Document:

<PAGE>

                                                                   EXHIBIT 10.10

                                                Portions of this document
                                                indicated by an * have been
                                                omitted and filed separately
                                                with the Securities and Exchange
                                                Commission pursuant to a request
                                                for confidential treatment of
                                                such omitted information.

                         CONFIDENTIAL LICENSE AGREEMENT
                              FOR NINTENDO GAMECUBE
                              (Western Hemisphere)

         THIS LICENSE AGREEMENT ("Agreement") is entered into between NINTENDO
OF AMERICA INC. ("NOA") at 4820 150th Avenue N.E., Redmond, WA 98052 Attn:
General Counsel (Fax: 425-882-3585) and Take Two Interactive Software, Inc.
("LICENSEE") at 575 Broadway, 3rd Floor, New York, NY 10012 Attn: Kristine
Severson (Fax: (212) 334-6644). NOA and LICENSEE agree as follows:

1.       RECITALS

         1.1 NOA markets and sells advanced design, high-quality video game
systems, including the "NINTENDO GAMECUBE(TM)" system.

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

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

2.       DEFINITIONS

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

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

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

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

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

         2.6 "Effective Date" means the last date on which all parties shall
have signed this Agreement.

         2.7 "Finished Goods" means Game Discs that have been fully assembled
with the Printed Materials, cellophane wrapped and boxed for delivery to
LICENSEE by NOA

         2.8 "Game Discs(s)" means custom optical discs for play on the NINTENDO
GAMECUBE system on which a Game has been stored.

         2.9 "Game(s)" means interactive video game programs (including source
and object/binary code) developed for play on the NINTENDO GAMECUBE system.

                                                                          PAGE 1
<PAGE>

         2.10 "Guidelines" means the then current version of the "NINTENDO
GAMECUBE Development Manual," "NINTENDO GAMECUBE Packaging Guidelines,"
"Nintendo Trademark Guidelines" and the "Nintendo Game Content Guidelines",
together with related guidelines provided by NOA to LICENSEE from time to time.

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

         2.12 "Intellectual Property Rights" means individually, collectively or
in any combination, Proprietary Rights owned, licensed or otherwise held by
Nintendo that are associated with the development, manufacturing, advertising,
marketing or sale of the Licensed Products, including, without limitation, (a)
registered and unregistered trademarks and trademark applications used in
connection with the NINTENDO GAMECUBE system including "Nintendo(R)", "NINTENDO
GAMECUBE(TM)," "GCN" and "Official Nintendo Seal of Quality(R)", and (b) select
trade dress associated with the NINTENDO GAMECUBE system and licensed video
games for play thereon, (c) Proprietary Rights in the Security Technology
employed in the Games or Game Discs by Nintendo, (d) rights in the Development
Tools for use in developing the Games, excluding, however, rights to use,
incorporate or duplicate select libraries, protocols and/or sound or graphic
files associated with the Development Tools which belong to any third party,
without obtaining any necessary licenses or consents, (e) patents, design
registrations or copyrights which may be associated with the Game Discs or
Printed Materials, (f) copyrights in the Guidelines, and (g) other Proprietary
Rights of Nintendo in the Confidential Information.

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

         2.14 "Marketing Materials" means marketing, advertising or promotional
materials developed by or for LICENSEE (or subject to LICENSEE's approval) that
promote the sale of the Licensed Products, including but not limited to,
television, radio and on-line advertising, point-of-sale materials (e.g.,
posters, counter-cards), package advertising, print media and all audio or video
media other than the Game that is to be included on the Game Disc.

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

         2.16 "Nintendo" means NOA's parent company, Nintendo Co., Ltd., of
Kyoto, Japan, individually or collectively with NOA.

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

         2.18 "Price Schedule" means the then current version of NOA's schedule
of purchase prices and minimum order quantities for the Licensed Products.

         2.19 "Printed Materials" means a plastic disc storage case, title page,
instruction booklet, warranty card and poster incorporating the Artwork,
together with a precautions booklet in the form specified by NOA.

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

                                                                          PAGE 2
<PAGE>

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

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

         2.23 "Reverse Engineer(ing)" means, without limitation, (a) the x-ray,
electronic scanning or physical or chemical stripping of semiconductor
components, (b) the disassembly, decompilation, decryption or simulation of
object code or executable code, or (c) any other technique designed to extract
source code or facilitate the duplication of a program or product.

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

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

         2.26 "Territory" shall mean all countries within the Western Hemisphere
and their respective territories and possessions.

3.       GRANT OF LICENSE; LICENSEE RESTRICTIONS

         3.1 Limited License Grant. For the Term and for the Territory, NOA
grants to LICENSEE a nonexclusive, nontransferable, limited license to use the
Intellectual Property Rights to develop (or have developed on their behalf)
Games for manufacture, advertising, marketing and sale as Licensed Products,
subject to the terms and conditions of this Agreement. Except as permitted under
a separate written authorization from Nintendo, LICENSEE shall not use the
Intellectual Property Rights for any other purpose.

         3.2 LICENSEE Acknowledgement. LICENSEE acknowledges (a) the value of
the Intellectual Property Rights, (b) the right, title and interest of Nintendo
in and to the Intellectual Property Rights, and (c) the right, title, and
interest of Nintendo in and to the Proprietary Rights associated with all
aspects of the NINTENDO GAMECUBE system. LICENSEE recognizes that the Games,
Game Discs and Licensed Products will embody valuable rights of Nintendo and
Nintendo's licensors. LICENSEE represents and warrants that it will not
undertake any act or thing which in any way impairs or is intended to impair any
part of the right, title, interest or goodwill of Nintendo in the Intellectual
Property Rights. LICENSEE's use of the Intellectual Property Rights shall not
create any right, title or interest of LICENSEE therein.

         3.3 LICENSEE Restrictions and Prohibitions. LICENSEE represents and
warrants that it will not at any time, directly or indirectly, do or cause to be
done any of the following:

                  (a) grant access to, distribute, transmit or broadcast a Game
by electronic means or by any other means known or hereafter devised, including,
without limitation, by wireless, cable, fiber optic, telephone lines, microwave,
radiowave, computer or other device network; provided, however, that limited
transmissions may be made for the sole purpose of facilitating development under
the terms of this Agreement, but no right of retransmission shall attach to any
such authorized transmission and reasonable security measures, customary within
the high technology industry, shall be utilized to reduce the risk of
unauthorized interception or retransmission of any such authorized transmission,

                                                                          PAGE 3
<PAGE>

                  (b) authorize or permit any online activities involving a
Game, including, without limitation, multiplayer, peer-to-peer or online play,

                  (c) modify, install or operate a Game on any server or
computing device for the purpose of or resulting in the rental, lease, loan or
other grant of remote access to the Game,

                  (d) emulate, interoperate, interface or link a Game for
operation or use with any hardware or software platform, accessory, computer
language, computer environment, chip instruction set, consumer electronics
device or device other than the NINTENDO GAMECUBE system or the Development
Tools,

                  (e) embed, incorporate, or store a Game in any media or format
except the optical disc format utilized by the NINTENDO GAMECUBE system, except
as may be necessary as a part of the Game development process under this
Agreement,

                  (f) design, implement or undertake any process, procedure,
program or act designed to disable, obstruct, circumvent or otherwise diminish
the effectiveness or operation of the Security Technology,

                  (g) utilize the Intellectual Property Rights to design or
develop any interactive video game program, except as authorized under this
Agreement,

                  (h) manufacture or reproduce a Game developed under this
Agreement, except through Nintendo, or

                  (i) Reverse Engineer or assist in Reverse Engineering all or
any part of the NINTENDO GAMECUBE system, including the hardware, software
(embedded or not) or the Security Technology.

         3.4 Nintendo Development Tools. NOA and Nintendo Co., Ltd. may lease,
loan or sell Development Tools to LICENSEE to assist in the development of Games
under this Agreement. LICENSEE acknowledges the exclusive interest of Nintendo
in and to the Proprietary Rights associated with the Development Tools.
LICENSEE's use of the Development Tools shall not create any right, title or
interest of LICENSEE therein. LICENSEE shall not, directly or indirectly, (a)
use the Development Tools for any purpose except the design and development of
Games under this Agreement, (b) reproduce or create derivatives of the
Development Tools, except in association with the development of Games under
this Agreement, (c) Reverse Engineer the Development Tools, or (d) sell, lease,
assign, lend, license, encumber or otherwise transfer the Development Tools. Any
tools developed or derived by LICENSEE as a result of a study of the
performance, design or operation of the Development Tools shall be considered a
derivative work of the Intellectual Property Rights, but may be retained and
utilized by LICENSEE in connection with this Agreement. In no event shall
LICENSEE (i) seek, claim or file for any patent, copyright or other Proprietary
Right with regard to any such derivative work, (ii) make available any such
derivative work to any third party, or (iii) use any such derivative work except
in connection with the design and development of Games under this Agreement.

         3.5 Third Party Development Tools. NOA and Nintendo Co., Ltd. may
authorize third parties to develop and market Development Tools to authorized
developers of Games. Notwithstanding any referral or information provided or
posted regarding such Development Tools, NOA and Nintendo Co., Ltd. make no
representations or warranties with regard to any such third party Development
Tools. Licensee acquires and utilizes such Development Tools at its own risk.
LICENSEE shall not, directly or indirectly, use such Development Tools for any
purpose except the design and development of Games under this Agreement. All
Nintendo Proprietary Rights contained in or derived from such Development Tools
shall remain owned by Nintendo.

                                                                          PAGE 4
<PAGE>

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

4.       SUBMISSION AND APPROVAL OF GAME AND ARTWORK

         4.1 Submission of a Completed Game to NOA. Upon completion of a Game,
LICENSEE shall deliver a prototype of the Game to NOA in a format specified in
the Guidelines. Delivery shall be made in accordance with the methods approved
in the Guidelines. Each Submission shall include such other information or
documentation deemed necessary by NOA, including, without limitation, a complete
set of written user instructions, a complete description of any security holes,
backdoors, time bombs, cheats, "easter eggs" or other hidden features or
characters in the Game and a complete screen text script. LICENSEE must
establish that the Game and any other content included on the Game Disc complies
with the Advertising Code of Conduct of the Entertainment Software Ratings Board
("ESRB") and has been rated EC, E, M or T by the ESRB.

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

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

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

         4.5 Cost of Disc Stamper Production. If LICENSEE (a) disapproves the
Check Discs for any reason, or (b) fails to order the minimum order quantity of
any Game approved by NOA, LICENSEE shall reimburse NOA (or its designee) for the
reasonable estimated cost of the production of the Check Discs, including the
cost of the disc stamper. The payment will be due upon the earlier of (a) the
subsequent submission by LICENSEE of a revised version of the Game to NOA, or
(b) six (6) months after the date the Game was first approved by NOA.

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

                                                                          PAGE 5
<PAGE>

         4.7 Artwork for Bulk Goods. If LICENSEE intends to submit an order for
Bulk Goods, all Artwork shall be submitted to NOA in accordance with Section 4.6
herein. No Printed Materials shall be produced by LICENSEE until such Artwork
has been approved by NOA.

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

5.       ORDER PROCESS, PURCHASE PRICE, PAYMENT AND DELIVERY

         5.1 Submission of Orders by LICENSEE. After receipt of NOA's approval
for a Game and Artwork, LICENSEE may at any time submit a written purchase order
to NOA for such Game. The purchase order shall specify whether the order is for
Finished Goods or Bulk Goods. The terms and conditions of this Agreement shall
control over any contrary terms of such purchase order or any other written
documentation or verbal instruction from LICENSEE. All orders shall be subject
to acceptance by NOA in Redmond, WA.

         5.2 Purchase Price and Minimum Order Quantities. The purchase price and
minimum order quantities for the Licensed Products (both Finished Goods and Bulk
Goods) shall be set forth in NOA's then current Price Schedule. Unless otherwise
specifically provided for, the purchase price includes the cost of manufacturing
a single Game Disc, together with a royalty for the use of the Intellectual
Property Rights. No taxes, duties, import fees or other tariffs related to the
development, manufacture, import, marketing or sale of the Licensed Products
(except for taxes imposed on NOA's income) are included in the Purchase Price
and all such taxes are the responsibility of LICENSEE. The Price Schedule is
subject to change by NOA at any time without Notice.

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

         5.4 Delivery of Finished Goods. Finished Goods shall be delivered to
LICENSEE FCA North Bend, Washington USA, or such other delivery point within the
continental United States as may be specified by NOA. Orders may be delivered in
partial shipments, at NOA's option. Title to Finished Goods shall vest in
LICENSEE at the point of delivery.

         5.5 Delivery of Bulk Goods. Bulk Goods shall be delivered to LICENSEE
FCA Torrance, California USA, or such other delivery point within the
continental United States as may be specified by NOA. Orders may be delivered in
partial shipments, at NOA's option. Title to Bulk Goods shall vest in LICENSEE
at the point of delivery.

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

                                                                          PAGE 6
<PAGE>

6.       MANUFACTURE OF THE LICENSED PRODUCT

         6.1 Manufacturing. Nintendo Co. Ltd. shall be the exclusive source for
the manufacture of the Game Discs, Check Discs and Promotional Discs, with
responsibility for all aspects of the manufacturing process, including the
selection of the locations and specifications for any manufacturing facilities,
determination of materials and processes, appointment of suppliers and
subcontractors and management of all work-in-progress. Upon acceptance by NOA of
a purchase order from LICENSEE and receipt of payment as provided for at Section
5.3 herein, NOA shall place the order with Nintendo Co., Ltd. who shall (through
its suppliers and subcontractors) arrange for the manufacture of the Licensed
Product.

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

         6.3 Bulk Goods Orders. LICENSEE may elect to order Bulk Goods under the
terms of this Agreement, in which event LICENSEE shall arrange and pay for the
production of the Printed Materials and the final assembly of the Licensed
Product in accordance with the Guidelines.

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

         6.5 Prior Approval of LICENSEE's Independent Contractors. Prior to the
placement of a purchase order for Bulk Goods, LICENSEE shall obtain NOA's
approval of any Independent Contractors selected to perform the production and
assembly operations. LICENSEE shall provide NOA with the names, addresses and
all business documentation reasonably requested by NOA for such Independent
Contractors. NOA may, prior to approval and at reasonable intervals thereafter,
(a) require submission of additional business or financial information regarding
the Independent Contractors, (b) inspect applicable facilities of the
Independent Contractors, and (c) be present to supervise any work on the
Licensed Products to be done by the Independent Contractors. If at any time NOA
deems the Independent Contractor to be unable to meet quality, security or
performance standards reasonably established by NOA, NOA may refuse to grant its
approval or withdraw its approval upon Notice to LICENSEE. LICENSEE may not
proceed with the production of the Printed Materials or assembly of the Licensed
Product until NOA's concerns have been resolved to its satisfaction or until
LICENSEE has selected and received NOA's approval of another Independent
Contractor. NOA may establish preferred or required supply sources for select
components of the Printed Materials, which sources shall be deemed preapproved
in accordance with this Section 6.5. LICENSEE shall comply with all sourcing
requirements established by NOA.

         6.6 NOA Inserts for Bulk Goods. NOA, at its option, may provide
LICENSEE with NOA produced promotional materials (as provided for at Section
7.7(a) herein), which LICENSEE agrees to include in the assembly of the Bulk
Goods.

         6.7 Sample Printed Materials for Bulk Goods. Within a reasonable period
of time after LICENSEE's assembly of an initial order for a Bulk Goods title,
LICENSEE shall provide NOA with (a) six (6) samples of the fully assembled
Licensed Product, and (b) seventy (70) samples of the LICENSEE produced Printed
Materials (excluding the plastic disc storage case, warranty card, poster and
precautions booklet) for such Bulk Goods.

                                                                          PAGE 7
<PAGE>

         6.8 Retention of Sample Licensed Products by NOA. NOA or Nintendo may,
at their own expense, manufacture reasonable quantities of the Game Discs, the
Printed Materials or the Licensed Products to be used for archival purposes,
legal proceedings against infringers of the Intellectual Property Rights and for
other lawful purposes.

7.       MARKETING AND ADVERTISING

         7.1 Approval of Marketing Materials. LICENSEE represents and warrants
that the Printed Materials and the Marketing Materials shall be of high quality
and comply with (a) the Guidelines, (b) the Advertising Code of Conduct and the
Principles and Guidelines for Responsible Advertising of the ESRB, and (c) all
applicable laws and regulations in those jurisdictions in the Territory where
they will be used or distributed. All LICENSEE controlled websites featuring the
Games shall adopt a privacy policy that has been certified by the Federal Trade
Commission to comply with the Children's Online Privacy Protection Act. Prior to
actual use or distribution, LICENSEE shall submit to NOA for review samples of
all proposed Marketing Materials. NOA shall, within ten (10) business days of
receipt, approve or disapprove of the quality of such samples. If any of the
samples are disapproved, NOA shall specify the reasons for such disapproval and
state what corrections and/or improvements are necessary. After making the
necessary corrections and/or improvements, LICENSEE shall submit revised samples
for approval by NOA. No Marketing Materials shall be used or distributed by
LICENSEE without NOA's prior written approval. NOA shall not unreasonably
withhold or delay its approval of any proposed Marketing Materials.

         7.2 No Bundling. LICENSEE shall not market or distribute any Finished
Goods or Bulk Goods that have been bundled with (a) any peripheral designed for
use with the NINTENDO GAMECUBE system that has not been licensed or approved in
writing by NOA, or (b) any other product or service where NOA's association or
endorsement might be suggested by bundling the products or services.

         7.3 Warranty and Repair. LICENSEE shall provide the original consumer
with a minimum ninety (90) day limited warranty on all Licensed Products.
LICENSEE shall also provide reasonable product service, including
out-of-warranty service, for all Licensed Products. LICENSEE shall make such
warranty and repair information available to consumers as required by applicable
federal and state law.

         7.4 Business Facilities. LICENSEE agrees to develop and maintain (a)
suitable office facilities within the United States, adequately staffed to
enable LICENSEE to fulfill all responsibilities under this Agreement, (b)
necessary warehouse, distribution, marketing, sales, collection and credit
operations to facilitate proper handling of the Licensed Product, and (c)
customer service and game counseling, including telephone service, to adequately
support the Licensed Products.

         7.5 No Sales Outside the Territory. LICENSEE represents and warrants
that it shall not market, sell, offer to sell, import or distribute the Licensed
Products outside the Territory, or within the Territory when with actual or
constructive knowledge that a subsequent destination of the Licensed Product is
outside the Territory.

         7.6 Defects and Recall. In the event of a material programming defect
in a Licensed Product that would, in NOA's reasonable judgment, significantly
impair the ability of a consumer to play the Game, NOA may, after consultation
with LICENSEE, require the LICENSEE to recall the Licensed Product and undertake
suitable repairs or replacements.

         7.7 NOA Promotional Materials, Publications and Events. At its option,
NOA may (a) insert in the Printed Materials for the Licensed Products
promotional materials concerning Nintendo Power magazine or other NOA products,
services or programs, (b) utilize screen shots, Artwork and information
regarding the Licensed Products in Nintendo Power, Nintendo Power Source or
other advertising, promotional or marketing media, which promotes NOA products,
services or programs, and (c) exercise public performance rights in the Games
and use related trademarks and Artwork in connection with NOA sponsored
contests, tours, conventions, trade shows, press briefings and similar events
which promote the NINTENDO GAMECUBE system.

                                                                          PAGE 8
<PAGE>

         7.8 Nintendo Gateway System. To promote and increase demand for games
on Nintendo video game systems, NOA licenses select games in various non-coin
activated commercial settings such as commercial airlines, cruise ships, rail
systems and hotels, where customers play games on specially adapted Nintendo
video game hardware referred to as the "Nintendo Gateway System". If NOA
identifies a Game for possible license on the Nintendo Gateway System, the
parties agree to conduct good faith negotiations to determine commercially
reasonable terms for such participation.

8.       CONFIDENTIAL INFORMATION

         8.1 Definition. Confidential Information means information provided to
LICENSEE by Nintendo or any third party working with Nintendo relating to the
hardware and software for the NINTENDO GAMECUBE system or the Development Tools,
including, but not limited to, (a) all current or future information, know-how,
techniques, methods, information, tools, emulator hardware or software, software
development specifications, proprietary manufacturing processes and/or trade
secrets, (b) any information on patents or patent applications, (c) any
business, legal, marketing or sales data or information, and (d) any other
information or data relating to development, design, operation, manufacturing,
marketing or sales. Confidential Information shall include all confidential
information disclosed, whether in writing, orally, visually, or in the form of
drawings, technical specifications, software, samples, pictures, models,
recordings, or other tangible items which contain or manifest, in any form, the
above listed information. Confidential Information shall not include (i) data
and information which was in the public domain prior to LICENSEE's receipt of
the same hereunder, or which subsequently becomes part of the public domain by
publication or otherwise, except by LICENSEE's wrongful act or omission, (ii)
data and information which LICENSEE can demonstrate, through written records
kept in the ordinary course of business, was in its possession without
restriction on use or disclosure, prior to its receipt of the same hereunder and
was not acquired directly or indirectly from Nintendo under an obligation of
confidentiality which is still in force, and (iii) data and information which
LICENSEE can show was received by it from a third party who did not acquire the
same directly or indirectly from Nintendo and to whom LICENSEE has no obligation
of confidentiality.

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

         8.3 Disclosure and Use. NOA may provide LICENSEE with highly
confidential development information, Guidelines, Development Tools, systems,
specifications and related resources and information constituting and
incorporating the Confidential Information to assist LICENSEE in the development
of Games. LICENSEE agrees to maintain all Confidential Information as strictly
confidential and to use such Confidential Information only in accordance with
this Agreement. LICENSEE shall limit access to the Confidential Information to
LICENSEE's employees having a strict need to know and shall advise such
employees of their obligation of confidentiality as provided herein. LICENSEE
shall require each such employee to retain in confidence the Confidential
Information pursuant to a written non-disclosure agreement between LICENSEE and
such employee. LICENSEE shall use its best efforts to ensure that its employees
working with or otherwise having access to Confidential Information shall not
disclose or make any unauthorized use of the Confidential Information.

         8.4 Independent Contractor Use. LICENSEE shall not disclose the
Confidential Information, the Guidelines or the Intellectual Property Rights to
any Independent Contractor, nor permit any Independent Contractor to perform or
assist in development work for a Game, nor utilize any Development Tools without
NOA's prior written consent. Each approved Independent Contractor shall be
required to enter into a written non-disclosure agreement with NOA prior to
receiving any access to or disclosure of such materials from either LICENSEE or
NOA.

                                                                          PAGE 9
<PAGE>

         8.5 Agreement Confidentiality. LICENSEE agrees that the terms,
conditions and contents of this Agreement shall be treated as Confidential
Information. Any public announcement or press release regarding this Agreement
or the release dates for Games developed by LICENSEE under this Agreement shall
be subject to NOA's prior written approval. The parties may disclose this
Agreement (a) to accountants, banks, financing sources, lawyers, parent
companies and related parties under substantially equivalent confidentiality
obligations, (b) in connection with any formal legal proceeding for the
enforcement of this Agreement, (c) as required by the regulations of the
Securities and Exchange Commission ("SEC"), provided that all Confidential
Information regarding NOA shall be redacted from such disclosures to the maximum
extent allowed by the SEC, and (d) in response to lawful process, subject to a
written protective order approved in advance by NOA.

         8.6 Notification Obligations. LICENSEE shall promptly notify NOA of the
unauthorized use or disclosure of any Confidential Information and shall
promptly act to recover any such information and prevent further breach of the
obligations herein. The obligations of LICENSEE set forth herein are in addition
to and not in lieu of any other legal remedy that may be available to NOA under
this Agreement or applicable law.

         8.7 Continuing Effect of the NDA. The terms of this Section 8
supplement the terms of the NDA, which shall remain in effect. In the event of a
conflict between the terms of the NDA and this Agreement, the provisions of this
Agreement shall control.

9.       REPRESENTATIONS AND WARRANTIES

         9.1 LICENSEE's Representations and Warranties. LICENSEE represents and
warrants that:

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

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

                  (c) excluding the Intellectual Property Rights, LICENSEE is
either (i) the sole owner of all right, title and interest in and to the
trademarks, copyrights and all other Proprietary Rights incorporated into the
Game or the Artwork or used in the development, advertising, marketing and sale
of the Licensed Products or the Marketing Materials, or (ii) the holder of such
rights, including trademarks, copyrights and all other Proprietary Rights which
belong to any third party but have been licensed from such third party by
LICENSEE, as are necessary for incorporation into the Game or the Artwork or as
are used in the development, advertising, marketing and sale of the Licensed
Products or the Marketing Materials under this Agreement.

         9.2 NOA's Representations and Warranties. NOA represents and warrants
that:

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

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

         9.3 INTELLECTUAL PROPERTY RIGHTS DISCLAIMER. NOA (ON ITS OWN BEHALF AND
ON BEHALF OF NINTENDO CO., LTD. AND ITS AFFILIATES, LICENSORS, SUPPLIERS AND
SUBCONTRACTORS) EXPRESSLY DISCLAIMS ALL representationS AND warrantIES
concerning the scope or validity of the Intellectual Property Rights. NOA (ON
ITS OWN BEHALF AND ON BEHALF OF ninTENDO CO., LTD. AND ITS AFFILIATES,
LICENSORS, SUPPLIERS AND SUBCONTRACTORS) EXPRESSLY DISCLAIMS ANY warrantY that
the design, development, advertising, marketing or sale of the Licensed Products
or the use of the Intellectual Property Rights by LICENSEE will not infringe
upon ANY patent, copyright, trademark or other proprietary rights of a third
party. any warranty that may be provided in any applicable provision of the
uniform commerCIal code or any other comparable law or statute is expressly
DISCLAIMED. licensee herEBY ASSUMES THE RISK OF INFRINGEMENT.

                                                                         PAGE 10
<PAGE>

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

         9.5 LIMITATION OF LIABILITY. TO THE MAXIMUM EXTENT PERMITTED BY LAW,
NEITHER NOA NOR NINTENDO CO., LTD. (NOR THEIR AFFILIATES, LICENSORS, SUPPLIERS
OR SUBCONTRACTORS) SHALL BE LIABLE FOR LOSS OF PROFITS, OR FOR ANY SPECIAL,
PUNITIVE, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF LICENSEE OR ITS CUSTOMERS
ARISING OUT OF OR RELATED TO THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE
BREACH OF THIS AGREEMENT BY NOA, THE MANUFACTURE OF THE LICENSED PRODUCTS OR THE
USE OF THE LICENSED PRODUCTS ON ANY NINTENDO VIDEO GAME SYSTEM BY LICENSEE OR BY
ANY END USER.

10.      INDEMNIFICATION

         10.1 LICENSEE's Indemnification. LICENSEE shall indemnify and hold
harmless NOA and Nintendo Co., Ltd. (and any of their respective affiliates,
subsidiaries, licensors, suppliers, officers, directors, employees or agents)
from any claims, losses, liabilities, damages, expenses and costs, including,
without limitation, reasonable attorneys' fees and costs and any expenses
incurred in the settlement or avoidance of any such claim, which result from or
are in connection with:

                  (a) a breach of any of the provisions, representations or
warranties undertaken by LICENSEE in this Agreement,

                  (b) any infringement of a third party's Proprietary Rights as
a result of the design, development, advertising, marketing, sale or use of any
aspect of the Licensed Products, Promotional Materials or the Marketing
Materials,

                  (c) any claims alleging a defect, failure to warn, bodily
injury (including death) or other personal or property damage arising out of, or
in connection with, the design, development, advertising, marketing, sale or use
of any of any aspect of the Licensed Products, and

                  (d) any federal, state or foreign civil or criminal actions
relating to the design, development, advertising, marketing, sale or use of any
aspect of the Licensed Products, Promotional Materials or the Marketing
Materials.

NOA and LICENSEE shall give prompt Notice to the other of any claim which is or
which may be subject to indemnification under this Section 10.1. With respect to
any such third party claim, LICENSEE, as indemnitor, shall have the right to
select counsel and to control the defense and/or settlement thereof. NOA may, at
its own expense, participate in such action or proceeding with counsel of its
own choice. LICENSEE shall not enter into any settlement of any matter in which
(i) NOA or Nintendo Co., Ltd. has been named as a party, or (ii) claims relating
to the Intellectual Property Rights have been asserted, without NOA's prior
written consent. NOA shall provide reasonable assistance to LICENSEE in its
defense of any such claim.

                                                                         PAGE 11
<PAGE>

         10.2 LICENSEE's Insurance. LICENSEE shall, at its own expense, obtain a
comprehensive policy of general liability insurance (including coverage for
advertising injury and product liability claims) from a recognized insurance
company. Such policy of insurance shall be in an amount of not less than Five
Million Dollars ($5,000,000 US) on a per occurrence basis and shall provide for
adequate protection against any suits, claims, loss or damage by the Licensed
Products. Such policy shall name NOA and Nintendo Co., Ltd. as additional
insureds and shall specify it may not be canceled without thirty (30) days'
prior written Notice to NOA. If LICENSEE fails to maintain such insurance at any
time during the Term and for a period of two (2) years thereafter, NOA may
secure such insurance at LICENSEE's expense.

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

11.      PROTECTION OF PROPRIETARY RIGHTS

         11.1 Joint Actions against Infringers. LICENSEE and NOA may agree to
jointly pursue cases of infringement involving of the Licensed Products, as such
Licensed Products will contain Proprietary Rights owned by each of them. Unless
the parties otherwise agree, or unless the recovery is expressly allocated
between them by the court, in the event of such an action, any recovery shall be
used first to reimburse LICENSEE and NOA for their respective reasonable
attorneys' fees and costs, pro rata, and any remaining recovery shall be
distributed to LICENSEE and NOA, pro rata, based upon the fees and costs
incurred in bringing such action.

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

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

12.      ASSIGNMENT

         12.1 No Assignment by LICENSEE. This Agreement is personal to LICENSEE
and may not be sold, assigned, delegated, sublicensed or otherwise transferred
or encumbered, in whole or in part, without NOA's prior written consent, which
consent may be withheld by NOA in its sole discretion. In the event of an
assignment or other transfer in violation of this Agreement, NOA shall have the
unqualified right to immediately terminate this Agreement without further
obligation to LICENSEE.

         12.2 Assignment by Operation of Law. In the event of an assignment by
operation of law which purports to affect this Agreement, LICENSEE shall, not
later than thirty (30) days thereafter, give Notice and seek consent thereto
from NOA. Such Notice shall disclose the name of the assignee, the effective
date and the nature and extent of the assignment. An assignment by operation of
law includes, but is not limited to (a) a merger of LICENSEE into another
business entity or a merger of another business entity into LICENSEE, (b) the
sale, assignment or transfer of all or substantially all of the assets of
LICENSEE to a third party, (c) the sale, assignment or transfer to a third party
of any of the LICENSEE's intellectual property rights which are used in the
development of or are otherwise incorporated into any Licensed Products, or (d)
the sale, assignment or transfer of any of LICENSEE's stock resulting in the
acquirer having management power over or voting control of LICENSEE. Following
the later of (i) an assignment by operation of law, or (ii) receipt of Notice of
an assignment by operation of law, NOA shall have the unqualified right for a
period of ninety (90) days to immediately terminate this Agreement without
further obligation to LICENSEE.

                                                                         PAGE 12
<PAGE>

         12.3 Non-Disclosure Obligation. In no event shall LICENSEE disclose or
allow access to Nintendo's Confidential Information prior to or upon the
occurrence of an assignment, whether by operation of law or otherwise, unless
and until NOA gives its written consent to such disclosure.

13.      TERM AND TERMINATION

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

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

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

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

         13.5 Termination by LICENSEE's Breach. If this Agreement is terminated
by NOA as a result of a breach of its terms and conditions by LICENSEE, LICENSEE
shall immediately cease all distribution, advertising, marketing or sale of any
Licensed Products. All Licensed Products in LICENSEE's control as of the date of
such termination shall be destroyed by LICENSEE within ten (10) days and Notice
of such destruction (with proof certified by an officer of LICENSEE) shall be
delivered to NOA.

         13.6 Breach of NDA or other NOA License Agreements. At NOA's option,
any breach by LICENSEE of (a) the NDA, or (b) any other license agreement
between NOA and LICENSEE relating to the development of games for any Nintendo
video game system, which breach is not cured within the time period for cure
allowed under the applicable agreement, shall be considered a material breach of
this Agreement entitling NOA to terminate this Agreement in accordance with
Section 13.5 herein.

         13.7 No Further Use of the Intellectual Property Rights. Upon
expiration and/or termination of this Agreement, LICENSEE shall cease all use of
the Intellectual Property Rights for any purpose, except as may be required in
connection with the sale of the Licensed Products authorized under Section 13.4
herein. LICENSEE shall, within thirty (30) days thereafter, (a) return to NOA
all Development Tools, and (b) return to NOA or destroy all Guidelines,
writings, drawings, models, data, tools and other materials and things in
LICENSEE's possession or in the possession of any past or present employee,
agent or contractor receiving the information through LICENSEE, which constitute
or relate to or disclose any Confidential Information, without making copies or
otherwise retaining any such information. Proof of such return or destruction
shall be certified by an officer of LICENSEE and promptly provided to NOA.

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

                                                                         PAGE 13
<PAGE>

14.      GENERAL PROVISIONS

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

         14.2 Force Majeure. Neither party shall be liable for any breach of
this Agreement occasioned by any cause beyond the reasonable control of such
party, including governmental action, war, riot or civil commotion, fire,
natural disaster, labor disputes, restraints affecting shipping or credit, delay
of carriers, inadequate supply of suitable materials, or any other cause which
could not with reasonable diligence be controlled or prevented by the parties.
In the event of material shortages, including shortages of materials or
production facilities necessary for production of the Licensed Products, NOA
reserves the right to allocate such resources among itself and its licensees.

         14.3 Records and Audit. During the Term and for a period of two (2)
years thereafter, LICENSEE agrees to keep accurate, complete and detailed
records relating to the use of the Confidential Materials, the Development Tools
and the Intellectual Property Rights. Upon reasonable Notice to LICENSEE, NOA
may, at its expense, audit LICENSEE's records, reports and other information
related to LICENSEE's compliance with this Agreement; provided, however, that
NOA shall not, during the course of the audit, access LICENSEE's source code,
development plans, marketing plans, internal business plans or other items
deemed confidential by LICENSEE, except to the extent such materials
incorporate, disclose or reference Nintendo's Confidential Information or
Intellectual Property Rights.

         14.4 Waiver, Severability, Integration, and Amendment. The failure of a
party to enforce any provision of this Agreement shall not be construed to be a
waiver of such provision or of the right of such party to thereafter enforce
such provision. In the event that any term, clause or provision of this
Agreement shall be construed to be or adjudged invalid, void or unenforceable,
such term, clause or provision shall be construed as severed from this
Agreement, and the remaining terms, clauses and provisions shall remain in
effect. Together with the NDA, this Agreement constitutes the entire agreement
between the parties relating to the subject matter hereof. All prior
negotiations, representations, agreements and understandings are merged into,
extinguished by and completely expressed by this Agreement and the NDA. Any
amendment to this Agreement shall be in writing, signed by both parties.

         14.5 Survival. In addition to those rights specified elsewhere in this
Agreement, the rights and obligations set forth in Sections 3, 8, 9, 10, 11, 12
and 13 shall survive any expiration or termination of this Agreement to the
degree necessary to permit their complete fulfilment or discharge.

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

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

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

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

                                                                         PAGE 14
<PAGE>

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

NOA:                                   LICENSEE:
NINTENDO OF AMERICA INC.               TAKE TWO INTERACTIVE SOFTWARE, INC.

By: /s/ John H. Baum                   By: /s/ Kelly Sumner
   --------------------------------       --------------------------------
Title: Executive VP, Administration    Title: Chief Executive Officer
                                             -----------------------------
Date: 12-07-01                         Date: 11-29-01
     ------------------------------         ------------------------------

                                                                         PAGE 15
<PAGE>

                                    Portions of this document indicated by an *
                                    have been omitted and filed separately with
                                    the Securities and Exchange Commission
                                    pursuant to a request for confidential
                                    treatment of such omitted information.

                            NINTENDO OF AMERICA INC.
                                 PRICE SCHEDULE
                        NINTENDO GAMECUBE LICENSED DISCS

PRICING
-------

   Single Game Discs                   Licensee Price ($USD)
   -----------------                   ---------------------

   Finished Goods                      $* (includes instruction booklet
                                           up to * pages)

   Finished Goods                      $* (includes instruction booklet
                                            up to * pages)

   Bulk Goods                          $*

Game Disc Payment Terms:  Letter of Credit or Wire Transfer.
-----------------------

Game Disc Minimum Order Quantities:
----------------------------------

                                 Finished Goods    Bulk Goods
                                 --------------    ----------

   Initial Order Minimum         *                 *

   Reorder Minimum               *                 *

Game Disc Delivery Terms:
------------------------

   Finished Goods - FCA North Bend, Washington. Includes Game disc,
   plastic disc case, title page, instruction booklet, precaution booklet,
   warranty card and poster.

   Bulk Goods - FCA Torrance, California.   Includes Game disc only.
   ----------

Extra Packaging:
---------------

   To order extra packaging for a Finished Goods title, please send a
   separate purchase order to NOA's Licensing Department, attention Kris
   Gustafson. Pricing is as follows:

   Instruction Booklet (up to * pages)         $*
   Instruction Booklet (up to * pages)         $*
   Title Page                                  $*
   Warranty Card                               $*
   Poster                                      $*

   If an order for extra packaging is placed at the same time as an order
   for Finished Goods of the same Game title, there is no minimum order
   quantity. If an order for extra packaging is placed at any other time,
   the minimum order quantity is * per item.

   Extra Packaging Terms:  Net * days

ALL PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE BY NINTENDO
                                                    EFFECTIVE September 24, 2001

                                                                        PAGE 16
<PAGE>

                                    Portions of this document indicated by an *
                                    have been omitted and filed separately with
                                    the Securities and Exchange Commission
                                    pursuant to a request for confidential
                                    treatment of such omitted information.

                            NINTENDO OF AMERICA INC.
                         VOLUME DISCOUNT REBATE PROGRAM
                                NINTENDO GAMECUBE

Number of Game Discs Ordered           Rebate Amount ($USD)
-----------------------------          --------------------
*                                               *
*                                               *
*                                               *
*                                               *
*                                               *
*                                               *

Effective: Effective for * (*) * from the date of the first purchase order for a
specific Game title.

QUALIFYING FOR ORDERS: Rebates under this Volume Discount Rebate Program are
determined on a per title basis and do not include Promotional Discs or Check
Discs. Finished Goods and Bulk Goods both qualify for this Rebate Program.

Terms: Volume discount unit prices may be reflected on licensee purchase orders
and letters of credit immediately when earned. The cumulative calculation period
will be in effect for * (*) * from the date of the initial order of each Game
title. At the end of the * (*) * term, the price for all future orders of the
specific Game title will be at the "Lowest Period Volume Price." This price will
be indicated on a rebate report sent monthly to each licensee.

Since the Volume Discount Rebate Program affects all orders over * made within *
(*) * for a specific Game title, rebates will be calculated each month back to
the first quantity ordered. Each time a new tier of the volume breakdown is
reached for a specific Game title, a licensee is immediately eligible for that
unit price on all past, present and future orders. Nintendo will determine the
rebate amount owed back to the first unit of a specific Game title ordered and
will send payment to the licensee (by check or wire transfer) by approximately
the * day of the month following eligibility.

THE VOLUME DISCOUNT REBATE PROGRAM IS SUBJECT TO CHANGE WITHOUT NOTICE BY
NINTENDO

                                                    EFFECTIVE SEPTEMBER 24, 2001

                                                                        PAGE 17<PAGE>

                                                                   EXHIBIT 10.26

                           ALTIGEN COMMUNICATIONS INC.

             ORIGINAL EQUIPMENT MANUFACTURE PRIVATE LABEL AGREEMENT

     THIS ORIGINAL EQUIPMENT MANUFACTURE (OEM) AGREEMENT ("Agreement") is made
and entered into as of this l8th day of January, 1999 (the "Effective Date") by
and between ALTIGEN COMMUNICATIONS INC., a California corporation, with
principal offices at 45635 Northport Loop East, Fremont, CA 94538 ("AltiGen")
and AltiSys Communications, a California corporation, with principal offices at
143 Walter Hays Dr., Palo Alto, CA 94303 (OEM").

     In consideration of the mutual covenants contained herein, the parties
agree as follows:

     1.   DEFINITIONS

          1.1   DEALER means any individual or entity which acquires the
Products for the express purpose of resale to others, whether such resale is of
the Product as a stand-alone product, as bundled and sold with other software or
hardware products, as integrated with other software, or hardware products or as
sold with associated services.

          1.2   END USER means a licensee who acquires Products for Internal Use
(rather than Original Equipment Manufacture or resale) in accordance with the
terms of an End-User License Agreement substantially in the form of the End-User
License Agreement attached hereto as Exhibit A (the "End-User Agreement").

          1.3   INTERNAL USE means use for purposes which do not directly
produce revenue for the End User. "Internal Use" does not include timesharing.

          1.4   INTELLECTUAL PROPERTY means any patent, copyright, trade name,
trade mark, trade secret, know-how, mask work or any other intellectual property
right or proprietary information or technology, whether registered or
unregistered.

          1.5   PRODUCT means software program packages and physical computer
hardware, including (1) a program code, in object code form only, on diskette(s)
or CD-ROM (the "Program"); (2) physical computer hardware including computer
boards, computer power supply, computer cables (the "PC Hardware"); (3)
instruction booklets and other information prepared for End-Users concerning the
use of the program and computer hardware ("Documentation"); (4) an End-User
Agreement. The Products include only those listed by title and functional
description on the "Product and Price List" attached hereto as Exhibit B.

          1.6   TERRITORY shall mean the [*****].

<PAGE>

          1.7   GRANT OF ORIGINAL EQUIPMENT MANUFACTURE RIGHT. Subject to the
terms and conditions set forth in this Agreement, AltiGen Communications hereby
grants to OEM a non-exclusive, non-transferable right to (a) market and
distribute the Products solely to Dealers and end users located in the Territory
and (b) use the Products for those purposes set forth in the Agreement. OEM
shall not, directly or indirectly, solicit sales of the Products outside of the
Territory without the prior written consent of AltiGen Communications. AltiGen
Communications retains the right to sell the Products directly to other parties
in the Territory, including, by way of illustration but not limitation, OEMs,
Distributors, Dealers, and original equipment manufacturers. OEM shall have no
right to modify the Product without the prior written approval of AltiGen
Communications. OEM agrees not to (a) reverse engineer, decompile, disassemble
or otherwise reduce the Product to human-perceivable form, or to encourage or
assist third parties in doing so. All rights not expressly granted herein are
retained by AltiGen Communications. OEM shall have no right to grant a Dealer
the right to make copies from a golden master absent further agreement between
AltiGen Communications and the OEM.

          1.8   OEM AGREES that it will not use AltiGen products except as
authorized herein and that it will not make, have made, or permit to be made any
copies of AltiGen products except for use on the Designated Equipment at the
Designated Site (including backup and archival copies necessary in connection
with such use), and will not make and distribute any copy of AltiGen products
for OEM except in accordance with this Agreement each such copy shall contain
any copyright notice, proprietary notice or notice giving credit to another
developer, which appears on or in the AltiGen products for OEM being copied.

     2.   OWNERSHIP

          Except as specified in this Agreement, AltiGen Communications does not
grant to the OEM any rights in or to any Intellectual Property related to the
Product or to any materials furnished hereunder. The Intellectual Property
embodied in the Product, all modifications thereto, and all Documentation
thereof, are proprietary to AltiGen Communications, and AltiGen Communications
retains all right, title and interest in and to such Intellectual Property.

     3.   PRICES AND PAYMENTS

          3.1   PRICES. OEM shall pay AltiGen Communications, for each Product
and upgrade, the OEM list price for the Product as set forth on Exhibit B. Both
the AltiGen Communications standard list price and the OEM's discount levels are
subject to change by AltiGen Communications from time to time in its sole
discretion upon [*****] written notice to OEM. The OEM list price shall not
exceed [*****] of the AltiGen Dealer list price. Orders requesting delivery
after receipt of notice of a price or discount change will be charged at the new
price or discount level.

          3.2   OEM PRICING. OEM is free to determine its own resale prices for
the Products. Although AltiGen Communications may publish suggested list prices,
these are suggestions,only and are not binding in any way.

                                      -2-

<PAGE>

          3.3   DEALER PRICING. OEM shall inform each of its Dealers that it is
free to determine its own retail prices and that, although AltiGen
Communications may publish suggested retail price lists, they are suggestions
only and are not binding in any way.

          3.4   INITIAL ORDER. Not required.

          3.5   PAYMENT. Upon approval of credit by AltiGen Communications,
payment for additional orders shall be due and payable within [*****] following
receipt of invoice or on such terms as may be otherwise specified in AltiGen
Communications' invoice. Invoices not paid when due shall accrue interest on an
annual basis from the date due until paid of [*****] on any outstanding balance,
or the maximum legal rate allowed by law, whichever is less. All Products
ordered in excess of any credit limit shall be paid for in acceptable currency
in advance of shipment, by a letter of credit drawn upon a bank acceptable to
AltiGen Communications, a bank cashier's check, or a bank wire transfer. AltiGen
Communications reserves the right to vary, change, or limit the amount or
duration of credit to be allowed to OEM, either generally or with respect to a
particular order. In the event AltiGen Communications does not extend credit to
OEM, payment for all purchases hereunder shall be made in advance of shipment
or, at AltiGen Communications' option, C.O.D.

          3.6   PRICE PROTECTION.

                (A)    OEM PRICE PROTECTION. AltiGen Communications shall notify
OEM of the effective date of a [*****] for any of the Products covered herein.
Inventory acquired by OEM from AltiGen Communications less than [*****] before
the effective date of the [*****] and not yet sold or under a contract for sale
will be granted price protection as set forth herein. [*****] To obtain price
protection, within [*****] of receipt of AltiGen Communications' notice of the
[*****], OEM shall provide to AltiGen Communications a written inventory report
showing by part number the quantity of each AltiGen Communications Product in
the OEM's inventory as of the effective date of the [*****]. [*****].

                (B)    DEALER PRICE PROTECTION. To obtain price protection for
its Dealers, OEM (i) shall provide to AltiGen Communications a written shipment
report showing by part number the quantity of each AltiGen Communications
Product shipped to a Dealer less than [*****] before the effective date of this
[*****], including the identity of each Dealer, the Products sold, and the date
of shipment and (ii) shall provide, or require its Dealers to provide, a written
Dealer inventory report showing by part number the quantity of each AltiGen
Communications Product in Dealer's inventory as of the effective date of the
[*****]. If OEM provides such reports to AltiGen Communications within [*****]
of OEM's receipt of AltiGen Communications' notice of a [*****], AltiGen
Communications shall credit the OEM's account for the [*****]. [*****]. [*****].

          3.7   STOCK ROTATION.

                (A)    INVENTORY BALANCING. Provided that the OEM issue a
simultaneous offsetting purchase order, OEM may, once during each quarter,
return for credit Product purchased in excess of the quarterly Purchase
Objectives for up to a maximum of [*****] of net dollar sales invoiced by
AltiGen Communications during the immediately preceding quarter. The credit
issued

                                      -3-

<PAGE>

for the returned inventory will be based on the [*****] at which the Products
were available to OEM during the period commencing with the date on which the
Product was purchased and ending on the date the Product was returned, and may
be used on a dollar-for-dollar basis solely to purchase additional Product
pursuant to the offsetting purchase order. The right to balance inventory
granted herein must be exercised by the last day of the second month of the
quarter. OEM shall submit a request for authorization to return Product for
inventory balancing which shall state the quantity of Product to be returned.
Upon receipt of such request, AltiGen Communications shall issue a return of
materials authorization number. Inventory returned under this section must be
accompanied by a return of materials authorization number assigned by AltiGen
Communications and (i) in merchantable condition, in its factory-sealed
packaging, or (ii) if the returned Product is returned because defective by
virtue of being in breach of the warranty provided for in the End User
Agreement, returned with the entire contents of such Product package. All
Product returned under this subsection (a) shall be returned within thirty (30)
days of the date of issuance of the return of materials authorization number.
OEM shall pay for the shipping of returned Products to AltiGen Communications
and AltiGen Communications shall pay for the shipping of replacement Product
sent to OEM.

                (B)    PRODUCT REFRESH. AltiGen Communications may, at its sole
discretion, modify the Products. For purposes of this Agreement, AltiGen
Communications shall have sole discretion as to whether a Product is deemed to
be a new version of an existing Product to be provided to OEM under the terms of
this Agreement or a new product requiring execution of an appendix to this
Agreement prior to Original Equipment Manufacture. Once a new version of a
Product covered by this Agreement begins shipping, OEM shall have thirty (30)
days from the first AltiGen Communications shipment date of the new version to
OEM, or from written notification by AltiGen Communications of the new version,
whichever is later, (i) to submit an offsetting purchase order for an equal
dollar-for-dollar value of the new version of the Product and (ii) to return
Product from the prior release from OEM's inventory that was shipped by AltiGen
Communications to OEM within the previous ninety (90) days. Such returns shall
be shipped at OEM's; expense. Returned Product will be exchanged by AltiGen
Communications on a dollar for dollar basis, proportional with any price
increase or decrease, with the new version of the Product and shipped to OEM at
AltiGen Communications expense. Product returned under this provision must be in
merchantable condition and in its original factory-sealed packaging. The right
to refresh Product under this subsection (b) shall be in addition to OEM's
inventory-balancing right under subsection (a) above.

                (C)    PRODUCT DISCONTINUATION. AltiGen Communications shall
provide OEM with thirty (30) days written notice prior to AltiGen
Communications' discontinuation of any Product. Upon receipt of such notice, OEM
shall have the right to return all discontinued Products purchased within
[*****] of the notice of discontinuation for a credit to OEM's account of the
Product's purchase price less any discounts or credits previously received.
Credits granted hereunder can only be used for future purchases of Products. The
right to return discontinued Product under this subsection (c) shall be in
addition to OEM's inventory-balancing right under subsection (a) above.

          3.8   OEM FINANCIAL CONDITION. OEM represents and warrants that it is
and at all times during the term of this Agreement shall remain in good
financial condition, solvent and able to pay its bills when due. OEM further
represents and warrants that it has and at all times during the

                                      -4-

<PAGE>

term of this Agreement shall retain the ability to order and pay for all Product
OEM is obliged to purchase under Exhibit C below. From time to time, on
reasonable notice by AltiGen Communications, OEM shall furnish financial reports
as necessary to determine OEM's financial condition.

          3.9   TAXES. Prices calculated in accordance with Exhibit B are
exclusive of all applicable taxes. OEM agrees to pay all taxes associated with
the marketing, Original Equipment Manufacture and delivery of the Products
ordered, including but not limited to sales, use, excise, added value and
similar taxes and all customs, duties or governmental impositions, but excluding
taxes on AltiGen Communications' net income. Any tax or duty AltiGen
Communications may be required to collect or pay upon the marketing or delivery
of the Products shall be paid by OEM and such sums shall be due and payable to
AltiGen Communications upon delivery. If claiming a tax exemption, OEM must
provide AltiGen Communications with valid tax exemption certificates at the time
of invoicing.

     4.   PRODUCT CHANGES

          4.1   STANDARD PRODUCTS- AltiGen Communications shall have the right,
in its sole discretion, without liability to OEM, to (a) change the Products
available on the Product List, (b) change the design, or discontinue developing,
producing, licensing or distributing any of the Products covered by this
Agreement, and (c) announce new products to which the terms and conditions of
this Agreement do not apply. The parties agree that additional Products may be
added to the Agreement by execution of an appendix to this Agreement setting
forth any special terms, conditions, modifications or deletions necessary for
the additional Products. Additional Products shall be deemed to be added to this
Agreement to the extent AltiGen Communications accepts any purchase orders for
Products not otherwise listed on the Product List.

          4.2   OEM MODIFICATIONS - OEM is free to make necessary changes to
correct defects or to enhance the functionality of AltiWare CE 2.1. AltiGen
Communications shall have the right to access all the changes, excluding
external applications, [*****] after the release of the modified products. OEM
assumes full responsibility for supporting any modification made.

     5.   ORDERS

          5.1   PROCEDURE. All orders for Products placed by OEM shall be in
writing, or if placed orally, shall be confirmed in writing within ten (10)
business days after such oral order.

          5.2   ACCEPTANCE OF ORDERS. All orders for Products by OEM shall be
subject to acceptance by AltiGen Communications and shall not be binding on
AltiGen Communications until the earlier of written confirmation or shipment,
and, in the case of acceptance by shipment, only as to the portion of the order
actually shipped.

          5.3   CONTROLLING TERMS. The terms and conditions of this Agreement
and of the applicable AltiGen Communications order confirmation pursuant to
Section 5.2 ("Acceptance Of Orders") above, shall apply to each order accepted
or shipped by AltiGen Communications hereunder. Any terms or conditions
appearing on the face or reverse side of any purchase order,

                                      -5-

<PAGE>

acknowledgment, or confirmation other than confirmation pursuant to Section 5:2
above that are different from or in addition to those required hereunder shall
not be binding on the parties, even if signed and returned, unless both parties
hereto expressly agree in a separate writing to be bound by such separate or
additional terms and conditions.

          5.4   ALTIGEN COMMUNICATIONS ORDER CANCELLATION. AltiGen
Communications reserves the right to cancel or suspend any orders placed by OEM
and accepted by AltiGen Communications, or to refuse or delay shipment thereof,
if OEM (a) fails to make any payment as provided herein or in any invoice, (b)
fails to meet credit or financial requirements established by AltiGen
Communications, or (c) otherwise fails to comply with the terms and conditions
of this Agreement.

          5.5   OEM ORDER CANCELLATION. Orders accepted by AltiGen
Communications may be canceled without penalty if written notice of cancellation
is given to AltiGen Communications and the notice is received by AltiGen
Communications at least [*****] prior to the scheduled shipment date. Orders
canceled less than [*****] prior to the scheduled shipment date will be subject
to a cancellation payment of [*****] of the invoice value of the canceled order.
In no event may OEM cancel any order or any portion of an order after shipment.

          5.6   PRODUCT AVAILABILITY. AltiGen Communications will use reasonable
efforts to fill orders for Products and meet requests for shipment dates subject
to Product availability and AltiGen Communications production and supply
schedules. Should orders for Products exceed AltiGen Communications' available
inventory, AltiGen Communications will allocate its available inventory and make
deliveries on a basis AltiGen Communications deems equitable, in its sole
discretion, and without liability to OEM on account of the method of allocation
chosen or its implementation. AltiGen Communications shall not be liable to OEM
or any third party for any damages due to AltiGen Communications' failure to
fill any orders or for any delay in delivery or error in filing any orders for
any reason whatsoever.

          5.7   OBLIGATION TO SHIP IN PRESENCE OF BREACH. Even where AltiGen
Communications accepts a purchase order, AltiGen Communications shall not be
obligated to ship Products if OEM is in arrears on payments owing to AltiGen
Communications or otherwise in breach of the Agreement at the time of the
scheduled shipment.

          5.8   DELIVERY. Within the United States and Canada, AltiGen
Communications will ship FOB Destination, unless otherwise agreed in writing, to
OEM's designated location or freight forwarder via ground transport. OEM may
change the designated locations by providing AltiGen Communications with written
notice of such change, and the notice is received by AltiGen Communications at
least fifteen (15) days prior to the estimated shipment dates. [For delivery
outside the United States and Canada, AltiGen Communications will select a
carrier to transport Products to the point identified in Section 5.9, will
prepay insurance and freight, and will add the cost of insurance and freight to
OEM's invoice.] The right to change a designated locations does not include any
right to drop ship to customer sites. AltiGen Communications shall select the
mode of shipment and the carrier unless OEM designates a carrier at the time an
order is placed. Notwithstanding section 5.9 below ("Risk of Loss"), OEM shall
be responsible for and shall pay all shipping, freight, and insurance charges.

                                      -6-

<PAGE>

          5.9   RISK OF LOSS. In the case of shipments to shipping destinations
within the United States, title to the Products, exclusive of the rights
retained under the Agreement in trademarks, patents, copyrights, trade names,
trade secrets and intellectual property, and all risk of loss or damage for any
Product shall pass to OEM upon delivery by AltiGen Communications to the OEM
designated location.

In the case of shipments to shipping designations outside the United States, OEM
and AltiGen Communications expressly agree that beneficial and legal title to,
ownership of, right to possession of, control over, and risks of loss and damage
to, the products shall remain with AltiGen Communications until the shipment
physically arrives at the port of entry in the importing country (or at a bonded
warehouse within the jurisdictional boundaries of Canada or Mexico if OEM
requests shipment to those countries). The time of payment, whether before or
after shipment, the place or medium of payment, the method of shipment, the
manner of consignment, whether to AltiGen Communications, or its agent, to OEM
or OEM's agent or any agent for both, or any document in relation to any sale
under the Agreement, shall in no way limit or modify the right of AltiGen
Communications as the legal and beneficial owner of the products, its right to
control and its right to possession of such goods until they physically arrive
at the port of entry of the importing country (or at a bonded warehouse within
the jurisdictional boundaries of Canada or Mexico if OEM requests shipment to
those countries). Any use of the term "C.P.T." in the Agreement shall apply only
to price and not to title. It is expressly understood that the foregoing shall
not be construed to mean that AltiGen Communications has merely retained bare
legal title for security purposes, but rather retains legal title and full
beneficial ownership until the shipment arrives at the port of entry in the
country of destination (or at a bonded warehouse within the jurisdictional
boundaries of Canada or Mexico if OEM requests shipment to those countries). If
OEM insures the shipment, insurance policies will protect the interest of
AltiGen Communications as the legal owner of the merchandise until title
transfers as set forth above.

          5.10  SECURITY INTEREST. In the event that AltiGen Communications
extends credit to the OEM for Product purchases, OEM grants AltiGen
Communications, as security for OEM's obligations hereunder, a purchase money
security interest in (i) the Products to be acquired from AltiGen Communications
under the Agreement or any extension of the Agreement and (ii) the proceeds of
such Products. Upon AltiGen Communications' request, OEM agrees to execute and
cause to be filed all instruments or documents (including without limitation
financing statements) necessary to perfect any such security interest and
further agree that, in any event, AltiGen Communications may file a copy of the
Agreement as a financing statement for such purpose.

     6.   ORIGINAL EQUIPMENT MANUFACTURE OBLIGATIONS

          6.1   DEALER LICENSE AGREEMENTS. For each Dealer to which OEM
distributes or markets Products, OEM shall execute a Dealer license agreement
("Dealer License Agreement") that contains terms and conditions consistent with
the provisions of this Agreement, that is at least as restrictive as this
Agreement and that requires the Dealer to cause each copy of the Product
distributed to End-Users by such Dealer to be subject to an End-User Agreement.
Upon AltiGen Communications request, from time to time OEM shall provide to
AltiGen Communications a copy of the then current version of the Dealer License
Agreement.

                                      -7-

<PAGE>

          6.2   BUSINESS PLAN.  Not required.

          6.3   PURCHASE OBJECTIVES; INVENTORY.  Not required.

                (A)    INCREMENTAL BUSINESS (OEM) acknowledges that the purchase
objectives and discounts specified are based upon (OEM's) and AltiGen's shared
expectations that (OEM's) sales of Licensed Works:

                       1.     will substantially increase the overall
worldwide market demand for the Licensed Works on a unit basis;

                       2.     will result in significant incremental uses of
Licensed Works for High Availability System Units; and

                       3.     will be based upon a value added approach. (OEM)
agrees to add value through hardware enhancements, software drivers, utilities,
applications, toolkits, ease of installation, ease of use, ease of operations,
increased dependability, and/or integration of the parties products and
services.

          6.4   ROYALTIES AND DISCOUNTS (A) For each sold copy of modified
AltiWare CE 2.1, (OEM) agrees to pay to AltiGen, the agreed price of AltiGen
manufactured AltiWare CE 2.1.

          6.5   FORECASTS. (OEM) agrees to provide AltiGen within (120) days of
the Effective Date, an annual forecast showing the expected sales based upon
(OEM) fiscal year, and a quarterly forecast, based upon (OEM) fiscal quarters.
Each year thereafter, (OEM) shall provide annual forecasts and quarterly
forecasts in the fourth quarter of the previous year. AltiGen agrees to provide
to (OEM) product type, user mix, media format and gross geographic segmentation
information in order to assist (OEM) in accurately determining its annual and
fiscal forecasts.

          6.6   ROYALTY AND PAYMENT REVIEWS. (OEM) may request a review of its
aggregate royalty and/or payment run rate for the purpose of changing its
Royalty Rates or Discount Rates. Provided (OEM) has reached its royalty and/or
payment forecast for the previous quarter and is forecasting within the range of
the new Royalty Rates and/or Discount Rates from Table 1 associated with that
Royalty Rate and/or Discount Rate range and to be effective the first day of the
(OEM) quarter. Within [*****] of the effective date of the new Royalty Rates
and/or Discount Rates, (OEM) shall pay to AltiGen a non-refundable advance equal
to [*****] of the new annual commitment forecasted by (OEM).

          6.7   FAILURE TO ACHIEVE COMMITMENT. If at the end of any calendar
year (OEM) has not paid payments to AltiGen equal to or greater than annual
commitment forecasted for that calendar year, the Discount Rates which shall
apply for the subsequent calendar year of this project statement shall
automatically be changed to reflect the Discount Rates associated with the
actual payments made by (OEM) to AltiGen.

                                      -8-

<PAGE>

          6.8   POINT OF SALE REPORTS. During the term of this Agreement, OEM
shall provide to AltiGen Communications a monthly report in EDI format which
list the versions of Licensed Works licensed or sold directly by (OEM) to
acquiring entities containing the following information: (i) the quantities of
Licensed Works sold; the royalties and/or payments due and/or paid to AltiGen
for the Licensed Works sold and/or sublicensed (ii) the submitter account
number, (iii) the destination company's (Dealer's or end user's) name, (iv) the
"ship to" destination zip code (v) the part number of the Products shipped and
(vi) date of sale or distribution. Such report, with respect to a calendar
month, shall be delivered to AltiGen Communications no later than the tenth
(10th) day of the following calendar month.

          6.9   CUSTOMER SATISFACTION. OEM agrees that the Products marketed
under this Agreement are technically complex and require high-quality,
individualized pre-marketing and postmarketing support. This support is
necessary to achieve and maintain high customer satisfaction. Therefore, OEM
agrees that high customer satisfaction is a condition of Original Equipment
Manufacture authorization by AltiGen Communications. The Original Equipment
Manufacture channels established by AltiGen Communications, and the obligations
placed on OEMs, exist to ensure high customer satisfaction. OEM agrees to market
the Products only in accordance with this Agreement. In addition, in order to
assure high customer satisfaction, OEM agrees to:

          o    report to AltiGen Communications promptly and in writing all
               suspected and actual problems with any Product;

          o    maintain a shipment report identifying for each Dealer, the
               Products sold, the date of sale, and each Product's serial
               number;

          o    retain all shipment reports for five years after the date of
               sale, and assist AltiGen Communications, upon request, in tracing
               a Product to a Dealer, in order to distribute critical Product
               information, locate a Product for safety reasons, or discover
               unauthorized marketing or infringing acts;

          o    conduct business in a manner which reflects favorably at all
               times on the Products, goodwill and reputation of AltiGen
               Communications;

          o    avoid deceptive, misleading or unethical practices which are or
               might be detrimental to AltiGen Communications or its products;

          o    refrain from making any false or misleading representations with
               regard to AltiGen Communications or its products; and

          o    refrain from making any representations, warranties or guarantees
               to customers or to the trade with respect to the specifications,
               features or capabilities of the Products that are inconsistent
               with the literature distributed by AltiGen Communications.

                                      -9-

<PAGE>

          6.10  PROMOTIONAL EFFORTS. OEM shall use its best efforts to market
and distribute the Products to Dealers in the Territory. OEM may advertise the
Products in advertising media of OEM's choice, provided that the primary
audience or circulation is located in the Territory. OEM shall make full use of
all promotional material supplied by AltiGen Communications and make available
literature and other information that AltiGen Communications requires to be
transmitted to such Dealers. In all advertising and promotion of the Products,
OEM shall comply with AltiGen Communications standard cooperative advertising
policies as specified from time to time by AltiGen Communications.

          6.11  DEMONSTRATION SYSTEM. OEM shall maintain a demonstration system
capable of supporting the most technically advanced Products. OEM shall use such
demonstration system both to facilitate its ability to fulfill its Dealer
support obligations, and to support its sales efforts.

     7.   TRAINING

          7.1   To assist OEM with the sales and support of the Products,
AltiGen Communications may provide training to OEM for any new Product releases
during the term of this Agreement, upon AltiGen Communications reasonable
request and at OEM's facility, and OEM shall use best efforts to have OEM's
inside and outside sales or technical force present for such training sessions.

          7.2   INITIAL TRAINING.  Not required.

          7.3   ADDITIONAL TRAINING.  Not required.

          7.4   OEM PERSONNEL. OEM shall train and maintain a sufficient number
of capable technical and sales personnel to serve the demands of Dealers and
end-users for the Products, for service and support of the Products, call on all
Dealers with reasonable frequency and answer promptly all Dealer inquiries or
requests for information regarding the Products. OEM and its staff shall develop
and maintain sufficient knowledge of the industry, the Products, and competitive
offerings (including specifications, features, and functions) so as to be able
to demonstrate and support the Products for Dealers. OEM shall provide all
Dealers with technical support and other assistance appropriate for the
promotion, marketing, and Original Equipment Manufacture of the Products. OEM
shall attend AltiGen Communications Original Equipment Manufacture meetings.

     8.   SUPPORT AND MAINTENANCE

          8.1   AltiGen Communications shall provide central site support to OEM
(but not its dealers, and not end users) with the support and maintenance
described in Exhibit D hereto free of charge during the term of this agreement.
AltiGen agrees to correct all errors, defects and malfunctions in AltiGen
products and isolated thereto, and in the user documentation arising during the
term of the agreement. AltiGen Communications may provide dealers and end users
with support and maintenance under a separate agreement.

                                      -10-

<PAGE>

          8.2   (OEM) will assume responsibility for repairing, maintaining, and
supporting the (OEM) Products. This support will include competent technical
advice to end users. AltiGen will continue to offer repair and maintenance
services for the QUANTUM Boards under Amendment No. __ to the AltiGen Hardware
Products Repair Agreement between AltiGen and (OEM).

          8.3   DEVELOPMENT SUPPORT: Not applicable.

          8.4   (OEM) PRODUCTS IDENTIFICATION. (OEM)'s packaging (containers)
and any advertisements or materials relating to the distribution of the (OEM)
Products will clearly identify (OEM) as the manufacturer of the (OEM) Products.
All (OEM) Products must contain a serial number assigned under a serialization
plan that differs substantially from the serialization method adopted by
AltiGen.

          8.5   DOCUMENTATION. AltiGen shall provide to OEM the applicable
product literature, training materials, technical documentation and the end-user
manuals for AltiGen products formatted in the version of Adobe FrameMaker or
Microsoft Word used to generate said documents by AltiGen at the time of
delivering products and each subsequent Release thereof. AltiGen hereby grants
to OEM, and OEM accepts, a non-exclusive, royalty-free license under AltiGen's
pre-existing copyrights in the AltiGen products End User documentation to edit
reformat, rewrite and reissue the documentation as a necessary in connection
with OEM's marketing and distribution of AltiGen products for OEM and AltiGen
products. Except as otherwise provided herein, the responsibility for and
expense associated with any publishing or distribution of End User documentation
shall be assumed by OEM.

     9.   TRADEMARKS AND CONFIDENTIAL INFORMATION

          9.1   TRADEMARKS. AltiGen Communications shall have and retain sole
ownership of AltiGen's logo, trade names and trademarks ("Trademarks"),
including the goodwill pertaining thereto. AltiGen Communications hereby grants
to OEM the right to use and display the Trademarks solely in connection with and
solely to the extent reasonably necessary for the marketing, Original Equipment
Manufacture, and support of the Products within the Territory in accordance with
the terms and conditions of this Agreement. OEM shall not do or suffer to be
done any act or thing that would impair AltiGen's rights in its Trademarks or
damage the reputation for quality inherent in the Trademarks. AltiGen's has the
right to take all action which it deems necessary to ensure that the advertising
and promotional materials related to the Products utilized by OEM are consistent
with the reputation and prestige of the Trademarks. OEM shall market,
distribute, and support the Products only under the Trademarks, and not any
other trademark or logo. OEM shall not use the Trademarks or any other
trademarks or trade names of AltiGen Communications or any word, symbol, or
design confusingly similar thereto, as part of its corporate name, or as part of
the name of any product of OEM. OEM shall not (i) remove, alter or overprint the
Products' copyright notices, trademarks, and logos, or packaging, (ii) attach
any additional trademarks to the Products without AltiGen's prior written
consent or (iii) affix any of the Trademarks to any non-AltiGen Communications
products. OEM agrees that any goodwill which accrues because of OEM's use of the
Trademarks shall become AltiGen's property. OEM further agrees not to contest
AltiGen's Trademarks or tradenames, or to make application for registration of

                                      -11-

<PAGE>

any AltiGen Communications Trademarks or tradenames. OEM shall incorporate the
following copyright notice on AltiGen products for OEM or derivative works
thereof, used, duplicated or sublicensed by OEM:

   [OEM's Software trade name] Is a OEM version of AltiGen products (Circle R)

                  (C) Copyright AltiGen, Inc. 1"3. M, 1998, IM

                               All Rights Reserved

OEM agrees to incorporate all AltiGen copyright, trademark and proprietary
notices to manuals documentation, and diskette labels of the AltiGen products
for OEM, and to make any changes reasonably required to protect AltiGen's
intellectual property rights. OEM reserves the right to rename AltiGen products
for OEM according to OEM's marketing needs and strategy; however, AltiGen's
copyright and proprietary notices shall be conspicuously displayed.

          9.2   CONFIDENTIAL INFORMATION. During the term of this Agreement, and
for a period of three (3) years thereafter, OEM will maintain in confidence any
confidential or proprietary information of AltiGen Communications disclosed to
it by AltiGen Communications including, without limitation, any information
regarding scientific, engineering, manufacturing, marketing, business plan,
financial or personnel matter relating to AltiGen Communications, whether in
oral, written, graphic or electronic form ("Confidential Information"). OEM will
not use, disclose or grant use of such Confidential Information except as
expressly authorized by AltiGen Communications. To the extent that disclosure is
authorized by AltiGen Communications, OEM will obtain prior agreement from its
employees, agents or consultants to whom disclosure is to be made to hold in
confidence and not make use of such information for any purpose other than those
permitted by AltiGen Communications. OEM will use at least the same standard of
care as it uses to protect its own Confidential Information to ensure that such
employees, agents or consultants do not disclose or make any unauthorized use of
such Confidential Information. OEM will promptly notify AltiGen Communications
upon discovery of any unauthorized use or disclosure of the Confidential
Information.

          9.3   EXCEPTIONS. The obligations of confidentiality contained in
Section 9.2 will not apply to the extent that it can be established by OEM by
competent proof that such Confidential Information:

                (A)    was already known to OEM, other than under an obligation
of confidentiality, at the time of disclosure by AltiGen Communications;

                (B)    was generally available to the public or otherwise part
of the public domain at the time of its disclosure to OEM;

                (C)    became generally available to the public or otherwise
part of the public domain after its disclosure and other than through any act or
omission of OEM in breach of this Agreement;

                                      -12-

<PAGE>

                (D)    was disclosed to OEM, other than under an obligation of
confidentiality, by a third party who had no obligation to the disclosing party
not to disclose such information to others.

     10.  INDEMNIFICATION

          10.1  ALTIGEN COMMUNICATIONS INDEMNITY. Subject to the limitations set
forth herein below, AltiGen Communications shall defend OEM with respect to any
claim, suit or proceeding brought against OEM to the extent it is based upon a
claim that any Product sold pursuant to this Agreement infringes upon any U.S.
patent, U.S. trademark, U.S. copyright or U.S. trade secret of any third party;
provided, however, that OEM (i) promptly notifies AltiGen Communications in
writing of such claim, suit or proceeding; (ii) gives AltiGen Communications the
right to control and direct investigation, preparation, defense and settlement
of any claim, suit or proceeding; and (iii) gives assistance and full
cooperation for the defense of same, and, further provided, that AltiGen's
liability with respect to portions of Products provided by or licensed from
third parties will be limited to the extent AltiGen Communications is
indemnified by such third parties. AltiGen Communications shall pay any
resulting damages, costs and expenses finally awarded to a third party, but
AltiGen Communications shall not be liable for such amounts, or for settlements
incurred by OEM, without AltiGen's prior written authorization. If a Product is,
or in AltiGen's opinion might be, held to infringe as set forth above, AltiGen
Communications may, at its option, replace or modify such Product so as to avoid
infringement, or procure the right for OEM to continue the use and resale of
such Product. If neither of such alternatives is, in AltiGen's opinion,
reasonably possible, the infringing Product shall be returned to AltiGen
Communications, and AltiGen's sole liability, in addition to its obligation to
reimburse any awarded damages, costs and expenses set forth above, shall be to
refund the purchase price paid for such Products by OEM.

          10.2  EXCLUSIONS. The provisions of the foregoing indemnity shall not
apply with respect to any instances of alleged infringement based upon or
arising out of the use of such Products in any manner for which the Products
were not designed, or for use of Products other than the uses and Original
Equipment Manufactures designated by AltiGen Communications, for use of any
Product that has been modified by OEM or any third party, or for use of any
Product in connection with or in combination with any equipment, devices or
software that have not been supplied by AltiGen Communications. Notwithstanding
any other provisions hereof, the foregoing indemnity shall not apply with
respect to any infringement based on OEM's activities occurring subsequent to
its receipt of notice of any claimed infringement unless AltiGen Communications
shall have given OEM written permission to continue to market and distribute the
allegedly infringing Product.

          10.3  ENTIRE LIABILITY AND LIMITATION. THE FOREGOING SECTIONS 10.1
AND 10.2 STATE THE SOLE AND EXCLUSIVE REMEDY OF OEM AND THE ENTIRE LIABILITY AND
OBLIGATION OF ALTIGEN COMMUNICATIONS WITH RESPECT TO INFRINGEMENT OR CLAIMS OF
INFRINGEMENT OF ANY PATENT, COPYRIGHT, TRADE SECRET OR OTHER INTELLECTUAL
PROPERTY RIGHT BY THE PRODUCTS OR ANY PART THEREOF. IN NO EVENT SHALL ALTIGEN'S
LIABILITY UNDER SECTION 10.1 FOR INDEMNITY OF OEM WITH RESPECT TO INFRINGEMENT
OF A PATENT, COPYRIGHT, TRADEMARK OR TRADE SECRET EXCEED THE AMOUNTS PAID TO

                                      -13-

<PAGE>

ALTIGEN COMMUNICATIONS BY OEM UNDER THIS AGREEMENT IN THE PREVIOUS CALENDAR YEAR
FOR THE PRODUCTS DISTRIBUTED BY OEM PURSUANT TO THIS AGREEMENT.

          10.4  INDEMNITY BY OEM. OEM AGREES TO INDEMNIFY AND HOLD ALTIGEN
COMMUNICATIONS HARMLESS FROM ANY CLAIMS, SUITS, PROCEEDINGS, LOSSES,
LIABILITIES, DAMAGES, COSTS AND EXPENSES (INCLUSIVE OF ALTIGEN'S REASONABLE
ATTORNEYS' FEES) MADE AGAINST OR INCURRED BY ALTIGEN COMMUNICATIONS AS A RESULT
OF NEGLIGENCE, MISREPRESENTATION, OR ERROR OR OMISSION ON THE PART OF OEM OR
REPRESENTATIVE OF OEM. OEM SHALL BE SOLELY RESPONSIBLE FOR, AND SHALL INDEMNIFY
AND HOLD ALTIGEN COMMUNICATIONS HARMLESS FROM, ANY CLAIMS, WARRANTIES OR
REPRESENTATIONS MADE BY OEM OR OEM'S EMPLOYEES OR AGENTS WHICH DIFFER FROM THE
WARRANTY PROVIDED BY ALTIGEN COMMUNICATIONS IN ITS END USER AGREEMENT.

     11.  WARRANTY

          11.1  ALTIGEN COMMUNICATIONS WARRANTY. AltiGen Communications warrants
the Products TO END USERS ONLY pursuant to the terms and conditions of the End
User Agreement and no warranty is extended to the OEM.

          11.2  LIMITATIONS AND DISCLAIMER. EXCEPT FOR THE EXPRESS WARRANTY SET
FORTH IN THE END USER AGREEMENT, ALTIGEN COMMUNICATIONS EXPRESSLY DISCLAIMS ALL
WARRANTIES EXPRESSED OR IMPLIED RELATING TO THE PRODUCTS, AND FURTHER EXPRESSLY
EXCLUDES ANY WARRANTY OF NON-INFRINGEMENT, FITNESS FOR A PARTICULAR PURPOSE OR
MERCHANTABILITY.

          11.3  NO PERSON IS AUTHORIZED TO MAKE ANY OTHER WARRANTY OR
REPRESENTATION CONCERNING THE PERFORMANCE OF THE PRODUCTS OTHER THAN AS PROVIDED
IN THE END USER AGREEMENT. OEM SHALL MAKE NO OTHER WARRANTY, EXPRESS OR IMPLIED,
ON BEHALF OF ALTIGEN COMMUNICATIONS.

          11.4  OEM'S WARRANTY. OEM hereby represents and warrants to AltiGen
Communications that neither this Agreement (or any term hereof) nor the
performance of or exercise of rights under this Agreement, is restricted by,
contrary to, in conflict with, ineffective under, requires registration or
approval or tax withholding under, or affects AltiGen's intellectual property
rights (or the duration thereof) under, or will require any compulsory licensing
under, any law or regulation of any organization, country, group of countries or
political or governmental entity to which OEM is subject.

     12.  LIMITATION ON LIABILITY

          12.1  WAIVER OF CONSEQUENTIAL DAMAGES. IN NO EVENT WILL ALTIGEN
COMMUNICATIONS BE LIABLE TO OEM OR ANY THIRD PARTY FOR ANY INDIRECT,

                                      -14-

<PAGE>

SPECIAL OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION ANY LOSS OF
INCOME, LOSS OF PROFITS OR LOSS OF DATA, EVEN IF ALTIGEN COMMUNICATIONS HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, ARISING OUT OF OR IN CONNECTION WITH
THE GRANT OF THE LICENSE HEREUNDER.

          12.2  LIMITATION OF LIABILITY. ALTIGEN'S TOTAL LIABILITY TO OEM OR ANY
THIRD PARTY HEREUNDER SHALL NOT EXCEED THE AMOUNT PAID FOR THE PRODUCTS DURING
THE [*****] PERIOD IMMEDIATELY PRECEDING THE DATE ON WHICH THE CLAIM GIVING RISE
TO SUCH LIABILITY AROSE.

          12.3  THIRD PARTY CLAIMS. AltiGen Communications shall not be liable
for any claim by OEM based on any third party claim, except as stated in Section
10 of the Agreement.

     13.  TERM AND TERMINATION

          13.1  TERM. Subject to the provisions of Sections 13.2 and 13.3 below,
this Agreement is valid for a term of one year and shall be renewed
automatically for additional one year terms provided that each party shall have
the right to terminate this Agreement for convenience upon ninety (90) days
written notice prior to the end of the initial term or any subsequent term of
the Agreement.

          13.2  TERMINATION FOR CAUSE. AltiGen Communications may terminate the
Agreement for cause if OEM fails to meet its payment obligations under the
Agreement and such failure continues for ten (10) days following receipt of
written notice from AltiGen Communications. In addition, either party may
terminate this Agreement for cause upon thirty (30) days written notice to the
other party if such other party materially breaches this Agreement and such
material breach is not cured within the thirty (30) day period following
delivery of notice. Either party shall have the right to terminate this
Agreement immediately in the event the other party terminates its business, or
becomes subject to any bankruptcy or insolvency proceeding under Federal or
State statute, and such petition is not dismissed within sixty (60) days.

          13.3  EFFECT OF TERMINATION. For a period of sixty (60) days following
termination of this Agreement, OEM may distribute any Products in OEM's
possession at the time of termination, provided, however, that if AltiGen
Communications has terminated the Agreement pursuant to Section 13.2, OEM's
right to distribute the Products shall immediately terminate. Following any
permitted Original Equipment Manufacture, OEM shall return to AltiGen
Communications or, at AltiGen's request, destroy the copies of the Products and
Documentation then in its possession. In addition, OEM shall be entitled to
retain one (1) copy of the Product following termination solely for the purposes
of providing support to Dealers and End Users. AltiGen Communications shall
apply the value of any returned Products to any outstanding credit balance in
OEM's account, but shall not otherwise be required to refund OEM for the value
of the returned Products. The termination of this Agreement shall not act to
terminate the licenses granted to Dealers or End Users pursuant to this
Agreement.

                                      -15-
<PAGE>

          13.4  ACCELERATION OF PAYMENT. Upon termination of the Agreement by
AltiGen Communications for cause, the due dates of all outstanding invoices for
Products will automatically be accelerated so that they become due and payable
on the effective date of termination, even if longer terms had been provided
previously. All orders or portions of orders remaining unshipped as of the
effective date of such termination shall automatically be canceled.

     14.  MISCELLANEOUS

          14.1  NONEXCLUSIVITY. AltiGen Communications retains the right to
market, distribute, and support the Products in the Territory directly to or
through any person or entity on any terms deemed desirable by AltiGen
Communications in its sole discretion.

          14.2  MODIFICATION AND AMENDMENT. Except with respect to Exhibit B
hereof, this Agreement may be modified or amended only in writing by the consent
of both parties.

          14.3  SURVIVAL. Sections 7.6, 9.2, 9.3, 10, 11, 12, 13.3, 13.4 and 14
shall survive termination of this Agreement for three (3) years.

          14.4  GOVERNING LAW. This Agreement is made in accordance with and
shall be governed and construed under the laws of the State of California, as
applied to agreements executed and performed entirely in California by
California residents. OEM agrees to submit to the jurisdiction of the Northern
District of California, San Jose Division, or the Santa Clara County Superior
Court, as appropriate, and hereby waives any objections to the jurisdiction and
venue of such courts.

          14.5  TOLL FRAUD. Dealer is forbidden from stating or implying that
AltiGen Products provide immunity from fraudulent intrusion (Toll Fraud). Dealer
must use this language on all sales materials and contract involving AltiGen
Products.

          14.6  NOTICES. All notices, demands, or consents required or permitted
under this Agreement shall be in writing and shall be delivered personally or
sent by a national overnight courier service or by registered or certified,
return receipt requested mail to the other party at the addresses first set
forth above. All notices, demands, or consents shall be deemed effective upon
personal delivery or three (3) days following dispatch via first class mail or
one (1) business day following deposit with any national overnight courier
service in accordance with this section.

          14.7  NO PARTNERSHIP OF JOINT VENTURE. No agency, employment,
partnership, joint venture, or other joint relationship is created hereby, it
being understood that OEM and AltiGen Communications are independent contractors
vis-a-vis one another and that neither has any authority to bind the other in
any respect whatsoever.

          14.8  FORCE MAJEURE. Neither party shall be deemed to be in default of
or to have breached any provision of this Agreement as a result of any delay,
failure in performance, or interruption of service resulting directly or
indirectly from acts of God, acts of civil or military authority, civil
disturbance, war, strikes or other labor disputes, fires, transportation
contingencies, laws, regulations, acts or orders of any government agency or
official thereof, other catastrophes or any other circumstances beyond the
party's reasonable control.

                                      -16-
<PAGE>

          14.9    EXPORT CONTROL. The parties acknowledge that the Products may
be subject to the export control laws of the United States of America, including
the U.S. Bureau of Export Administration regulations, and hereby agree to obey
any and all such laws. The parties agree to comply with the U.S. Foreign Corrupt
Practices Act of 1977, as amended, and with all applicable foreign laws relating
to the use, importation, licensing or Original Equipment Manufacture of the
Products.

          14.10   ASSIGNMENT. Neither party may assign this Agreement or any of
its rights, duties or obligations under this Agreement to any third party
without the other party's prior written consent, which consent shall not be
unreasonably withheld. Notwithstanding the foregoing, either party may assign
its rights and delegate its obligations under this Agreement without the consent
of the other party to a purchaser of all or substantially all of its voting
stock or capital assets or to an entity with which such party merges or is
consolidated.

          14.11   SEVERABILITY AND WAIVER. In the event any provision of this
Agreement is held to be invalid or unenforceable, the valid or enforceable
portion thereof and the remaining provisions of this Agreement will remain in
full force and effect. Any waiver (express or implied) by any party of any
default or breach of this Agreement shall not constitute a waiver of any other
or subsequent default or breach.

          14.12   ENTIRE AGREEMENT. This Agreement and all Exhibits referred to
herein embody the entire understanding of the parties with respect to the
subject matter hereof and shall supersede all previous communications,
representations or understandings, either oral or written, between the parties
relating to the subject matter hereof.

          14.13   HEADINGS. The section headings appearing in this Agreement are
inserted only as a matter of convenience and in no way define, limit, construe
or describe the scope or intent of any such section nor in any way affect this
Agreement.

          14.14   PARTIES ADVISED BY COUNSEL. This Agreement has been negotiated
between unrelated parties who are sophisticated and knowledgeable in the matters
contained in this Agreement and who have acted in their own self interest. In
addition, each party has been represented by legal counsel. The provisions of
this Agreement shall be interpreted in a reasonable manner to effect the purpose
of the parties, and this Agreement shall not be interpreted or construed against
any party to this Agreement because that party or any attorney or representative
for that party drafted this Agreement or participated in the drafting of this
Agreement.

                                      -17-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement, including the Exhibits hereto, and incorporated by reference, as of
the t first above written above.

ALTIGEN COMMUNICATIONS                    OEM

By:     /s/ Gilbert Hu                    By:    /s/ Leo Liu
    ---------------------------------         ----------------------------------

Name:       Gilbert Hu                    Name:      Leo Liu
      -------------------------------           --------------------------------

Title:      President & CEO               Title:
       ------------------------------            -------------------------------

ALTIGEN COMMUNICATIONS RESERVES THE RIGHT TO MAKE MODIFICATIONS TO THIS
AGREEMENT WHEN THE NEED ARISES, BY 1/31/99.

                                      -18-
<PAGE>

                ALTIGEN COMMUNICATIONS, INC. - END USER AGREEMENT

                 NOTICE - READ THIS BEFORE OPENING THIS PACKAGE,

                INSTALLING THE PC HARDWARE OR USING THE SOFTWARE

         OPENING THIS PACKAGE, INSTALLING THE PC HARDWARE OR USING THE SOFTWARE
INDICATES YOUR ACCEPTANCE OF THESE TERMS AND CONDITIONS. READ ALL OF THE TERMS
AND CONDITIONS OF THIS LICENSE AGREEMENT PRIOR TO OPENING THIS PACKAGE OR USING
THE SOFTWARE. IF YOU DO NOT ACCEPT THESE TERMS, YOU MUST RETURN THIS PACKAGE
UNOPENED WITHIN FIVE (5) DAYS OF OBTAINING THE PACKAGE, WITH YOUR RECEIPT, AND
YOUR MONEY WILL THE RETURNED.

                                     * * * *

         PLEASE NOTE THAT YOU MAY NOT USE, COPY, MODIFY OR TRANSFER THE PROGRAM,
THE PC HARDWARE OR DOCUMENTATION OR ANY COPY, EXCEPT AS EXPRESSLY PROVIDED IN
THIS AGREEMENT.

         LICENSE. This software program (the "Program") and the documentation
(the "Documentation") are licensed, not sold, to you. The term "Program" shall
also include any updates of the Program licensed to you by AltiGen
Communications, Inc. ("AltiGen"). Subject to the terms of this agreement you
have a non-exclusive and nontransferable right to use the Program, Personal
Computer Card (the "PC Hardware") and Documentation. You agree to use your best
efforts to prevent and protect the contents of the Program, the PC Hardware and
Documentation from unauthorized disclosure or use. AltiGen and its licensors
reserve all rights not expressly granted to you. AltiGen's licensors are the
intended third party beneficiaries of this agreement and have the express right
to rely upon and directly enforce the terms set forth herein.

         LIMITATIONS ON USE. You may not rent, lease, sell or otherwise transfer
or distribute copies of the Program, the PC Hardware or Documentation to others.
You may not modify or translate the Program, the PC Hardware or the
Documentation without the prior written consent of AltiGen. You may not reverse
assemble, reverse compile or otherwise attempt to create the source code from
the Program or the PC Hardware. You may not use AltiGen's name or refer to
AltiGen directly or indirectly in any papers, articles, advertisements, sales
presentations, news releases or releases to any third party without the prior
written approval of AltiGen for each such use. You may not release the results
of any performance or functional evaluation of any Program to any third party
without prior written approval of AltiGen for each such release.

         BACKUP AND TRANSFER. You may make one copy of the Program for backup
purposes if AltiGen's copyright notice is included. You may not sublicense,
assign, delegate, rent, lease, time-share or otherwise transfer this license or
any of the related rights or obligations for any reason. Any attempt to make any
such sublicense, assignment, delegation or other transfer by you shall be

<PAGE>

void. You may physically transfer the Program from one computer to another
provided that you do not retain any copies of the Program, including any copies
stored on a computer.

         TOLL FRAUD. Although this software provides passwords and blocking
options for controlling telephone use, the software does not provide a security
system that would prevent unauthorized use. AltiGen does not warrant that the
software will prevent, or can prevent, unauthorized and/or unlawful use. AltiGen
will have no responsibility and will not be liable for any unauthorized or
unlawful use, including without limitation long distance charges, criminal or
civil liabilities, or damages.

         COPYRIGHT AND PATENT. The Program, the PC Hardware and related
Documentation are copyrighted and patented by AltiGen and its licensors. You may
make one copy of the Documentation and print one copy of any on-line
documentation or other material provided to you in electronic form. Any and all
other copies of the Program and any copy of the Documentation made by you are in
violation of this license.

         OWNERSHIP. You agree that the Program and Documentation belong to
AltiGen and its licensors. You agree that you neither own nor hereby acquire any
claim or right of ownership to the Program and Documentation or to any related
patents, copyrights, trademarks or other intellectual property. You own only the
magnetic or other physical media (including PC Hardware) on which the Program
and related Documentation are recorded or fixed. AltiGen and its licensors
retain all right, title and interest in and to the Documentation and all copies
and the Program recorded on the original media and all subsequent copies of the
Program at all times, regardless of the form or media in or on which the
original or other copies may subsequently exist. This license is not a sale of
the original or any subsequent copy. All content accessed through the Program is
the property of the applicable content owner and may be protected by applicable
copyright law. This license gives you no rights to such content.

         TERM AND TERMINATION. This license is effective until terminated. You
may terminate this license at any time by destroying the Program and
Documentation and the permitted backup copy. This license automatically
terminates if you fail to comply with its terms and conditions. You agree that,
upon such termination, you will either destroy (or permanently erase) all copies
of the Program and Documentation, or return the original Program and
Documentation to AltiGen, together with any other material (PC Hardware) you
have received from AltiGen in connection with the Program.

         LIMITED WARRANTY. AltiGen warrants the media on which the Program is
furnished to be free from defects in materials and workmanship under normal use
for 30 days from the date that you obtain the Program. AltiGen warrants the PC
Hardware for a period of one year from the date of consumer purchase to be free
from defects in materials and workmanship. EXCEPT FOR THIS LIMITED WARRANTY,
ALTIGEN AND ITS LICENSORS PROVIDE THE PROGRAM, THE PC HARDWARE AND THE
DOCUMENTATION "AS IS" WITHOUT WARRANTY OF ANY KIND EITHER EXPRESS, IMPLIED OR
STATUTORY, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. Some states do not allow
the exclusion of implied warranties, so the

                                      -2-
<PAGE>

above exclusion may not apply to you. This warranty gives you specific legal
rights and you may also have other rights which vary from state to state.

         LIMITATION OF REMEDIES. AltiGen and its licensors' entire liability and
your exclusive remedy in connection with the Program, the PC Hardware and the
Documentation shall be that you are entitled to return the defective media
containing the Program together with the PC Hardware and Documentation to the
merchant. At the option of the merchant, you may receive replacement media
containing the Program, the PC Hardware and Documentation that conforms with the
limited warranty or a refund of the amount paid by you. IN NO EVENT WILL ALTIGEN
OR ITS LICENSORS BE LIABLE FOR ANY INDIRECT DAMAGES OR OTHER RELIEF ARISING OUT
OF YOUR USE OR INABILITY TO USE THE PROGRAM INCLUDING, BY WAY OF ILLUSTRATION
AND NOT LIMITATION, LOST PROFITS, LOST BUSINESS OR LOST OPPORTUNITY, OR ANY
SPECIAL, INCIDENTAL OR CONSEQUENTIAL OR EXEMPLARY DAMAGES, INCLUDING LEGAL FEES,
ARISING OUT OF SUCH USE OR INABILITY TO USE THE PROGRAM, EVEN IF ALTIGEN, ITS
LICENSORS OR AN AUTHORIZED ALTIGEN DEALER, DISTRIBUTOR OR SUPPLIER HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, OR FOR ANY CLAIM BY ANY OTHER PARTY.
Some states do not allow the exclusion or limitation of incidental or
consequential damages so the above limitation or exclusion may not apply to you.

         TOLL FRAUD. AltiGen will not accept liability for any damages including
long distance charges, which result from unauthorized and/or unlawful use. By
opening this package or using this software, you agree to indemnify AltiGen of
all such damages.

         This license will be governed by the laws of the State of California as
applied to transactions taking place wholly within California between California
residents.

         U.S. GOVERNMENT END USERS.  The Program is a "commercial item," as that
term is defined at 48 C.F.R. 12.101 (Oct. 1995) consisting of "commercial
computer software" and "commercial computer software documentation," as such
terms are used in 48 C.F.R. 12.212 (Sept. 1995). Consistent with 48 C.F.R.
12.212 and 48 C.F.R. 227.7202-1 through 227.7202-4 (June 1995), all U.S.
Government End Users acquire the Program with only those rights set forth
herein.

                                       -3-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}]]