Document:

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                                                                    EXHIBIT 10.1

                             DISTRIBUTION AGREEMENT

         This Distribution Agreement (this "Agreement") is made as of August 23,
2001 (the "Effective Date") by and between Vivendi Universal Interactive
Publishing North America ("Universal"), a Delaware corporation with offices at
6080 Center Drive, Los Angeles, California, 90045 , and INTERPLAY ENTERTAINMENT
CORP. ("Interplay"), a Delaware corporation with offices at16815 Von Karman
Avenue, Irvine, California 92606.

                                    RECITALS

         A.       Universal and Interplay are both in the business of creating,
publishing, manufacturing, marketing and distributing interactive entertainment
software for a variety of hardware platforms.

         B.       Interplay desires to deliver to UNIVERSAL, and UNIVERSAL
desires to receive from Interplay on a consignment basis, certain Products (as
defined herein) published by Interplay for sale and distribution by UNIVERSAL.
UNIVERSAL also desires to provide marketing and other services for the Products
which UNIVERSAL distributes on behalf of Interplay hereunder.

         NOW, THEREFORE, the parties hereby agree as follows:

1.       CERTAIN DEFINITIONS

         The following terms will have the following meanings as used in this
Agreement:

         1.1      "Baldur's Gate: Dark Alliance" means the interactive
                  entertainment software game currently known as Baldur's Gate:
                  Dark Alliance for the Playstation 2 platform and currently in
                  development by Interplay.

         1.2      "Scheduled Title" means the entertainment software products
                  (including, but not limited to, all sequels, updates,
                  subsequent versions, spin-offs and derivative works arising
                  therefrom) that Interplay publishes or is planning to publish
                  in the regular course of its business in the Territory (or
                  that Interplay otherwise has the right to market and
                  distribute in the Territory) during the Term, including but
                  not limited to those titles listed on Exhibit B. Those
                  Scheduled Titles specifically listed in Exhibit B shall be
                  referred to as the "Named Title(s)."

         1.3      "Product" means each of the software products listed in
                  Exhibit A attached hereto under the heading "Products", plus
                  Baldur's Gate: Dark Alliance, plus any Named Titles as
                  provided in Section 1.1 above, plus any Scheduled Title, on
                  all Platforms on which Interplay, in its reasonable
                  discretion, decides to publish the Product.

         1.4      "Escrow Instructions" means the Escrow Instructions executed
                  by the parties and attached hereto as Exhibit C.

         1.5      "SKU" means a version of a Product designed to operate on a
                  particular Platform. An example of a SKU is a version of a
                  Product designed to play on the Sony PlayStation 2 platform.

         1.6      "Platform" means each of the following: personal computers
                  (regardless of manufacturer or operating system), PlayStation,
                  PlayStation 2, N64, GameCube, Game Boy, Game Boy Color, Game
                  Boy Advance and Xbox.

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

         1.7      "Loan Agreement" means that certain Loan and Security
                  Agreement between Interplay and LaSalle Business Credit, Inc.
                  dated April 11, 2001.

         1.8      "Territory" means the United States and its possessions and
                  Canada.

         1.9      "Term" means the period beginning on the Effective Date and
                  ending on the earlier to occur of (i) December 31, 2003 or
                  (ii) the termination of this Agreement pursuant to Section
                  11.1 or 11.2. Notwithstanding the foregoing, in the event that
                  a Named Title is released within one year of December 31,
                  2003, then the Term with respect to such Title shall be one
                  (1) year from the date of such Named Title's release.

         1.10     "Third Party Licensor" means any licensors or owner (other
                  than Interplay or UNIVERSAL) of intellectual property that is
                  used in any Product.

         1.11     "Third Party License" means any license by a Third Party
                  Licensor of intellectual property that is used in any Product.

2.       DISTRIBUTION RIGHT

         2.1      Grant of Option/Distribution Rights.
                  -----------------------------------
                  (a) Interplay hereby grants to UNIVERSAL, and UNIVERSAL hereby
                  accepts from Interplay, the exclusive distribution rights in
                  the Territory to Baldur's Gate: Dark Alliance.

                  (b) Subject to the disbursement of the Funds (as defined in
                  Section 13.17 of this Agreement) to Interplay, Interplay
                  hereby grants to UNIVERSAL, and UNIVERSAL hereby accepts from
                  Interplay, the first option to obtain exclusive distribution
                  rights in the Territory to each Scheduled Title. In regard to
                  Named Titles Interplay hereby grants to UNIVERSAL, and
                  UNIVERSAL hereby accepts from Interplay the exclusive
                  distribution rights in the Territory to each Named Title.
                  Interplay shall present to UNIVERSAL, for UNIVERSAL's review
                  and comment, the Alpha Version of each Scheduled Title. The
                  "Alpha Version" of an Scheduled Title is a complete, running
                  software program containing all the features of the Scheduled
                  Title with all software modules integrated and working
                  together in a usable and testable fashion, but not necessarily
                  including the title screen or demonstration mode. With respect
                  to each such Alpha Version of each such Scheduled Title,
                  UNIVERSAL shall have the right at any time during the *** days
                  following UNIVERSAL's receipt of such Alpha Version to
                  exercise its option to distribute all, but not less than all,
                  SKUs of such Scheduled Title in the Territory, and shall
                  inform Interplay in writing of its decision. If UNIVERSAL
                  fails to provide any written notice to Interplay within such
                  *** day period, UNIVERSAL shall be deemed to have exercised
                  its option to distribute all SKUs of such Scheduled Title in
                  the Territory. If UNIVERSAL elects to exercise it's right to
                  distribute a particular Scheduled Title in the Territory
                  hereunder, then such Scheduled Title will be considered a
                  Product for the purposes of this Agreement. If UNIVERSAL
                  declines to distribute the Scheduled Title, then UNIVERSAL
                  will have no further rights whatsoever in the Scheduled Title
                  and such Scheduled Title will not become a "Product" under
                  this Agreement. Notwithstanding the foregoing, UNIVERSALagrees
                  to exercise its option to obtain exclusive distribution rights
                  in the Territory to each Scheduled Title submitted by
                  Interplay which is of reasonable quality. Interplay agrees to
                  deliver written reports to UNIVERSAL on a regular monthly
                  basis setting forth the identity and the projected release
                  dates for Scheduled Titles then in development. For clarity,
                  in the event the Funds are not disbursed to Interplay for any
                  reason whatsoever, except as provided in Section 2.1(a) above,
                  UNIVERSAL shall have no rights whatsoever with respect to any
                  Scheduled Titles, Named Titles or any other entertainment
                  software products (including, but not limited to, all sequels,
                  updates, subsequent versions, spin-offs and derivative works
                  arising therefrom) that Interplay publishes or is planning to
                  publish.

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

         2.2      Grant of Rights in Products.
                  ---------------------------

                  (a)      Marketing and Distribution Rights. Interplay hereby
                           grants to UNIVERSAL the exclusive (except as
                           expressly set forth in Sections 2.5 and 2.6 below)
                           right and license to market (including through public
                           performance and display), distribute and sell the
                           Products on behalf of Interplay on an individual-unit
                           (i.e., non-bundled), packaged-goods basis in the
                           Territory and during the Term to wholesalers,
                           dealers, subdistributors, online resellers, direct
                           marketers, retailers and/or other customers (and on a
                           non-exclusive basis, directly to the public) on terms
                           that are reasonable and customary in the interactive
                           entertainment software industry. UNIVERSAL may use
                           subcontractors (in each case acting on UNIVERSAL's
                           behalf) in exercising the foregoing rights.

                  (b)      Manufacturing Rights. Interplay hereby grants to
                           UNIVERSAL the exclusive (except as set forth in
                           Section 2.5 and 3.10 below) right and license to
                           copy, reproduce and otherwise manufacture the
                           Products (including each of the component parts that
                           go into a final, fully packaged Product unit) on
                           behalf of Interplay. The parties will mutually agree
                           on the number of units of each SKU that will be
                           manufactured in each manufacturing run of Product
                           units. UNIVERSAL may use subcontractors (in each case
                           acting on UNIVERSAL's behalf) in exercising the
                           foregoing rights. Notwithstanding the foregoing, with
                           regard to the manufacture of PC Products only, and
                           following the initial manufacturing run, UNIVERSAL
                           shall not be required to receive the consent of
                           Interplay as to the number of units of each SKU that
                           will be manufactured, provided, however, if Interplay
                           objects to the number of units of each SKU being
                           manufactured, UNIVERSAL shall be required to receive
                           Interplay's consent on all subsequent manufacturing
                           runs.

         2.3      License to Use Product Trademarks. Interplay hereby grants
                  UNIVERSAL a non-exclusive, non-transferable license within the
                  Territory and during the Term to use (i) the trademarks
                  associated with the Products (collectively, the "Product
                  Marks"), and (ii) the Interplay name and logo and other
                  Interplay publishing brands as designated by Interplay
                  (collectively, the "Interplay Marks"), solely in connection
                  with UNIVERSAL's exercise of the rights granted in Section 2.2
                  above.

         2.4      Approval by Licensors. Notwithstanding any other provision of
                  this Agreement to the contrary, UNIVERSAL's rights and
                  obligations under this Agreement with respect to each Product
                  will be conditioned upon such Product having been approved for
                  distribution in the Territory by the appropriate platform
                  licensor (e.g., Sony, Microsoft or Nintendo) if any, and by
                  any applicable content licensors (including any Third Party
                  Licensors) and other entities whose approval is legally or
                  contractually required to allow the distribution by UNIVERSAL
                  of the Products, and use by UNIVERSAL of the Product Marks, in
                  the Territory as set forth in this Section 2. Interplay will
                  use its diligent good faith efforts to secure such necessary
                  approvals so that the Products may be marketed and distributed
                  as provided in this Agreement.

         2.5      OEM Rights. Without limiting the generality of Section 2.7
                  below, Interplay specifically reserves the right to authorize
                  third parties to distribute Products with third-party software
                  and/or hardware in the form of a single combined product and
                  selling such combined products in or outside of the Territory
                  and as a premium to augment the value of non-computer related
                  products and so-called "covermounts" in and outside the
                  Territory ("OEM Licenses"). Interplay agrees that it will not
                  grant any OEM Licenses with respect to any Product that
                  authorize distribution of any combined product that includes
                  such Product to commence earlier than *** following the first
                  commercial distribution of such Product by UNIVERSAL
                  hereunder, without the prior written approval of UNIVERSAL.

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

         2.6      Interplay Direct Sales. Interplay shall be entitled to sell
                  Products directly to customers through Interplay's own direct
                  sales program, including offering the Products for sale direct
                  to consumers through Interplay's direct mailing programs,
                  Interplay's telemarketing programs, Interplay's websites and
                  Interplay's on-line stores; provided, that Interplay will only
                  sell directly itself, and will not engage third parties to
                  sell directly to customers on Interplay's behalf, although
                  Interplay may engage third-party subcontractors to fulfill
                  orders that Interplay has itself received directly from
                  consumers.

         2.7      Reserved Rights. All rights not expressly granted to UNIVERSAL
                  in this Agreement, including all rights outside the Territory,
                  any electric transmission rights (such as through cable, the
                  Internet and any on-line services), and all other
                  merchandizing rights of any kind whatsoever, are specifically
                  excluded from this Agreement and are retained and reserved by
                  Interplay. Interplay also reserves the right to publish
                  trailers and demos of the Products (which trailers and demos
                  will be made available to UNIVERSAL for its use hereunder in
                  marketing the Products) in combination with other
                  entertainment software products that are not Products under
                  this Agreement. Any use by Interplay of such reserved rights,
                  including the use or authorization of other to use or exploit
                  the Products, the Product Marks and/or the Interplay Marks, or
                  any portion thereof, for the purpose of Interplay's reserved
                  rights, shall not be deemed unfair competition, nor
                  interference with nor infringement of UNIVERSAL's rights
                  hereunder.

3.       OBLIGATIONS OF UNIVERSAL

         3.1      Marketing and Sales Efforts. UNIVERSAL will use commercially
                  reasonable, good-faith efforts, but in no event less than
                  efforts substantially equivalent to those employed by
                  UNIVERSAL in the marketing and distribution of
                  UNIVERSAL-published products of like sales potential and
                  demographic target, to market and distribute the Products, and
                  solicit and support sales of the Products, throughout the
                  Territory.

         3.2      Marketing. UNIVERSAL will create a marketing plan, and will
                  design all packaging and Product-specific marketing materials,
                  for each Product. All such marketing plans, packaging and
                  Product-specific marketing materials will be subject to the
                  prior approval of Interplay, which approvals will not be
                  unreasonably withheld or delayed by Interplay. UNIVERSAL will
                  include the Products in UNIVERSAL's general sales and
                  marketing literature and direct mail marketing materials on a
                  reasonably consistent basis with other UNIVERSAL-published
                  products of similar sales potential and demographic target.
                  Subject to Interplay's approval in each case (which approvals
                  will not be unreasonably withheld or delayed by Interplay),
                  UNIVERSAL will secure all media-buys for Product advertising.
                  UNIVERSAL will be entitled to distribute up to *** of each SKU
                  to its marketing contacts and customers as demonstration
                  copies (on a not-for-resale basis) without owing Interplay any
                  Interplay Proceeds (as defined in Section 6.1 below) for such
                  units; provided that such maximum number of units may be
                  increased by UNIVERSAL on a SKU-by-SKU basis subject to the
                  approval of Interplay, which approval will not be unreasonably
                  withheld or delayed.

         3.3      Branding and Packaging. On Product packaging, in
                  Product-specific marketing materials and in any specific
                  reference to a Product in any other UNIVERSAL sales or
                  marketing literature, Interplay's name or other designated
                  brand shall appear more prominently than UNIVERSAL's or any
                  third party's, name, logo or brand. The front of the outside
                  packaging of the Products will include information as to
                  machine, medium and other operating requirements (such as
                  memory) necessary for the effective use of the Products by
                  consumers. The design of such packaging will also include all
                  relevant bar code information. At UNIVERSAL's option,
                  UNIVERSAL may incorporate artwork (to be subject to
                  Interplay's approval) that shows UNIVERSAL's or a wholly-owned
                  subsidiary or parent company of UNIVERSAL, provided such
                  wholly-owned subsidiary or parent company of UNIVERSAL is in
                  the interactive entertainment software business ("UNIVERSAL
                  Subsidiary") name and

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

                  logo (which is intended to inform customers that UNIVERSAL is
                  the distributor of the Products) in the design of the back of
                  the outside packaging of the Products, provided that such
                  artwork does not obscure the title of the Product, or
                  Interplay's name or logo, and is reasonable in size compared
                  to the size of the packaging. UNIVERSAL will also be entitled
                  to include the URL of UNIVERSAL's online store and web site on
                  the Product packaging.

         3.4      Reports and Forecasts. To the extent, and with the frequency,
                  that UNIVERSAL routinely compiles or receives sales
                  information reports with respect to UNIVERSAL-published
                  products on an account-by-account basis, UNIVERSAL will
                  provide Interplay with such reports, to the same extent and
                  frequency, with respect to each Product. Such reports will
                  provide such information as UNIVERSAL's current inventory of
                  each Product, a summary of all unit sales of each Product sold
                  during the prior period, and whatever competitive product and
                  market analysis information as may be available to UNIVERSAL
                  and which UNIVERSAL may disclose without breaching any
                  confidentiality obligation to any third party. UNIVERSAL will
                  provide Interplay with weekly sell-through and inventory
                  reports, to the extent that such reports are routinely
                  compiled by UNIVERSAL for UNIVERSAL-published products. Any
                  reports provided to Interplay hereunder shall be deemed to be
                  the property of Interplay and Confidential Information of
                  Interplay (as provided in Section 12 below); provided,
                  however, that Interplay agrees to abide by any confidentiality
                  restrictions imposed on UNIVERSAL by third parties furnishing
                  any information in such reports, when such restrictions have
                  been communicated to Interplay. UNIVERSAL will also provide
                  Interplay on a monthly basis with a three-month rolling
                  forecast of UNIVERSAL's sales of Products, by SKU. In
                  addition, UNIVERSAL shall provide a preliminary sales forecast
                  for each Product within *** days after Interplay approves that
                  marketing plan for such Product. Such forecast shall be based
                  on the anticipated marketing spend and strategy for the
                  Product, UNIVERSAL's assessment of the sales potential of that
                  Product (based on the Alpha Version), and such other factors
                  and information as UNIVERSAL reasonably uses in its
                  forecasting practices. All such forecasts are provided by
                  UNIVERSAL to Interplay solely for its internal planning
                  purposes and will not be taken or relied-upon by Interplay as
                  a representation or warranty as to UNIVERSAL's future orders
                  or sales of the Products. Without limiting UNIVERSAL's other
                  obligations hereunder, Interplay acknowledges that UNIVERSAL
                  is under no obligation whatsoever to order or sell any
                  particular amount of any Products. In addition to the
                  foregoing and subject to the Confidentiality provisions set
                  forth in Section 9 below, with reasonable promptness,
                  UNIVERSAL shall provide such other business or financial data,
                  reports, and projections as Interplay may reasonably request
                  in order to comply with regulatory reporting, tax reporting,
                  and compliance with other contractual obligations of
                  Interplay.

         3.5      Consumer/Trade Shows. For consumer/trade shows at which
                  UNIVERSAL decides to maintain a display booth and for which
                  Interplay gives UNIVERSAL a timely written request to display
                  its Products at UNIVERSAL's display booth, subject to
                  available space as reasonably determined by UNIVERSAL and
                  subject to the parties agreeing on the apportionment of the
                  costs, UNIVERSAL will provide a reasonable amount of space in
                  its booth for Interplay to display its Products; provided,
                  that, for any given consumer/trade show, Interplay shall
                  receive rates no less favorable than those accorded any other
                  similar party for whom UNIVERSAL provides distribution
                  services, taking into account the amount of space at issue and
                  the number of Products being displayed. The parties shall
                  discuss in good faith the apportionment of costs for any
                  display space dedicated to Interplay. All travel,
                  accommodation, equipment, and other expenses incurred by
                  Interplay will be at Interplay's sole expense. Special signage
                  (if any) must be approved by UNIVERSAL, and will be at the
                  expense of Interplay. In the event Interplay does not desire
                  to display its Products at the UNIVERSAL display booth, or
                  UNIVERSAL determines that there is not enough available space
                  for Interplay to display its Products, UNIVERSAL will display
                  and promote the Products as UNIVERSAL deems appropriate on a
                  non-dedicated space basis at UNIVERSAL's expense.

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

         3.6      Packaging, Warranties, Etc. UNIVERSAL will distribute the
                  Products with packaging, warranties and disclaimers intact as
                  shipped from Interplay. UNIVERSAL will not alter, erase,
                  deface or overprint any notice on any item provided by
                  Interplay.

         3.7      Compliance with Laws. UNIVERSAL will comply in all material
                  respects with all applicable international, national, state,
                  provincial, regional and local statutes and regulations in
                  distributing the Products and in performing its duties
                  hereunder.

         3.8      Infringement. UNIVERSAL will promptly notify Interplay in
                  writing of any known infringement of Interplay's proprietary
                  rights in the Products which comes to UNIVERSAL's attention.
                  UNIVERSAL agrees to cooperate, at Interplay's expense, with
                  reasonable requests for assistance from Interplay in
                  connection with Interplay's reasonable, good-faith efforts to
                  protect its proprietary rights in the Products.

         3.9      Interplay's Involvement in UNIVERSAL's Sales Activities.
                  UNIVERSAL will make all reasonable, good faith efforts to keep
                  Interplay's sales team apprised of UNIVERSAL's sales force
                  efforts and level of success in selling the Products..

         3.10     Manufacturing of Products.
                  -------------------------

                  (a)      Approval to Manufacture. UNIVERSAL and Interplay will
                           together use reasonable commercial efforts to obtain
                           the approval of any Third Party Licensor(s) whose
                           approval is necessary for UNIVERSAL to be able to
                           manufacture finished-goods Product units hereunder.
                           SKUs for which no such Third Party Licensor approval
                           is required, or for which all necessary Third Party
                           Licensor consents and approvals have been obtained,
                           will be referred to as "UNIVERSAL Manufactured SKUs".
                           Console SKUs for which UNIVERSAL and Interplay are
                           unable to obtain the necessary Third Party Licensor
                           consent(s) or approval(s) for UNIVERSAL to
                           manufacture finished-goods Product units will be
                           referred to as "Interplay Manufactured SKUs". For
                           clarity UNIVERSAL shall be responsible for the
                           manufacturing all PC SKU's.

                  (b)      UNIVERSAL Manufactured SKUs. UNIVERSAL will be
                           responsible for manufacturing all units of UNIVERSAL
                           Manufactured SKUs to be distributed by UNIVERSAL
                           hereunder (and to be distributed by Interplay
                           pursuant to Section 2.6 above), including all
                           component parts thereof, and for assembly of
                           finished-goods Product units of UNIVERSAL
                           Manufactured SKUs, and for securing delivery of such
                           finished-goods Product units to UNIVERSAL's
                           distribution center (or to Interplay's distribution
                           center in the case of units distributed by Interplay
                           pursuant to Section 2.6 above). All such activities
                           undertaken by UNIVERSAL shall be on behalf of
                           Interplay. UNIVERSAL and Interplay shall mutually
                           agree in the number of units of UNIVERSAL
                           Manufactured SKUs to be manufactured in each
                           production run. Subject to reimbursement as provided
                           in Section 6.1 below, (i) UNIVERSAL will pay all
                           costs of manufacturing the units of UNIVERSAL
                           Manufactured SKUs to be distributed pursuant to this
                           Agreement, including costs of CD- and DVD-pressing,
                           platform licensor royalties, printing of packaging
                           and inserts and pack-out ("Manufacturing Costs"); and
                           (ii) UNIVERSAL will also pay all costs of shipping
                           completed units of UNIVERSAL Manufactured SKUs to be
                           distributed pursuant to this Agreement to UNIVERSAL's
                           distribution center, and to Interplay's distribution
                           center ("Shipping Costs").

                  (c)      Interplay Manufactured SKUs. Interplay will be
                           responsible for manufacturing all units of Interplay
                           Manufactured SKUs to be distributed by UNIVERSAL
                           hereunder (and to be distributed by Interplay
                           pursuant to Section 2.6 above), including all
                           component parts thereof, and for assembly of
                           finished-goods Product units of Interplay
                           Manufactured SKUs, and for securing delivery of such
                           finished-goods Product units to UNIVERSAL's
                           distribution center (or to Interplay's distribution
                           center in the case of

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

                           units distributed by Interplay pursuant to Section
                           2.6 above). Subject to reimbursement as provided in
                           Section 6.1 below, (i) UNIVERSAL will advance
                           Interplay the out-of-pocket (paid to third parties
                           not owned or controlled by Interplay) Manufacturing
                           Costs incurred by Interplay in manufacturing units of
                           the Interplay Manufactured SKUs to be distributed by
                           UNIVERSAL pursuant to this Agreement; and (ii)
                           UNIVERSAL will also advance Interplay the
                           out-of-pocket (paid to third parties not owned or
                           controlled by Interplay) Shipping Costs incurred by
                           Interplay in shipping completed units of Interplay
                           Manufactured SKUs to be distributed by UNIVERSAL
                           pursuant to this Agreement to UNIVERSAL's
                           distribution center. UNIVERSAL will advance such
                           amounts to Interplay, or pay such amounts directly to
                           the third party performing such services or who is
                           otherwise owed such payments, promptly upon
                           Interplay's presentation to UNIVERSAL (or UNIVERSAL's
                           presentation to Interplay and Interplay's approval)
                           of a valid and correct invoice or purchase order
                           specifying the amount owed and the services being
                           provided. UNIVERSAL shall have a right of prior
                           approval (which will not be unreasonably withheld of
                           delayed) over the quantity of each manufacturing
                           order for Product units (or components thereof)
                           intended for distribution pursuant to this Agreement.
                           By way of clarification, UNIVERSAL will not be
                           required to advance Interplay the costs or expenses
                           of manufacturing or shipping units of any Interplay
                           Manufactured SKUs that are not intended for
                           distribution by UNIVERSAL pursuant to this Agreement;
                           provided, however, that if UNIVERSAL agrees to
                           advance Interplay any such costs, UNIVERSAL will be
                           entitled to reimbursement of such costs as
                           Manufacturing Costs or Shipping Costs (as applicable)
                           pursuant to Section 6.1 below.

         3.10     Press Relations. UNIVERSAL will be responsible for all
                  media-relations and press-relations activity and publicity
                  with respect to the Products. UNIVERSAL mayl include
                  demonstration copies of the Products, or sample Product units,
                  in periodic mailings to public relations contacts that
                  UNIVERSAL has developed, in a manner that is consistent with
                  UNIVERSAL's standard business practices. UNIVERSAL may work
                  closely with Interplay's marketing and development personnel
                  to make sure that UNIVERSAL's media-relations and
                  press-relations activities are coordinated with, and enhance,
                  Interplay's marketing and development efforts for the
                  Products.

         3.11     Timely Distribution. UNIVERSAL agrees to use its best efforts
                  to commercially release the Products in a timely manner.
                  Subject to UNIVERSAL's receipt of all necessary Interplay and
                  Third Party approvals, in no event shall UNIVERSAL release the
                  Product later than: (i) with respect to PC Products, UNIVERSAL
                  agrees to release the Products for commercial distribution
                  within *** days of UNIVERSAL's possession of a gold master
                  version of the Product; (ii) with respect to UNIVERSAL
                  Manufactured SKU"s which are console platforms, UNIVERSAL
                  shall cause such Product(s) to commence the manufacturing
                  process within *** days of UNIVERSAL's possession of a gold
                  master version of the Products and upon receipt of finished
                  goods UNIVERSAL shall release the Products for commercial
                  release within *** days of receipt of such finished goods; and
                  (iii) with respect to Interplay Manufactured SKU"s which are
                  console platforms, UNIVERSAL shall release the Products for
                  commercial release within *** days of receipt of such finished
                  goods.

4.       OBLIGATIONS OF INTERPLAY

         Interplay represents to UNIVERSAL that it is able to and intends to
publish, and be the consignor of, the Products and to manufacture or cause to be
manufactured the Products, and that, as between Interplay and UNIVERSAL,
Interplay is solely responsible for all obligations attendant upon such roles
(except as set forth in Section 3.10 above). Accordingly, Interplay represents,
covenants and agrees as follows:

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

         4.1      Product Quality. The Products: (a) are marketable and have
                  been prepared and developed with reasonable diligence and
                  skill; (b) are and will continue to be of high quality in all
                  material respects and will be free of defects (minor bugs
                  generally acceptable within industry standards shall not be
                  considered a defect under this Agreement) in material and
                  workmanship in all material respects and (c) will conform in
                  all material respects to the functional and other descriptions
                  contained in the written materials accompanying them and in
                  all advertising and promotional materials produced, released
                  or approved by Interplay.

         4.2      Product Delivery. Except as otherwise expressly stated in this
                  Agreement, Interplay will be responsible for, and will pay all
                  costs associated with, shipment and insurance of Products to
                  UNIVERSAL, and from UNIVERSAL to Interplay.

         4.3      Marketing Support. Interplay will provide UNIVERSAL with
                  reasonable, good faith cooperation and support in UNIVERSAL's
                  efforts to market the Products. In addition, subject to
                  UNIVERSAL's approval, not to be unreasonably withheld or
                  delayed, Interplay may provide supplemental marketing for the
                  Products in the Territory, at Interplay's expense.

         4.4      Product Testing and Approvals At Interplay's cost, Interplay
                  agrees to use reasonable, good faith efforts to test and
                  ensure that each Product runs in the different hardware and
                  software configurations in which the Product is designed to
                  run and with all peripherals with which the Product is
                  designated to work in a manner that is consistent with the
                  Product's documentation, advertising material and normal user
                  expectations. Interplay is responsible for making timely
                  submissions to, and obtaining all necessary approvals from,
                  all platform licensors, content licensors and any other
                  entities whose approval or acceptance are necessary in order
                  that the Products may be published, marketed and distributed
                  hereunder.

         4.5      Financial Reporting. Interplay shall provide UNIVERSAL with
                  copies of all Interplay financial reports that are filed with
                  the Securities and Exchange Commission (the "SEC"), at the
                  time they are filed. *** All information disclosed by
                  Interplay to UNIVERSAL under this Section will be Confidential
                  Information pursuant to Section 9 below, except to the extent
                  such information is subject to the exceptions set forth in
                  Section 9.3.

         4.6      Co-op Advertising. Interplay will fund (through the General
                  Reserve as Deductions in the calculation of Interplay Proceeds
                  as set forth in Section 6.3(c) below) and assist in managing
                  such cooperative advertising with UNIVERSAL's third-party
                  resellers, as is mutually agreed upon by UNIVERSAL and
                  Interplay.

         4.7      Support. At Interplay's cost, Interplay will provide warranty
                  replacement services to consumers of the Products located in
                  the Territory in a timely manner to at least high industry
                  standards. Interplay will also provide consumer support
                  regarding the operation and play of the Products (via phone
                  and email during Interplay's normal business hours) in
                  accordance with high industry standards. The documentation for
                  each Product will specify contact information for Interplay
                  regarding warranty replacement support, and will specify
                  Interplay's customer support phone number and/or Internet site
                  address for all other customer support inquiries.

         4.8      Costs of Development, Payment of Content License Royalties.
                  Interplay shall be responsible for all costs and expenses
                  associated with the development of the Products. This shall
                  include, but not be limited to, any royalties, fees or other
                  compensation that is owed to Third Party Licensors as a result
                  of the development, manufacture, marketing, distribution or
                  sale of the Products, other than amounts owed to Sony,
                  Nintendo or Microsoft due to the manufacturing and
                  distribution of SKUs designed for play on game machines
                  marketed by those companies (which amounts are subject to the
                  provisions of Section 3.10 above).

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

5.       ORDER PROCEDURE, TITLE AND RISK OF LOSS

         5.1      Interplay Manufactured SKUs. The following terms will be
                  applicable for all units of Interplay Manufactured SKUs to be
                  distributed by UNIVERSAL pursuant to this Agreement.
                  Conversely, the following terms will not apply to units of
                  UNIVERSAL Manufactured SKUs distributed by UNIVERSAL
                  hereunder.

                  (a)      Form of Order. All orders will be placed by UNIVERSAL
                           using its then-standard order form(s), provided,
                           however, the terms of such order form shall not
                           contain any terms and conditions which are in
                           addition to, different from and/or inconsistent with
                           this Agreement. No order placed by UNIVERSAL shall be
                           effective unless and until accepted by Interplay in
                           writing. No reference to such form(s) being a
                           "purchase order" or any other term or reference in
                           such form to "purchase" of Products will cause the
                           order and sale of any Products by UNIVERSAL to be
                           construed to be on any basis other than a "sale or
                           return" basis with all sales made on Interplay's
                           behalf by UNIVERSAL. Subject to the foregoing, any
                           terms included on such order form will govern such
                           order, provided that if any such terms conflict with
                           the terms of this Agreement, this Agreement will
                           control. Any terms included on the order form
                           regarding cancellation of an order will be deemed to
                           be in addition to, and not in lieu of, the terms in
                           this Agreement. In no event will the terms of any
                           Interplay acknowledgment, sales order or other
                           written or oral response to an order from UNIVERSAL
                           govern the order, and Interplay agrees that all such
                           terms will be null and void, unless acknowledged in
                           writing by UNIVERSAL.

                  (b)      Partial Deliveries. UNIVERSAL is not obligated to
                           accept partial delivery of any order of any shipments
                           of any Product. In the event UNIVERSAL accepts a
                           partial delivery of a shipment of Product, the
                           portion of the shipment not delivered will be deemed
                           a separate order.

                  (c)      Incoming Inspection. UNIVERSAL has the right to
                           inspect incoming inventory of Product units. Such
                           inspection must be performed within ten (10) days of
                           UNIVERSAL's receipt of such Product units and
                           UNIVERSAL is obligated to promptly inform Interplay
                           of any defects UNIVERSAL discovers. UNIVERSAL may
                           return an entire shipment of Product units to
                           Interplay for replacement in cases where UNIVERSAL's
                           inspection indicates defect rates above two percent
                           (2%). If an inspected Product unit is found to be
                           correct, UNIVERSAL will repackage it, at UNIVERSAL's
                           expense, and Interplay will provide to UNIVERSAL
                           whatever stickers or other parts are required for
                           such repackaging, at UNIVERSAL's expense. Interplay
                           acknowledges that such inspection does not relieve
                           Interplay of any responsibilities of its warranty to
                           UNIVERSAL of Product quality.

         5.2      UNIVERSAL Manufactured SKUs. Regardless of the fact of
                  UNIVERSAL's responsibility for manufacturing and shipping
                  units of UNIVERSAL Manufactured SKUs, and regardless of any
                  statement or provision in any forms or correspondence relayed
                  between the parties relating to UNIVERSAL's manufacturing and
                  shipping of units of the UNIVERSAL Manufactured SKUs, the
                  units of such UNIVERSAL Manufactured SKUs will be deemed to be
                  provided by Interplay, and received by UNIVERSAL, hereunder on
                  a "sale or return" basis with all manufacturing, shipping and
                  sales of such units made on Interplay's behalf by UNIVERSAL.

         5.3      Title and Risk of Loss. As between UNIVERSAL and Interplay,
                  title to all Product units (whether Interplay Manufactured
                  SKUs or UNIVERSAL Manufactured SKUs) shall at all times remain
                  with Interplay.

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

         5.4      Interplay Direct Sales of UNIVERSAL Manufactured SKU's .
                  Solely with respect to any UNIVERSAL Manufactured SKU's being
                  ordered by Interplay for its Direct Sales activities, as set
                  out in Section 2.6, such units shall be provided to Interplay
                  on a form and in a manner to be agreed upon, but consistent
                  with the normal business practices of UNIVERSAL and Interplay
                  the cost of such UNIVERSAL Manufactured SKU's shall be
                  deducted from the Interplay Proceeds as set forth in Section
                  6.1(iii)..

6.       PRICE; PAYMENT

         6.1      Price. The proceeds payable by UNIVERSAL to Interplay for
                  units of any Product distributed by UNIVERSAL (the "Interplay
                  Proceeds") shall be the price at which UNIVERSAL sells such
                  Product units to its customers (the "Price"), less the
                  following amounts only:

                  ***

                  The balance shall be payable to Interplay as Interplay
                  Proceeds.

                  Interplay will have the right to determine the Price for each
                  Product in its sole discretion (which will include UNIVERSAL's
                  standard Included Fees and Charges as specified by UNIVERSAL),
                  and may revise the Price for any Product by customer from time
                  to time, subject to the provisions of Section 6.5 below. At
                  the time of the first commercial shipment of each Product, in
                  order to convey to consumers the high quality of the Product,
                  Interplay will set the Price within the range of then-standard
                  dealer price levels for "front-line" interactive entertainment
                  software products of comparable quality and sales potential.
                  Any change in the Price of any Product will become effective
                  as to UNIVERSAL *** days after the date of Interplay's written
                  notice to UNIVERSAL of the Price change or earlier as may be
                  mutually agreed upon by the parties. UNIVERSAL will
                  incorporate a change in Price of a Product in UNIVERSAL's next
                  published price list.

         6.2      Distribution Fee. The "Distribution Fee" is the fee charged by
                  UNIVERSAL for distribution of the Products and is calculated
                  by multiplying the Price, less the General Reserve, by the
                  applicable percentage set forth in Exhibit A under the heading
                  "Distribution Fee Percentage."

         6.3      Advance. UNIVERSAL shall pay Interplay non-refundable (except
                  as otherwise provided herein), recoupable (as set forth in
                  Section 6.4 below), advance, as follows: (i) One Million
                  Dollars ($1,000,000) within two days following the full
                  execution of this Agreement and approval and ratification of
                  this Agreement by Interplay's Board of Directors (ii) Four
                  Million Dollars ($4,000,000) in accordance with Section 13.17
                  and (iii) Five Million Dollars ($5,000,000) within two days
                  of Interplay's delivery to UNIVERSAL of Baldur's Gate: Dark
                  Alliance. All amounts paid to Interplay by UNIVERSAL
                  pursuant to this Section 6.3 shall be referred to as the
                  "Advance".

         6.4      Recoupment of Advance. The Advance shall be recoupable by
                  UNIVERSAL against amounts earned by UNIVERSAL by the
                  Distribution Fee and as follows: (i) unless and until
                  UNIVERSAL recoups the Advance the Distribution Fee shall be
                  increased by five percent (5%) and (ii) unless and until the
                  Advance is recouped by UNIVERSAL, UNIVERSAL shall be entitled
                  to deduct from monthly amounts payable to Interplay an amount
                  equal to *** percent (***%) of the Interplay Proceeds.
                  Notwithstanding the foregoing, Interplay shall have right at
                  any time during the term to pre-pay or otherwise reimburse
                  UNIVERSAL the Advance without penalty of any kind whatsoever.
                  For clarity, upon recoupment of the Advance (either by
                  pre-payment of Interplay or recoupment by UNIVERSAL) the
                  Distribution Fee shall be as set forth on Exhibit A and
                  UNIVERSAL shall no longer be entitled to deduct from monthly
                  amounts payable to Interplay an amount equal to *** percent
                  (***%) of the Interplay Proceeds. When the aggregate amount of
                  this Section 6.4(i) and (ii) equal the Advance the Advance
                  shall be fully recouped. ***

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

         6.5      Deductions. "Deductions" means the following amounts
                  attributable to each Product:

                  (a)      Price Protection and Post-Sale Markdowns. *** percent
                           (***%) of any price protection or post-sale markdown
                           deductions granted to UNIVERSAL's customers with
                           respect to units of the Products. Interplay will
                           determine the extent of any price protection or
                           post-sale markdown deductions extended to any
                           Products. UNIVERSAL will be entitled to a Deduction
                           equal to *** percent (***%) of any price protection
                           or post-sale markdown deductions granted to
                           UNIVERSAL's customers with respect to units of the
                           Products that were not originally distributed by
                           UNIVERSAL.

                  (b)      Co-op Advertising. Amounts approved by Interplay in
                           writing for all co-op advertising. If any co-op
                           advertising program includes other UNIVERSAL products
                           in addition to Products, and the expenses of such
                           co-op advertising program are not billed separately
                           by the customer for each Product and other UNIVERSAL
                           products in the program, then the amount of the
                           Deduction will be based on a valid and signed
                           insertion order in which the combined deduction for
                           the multiple titles can be separated. Interplay will
                           fund an amount of support with respect to each Named
                           Product of *** percent (***%) of Net Sales for direct
                           marketing costs, and no less than *** percent (***%)
                           of Net Sales with respect to each Named Product for
                           MDF/COOP expenses. "Net Sales" shall be defined as
                           the Price less the General Reserve.

                  (c)      Return of Goods. UNIVERSAL will return to Interplay
                           all returned Products by such means as Interplay
                           directs at Interplay's sole option and expense. If
                           Interplay does not direct UNIVERSAL as to a method of
                           return within *** days after written notice from
                           UNIVERSAL, UNIVERSAL may return such Products to
                           Interplay by any means deemed reasonable by UNIVERSAL
                           and may, at UNIVERSAL's option, debit the costs of
                           returning such Products against amounts otherwise due
                           Interplay (as a Deduction) or require Interplay to
                           reimburse UNIVERSAL for such costs. UNIVERSAL shall
                           provide to Interplay documentary evidence of
                           UNIVERSAL's costs incurred pursuant to this Section.
                           Interplay will pay all transportation and shipping
                           charges associated with such returns.

                  (d)      Other Agreed Deductions. Other deductions mutually
                           agreed upon in writing by UNIVERSAL and Interplay,
                           amounts owed by Interplay to UNIVERSAL pursuant to
                           Sections 7.2 and 7.3 below, and other penalties or
                           additional charges assessed against UNIVERSAL by any
                           UNIVERSAL customer(s) as a result of an Unacceptable
                           Delivery by Interplay. "Unacceptable Delivery" means
                           (i) Interplay's failure to deliver a Product order
                           (accepted by Interplay hereunder) to UNIVERSAL
                           on-time such that UNIVERSAL is either (A) unable to
                           ship the goods to its customer(s) on or before a date
                           required by such customer(s) or (B) is required to
                           use a more expensive shipping means than employed by
                           UNIVERSAL in its regular course of business (in which
                           event the Deduction shall equal the increase in
                           shipping costs); or (ii) Interplay's delivery of
                           defective, improperly packaged or improperly labeled
                           Product units which are then rejected by UNIVERSAL's
                           customer(s). The deductions described in this
                           subsection (d) may be measured on a
                           Product-by-Product basis, or prorated from
                           UNIVERSAL's total expenses, depending on UNIVERSAL's
                           standard accounting practices.

         6.6      Payment. UNIVERSAL will provide a report to Interplay on a
                  monthly basis within *** days after the close of each of
                  UNIVERSAL's fiscal months showing (a) the aggregate Price (by
                  SKU) for all Product units shipped by UNIVERSAL to its
                  customers during such fiscal month, (b) the totals of all ***
                  incurred or advanced by

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

                  UNIVERSAL during such fiscal month, (c) the amount of each of
                  the deductions taken by UNIVERSAL pursuant to clauses 6.1(i)
                  through 6.1(v) above in such fiscal month; (d) the amount of
                  each category of Deductions taken by UNIVERSAL in such fiscal
                  month; (e) the amount of Monthly Gross Payables, the Target
                  Reserve Balance and the amount withheld in or paid out from
                  the General Reserve for such fiscal month (as such terms are
                  defined in Section 6.8 below); and (f) the amount of Interplay
                  Proceeds owed to Interplay for such fiscal month. At the time
                  UNIVERSAL delivers such report to Interplay each month,
                  UNIVERSAL will pay Interplay the total of the Interplay
                  Proceeds owed to Interplay for such fiscal month. All
                  Interplay Proceeds not paid when due shall bear interest
                  accruing at *** % per year from the date payment is first due.

         6.8      General Reserve.
                  ---------------

                  (a)      Accrual of the General Reserve. UNIVERSAL shall be
                           entitled to accumulate and maintain a cash reserve in
                           the amounts set forth below in this Section 6.8(a)
                           (subject to the provisions of paragraphs (b) and (c)
                           below) which reserve shall be deducted from the
                           amounts UNIVERSAL owes to Interplay and held by
                           UNIVERSAL in dedicated account (the "General
                           Reserve"). The General Reserve will be applied by
                           UNIVERSAL to recover undisputed amounts owed to
                           UNIVERSAL pursuant to Section 6.5 inclusive during
                           the Term (and upon the expiration or termination of
                           this Agreement). From September 1, 2001, through
                           September 1, 2002 UNIVERSAL's will be entitled to set
                           aside in the General Reserve *** percent (***%) of
                           Monthly Gross Sales (as defined below) accrued in
                           such fiscal months and *** % of the of Monthly Gross
                           Sales accrued in such fiscal months thereafter until
                           the expiration or termination of this Agreement.
                           "Monthly Gross Sales" means the aggregate Price of
                           all Products ties units shipped by UNIVERSAL during
                           such fiscal month.

                  (b)      *** Review and Partial Disbursement of General
                           Reserve. *** months after each *** month period
                           beginning with the *** month period endidng March 31,
                           2002 the accumulated General Reserve will be compared
                           to the undisputed Deductions owed to UNIVERSAL
                           pursuant to Section 6.5 and the net amount will be
                           settled out the Distribution Fee applicable during
                           the period. If the General Reserve exceeds net of
                           actual and undisputed amounts owed to UNIVERSAL,
                           UNIVERSAL will pay such excess to Interplay within
                           *** days. In the event the amounts actually owed to
                           UNIVERSAL pursuant to Section 6.5 exceed the General
                           Reserve for the given period, UNIVERSAL shall be
                           entitled to deduct the difference from Interplay
                           Proceeds then due and payable.

                  (c)      Disputes Regarding Withdrawals from the General
                           Reserve. In the event Interplay in good faith
                           disputes UNIVERSAL's right hereunder to make a
                           particular withdrawal from the General Reserve (or
                           the amount of such withdrawal): (ia) UNIVERSAL shall
                           immediately re-deposit the disputed amount into the
                           General Reserve, and (iib) the parties shall resolve
                           such dispute as expeditiously as possible.

                  (d)      Repayment if General Reserve Is Not Fully Used After
                           Expiration or Termination. The process described in
                           paragraph (b) above will continue for a period of ***
                           months following the expiration or earlier
                           termination of this Agreement. To the extent that the
                           General Reserve is not fully used to offset amounts
                           otherwise due from Interplay to UNIVERSAL following
                           the expiration or earlier termination of this
                           Agreement, UNIVERSAL will pay to Interplay the amount
                           left in the General Reserve *** months after the date
                           of expiration or termination of this Agreement and
                           any applicable sell-off periods as provided in
                           Section 11.7(b) or extensions provided in Sections
                           1.6 and 11.10. To the extent the General Reserve is
                           less than amounts owed to UNIVERSAL hereunder
                           following expiration or earlier termination of this
                           Agreement Interplay shall pay such defecit to
                           UNIVERSAL within *** days following the date of
                           expiration or termination

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

                           of this Agreement and any applicable sell-off periods
                           as provided in Section 11.7(b) or extensions provided
                           in Sections 1.6 and 11.10.

         6.9      ***

         6.10     Collections and Bad Debt. Interplay will be responsible for
                  all risk of collection of amounts owed by the following
                  UNIVERSAL customers as a result of UNIVERSAL's activities
                  under this Agreement: ***.

                  With respect to all other UNIVERSAL customers, UNIVERSAL will
                  be responsible for all risk of collection of amounts owed by
                  UNIVERSAL's customers as a result of UNIVERSAL's activities
                  under this Agreement, and UNIVERSAL will not deduct any bad
                  debt expenses or associated write-offs incurred as a result of
                  its activities under this Agreement. ***

7.       RETURNS AND PRODUCT RECALLS/AUDIT

7.1               Right to Return. Interplay understands and acknowledges that
UNIVERSAL receives Product units from Interplay hereunder on a "sale or return"
basis and Interplay is the ultimate responsible party for all Products, subject
to the provisions of this Agreement . UNIVERSAL has the right to return to
Interplay at any time any Product units held by UNIVERSAL, subject to the
provisions of this Agreement.

         7.2      Product Recall. Without prejudice to the foregoing, in the
                  event of an Interplay-authorized recall based solely on errors
                  in the program code for which Interplay has developed
                  corrections, Interplay will pay all costs associated with the
                  recall, including but not limited to Handling Charges,
                  customer notification costs, Product replacement costs, and
                  all freight costs. The term "Handling Charges" will mean ***.

         7.3      Audit. Interplay will have the right, *** per calendar year,
                  to have reputable, experienced auditors examine UNIVERSAL's
                  relevant books, records and accounts for the purpose of
                  verifying the accuracy of payments made by UNIVERSAL as
                  required by this Agreement. Each audit will be conducted at
                  UNIVERSAL's place of business (or another place agreed to by
                  Interplay and UNIVERSAL) during UNIVERSAL's normal business
                  hours with at least *** business days prior written notice to
                  UNIVERSAL. Each audit may cover any period of the Term that
                  has not previously been audited by Interplay. If an audit
                  discloses a shortfall in UNIVERSAL's payments to Interplay:
                  (a) UNIVERSAL will within *** days pay the amount of such
                  shortfall to Interplay; Interplay will pay the fees and
                  expenses of the auditors for the examination; except that, if
                  any examination discloses a shortfall in the payments due
                  Interplay of more than *** percent (***%) in any one-year
                  period, then UNIVERSAL will pay the fees and expenses of the
                  auditor for that examination. Furthermore, solely in the event
                  of such *** percent (***%) shortfall, Interplay shall be
                  entitled to conduct an additional follow-up audit within the
                  twelve (12) month period following the first audit, without
                  otherwise affecting Interplay's audit rights for the calendar
                  year in which the follow-up audit is conducted

8.       INTELLECTUAL PROPERTY PROTECTION

         8.1      Protection of Intellectual Property. The parties agree to use
                  commercially reasonable efforts to protect the intellectual
                  property associated with the Products. Immediately upon
                  discovery of any infringement of such intellectual property,
                  the discovering party shall notify the other party of such
                  infringement, and the parties shall cooperate in prosecuting
                  any action to stop or otherwise mitigate the infringement.

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

         8.2      Prevention of Greymarket Activity. The parties shall each use
                  commercially reasonable efforts to prevent greymarket
                  activity. "Greymarket" includes (i) the sale, outside of the
                  Territory, of units of the Products licensed hereunder for
                  distribution within the Territory; and (ii) the sale, in the
                  Territory, of units of the Products other than those licensed
                  for distribution in the Territory. Immediately upon discovery
                  of any such Greymarket activity, the discovering party shall
                  notify the other party, and the parties shall cooperate in
                  prosecuting any action to stop or otherwise mitigate the
                  activity.

         8.3      Ownership. As between Interplay and UNIVERSAL, UNIVERSAL
                  agrees that Interplay shall own all copyright and other
                  proprietary rights, title and interest in the Products, and
                  all intellectual property rights embodied therein, including
                  all rights to the titles, names, trademarks, characters,
                  artwork and code, and all other materials (collectively, the
                  "Other Materials") which are created by or for UNIVERSAL for
                  the purpose of packaging, advertising, marketing and promoting
                  the Products, including all cartons, containers, packaging,
                  packing and wrapping material, tags, labels, ancillary
                  manuals, imprints or other devices, advertisements, press
                  releases and promotional literature. UNIVERSAL will not attack
                  the title of Interplay or its Third Party Licensors in and to
                  the Products or Other Materials, nor any copyright or
                  trademarks pertaining thereto, nor will UNIVERSAL attack the
                  validity of any Third Party Licenses. UNIVERSAL agrees that it
                  will neither apply for nor seek to obtain trademark
                  registration for the Products. If, for any reason, the Other
                  Materials do not qualify as a work made for hire under
                  applicable law, or UNIVERSAL may be entitled to claim any
                  ownership interest in the Products or Other Materials under
                  any applicable law, then UNIVERSAL hereby assigns and agrees
                  to assign exclusively to Interplay (or any designee of
                  Interplay), any and all of UNIVERSAL's right, title and
                  interest therein. Any assignment of copyright hereunder
                  includes all rights of paternity, integrity, disclosure and
                  withdrawal and any other rights that may be known as or
                  referred to as "moral rights" (collectively "Moral Rights").
                  To the extent such Moral Rights cannot be assigned under
                  applicable law and to the extent the following is allowed by
                  the laws in the various countries where Moral Rights exist,
                  UNIVERSAL hereby waives such Moral Rights and consents to any
                  action of Interplay (or its designee) that would violate such
                  Moral Rights in the absence of such consent. Notwithstanding
                  the foregoing, UNIVERSAL shall retain ownership of any
                  intellectual property which is proprietary to UNIVERSAL and
                  which has been added to the Products packaging, provided,
                  however, UNIVERSAL shall grant Interplay a non-exclusive,
                  royalty-free, license to use such UNIVERSAL intellectual
                  property solely in connection with the Products in the
                  Territory and in accordance with the terms of this Agreement
                  and Interplay's rights thereunder.

9.       CONFIDENTIALITY

         9.1      Confidential Information Defined. For the purposes of this
                  Agreement, "Confidential Information" means all information
                  that can reasonably be construed to be confidential or
                  proprietary information of the disclosing party, including any
                  design elements, character profiles, unpublished copyrighted
                  material, release dates, marketing, sales and promotional
                  strategies, information about new products, properties and
                  characters, computer code (if any), data, manuals, formulae,
                  specifications, processes, methods, the terms and conditions
                  of this Agreement, and/or any other information or documents
                  of or relating to the business of the disclosing party.

         9.2      Duty to Maintain Confidentiality. Except as expressly approved
                  by the disclosing party, the party receiving Confidential
                  Information from the disclosing party agrees: (i) to use the
                  Confidential Information solely for the purpose of performing
                  its obligations under this Agreement; (ii) to hold the
                  disclosing party's Confidential Information in strict
                  confidence as a fiduciary, and to take all reasonable
                  precautions to protect such Confidential Information; (iii)
                  not to divulge any such Confidential Information or any
                  information derived therefrom to any third person, other than
                  its directors, officers, employees, affiliates, attorneys,
                  auditors, financial advisors, consultants, or prospective
                  investors or lenders, and, in the case of

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

                  UNIVERSAL, third-party subcontractors pursuant to Section 2.2
                  above (collectively, the "Representatives"); provided, that in
                  each case such Representative shall be given access to the
                  Confidential Information only on a "need-to-know" basis and
                  shall expressly agree in writing to retain the Confidential
                  Information in strictest of confidence; (iv) not to make any
                  use whatsoever at any time of such disclosing party's
                  Confidential Information for the benefit of any person other
                  than the disclosing party or as expressly contemplated by the
                  disclosing party, and (v) not to copy, reproduce or directly
                  or indirectly reverse engineer all or any part of such
                  disclosing party's Confidential Information.

         9.3      Exceptions. "Confidential Information" shall not include
                  information which: (i) at the time of disclosure, is in the
                  public domain or which, after disclosure, becomes part of the
                  public domain by publication or otherwise through no action or
                  fault of the receiving party; (ii) the receiving party can
                  show was in its possession at the time of disclosure and was
                  not acquired, directly or indirectly, from the other party;
                  (iii) was received from a third party having the legal right
                  to transmit the same; (iv) is independently developed,
                  conceived, or created without use of or reference to any
                  Confidential Information of the other party; (v) is disclosed
                  pursuant to valid court order, regulatory (including the SEC),
                  contractual requirement or other legal process. Further,
                  nothing in this Section 9 shall prevent either party from
                  making any disclosure required by a public stock exchange, the
                  Securities and Exchange Commission or similar governmental or
                  regulatory body.

         9.4      Return or Destruction of Confidential Information. The
                  receiving party agrees to cease using the Confidential
                  Information upon the earlier of (i) expiration or earlier
                  termination of the Term of this Agreement, or (ii) receipt of
                  a written request to do so by the disclosing party, and, with
                  respect to such Confidential Information provided in writing
                  or in some other tangible form, to return it to the disclosing
                  party within three (3) business days after receipt of a
                  written request to do so. At the request of the disclosing
                  party, such receiving party will also destroy all written
                  material, memoranda, notes and other writings or recordings
                  whatsoever prepared by or for it based upon, containing or
                  otherwise reflecting any of the disclosing party's
                  Confidential Information. Nothing herein shall prevent either
                  party from using such Confidential Information with respect to
                  any claims brought by the parties following the expiration or
                  termination of the Term.

10.      REPRESENTATIONS AND WARRANTIES; INDEMNITY

         10.1     Interplay Representations and Warranties. Interplay makes the
                  following representations and warranties:

                  (a)      Intellectual Property Rights. Interplay has the right
                           to grant to UNIVERSAL the licenses and rights granted
                           under this Agreement, and UNIVERSAL's use of such
                           licenses in accordance with the terms of this
                           Agreement will not infringe upon any third party's
                           copyright, patent, trademark or other intellectual
                           property rights.

                  (b)      Authority. Subject to the Loan Agreement and Section
                           13.16 below, Interplay (and the officers executing on
                           its behalf) have the required authority and capacity
                           to enter into this Agreement and all documents
                           required to be entered into pursuant to this
                           Agreement. All corporate and other actions required
                           to be taken by Interplay to authorize the execution,
                           delivery and performance of this Agreement and all
                           transactions contemplated in this Agreement have been
                           duly and effectively taken. Upon the full execution
                           and delivery of this Agreement, this Agreement will
                           become a valid, binding and enforceable obligation
                           upon Interplay.

                  (c)      No Conflicts. Except for the Loan Agreement,
                           Interplay's execution, delivery and performance of
                           this Agreement will not result in the breach of any
                           term or provision of, or constitute a default under,
                           any agreement by which Interplay is bound, nor will
                           such

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

                           actions, to the best of Interplay's knowledge result
                           in the violation of any obligation, law, ordinance,
                           regulation, order or decree applicable to Interplay.

                  (d)      No Conflicting Agreements. So long as this Agreement
                           remains in effect, Interplay shall not commit any act
                           or enter into any agreement or understanding with any
                           third party which is inconsistent or in conflict with
                           this Agreement.

                  (e)      Limitation. THE WARRANTIES STATED IN SECTION 4.1 AND
                           THIS SECTION 10.1 ARE INTERPLAY'S SOLE AND EXCLUSIVE
                           WARRANTIES PERTAINING TO THE PRODUCTS, AND INTERPLAY
                           HEREBY DISCLAIMS ANY OTHER WARRANTY, EXPRESS OR
                           IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY
                           OF MERCHANTABILITY, OR FITNESS FOR A PARTICULAR
                           PURPOSE.

                  (f)      Compliance with Laws. Interplay will at all times
                           comply with all government laws and regulations,
                           including but not limited to, product safety and
                           other similar laws, relating or pertaining to the
                           manufacture, distribution, sale and advertising of
                           the Products.

                  (g)      No Infringement. Assuming the truth of Section
                           10.1(a), Interplay's creation of the Other Materials
                           hereunder will not infringe upon any third party's
                           copyright, patent, trademark or other intellectual
                           property rights (and, Interplay hereby acknowledges
                           that no approval by UNIVERSAL of the Products shall
                           constitute an approval of any such infringement).

                  (h)      Baldur's Gate: Dark Alliance. With respect to
                           Interplay's grant of rights under Section 2.1(a) of
                           this Agreement Interplay's execution, delivery and
                           performance under this Agreement will not result in
                           the breach of any term or provision of, or constitute
                           a default under the Loan Agreement

         10.2     UNIVERSAL Representations and Warranties. UNIVERSAL makes the
                  following representations and warranties:
                  ----------------------------------------

                  (a)      Authority. UNIVERSAL (and the officers executing on
                           its behalf) have the required authority and capacity
                           to enter into this Agreement and all documents
                           required to be entered into pursuant to this
                           Agreement. All corporate and other actions required
                           to be taken by UNIVERSAL to authorize the execution,
                           delivery and performance of this Agreement and all
                           transactions contemplated in this Agreement have been
                           duly and effectively taken. Upon the full execution
                           and delivery of this Agreement, this Agreement will
                           become a valid, binding and enforceable obligation
                           upon UNIVERSAL.

                  (b)      No Conflicts. UNIVERSAL's execution, delivery and
                           performance of this Agreement will not result in the
                           breach of any term or provision of, or constitute a
                           default under, any agreement by which UNIVERSAL is
                           bound, nor will such actions, to the best of
                           UNIVERSAL's knowledge result in the violation of any
                           obligation, law, ordinance, regulation, order or
                           decree applicable to UNIVERSAL.

                  (c)      No Conflicting Agreements. So long as this Agreement
                           remains in effect, UNIVERSAL shall not commit any act
                           or enter into any agreement or understanding with any
                           third party which is inconsistent or in conflict with
                           this Agreement.

                  (d)      No Liens. UNIVERSAL will not cause or allow any liens
                           or encumbrances to be placed against, nor grant any
                           security interest in, the Products without
                           Interplay's prior consent in its sole discretion.

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

                  (e)      Compliance with Laws. UNIVERSAL will at all times
                           comply with all government laws and regulations,
                           including but not limited to, product safety and
                           other similar laws, relating or pertaining to the
                           manufacture, distribution, sale and advertising of
                           the Products.

                  (f)      No Infringement. Assuming the truth of Section
                           10.1(a), UNIVERSAL's creation of the Other Materials
                           hereunder will not infringe upon any third party's
                           copyright, patent, trademark or other intellectual
                           property rights (and, UNIVERSAL hereby acknowledges
                           that no approval by Interplay of the Products or
                           Other Materials shall constitute an approval of any
                           such infringement).

         10.3     Indemnification. Interplay and UNIVERSAL each agree to
                  indemnify and hold harmless the other from all claims, suits,
                  judgments, damages, costs and expenses (including costs of
                  suit and reasonable attorneys' fees) (collectively, "Claims")
                  as a result of indemnitor's breach or an allegation of
                  indemnitor's breach of any of its representations, warranties
                  and covenants made in this Agreement; provided, however, that
                  (i) the indemnitor shall have been provided with prompt
                  written notice of the assertion of any such claim and that the
                  indemnitor shall have the authority and power to control the
                  defense and/or settlement thereof, subject to the right of
                  indemnitee to participate in any such proceeding at its own
                  expense with counsel of its own choosing, and (ii) the
                  indemnitee shall not agree to the settlement of any such
                  claim, action or proceeding without the prior written consent
                  of the indemnitor, which consent shall not be unreasonably
                  withheld. The foregoing indemnity shall not extend to any
                  Claims to the extent they arise out of any matter against
                  which the party to be indemnified has received insurance
                  proceeds sufficient to cover such Claims.

         10.4     Limitation of Liability. THE LIABILITY OF EITHER PARTY, IF
                  ANY, FOR DAMAGES FOR ANY CLAIM OF ANY KIND WHATSOEVER AND
                  REGARDLESS OF THE LEGAL THEORY, WITH REGARD TO THE LICENSE
                  GRANTED HEREUNDER, SHALL NOT INCLUDE COMPENSATION,
                  REIMBURSEMENT OR DAMAGES ON ACCOUNT OF THE LOSS OF PRESENT OR
                  PROSPECTIVE PROFITS, EXPENDITURES, INVESTMENTS OR COMMITMENTS,
                  WHETHER MADE IN ESTABLISHMENT, DEVELOPMENT OR MAINTENANCE OF
                  REPUTATION OR GOODWILL OR FOR ANY OTHER REASON WHATSOEVER. IN
                  NO EVENT SHALL EITHER PARTY BE LIABLE FOR SPECIAL, INCIDENTAL,
                  OR CONSEQUENTIAL DAMAGES.

11.      DEFAULT AND REMEDIES

         11.1     Default. A party hereto shall be in default ("Default") in the
                  following circumstances:

                  (a)      if that party breaches any covenant, representation
                           or warranty it makes in this Agreement (other than a
                           payment obligation hereunder) or if any
                           representation or warranty is or becomes untrue, and
                           such breach or untruth is material, and such breach
                           or untruth is not cured within thirty (30) days after
                           receipt of written notice from the non-defaulting
                           party;

                  (b)      if that party breaches a payment obligation under
                           this Agreement, and such breach is material, and such
                           breach is not cured within the following applicable
                           time period after receipt of written notice from the
                           non-defaulting party: (i) *** for the first or second
                           such breach by the breaching party, (ii) *** for the
                           third such breach by the breaching party and (iii)
                           *** for all successive breaches by the breaching
                           party;

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

                  (c)      upon the institution by or against that party of
                           insolvency, receivership or bankruptcy proceedings
                           and such proceeding is not dismissed within thirty
                           (30) days of its being filed;

                  (d)      upon that party's making of an assignment for the
                           benefit of creditors; or

                  (e)      upon that party's dissolution or liquidation.

         11.2     No Cure Right. Notwithstanding anything to the contrary
                  herein, UNIVERSAL shall immediately be deemed in Default
                  hereunder (and UNIVERSAL shall have no cure period) in the
                  event UNIVERSAL delivers or sells the Products outside the
                  Territory or knowingly sells Products to a third party who
                  UNIVERSAL knows intends to, or who UNIVERSAL reasonably should
                  suspect intends to, sell or deliver such Products outside the
                  Territory.

         11.3     ***

         11.4     ***

         11.5     ***

         11.6     Remedies Cumulative. Each right and remedy of the parties
                  provided for in this Agreement shall be cumulative and shall
                  be in addition to every other right or remedy provided for in
                  this Agreement or available at law or in equity, except as
                  otherwise expressly limited by this Agreement, and the
                  exercise or the beginning of the exercise by a party of any
                  one or more of the rights or remedies provided for in this
                  Agreement or available at law or in equity, except as
                  otherwise limited by this Agreement, shall not preclude the
                  simultaneous or later exercise by the party of any or all
                  other rights or remedies provided for in this Agreement or
                  available at law or in equity, except as otherwise limited by
                  this Agreement.

         11.7     Effect of Expiration or Termination.
                  -----------------------------------

                  (a)      Upon the expiration or termination of this Agreement
                           other than a termination by Interplay for a Default
                           by UNIVERSAL, UNIVERSAL may continue to sell-off, on
                           a non-exclusive basis, Product inventory remaining in
                           UNIVERSAL's possession as of the date of termination
                           or expiration, for a period of *** days after such
                           expiration or termination.

                  (b)      To the extent UNIVERSAL does not return inventory to
                           Interplay, UNIVERSAL's customers will retain the
                           right to sell all of their inventory of the Products.

                  (c)      Upon any termination of this entire Agreement or of
                           any specific Product by Interplay due to a Default by
                           UNIVERSAL, UNIVERSAL shall (i) immediately cease and
                           desist from all further distribution of such
                           Product(s) (and UNIVERSAL hereby expressly agrees
                           that Interplay shall have the right to enjoin
                           UNIVERSAL from conducting any further distribution
                           and marketing activities in connection with such
                           Product(s)), and (ii) within *** days thereafter, at
                           *** cost, return to Interplay all inventory of such
                           Product(s) then in UNIVERSAL's possession. In the
                           event UNIVERSAL tenders any Product units to
                           Interplay and Interplay does not accept such Product
                           units, UNIVERSAL may require that the carrier return
                           such inventory to UNIVERSAL's warehouse(s) and
                           Interplay will then owe UNIVERSAL, in addition to the
                           amount due for such Product units ***. UNIVERSAL will
                           not be obligated to retender any and all

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

                           Product units until Interplay pays in cash all
                           amounts then due UNIVERSAL under this Agreement, at
                           which time UNIVERSAL shall promptly retender such
                           Products.

                  (d)      UNIVERSAL may retain and apply the General Reserve
                           against amounts owed to UNIVERSAL under this
                           Agreement, and UNIVERSAL will repay any unused
                           portions of the General Reserve, all as provided in
                           Section 6.8 above.

         11.8     Partial Termination for Loss of Distribution Rights. In the
                  event that Interplay loses the right to grant to UNIVERSAL the
                  rights to distribute and sell any Product, then upon such loss
                  of rights, the Product will be deleted from coverage under
                  this Agreement. Any such partial termination will be treated
                  as an Interplay-authorized Product recall pursuant to the
                  terms of Section 7.3 above.

         11.9     Surviving Provisions. The provisions of Sections, 2.4 , 6, 7,
                  8, 9, 10, 11.7, 11.8, 12 and 13 shall survive the expiration
                  or termination of this Agreement.

         11.10    Ancillary Remedies. Notwithstanding the foregoing, in the
                  event that Interplay cancels more than *** of the *** Named
                  Titles or a month delay from the anticipated release date (as
                  noted in Exhibit B) with respect to *** or more of the Named
                  Titles occurs, then UNIVERSAL may elect one (and only one) of
                  the following remedies :

                  ***

For the purposes of this section, the various marketing plans and forecasting
reports as provided herein shall be used to determine the value of such
cancelled or delayed titles. UNIVERSAL acknowledges and agrees that delays
and/or cancellations as provided herein shall not constitute a Default, as
provided herein.

12.      ASSIGNMENT

         Neither this Agreement, nor the parties' rights and obligations
hereunder, may be transferred, assigned or sublicensed to a third party, without
the prior written consent of the other party; provided, however, that either
party may transfer or assign its rights and/or obligations hereunder to any
person acquiring such party by merger or acquiring all or substantially all of
such party's assets without requiring the consent of the other party and
UNIVERSAL may assign this Agreement to a UNIVERSAL Subsidiary without the
consent of Interplay.

13.      MISCELLANEOUS

         13.1     Amendments and Modifications. No amendment or modification of
                  this Agreement shall be valid unless made in a writing
                  executed by all parties.

         13.2     Binding Effect. Subject to Section 12 above, all provisions of
                  this Agreement shall inure to the benefit of, and be binding
                  upon, the parties and their successors-in-interest and
                  permitted assigns.

         13.3     Further Documents. Each party shall execute and deliver all
                  such further instruments, documents and papers, and shall
                  perform any and all acts, necessary to give full force and
                  effect to all the terms and provisions of this Agreement.

         13.4     Requests, Consents and Approvals. Unless otherwise specified
                  herein, any consents and/or approvals requested of either
                  party pursuant to this Agreement shall not be unreasonably
                  withheld, conditioned or delayed. Without limitation,
                  UNIVERSAL acknowledges and agrees that it shall be deemed
                  "reasonable" for Interplay to withhold its consent and/or
                  approval where necessary for Interplay to comply with the
                  terms of any Third Party Licenses.

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

         13.5     Interpretation. No uncertainty or ambiguity herein shall be
                  construed or resolved against any party, whether under any
                  rule of construction or otherwise; on the contrary, this
                  Agreement has been negotiated by all parties and shall be
                  construed and interpreted according to the ordinary meaning of
                  the words used so as to fairly accomplish the purposes and
                  intentions of the parties. Descriptive headings in this
                  Agreement are for convenience only and shall not control or
                  affect the meaning or construction of any provision of this
                  Agreement. The word "include" or "including" used in this
                  Agreement shall describe examples of the antecedent clause,
                  and shall not be construed to limit the scope of such clause.
                  Unless specifically stated otherwise, any reference to a
                  particular period of days herein shall be interpreted as
                  reference to calendar days; provided, however, that if such
                  period would otherwise end on a Saturday, Sunday or generally
                  recognized U.S. public holiday, then the period shall be
                  deemed to end on the next business day.

         13.6     Applicable Law. California law, without regard to conflicts or
                  choice of laws principles, shall govern the interpretation of
                  this Agreement.

         13.7     Legal Action. Should any litigation or arbitration occur
                  between the parties respecting or arising out of this
                  Agreement, the prevailing party shall be entitled to recover
                  its reasonable attorneys' fees and other costs in connection
                  with such litigation, including reasonable attorneys' fees
                  incurred after a judgment has been rendered by a court of
                  competent jurisdiction. Any judgment shall include an
                  attorneys' fees clause that shall entitle the judgment
                  creditor to recover attorneys' fees incurred to enforce a
                  judgment on this Agreement, which attorneys' fees shall be an
                  element of post-judgment costs; the parties agree that this
                  attorneys' fee provision shall not merge into any judgment.

         13.8     Venue. The parties agree that all actions or proceedings
                  arising directly or indirectly from this Agreement shall be
                  arbitrated or litigated before arbitrators or in courts having
                  a situs within Orange County, California and hereby consent to
                  the jurisdiction of any local, state or federal court in which
                  such an action is commenced that is located in Orange County,
                  California. The parties agree not to disturb such choice of
                  forum. The parties waive the personal service of any and all
                  process upon them, and consent that all such service of
                  process may be made by certified or registered mail, return
                  receipt requested, addressed to the respective parties at the
                  address set forth above.

         13.9     No Partnership or Joint Venture. This Agreement does not
                  create a partnership or joint venture between the parties, and
                  shall not be construed as doing so. This Agreement does not
                  create any right by either party to bind the other party.

         13.10    No Third Party Beneficiaries. No person other than the parties
                  hereto and their permitted successors and assigns shall
                  receive any benefits of this Agreement.

         13.11    Notices. All notices, statements and other documents, and all
                  approvals or consents that any party is required or desires to
                  give to any other party, shall be given in writing and shall
                  be served in person, by express mail, by certified mail, by
                  overnight delivery, or by facsimile at the respective
                  addresses set forth below, or at such other addresses as may
                  be designated by such party in accordance with this Section.

       If to Interplay:                       with a copy to:

       Interplay Entertainment Corp.          Stradling Yocca Carlson & Rauth
       Attention:  Chief Executive Officer    660 Newport Center Dr., Suite 600
       16815 Von Karman Avenue                Newport Beach, California  92660
       Irvine, California  92606              Attention:  Dan Murphy
       Telephone:  (949) 553-6655             Telephone:  (949) 725-4000
       Facsimile:  (949) 252-0667             Facsimile:   (949) 725-4100

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

       If to UNIVERSAL:                       with a copy to:
       Vivendi Universal Interactive          Vivendi Universal Interactive
       Publishing North America, Inc.         Publishing North America, Inc.
       Attention: Chief Executive Officer     Attention: Corporate Counsel
       6080 Center Drive                      6080 Center Drive
       Los Angeles, California, 90045         Los Angeles, California, 90045
       Telephone: 310-431-4000                Telephone: 310-431-4000

                  Delivery shall be deemed conclusively made (i) at the time of
                  service, if personally served, (ii) five days after deposit in
                  the United States mail, properly addressed and postage
                  prepaid, if delivered by express mail or certified mail, (iii)
                  upon confirmation of delivery by the private overnight
                  deliverer, if served by overnight delivery, and (iv) at the
                  time of electronic transmission (with successful transmission
                  confirmation), provided a copy is mailed within 24 hours after
                  such transmission.

         13.12    Severability. Any provision of this Agreement that is found by
                  a court of competent jurisdiction to be void, invalid or
                  unenforceable shall be curtailed and limited only to the
                  extent necessary to bring such provision within the
                  requirements of the law, and such finding and curtailment
                  shall not affect the validity or enforceability of any other
                  provision of this Agreement.

         13.13    Entire Agreement. This Agreement (and all Exhibits attached
                  hereto and incorporated herein by this reference) constitute
                  the entire agreement among the parties with respect to the
                  subject matter hereof.

         13.14    Counterparts; Delivery. This Agreement may be executed in
                  counterparts and delivered by facsimile.

         13.15    Ordinary Course of Business. Interplay and UNIVERSAL each
                  acknowledge that any indebtedness created under this Agreement
                  shall be in the ordinary course of business and that the terms
                  of this Agreement are ordinary business terms between
                  Interplay and UNIVERSAL and are ordinary business terms for
                  the industry in which Interplay and UNIVERSAL participate.

         13.16    UNIVERSAL and Interplay agree that a condition precedent to
                  the effectiveness of this Agreement is the approval and
                  ratification of the Agreement by Interplay's Board of
                  Directors.

         13.17    Upon execution of this Agreement UNIVERSAL shall deposit Four
                  Million ($4,000,000) ("Funds") with the Agent (as defined
                  below) and the Funds shall be disbursed to Interplay in
                  accordance with the Escrow Instructions which shall be
                  executed concurrently with this Agreement and attached hereto
                  as Exhibit C ("Escrow Account"). The parties agree the escrow
                  agent shall be *** ("Agent"). Interplay shall pay the
                  administrative costs associated with the Escrow Account. In
                  the event the Funds are disbursed to UNIVERSAL in accordance
                  with the Escrow Instructions, Interplay shall pay interest on
                  the Funds at a rate of *** per annum.

         13.18    Neither party will not be liable for any delay in any of its
                  obligations pursuant to this Agreement resulting from any
                  cause beyond a party's reasonable control or caused by acts of
                  God, acts of civil or military authorities, priorities, fires,
                  strikes, floods, epidemics, governmental rules or regulations,
                  war, riot, delays in transportation or shortages.

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed the Agreement by their duly
authorized representatives as set forth below.

VIVENDI UNIVERSAL INTERACTIVE
  PUBLISHING NORTH AMERICA                  INTERPLAY ENTERTAINMENT CORP.

By: /s/ Phil O'Neil                         By: /s/ Brian Fargo
    ------------------------------              --------------------------------

Name: Phil O'Neil                           Name: Brian Fargo
      ----------------------------                ------------------------------

Title: Senior Vice President                Title: Chief Executive Officer
       ---------------------------                 -----------------------------

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

                                    EXHIBIT A
                                    ---------

                            PRODUCTS/DISTRIBUTION FEE

Products:         ***
--------

Distribution Fee Percentage:        15%
---------------------------

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

                                    EXHIBIT B
                                    ---------

                                  NAMED TITLES

For purposes of this Agreement the "Named Titles" are as follows:

Title of Games Currently Known as:

     1.       ***
     2.       ***
     3.       ***
     4.       ***
     5.       ***
     6.       ***

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

                                   EXHIBIT C
                                   ---------

                              ESCROW INSTRUCTIONS

     WHEREAS, Vivendi Universal interactive Publishing North America
("Universal") and Interplay Entertainment Corp. ("Interplay," and collectively
with Universal, the "Parties") have entered into that certain Distribution
Agreement of even date herewith (the "Agreement"); and

     WHEREAS, in accordance with Sections 13.17 of the Agreement, the Parties
have agreed that Universal will deposit $4,000,000 (including interest thereon
the "Funds") with the escrow agent (the "Agent") named therein, to be disbursed
in accordance with the instructions provided herein.

     NOW, THEREFORE, the Parties instruct the Agent as follows:

     1.  Agent shall receive and maintain the Funds in safe keeping, for
disbursement in accordance with these instructions.

     2.  Agent shall disburse the Funds to Interplay within *** business days of
Interplay's delivery to the Agent, prior to ***, of a written certification
(which may be by facsimile) executed by an authorized officer of Interplay
certifying any one or more of the following facts: (i) that Interplay has
obtained LaSalle Business Credit, Inc.'s consent and/or waiver of all conflicts
between the Agreement and the Loan and Security Agreement between Interplay and
LaSalle Business Credit, Inc. dated April 11, 2001 (the "Loan Agreement"); (ii)
that the *** ; or (iii) that Interplay has *** .

     3.  In the event that Interplay has not delivered a certification as
provided above prior to *** , upon written instructions from Universal (which
may be by facsimile) Agent shall disburse the Funds to Universal no later than
*** business days after receipt of such written instructions from Universal.

     4.  The Parties acknowledge and understand that the funds shall be held by
Agent in a trust account, and that only minimal interest will be earned on such
Funds.

     5.  Agent at its option shall be entitled to file an action of interpleader
requiring the Parties to answer and litigate any claims and rights among
themselves if in Agent's sole discretion a conflict, controversy or dispute
arises between the Parties.  Agent is authorized to deposit with the clerk of
the court all documents and funds held in escrow, and the parties shall
indemnify Agent for, and hold it harmless against, any loss, liability, cost or
expense, including but not limited to reasonable attorneys' fees, reasonably
incurred on the part of Agent in connection with such action and in connection
with Agent's duties and obligations under this Agreement, as well as the
reasonable costs and expenses of defending against any claim or liability
relating to this Agreement.  Upon initiating such action, Agent shall be fully
released and discharge of and from all obligations and liability imposed by the
terms of this Agreement.

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

We so instruct:

VIVENDI UNIVERSAL INTERACTIVE PUBLISHING NORTH AMERICA

By:  __________________
Its: __________________

INTERPLAY ENTERTAINMENT CORP.

By:  __________________
Its:  __________________

We agree to comply with the above instructions:

"AGENT"

By:  __________________
Its: __________________

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.<PAGE>

                                                                    EXHIBIT 10.2

                               September 14, 2001

Mr. Herve Caen
President
Interplay Entertainment Corporation
16815 Von Karman Avenue
Irvine, CA 92606

     Re:  Amendment #1 to the Distribution Agreement dated August 23, 2001
          ----------------------------------------------------------------

Dear Mr. Caen

     This letter when completely executed shall constitute an amendment
("Amendment #1") to the Distribution Agreement dated August 23, 2001 by and
between Vivendi Universal  Interactive Publishing North America, Inc.
("Universal") and Interplay Entertainment Corporation ("Interplay") (the
"Agreement").

     The Agreement shall be amended in the following respects only:

1)  Section 5.3 of the Agreement shall be modified to read as follows:

    "5.3  Title and Risk of Loss:  Title to Product units shall remain with
          ----------------------
Interplay until delivery to UNIVERSAL'S customers.  Risk of loss for units of
Interplay Manufactured SKUs shall pas to UNIVERSAL from Interplay upon delivery
at UNIVERSAL's distribution center.  Risk of loss of units of UNIVERSAL
Manufactured SKUs (i) shall remain with UNIVERSAL until delivery to UNIVERSAL's
customers for units of UNIVERSAL Manufactured SKUs distributed by UNIVERSAL
hereunder, and (ii) shall pass to Interplay from UNIVERSAL upon delivery at
Interplay's distribution center for units of UNIVERSAL Manufactured SKUs
distributed by Interplay pursuant to Section 2.6 above.  For Product units
returned to UNIVERSAL by UNIVERSAL's customers for which title has passed to
such customers, title will pass from the customer to Interplay upon delivery to
UNIVERSAL; provided that risk of loss for such Products will remain with
UNIVERSAL until re-delivery to Interplay or re-delivery to any subsequent
customers of returned Product units."

2)  Section 6.1 of the Agreement shall be modified to read as follows:

    "6.1  Price:  The proceeds payable by UNIVERSAL to Interplay for units of
          -----
any Product distributed by UNIVERSAL (the "Interplay Proceeds") shall be the
price at which UNIVERSAL sells such Product units to its customers (the
"Price"), less the following amounts only:

        (i)  ***

        (ii)  ***

        (iii)  ***

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

Mr. Herve Caen
President
September 14, 2001
Page 2

        (iv)  ***

        (v)  ***

     The balance shall be payable to interplay as Interplay Proceeds.

          UNIVERSAL will have the right to determine the Price for each Product
in its sole discretion (which will include UNIVERSAL's standard Included Fees
and Charges as specified by UNIVERSAL), and may revise the Price for any Product
by customer from time to time, subject to the provisions of Section 6.5 below.
At the time of the fist commercial shipment of each product, in order to convey
to consumers the high quality of the Product, Interplay will set the Price
within the range of then-standard dealer price levels for "front-line"
interactive entertainment software products of comparable quality and sales
potential.  Any change in the Price of any Product will become effective as to
UNIVERSAL *** days after the date of Interplay's written notice to UNIVERSAL of
the Price change or earlier as may be mutually agreed upon by the parties.
UNIVERSAL will incorporate a change in Price of a Product in UNIVERSAL's next
published price list.

          Notwithstanding the foregoing, in no event shall the Interplay
Proceeds be less than *** dollars ($***) with respect to each unit of console
Platform Products and less than *** dollars and *** cents ($***) with respect to
each unit of PC Platform Products.  The foregoing sentence shall not apply with
respect to ***.  The first sentence of this paragraph shall not apply to any
Product ***.  Furthermore, the first sentence of this paragraph shall not apply
with respect to Products which are ***.  By way of clarification, the minimum
Interplay Proceeds stated in this paragraph will apply for the first ***."

3)  The second sentence of Section 6.5(a), "Price Protection and Post-Sale
Markdowns," shall be modified to read as follows:

    "Interplay and Universal shall mutually determine (in good faith) the
extent of any price protection or post-sale markdown deductions extended to any
Products."

    The remainder of such Section shall remain unchanged.

4)  Section 6.10, "Collections and Bad Debt," shall be modified to read as
follows:

    "Collections and Bad Debt.  By way of clarification, UNIVERSAL will be
     ------------------------
responsible for all risk of collection of amounts owed by UNIVERSAL's customers
as a result of UNIVERSAL's activities under this Agreement, and UNIVERSAL will
not deduct any bad debt expenses or associated write-offs incurred as a result
of its activities under this Agreement. ***"

5)  Section 2 of Exhibit C, "Escrow Instructions" shall be modified to read as
follows:

          "Agent is authorized to disburse the Funds to Interplay within ***
business days of receipt of the complete executed version of this Amendment #1."

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.
<PAGE>

Mr. Herve Caen
President
September 14, 2001
Page 3

     Each Party (and the officers executing on its behalf) represents and
warrants that it has the required authority and capacity to enter into this
Amendment.  All corporate and other actions required to be taken by either Party
to authorize the execution, delivery and performance of this Amendment and all
transactions contemplated by this Amendment have been duly and effectively
taken.  Upon the full execution and delivery of this Amendment, this Amendment
will become a valid, binding and enforceable obligation upon both Parties.

     Subject to the foregoing, all other terms and conditions of the Agreement
and its Exhibits shall remain in full force and effect.

ACCEPTED AND AGREED,

/s/ Phil O'Neil                           /s/ Herve Caen
------------------------------            -----------------------------------
Vivendi Universal Interactive             Interplay Entertainment Corporation
Publishing North America, Inc.

*** Terms represented by this symbol are considered confidential. These
confidential terms have been omitted pursuant to a Confidential Treatment
Request filed with the Securities and Exchange Commission ("SEC") and have been
filed separately with the SEC.

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