set out in
        Schedule One to this Agreement;

        "Concept IP" means any and all Intellectual  Property Rights  throughout
        the Territory subsisting in the Concept and/or the Concept Materials;

        "Concept Materials" means any and all Content,  Documentation,  Code and
        other materials which use,  relate to, concern,  embody,  derive from or
        are otherwise associated with the Concept,  including without limitation
        all those matters set out in Schedule Two to this Agreement;

        "Confidential  Information"  means  information  about  Gizmondo  and/or
        Gizmondo's  Affiliates' business or activities which it or they consider
        proprietary  and  confidential,   including  without  limitation,   this
        Agreement,  the  Licence of the  Concept,  the  Concept  IP, the Concept
        Materials,  any Gizmondo Game Product prior to its publication and issue
        to the public with Gizmondo's consent, any Gizmondo Game Product Sequels
        prior to their  publication  and  issue to the  public  with  Gizmondo's
        consent,  any  Merchandise  prior  to  its  issue  to  the  public  with
        Gizmondo's  consent,  any of  Gizmondo's  and/or  Gizmondo's  Affilites'
        Intellectual  Property Rights,  and all related business,  financial and
        technical  information,  identities of customers,  clients or licensees,
        proprietary software code (whether object,  source or otherwise) and any
        other  information  whether oral or written which is not generally known
        or available to the public;

        "Content" means in whatever medium, and without limitation,  any and all
        artwork,  drawings,  sketches,  text, sound, graphic and/or music files,
        audio visual elements and/or displays, user interfaces, designs, brands,
        trade dress,  packaging,  logos, trade and/or service marks,  characters
        and names,  titles,  scenes,  settings and  features,  dialog,  scripts,
        themes, story and/or plot lines and any and all other data;

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        "Development  Fee" means the  development  fee of one hundred and thirty
        five thousand pounds  sterling  payable in accordance with Schedule Five
        in  respect  of each  Gizmondo  Game  Product  to which the  development
        services in Schedule Four applies;

        "Documentation"  means in whatever medium, and without  limitation,  any
        and all documentation, manuals, reports, papers, disks and other storage
        devices,  specifications,  diagrams, tables, indices and other workings,
        including  without  limitation  any and all which  relate to the Content
        and/or the Code;

        "End-Users"  means any person or entity that  purchases  or licences for
        its use a Gizmondo  Game Product  pursuant to a signed  purchase  order,
        enduser license agreement or other similar agreement;

        "Force Majeure Event" has the meaning given to it in clause 13.2; "Game"
        means an entertainment and/or video game;

        "Gamefactory's  Associates" means, as the context shall require, any and
        all  directors,  officers,  employees,  agents,  servants  and/or  other
        associates of the Gamefactory;

        "Gamefactory's    Software"   means   Gamefactory's   generic   modules,
        algorithms,  processes,  methodologies, and games engines, including the
        source  code  embodying  the  foregoing,  that:  (a) were  independently
        developed by or for the  Developer  without  reference to or reliance on
        any  of  Gizmondo's  or  Gizmondo's  Affiliates'  Intellectual  Property
        Rights;  and  (b)  do  not  contain  any  of  Gizmondo's  or  Gizmondo's
        Affiliates' Intellectual Property Rights;

        "Gizmondo  Affiliates" means the company Gizmondo Europe Limited itself,
        its  Affiliates,  and Gizmondo  Europe  Limited group (where such a term
        "group" includes all worldwide holding and subsidiary companies in which
        Gizmondo  Europe  Limited  or a  successor  in  interest  (or one of its
        holding or  subsidiary  companies)  owns at least fifty percent (50%) or
        more of the shares or over which Gizmondo  EuropeLimited  (or one of its
        holding or subsidiary companies) exercises direct or indirect management
        control,  even  though it may own less than fifty  percent  (50%) of the
        shares and is prevented by law from owning a greater shareholding);

        "Gizmondo Device" means the GIZMONDO handheld multi-entertainment gaming
        device,  and  licensed  or  re-branded  variants  of the  same,  and any
        adaptations,  replacements  or new versions  thereof,  and/or any of the
        same  manufactured  or licensed  for  manufacture  from  Gizmondo or any
        Gizmondo Affiliates;

        "Gizmondo Game Product" means a Game created by or on behalf of Gizmondo
        for use on a Gizmondo Device and which is directly developed and derived
        from the Concept,  the Concept Materials and the Concept IP, pursuant to
        the operation of this Agreement;

        "Gizmondo Game Product Sequel" means any Game created by or on behalf of
        Gizmondo  and which is  developed  and derived  from the  Gizmondo  Game
        Product  and/or any  Content of the  Gizmondo  Game  product  (including
        without limitation any spin-off and/or tie-in).

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        "Intellectual  Property  Rights"  means any and all  rights in or to any
        intellectual   property  rights,   whether  currently  in  existence  or
        otherwise  and  whether  vested  or  contingent,  in any and all  medium
        (whether in existence now or created in the future),  including  without
        limitation  copyright,  rights in databases,  database rights, moral and
        publicity rights,  design rights,  registered  designs,  patents,  trade
        marks,  service marks, trade names, trade dress, logos, signs,  business
        or trading names or other designations,  domain names, confidential data
        or  information  or  trade  secrets,  utility  models  and  mask  works,
        inventions,  ideas,  discoveries  and  know-how,  and  all  similar  and
        associated  rights,  whether  registered  or  which  may be  capable  of
        registration  or otherwise  (including  without  limitation  any and all
        applications  for,  rights  to  apply  for and  rights  to sue for  past
        infringement of any of the foregoing,  all whether vested now or arising
        in the future),  and in each case for their full term including  without
        limitation all extensions,  reversions,  revivals and renewals  thereof,
        throughout the world;

        "Initial Term" means two years from the Commencement Date;

        "Licence"  means the exclusive  licence and related rights to reproduce,
        prepare  derivative  works,  publicly  display,   publicly  perform  and
        distribute the Game, including, without limitation, the Concept, Concept
        IP, the Concept  Materials and any Game name comprising any of the same,
        and any  improvements  of any of the foregoing,  in connection  with the
        development,  manufacture,  marketing,  sale, lease, rental,  licensing,
        sublicensing, distribution, and other use or exploitation of any and all
        versions of the same in such formats and/or media as are compatible with
        any mobile, handheld, portable and/or wireless device or product (or any
        successor or derivative  product)  throughout  the Territory  during the
        term of this Agreement;

        "Licence Fee" means the licence fee provisions set out in Schedule Three
        to this Agreement;

        "Merchandise"  means any and all goods and/or  services which uses or is
        related to, concerns,  embodies, derives from or is otherwise associated
        with the Gizmondo Game Product and/or any Gizmondo Game Product  Sequels
        and/or any Intellectual  Property Rights subsisting in either or both of
        them, including without limitation:  (a) stationary,  books,  magazines,
        guides and other  publications (in whatever medium),  cartoons and other
        animations  or  drawings,   programmes,   television  or  means  of  the
        dissemination of material,  films and motion  pictures,  video and other
        recordings,  audio, theatrical and/or other entertainment productions or
        features; (b) toys, games, gift and novelty items, figures and figurines
        and  other  playthings,  trinkets,  souvenirs,  fabrics,  furniture  and
        furnishings,  clothing and apparel,  headwear,  footwear,  jewellery and
        fashion  accessories,  health and beauty  aids,  household  and domestic
        goods, food, drinks; and (c) goods relating to the Gizmondo Game Product
        that are  produced  as  give-away  items or  prizes in  connection  with
        promotions,  and in each case of (a) to (c) all their packaging, and all
        goods other than those  listed in (a) to (c) of a similar or  dissimilar
        nature;

        "Net  Receipts"  means the gross  revenue  actually  received in cleared
        funds by Gizmondo from its exploitation (or exploitation  which Gizmondo
        has  authorised)  of the Gizmondo Game Product,  to the extent only that
        such a Gizmondo Game Product has been published and released to the

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        public with Gizmondo's consent,  (excluding without limitation any funds
        received  from any  exploitation  of the Gizmondo Game Product by way of
        Merchandise  and/or any  exploitation  whatsoever  of any Gizmondo  Game
        Product  Sequels)  after  deducting:  (a) the  Payment;  (b) any amounts
        payable to any  wireless  network,  transmission  and/or  communications
        platform  owner,   provider  and/or   operator;   (c)  taxes  and  other
        governmental   charges  and  fees  (including   without  limitation  any
        withholding  tax and VAT);  (d) any sums payable to any  relevant  third
        party Gizmondo;  (e) the development  costs associated with the Gizmondo
        Game  Product;  (f) the costs  associated  with  marketing and otherwise
        advertising  the Gizmondo Game  Product;  (g) any returns and bad debts;
        and (h) any other costs,  fees and expenses  which should  reasonably be
        deducted so as to derive the actual net receipts  from the  exploitation
        of the Gizmondo  Game  Product,  This  definition  shall not include any
        funds derived or collected  from the  distribution  of the Gizmondo Game
        Product to End-Users by any third parties,  but shall include only those
        funds  actually  received by and  cleared for use by Gizmondo  from such
        third  parties  after such third  parties  have  retained,  deducted  or
        otherwise  withheld any mark-ups,  revenue share amounts,  or license or
        other fees due to them  pursuant to the terms of  Gizmondo's  agreements
        with such third parties;

        "Payment"  means the sum of one million  five  hundred  thousand  pounds
        sterling;

        "Term" means that period of time from the  Commencement  Date until this
        Agreement is terminated in accordance  with clauses 11.3 or 11.5 of this
        Agreement; and

        "Territory" means the world.

        1.2.    the headings are for  convenience  only and shall not affect its
                construction.

        1.3.    in the  event of any  inconsistency  between  the  terms of this
                Agreement  and the  schedules  hereto,  the terms of the body of
                this Agreement shall take precedence.

        1.4.    references  to any  clause,  sub-clause  or  schedules  are to a
                clause or  subclause  of, or  schedule  to, this  Agreement  and
                references  to the parties are to the parties of this  Agreement
                and shall,  where relevant,  be deemed to be references to or to
                include, as appropriate, their respective successors,  assignees
                or transferees.

        1.5.    if any  obligation,  including an  obligation  to make  payment,
                falls to be  performed  on any day which is not a Business  Day,
                the  obligation  shall  be  performed  on  the  next  succeeding
                Business Day.

        1.6.    references to any statutory provision shall be deemed to include
                such provisions as amended from time to time whether before, on,
                or (in the case of re-enactment or consolidation only) after the
                date of this Agreement.

        1.7.    references  to  a  "person"  include  any  individual,  company,
                corporation,  firm,  partnership,   association,   organisation,
                institution,  trust or agency,  whether or not having a separate
                legal personality.

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        1.8.    save where  otherwise  expressly  stated,  the words  "company",
                "subsidiary undertaking" and "holding company" have the meanings
                given to them by the Companies Act 1985.

2.      LICENCE OF RIGHTS

        2.1.    In  consideration  of the payment by Gizmondo to the Gamefactory
                of the Payment (the sufficiency of which is hereby  acknowledged
                by the  Gamefactory),  to be paid in accordance with paragraph 6
                of Schedule Three,  the  Gamefactory  hereby grants a Licence to
                Gizmondo of:

                2.1.1.  the Concept;

                2.1.2.  the Concept IP; and

                2.1.3.  the Concept Materials.

        2.2.    By virtue of the operation of clause 2.1 the Gamefactory  hereby
                acknowledges and agrees that:

                2.2.1.  all right, title and interest in and to the Concept, the
                        Concept  IP  and  the  Concept  Materials  is  hereafter
                        licensed Gizmondo  throughout the Territory on the terms
                        of the Licence;

                2.2.2.  it no any right to either  itself or license  others the
                        Concept, the Concept IP and the Concept Materials in any
                        manner  contrary  to the  Licence  and  nothing  in this
                        Agreement  gives it any right (or any right to authorise
                        or  procure  third  parties)  to use,  deal with  and/or
                        exploit  any of the same  contrary  to such a Licence or
                        any of Gizmondo's or Gizmondo's Affiliates' Intellectual
                        Property Rights.  Without  limitation,  a breach of this
                        clause shall be  considered  to be a material  breach of
                        this Agreement by the Gamefactory;

                2.2.3.  it shall  execute  and/or do such  acts and shall  cause
                        Gamefactory's  Associates to execute and/or do such acts
                        as  may be  requested  by  Gizmondo  to  perfect  and/or
                        evidence   Gizmondo's  right,   title  and  interest  as
                        referred to in clause 2.2.1; and

                2.2.4.  Gizmondo shall be free to use, deal with and exploit the
                        Licence in respect of the  Concept,  the  Concept IP and
                        the Concept Materials as it sees fit (including  without
                        limitation  the matters set out in or  envisaged by this
                        Agreement and the development,  production, manufacture,
                        maintenance,     localise,    promotion,    advertising,
                        marketing,    publishing,    sale,   rental,    lending,
                        distribution,  issue to the  public  by  whatever  means
                        (whether  in  existence  now or created in the  future),
                        license  and other  exploitation  of any  Gizmondo  Game
                        Product and/or any Gizmondo Game Product Sequel) without
                        reference to the  Gamefactory  and that  nothing  herein
                        shall or is intended to restrict any such use,  dealings
                        or exploitation.

3.      DELIVERY OF CONCEPT MATERIALS

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        3.1.    On the  execution  of  this  Agreement  (or to  the  extent  not
                reasonably  possible,  within two  Business  Days),  Gamefactory
                shall at its cost and expense  deliver or cause to be  delivered
                to such address within the Territory as Gizmondo shall stipulate
                all the Concept Materials.

4.      FUTURE OPTIONS AND EXCLUSIVITY

        4.1.    During the Initial Term,  Gamefactory shall offer Gizmondo first
                refusal to obtain a licence on the same or similar  terms of the
                Licence  over any and all  Games  and/or  concepts  for any such
                Games, which Gamefactory and/or Gamefactory's  Associates intend
                to and/or may  develop.  In the event that any such Games and/or
                concepts  therefor are so  developed,  Gamefactory  shall notify
                Gizmondo  immediately  of the same  (such a notice to be in such
                detail  as may be  reasonably  adequate  to enable  Gizmondo  to
                consider the same fully).

        4.2.    In the event that Gizmondo  receives  such a notice  pursuant to
                clause 4.1, it shall have three months from  Gizmondo's  receipt
                of such a notice to consider the same.  Should  Gizmondo wish to
                acquire  any such  Games  and/or  concepts  therefor  which  are
                specified  in  such  a  notice,   then  Gizmondo   shall  notify
                Gamefactory  within  such a three  month  period and the parties
                shall as soon as reasonably  practicable enter into an agreement
                in  respect of the same on terms  which are  similar to those of
                this Agreement.

        4.3.    Prior to  notifying  Gizmondo  pursuant to clause 4.1 and during
                Gizmondo's   consideration   of  the  subject   matter  of  such
                notification  pursuant  to  clause  4.2,  Gamefactory  shall not
                itself use, deal with or exploit, or disclose, notify, engage in
                discussions  with,  enter into an  agreement  with or  otherwise
                transfer,  sell,  assign or licence to any third  party any such
                Games and/or concepts therefore,  Without limitation,  breach of
                this clause shall be considered to be a material  breach of this
                Agreement by Gamefactory.

        4.4.    Notwithstanding  clauses 4.1 to 4.3, during the Initial Term or,
                should it occur,  for one year from the date the  Gizmondo  Game
                Product  has been  published  and  released  to the public  with
                Gizmondo's  consent  in all  its  intended  release  territories
                (whichever  period is the shorter),  the  Gamefactory  shall not
                directly or indirectly  market,  sell or issue to the public any
                Competing Game.

5.      CONCEPT DEVELOPMENT

        5.1.    Gizmondo shall  consider in good faith the Concept,  the Concept
                IP  and  the  Concept  Materials  with a view  to  developing  a
                Gizmondo  Game  Product  from the same  (whether  in whole or in
                part) in its exclusive  discretion and at its exclusive  option,
                and without (if  Gizmondo so  determines)  any  reference  to or
                input from whatsoever or howsoever from the Gamefactory.

        5.2.    Notwithstanding   clauses   5.1  and   11.4,   the   Gamefactory
                acknowledges and agrees that:

                5.2.1.  all right,  title and  interest  in and to any  Gizmondo
                        Game  Product,  Gizmondo  Game  Product  Sequels and any
                        Merchandise  shall, as between the parties,  be owned by
                        Gizmondo

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                        throughout  the  Territory  and  that  as a  consequence
                        nothing  in this  Agreement  gives it any  right (or any
                        right to  authorise  or procure  third  parties) to use,
                        deal  with  and/or  exploit  any  of the  same.  Without
                        limitation,  a breach of this clause shall be considered
                        to  be  a   material   breach  of  this   Agreement   by
                        Gamefactory; and

                5.2.2.  nothing in this clause 5 or this  Agreement  requires or
                        creates any obligation on or expectation for Gizmondo to
                        so  create  any such a  Gizmondo  Game  Product  (or any
                        Gizmondo  Game  Product  Sequel  or  Merchandise)  or to
                        expend  any time,  resources  or funds in respect of the
                        same, or to publish and release to the public any of the
                        same.

        5.3.    Gamefactory  shall  provide  certain  development   services  to
                Gizmondo  for Gizmondo  Game  Products in respect of the matters
                licensed to Gizmondo  pursuant to clause 2.1 above, on the terms
                of Schedule Four.

6.      PRODUCTION, MARKETING, SALE AND PROMOTION

        6.1.    Gizmondo,  as the licensee of the  Concept,  the Concept IP, the
                Concept Materials on the terms of the Licence, the Gizmondo Game
                Product (if any) and the  Gizmondo  Game Product  Sequels  shall
                have the exclusive right, in its exclusive discretion and at its
                exclusive  option,  and without (if Gizmondo so determines)  any
                reference  to  or  input  from   whatsoever  or  howsoever  from
                Gamefactory, to:

                6.1.1.  without limitation,  pursuant to Gizmondo's rights which
                        arise by virtue of the operation of clause 2.1, develop,
                        localise,  produce,   manufacture,   maintain,  promote,
                        advertise,    market,   publish,   sell,   rent,   lend,
                        distribute, promote, communicate and issue to the public
                        by whatever  means  (whether in existence now or created
                        in  the  future),   any  Gizmondo  Game  Product  and/or
                        Gizmondo Game Product Sequels; and

                6.1.2.  to develop, localise,  produce,  manufacture,  maintain,
                        promote,  advertise,  market, publish, sell, rent, lend,
                        distribute, promote, communicate and issue to the public
                        by whatever  means  (whether in existence now or created
                        in  the  future),  license  and  otherwise  exploit  any
                        Merchandise.

        6.2.    Notwithstanding  clause 6.1,  Gamefactory  shall at its own cost
                cooperate  and  provide  Gizmondo  with  all  reasonable  prompt
                assistance,  on  Gizmondo's  request,  in respect of the matters
                referred to in that clause 6.1.

7.      LICENCE FEE PAYMENTS

        7.1.    In the event that  Gizmondo  produces a  Gizmondo  Game  Product
                which is published and is communicated  and issued to the public
                with  Gizmondo's  consent,  then,  provided the  Gamefactory has
                complied and  continues  to comply in full with its  obligations
                under this Agreement,  Gizmondo shall pay to the Gamefactory the
                Licence Fee as calculated,  at such times,  with such statements
                and  maintaining  such records and otherwise in accordance  with
                and as set out in Schedule Three.

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        7.2.    Should Gizmondo decide to cease (in whole or in part) any of its
                exploitation of the Concept,  the Concept IP, Concept Materials,
                Gizmondo  Game  Product,   Gizmondo  Game  Product   Sequels  or
                Merchandise in response to a third party claim,  demand or legal
                action brought, made or threatened, the subject matter of which,
                if true,  would  constitute a breach by the  Developer of any of
                its warranties,  representations,  obligations  and/or covenants
                contained in this Agreement, then Gizmondo may (at its exclusive
                option,  without any recourse to  Gamefactory),  without waiving
                any other legal rights and remedies which it may have,  withhold
                the payment to  Gamefactory  of any payments or other monies due
                to  Gamefactory  (whether  under this  Agreement or  otherwise),
                pending resolution of the third party claim, demand or action.

        7.3.    Notwithstanding  clause 7.1 Gamefactory  acknowledges and agrees
                that  nothing in this  clause 7 or this  Agreement  requires  or
                creates any  obligation  on or  expectation  for  Gizmondo to so
                create any such a Gizmondo  Game Product (or any  Gizmondo  Game
                Product Sequel or Merchandise) or to expend any time,  resources
                or funds in respect of the same,  or to publish  and  release to
                (or,  once  started,  to continue to publish and release to) the
                public  any of the  same,  and that as a result no  Licence  Fee
                whatsoever  may be payable (and once  commenced  the Licence Fee
                may cease to be payable) to Gamefactory by Gizmondo.

8.      CONFIDENTIALITY

        8.1.    Gamefactory  shall  maintain  the  confidential  status for such
                Confidential   Information,   not  use  any  such   Confidential
                Information  for any purpose other than the purpose for which it
                was originally  disclosed to it and as  specifically  set out in
                writing to it by  Gizmondo  on each  occasion,  and shall not to
                disclose  any of  such  Confidential  Information  to any  third
                party.

        8.2.    Notwithstanding the generality of clause 8.1,  Gamefactory shall
                not make any public statement or press release concerning any of
                the Confidential  Information,  including without limitation the
                negotiation  or  conclusion  or  terms  of this  Agreement,  the
                Licence  of  the  the  Concept,  the  Concept  IP,  the  Concept
                Materials,  any Gizmondo Game Product, any Gizmondo Game Product
                Sequels or any Merchandise.

        8.3.    Gamefactory  acknowledges  and  agrees  that,  in the event of a
                breach or  threatened  breach of this clause 8, Gizmondo (or any
                Gizmondo  Affiliate)  may have no  adequate  remedy  in money or
                damages and, accordingly, shall be entitled to seek preliminary,
                permanent and other injunctive relief.

9.      WARRANTIES AND INDEMNITIES

        9.1.    Each party represents and warrants to the other party that:

                9.1.1.  it has full  power  and  authority  to enter  into  this
                        Agreement  and to  perform  its  obligations  under this
                        Agreement;

                9.1.2.  it  will  comply  in  al  material   respects  with  all
                        applicable  laws,  statues and regulations in performing
                        its obligations under this Agreement; and

                                       10
<PAGE>

                9.1.3.  this Agreement constitutes a valid and binding agreement
                        enforceable in accordance with its terms.

        9.2.    Gamefactory  hereby further  represents and warrants to Gizmondo
                that   (Gamefactory   acknowledging   and  agreeing  that  these
                representations  are a material inducement for Gizmondo to enter
                into this Agreement):

                9.2.1.  it has the exclusive right, title and interest to enable
                        the licence to Gizmondo of all those  rights,  materials
                        and  other  matters  set out in and in  accordance  with
                        clause  2.1 and that there is no legal  obstacle  to the
                        transfer, sale and assignment of such rights,  materials
                        and other matters.  Without limitation, a breach of this
                        clause shall be  considered  to be a material  breach of
                        this Agreement by the Gamefactory;

                9.2.2.  there  is  no  outstanding  claim,  or  knowledge  of  a
                        potential claim, against any right, title or interest of
                        any kind whatsoever in and to the Concept, Concept IP or
                        Concept Materials.  Without limitation, a breach of this
                        clause shall be  considered  to be a material  breach of
                        this Agreement by the Gamefactory;

                9.2.3.  to the fullest extent permissible by applicable laws, it
                        hereby  provides  a full  waiver  of any and  all  moral
                        rights (or similar rights) in the Concept, Concept IP or
                        Concept Materials throughout the Territory;

                9.2.4.  to the fullest extent permissible by applicable laws, it
                        has  obtained a full waiver of any and all moral  rights
                        (or similar  rights)  throughout  the Territory from all
                        those  involved  in the  Concept,  Concept IP or Concept
                        Materials     (including    without    limitation    the
                        Gamefactory's Associates);

                9.2.5.  it  has  not  transferred,   sold,  assigned,  licensed,
                        rented,   lent,   used  as  any  security  or  otherwise
                        encumbered  or otherwise  impaired  any right,  title or
                        interest  in or to the  Concept,  Concept  IP or Concept
                        Materials in a manner that  conflicts with the operation
                        of this  Agreement  (including  without  limitation  the
                        operation of clause Z.1). Without  limitation,  a breach
                        of this  clause  shall be  considered  to be a  material
                        breach of this Agreement by the Gamefactory;

                9.2.6.  subject to the  operation  of the  provisions  of clause
                        12.1, it will not  hereafter  attempt or purport to use,
                        deal with,  exploit,  transfer,  sell, assign,  license,
                        rent, lend, use as any security or encumber or otherwise
                        impair  any  right,  title  or  interest  in or  to  the
                        Concept,  Concept  IP or Concept  Materials  in a manner
                        that  conflicts  with the  operation  of this  Agreement
                        (including  without  limitation  the operation of clause
                        2.1);

                9.2.7.  save  to  the  extent  permitted  by  applicable  law or
                        expressly  permitted by Gizmondo or a Gizmondo Affiliate
                        (as  appropriate),  it will  not  hereafter  attempt  or
                        purport to use,  deal  with,  exploit,  transfer,  sell,
                        assign,  license,  rent,  lend,  use as any  security or
                        otherwise  encumber or otherwise impair any right, title
                        or  interest in or to any  Gizmondo  Game  Product,  any
                        Gizmondo Game Product Sequels, any Merchandise, any of

                                       11
<PAGE>

                        Gizmondo's  and/or  Gizmondo's  Affilites'  Intellectual
                        Property Rights;

                9.2.8.  the Concept, Concept IP or Concept Materials:

                a)      are  original  and do  not  and  will  not  infringe  or
                        misappropriate the Intellectual Property Rights or other
                        legal  rights  of  any  third  parties  anywhere  in the
                        Territory.  Without limitation,  a breach of this clause
                        shall be  considered  to be a  material  breach  of this
                        Agreement by Gamefactory; and

                b)      do not contain  anything which is obscene,  blasphemous,
                        defamatory and/or likely (by reason of their content) to
                        expose Gizmondo  and/or any of Gizmondo's  Affiliates to
                        any  civil  or  criminal  proceedings  anywhere  in  the
                        Territory.  Without limitation,  a breach of this clause
                        shall be  considered  to be a  material  breach  of this
                        Agreement by Gamefactory;

                9.2.9.  all Code forming part of the Concept  Materials are free
                        from material programming bugs and/or defects.  Gizmondo
                        is in breach  or  default  of any term,  representation,
                        warranty,   covenant  or  obligation  set  out  in  this
                        Agreement; and

                9.2.10. the Concept,  the Concept IP and Concept  Material  are,
                        other than to the extent expressly set out in writing to
                        Gizmondo prior to the  Commencement  Date,  accurate and
                        complete,   and  have  been   prepared   using  all  the
                        reasonable   skill   and  care   expected   at  a  level
                        commensurate with best industry practice and comply with
                        all applicable laws in the Territory.

        9.3.    Gamefactory hereby agrees to indemnify, defend and hold harmless
                Gizmondo on demand  from and against any and all suits,  losses,
                liabilities,  damages,  awards, claims,  settlements,  costs and
                expenses,  including  reasonable  legal  fees,  costs  and other
                expenses,  arising out of or  otherwise  relating to a breach by
                Gamefactory  of  its  warranties,  representations,  obligations
                and/or covenants contained in this Agreement.  Such an indemnity
                shall extend to Gizmondo's Affiliates.

        9.4.    Gizmondo's overall liability under or pursuant to this Agreement
                and the matters envisaged by this Agreement,  howsoever arising,
                shall not exceed the sum of  (pound)5,000  (five thousand pounds
                sterling).

10.     INFRINGEMENT

        10.1.   In the event  that  Gamefactory  learns  of any  claim  (whether
                actual or  threatened)  alleging  that the Concept,  Concept IP,
                Concept  Materials,  any Gizmondo Device,  any Game produced for
                any Gizmondo  Device,  any Gizmondo Game  Product,  any Gizmondo
                Game Product Sequels, any Merchandise,  any of Gizmondo's and/or
                Gizmondo's Affilites'  Intellectual Property Rights infringes or
                misappropriates any third party's  Intellectual  Property Rights
                or other rights,  or that any of the same are being infringed or
                misappropriated  by any  third  party,  then  Gamefactory  shall
                promptly  notify  Gizmondo.   Gamefactory  shall  not  make  any
                admissions or other statement concerning any of the same without
                Gizmondo's specific written consent.

                                       12
<PAGE>

        10.2.   Gizmondo  shall  have  the  exclusive  right,  in its  exclusive
                discretion and at its exclusive option, and without (if Gizmondo
                so  determines)  any  reference to or input from  whatsoever  or
                howsoever from  Gamefactory,  to commence  and/or defend a legal
                action  or  negotiate  a  settlement  relating  to  any  alleged
                infringement by the Concept,  Concept IP, Concept Materials, any
                Gizmondo Device,  any Game produced for any Gizmondo Device, any
                Gizmondo Game Product,  any Gizmondo Game Product  Sequels,  any
                Merchandise,  any of  Gizmondo's  and/or  Gizmondo's  Affilites'
                Intellectual Property Rights.

        10.3.   Notwithstanding  clause 10.3, at its own cost Gamefactory  shall
                give  Gizmondo  assistance  and  cooperation  in any such  legal
                action  referred to in clause 10.2 where such an action concerns
                (in  whole  or  in  part)  the  Concept,   Concept  IP,  Concept
                Materials,  any Gizmondo Game Product, any Gizmondo Game Product
                Sequels or any Merchandise,  including without limitation,  such
                assistance and cooperation extends to providing and/or executing
                necessary documents and evidence to enable Gizmondo,  in its own
                name and/or on behalf of  Gamefactory  or  jointly,  to bring or
                defend the legal  action.  Gizmondo  shall be entitled to retain
                any  recovery  or  damages  collected  as a result of such legal
                action or negotiated settlement. No settlement by Gizmondo shall
                impose  a  monetary   liability  on  the   Gamefactory   without
                Gamefactory's consent to such a settlement.

11.     TERM AND TERMINATION

        11.1.   This Agreement shall continue for the Term.

        11.2.   Gizmondo  may  terminate  this  Agreement  (in whole or in part)
                immediately on written notice to Gamefactory,  in which case the
                terms of clause 12.12 shall apply, in the event that:

                11.2.1. Gamefactory  is  in  breach  or  default  of  any  term,
                        representation, warranty, covenant or obligation set out
                        in this  Agreement and such breach or default  continues
                        uncured  (in the event  that  they can be  cured)  for a
                        period of fourteen  calendar days  following the receipt
                        by  Gamefactory   from  Gizmondo  of  a  written  notice
                        thereof;

                11.2.2. Gamefactory  is in breach  or  default  of any  material
                        term, representation,  warranty,  covenant or obligation
                        set out in this Agreement; or

                11.2.3. Gamefactory  becomes  insolvent  (or in the  case  of an
                        individual  or any  one of  them),  files  or has  filed
                        against it a petition  under any  bankruptcy law (which,
                        if  involuntary,  is  unresolved  after  sixty  calendar
                        days),    proposes   any    dissolution,    liquidation,
                        composition,      financial      reorganization,      or
                        recapitalization with creditors,  makes an assignment or
                        trust  mortgage for the benefit of the  creditors,  or a
                        receiver  trustee,   custodian,   or  similar  agent  is
                        appointed  or  takes  possession  with  respect  to  any
                        property or business of such party.

12.     CONSEQUENCES OF TERMINATION

        12.1.   In the event of a notice coming within the terms of clause 11.2,
                then  Gizmondo  shall notify the  Gamefactory  which clauses (if
                any) of this

                                       13
<PAGE>

                Agreement  continue to apply or whether the Agreement as a whole
                shall be terminated.  Without  limiting the foregoing,  Gizmondo
                may demand (at its option) the immediate  return by the Gizmondo
                of any and all Confidential Information.

13.     GENERAL PROVISIONS

        13.1.   Assignment.  Gamefactory  may not assign this  Agreement  or any
                portion  thereof,  to any third party unless Gizmondo  expressly
                consents to such assignment in writing.

        13.2.   Force Majeure. Neither party will be responsible for any failure
                to perform its respective  obligations  under this Agreement due
                to causes beyond its  reasonable  control (each a "Force Majeure
                Event"),   including,   but  not  limited  to,  strikes,  riots,
                embargoes,  war,  acts of  terrorism,  acts of civil or military
                authorities,  fire, floods, explosion,  earthquakes,  accidents,
                network  catastrophes,  acts of God, and ail other delays beyond
                the party's reasonable  control,  provided that such party gives
                prompt  written  notice of such Force Majeure Event to the other
                party within five Business Days. The time for  performance  will
                be  extended  for a period  equal to the  duration  of the Force
                Majeure Event, but in no case longer than thirty calendar days.

        13.3.   Severability,  In the event that any provision in this Agreement
                will he subject  to an  interpretation  under  which it would be
                void or  unenforceable,  such provisions will be construed so as
                to  constitute  it a  valid  and  enforceable  provision  to the
                fullest extent  possible,  and in the event that it cannot be so
                construed,  it will,  to that  extent,  be  deemed  deleted  and
                separable  from the other  provisions of this  Agreement,  which
                will  remain in full force and effect and will be  construed  to
                effectuate its purposes to the maximum legal extent.

        13.4.   Notice. Any notice herein required or permitted to be given will
                be given  in  writing  and may be  delivered  personally  to any
                officer  of  Gizmondo  or  Gamefactory,  or as  appropriate,  by
                express courier,  registered or certified mail (postage and fees
                prepaid,  with  return  receipt  requested),   or  by  facsimile
                transmission  to the address set forth  below.  Either party may
                from time to time  specify or change the address for such notice
                by giving  written  notice  thereof  to the  other  party in the
                manner  provided  in this clause  13.4.  A notice will be deemed
                given three  calendar days after deposit if by express  courier,
                five  calendar  days after  deposit if by regular  mail, or upon
                transmission if by facsimile.

                If to Gizmondo:  to the address set out at the beginning of this
                Agreement, addressed to the Managing Director with a copy to the
                Company Secretary; and

                If to the  Gamefactory:  to the address set out at the beginning
                of this  Agreement,  addressed to the Managing  Director  with a
                copy to the Company Secretary.

        13.5.   Independent  Contractors.  The  parties  hereto are  independent
                contractors.   Gamefactory   will   not  be   entitled   to  any
                compensation  except as  provided in the  Agreement.  Each party
                shall be responsible for payment of its employees' compensation,
                disability benefits, unemployment insurance, and for withholding
                income taxes and social security. Neither party shall

                                       14
<PAGE>

                be entitled to receive any benefits  provided by the other party
                to such party's  employees.  Neither  Gizmondo  nor  Gamefactory
                shall be  deemed to be  partners  or  agents  of the  other.  In
                addition to the parties' other  indemnification  obligations set
                forth herein,  each party agrees to indemnify and hold the other
                and its  directors,  officers and  employees  harmless  from and
                against any claims,  liabilities or obligations asserted against
                any of them for not withholding taxes or making unemployment and
                worker  compensation  payments and the like, as a result of such
                party's  independent  contractor  status.  Such  indemnification
                shall  include any penalties  and interest  assessed  thereon as
                well as the payment of  reasonable  legal fees,  costs and other
                expenses.

        13.6.   Governing Law and Venue.  This Agreement  shall be construed and
                controlled  by English law and the  parties  shall be subject to
                the  nonexclusive  jurisdiction  of the English  Courts.  In any
                action  or suit to  enforce  any  right  or  remedy  under  this
                Agreement or to interpret any provision of this  Agreement,  the
                prevailing  party shall be  entitled  to recover its  reasonable
                legal fees and expenses fees, costs and other expenses

        13.7.   Counterparts.  This  Agreement may be executed in  counterparts,
                each of which  will be  deemed  an  original  Agreement  for all
                purposes and which collectively will constitute one and the same
                Agreement.

        13.8.   Remedies.  Unless  expressly set forth to the  contrary,  either
                party's election of any remedies  provided for in this Agreement
                will not be exclusive of any other remedies available  hereunder
                or otherwise at law or in equity.

        13.9.   Complete Agreement, Waiver, and Modification. This Agreement and
                the  Schedules  attached  hereto  constitute  the  complete  and
                exclusive  understanding between the parties with respect to the
                subject  matter  hereof,  superseding  all  prior  negotiations,
                preliminary    agreements,    correspondence,    proposals    or
                understandings,  both written or oral. No waiver or modification
                of any provision of this  Agreement will be binding unless it is
                in writing and signed by authorised  representatives  of each of
                the  parties,  No  waiver of a breach  hereof  will be deemed to
                constitute a waiver of a further breach, whether of a similar or
                dissimilar nature.

        13.10.  Survival of terms on  termination.  In addition to those  rights
                specified elsewhere in this Agreement,  the following rights and
                obligations  survive  any  expiration  or  termination  of  this
                Agreement  to the  degree  necessary  to permit  their  complete
                fulfilment or discharge:

                13.10.1.the rights and  obligations  of the parties with respect
                        to any Gizmondo  Game Product units that have been sold,
                        once the  Gizmondo  Game  Product has been  released and
                        issued to the public with Gizmondo's consent; and

                13.10.2.any cause of action  or claim of either  party,  accrued
                        or to  accrue,  because  of any breach or default by the
                        other party.

        13.11.  Rights of third  parties.  This Agreement is not intended by the
                parties to give rise to any right which is enforceable by virtue
                of the Contracts (Rights of Third Parties) Act 1999, save to the
                extent that such third parties are Gizmondo's Affiliates.

                                       15
<PAGE>

                             SCHEDULE ONE - CONCEPT

1.      Anastasia
2.      Cheerio's
3.      Dominion Wars
4.      The Silver Surfer
5.      TinTin
6.      DS9: The Fallen
7,      M&M's
8.      Miss Spider
9.      New Millennium Encyclopaedia
10.     Outlaw Golf
11.     Outlaw Volleyball
12.     Real War
13.     Shattered Light
].4.    Starship: BORG
15.     Starship Creator
16.     Starship Titanic
17.     Typing Tutor
18.     Weather Control
19.     Wing Commander

                                       17
<PAGE>

                        SCHEDULE TWO -- CONCEPT MATERIALS

Any  and  all  materials  as  may  be  reasonably  requested  by  Gizmondo  from
Gamefactory  in respect of the rights granted to Gizmondo  hereunder,  including
without limitation:

1.      all  marketing  and  promotional  materials  for  or in  respect  of the
        Concept;

2.      all original and other Content in respect of the Concept; and

3.      all printed and other materials in respect of the Concept.

                                       18
<PAGE>

                     SCHEDULE THREE - LICENCE FEE PAYMENTS

4.      Licence Fee currency

            o   L (Pounds sterling)

5.      Licence Fee amount and calculation

            o   25%  of  Net  Receipts,   which  excludes  always  any  and  all
                Commercial Setting Receipts

            o   The  licence  Fee shall be  calculated  within  forty  five (45)
                calendar  days after the end of each  fiscal  quarter  after the
                commercial  launch  of the Game by  Gizmondo  and  shall  notify
                Developer of that amount,  taking into  account  retentions  and
                adjustments calculated in accordance with paragraph 2.3 below.

            o   For the purposes of this paragraph, "Net Receipts" means:

                the gross revenue actually received in cleared funds by Gizmondo
                with respect to units of Gizmondo  Game Product Sold by Gizmondo
                (or any of its Affiliates) and/or sublicenses of the Licence and
                related  rights granted to it pursuant to this  Agreement,  save
                for (without  limitation)  any of the same derived from Bundling
                and/or Merchandise, after deducting:

                a)  the Payment;

                b)  any amounts  payable to any wireless  network,  transmission
                    and/or   communications   platform  owner,  provider  and/or
                    operator;

                c)  taxes and other  governmental  charges  and fees  (including
                    without limitation any withholding tax and VAT);

                d)  any sums payable to any relevant third-party licensor;

                e)  any costs  associated with any  development,  manufacturing,
                    distribution,   advertising,   marketing   and  other  costs
                    deriving  from  bringing  any  relevant  product  to  market
                    (including  without  limitation  costs  of  goods,  which is
                    commonly referred to as COGS);

                f)  any returns and bad debts ; and

                g)  any other costs,  fees and expenses which should  reasonably
                    be deducted so as to derive  Gizmondo's  actual Net Receipts
                    from exercise of the Licence and related  rights  granted to
                    it hereunder; and

                where this  definition  shall not include  any funds  derived or
                collected from the  distribution  of any units of any version of
                the Gizmondo Game Product to End-Users by any third parties, but
                shall include only those funds actually  received by and cleared
                for use by  Gizmondo  from such third  parties  after such third
                parties  have  retained,  deducted  or  otherwise  withheld  any
                mark-ups, revenue share amounts, or license or other fees due to
                them  pursuant  to  the  terms  of   Gizmondo's   agreements  or
                arrangements with such third parties.

                                       19
<PAGE>

            o   For the  purposes  of this  paragraph,  "Sold"  means only those
                units  of  the  Gizmondo  Game  Product  (whether   physical  or
                electronic  copies)  sold and in  respect  of which  revenue  is
                actually received in cleared funds by Gizmondo, and then only to
                the extent  that such a unit of the  Gizmondo  Game  Product has
                been  published  and  released  to the  public  with  Gizmondo's
                consent,  after deducting:  (a) the Payment; and (b) any returns
                and bad debts.  This  definition  shall not  include  either any
                units  provided to third  parties or  End-Users  free of charge,
                whether for reference,  promotional purposes or as give-aways or
                otherwise,  or any units distributed by third-party licensees or
                sublicensees  to third  parties or  End-Users to the extent that
                Gizmondo does not receive cleared funds.

            o   For the purposes of this Schedule,  "End-Users" means any person
                or entity that  purchases  or licences for its use a unit of the
                Gizmondo  Game  Product  pursuant  to a signed  purchase  order,
                end-user license agreement or other similar agreement.

            o   For  the  purposes  of  this  paragraph,  "Bundling"  means  any
                arrangement whereby consumers are presented with an incentive to
                purchase a unit of the Gizmondo Game Product in connection  with
                some other Gizmondo product or service. Such an expression shall
                expressly  include both hard bundling  arrangements  (namely the
                packaging of a unit of the Gizmondo  Game Product for sale as an
                integrated unit with another Gizmondo product) and soft bundling
                arrangements (namely a means by which consumers obtain a unit of
                the Gizmondo Game Product at a reduced  price,  or without cost,
                in connection with the purchase of another  Gizmondo  product or
                service).

            o   For  the  purposes  of  this  paragraph,   "Commercial   Setting
                Receipts"  means  any  and  all  revenue  actually  received  by
                Gizmondo from its exploitation  (or exploitation  which Gizmondo
                has  authorised) of the Licence and related rights granted to it
                pursuant to this Agreement, through:

                o   devices in coin-activated commercial settings; and/or

                o   devices in non-coin-activated commercial settings, including
                    without  limitation   commercial  airlines,   cruise  ships,
                    trains, buses and coaches,  trains, hotels and other leisure
                    facilities,  whereby  consumers  are charged on a per use or
                    other basis; and/or

                o   any  rental  and/or  lending  and/or  similar  programme  or
                    arrangement  operated  by or on  behalf of  Gizmondo  or any
                    Gizmondo Affiliate or any third party.

6.      Retentions of licence fees and adjustments

            o   Gizmondo may maintain and withhold from each licence fee payment
                a  reasonable  amount  of  licence  fees  accrued,  as a reserve
                against  bad debt and  returns  (such  reasonable  amount not to
                exceed 20% in each relevant fiscal quarter).

            o   Gizmondo will subsequently make adjustments in subsequent fiscal
                quarter  licence fee  calculations  based on the number of units
                actually  returned  or for which  there are bad debts,  provided
                that any unused

                                       20
<PAGE>

                reserve  shall be  released  within  the second  fiscal  quarter
                following that in which it was first established.

            o   The parties  recognise  that payments to Gamefactory by Gizmondo
                under  this  Agreement  may  be  subject  to  taxes  imposed  by
                governments  having taxing  authority over this Agreement or any
                payments to be made  pursuant to this  Agreement.  To the extent
                necessary  Gizmondo may  withhold,  deduct or reduce any licence
                fees or any other  payments  under this  Agreement in respect of
                the same  and to the  extent  that is  reasonable  will  provide
                Gamefactory with copies of any relevant tax document  evidencing
                the same.

7.      Time for payment of licence fees and  adjustments

            o   Gizmondo shall pay to Gamefactory the amount calculated pursuant
                to paragraphs 2.2 and 2.3 above,  within fourteen  Business Days
                of its receipt from Gamefactory of an appropriate VAT invoice.

8.      Licence Fee statements

            o   Together  with  each  payment  of  a  licence  fee  pursuant  to
                paragraph 2.4 above,  Gizmondo shall provide  Gamefactory with a
                summary statement for the relevant period indicating to what the
                relevant payment relates and how the relevant licence fee amount
                was calculated.

9.      Bank account details

            o   Those bank account  details of Gamefactory as Gamefactory  shall
                notify to Gizmondo from time to time.

                                       21
<PAGE>

                      SCHEDULE FOUR - DEVELOPMENT SERVICES

1.      DEVELOPMENT LICENCE

        1.1.   In  consideration  of Gamefactory  complying with its obligations
               set out in this Agreement, Gizmondo hereby grants the Gamefactory
               a   terminable,   personal,   non-transferable,   non-assignable,
               non-exclusive,  royalty free,  limited licence (without the right
               to sub-license and/or sub-contract) to use the rights licensed to
               Gizmondo by virtue of clause 2.1 of this Agreement and such other
               Intellectual  Property Rights as may be agreed with Gizmondo from
               time to time ("Underlying Game Rights"):

                1.1.1.  in the  Territory,  only at  Gamefactory's  location (as
                        such as  location  is  agreed  from  time  to time  with
                        Gizmondo) ("Gamefactory's Location");

                1.1.2.  only for the purpose of the Gamefactory's  provision of,
                        and  only  whilst  the  Gamefactory  is  providing,  its
                        services to  Gizmondo as set out in  paragraph 3 of this
                        Schedule  Four,  to bring about the design,  development
                        and programming of the applicable  Gizmondo Game Product
                        for the Concepts:

                a)      Anastasia
                b)      Silver Surfer
                c)      Tin Tin
                d)      Cheerios
                e)      Dominion Wars
                f)      D59: The fallen
                g)      M&Ms
                h)      Outlaw Golf
                i)      Real War
                j)      Weather Control; and

                1.1.3.  which  does not  include  any right for the  Gamefactory
                        either  itself or  through  others to  design,  develop,
                        program,  publish or distribute any product developed in
                        whole or in part on, using or concerning any such rights
                        (or any part thereof),

               where such a limited  licence is subject always to Gizmondo's own
               licensors'  restrictions  (as may be  communicated to Gamefactory
               from time to time) and the right for Gizmondo to terminate such a
               licence  immediately  on written  notice to the  Gamefactory  (in
               which  case,   notwithstanding   any  other  provisions  of  this
               Agreement, the relevant rights licensed to Gamefactory under this
               paragraph  and all copies  thereof  must be  returned to Gizmondo
               immediately and Gamefactory's limited licence thereof shall cease
               immediately also).

        1.2.   In consideration of the payment by Gizmondo to Gamefactory of the
               Development Fee (the sufficiency of which is hereby  acknowledged
               by the Gamefactory),  to be paid in accordance with Schedule Six,
               Gamefactory  hereby  transfers,  sells and  assigns  to  Gizmondo
               absolutely  with full title  guarantee  throughout  the Territory
               (where, to the extent necessary,  this shall operate as a current
               assignment of future rights):

                1.2.1.  any and all Code in the Gizmondo Game Product; and

                                       22
<PAGE>

                1.2.2.  any and all Intellectual Property Rights in the Gizmondo
                        Game Product,

                which may arise pursuant to Gamefactory's  provision of services
                under this  Schedule  (or have  arisen in  contemplation  of the
                matters set out in this Schedule) save for any of  Gamefactory's
                Software  (which shall be subject to the licence  provisions  in
                paragraph 5.5 below).

        1.3.    Without   limitation  (and  without  prejudice  to  any  of  the
                Gamefactory's  obligations  under this Agreement),  by virtue of
                such the matters set out in  paragraph  1.2,  Gizmondo  (whether
                itself,   through   Gizmondo's   Affiliates   or   through   any
                sub-developers   or   sub-contractors)   to,   anywhere  in  and
                throughout  the world (and in whatever  languages),  without any
                reference to the Gamefactory:

                1.3.1.  make such changes,  adaptations  and/or  adjustments  as
                        Gizmondo may  consider  necessary or desirable to render
                        the Gizmondo Game Product fully  operable on or with the
                        Gizmondo   Device   and/or   attractive   to   End-Users
                        (including  without  limitation whether such changes are
                        necessary or desirable to accommodate  the  capabilities
                        and requirements of the Device,  any software therein or
                        therefore,    or    any    relevant    telecommunication
                        transmission  networks on which or with which the Device
                        may be used or associated);

                1.3.2.  produce, localise, copy, manufacture, package, maintain,
                        promote,  advertise,  market, publish, sell, rent, lend,
                        distribute,  issue or communicate to the public,  all by
                        whatever  means  (whether in existence now or created in
                        the future),  license (whether by way or  sub-licensing,
                        sub-contracting  or otherwise) and otherwise exploit the
                        Gizmondo  Game  Product for use on or with the  Gizmondo
                        Device (including  without  limitation  producing and/or
                        copying  gold  discs/gold   masters  of  the  applicable
                        Gizmondo Game Product); and

                1.3.3.  produce, localise, copy, manufacture, package, maintain,
                        promote,  advertise,  market, publish, sell, rent, lend,
                        distribute,  issue to the public,  all by whatever means
                        (whether  in  existence  now or created in the  future),
                        license (whether by way or sublicensing, sub-contracting
                        or otherwise) and otherwise exploit Merchandise.

        1.4.    Gamefactory   agrees   that  all   developers   engaged  by  the
                Gamefactory to develop any Gizmondo Game Product pursuant to the
                operation   of  this   Agreement   shall  be  employees  of  the
                Gamefactory, who must sign an 'Employee Agreement' substantially
                in the form set out in Schedule Six, in each case prior to their
                so working on the  Gizmondo  Game  Product.  All such  `Employee
                Agreements' shall be provided to Gizmondo on demand.

        1.5.    Notwithstanding  all of the  foregoing or anything  else in this
                Agreement,  Gamefactory  acknowledges  and agrees  that  nothing
                herein  requires or creates any obligation on or expectation for
                Gizmondo  to  exploit  any  rights   provided  it  hereunder  by
                Gamefactory,  to exploit any Gizmondo Game Product, or to expend
                any time,  resources or funds in respect of any of the same,  or
                to publish and  release to the public any units of the  Gizmondo
                Game Product  (or,  once  started,  to continue to do any of the
                same).

                                       23
<PAGE>

2.      GAME DEVELOPMENT

        2.1.    Gamefactory shall design,  develop and program the Gizmondo Game
                Products referred to in paragraph 1.1.2 above in accordance with
                the game  design/technical  requirement  document as the parties
                shall   agree   (the   parties   acting    reasonably)    ("Game
                Design/Technical  Requirement Document"), based on and using the
                Underlying Game Rights, at Gamefactory's  Location, for the Game
                to be solely compatible with and playable on the Gizmondo Device
                (including  without  limitation  the  version  thereof as at the
                Commencement Date as well as the forthcoming socalled widescreen
                version thereof, in each case ensuring backwards compatibility),
                including, but without limitation, making revisions requested by
                Gizmondo  throughout such a design,  development and programming
                process,  all in accordance  with the delivery  dates set out in
                Schedule  Five,  The parties  hereby agree that the  Gamefactory
                shall be  solely  responsible  for the  purchase  of any and all
                development  equipment  and/or tools necessary to so develop the
                applicable Gizmondo Game Products,  save for the matters set out
                in paragraph 3 below.  Gamefactory shall also be responsible for
                providing all labour necessary to so develop the same.

        2.2.    Gamefactory  shall use the full-time  efforts of all  developers
                engaged by the  Gamefactory to develop the Game, and Gamefactory
                may  only so use  such  developers  who  have  signed  'Employee
                Agreement'  pursuant to the  operation of  paragraph  1.4 above.
                Such   developersmay   only  be  changed  or  substituted   with
                Gizmondo's  prior written  consent.  Gamefactory  represents and
                warrants to Gizmondo that all such  developers  are employees of
                the Gamefactory and that each of them has so signed an 'Employee
                Agreement'   Gamefactory  may  not  use  freelance   developers,
                consultants  or any third  party  contractors  to so develop the
                Game without  Gizmondo's prior written consent.  Should Gizmondo
                so  consent,  such  consent  shall  be  subject  to any such use
                freelance developers, consultants or any third party contractors
                signing an  agreement  acceptable  to  Gizmondo  which,  without
                limitation,  will provide for all  intellectual  Property Rights
                arising from their relevant work to be owned by the  Gamefactory
                (whereby it will be subject to the  operation of  paragraph  1.4
                above),  as well as imposing  restrictions on them regarding the
                use and disclosure of Gizmondo's Confidential Information.

        2.3.    Gamefactory  shall keep Gizmondo fully and effectively  informed
                and advised of the  development of the applicable  Gizmondo Game
                Products, including, without limitation:

                2.3.1.  providing to Gizmondo  such matters and materials as are
                        required  pursuant to the  operation of Schedule Six, in
                        accordance with their relevant delivery dates;

                2.3.2.  providing  Gizmondo  with such copies of the  applicable
                        Gizmondo  Game  Products  at  their  relevant  stage  of
                        development,  on a medium acceptable to Gizmondo, as may
                        be requested by Gizmondo;

                2.3.3.  informing  Gizmondo of any  developments  or issues that
                        arise  that may  impact  (a)  Gamefactory's  ability  to
                        comply   with  any  term  of  this   Agreement   or  (b)
                        Gamefactory's ability to comply with the delivery of any
                        matters or materials or meet any  requirement as set out
                        in Schedule Six, in accordance with their

                                       24
<PAGE>

                        relevant Delivery Dates or (c) the Gamefactory's ability
                        to comply with any of Gizmondo's requests hereunder.

        2.4.    Gizmondo   shall  have  the  right,   at  any  time  during  the
                development of the applicable  Gizmondo Game Products,  to visit
                the  Gamefactory's   premises   (including   without  limitation
                Gamefactory's  Location)  for  the  purpose  of  inspecting  and
                evaluating the progress and quality of the  applicable  Gizmondo
                Game Products,  provided that  Gamefactory is given at least one
                Business Day's notice, and such a visit occurs during a Business
                Day.

        2.5.    On or before each  Delivery  Date or within two Business Days of
                Gizmondo's  request  (as  applicable),   the  Gamefactory  shall
                deliver to the Gizmondo for Gizmondo's approval:

                2.5.1.  such matters and  materials as are required  pursuant to
                        the  operation  of  Schedule  Six or a Gizmondo  request
                        pursuant to the operation of clause 2.3.2 above; and

                2.5.2.  a  detailed  projected   development  schedule  for  the
                        applicable  Gizmondo Game Products for the entire period
                        following  that  relevant   Delivery  Date  or  Gizmondo
                        request pursuant to the operation of clause 2.3.2 above;
                        and

                2.5.3.  such  other   details  and   documentation   as  may  be
                        reasonably requested by Gizmondo.

        2.6.    Following Gamefactory's  compliance with paragraph 2.5, Gizmondo
                will evaluate the relevant  matters and materials  within thirty
                days  from  receipt  of  all  such  matters  and  materials,  to
                determine   whether   Gizmondo   wishes  to  continue  with  the
                development  of the  applicable  Gizmondo  Game  Products or, at
                Gizmondo's   sole   discretion,    terminate   this   Agreement.
                Notwithstanding  any such  termination (or anything else set out
                in this Agreement):

                2.6.1.  all the matters and  materials  developed  up until such
                        date of  termination  shall be subject to paragraph 1.2;
                        and

                2.6.2.  Gizmondo shall have the right (at its exclusive  option)
                        to develop or have  developed  the  applicable  Gizmondo
                        Game  Products,   without  further   obligation  to  the
                        Gamefactory.

        2.7.    Upon  Gamefactory's  completion of the applicable  Gizmondo Game
                Products,  Gamefactory shall submit to the Gizmondo by the final
                Delivery  Date final  versions of the  applicable  Gizmondo Game
                Products, in triplicate, on a medium acceptable to Gizmondo, for
                Gizmondo's  evaluation.  Gamefactory  shall  promptly  make such
                revisions  as requested  by  Gizmondo,  whereby the  Gamefactory
                shall  submit to the  Gizmondo  new  versions of the  applicable
                Gizmondo Game Products, in triplicate, on a medium acceptable to
                Gizmondo, for Gizmondo's  evaluation,  whereby this process will
                continue until either Gizmondo approves the applicable  Gizmondo
                Game Products or Gizmondo  rejects the applicable  Gizmondo Game
                Products  as not being in  compliance  with this  Agreement  (in
                which  case the  Gamefactory  shall be deemed to be in breach of
                this Agreement)  Gizmondo will notify the Gamefactory in writing
                when  Gizmondo  has so approved  the  applicable  Gizmondo  Came
                Products  (whereby  such  approval in no way reduces or obviates
                any of Gamefactory's obligations under this Agreement).

                                       25
<PAGE>

        2.8.    Notwithstanding  any of the  foregoing or anything  else in this
                Agreement, the Gamefactory acknowledges that:

                2.8.1.  Gizmonodo has high  standards of quality for games to be
                        played on the Gizmondo  Device and that  Gamefactory may
                        be  required  to  submit  revisions  to  the  applicable
                        Gizmondo Game Products at  Gizmondo`s  sole  discretion;
                        and

                2.8.2.  notwithstanding Gamefactory's requirement to comply with
                        the   Game   Design/Technical    Requirement   Document,
                        Gamefactory  shall comply with  Gizmondo's  then current
                        standards and guidelines  for game content,  quality and
                        branding in developing  (including,  without limitation,
                        Gizmondo's  game  certification   requirements  for  the
                        Gizmondo Device).

        2.9.    Notwithstanding  any of the  foregoing or anything  else in this
                Agreement,  Gamefactory  acknowledges  and  agrees  that it must
                deliver to the Gizmondo,  on a medium acceptable to Gizmondo,  a
                final version of the  applicable  Gizmondo  Game Products  which
                complied   with  (as  a  minimum,   the  Game   Design/Technical
                Requirement  Document) that is fully  developed,  bug-tested and
                ready for  manufacturing  by no later  than 12  months  from the
                Commencement  Date.  Concurrently  therewith,  Gamefactory shall
                deliver  also to the  Gizmondo a complete  set of all  materials
                which embody and represent the Intellectual  Property Rights and
                Code in respect of the same, in a form acceptable to Gizmondo.

        2.10.   As  requested  by  Gizmondo  from  time to time  and in a format
                requested by Gizmondo,  Gamefactory  shall provide to Gizmondo a
                complete  set of  back-up  tapes  or  disks  for the  applicable
                Gizmondo  Game  Products  during  their  development  hereunder.
                Notwithstanding  the foregoing,  Gamefactory shall implement and
                maintain its own reliable and effective procedures for:

                2.10.1. the  reconstruction of lost or altered data or programs;
                        and

                2.10.2. the  back-up  of data and  programs  on a  frequent  and
                        regular basis.

        2.11.   At Gizmondo's  request (and at no  additional  cost to Gizmondo,
                save for the Development Fee), Gamefactory shall:

                2.11.1. convert  the  format  of the  applicable  Gizmondo  Game
                        Products  for the  purposes  of  compatibility  with all
                        versions and variations of the Gizmondo Device;

                2.11.2. convert any text  displayed in the  applicable  Gizmondo
                        Game Products from one language into different languages
                        (provided  that  Gizmondo   shall  be  responsible   for
                        delivering  to  the   Gamefactory   the  text  for  such
                        different languages); and

                2.11.3. make  such  other  version   specific   changes  in  the
                        applicable  Gizmondo Game Products,  including,  but not
                        limited  to  audio  changes,   as  my  be  requested  by
                        Gizmondo,  for the  purpose  of  making  the  applicable
                        Gizmondo Game Products culturally and/or  linguistically
                        acceptable in different countries.

                                       26
<PAGE>

        2.12.   When any applicable  Gizmondo Game Products  conversion referred
                to under paragraph 2.11 above has been completed (where it shall
                be so completed by Gamefactory promptly, but in any event within
                20  Business  Days  from  Gizmondo's  written  request  for such
                conversion),  Gamefactory  shall  deliver  to  Gizmondo  a final
                version of such converted applicable Gizmondo Game Products,  on
                the medium as requested by Gizmondo,  for Gizmondo's evaluation.
                Gizmondo shall notify  Gamefactory of any revisions which may be
                required to any of such delivered converted  applicable Gizmondo
                Game Products.

        2.13.   Throughout Gamefactory's design,  development and programming of
                the Game pursuant to this paragraph 3, Gamefactory  shall effect
                and maintain adequate security measures to safeguard the product
                of  its  work  from  unauthorised  access,  use  or  copying  or
                disclosure to third parties.

        2,14.   Gamefactory  shall keep accurate and up-to-date  written records
                on  Gamefactory's  compliance  with the  matters set out in this
                paragraph 2 as Gizmondo may from time to time reasonably require
                or, in default of any specific requirement by Gizmondo,  then in
                accordance  with  good  data  development  and  data  processing
                practice and shall allow Gizmondo on request to inspect and take
                copies  of such  records  from  time to  time,  pursuant  to the
                operation of paragraph 2.4 above.

        2.15.   Notwithstanding  the provisions of paragraph 1,1 (and Gizmondo's
                right  to  termination   the  limited   licence   thereunder  in
                accordance with its terms),  following Gamefactory's  completion
                of the final version of the applicable Gizmondo Game Products as
                referred  to in  and  following  its  delivery  to  Gizmondo  in
                accordance  with  paragraph 2.9, and  notwithstanding  any other
                provisions of this Agreement, the Underlying Game Rights and all
                copies  thereof  Must be returned to  Gizmondo  immediately  and
                Gamefactory's  limited licence  thereof shall cease  immediately
                also.

3.      GIZMONDO DEVELOPMENT TOOLS

        3.1.    Gamefactory  acknowledges  that its  receipt,  use and return of
                Gizmondo's  software  and other  development  tools  required to
                enable  a   reasonably   skilled   programmer   to   develop  an
                entertainment  game for use on the  Gizmondo  Device  ("Gizmondo
                Development  Tools") shall be subject to the terms of Gizmondo's
                'Standard  Development Kit Licence Agreement'.  Gamefactory must
                enter into such an agreement with Gizmondo before it may receive
                and use any such  Gizmondo  Development  Tools,  which  (without
                prejudice to the terms of such an agreement) may only be so used
                for the purposes of this Agreement.

4.      EXCLUSIVITY

        4.1.    Notwithstanding  any other provision of this  Agreement,  whilst
                providing  its services  pursuant to this  Schedule  Gamefactory
                shall not directly or  indirectly  design,  develop,  programme,
                distribute,  market,  advertise, sell or issue or communicate to
                the public any Competing Game.

5.      INTELLECTUAL PROPERTY RIGHTS AND CREDITS

        5.1.    As  between  the  parties  hereto,  all of the  Underlying  Game
                Rights,  the Gizmondo  Development Tools and the Gizmondo Device
                provided by  Gizmondo  and (where  permitted  under the terms of
                this Agreement) any copies of the made by Gamefactory, including
                all Intellectual Property

                                       27
<PAGE>

                Rights  therein or  relating  thereto  are and shall  remain the
                property of Gizmondo.

        5.2.    Gamefactory   agrees  that   (notwithstanding   the   assignment
                provisions in paragraph 1.2 above):

                5.2.1.  as  between  the  parties  hereto,  all right  title and
                        interest (including without limitation copyright and all
                        Intellectual   Property  Rights  and  other  proprietary
                        rights)  worldwide in and to the Underlying Game Rights,
                        the Gizmondo  Development Tools and the Device,  and all
                        improvements  thereof,   shall  belong  exclusively  and
                        absolutely to Gizmondo  (save that nothing  herein shall
                        be taken to preclude  Gamefactory  from  challenging the
                        validity  of  any   Intellectual   Property   Rights  of
                        Gizmondo) (and to the extent necessary this clause shall
                        operate  as an  assignment  of  such  copyright  and all
                        Intellectual   Property  Rights  and  other  proprietary
                        rights in respect of the  foregoing  by  Gamefactory  to
                        Gizmondo,  where this shall operate where  required as a
                        current assignment of future rights); and

                5.2.2.  nothing  in this  Agreement  shall be deemed to grant or
                        assign  to  Gamefactory  any  proprietary  or  ownership
                        interest  in or  to  the  Underlying  Game  Rights,  the
                        Gizmondo  Development  Tools,  the  Device  or any other
                        Intellectual   Property   Rights  of   Gizmondo  or  the
                        Gizmonodo  Affiliates,  other than the  licensed  rights
                        specifically   set  out  in  this  Agreement,   and  the
                        Gamefactory  hereby  recognises that no such other grant
                        or assignment is given to it,

        5.3.    Gizmondo may in its  exclusive  discretion  and at its exclusive
                option, and without (if Gizmondo so determines) any reference to
                or input from whatsoever or howsoever from Gamefactory, take all
                such steps as it deems  necessary  and/or  desirable to protect,
                defend and exploit  any other  Intellectual  Property  Rights of
                Gizmondo and/or any Gizmondo Affiliate.

        5.4.    Gamefactory will not at any time:

                5.4.1.  do or cause to be done any act or thing which contesting
                        or in any way imparing or intending to impair Gizmondo's
                        or  any  of  Gizmondo's   Affiliates'  (or  any  of  the
                        licensors')   Intellectual  Property  Rights  (including
                        without limitation any Intellectual Property Right which
                        may subsist in the Underlying Game Rights);

                5.4.2.  represent that it has any right, title or interest in or
                        to any of Gizmondo's  or any of  Gizmondo's  Affiliates'
                        (or any of the licensors')  Intellectual Property Rights
                        (including without limitation any Intellectual  Property
                        Right which may subsist in the Underlying Game Rights);

                5.4.3.  directly or indirectly reverse engineer or aid or assist
                        or  authorise   or  encourage   others  in  the  reverse
                        engineering  of  any  party  of  Gizmondo's  or  any  of
                        Gizmondo's   Affiliates'  (or  any  of  the  licensors')
                        Intellectual   Property   Rights  in  any  Device,   the
                        Underlying Game Rights,  the Gizmondo  Development Tools
                        or any  element  or  part  thereof  (without  limitation
                        'reverse

                                       28
<PAGE>

                        engineering'  means (a) the x-ray  electronic  scanning,
                        and/or physical or chemical  stripping of  semiconductor
                        components;  and/or (b) the disassembly,  decompilation,
                        decryption,  simulation,  debugging  or code  tracing of
                        object code or executable code),

                save that  such  restrictions  shall  only  apply to the  extent
                permissible  by applicable law and nothing herein shall be taken
                to preclude the Gamefactory from challenging the validity of any
                Intellectual  Property  Rights of Gizmondo or any of  Gizmondo's
                Affiliates.

        5.5.    Gamefactory   hereby   grants   to   Gizmondo,    a   perpetual,
                non-exclusive,  royalty  free,  worldwide  licence and rights to
                use,  sub-license,  reproduce and  manufacture  the  Gamefactory
                Software as  Gizmondo  may deem  appropriate  for the purpose of
                producing,   localising,  copying,   manufacturing,   packaging,
                maintaining,   promoting,  advertising,  marketing,  publishing,
                selling,    renting,   lending,    distributing,    issuing   or
                communicating  to the public,  all by whatever means (whether in
                existence now or created in the future),  licensing  (whether by
                way  or   sub-licensing,   sub-contracting   or  otherwise)  and
                otherwise exploiting the applicable Gizmondo Game Products,  any
                applicable   Gizmondo   Game   Product   Sequels  or  any  other
                Intellectual  Property  Rights of  Gizmondo  which  are  related
                thereto.

6.      INFRINGEMENT

        6.1.   In the event that Gamefactory learns of any claim (whether actual
               or  threatened)  alleging that the  Underlying  Game Rights,  the
               Game, any Game Sequel,  Game PI, Game Materials,  any Device, any
               game produced for any Device, any of Gizmondo's and/or Gizmondo's
               Affiliates' and/or Gizmondo's  Licensers'  Intellectual  Property
               Rights   infringes   or   misappropriates   any   third   party's
               Intellectual  Property Rights or other rights, or that any of the
               same are being infringed or  misappropriated  by any third party,
               then  the  Gamefactory  shall  promptly  notify  Gizmondo.   Fine
               Gamefactory  shall  not make any  admissions  or other  statement
               concerning any of the same without  Gizmondo's  specific  written
               consent.

        6.2.   As between the parties,  Gizmondo shall have the exclusive right,
               in its exclusive  discretion and at its exclusive option (whether
               in its own name or that of the Gamefactory or both),  and without
               (if  Gizmondo  so  determines)  any  reference  to or input  from
               whatsoever or howsoever from the Gamefactory,  to commence and/or
               defend a legal action or  negotiate a settlement  relating to any
               alleged  infringement  by or of the Underlying  Game Rights,  the
               Game, any Game Sequel,  Game PI, Game Materials,  any Device, any
               game produced for any Device, any of Gizmondo's and/or Gizmondo's
               Affiliates' and/or Gizmondo's  Licensers'  Intellectual  Property
               Rights.

        6.3.   Notwithstanding  anything  else in this  Agreement  (and  without
               prejudice  to the  warranties  provided  under this  Agreement to
               Gizmondo),   at   Gizmondo's   reasonable   cost   (provided  the
               Gamefactory has complied in full with its obligations  under this
               Agreement and continues to assist Gizmondo  promptly  pursuant to
               the  operation  of this  clause  7), the  Gamefactory  shall give
               Gizmondo  assistance  and  cooperation  in any such legal  action
               referred to in clause 7.2,  including  without  limitation,  such
               assistance and cooperation  extends to providing and/or executing
               necessary  documents and evidence to enable Gizmondo,  in its own
               name

                                       29
<PAGE>

               and/or on behalf of the Gamefactory or jointly,  andor with or on
               behalf of any of Gizmondo'  Licensors'  names, to bring or defend
               the legal  action.  As between  the  parties,  Gizmondo  shall be
               entitled to retain any recovery or damages  collected as a result
               of such legal action or negotiated  settlement.  No settlement by
               Gizmondo  shall impose a monetary  liability  on the  Gamefactory
               without the Gamefactory's consent to such a settlement.

7.      WARRANTIES AND INDEMNITIES

        7.1.    Notwithstanding  any other warranties or indemnities given under
                this  Agreement,   Gamefactory  hereby  further  represents  and
                warrants  to  Gizmondo  that   (Gamefactory   acknowledging  and
                agreeing that these  representations  are a material  inducement
                for Gizmondo to enter into this Agreement):

                7.1.1.  it has the exclusive right, title and interest to enable
                        the  transfer,  sale and  assignment  to Gizmondo of all
                        those rights, materials and other matters set out in and
                        in  accordance  with  paragraph  1.2 and the  licence in
                        accordance with paragraph 5.5 and that there is no legal
                        obstacle to the dealing with such rights,  materials and
                        other  matters.  Without  limitation,  a breach  of this
                        clause shall be  considered  to be a material  breach of
                        this Agreement by the Gamefactory;

                7.1.2.  there  is  no  outstanding  claim,  or  knowledge  of  a
                        potential claim, against any right, title or interest of
                        any kind whatsoever in and to any such rights assignment
                        to  Gizmondo  and/or to any of  Gamefactory's  Software.
                        Without  limitation,  a breach of this  clause  shall be
                        considered to be a material  breach of this Agreement by
                        the Gamefactory;

                7.1.3.  to the fullest extent permissible by applicable laws, it
                        hereby  provides  a full  waiver  of any and  all  moral
                        rights (or  similar  rights) in the rights  assigned  to
                        Gizmondo under the operation hereof;

                7.1.4.  to the fullest extent permissible by applicable laws, it
                        has  obtained a full waiver of any and all moral  rights
                        (or similar rights)  throughout the world from all those
                        involved in the the  applicable  Gizmondo  Game Products
                        (including without limitation  Gamefactory's  developers
                        referred to in paragraph 1.4)

                7.1.5.  it  has  not  transferred,   sold,  assigned,  licensed,
                        rented,   lent,   used  as  any  security  or  otherwise
                        encumbered  or otherwise  impaired  any right,  title or
                        interest  in or  to  the  rights  assigned  to  Gizmondo
                        hereunder or  Gamefactory's  Software,  in a manner that
                        conflicts   with  the   operation   of  this   Agreement
                        (including   without   limitation   the   operation   of
                        paragraphs   1.2,  1.3  and/or  5.5   hereof).   Without
                        limitation,  a breach of this clause shall be considered
                        to  be a  material  breach  of  this  Agreement  by  the
                        Gamefactory;

                7.1.6.  it will not  hereafter  attempt or purport to use,  deal
                        with, exploit,  transfer,  sell, assign,  license, rent,
                        lend,  use as any  security  or  encumber  or  otherwise
                        impair any right, title or

                                       30
<PAGE>

                        interest  in or  to  the  rights  assigned  to  Gizmondo
                        hereunder  or the  Gamefactory's  Software,  in a manner
                        that  conflicts  with the  operation  of this  Agreement
                        (including   without   limitation   the   operation   of
                        paragraphs   1.2,  1.3  and/or  5.5   hereof).   Without
                        limitation,  a breach of this clause shall be considered
                        to  be a  material  breach  of  this  Agreement  by  the
                        Gamefactory;

                7.1.7.  save  to  the  extent  permitted  by  applicable  law or
                        expressly  permitted by Gizmondo or a Gizmondo Affiliate
                        (as  appropriate)   (whether  under  this  Agreement  or
                        otherwise),  it will not hereafter attempt or purport to
                        use,  deal  with,  exploit,   transfer,   sell,  assign,
                        license,  rent,  lend,  use as any security or otherwise
                        encumber  or  otherwise  impair  any  right,   title  or
                        interest in or to any of  Gizmondo's  and/or  Gizmondo's
                        Affilites' Intellectual Property Rights

                7.1.8.  the rights assigned to Gizmondo hereunder, Gamefactory's
                        Software and the applicable Gizmondo Game Products:

                a)      are  original  and do  not  and  will  not  infringe  or
                        misappropriate the Intellectual Property Rights or other
                        legal rights of any third parties anywhere in the world.
                        Without  limitation,  a breach of this  clause  shall be
                        considered to be a material  breach of this Agreement by
                        the Gamefactory;

                b)      do not contain  anything which is obscene,  blasphemous,
                        defamatory and/or likely (by reason of their content) to
                        expose Gizmondo  and/or any of Gizmondo's  Affiliates to
                        any civil or criminal proceedings anywhere in the world.
                        Without  limitation,  a breach of this  clause  shall be
                        considered to be a material  breach of this Agreement by
                        the Gamefactory; and

                c)      are complete, are suitable for commercial production and
                        distribution   and  issue  to  the  public   (and  other
                        exploitation  pursuant the operation of paragraphs  1.2,
                        1.3  and/or  5.5  hereof)  by  Gizmondo  for  use on the
                        GizmondoDevice,  conform  to the  Game  Design/Technical
                        Requirements Document;

                d)      do not contain any Content or other content which is not
                        covered  by  the  Game   Design/Technical   Requirements
                        Document,  including,  without  limitation,   subliminal
                        political,  cultural,  religious,  or sexual messages or
                        meanings;

                7.1.9.  all Code forming part of the rights assigned to Gizmondo
                        hereunder,  the  applicable  Gizmondo  Game Products and
                        Gamefactory's    Software   are   free   from   material
                        programming bugs and/or defects;

                7.1.10. the rights assigned to Gizmondo hereunder, Gamefactory's
                        Software and the applicable Gizmondo Game Products,  are
                        accurate  and  complete,  and  have  been  and  will  be
                        prepared  using  all  the  reasonable   skill  and  care
                        expected  at a level  commensurate  with  best  industry
                        practice  and  comply  with all  applicable  laws in the
                        world; and

                7.1.11. Gamefactory and Gamefactory's  developers referred to in
                        paragraph 1.4 have the know-how, skill and experience to

                                       31
<PAGE>

                        design,  develop and program the the rights  assigned to
                        Gizmondo  hereunder,   Gamefactory's  Software  and  the
                        applicable  Gizmondo  Game  Products  (all in accordance
                        with the  terms  of this  Agreement,  including  without
                        limitation  paragraph 3) and are otherwise fully capable
                        of performing its obligations  under this Agreement,  in
                        accordance   with  the  terms  and  conditions  of  this
                        Agreement.

        7.2.    Gamefactory  hereby agrees to indemnify,  defend (subject always
                to paragraph 6 above) and hold harmless  Gizmondo on demand from
                and against  any and all suits,  losses,  liabilities,  damages,
                awards,  claims,  settlements,  costs  and  expenses,  including
                reasonable legal fees, costs and other expenses,  arising out of
                or  otherwise  relating  to  a  breach  by  Gamefactory  of  its
                warranties,   representations,   obligations   and/or  covenants
                contained in this  Agreement.  Such an indemnity shall extend to
                Gizmondo's  Affiliates  and  Gizmondo's  licensors.  This clause
                shall survive the expiry or  termination  of this  Agreement for
                whatever reason.

8.      TERMINATION OF ANY MATTER REFERRED TO IN THIS SCHEDULE

        8.1.    Without  prejudice to anything  else set out in this  Agreement,
                Gizmondo  may  terminate  any  particular   development  service
                provided  by  Gamefactory   immediately  on  written  notice  to
                Gamefactory if at any time before the Gamefactory's  delivery to
                Gizmondo of the 'Gold  Master' (as referred to in Schedule  Six)
                if Gizmondo is dissatisfied  with the progress and/or quality of
                the design,  development  and/or  programming  of the applicable
                Gizmondo   Game  Product   pursuant  to  paragraph  3.  On  such
                termination the provisions of clause 8.2 shall apply,

        8.2.    In the event of a notice  coming  within the terms of  paragraph
                8.1 above (but without prejudice to any other rights or remedies
                which  Gizmondo may have against  Gamefactory  for the breach or
                non-performance of any of the terms of this Agreement):

                8.2.1.  Gamefactory  must  deliver  to  Gizmondo,  on  a  medium
                        acceptable  to  Gizmondo,  the  latest  version  of  the
                        applicable   Gizmondo  Game  Product   together  with  a
                        complete set of the relevant  materials therefor and any
                        other  materials  which  embody and  represent  the Code
                        therefor   and/or  any   Intellectual   Property  Rights
                        therein,  in a form  acceptable  to Gizmondo,  which are
                        then in existence; and

                8.2.2.  Gamefactory shall also return forthwith to Gizmondo,  in
                        respect of the  applicable  Gizmondo Game  Product,  the
                        Underlying  Game  Rights (and  copies  thereof)  and all
                        other   materials  and  other   matters   embodying  any
                        Intellectual  Property  Rights  and any  and  all  other
                        property (and all copies thereof) on any media belonging
                        to  Gizmondo   and/or   Gizmondo's   Affiliates   and/or
                        Gizmondo's licensors or received from any third party on
                        behalf of them that was provided to Gamefactory under or
                        in  contemplation  of  the  matters  referred  to in the
                        Schedule,  which is in the  Gamefactory's  possession or
                        under its  control  and the  Gamefactory  shall  confirm
                        promptly in writing to Gizmondo  that it has complied in
                        all respects with this  paragraph  8.2.2 if requested to
                        do so by Gizmondo;

                                       32
<PAGE>

                8.2.3.  provide   that  all  such   materials   referred  to  in
                        paragraphs  8,2.1 and 3.2.2 above have been delivered to
                        Gizmondo,   Gizmondo  shall  pay  to  Gamefactory   sums
                        properly due to the  Gamefactory  for work  completed in
                        accordance  with  Agreement by the  Gamefactory up until
                        that date of  termination  in respect of the  applicable
                        Gizmondo  Game  Product,  but only to the  extent  as is
                        reasonable   taking  into  account  any  payments  which
                        Gizmondo has already paid; and

                8.2.4.  that proportion of the applicable  Development Fee which
                        remains to be paid shall no longer be due and payable to
                        Gamefactory  by  Gizmondo  and  that  proportion  of the
                        applicable  Development  Fee which has already been paid
                        to the  Gamefactory  by  Gizmondo  shall  be  repaid  to
                        Gizmondo  immediately  (subject only to paragraph  8.2.3
                        above).

                                       33
<PAGE>

                         SCHEDULE FIVE - DEVELOPMENT FEE

The total  Development Fee in respect of each Gizmondo Game Product will be paid
in accordance with the following milestones:

Payment number     Payment amount         Milestone             Gamefactory's
--------------     --------------         ---------             --------------
                                                                Delivery Date
                                                                -------------

1.                 50% of relevant        Commencement
                   Development  Fee,      Date
                   payable to the
                   relevant account
                   referred to in
                   paragraph 6 of
                   Schedule Three.

2.                 50% of relevant        Delivery to           No more than 12
                   Development Fee,       Gizmondo of the       months from the
                   payable to the         Gizmondo approved     Commencement
                   relevant account       'Gold Master' for     Date
                   referred to in         relevant Gizmondo
                   paragraph 6 of         Game Product
                   Schedule Three.

                                       34
<PAGE>

                        SCHEDULE SIX - EMPLOYEE AGREEMENT

          (This is an important legal document - - read it carefully.)

THE THREE PARTIES TO THIS EMPLOYEE AGREEMENT ARE:

Gizmondo Europe Limited ("Gizmondo"),  the undersigned developer  ("Developer"),
and the undersigned employee of the Developer ("Employee").

AGREEMENT:

THE PARTIES HEREBY AGREE AS FOLLOWS:
Definitions:

(i)     "Agreement"  refers to the agreement  between Gizmondo and the Developer
dated [] regarding the  development of the video game currently with the working
title "[ ]" (the "Game").

(ii)    "Intellectual  Property Rights" means all legal rights pertaining to the
Game, as well as any Game  prototypes  or  conversions,  including,  but without
limitation,  the Game's  source and object code,  any and all  intellectual  and
industrial property rights of whatever nature, anywhere in the world, subsisting
in and to the Game,  whether  recorded or registered or  registerable or applied
for in any manner or otherwise,  whether currently in existence or otherwise and
whether vested or contingent,  including without limitation, patents, registered
designs,  trade marks,  service marks,  logos,  signs, trade dress,  business or
trading names or other  designations,  design rights,  copyright,  semiconductor
topography  rights,  utility models and mask works,  database rights,  rights in
databases, know-how, domain names, trade secrets, inventions, ideas, discoveries
and know-how,  applications for and the right to apply for any of the foregoing,
together  with any  rights to sue for past  infringement,  and all  other  legal
rights anywhere in the world protecting such intangible  property,  in each case
for their  full term (and all  extensions,  reversions,  revivals  and  renewals
thereof);

(iii)   "Gizmondo's Confidential  Information" means the Game, together with any
and all technical,  financial and/or other information  relating to the business
or affairs of or emanating  (directly or indirectly) from Gizmondo or concerning
the Game which is (a) either non public, confidential, proprietary in nature, or
comprises a compilation of the same which is otherwise  public but which is in a
form not  publicly  known  and/or (b)  disclosed  and/or made  available  to the
Developer  and/or any employee of the Developer  orally and/or in written,  hard
copy and/or  electronic  form,  on diskettes  and/or on any other  storage media
(whether known now or invented hereafter), where the foregoing:

        (a) shall include, without limitation,  any oral or written instructions
        given to the  Developer  and/or any of its employees by Gizmondo and any
        acts or omissions  conducted by the Developer  arising from instructions
        given to the Developer; and

        (b)  shall   include,   without   limitation,   any  and  all  analyses,
        compilations,  forecasts,  studies  and/or other  documents  prepared by
        Developer and/or any of its employees which contain or otherwise reflect
        any of the foregoing; and

                                       35
<PAGE>

        (c)  shall  include,  without  limitation,  any  technical,  commercial,
        financial,  marketing,  business or other data, know-how,  trade secrets
        and other  information  of  whatever  nature  given by  Gizmondo  to the
        Developer  (and/or its employees)  (whether  before or after the date of
        the  Agreement) in relation to the Agreement and relating to Gizmondo or
        their respective  businesses or affairs (whether written or oral, in any
        form or medium, whether known now or invented hereafter); but

        (d) shall not, however, include any of the foregoing which the Developer
        can  show  (a) is  already  known  to the  Developer  and/or  any of its
        employees  otherwise  than as a consequence of a breach of the Agreement
        or any  other  agreement  (whether  or not made with  Gizmondo),  (b) is
        generally available to the public other than as a result of a disclosure
        or other default by the Developer and/or any of its employees, (c) is or
        becomes  available to the Developer  and/or any of its employees  from a
        source  other  than  Gizmondo,  which  source  is  not  prohibited  from
        disclosing  such  information  by any legal,  contractual  or  fiduciary
        obligation to Gizmondo or (d) is independently  developed or acquired by
        the  Developer  and/or  any  of  its  employees   independently  of  any
        Confidential Information provided by;

1.      The  Employee  agrees that the  Intellectual  Property  Rights are owned
        solely by Gizmondo.  To the fullest  extent  possible  under  applicable
        laws,  the Employee  hereby waives any and all moral rights in and/or to
        the Intellectual  Property Rights.  At the request of Gizmondo and at no
        expense to the Employee,  Employee shall sign all documents and take all
        reasonable  steps to assist  Gizmondo in confirming that Gizmondo is the
        sole owner of the Intellectual  Property Rights and/or confirming such a
        waiver.

2.      At no  time  shall  the  Employee  disclose  or use  any  of  Gizmondo's
        Confidential  Information or make any public  statement or  announcement
        which  concerns the Game or the  Agreement,  except the Employee may use
        Gizmondo's  Confidential  Information in connection  with the Employee's
        development of the Game under the terms and conditions of the Agreement.
        This shall not apply to information which is required to be disclosed by
        an  authorised   governmental   or  judicial  entity  under  a  suitable
        protective  order,  provided that Employee shall notify Gizmondo as soon
        as possible prior to such disclosure.

3.      Gizmondo  may  enforce  this  Employee  Agreement   including  obtaining
        injunctive relief or damages.

4.      Gizmondo  may assign this  Employee  Agreement  (or any part of it). The
        Employee shall not assign this Employee Agreement (or any part of it).

5.      Both the  Developer  and the  Employee  represent  to Gizmondo  that the
        Employee is an employee of the  Developer and that he/she is not engaged
        by the  Developer  on a freelance  or  consultancy  basis.  The Employee
        represents  that  he/she is of legal age,  has read the  foregoing,  and
        understands its contents.

                                       36
<PAGE>

6.      This Employee  Agreement  shall be governed by, subject to and construed
        under the laws of England and Wales.

The  undersigned  parties have signed this  Employee  Agreement on the dates set
forth below.

GIZMONDO EUROPE LIMITED                      EMPLOYEE:

By: ______________________________           By: ______________________________

Printed Name: ____________________           Printed Name: ____________________

Title: ___________________________           Title: ___________________________

Date: ____________________________           Date: ____________________________

DEVELOPER:___________________

By: ______________________________

Printed Name: ____________________

Title: ___________________________

Date: ____________________________

                                       37Exhibit 10.10

                                LICENCE AGREEMENT
                                -----------------

THIS  AGREEMENT  (the  "Agreement")  is entered into as of  September  2004 (the
"Effective  Date"),  by and between  GIZMONDO EUROPE LTD. , its principal office
located at:- Gizmondo  Europe Ltd, 1 Meadow Gate Avenue,  Farnborough  Business,
Farnborough,  Hants, GU14 6FG, England ('Gizmondo") and Northern Lights Software
Ltd.) of 6 Albermarle Street, London, W15 4HG, England ("Northern Lights"), with
reference to the following details:

                                    RECITALS
                                    --------

        WHEREAS  Northern  Lights owns or controls the publishing  rights in and
owns  certain  interactive  software  products and other  intellectual  property
related thereto, and

        WHEREAS,  Gizmondo is engaged in the business  of,  among other  things,
publishing, developing, marketing, distributing and selling wireless interactive
entertainment software products, and

        WHEREAS,  Gizmondo  desires  to  obtain  certain  rights  in  and to the
Northern  Lights  Materials  (as defined below in Section 1 hereof) and Northern
Lights  desires  to grant  Gizmondo  such  rights on the terms set forth in this
Agreement

        NOW THEREFORE, the parties do hereby agree as follows:

1.      DEFINITIONS.

1.1     "Games"  shall  mean those  entertainment  video  games  which have been
        published  or  will  be  published  by  Northern  Lights  for use on the
        Gizmondo multi-entertainment device and any variants thereof

1.2     "Product"  shall mean an  application  program  created by  Gizmondo  in
        accordance  with this agreement or adapted or modified by Gizmondo so as
        to enable  the same to  operate  as a  handheld  version  which is to be
        published by Gizmondo for operation on the Devices pursuant to the terms
        of this Agreement

1.3     "Game  Exhibit"  shall mean an addendum to this  Agreement  that is (and
        shall, be far future Games, as amended) attached hereto and incorporated
        herein for each  Gar-re  licensed  to Gizmondo  for  development  of the
        corresponding  Product  pursuant to the terms of this Agreement and such
        Game  Exhibit  The  format  of the  Game  Exhibit  is  attached  to this
        Agreement as Exhibit A Northern Lights may change the format of the Game
        Exhibits at any time,  but not so as to increase the scope of Gizmondo's
        obligations under this Agreement The Game Exhibit  includes,  but is not
        limited to, intellectual  property information  development schedule and
        any additional requirements or limitations on development or publication
        of the applicable Product

1.4     "Game Developer/Licensor" shall mean a third party developer or licensor
        that  developed the Game on Northern  Lights behalf or licensed the Game
        or its elements to Northern Lights and who retains rights in the Game.

1.5     "Game Content" shall mean without limitation those copyrightable aspects
        of the  particular  Game that may be perceived  by the user,  including,
        without limitation,  artwork;  sound;  graphic and/or music files; audio
        visual  elements  and  displays;  user  interface,   logos,  trademarks,
        characters and names; dialog: story line; plot and data

1.6     "Northern Lights Materials" shall mean collectively Games, Game Content,
        Documentation,  and any other  materials  owned or  licensed by Northern
        Lights provided to Gizmondo under this Agreement

1.7     "Minimum  Product  Skus" shall mean the WinCE net  Gizmondo  versions of
        each Product.

1.8     "Territory"  shall mean the entire  world for all of the Products on the
        Devices.

                                       1
<PAGE>

1.9     "Distribution Channel(s)" shall mean the following means of distributing
        software  designed to operate in the wireless  environment  over the air
        provisioning via Wireless Networks, merchants,  including carrier online
        or wireless mobile shops,  storefronts or portals  (whether  operated by
        the carrier  itself or on the carrier's  behalf by a third party service
        provider)  retailers,  carrier retail locations:  other retail locations
        where Devices are generally sold, OEM methods of distribution  including
        embedded or bundling  transactions  (subject to clause 24i.  and through
        the use or sale of SD. MMC cards, memory stick or other similar physical
        media that enable the delivery of such wireless products to the Devices

1.10    "Distribution  Partner"  shall  mean  any  third  party,  not  including
        Gizmondo  Affiliates,  who  sub-licenses  any of the  rights  granted to
        Gizmondo  pursuant to this Agreement for the purpose of distributing the
        Products to End-Users subject to clause 2.4 (4).

1.11    "Documentation"  shall  mean  the  user  documentation,  manuals  and/or
        written product specifications for a Game or Product. as applicable

1.12    "Devices"  shall mean the  "Gizmondo"  handheld  portable  entertainment
        device.  and  licensed  or  re-branded  variants of the  Devices,  under
        manufacture or licensed from Tiger  Telematics  Gizmondo  subject to any
        licensing or rebranding  being subject to Northern  Lights prior written
        approval (not to be unreasonably withheld or delayed).

1.13    "Gizmondo  Affiliates"  shall mean the parent and those  subsidiaries of
        Gizmondo as specified in Exhibit E

1.14    "Final  Product"  means a  finished  version  of any of the  Games in an
        appropriate format which is ready for publishing by Northern Lights

1.15    "Intellectual Property Rights" shall mean publishing,  patent rights and
        registrations  and  applications,  renewals  and  extensions  thereof  ,
        copyright  (including,  but not  limited  to.  ownership  rights  in all
        titles,  computer code, themes,  objects,  characters,  character names,
        stories, dialog, catch phrases, locations, concepts, artwork, animation,
        sounds,  musical  compositions,  audio-visual  effects  and  methods  of
        operation,  moral  rights  and  any  related  documentation),  copyright
        registrations  and  applications,   renewals  and  extensions  therefore
        trademark   registrations  and  applications   renewals  and  extensions
        therefore,  rights in trade dress and  packaging,  trade secrets and all
        other  intellectual  property rights recognized by English and U.S. laws
        and applicable foreign and international laws, treaties and conventions

1.16    "Platform(s)" shall mean the underlying computer systems or technologies
        on which  Products  and other  application  program(s)  are  operated in
        conjunction  with Devices,  expressly  limited to  GSM/GPS/GPRS  and any
        version of the Microsoft operating system

1.17    "Term"  shall mean two years from the  delivery to Gizmondo of the Final
        Product and subject to any variations set out in any Game Exhibit

1.18    "End-User  (s)" shall mean a person or entity that purchases or licenses
        for its use a Product  pursuant  to a signed  purchase  order,  end-user
        license agreement or other similar agreement

1.19    "Wireless  Network(s)" shall mean a network that allows users of Devices
        to connect to and receive telecommunication transmission services in the
        Territory.

1.20    "Wireless  Network  Operator(s)"  shall mean any  person or entity  that
        offers  telecommunication  transmission services to users of a Device in
        the Territory over a Wireless Network operated by such person or entity.

1.21    "Licensed Marks" shall mean those Northern Lights  trademarks  specified
        under "Licensed Marks" in each Game Exhibit.

1.22    "Net  Receipts"  shall mean with  respect to a  particular  Product  all
        monies  actually  received by Gizmondo  from the license,  sale or other
        exploitation of such Product, after deducting the

                                       2
<PAGE>

        following  (1) any amounts  payable to any  Wireless  Network  Operator,
        Platform  owner,  including  deductions  made  by the  Wireless  Network
        Operator or Device manufacturer;  (2) the actual returns attributable to
        such Product; and (3) taxes and other governmental charges actually paid
        or incurred in connection  with the sale of such Product (other than the
        income  tax of  Gizmondo).  For the  avoidance  of doubt;  Gizmondo  Net
        Receipts shall not be deemed to include monies derived or collected from
        the  distribution of the Product to End-Users by any third parties.  but
        shall refer only to those monies actually received by Gizmondo from such
        third  parties  after such third  parties have  retained or withheld any
        markups,  revenue  share  amounts,  or license or other fees due to them
        pursuant to the terms of Gizmondo's agreements with such third parties.

1.23    Minimum  Guarantee"  shall  mean  the  non-refundable  fully  recoupable
        against  Earned  Royalties  guarantee  payable by  Gizmondo  to Northern
        Lights under clause 6.2.

2.      LICENSE.

2.1     Grant of Rights.  Subject to the terms and  conditions of this Agreement
        Northern  Lights  grants to Gizmondo the  non-transferable,  terminable,
        exclusive  right  and  license  during  the Term  for each of the  Games
        specified in the Game Exhibit (the "License") to

        (a) develop and produce  Products based on the Game and Game Content for
        use solely on Devices running on the Platform; and

        (b) adapt or convert the version of the Game supplied by Northern Lights
        to operate on the Gizmondo platform and to make such changes adaptations
        and  adjustments  as may be  required  to render the game  operable  and
        attractive on the Gizmondo handheld subject to the prior written consent
        of Northern Lights or its Game Licensers.

        (c) advertise.  promote,  market,  distribute and sub-distribute,  sell,
        license and sub-license such Products
                (i)   in the applicable Territory
                (ii)  either directly or through any Distribution Channel; and
                (iii) solely to  End-Users,  Distribution  Partners or Wireless
                      Network Operators,

        provided that
        (1)     all such  Distribution  Partners are subject to Northern  Lights
                prior  written  approval  (not to be  unreasonably  withheld  or
                delayed),
        (2)     sub-licenses to Distribution Partners shall be only as necessary
                to  allow  Distribution  Partners  to  distribute  and  sell the
                Products to End-Users in the Territory,
        (3)     Gizmondo's  agreements  with such  Distribution  Partners  shall
                contain terms that are at least as protective of Northern Lights
                (and its Game Licensers ) rights (including without  limitation,
                its approval rights) as those contained in this Agreement, and
        (4)     Gizmondo  shell at all times remain  primarily  liable under the
                terms of this Agreement for any actions or omissions on the part
                of such  Distribution  Partners.  In  converting  the  Games  to
                Products.  Gizmondo  may make such  changes  to the Games as are
                required to accommodate the capabilities and requirements of the
                Devices, Platforms and Wireless Networks.

        In connection with the foregoing License, Northern Lights further grants
        to Gizmondo the limited right and license to the applicable Intellectual
        Property  Rights  in the  Games or the  Games  Content  to carry out the
        purpose and intent thereof.

        Notwithstanding anything to the contrary, for purposes of this Section,
        nothing herein shall prevent Northern Lights from publishing the Game on
        other video games, computer systems, hand held devices mobile devices or
        technologies or from publishing any Northern Lights game products other
        than the Games licensed to Gizmondo hereunder on the Platforms.

2.2     Retained  Rights.  For the avoidance of any doubt. the rights granted to
        Gizmondo in Section 2.1 shall be specifically limited to the devices and
        shall not extend to any other platform.

                                       3
<PAGE>

2.3     Limited Publication Rights. Parties agree that Gizmondo has the right to
        publish on the Devices only  Distribution  rights for any and all future
        personal  media  players are subject to mutual  approval  and good faith
        negotiations on the parts of both parties.

2.4     OEM's  Subject to Northern  Lights prior written  approval  Gizmondo may
        install, pre-load or embed Products on the Device prior to sale, subject
        to Northern  Lights  receiving an equivalent  Earned Royalty as it would
        have had the Game been sold at retail at full retail price.

2.5     Northern   Lights   hereby   grants   to   Gizmondo   a   non-exclusive,
        non-transferable,  royalty-free,  personal  license to use the  Licensed
        Marks and a sublicense or the  applicable  third party game studio logos
        as  specified  in the Game  Exhibits  during the Term,  according to the
        branding  specifications in Exhibit C and other conditions  herein,  and
        solely  +n  connection  with the  development  and  distribution  of the
        Products  based on the Games Subject to  compliance  by Northern  Lights
        with its  warranties  in this  Agreement  relating to the quality of the
        Northern  Lights  Materials,  Gizmondo agrees to maintain the quality of
        Product  at a level  that meets or  exceeds  standards  of  quality  and
        performance  generally  accepted '.n the wireless gaming  industry,  and
        that is at least  commensurate with the quality set forth in Section 4 5
        and Exhibit B to this  Agreement.  Gizmondo  agrees to fully correct and
        remedy any deficiencies in its use of the Northern Lights Licensed Marks
        or the  Product  within a  reasonable  time upon  receipt of notice from
        Northern  Lights.  Gizmondo  shall cease any further use of the Northern
        Lights Licensed Marks upon expiration or termination of this Agreement.

2.6     All rights to the Northern Lights  Licensed Marks not expressly  granted
        herein are reserved by Northern Lights.  Gizmondo  acknowledges Northern
        Lights sole ownership of the Northern  Lights  Licensed  Marks,  and all
        associated goodwill,  and that Northern Lights retains all right, title,
        and interest in such Licensed  Marks.  All goodwill  arising from use of
        such  Licensed  Marks by  Gizmondo  will  inure to the sole  benefit  of
        Northern  Lights.  Gizmondo  will not use the Northern  Lights  Licensed
        Marks in any manner that will  diminish  or  otherwise  damage  Northern
        Lights  goodwill in such Licensed Marks Gizmondo will not adopt,  use or
        register any corporate name, trade name, trademark, domain name, service
        mark or certification  mark, or other designation that violates Northern
        Lights rights in such  Licensee  Marks.  Northern  Lights shall have the
        sole  right  to  and in its  sole  discretion  may  control  any  action
        concerning the Northern Lights Licensed Marks.

3.      OWNERSHIP OF INTELLECTUAL PROPERTY.

3.1     Ownership  of Games and  Related  Rights.  Subject  to the terms of this
        Agreement,  Northern Lights (or as applicable its Game Licensors)  shall
        at all times be and remain the sole and exclusive owner of the Games and
        all Intellectual Property Rights pertaining thereto Without limiting the
        generality of the foregoing.  nothing in this Agreement  shall be deemed
        to grant or assign to Gizmondo any proprietary or ownership  interest or
        Intellectual  Property  Rights in or to the Games other than the license
        rights set forth herein.

3.2     Gizmondo  Ownership  of  Products  and Related  Rights.  Notwithstanding
        Section 2 hereof, Northern Lights acknowledges and agrees that it has no
        right,  title  and/or  interest in and to the Products and in and to the
        work  product and other  materials  originally  developed  or created by
        Gizmondo  either  before or  pursuant to this  Agreement  to develop and
        produce  the  Products  which  do  not  involve,   :include,  embody  or
        constitute a  derivative  work of, and are not  otherwise  based on, any
        portion of the software code  compromising the Games,  including (a) all
        originally created or licensed computer software code, routines,  tools,
        algorithms and other technology  contained in or used in the development
        of the Products, (b) all originally created art, sound, music. graphics:
        and other assets and designs embodied in the Products, (c) the technical
        and/or maintenance documentation, if any, of or concerning the Products,
        and (d) the related instruction  manuals and packaging,  if any, for the
        Products  (collectively,  the  "Gizmondo  Materials").  Gizmondo  (or as
        applicable,  its  licensors)  shall own all rights  title and  interest,
        including  all  Intellectual  Property  Rights,  in and to the  Gizmondo
        Materials,  to the extent the Gizmondo Materials do not involve include,
        embody or constitute a derivative  work of, and are not otherwise  based
        on, any portion of the Northern Lights Materials.

                                       4
<PAGE>

3.3     No Reverse  Engineering.  Versions of the Game(s)  provided to Gizmondo,
        unless otherwise  specified in the applicable Game Exhibit,  shall be in
        their  compiled  object code format and Gizmondo shall make no effort to
        discover or  otherwise  learn the source code for each Game On a case by
        case basis.  Northern Lights may provide Gizmondo with source code for a
        Game in the event  Gizmondo  demonstrates a good cause reason to require
        source code to  complete a Product,  however,  prior to any  delivery of
        source code (at such time as mutually  agreed upon by the  parties),  if
        the  Product is based on a Game  developed  by a third  party,  Gizmondo
        shall  be  required  to  execute  such  Game  Developer's  nondisclosure
        agreement and/or license agreements (the 'Game Developer  Documents") as
        requested  by such Game  Developer  Gizmondo  may  utilize and study the
        design,  performance  and operation of the Games solely for the purposes
        of developing a Product.  Notwithstanding the foregoing,  Gizmondo shall
        not,  directly or indirectly,  reverse  engineer or aid or assist in the
        reverse  engineering  of aIl or any part of the Games except and only to
        the extent that such activity is expressly  permitted by applicable  law
        notwithstanding  this  limitation  In the event  applicable  law  grants
        Gizmondo the right to reverse  engineer the Games  notwithstanding  this
        limitation,  Gizmondo shall provide  Northern Lights with written notice
        prior  to such  reverse  engineering  activity,  information  sufficient
        regarding Gizmondo's intended method of reverse engineering. its purpose
        and the legal  authority  for such  activity and shall  afford  Northern
        Lights a reasonable  period of time before  initiating  such activity in
        order to evaluate the activity and/or challenge the reverse  engineering
        activity with the appropriate legal  authorities  Gizmondo shall refrain
        from such  reverse  engineering  activity  until  such time as any legal
        challenge is resolved in Gizmondo's  favor  Notwithstanding  anything to
        the contrary, in the event Gizmondo chooses to reverse engineer any Game
        without  Northern  Lights  consent,   Northern  Lights  may  immediately
        terminate this Agreement with no further  obligation to Gizmondo Reverse
        engineering  includes,  without  limitation,  decompiling,  disassembly,
        sniffing, peeling semiconductor components, or otherwise deriving source
        code.

4.      DEVELOPMENT OF THE PRODUCTS.

4.1     Northern  Lights agrees to use its reasonable  endeavors to complete the
        development  of the  Games by the  dates  set out at  Schedule  F and to
        deliver to Gizmondo all appropriate  Materials to support porting of the
        Games to the Devices, provided that Northern Lights shall not be obliged
        to deliver any assets where such  delivery a prohibited  under the terms
        of any third party agreement.

4.2     In the event that  Northern  Lights fails or is unable for any reason to
        deliver the Final  Product in relation to any of the Games then Northern
        Lights and  Gizmondo  shall agree to  substitute  such Game with another
        game  in  the  Northern   Lights  current  or  forthcoming   publication
        catalogue.

4.3     At its discretion but subject to the approval of Northern Lights and its
        Game Licensors as set out in this Agreement,  Gizmondo shall be entitled
        to port the Games to the Device or to develop  the  Products  inn either
        event at its sole cost and expense, pursuant to the terms and conditions
        of this  Agreement  Except  as  expressly  provided  in  this  Agreement
        Gizmondo shall assume full responsibility for the creation,  development
        adaptation and production of the Products,  which shall include, without
        limitation,  (a) designing  creating adapting or modifying the technical
        specifications  for the  Products,  (b) creating  modifying  adapting or
        emulating all computer code for the Products,  (c) creating  adapting or
        modifying all audio and visual  assets for the Products  except for such
        assets as may be reused  and as are  contained  in the  Northern  Lights
        Materials,  (d) acquiring and/or licensing any and all other technology,
        software and hardware needed for purposes of creating adapting modifying
        emulating and  distributing  the Products,  and (e)  conducting  quality
        assurance testing of the Products.

4.4     Third Party Development In the event that Gizmondo seeks to hire a third
        party  developer to develop a Product as specified  herein ("Third Party
        Developer"),  Gizmondo  shall,  subject to Northern  Lights  approval as
        specified  herein,  enter into written  agreements with such Third Party
        Developers that contain language  substantially  equivalent to Section 3
        and in any event  are as  protective  of  Northern  Lights  Intellectual
        Property Rights as the terms of this Agreement. Gizmondo shall cause all
        Third Party Developers to execute Northern Lights.

                                       5
<PAGE>

        and/or the Game Developer/Licensor's  Nondisclosure Agreement (and other
        relevant  documents,  if  requested).  Any act or  omission by any Third
        Party  Developer  shall be deemed that of Gizmondo  for the  purposes of
        this  Agreement and Gizmondo  shall be jointly and severally  liable for
        such acts or  omissions.  Northern  Lights  must  approve in writing all
        Third Party Developers and development work on any Product by such Third
        Party Developer as shall not begin until such written  approval has been
        provided.

4.5     Completion  of  Products   Gizmondo  agrees  to  use  its   commercially
        reasonable  efforts to complete  the Products  within a reasonable  time
        after being supplied with the Final Products for each of the Games.

4.6     Progress  Reports.  Upon Northern  Lights  request  Gizmondo will submit
        progress  reports  in  connection  with  each  "build"  of the  Product.
        Gizmondo  shall then submit for Northern  Lights review and approval the
        final builds (as such term is commonly  understood in the  entertainment
        software  industry) of the each Product.  Northern Lights shall consider
        all such reports in good faith and shall provide  reasonable  assistance
        to Gizmondo in relation to the compliance  with the  reasonable  quality
        standards of Northern Lights.

4.7     Standard of Development. Gizmondo agrees that: (a) the Products shall be
        of  the  standard  customary  to  high-quality   entertainment  software
        products  in  the  wireless/hand  held  industry.  and  of  such  style,
        appearance and according to the Quality Standards listed in Exhibit B(b)
        the Products shall be developed,  produced,  distributed,  sold licensed
        advertised and serviced in accordance with all applicable  laws; and (c)
        the policy of sale, distribution,  and/or exploitation by Gizmondo shall
        be of the equivalent  standard  customary to high-quality  entertainment
        software products in the Wireless/Handheld industry.

4.8     Approvals

        4.8.1   Gizmondo  agrees  to  submit  the  Products  and  all  marketing
                materials  to be utilized in  connection  with the  advertising,
                marketing and promotion of the Products,  to Northern Lights for
                Northern  Lights  (and its Game  Licensors')  prior  approval or
                disapproval  for the  purpose  of  Northern  Lights  or its Game
                Licensors  determining whether such 'Products' and all marketing
                materials  maintain the agreed-upon  design  specifications  and
                quality  standards  applicable  for such  items.  Gizmondo  will
                comply with the  obligations  required by Northern  Lights' Game
                Licensors  with regard :o the Products and  marketing  materials
                and will not release any Product or marketing  materials without
                Northern Lights' or its Game Licensors' prior written consent.

        4.8.2   Gizmondo  shall  submit  builds" of each  Product  for  Northern
                Lights approval at the following stages:

                (i)     Prototype  Design  Document:   Outline  of  the  planned
                        deliverables  and  expectations  for a Prototype  of the
                        Product.  This  may  be  preceded  by a  "high  concept"
                        document submitted for approval
                (ii)    Prototype Phase: as defined in Section 4.6.3 below
                (iii)   Full Product Design  document:  Detailed  description of
                        game concept and level design for each Platform
                (iv)    First playable version: First indication of what the end
                        user experience will be;
                (v}     Code Complete  version:  All features  implemented.  All
                        future software work dedicated to fixing bugs;
                (vi)    Release Candidate version: Version submitted to Northern
                        Lights of Product for release approval;
                (vii)   Commercial  Release  version:   Final  version  that  is
                        actually published.

         4.8.3   Prototype. The Prototype should feature a playable experience
                 that can be used with a relatively high degree of accuracy to
                 make predictions about the viability of the actual Product The
                 deliverables as outlined below should be of sufficient quality
                 and depth to achieve this purpose and inclusive of the
                 following at a minimum:

                                       6
<PAGE>

                (i)     Prototype Binary

                        -       Primary gameplay and display engine for a target
                                Platform    agreed   to   by   Northern   Lights
                                (WinCe.net)     is     viewable      Performance
                                optimizations have not been performed.
                        -       Primary  gameplay  elements are playable  (e.g.,
                                drive   the   car,   place  a  unit,   move  the
                                character).   No  tuning  has  been   performed.
                                Secondary  functionalities  (e.g., extra vehicle
                                behavior,  extensive  character  moves)  are not
                                inclusive.
                        -       Key   Playable   Experience   Binary   able   to
                                demonstrate the core mechanic or primary feature
                                of the game.
                        -       Binary is  sufficiently  stable  to  review  the
                                above described elements.
                        -       Realized character art that is representative of
                                what  will be  seen m the  final  Product  which
                                covers at least the main character The art is to
                                be shown in WinCe.net format.

                (ii)    Initial Design Document (GDD)

                        -       Core gameplay functionality described sufficient
                                to understand the primary gameplay  elements and
                                their gameplay interactions Competitive features
                                and player proxy are also described.
                        -       Projected list of platform feature differences.
                        -       Projected list of tools and technologies  needed
                                to realize the game as described.
                        -       Mitigated Risks,  Gizmondo's  perceived risks in
                                taking  this  particular  approach  and thus not
                                being able to  deliver in terms of  originality,
                                fun, etc.

                (iii)   Additional  Documentation  including  a  description  of
                        Prototype's features, what works and what doesn't.

        4.8.4   Once Northern  Lights gives an approval for submitted  materials
                and information  about the proposed Product it cannot retract or
                modify that approval and Gizmondo will have the right to rely on
                such approval in proceeding to the subsequent development stages
                based on the approved materials and information,  provided there
                are no material deviations,  modifications or other changes from
                the submitted materials and information.

        4.8.5   Northern Lights shall use reasonable efforts to approve,  and to
                procure that Northern Lights Game Licensor's  approve,  "builds"
                and other submissions  submitted by Gizmondo within fifteen (15)
                business  days  after  receipt,  which  approval  shall  not  be
                unreasonably   withheld,   provided   such  "builds"  and  other
                submissions  maintain the agreed-upon design  specifications and
                quality  standards  applicable  for  such  items  In  the  event
                Northern  Lights  or its Game  Licensors  neither  approves  nor
                disapproves  the  submitted  material  within such  fifteen (15)
                business day period.  Gizmondo  shall provide  written notice to
                Northern Lights and Northern Lights and its Game Licensors shall
                have  an  additional  five  (5)  business  days  to  approve  or
                disapprove the submitted material.  In the event Northern Lights
                and/or its Game Licensors  fail to approve or disapprove  within
                such five (5) business  days,  the submitted  material  shall be
                deemed approved  unless  Northern  Lights  notifies  Gizmondo in
                writing  during such period  that it has not  received  approval
                from  one or  more of its  Game  Licensors  in  which  case  the
                submitted material will not be approved until such Game Licensor
                has given its  approval and all  applicable  time limits in this
                Agreement  shall be  correspondingly  extended.  The  commercial
                release version of the Product and all marketing  materials must
                be approved by the written signature of the person(s) designated
                by  Northern  Lights in the Game  Exhibit In the event  Northern
                Lights and/or its Game  Licensors  disapprove of a  deliverable,
                Northern   Lights  shall  provide   Gizmondo   with   sufficient
                information  in which to discern  the nature of the  disapproval
                and Gizmondo shall modify the deliverable prior to resubmission.
                Gizmondo  agrees  to make  such  changes  as will be  reasonably
                required to correct any deficiencies

                                       7
<PAGE>

                noted by Northern  Lights or its Game  Licensors  promptly  upon
                receipt of such notice.  This  procedure  will be repeated  with
                each  submission  until  Northern  Lights  determines  that  its
                request(s)  for  changes has been met.  No  distribution  of any
                Products or related  materials may occur without Northern Lights
                and its Game Licensors prior written approval Once approved, the
                Products and related  materials  shall not deviate from the form
                in which such items were approved.

4.9     Hardware  Gizmondo  shall  provide such  hardware  and carrier  service,
        and/or  comparable  method of access to the  Products as is necessary to
        facilitate Northern Lights review and approval of the Products.

4.10    Defects  Correction.  Gizmondo shall be  responsible  for correcting all
        bugs and errors  found in the  Products  as needed to have the  Products
        approved by Northern  Lights as  specified  herein and deemed  ready for
        "code  release"  (i.e.,  the  Product  is in  final  form,  without  any
        significant  bugs or errors and is ready to be reproduced into units for
        sale in the Territory).

4.11    Northern  Lights  Materials.  For each Game,  Northern  Lights agrees to
        deliver to Gizmondo the Northern Lights Materials as may be specified in
        the Game Exhibit for such Game.

4.12    Copyright   Acknowledgment.   Gizmondo  shall  include  the  appropriate
        copyright and trademark  acknowledgement in the credit screen,  package,
        manual,  marketing and promotional materials and paid advertisements for
        the Product as identified on the Game Exhibit.

4.13    Gizmondo will display and not remove or alter any trademarks, copyrights
        or notices  pertaining to the Games as provided by Northern Lights,  and
        reproduce  such  trademarks,  copyrights  and notices in all  applicable
        advertising and marketing  materials for the Products  including but not
        limited to applicable  ratings  symbols for each Products  Gizmondo will
        comply  with  all   Entertainment   Software   Ratings  Board   ("ESRB")
        requirements and procedures and equivalent  applicable  requirements and
        procedures  of  similar  ratings  organizations  in other  countries  in
        connection  with its  distribution  and  marketing  of the  Products The
        content and game play of the Product  shall not  materially  differ from
        the  applicable  Game such that the  Product  would  receive a different
        content rating than the Game in any jurisdiction.

4.14    Credit.

        4.14.1  Each  Product  shall be  co-branded  equally  with the  Northern
                Lights and Gizmondo  brands and the Game  developer and Northern
                Lights Game Licensor(s) (if applicable), and bear the same title
                as the Game Use of Northern Lights brands and logos will conform
                to the Branding Specifications attached hereto as Exhibit C.

        4.14.2  Subject to the  limitations  stated in  Sections 4 6 and 11, the
                parties  shall  mutually  agree  to a press  release  concerning
                Gizmondo's  publication  of the  Products  that  shall  identify
                Northern Lights as the original  publisher of each of the Games,
                the  Game   Developer/Licensor  of  each  applicable  Game,  and
                Gizmondo as the  publisher of the Products.  The press  releases
                shall also be subject to Northern Lights Game Licensors approval
                where relevant.

        4.14.3  Subject  to  the  approval  of  Northern  Lights  and  its  Game
                Licensors  as to all aspects of the display or  presentation  of
                the Licensed Marks Gizmondo shall provide  Northern  Lights with
                the  trademark  attribution  supplied  to  Gizmondo  by Northern
                Lights and give credit to Northern Lights and any Game Licensors
                on the back of the Product  packaging and within the Products in
                all areas  where  credit is given to  Gizmondo  Examples of such
                'in-game"  credit include  Northern  Lights name and logo in the
                splash screen upon "boot-up', within the game manual, and in the
                credit  section of each  Product  Gizmondo  shall  also  include
                Northern  Lights  and any Game  Licensor's  name and logo on all
                marketing and promotional materials and paid advertisements in a
                manner that clearly identifies  Northern Lights as the publisher
                of the Game.  Trademark  attribution  for each Product  shall be
                included in each Game Exhibit or as provided by Northern  Lights
                from time to time under this Agreement. In addition,

                                       8
<PAGE>

                Gizmondo  shall  grant  credit  to  Game  Developer/Licensor  as
                follows or as  otherwise  instructed  by Northern  Lights on the
                Game Exhibit.

                o  Game Developer/Licensor's name and logo within the manual for
                   the Product
                o  Game Developer/Licensor's  name within the credit  section of
                   the Product

        4.14.4  The  Products   shall   reference   all  credit  and   copyright
                information  found in the original  Games with the  exception of
                additions or deletions  agreed to in writing by Northern  Lights
                Notwithstanding the foregoing,  Gizmondo shall have the right to
                credit  the Third  Party  Developers  of the  Products  or third
                parties who assist in the  development  or  distribution  of the
                Products  provided  that  such  credit  is  consistent  with the
                presentation of credits contained in the applicable Game.

5.      CERTIFICATION; TESTING.

5.1     Certification  And Testing.  Gizmondo  shall,  as required,  submit each
        Product  for  testing  and  certification  by  an  appropriate   testing
        facility,    in-house   Quality   Assurance   department   or   Gizmondo
        certification  department All testing fees shall be paid by Gizmondo. In
        the  event any  Product  is not  certified  due to its  failure  to meet
        applicable  standards  set-forth  by  the  certifying  entity  or  body.
        Gizmondo  shall at its sole  expense,  make such  revisions  and further
        modifications until such time as the Product is certified.  The Licensor
        retains the rights for final approval but will not unreasonably withhold
        the release of the product.

5.2     Technical  Support.  Gizmondo or a party designated by Gizmondo shall be
        responsible  for all customer  support for the Product  Northern  Lights
        acknowledges  that Gizmondo may rely on its Wireless  Network  Operators
        and Distribution  Partners to provide  support,  subject to the terms of
        this Agreement. Gizmondo will, through clear and conspicuous language in
        the Product and on the  packaging  and  documentation  for the  Product,
        notify users of Products how to obtain technical support for the Product
        and that Northern Lights is not  responsible  for providing  support for
        such Product  Northern  Lights  shall,  however,  at its own expense use
        reasonable commercial endeavors to provide Gizmondo with such support in
        relation to the Northern  Lights  Materials  as Gizmondo may  reasonably
        require for the purpose of performing its obligations  under this Clause
        provided that the information  required by Gizmondo is readily available
        to Northern Lights and/or its Game Developers.

6.      FINANCIAL TERMS.

6.1     Product Price  Gizmondo  shall promptly  inform  Northern  Lights of all
        prices  applicable  to the  distribution  and sale of the Products  (the
        "Product Price")  provided that the Product Price is  substantially  the
        same as similar  quality  products and subject to Northern  Lights prior
        written approval,  not to be unreasonably withheld In addition Gizmondo,
        a hardware  manufacturer,  Merchant or a Distribution Partner shall have
        the right subject to any approval  rights of Gizmondo,  if any to reduce
        the Product Price or offer discounts to third parties.

6.2     Game Title                      Minimum Guarantee
        ----------                      -----------------
        Colors/City                     (pound)800 000

        The Minimum  Guarantee shall be paid to Northern Lights on the Effective
        Date or by stage  payments  within three months of the  effective  date.
        Subject to the  provisions of this  Agreement the Minimum  Guarantee for
        each Product shall be non-refundable but fully recoupable against Earned
        Royalties for each Product.

6.4     With respect to each Product.  Gizmondo agrees to pay to Northern Lights
        an earned  royalty (the  "Earned  Royalty or  Royalties")  of 50% of Net
        Receipts.

6.5     Royalty Statements.  Gizmondo will provide royalty statements  including
        quarterly unit sales and revenue reporting of sell-in to Northern Lights
        with detail by stock-keeping  unit (SKU), for each geographic  region in
        the Territory, with such reports delivered to Northern Lights within

                                       9
<PAGE>

        forty  five (45i days  after the end of each  fiscal  quarter  after the
        commercial  launch of any Product with Earned Royalties shown thereby to
        be due to  Northern  Lights.  Payment  of Earned  Royalties  shall be in
        pounds  sterling  within  fifteen  (15)  business  days  of  receipt  of
        corresponding  invoice  and  shall be paid  according  to the  procedure
        identified  in the attached  Exhibit D. The royalty  statement  shall be
        based upon units  distributed  and not  returned  for the  quarter  then
        ended,  and shall  contain  information  sufficient  to discern  how the
        royalty payment was computed. Earned Royalties are payable on the number
        of physical  copies or downloads of the Products sold less the number of
        returns Gizmondo may maintain and withhold from payment Earned Royalties
        shown  to  have  accrued  on  any  statement  reasonable  reserves  (not
        exceeding 15%) of the Earned  Royalty  payable in respect of each fiscal
        quarter in respect of  Products  which may be  returned  {"Returns } and
        will  subsequently  make  adjustments  based on the  number of  Products
        actually  returned,  provided that any unused  reserve shall be released
        within the second fiscal  quarter  following  that in which it was first
        maintained.

6.6     Audits.  For at least two years after the Term,  Gizmondo  will maintain
        accurate  books and  records  that  report  the  sales o` each  Product.
        Northern  Lights  shall  have the  right  to  designate  an  independent
        certified public  accountant on Northern Lights behalf (who shall not be
        compensated on a contingent fee basis),  at Northern Lights own expense,
        to examine  those books and records  solely for the purpose of verifying
        the  accuracy  of royalty  statements  rendered  by  Gizmondo  hereunder
        Northern Lights accountant may only make such examination during regular
        business  hours and upon  reasonable  notice and in a manner that is not
        unreasonably  disruptive to Gizmondo's  business Each  examination  will
        take place at the place Gizmondo normally keeps the books and records to
        be examined Northern Lights shall be limited to one (1) such examination
        each  twelve  (12)  months  while  the   applicable   Product  is  being
        commercially exploited by Gizmondo and for 12 months thereafter Gizmondo
        shall have no obligation to permit Northern  Lights,  nor shall Northern
        Lights have any right. to examine  Gizmondo s books or records  relating
        to any particular statement more than once unless there is an unresolved
        issue. Northern Lights acknowledges that Gizmondo claims that Gizmondo's
        books and records contain  confidential trade secret information Neither
        Northern  Lights  nor  Northern  Lights  independent   certified  public
        accountant or other representatives shall communicate at any time or use
        on  behalf  of  any  other  person,   firm  or  corporation  other  than
        representatives of Northern Lights any facts or information  obtained as
        a result  of any such  examination  of  Gizmondo's  books  and  records.
        Further,  prior to the  commencement  of any  examination  of Gizmondo's
        books and records in  accordance  with the  provisions  of this Section,
        Northern Lights shall cause the independent  certified public accountant
        engaged by Northern  Lights to sign a letter and/or  agreement in a form
        approved by Gizmondo  which  acknowledges  his or her agreement (and the
        agreement  of his or her firm) to he bound by the  foregoing  The rights
        granted to Northern  Lights in this Section  shall  constitute  Northern
        Lights sole and exclusive right to examine Gizmondo 's books and records
        If Northern  Lights  establishes  as a result of an audit  conducted  by
        Northern Lights that there is an  underpayment  in the royalty  payments
        due to Northern  Lights of five per cent (5,'/,,) or more for the period
        covered by the audit,  then Gizmondo shall pay to Northern Lights,  upon
        settlement of the audit,  Northern,  Lights  accountable  auditor's fees
        actually paid together with the underpayment.

6.7     In the event that  Gizmondo is late in making any payment or if Northern
        Lights  establishes as a result of an audit conducted by Northern Lights
        that there is an  underpayment  in the royalty  payments due to Northern
        Lights of five percent (5%) or more for the period covered by the audit,
        then Gizmondo shall pay to Northern Lights interest from the due date of
        such  monies  until the day  payment is received at the rate of 11% such
        interest  to run from day to day and to  accrue  after as well as before
        any Judgment.

7.      MARKETING AND DISTRIBUTION

7.1     At Gizmondo's sole expense and subject to Northern Lights approvals as
        set forth in Section 4, Gizmondo shall prepare and execute a marketing
        plan in support of the sales effort for the Products. Gizmondo shall
        spend on its marketing. and promotional efforts for each Product, an
        amount commensurate with amounts spent by Gizmondo on its other top-tier
        products.

                                       10
<PAGE>

        Gizmondo shall use commercially  reasonable  efforts to market,  promote
        and  distribute  the  Window's  mobile  versions of the  Products in the
        Territory on no less favorable terms as Gizmondo  markets,  promotes and
        distributes other  interactive  games distributed by Gizmondo.  Northern
        Lights shall have approval of the marketing  plan, to be obtained  prior
        to, and as a condition of, a Product being  certified by Northern Lights
        as ready for release to manufacturing.

7.2     EULA.  Gizmondo shall include an End User License  Agreement (EULA) with
        the Products m paper or  electronic  form The EULA shall  indicate  that
        Gizmondo is the  licensor  of the  Product  and the  supplier of Product
        warranties and support The Products shall be licensed to End Users under
        terms as protective of Northern Lights  Intellectual  Property Rights as
        the terms specified  herein,  except in no event will the EULA grant any
        rights  to End  Users  beyond  the  right to use the  Product  as a game
        Product support  information shall include,  at a minimum  Gizmondo's or
        other designated partner or operator web site and e-mail address for end
        users to use to obtain  support for the  Product.  Northern  Lights must
        approve  any  material  changes to the EULA in  writing  that may affect
        Northern Lights rights under this Agreement.

7.3     Undertaking Penetration in Distribution Channels. Gizmondo shall use its
        commercially  reasonable efforts to cause the Products to be distributed
        in at least ninety  percent (90%) of the  Distribution  Channel in which
        Gizmondo  normally   distributes   consumer  software  products  in  the
        applicable Territory.

7.4     Gizmondo  grants to Northern  Lights the  unlimited  right to copy,  use
        during  the  Term  and  distribute  to  Northern  Lights  employees  and
        contractors the Gizmondo  versions of Products for reference  promotions
        and the like but not for resale or commercial exploitation.

7.5     Gizmondo shall provide to Northern  Lights at least (i) thirty (30) free
        copies of each retail  version of a Product for each  Platform  from the
        first  manufacturing  run of such  Product;  and (ii)  thirty  (30) free
        simulators to be able to play non retail  versions of a Product for each
        platform upon commercial release.  Northern Lights shall notify Gizmondo
        regarding  any  commitment  it may have to  provide  copies  to any Game
        Licensor and Gizmondo shall provide Northern Lights with such copies.

7.5     Gizmondo  will  provide  Northern  Lights with three (3)  pre-production
        units of the Device and fifteen (15)  commercial  retail versions of the
        Device when each such Device first becomes available.

7.7     Gizmondo shall include nn its website or webpage for a Product a link to
        the applicable Game website or webpage as designated by Northern Lights.

7.8     Northern  Lights  shall  use  commercially  reasonable  efforts  in  its
        discretion to cross promote the Products based on the Games.

8.      TERMINATION.

8.1     Term. This Agreement will continue in full force and effect for the Term
        unless terminated earlier as set forth below.

8.2     Termination  for Cause. A party hereto which is not in default or breach
        of this  Agreement may terminate this Agreement as it relates to a given
        Game licensed hereunder by written notice to the other party at any time
        prior to its  original  expiration  date (as may be  extended)  upon the
        occurrence of any of the following events (each an "Event of Default"):

        27      The  breach  or  default  of  any  material   term,   agreement,
                representation,  warranty,  covenant or obligation  set forth in
                this  Agreement as to such Game,  related  materials or Products
                and such  breach or default  continues  uncured  for a period of
                thirty (30) calendar days following the receipt by the breaching
                party of a written notice thereof; or

                                       11
<PAGE>

        (ii)    If either party becomes insolvent, files or has filed against it
                a petition under any bankruptcy law (which,  if involuntary,  is
                unresolved  after  sixty  (60)  calendar  days),   proposes  any
                dissolution, liquidation, composition, financial reorganization,
                or recapitalization with creditors, makes an assignment or trust
                mortgage for the benefit of the creditors. or a receiver trustee
                custodian,  or similar  agent is appointed  or takes  possession
                with respect to any property or business of such party

        Notwithstanding  the  foregoing,  the  parties  agree  that a good faith
        disagreement  as to the amount of any payments due under this  Agreement
        will not be considered a breach of this Agreement.

8.3     Partial Termination for Loss of Product Distribution Rights In the event
        Northern  Lights  loses the right to grant to  Gizmondo  the rights with
        respect  to  any  Northern   Lights   Materials,   Northern  Lights  may
        immediately  terminate the rights  granted to Gizmondo for such Northern
        Lights  Materials and the  associated  Product(s)  without effect on the
        rights  related  to  other  Northern  Lights  Materials  and  associated
        Product(s},  and, if so indicated by Northern  Lights due to its loss of
        rights,  without  a Sell Off  Period  for such  affected  Product(s)  as
        specified  in Section 8 5 If any  Minimum  Guarantees  for the  affected
        Product(s)  have yet to be fully recouped by Gizmondo,  Northern  Lights
        will  replace  the  affected   Product(s)  with  comparable   product(s)
        acceptable to Gizmondo.

8.4     Enforcement Right Without Termination. Without limiting the foregoing or
        anything to the contrary  contained  herein,  Northern  Lights breach of
        this Agreement  shall not cause this Agreement and the rights  hereunder
        to terminate unless Gizmondo specifically elects in writing to terminate
        the Agreement Without limiting the foregoing or anything to the contrary
        contained  herein,  Gizmondo's  breach of this Agreement shall not cause
        this  Agreement and the rights  hereunder to terminate  unless  Northern
        Lights specifically elects in writing to terminate the Agreement.

8.5     Effect of Expiration or  Termination.  The parties agree that in case of
        expiration  or  early  termination  of  this  Agreement  except  if such
        termination is due to a breach of this Agreement by Gizmondo:

        27      Gizmondo  shall have (i) one hundred  eighty (180) days from the
                date  of  expiration  or  termination  to sell  packaged  retail
                versions of the Product  already in inventory  prior to the date
                of  termination;  and (ii;  ninety  (90)  days  from the date of
                expiration or termination to continue to offer download versions
                of  the  Product  via  electronic   distribution   (each  period
                collectively, the "Sell Off Period");

        (ii)    Except as  otherwise  set forth in this  Agreement  the  parties
                shall  have no further  obligations  to one  another  under this
                Agreement.

8.6     Survival of Certain Obligations.  Subject to the terms of this Agreement
        to the contrary,  Sections  2.'7, 3, 6.6 and 9 through 114 shall survive
        the termination or expiration of this Agreement.

9       REPRESENTATIONS, WARRANTIES AND COVENANTS.

9.1     Representations,  Warranties and Covenants of Northern Lights.  Northern
        Lights  represents,  warrants and covenants that (i) Northern  Lights is
        duly incorporated,  validly existing and in good standing under the laws
        of the  ;jurisdiction in which it is  incorporated,  and that it has the
        full rights,  power,  legal  capacity  and  authority to enter into this
        Agreement,  and to carry out the terms  hereof (ii) this  Agreement  has
        been  executed  by its duly  authorized  representative  and is a valid,
        legally binding and  enforceable  obligation of Northern  Lights;  (iii)
        Northern  Lights is either the owner of the Games,  the Northern  Lights
        Materials including the Game Content the Licensed Marks (in countries of
        the Territory in which such Licensed Marks are registered,  as specified
        in the applicable  Game Exhibit) and all  Intellectual  Property  Rights
        therein or has  procured  all  necessary  rights and  licenses  from the
        owners  of such  rights  to enter  into and  carry out the terms of this
        Agreement; (iv) the Games and Game Content have

                                       12
<PAGE>

        not been sold, assigned,  leased,  licensed or in any other way disposed
        of by Northern  Lights or  mortgaged,  pledged or encumbered by Northern
        Lights in a manner that would violate the exclusive  license  granted to
        Gizmondo hereunder;  and (v} Northern Lights will comply in all material
        respects  with  all  applicable   laws,   statutes  and  regulations  in
        performing its obligations under this Agreement

9.2     Representations  and  Warranties  of  Gizmondo.   Gizmondo   represents,
        warrants and covenants that:

        (i)     It is duly  incorporated,  validly existing and in good standing
                under the laws of the  jurisdiction in which it is incorporated,
                and that it has the  full  rights,  power,  legal  capacity  and
                authority  to enter  into this  Agreement,  and to carry out the
                terms hereof,

        (ii)    this  Agreement  has  been  executed  by  its  duly   authorized
                representative  and is a valid,  legally binding and enforceable
                obligation of Gizmondo;

        (iii)   Gizmondo  has  the  full  rights,   power,  legal  capacity  and
                authority  to enter  into this  Agreement,  and to carry out the
                terms hereof; and materials furnished by Gizmondo, if any, under
                this  Agreement,  do not or will not infringe  upon or otherwise
                violate the rights of any third party;

        (iv)    Gizmondo   will  comply  in  all  material   respects  with  all
                applicable  laws,  statutes and regulations in distributing  the
                Products under this Agreement;

        (v)     Gizmondo has full power and  authority to enter into and perform
                this Agreement without approval from any governmental  entity or
                third party,  and that such ability is not limited or restricted
                by any  agreements  or  understanding  between  Gizmondo and any
                other person or company;

        (vi)    Gizmondo  and its  affiliated  companies  have the  know-how and
                experience  to develop  the  Products  and are  otherwise  fully
                capable of performing the obligations  under this Agreement,  or
                will engage Third Party  Developers  approved by Northern Lights
                who have such know-how, experience and capability;

        (vii)   Gizmondo shall maintain sufficient  insurance coverage to enable
                it to meet its obligations  created by this Agreement and by law
                Without  limiting the  foregoing.  Gizmondo  warrants  that such
                insurance  shall include the following  lines o` coverage to the
                extent the  Agreement  creates  exposures  generally  covered by
                these insurance policies  Commercial General Liability,  product
                liability and Employer's Liability.

        (viii)  The  Products,   computer  code   technology,   information  and
                materials  created,  developed  or used by Gizmondo  pursuant to
                this  Agreement,  other than the Game  Content will not infringe
                upon or misappropriate  the Intellectual  Property Rights or any
                other  legal  rights of any third party and should any aspect of
                thereof, or such other computer code, technology  information or
                materials  created or  developed  by  Gizmondo  pursuant to this
                Agreement, become, or, in Northern Lights reasonable opinion, is
                likely  to   become,   the   object  of  any   infringement   or
                misappropriation  claim  or  suit.  Gizmondo  will  use its best
                efforts to procure, at Gizmondo's expense, the right to use such
                computer  code,  technology,  information  or  materials  in all
                respects,  or to replace or modify the affected material to make
                it  non-infringing,  and if it is unable to do so at  reasonable
                expense, it shall be entitled to surrender its rights under this
                Agreement with respect to the Product or Products in question.

 10.     INDEMNIFICATION.

10.1    Indemnification  by Northern  Lights.  Northern  Lights hereby agrees to
        indemnify.  defend and hold  harmless  Gizmondo from and against any and
        all suits, losses,  liabilities,  damages, awards, claims,  settlements,
        costs and expenses, including reasonable attorneys' fees,

                                       13
<PAGE>

        arising out of or otherwise  relating to a breach by Northern  Lights of
        its  warranties,   representations   and  covenants  contained  in  this
        Agreement.

10.2    Indemnification by Gizmondo. Gizmondo hereby agrees to indemnify, defend
        and hold harmless  Northern  Lights  against any and all suits:  losses,
        liabilities,  damages, awards. claims, settlements,  costs and expenses,
        including  reasonable  attorneys'  fees,  arising  out  of or  otherwise
        relating to a breach by Gizmondo of its warranties,  representations and
        covenants contained in this Agreement.

10.3    Limitation On Indemnification.  Notwithstanding this Section 10, neither
        party  shall have  obligation  to  indemnify  the other if the Claim for
        which indemnification is sought arises Out of a breach of this Agreement
        or of a  representation  warranty or covenant  made by the party seeking
        indemnification

10.4    Notice of Claim.  In the event either party wishes to assert a claim for
        indemnification  hereunder (the  Indemnified  Party"),  it shall deliver
        written notice (a 'Claims Notice') to the other party (the "Indemnifying
        Party"), specifying the facts constituting the basis for, and the amount
        (if known) of the claim asserted.

10.5    Right to Contest Claims of Third Parties.

        10.5.1  If an Indemnified  Party  asserts,  or may in the future seek to
                assert,  a claim for  indemnification  hereunder  because of any
                action,  cause of action or suit  brought  by any  person  not a
                party to this  Agreement  {a "Third  Party  Claimant")  that may
                result in a loss with  respect  to which the  Indemnified  Party
                would be entitled to  indemnification  pursuant to this  Section
                (an "Asserted  Liability'),  the Indemnified Party shall deliver
                to the Indemnifying  Party a Claims Notice with respect thereto,
                which Claims Notice shall in accordance  with the  provisions of
                Section 10.4 hereof be delivered as promptly as practical  after
                an  action  in  connection  with  such  Asserted   Liability  is
                commenced against the Indemnified Party.

        10.5.2  The Indemnifying  Party shall have the right upon written notice
                to the Indemnified  Party, to  investigate,  contest,  defend or
                settle  any  Asserted  Liability  that may result in a loss with
                respect  to  which  the   Indemnified   Party  is   entitled  to
                indemnification  pursuant  to this  Section,  provided  that the
                Indemnified  Party  may at its  option  and at its own  expense.
                participate  in  the  investigation,   contesting,   defense  or
                settlement    of   any   such   Asserted    Liability    through
                representative,,;  and counsel of its own and, provided further,
                that the  Indemnifying  Party  shall  not  settle  any  Asserted
                Liability  unless such settlement  provides as an  unconditional
                term an  immediate  release  of the  Indemnified  Party  for all
                liability  with  respect  to such  Asserted  Liability,  and the
                Indemnified  Party  has  consented  to the  other  terms of such
                settlement  If  requested  by  the   Indemnifying   Party,   the
                Indemnified  Party  will,  at the sole cost and  expense  of the
                Indemnifying  Party,  cooperate with reasonable  requests of the
                Indemnifying  Party and its counsel in  contesting  any Asserted
                Liability. including, if appropriate and related to the Asserted
                Liability in question,  in making any  counterclaim  against the
                Third Party Claimant, or any cross-complaint  against any Person
                (other than the  Indemnified  Party or its  Affiliates).  If the
                Indemnifying  Party  fails  to  undertake  the  defense  of  the
                Asserted Liability  reasonably  promptly,  the indemnified Party
                may at its option and at the Indemnifying Party's expense, to do
                so in such manner as it deems  appropriate;  provided,  however,
                that the  Indemnified  Party shall not settle or compromise  any
                Asserted Liability for which it seeks indemnification  hereunder
                without  the prior  written  consent of the  Indemnifying  Party
                (which shall not be unreasonably withheld or delayed).

        10.5.3  The Indemnifying  Party may participate in (but not control) the
                defense of any  Asserted  Liability  that it has not  elected to
                defend with its own counsel and at its own expense.

        10.5.4  The  Indemnifying  Party and the  Indemnified  Party  shall make
                mutually  available  to each other all relevant  information  in
                their possession not protected under

                                       14
<PAGE>

                confidentiality  agreements  relating to any Asserted  Liability
                (except to the extent that such action would result in a loss of
                attorney-client  privilege or would violate any applicable  law)
                and shall cooperate with each other in the defense thereof.

10.6    Except for the parties' indemnification obligations set forth in section
        10, in no event shall either party be liable for  incidental  exemplary,
        punitive,  special or  consequential  damages of any kind or the loss of
        anticipated profits incurred or suffered by the other party arising from
        any breach of this agreement. In no event will Northern Lights aggregate
        liability  under  this  agreement  exceed  the  amount  of fees  paid to
        northern  lights  hereunder.  Nothing  m this  exclusion  shall  exclude
        liability for fraud.

11.     CONFIDENTIALITY.

11.1    The parties to this  Agreement  recognize  that in  connection  with the
        performance  of this  Agreement,  each of them may disclose to the other
        information  about the disclosing  party's  business or activities which
        the disclosing party considers proprietary and confidential. All of such
        proprietary and confidential  information of the disclosing party (which
        shall  include,  without  limitation;   this  Agreement,  all  business,
        financial and technical information of a party, identities of customers,
        clients  or   licensees,   proprietary   software  code  and  any  other
        information  whether  oral or written  which is not  generally  known or
        available  to the public) is  hereinafter  referred to as  "Confidential
        Information."

11.2    The party who receives any Confidential  Information  agrees to maintain
        the confidential  status for such Confidential  Information,  not to use
        any such Confidential Information for any purpose other than the purpose
        for which it was originally  disclosed to the receiving party and not to
        disclose any of such Confidential Information to any third party.

11.3    All terms and conditions of this Agreement shall be deemed  Confidential
        Information  as  defined  herein.   In  the  event  Gizmondo   transfers
        Confidential Information to other parties (e.g., Third Party Developers)
        as allowed under this Agreement,  that party shall enter into agreements
        with such parties which protect the Confidential Information of Northern
        Lights to no less a degree than it is protected  herein Without limiting
        the  foregoing,  ail terms and  conditions  of this  Agreement  shall be
        considered  confidential  and shall not be  disclosed  (except to either
        party's  attorneys or accountants  on a need-to-know  basis) without the
        prior written consent of the other party.

11.2    Press-Release. The parties shall issue a press release  announcing  this
        relationship  provided that such press release shall be subject to their
        mutual approval.

11.3    Injunctive Relief.  Each party further  acknowledges and agrees that, in
        the event of a breach or threatened  breach of this  Section,  the other
        party may have no adequate  remedy in money or damages and,  accordingly
        shall be entitled to seek  preliminary.  permanent and other  injunctive
        relief.

11.4    Non-Impairment.  Nothing in this Agreement will affect any obligation of
        either  party  to  maintain  the  confidentiality  of  a  third  party's
        confidential  information.  Nothing in this  Agreement  will  impair the
        right of either party to use, develop or market  technologies,  ideas or
        products  similar  to those  of the  other  party  so long as such  use,
        development or marketing does not infringe or the intellectual  Property
        Rights of the other party.

12.     PROTECTION OF PROPRIETARY RIGHTS.

12.1    Third Party  Infringement  If either party hereto becomes aware that any
        Product or Game Content  governed by this  Agreement has been or will be
        infringed, such party shall promptly notify the other thereof in writing
        and the parties shall promptly seek to mutually determine a joint course
        of  action  with  respect  to  said  infringement  If  joint  action  is
        undertaken, the expenses incurred by each party will be paid off the top
        from any  recovery  received  in  connection  with such  action  and the
        remainder  of such  recovery  shall  then be  split  by the  parties  in
        proportion to their expenses for such action.  If, however,  no mutually
        acceptable

                                       15
<PAGE>

        basis for joint action is agreed upon within a reasonable period of time
        and Gizmondo  reasonably believes that action is required to protect its
        rights,  Gizmondo  may take action in its own name and  Northern  Lights
        shall  cooperate  including  with  respect to the issues of standing and
        venue,  with Gizmondo in connection  with the prosecution of such action
        at Northern  Lights  expense and reasonable  request.  If,  however:  no
        mutually  acceptable  basis for joint  action  is agreed  upon  within a
        reasonable  period  of time  and  Gizmondo  fails  to take  action  in a
        reasonable amount of time thereafter, Northern Lights may take action in
        its own name.  and Gizmondo shall  cooperate,  including with respect to
        issues of standing and venue,  with Northern  Lights in connection  with
        the prosecution of such action at Northern Lights expense and reasonable
        request.  The party who  commences any such  unilateral  action shall be
        entitled  to  recover  its  actual  out of  pocket  costs  and  expenses
        associated  with such action with the balance  retained by Gizmondo  and
        deemed Net Receipts.

12.2    Third Party Claims.  Gizmondo will promptly  notify  Northern  Lights in
        writing of any legal proceeding  instituted,  or written claim or demand
        asserted  by,  any third  party  against  Gizmondo  with  respect to the
        infringement of any  Intellectual  Property  Right,  which is alleged to
        result from the  license,  sale or use of the Game  Content by Gizmondo.
        Such a claim shall be deemed a breach of Northern Lights representations
        and warranties.

13.     MISCELLANEOUS.

13.1    Public Announcements. Neither party will make any public announcement in
        relation to this Agreement  without the express  written  consent of the
        other.

13.2    Assignment.  Gizmondo  may not  assign  this  Agreement  or any  portion
        thereof,  to any third  party  other  than  Gizmondo  Affiliates  unless
        Northern Lights expressly  consents to such assignment in writing,  such
        consent shall not be unreasonably withheld.

13.3    Force  Majeure.  Neither  party will be  responsible  for any failure to
        perform its  respective  obligations  under this Agreement due to causes
        beyond its reasonable  control (each a 'Force Majeure Event") including,
        but not limited to, strikes,  riots  embargoes,  war, acts of terrorism,
        acts  of  civil  or  military  authorities,   fire  floods,   explosion,
        earthquakes, accidents. network catastrophes, acts of God. and all other
        delays beyond the party's  reasonable  control  provided that such party
        gives prompt  written  notice of such Force  Majeure  Event to the other
        party within five (5) business  days. The time for  performance  will be
        extended for a period equal to the duration of the Force Majeure  Event,
        but in no case longer than thirty (30) days.

13.4    Severability.  In the event that any provision in this Agreement will be
        subject  to  an   interpretation   under  which  it  would  be  void  or
        unenforceable,  such provisions will be construed so as to constitute it
        a valid and enforceable provision to the fullest extent possible, and in
        the event that it cannot be so construed,  it will,  to that extent,  be
        deemed  deleted  and  separable  from  the  other   provisions  of  this
        Agreement,  which  will  remain  in full  force and  effect  and will be
        construed to effectuate its purposes to the maximum legal extent.

13.5    Notice Any notice herein required or permitted to be given will be given
        in writing and may be  delivered  personally  to any officer of Northern
        Lights or Gizmondo, or as appropriate; by express courier, registered or
        certified   mail  (postage  and  fees  prepaid,   with  return   receipt
        requested), or by facsimile transmission to the address set forth below.
        Either  party may from time to time  specify or change the  address  for
        such notice by giving  written  notice thereof to the other party in the
        manner provided in this Section. A notice will be deemed given three (3)
        days after deposit if by express courier, five (5) days after deposit if
        by regular mail, or upon transmission if by facsimile.

                        With a copy to:        Gizmondo Europe Ltd
                                               1 Meadow Gate Avenue
                                               Farnborough Business Park
                                               Farnborough
                                               Hants

                                       16
<PAGE>

                                               GU14 6FG England

                        If to Northern Lights: Northern Lights Software Ltd
                                               6 Albermarle Street
                                               London W15 4HG
                                               England

13.6    Independent Contractors The parties hereto are independent  contractors.
        Northern  Lights  will not be  entitled  to any  compensation  except as
        provided in the Agreement.  Each party shall be responsible  for payment
        of  its  employees'  compensation,   disability  benefits,  unemployment
        insurance, and for withholding income taxes and social security. Neither
        party shall be entitled  to receive any  benefits  provided by the other
        party to such party's  employees.  Neither  Gizmondo nor Northern Lights
        shall be deemed to be partners or agents of the other In addition to the
        parties other  indemnification  obligations set forth herein, each party
        agrees to indemnify and hold the other and its  directors,  officers and
        employees   harmless  from  and  against  any  claims,   liabilities  or
        obligations  asserted  against any of them for not withholding  taxes or
        making unemployment and worker compensation  payments and the like, as a
        result   of   such   party's   independent   contractor   status.   Such
        indemnification  shall  include  any  penalties  and  interest  assessed
        thereon as well as the payment of reasonable attorneys' fees.

13.7    Governing  Law  2nd  Venue,   This  Agreement  shall  be  construed  and
        controlled  by  English  law and the  parties  shall be  subject  to the
        non-exclusive  jurisdiction of the English Courts. In any action or suit
        to enforce any right or remedy under this  Agreement or to interpret any
        provision of this Agreement,  the prevailing  party shall be entitled to
        recover its reasonable attorney's fees, costs and other expenses.

13.8    Headings and Presumptions. The headings of the sections and sub-sections
        of this Agreement are provided for convenience only and will not be used
        to limit or construe the contents of this Agreement As this Agreement is
        a negotiated  agreement reviewed by each party's legal counsel and there
        will be no  presumption  for or against one party on the ground that the
        other party was  responsible for preparing this Agreement or any part of
        it.

13.9    Counterparts.  This Agreement may be executed in  counterparts,  each of
        which will be deemed an original  Agreement  for all  purposes and which
        collectively will constitute one and the same Agreement.

13.10   Remedies.  Unless  expressly set forth to the contrary,  either  party's
        election of any  remedies  provided  for in this  Agreement  will not be
        exclusive of any other remedies available  hereunder or otherwise at law
        or in equity.

13.11   Complete  Agreement,  Waiver,  and  Modification  This Agreement and the
        Schedule   attached  hereto   constitutes  the  complete  and  exclusive
        understanding  between the parties  with  respect to the subject  matter
        hereof,  superseding  all prior  negotiations,  preliminary  agreements,
        correspondence,  proposals or  understandings  both written or oral.  No
        waiver  or  modification  of any  provision  of this  Agreement  will be
        binding unless it is in writing and signed by authorized representatives
        of each of the parties.  No waiver of a breach  hereof will be deemed to
        constitute  a waiver  of a  further  breach,  whether  of a  similar  or
        dissimilar nature.

                                       17
<PAGE>

ACCEPTED AND AGREED TO:

FOR AND ON BEHALF OF                          FOR AND ON BEHALF OF
GIZMONDO EUROPE                               NORTHERN LIGHTS

By: _________________________                 By: _________________________

Its__________________________                 Its__________________________

Date:________________________                 Date:________________________

                                       18
<PAGE>

                                   EXHIBIT A
                                   ---------

                              GAME EXHIBIT FORMAT
                              -------------------

Game Title and Version:                         Colors/city

Developer:                                      Gizmondo or other approved third
                                                party developer

Product:                                        Gizmondo 2020

Platform:                                       Gizmondo 2020

U K Release Date:                               October 2004

U S Release Date:                               April 2005

Projected Sales Figures:                        Five million

Countries of Licensed Mark Registration:        USA, Europe (under application)

Rights Restrictions:                            Exclusive to Gizmondo

Third Party Approvals:                          Northern Lights

Content provided Gizmondo:                      Publishing rights

Licensed Marks:                                 TBD

Game Title Presentation:                        Colors/city

Studio Logo:                                    Northern Lights Software Ltd

Northern Lights Attributions:                   Title and logo

Third Party Credit Obligations:                 Jenson Button by agreement
                                                between Gizmondo and Jenson
                                                Button.
                                                Assigned developer

Development Schedule:                           End of second quarter 2005

                                       19
<PAGE>

                                    EXHIBIT B
                                    ---------

                                QUALITY STANDARDS
                                -----------------

(1)     The  Product  shall  appear,  operate  and  perform  in all  substantial
        respects  consistent  with the final design  specifications  approved by
        Northern Lights for the Product.

(2)     The Product shall be of similar quality and playability to that of other
        games published by Gizmondo on the same platform.

(3)     The  Product  shall  qualify for an ESRB  rating or  equivalent  content
        rating no more restrictive than the rating designated for the Game.

(4)     In developing the Product, Gizmondo shall ensure that the Product runs
        on and is fully compatible with the latest version of the applicable
        Platform, and Gizmondo shall comply with Northern Lights logo
        certification requirements for applications through the Designed for
        Windows for WinCe net logo programs.

                                       20
<PAGE>

                                    EXHIBIT C
                                    ---------

                             BRANDING SPECIFICATIONS
                             -----------------------

Branding Specifications:

1.      Gizmondo  may  use  the  Licensed  Marks  only  on  Product   packaging,
        documentation  and marketing  materials in accordance with the Agreement
        and specifications below.

2.      Gizmondo may use the Licensed Marks in the manner set forth on each game
        exhibit  showing the  specific  artwork  used in relation to that title.
        Artwork for each title is listed  under "Game  Title  Presentation"  and
        artwork for the Studio is listed under "Studio Logo."

3.      Gizmondo's  name;  logo or trademark must appear on any materials  where
        the Licensed Marks are used and must clearly  identify the source of the
        Products as Gizmondo.

4.      Licensed  Marks may not be used in any manner  that  expresses  or might
        imply   Northern   Lights   affiliation,    sponsorship,    endorsement,
        certification, or approval, other than as contemplated by the Agreement.

5.      Except as expressly licensed in the Agreement, Licensed Marks may not be
        included in any non-Northern Lights trade or business name, domain name,
        product or service  name,  logo,  trade dress design,  slogan,  or other
        trademarks.

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

7.      Gizmondo  shall mark the first and most  prominent  use of the  Licensed
        Marks in the  Product,  including on packaging  and in  advertising  and
        marketing  materials,  with the trademark  symbols  provided by Northern
        Lights on each Game Exhibit or other appropriate trademark  designations
        set forth from time to time by Northern Lights.

8.      All  published   material  in  relation  to  Northern   Lights  branding
        specification  is to be  approved  and  countersigned  by an  officer of
        Northern Lights Software Ltd.

                                       21
<PAGE>

                                    EXHIBIT D
                                    ---------

                   FINANCIAL REPORTING AND CONTACT INFORMATION
                   -------------------------------------------

        Gizmondo Information                     Northern Lights Information
--------------------------------------------------------------------------------
 Name:                                        Name:
 Gizmondo Ltd.                                Northern Lights
--------------------------------------------------------------------------------
 Street Address and/or post office box:       Street Address and/or post office
 1 Meadow Gate Avenue, Farnborough            box 6 Albermarle Street
 Business Park
--------------------------------------------------------------------------------
 City and State / Province:                   City and State 1 Province:
 Farnborough Hants                            London
--------------------------------------------------------------------------------
 Country and Postal Code:                     Postal Code:
 GU14 6FG, England                            W15 4HG, England
--------------------------------------------------------------------------------
 Accounting Contact Name and title:           Attention:
 Ali Khan                                     Benny Karlsson
 Finance Director
--------------------------------------------------------------------------------
 Phone Number:                                Phone Number:
 01252 557 100                                0207 6299870
--------------------------------------------------------------------------------
 Fax Number:                                  Fax Number:
 01252 557 101                                0207 629 3022
--------------------------------------------------------------------------------
 E-Mail Address                               E-Mail Address (if applicable):
 all khan@tigertelematics.com                 mrbennykarisson@swipnet.se

--------------------------------------------------------------------------------
 Contact address                              With a Copy of the Notice To:

 Gizmondo Europe Ltd                          Tiger Telematics Inc.
 1 Meadow Gate Avenue
 Farnborough Business
 Farnborough
 Hants
 GU14 6FG
--------------------------------------------------------------------------------

Gizmondo shall remit payment to the following account (or such other account(s)
as Northern Lights may specify)

Bank details:

Account no 31361104
Sort code  40-D5-50
Bank:      HSBC
Address:   1 St James Street, London

                                       22
<PAGE>

                                    EXHIBIT E
                                    ---------

                              GIZMONDO'S AFFILIATES
                              ---------------------

1. Tiger Telematics Inc.
2. Indie Stuidios
3. Warthog Games Ltd.
4. Any assigned developer approved by both parties

                                       23
<PAGE>

                                   SCHEDULE F
                                   ----------

                              GAME COMPLETION DATES
                              ---------------------

                                PUBLISHING RIGHTS
                                -----------------

Colors/City 1st quarter 2005

                                       24

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