Document:

exv10w3

Exhibit 10.3

ADD ON CONTENT ADDENDUM

TO CONFIDENTIAL LICENSE AGREEMENT

FOR THE WII CONSOLE

     THIS ADD ON CONTENT ADDENDUM (“Addendum”) to the CONFIDENTIAL LICENSE AGREEMENT FOR THE WII
CONSOLE (“Agreement”) is entered into between Nintendo of America Inc. (“NOA”) and MAJESCO
ENTERTAINMENT COMPANY (“LICENSEE”), and shall be deemed a part of the Agreement. NOA and LICENSEE
agree as follows:

1. BACKGROUND

     1.1 The parties previously entered into the Agreement, which Agreement, among other things,
restricts LICENSEE from developing additional content for Games for download by consumers, without
the express written approval of NOA.

     1.2 NOA now desires to offer LICENSEE the opportunity to create additional new content for
Games for download by customers through NOA’s Wii Network Services.

     1.3 LICENSEE desires to develop additional new content for Games, and have NOA offer that new
content to customers for download through the Wii Network Services.

     1.4 NOA desires to market, distribute and sell additional new content for Games through the
Wii Network Services.

2. DEFINITIONS

     All capitalized terms used in this Addendum that are not otherwise defined herein shall have
the meaning set forth in the Agreement. The following additional definitions specifically apply to
this Addendum:

     2.1 “Add On Content” means any new content for Games developed by or for LICENSEE and
Distributed by NOA. “Add On Content” shall be deemed a part of a Game, as defined in the
Agreement.

     2.2 “Add On Content Final Title Sheet” means NOA’s form that is completed and submitted by
LICENSEE with each proposed Add On Content.

     2.3 “Distribute”, “Distributed” or “Distribution” means any offer of Add On Content to a
customer by NOA through the Wii Network Services.

     2.4 “E-Commerce Library Programming Guidelines for Wii” means the current guidelines specific
to the incorporation of e-commerce functionality in Games to allow for the Sale, Distribution, and
download of Add On Content. The E-commerce Guidelines shall be deemed a part of the Guidelines, as
defined in the Agreement.

     2.5 “Instruction Manuals” means electronic manuals or other documents, in such form as may be
required by NOA, that describe how to use Add On Content and that set forth any necessary warnings
related to such use.

     2.6 “Licensee Intellectual Property Rights” means Proprietary Rights owned or licensed by
LICENSEE (excluding any Intellectual Property Rights) in or relating to the Game or Add On Content.

 

 

     2.7 “Performance Threshold” means, for each specific piece of Add On Content, the minimum
number of Sales or other criteria required to be satisfied for specific Add On Content before
LICENSEE will be eligible to be paid a Royalty for that Add On Content.

     2.8 “Royalty” or “Royalties” means the amounts payable to LICENSEE by NOA in accordance with
this Addendum.

     2.9 “Sale” means each redemption by a customer of Wii Points (or the actual purchase price to
download content, should NOA allow purchases by other than Wii Points), which enables such customer
to download specific Add On Content (collectively, “Sales”). “Sell” or “Sold” shall mean the
completion of each such Sale through NOA.

     2.10 “System Updates” mean upgrades, bug fixes, or additional features that modify the
operating system of the Wii console and/or are designed to optimize or enhance the operation,
performance, or security of the Wii Network Services or the Wii console.

     2.11 “Wii Points” means the points which customers purchase from NOA and its subsidiaries
through means such as the Wii Shop Channel and points cards sold or distributed by NOA’s
promotional partners and authorized retailers and distributors, and that may be redeemed by
customers to download Add On Content or other content.

     2.12 “Wii Shop Channel” means the service provided by NOA or Nintendo that is associated with
the Wii console (or any successor consoles) whereby customers, through an Internet connection, can
download content for such console upon a Sale to a customer.

3. GRANT OF LICENSE; RESTRICTIONS

     3.1 Grant of Development License to LICENSEE. Subject to the terms and conditions of
the Agreement, NOA grants to LICENSEE, during the Term and throughout the Territory, a
nonexclusive, nontransferable, limited license to use the Intellectual Property Rights to develop
Add On Content (or have Add On Content developed on LICENSEE’s behalf) for Distribution and Sale
solely by NOA.

     3.2 Grant of License to NOA. Subject to the terms and conditions of the Agreement,
LICENSEE grants to NOA, during the Term and throughout the Territory, a license in and to the Add
On Content, and all of LICENSEE’s Proprietary Rights associated therewith, sufficient to permit
NOA, its subsidiaries or third parties working on NOA’s behalf, to advertise, market, Distribute
and Sell the Add On Content. NOA shall not be in breach of this license grant if it advertises,
markets, Distributes or Sells to any customer representing him or herself to be within the
Territory, even if such customer is not in fact within the Territory.

     3.3 Restrictions and Prohibitions. NOA will not (i) modify, Distribute or Sell Add On
Content or all or any part of the Licensee Intellectual Property Rights, except as permitted by
this Agreement; or (ii) reverse engineer or assist in the reverse engineering of all or any part of
the Add On Content. LICENSEE will not (I) reverse engineer or assist in the reverse engineering of
all or any part of the Intellectual Property Rights; or (II) use the Intellectual Property Rights
for any purpose other than that set forth in the Agreement and in Subsection 3.1 of this Addendum,
unless expressly permitted pursuant to in accordance with a separate written authorization by NOA.

4. DEVELOPMENT; APPROVALS; UPGRADES; DISTRIBUTION; SUPPORT

     4.1 Responsibility for Add On Content. LICENSEE is solely responsible for
development, testing, quality, content, operation and support of Add On Content, and must comply
with any Guidelines made available to LICENSEE by NOA in connection therewith. Failure to comply
with any Guidelines shall be a breach of this Agreement. LICENSEE shall review all Add On Content
prior to submission to NOA, and shall ensure that all Add On Content submitted to NOA by LICENSEE
for Distribution: (i) is free of bugs or other operational defects or errors that have a material
adverse effect on the use and/or

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enjoyment of the applicable Game, (ii) does not contain any open source software, and (iii) does
not include material that would change the existing ESRB rating or descriptors for the Game. To
the extent an Instruction Manual is required by the Guidelines, LICENSEE must include an
Instruction Manual with its submission.

     4.2 Security Technology, System Updates and Notifications. In its sole discretion,
and without Notice to LICENSEE, NOA or Nintendo may add Security Technology, System Updates, and
trademark, copyright or customer notifications to Add On Content or Instruction Manuals; provided,
however, any such addition by NOA will not serve to release LICENSEE from any obligation under the
Agreement or under applicable laws, rules or regulations. NOA may in addition require LICENSEE at
LICENSEE’s sole expense to update its Add On Content from time to time to (i) comply with any new
Wii Network Services or Wii console requirements or Guidelines, or (ii) fix bugs or other
operational defects or errors in the Add On Content.

     4.3 Submission of Completed Add On Content. When development and testing of proposed
Add On Content has been completed, LICENSEE will submit such proposed Add On Content to NOA for
approval, and shall provide along with each submission a completed Add On Content Final Title Sheet
for such proposed Add On Content, and such additional information or documentation as deemed
necessary by NOA.

     4.4 No Obligation to Market, Distribute or Sell. LICENSEE acknowledges that its
development of proposed Add On Content is at its sole risk. NOA is under no obligation to
advertise, market, Distribute or Sell specific Add On Content and thereby incur any Royalty or
other financial obligation to LICENSEE. If NOA elects to Distribute any Add On Content, the
commencement date of such Distribution, the length of time, and the countries within the Territory
in which it is Distributed, shall be in NOA’s sole discretion, provided, however, LICENSEE may
terminate NOA’s right to Distribute or Sell specific Add On Content, upon thirty day’s prior Notice
to NOA. NOA may at any time and for any reason (i) remove Add On Content from the Wii Network
Services for all or a portion of the Territory without liability to LICENSEE, other than payment of
any Royalties that may be due under Section 5 of this Addendum for Sales that occurred prior to
such removal, and (ii) restore Add On Content to the Wii Network Services for all or a portion of
the Territory during the Term (and in such case shall continue to pay to LICENSEE any Royalties due
under Section 5 of this Addendum).

     4.5 Technical Support. LICENSEE shall provide all necessary technical support to NOA
relating to the Add On Content in order to enable NOA to market, Distribute and Sell Add On
Content.

     4.6 Customer Support. LICENSEE is solely responsible for all customer support for the
Add On Content. Notwithstanding the foregoing, LICENSEE acknowledges that NOA shall have the right
to post Instruction Manuals and other information relating to Add On Content on NOA websites for
customer support purposes.

5. PRICE; ROYALTIES

     5.1 Price. NOA shall have sole discretion to (i) determine the number of Wii Points a
customer must redeem to download specific Add On Content (or the purchase price, if Wii Points are
not used); (ii) change the number of Wii Points or the purchase price from time to time; and (iii)
require a different number of Wii Points or purchase price in order to redeem specific Add On
Content in different countries within the Territory. LICENSEE may suggest to NOA the number of Wii
Points (or the purchase price, if Wii Points are not used) at which to offer Add On Content,
although NOA has no obligation to accept such suggestion. If LICENSEE has suggested a price of 0
Wii Points, and NOA does set a price of 0 Wii Points, LICENSEE acknowledges and agrees that it will
reimburse NOA at NOA’s request for any costs or taxes associated with no cost access to such Add On
Content.

     5.2 Royalty. Subject to this Section 5, and provided the applicable Performance
Threshold has been met for such Add On Content, NOA will pay LICENSEE a Royalty on each Sale as
follows:

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     5.2.1 At the end of each calendar quarter, NOA will determine the total number of Sales of
each Add On Content.

     5.2.2 NOA will then determine the total number of Wii Points redeemed by customers with
respect to such Sales (or the total purchase price for such Sales, if Wii Points are not used).

     5.2.3 NOA will then calculate for each Sale the total “imputed value” of such Wii Points,
using the following fixed conversion rate: 1 point = 0.01 U.S. Dollars (or the actual purchase
price, if Wii Points are not used).

     5.2.4 The “imputed value” or actual purchase price will then be reduced by any deductions for
Royalty offsets pursuant to Subsection 5.6 of this Addendum (“Quarterly Amount”).

     5.2.5 NOA will pay LICENSEE a Royalty corresponding to sixty-five percent (0.65) of the
Quarterly Amount, less any deductions for any required withholding taxes.

     5.3 Performance Thresholds. In order to help offset NOA’s expenses incurred for
quality assurance, lot check, Distribution, and Sales, NOA’s payments to LICENSEE for each specific
Add On Content Distributed by NOA shall not begin unless and until LICENSEE meets the applicable
Performance Threshold for that specific Add On Content.

     5.3.2 Applicable Performance Thresholds are set forth at www.warioworld.com or such other
website as NOA may in the future designate. NOA may from time to time in its sole discretion
modify Performance Thresholds or add new Performance Thresholds, provided that NOA may not increase
any Performance Threshold for specific Add On Content after the date such Add On Content is
initially Distributed.

     5.3.3 Once specific Add On Content has reached the applicable Performance Threshold, Royalties
will be due for all Sales of such Add On Content (including all Sales made prior to reaching the
applicable Performance Threshold), and will be paid as provided in Subsection 5.4 of this Addendum,
without payment of interest. In the event the Agreement or NOA’s right to distribute specific Add
On Content terminates before the applicable Performance Threshold has been met for such Add On
Content, no payment for such Sales will be owed to LICENSEE.

     5.4 Payments. All Royalty payments from NOA to LICENSEE shall be made by check or by
electronic transfer, or such other means as may be required by NOA from time to time, to the
account listed in the Add On Content Final Title Sheet for the initial Add On Content Distributed
by NOA, or such other account as LICENSEE may thereafter designate in a Notice to NOA. LICENSEE
may not offset against any amount owed NOA any amounts payable pursuant to this Addendum.

     5.5 Withholding Taxes. LICENSEE acknowledges that Royalty payments made to non-U.S.
content providers may be subject to government-imposed withholding or other taxes. NOA will
withhold and pay such taxes on Royalty payments made by NOA under this Agreement unless LICENSEE
completes and submits to NOA all tax documents required to eliminate or reduce such taxes in
accordance with applicable tax treaties. LICENSEE acknowledges that, in order to eliminate or
reduce applicable taxes, such documents must be received by NOA (Attn. Nintendo of America Inc. Tax
Department, 4820 — 150th Ave. NE, Redmond, WA 98052) prior to NOA making a Royalty
payment hereunder, and if not received by the time a Royalty payment is otherwise due, such Royalty
payment will be subject to withholding of such taxes. In the event taxes are withheld, NOA will
provide LICENSEE copies of relevant tax documents evidencing withholding of such taxes.

     5.6 Royalty Offsets.

     5.6.1 Refunds. NOA shall have the right in its sole discretion to refund Wii Points
to customers in respect of any Sale in the event of a customer complaint or unauthorized
transaction relating to such

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Sale, and to offset the corresponding value of such refund amounts against any Royalties that would
otherwise be due hereunder.

     5.6.2 Other. NOA may offset against Royalties any amounts which LICENSEE is required
to pay NOA under the Agreement.

     5.7 Claims. Without prejudice to any other rights and remedies of NOA, in the event
any Claim is made that may be subject to LICENSEE’s indemnification obligations under Section 10 of
the Agreement, NOA may in its sole discretion withhold payment to LICENSEE until such time as the
Claim has been resolved, and any amounts due NOA have been fully paid or any Royalty offsets
relating to such amounts have been fully determined.

     5.8 Royalty Reports. NOA will furnish LICENSEE with quarterly Royalty reports for any
calendar quarter in which Sales took place, and, provided the applicable Performance Threshold has
been met, will pay any Royalties due within thirty (30) days of the close of such calendar quarter,
provided, however, if any payment due is less than $100 USD, NOA may in its sole discretion delay
making such payment until the earlier of the calendar quarter immediately following: (i) that
calendar quarter in which Royalties equal that amount or greater, or (ii) the expiration of the
Term.

6. MARKETING, ADVERTISING, AND CUSTOMER SUPPORT

     6.1 Marketing.

     6.1.1 By NOA. NOA may in its sole discretion and at its expense (i) advertise or list
Add On Content on websites operated by or on behalf of NOA, on the Wii Network Services, and in
other online, media or print marketing channels, and (ii) include trailers, screen shots, artwork,
sound effects, and other information relating to the Add On Content in NOA periodicals (issued by
NOA or through its licensees), Wii channels, and other advertising, promotional or marketing
materials that promote Add On Content, the Wii Network Services, or other NOA products, services or
programs. NOA shall submit to LICENSEE samples of proposed marketing materials for LICENSEE’s
review and approval. LICENSEE shall within five (5) business days of receipt approve or disapprove
of such samples. NOA shall not use any marketing materials without obtaining LICENSEE’s approval,
which approval shall not be unreasonably withheld. NOA may from time to time reasonably request,
and LICENSEE shall provide to NOA at LICENSEE’s expense, reference materials such as character
print samples and other materials in connection with these advertising and promotional activities.

     6.1.2 By LICENSEE. Subject to Subsection 7.1 of the Agreement, LICENSEE may in its
sole discretion and at its expense advertise and market Add On Content.

     6.2 Royalty-Free Copies. NOA shall be provided 50 complimentary downloads of Add On
Content, which may be used by its employees or media for evaluation purposes, without any payment
of Royalties or other amounts to LICENSEE.

7. ADDITIONAL REPRESENTATIONS, WARRANTIES AND DISCLAIMERS

     7.1 LICENSEE’s Representations and Warranties. LICENSEE represents and warrants that,
except for any Intellectual Property Rights, System Updates or notifications included by NOA or
Nintendo in the Add On Content: (i) LICENSEE is either the sole owner of all right, title and
interest in and to the Add On Content or Marketing Materials (including but not limited to any
music, trademarks, service marks or other Proprietary Rights contained in or relating to the Add On
Content), or has at LICENSEE’s expense obtained all necessary third party approvals in writing
(including but not limited to those of any music performance or collecting licensing societies), to
grant to NOA the rights set forth in this Addendum throughout the Territory and for the duration of
the Term; (ii) neither the Add On Content nor the Licensee Intellectual Property Rights violate or
infringe any Proprietary Rights of any third party anywhere in the Territory; (iii) the Add On
Content will at the time delivered to NOA be free of any bugs or other operational defects or
errors that materially affect Game play; (iv) nothing in the Add On Content would

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change the original ESRB rating or descriptors for the Game; (v) the Add On Content does not
contain any material that is libelous or defamatory or that discloses private or personal matters
concerning any person, or any computer virus, trojan horse, spyware or other contaminating,
malicious or destructive feature; (vi) the Add On Content does not contain any open source
software; and (vii) the Add On Content conforms with the requirements of the Agreement, including
but not limited to the Guidelines, and all applicable laws, rules and regulations.

     7.2 NOA’s Disclaimers. TO THE MAXIMUM EXTENT PERMITTED BY LAW, NOA (ON BEHALF OF
ITSELF, NINTENDO, AND THEIR AFFILIATES, LICENSORS, SUPPLIERS AND SUBCONTRACTORS) EXPRESSLY
DISCLAIMS ANY AND ALL WARRANTIES WITH RESPECT TO THE ADD ON CONTENT OR THE WII NETWORK SERVICE,
EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS
FOR A GENERAL OR PARTICULAR PURPOSE. LICENSEE ACKNOWLEDGES THAT THE ADD ON CONTENT AND THE WII
NETWORK SERVICE MAY BE SUBJECT TO DISRUPTIONS, AND THAT NOA MAY DECIDE TO DISCONTINUE OR TERMINATE
ALL OR PART OF THE WII NETWORK SERVICE, INCLUDING BUT NOT LIMITED TO THE WII SHOP CHANNEL, AT ANY
TIME IN NOA’S SOLE DISCRETION AND WITHOUT NOTICE TO LICENSEE.

     7.3 INTELLECTUAL PROPERTY RIGHTS DISCLAIMER. TO THE MAXIMUM EXTENT PERMITTED BY LAW,
NOA (ON BEHALF OF ITSELF, NINTENDO, AND THEIR AFFILIATES, LICENSORS, SUPPLIERS AND SUBCONTRACTORS)
EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES CONCERNING THE SCOPE OR VALIDITY OF THE
INTELLECTUAL PROPERTY RIGHTS, AND EXPRESSLY DISCLAIMS ANY WARRANTY THAT THE DESIGN OR DEVELOPMENT
OF THE ADD ON CONTENT 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, STATUTE OR REGULATION GOVERNING COMMERCIAL ACTIVITY IS EXPRESSLY DISCLAIMED.
LICENSEE HEREBY ASSUMES THE RISK OF INFRINGEMENT.

     7.4 The representations and warranties and disclaimers set forth in Subsections 7.1, 7.2 and
7.3 of this Addendum shall apply with respect to Add On Content and not those representations,
warranties and disclaimers set forth in Subsections 9.1(c), 9.3 and 9.4 of the Agreement.

8. INDEMNIFICATION

     All of the provisions set forth at Section 10 of the Agreement shall apply equally to Add On
Content, including LICENSEE’s indemnification obligations set forth at Subsection 10.2; provided,
however, that LICENSEE’S indemnification obligations shall not apply to the extent a Claim is
related solely to advertising, marketing, Distribution or sales activities performed by NOA and not
by LICENSEE.

9. TERM AND TERMINATION

     9.1 Term of Addendum. This Addendum will commence on the earlier of the date last
signed by a party, or the date LICENSEE’s first Add On Content is Distributed, and will continue
for so long as the Agreement is in effect. LICENSEE acknowledges that Add On Content Sold at any
time during the Term shall remain playable and may be re-downloaded by customers for as long as
they have their Wii console, even if the Agreement has expired or been terminated, or NOA’s right
to Distribute that specific Add On Content has been terminated pursuant to Subsection 4.4 of this
Addendum. NOA, may not, however, Distribute or Sell any Add On Content after the Agreement has
expired or been terminated.

     9.2 Termination of Add On Content. If LICENSEE terminates NOA’s right to Distribute
specific Add On Content pursuant to Subsection 4.4 of this Addendum, such termination shall only
terminate NOA’s right to Distribute that specific Add On Content and shall not affect any right
that

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LICENSEE has granted to Distribute any other Add On Content or this Addendum, which shall continue
in full force and effect.

     9.3 Survival. Upon the expiration or termination of this Addendum, provisions that by
their nature are intended to survive such expiration or termination shall so survive, including,
without limitation: Sections 2, 5, 7, 8 and 10 of this Addendum in their entirety, and Subsections
3.3, 4.1, 4.2, 9.1, and 9.3 of this Addendum.

10. GENERAL PROVISIONS

     10.1 References to “Licensed Products”. The parties agree that the provisions related
to Licensed Products set forth in the Agreement at Subsections 2.11, 2.13, 2.23, 3.2, 4.2, 7.3,
7.4(c), 7.6, and 7.7, and Section 11 shall apply equally to Add On Content, and not just to the
Licensed Products, and that every reference to “Licensed Products” therein shall be deemed to
include Add On Content.

     10.2 Confidential License Agreement for the Wii Console. This Addendum shall be
deemed to be a part of the Agreement and, except as expressly modified by this Addendum, all of the
terms and conditions of the Agreement shall apply to this Addendum.

     10.3 Application of Other Agreements. In the event LICENSEE has entered into a
WiiWare Content Development and Distribution Agreement with NOA, the terms of this Addendum shall
apply with respect to Add On Content for Game discs, and the terms of the WiiWare Content
Development and Distribution Agreement shall apply with respect to Add On Content for WiiWare
games.

	 	 	 	 	 	 	 	 	 	 	 	 	 

	NOA:	 	LICENSEE:	 	 
	NINTENDO OF AMERICA INC.	 	MAJESCO ENTERTAINMENT COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	James R. Cannataro
	 	 	 	Name:	 	 	 	 
	 

	 	Title:
	 	Executive VP, Administration
	 	 	 	Title:	 	 	 	 
	 

	 	Date:
	 	 	 	 	 	Date:	 	 	 	 

PAGE 7 OF 7exv10w4

Exhibit 10.4

CONFIDENTIAL LICENSE AGREEMENT

FOR NINTENDO DS (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
MAJESCO ENTERTAINMENT COMPANY (“LICENSEE”) at 160 Raritan Center Parkway, Edison, NJ 08837 Attn:
General Counsel (Fax: 732-225-8408). NOA and LICENSEE agree as follows:

1. RECITALS

     1.1 NOA markets and sells advanced design, high-quality video game systems, including the
Nintendo DS system.

     1.2 LICENSEE desires a license to use highly proprietary programming specifications,
development tools, trademarks and other valuable intellectual property rights of NOA and its parent
company, Nintendo Co., Ltd. (collectively “Nintendo”), to develop, have manufactured, advertise,
market and sell video game software for play on the Nintendo DS 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 design specifications for the Game Card label and Printed Materials in
the format specified by NOA in the Guidelines.

     2.2 “Bulk Goods” means the Game Cards with Game Card labels affixed.

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

     2.4 “Effective Date” means May 1, 2005.

     2.5 “Finished Product(s)” means the fully assembled and shrink-wrapped Licensed Products, each
including a Game Card, Game Card label and Printed Materials.

     2.6 “Game Card(s)” means custom card media specifically manufactured under the terms of this
Agreement for play on the Nintendo DS system, incorporating semiconductor components in which a
Game has been stored.

     2.7 “Game(s)” means the Nintendo DS version of an interactive video game program, or other
applications approved by Nintendo (including source and object/binary code) developed for the
Nintendo DS system.

     2.8 “Guidelines” means the current version or any future revision of the “Nintendo DS
Packaging Guidelines”, “Nintendo DS Development Manual” and related guidelines provided by NOA.

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

     2.10 “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

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2
of the Securities Exchange Act of 1934.

			
	 	 	 
	
	 	PAGE 1 OF 15

 

 

limitation, (a) registered and unregistered trademarks and trademark applications used in
connection with Games for the Nintendo DS system including “Nintendo®”, “Nintendo DSTM”, “DSTM”, and
the “Official Nintendo Seal®”, (b) select trade dress associated with the Nintendo DS system and
licensed Games for play thereon, (c) Proprietary Rights in the Security Technology incorporated
into the Game Cards, (d) rights in the Development Tools for use in developing the Games, (e)
patents or design registrations associated with the Game Cards, (f) copyrights in the Guidelines,
and (g) other Proprietary Rights of Nintendo in the Confidential Information.

     2.11 “Licensed Products” means (a) Finished Products, or (b) Bulk Goods when fully assembled
and shrink-wrapped with the Printed Materials.

     2.12 “Marketing Materials” means marketing, advertising or promotional materials developed by
or for LICENSEE (or subject to LICENSEE’s approval) to 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 and print media or materials.

     2.13 “NDA” means the non-disclosure agreement providing for the protection of Confidential
Information related to the Nintendo DS system previously entered into between NOA and LICENSEE.

     2.14 “Notice” means any notice permitted or required under this Agreement. All notices shall
be sufficiently given when (a) personally served or delivered, (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.

     2.15 “Price Schedule” means the current version or any future revision of NOA’s schedule of
purchase prices and minimum order quantities for Finished Products and Bulk Goods.

     2.16 “Printed Materials” means the Game Card label and title sheet, user instruction booklet,
poster, warranty card and LICENSEE inserts incorporating the Artwork, together with a precautions
booklet as specified by NOA.

     2.17 “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.

     2.18 “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.

     2.19 “Security Technology” means, without limitation, any security signature, bios, data
scrambling, password, hardware security apparatus, watermark, hologram, encryption, Digital Rights
management system, copyright management information system or any feature that facilitates or
limits compatibility with other hardware, software, or accessories or other peripherals outside of
the Territory or on a different video game system.

     2.20 “Term” means three years from the Effective Date.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2
of the Securities Exchange Act of 1934.

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     2.21 “Territory” means 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
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 valuable nature of the
Intellectual Property Rights, (b) the right, title, and interest of Nintendo in and to the
Intellectual Property Rights, and (c) the right, title and interest of Nintendo in and to the
Proprietary Rights associated with all aspects of the Nintendo DS system. LICENSEE recognizes that
the Games, Game Cards 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 that 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 is not licensed to, and
covenants that, without the express written consent of Nintendo, it will not at any time, directly
or indirectly, do or cause to be done any of the following:

          (a) grant access to, distribute, transmit or broadcast a Game by electronic means or by any
other means known or hereafter devised, including, without limitation, by wireless, cable, fiber
optic, telephone lines, microwave, radiowave, computer or other device network, except (a) as a
part of wireless Game play on and among Nintendo DS systems, (b) for the purpose of facilitating
Game development under the terms of this Agreement, or (c) as otherwise approved in writing by
Nintendo. LICENSEE shall use reasonable security measures, customary within the high technology
industry, to reduce the risk of unauthorized interception or retransmission of any Game
transmission. No right of retransmission shall attach to any authorized transmission of a Game,

          (b) modify, install or operate a Game on any server or other device for the purpose of or
resulting in the rental, lease, loan or sale of rights of access to the Game,

          (c) emulate, interoperate, interface or link a Game for operation or use with any hardware
platform, software program, accessory, computer language, computer environment, chip instruction
set, consumer electronics device, telephone, cellphone, PDA, or other device, including for
purposes of data interchange, password usage or interactive video game play, other than a Nintendo
DS system, an application approved by Nintendo, or the Development Tools,

          (d) emulate any past, current or future Nintendo brand video game system, or any portion
thereof, in software or hardware or any combination thereof,

          (e) embed, incorporate, or store a Game in any media or format except the Game Card format
utilized by the Nintendo DS 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
circumvent the Security Technology,

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2
of the Securities Exchange Act of 1934.

PAGE 3 OF 15

 

          (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 the Reverse Engineering of all or any part of the Nintendo
DS system, including the hardware or software (whether embedded or otherwise), the Development
Tools or the Security Technology.

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

     3.5 Development Tools. Nintendo may lease, loan or sell Development Tools to LICENSEE
to assist in the development of Games under this Agreement. Ownership and use of any Development
Tools provided to LICENSEE by Nintendo shall be subject to the terms of this Agreement and any
separate license or purchase agreement required by Nintendo. 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 derivative works of the Intellectual Property Rights and
shall belong to Nintendo, but may be retained and utilized by LICENSEE in connection with this
Agreement. In no event shall LICENSEE (i) seek, claim or file for any patent, copyright or other
Proprietary Right with regard to any such derivative work, (ii) make available any such derivative
work to any third party, or (iii) use any such derivative work except in connection with the design
and development of Games under this Agreement.

4. SUBMISSION OF GAME AND ARTWORK FOR APPROVAL

     4.1 Development and Sale of the Games. LICENSEE may develop Games and have
manufactured, advertise, market and sell Licensed Products for play on the Nintendo DS system only
in accordance with this Agreement.

     4.2 Third Party Developers. 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, unless and until such
Independent

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2
of the Securities Exchange Act of 1934.

PAGE 4 OF 15

 

Contractor has been approved by NOA and has executed a written confidentiality agreement with NOA
relating to the Nintendo DS system.

     4.3 Delivery of Completed Game. Upon completion of a Game, LICENSEE shall deliver a
prototype of the Game to NOA in a format specified in the Guidelines, together with 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. NOA
shall promptly evaluate the Game with regard to its technical compatibility with and error-free
operation on the Nintendo DS system. LICENSEE is responsible for ensuring that the Game and any
other content to be included on the Game Card complies with the Advertising Code of Conduct of the
Entertainment Software Ratings Board (“ESRB”) and that the Game has been rated EC, E, E10+, M or T
by the ESRB (or other categories as added by the ESRB). LICENSEE shall provide NOA with a related
certificate of rating for the Game from the ESRB.

     4.4 Approval of Completed Game. NOA shall, within a reasonable period of time after
receipt, approve or disapprove each submitted Game. If a Game 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 a revised Game to NOA
for approval. NOA shall not unreasonably withhold or delay its approval of any Game. The approval
of a Game by NOA shall not relieve LICENSEE of its sole responsibility for the development, quality
and operation of the Game or in any way create any warranty for a Game or a Licensed Product by
NOA.

     4.5 Submission of Artwork. Upon submission of a completed Game to NOA, LICENSEE shall
prepare and submit to NOA the Artwork for the proposed Licensed Product. Within seven (7) 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 any Licensed Product by NOA.

     4.6 Artwork for Bulk Goods. If LICENSEE submits an order for Bulk Goods, all Artwork
shall be submitted to NOA in advance of NOA’s acceptance of the order and no production of Printed
Materials shall occur until such Artwork has been approved by NOA under Section 4.5 herein.

5. ORDER PROCESS, PURCHASE PRICE, PAYMENT AND DELIVERY 

     5.1 Submission of Orders by LICENSEE. LICENSEE may at any time submit written
purchase orders to NOA for any approved Licensed Product title. The purchase order shall specify
whether it is for Finished Products or Bulk Goods. The terms and conditions of this Agreement
shall control over any contrary terms of such purchase order or any other written documents
submitted by LICENSEE. All orders are subject to acceptance by NOA in Redmond, WA.

     5.2 Purchase Price and Minimum Order Quantities. The purchase price and minimum order
quantities for Finished Products and Bulk Goods shall be set forth in NOA’s then current Price
Schedule. The purchase price includes the cost of manufacturing 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 are included in
the purchase price and all such taxes are the responsibility of LICENSEE (except for taxes imposed
on NOA’s income). The Price Schedule is subject to change by NOA at any time, provided, however,
that any price increase shall be applicable only to purchase orders submitted, paid for, and
accepted by NOA after the effective date of the price increase.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2
of the Securities Exchange Act of 1934.

PAGE 5 OF 15

 

     5.3 Payment. Upon placement of an order with NOA, LICENSEE shall pay the full
purchase price to NOA either (a) by placement of an irrevocable letter of credit in favor of NOA
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 NOA’s designated account. All associated
banking charges are the responsibility of the LICENSEE.

     5.4 Shipment and Delivery. All Licensed Products shall be delivered to LICENSEE EXW
Ex works Japan (as defined by Incoterms 2000), or such other delivery point specified by NOA, with
shipment at LICENSEE’s direction and expense. Orders may be delivered by NOA in partial shipments,
each directed to not more than two (2) destinations designated by LICENSEE within the Territory.
Title to the Licensed Products shall vest in accordance with the terms of the applicable letter of
credit or, in the absence thereof, at the point of delivery.

6. MANUFACTURE OF THE LICENSED PRODUCT

     6.1 Manufacturing. Nintendo shall be the exclusive source for the manufacture of the
Game Cards, and shall control 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.

     6.2 Manufacture of the Licensed Products. Upon acceptance by NOA of a purchase order
for an approved Licensed Product title and payment as provided for under Section 5.3 herein, NOA
will arrange for the manufacture of Finished Product or Bulk Goods, as specified in LICENSEE’s
purchase order.

     6.3 Security Features. The final release version of the Game, Game Cards and Printed
Materials shall include such Security Technology as Nintendo, in its sole discretion and at its
sole expense, may deem necessary or appropriate.

     6.4 Production of Bulk Goods Printed Materials. For Bulk Goods, LICENSEE shall
arrange and pay for the production of the Printed Materials using the Artwork. Upon receipt of an
order of Bulk Goods, LICENSEE shall assemble the Game Cards and Printed Materials into the Licensed
Products. Games may be sold or otherwise distributed by LICENSEE only in fully assembled and
shrink-wrapped Licensed Products.

     6.5 Prior Approval of LICENSEE’s Independent Contractor. Prior to the placement of a
purchase order for Bulk Goods, LICENSEE shall obtain NOA’s approval of any Independent Contractors
selected to perform LICENSEE’s 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 the facilities of the Independent Contractors, and (c) be present to
supervise any work on the Licensed Products to be done by any Independent Contractors. If at any
time NOA deems an Independent Contractor to be unable to meet quality, security or performance
standards reasonably established by NOA, NOA may refuse to grant its approval or withdraw its
approval upon Notice to LICENSEE. LICENSEE may not proceed with the production of the Printed
Materials or assembly of the Licensed Product by such Independent Contractor until NOA’s concerns
have been resolved to its satisfaction or until LICENSEE has selected and received NOA’s approval
of another Independent Contractor. NOA may establish preferred or required supply sources for the
Game Card case, or select components of the Printed Materials, which sources shall be deemed
pre-approved in accordance with this Section 6.5. LICENSEE shall comply with all sourcing
requirements established by NOA.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2
of the Securities Exchange Act of 1934.

PAGE 6 OF 15

 

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

     6.7 Sample Printed Materials and Bulk Goods. Within a reasonable period of time after
LICENSEE’s assembly of the initial order for a Bulk Goods title, LICENSEE shall provide NOA with
(a) one (1) sample of the fully assembled, shrink-wrapped Licensed Product, and (b) fifty (50)
samples of LICENSEE produced Printed Materials for such Licensed Product.

     6.8 Retention of Sample Licensed Products by Nintendo. Nintendo may, at its own
expense, manufacture reasonable quantities of the Game Cards or the Licensed Products to be used
for archival purposes, legal proceedings against infringers of the Intellectual Property Rights or
for other lawful purposes (but not for resale).

     6.9 Retention of User Instruction Booklet by NOA. For use in training consumer
support personnel, product orientation and other consumer support activities, as well as for
archival purposes, NOA may (a) retain (or request that LICENSEE provide to NOA) a reasonable number
of copies of the user instruction booklet for each Licensed Product, and (b) make a reasonable
number of copies of the user instruction booklet for each Licensed Product.

7. MARKETING AND ADVERTISING

     7.1 Approval of Marketing Materials. LICENSEE represents and warrants that the
Marketing Materials shall (a) be of high quality and comply with the Guidelines, (b) comply with
all ESRB advertising, marketing and merchandising guidelines, and (c) comply with 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 is consistent with the principles and guidelines issued by the ESRB and that complies 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 the quality of such samples. If any of the samples
are disapproved, NOA shall specify the reasons for such disapproval and state what corrections
and/or improvements are necessary. After making the necessary corrections and/or improvements,
LICENSEE shall submit revised samples for approval by NOA. No Marketing Materials shall be used or
distributed by LICENSEE without NOA’s prior written approval. NOA shall not unreasonably withhold
or delay its approval of any proposed Marketing Materials.

     7.2 No Bundling. To protect Nintendo’s valuable Intellectual Property Rights, to
prevent the dilution of Nintendo’s trademarks and to preclude free-riding by non-licensed products
on the goodwill associated with Nintendo’s trademarks, LICENSEE shall not market or distribute any
Licensed Products that are bundled with (a) any peripheral designed for use with the Nintendo DS
system that has not been licensed or approved in writing by NOA, or (b) any other product or
service where Nintendo’s sponsorship, association, approval or endorsement might be suggested by
the bundling of 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.

     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 Products, and (c)
customer service and Game counseling, including telephone service, to adequately support the
Licensed Products.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2
of the Securities Exchange Act of 1934.

PAGE 7 OF 15

 

     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 LICENSEE has actual or constructive knowledge that a subsequent
destination of the Licensed Product is outside the Territory.

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

     7.7 NOA Promotional Materials, Publications and Events. At its option, 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, official Nintendo-sponsored web sites, or other advertising,
promotional or marketing media that promotes Nintendo 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 that promote the Nintendo DS system.

     7.8 Nintendo Gateway System. To promote and increase demand for games on Nintendo
video game systems, NOA licenses a system (the “Nintendo Gateway System”) 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 systems. If NOA identifies a
Game for possible license on the Nintendo Gateway System, the parties agree to conduct good faith
negotiations toward including the Game in the Nintendo Gateway System.

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 DS 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 and/or trade secrets, (b) any patents or patent
applications, (c) any business, 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 that
was in the public domain prior to LICENSEE’s receipt of the same hereunder, or that subsequently
becomes part of the public domain by publication or otherwise, except by LICENSEE’s wrongful act or
omission, (ii) data and information that 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 that is still in force, and (iii) data and
information that 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 NOA is given Notice thereof at least thirty (30) days prior to such disclosure, or
such lesser period if required. 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.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2
of the Securities Exchange Act of 1934.

PAGE 8 OF 15

 

     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 No Disclosure to Independent Contractors. LICENSEE shall not disclose the
Confidential Information to any Independent Contractor without the prior written consent of NOA.
Any Independent Contractor seeking access to Confidential Information shall be required to enter
into a written non-disclosure agreement with NOA prior to receiving any access to or disclosure of
the Confidential Information from either LICENSEE or NOA.

     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, (d)
in response to lawful process, subject to a written protective order approved in advance by NOA,
and (e) to a third party proposing to enter into a business transaction with LICENSEE or with NOA,
but only to the extent reasonably necessary for carrying out the proposed transaction and only
under terms of mutual confidentiality.

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

     8.7 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 terms 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 other intellectual property
rights used on or in association with the development, advertising, marketing and sale of the
Licensed Products and the

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2
of the Securities Exchange Act of 1934.

PAGE 9 OF 15

 

Marketing Materials, or (ii) the holder of such rights to the trademarks, copyrights and other
intellectual property rights that have been licensed from a third party as are necessary for the
development, advertising, marketing and sale of the Licensed Products and 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 BY NOA. NOA MAKES NO REPRESENTATION OR
WARRANTY CONCERNING THE SCOPE OR VALIDITY OF THE INTELLECTUAL PROPERTY RIGHTS. NOA DOES NOT
WARRANT 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 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.

     9.4 GENERAL DISCLAIMER BY NOA. NOA DISCLAIMS ANY AND ALL WARRANTIES WITH RESPECT TO
THE LICENSED PRODUCTS, INCLUDING, WITHOUT LIMITATION, THE SECURITY TECHNOLOGY. LICENSEE PURCHASES
AND ACCEPTS ALL LICENSED PRODUCTS ON AN “AS IS” AND “WHERE IS” BASIS. NOA 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. (OR THEIR RESPECTIVE AFFILIATES, LICENSORS OR SUPPLIERS) 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 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, that 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 the Licensed Products or the Marketing
Materials,

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2
of the Securities Exchange Act of 1934.

PAGE 10 OF 15

 

          (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 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 the Licensed Products or the Marketing
Materials.

NOA and LICENSEE shall give prompt Notice to the other of any indemnified claim under this Section
10.1. With respect to any third party claim subject to this indemnity clause, 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 such claim 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.

     10.2 LICENSEE’s Insurance. LICENSEE shall, at its own expense, obtain a commercial
general liability insurance policy (including coverage for advertising injury and product liability
claims) from an insurance company rated at least B+ by A.M. Best. Such policy of insurance shall
be in an amount of not less than Five Million Dollars ($5,000,000 USD) on a per occurrence basis
(not claims made) and shall provide for adequate protection against any suits, claims, loss or
damage arising out of or relating to the Licensed Products. Such policy shall name NOA and
Nintendo Co., Ltd. as additional insureds and shall specify that it may not be canceled without
thirty (30) days’ prior written Notice to NOA. A Certificate of Insurance shall be provided to
NOA’s Licensing Department not later than the date of the initial order of Licensed Products under
this Agreement. If LICENSEE fails to provide NOA’s Licensing Department with such Certificate of
Insurance or fails to maintain such insurance at any time during the Term and for a period of two
(2) years thereafter, NOA, in its sole discretion may 1) terminate this Agreement in accordance
with Section 13.2 herein; or 2) secure comparable insurance for the benefit of NOA and Nintendo
Co., Ltd. only, and not for Licensee, 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 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 incurred in bringing such action, 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 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 the Intellectual Property
Rights. NOA will have the right to retain all proceeds it may derive from any recovery in
connection with such actions.

12. ASSIGNMENT

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2
of the Securities Exchange Act of 1934.

PAGE 11 OF 15

 

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

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

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

     12.4 LICENSEE’s Obligation of Non-Disclosure. LICENSEE shall not (a) disclose
Nintendo’s Confidential Information to any proposed assignee of LICENSEE, or (b) permit access to
Nintendo’s Confidential Information by any proposed assignee or other third party, without the
prior written consent of NOA to such disclosure.

13. TERM AND TERMINATION

     13.1 Term. This Agreement shall commence on the Effective Date and shall continue for
the Term, unless earlier terminated as provided for herein, or extended by a written amendment to
this Agreement.

     13.2 Termination.

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

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2
of the Securities Exchange Act of 1934.

PAGE 12 OF 15

 

          (b) In the event NOA reasonably believes that LICENSEE has developed, marketed, or sold a
product that infringes any intellectual property rights of NOA or its parent company, Nintendo Co.,
Ltd., anywhere in the world, then NOA may terminate this Agreement upon one hundred twenty (120)
days Notice to Licensee, provided that if the parties are able to resolve such alleged infringement
within such 120 day period, such termination shall not take effect.

          (c) At NOA’s option, any breach by LICENSEE of (i) the NDA, or (ii) any other license
agreement between NOA and LICENSEE relating to the development of games for any Nintendo video game
system that 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 immediately terminate this
Agreement.

          (d) 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.

     13.3 Sell-Off or Destruction of Licensed Product.

          (a) Upon (i) the expiration of this Agreement, (ii) its termination other than by LICENSEE’s
breach, or (iii) its termination pursuant to Section 13.2(b), LICENSEE shall have a period of one
hundred eighty (180) days to sell any unsold Licensed Products. All Licensed Products in
LICENSEE’s control following the expiration of such sell-off period shall be destroyed by LICENSEE
within ten (10) days and proof of such destruction (certified by an officer of LICENSEE) shall be
provided to NOA.

          (b) 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 proof of such destruction
(certified by an officer of LICENSEE) shall be provided to NOA.

     13.4 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 Licensed Products authorized
under Section 13.3 herein. LICENSEE shall, within thirty (30) days thereafter, return 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, that constitute or relate to or disclose any
Confidential Information, without making copies or otherwise retaining any such information. Proof
of any destruction shall be certified by an officer of LICENSEE and promptly provided to NOA.

     13.5 Permitted Sales After Termination for 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 13.3 shall apply.

14. GENERAL PROVISIONS

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

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2
of the Securities Exchange Act of 1934.

PAGE 13 OF 15

 

     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 that 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 related to the development and sale
of the Licensed Products and the Marketing Materials. 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.

     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 that
may reasonably be interpreted or construed as surviving, the rights and obligations set forth in
Sections 3, 8, 9, 10, 13 and 14 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 action
(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, that shall together constitute a complete Agreement. A signature transmitted by
facsimile shall be considered an original for purposes of this Agreement.

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

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2
of the Securities Exchange Act of 1934.

PAGE 14 OF 15

 

	 	 	 	 	 	 	 	 	 	 	 	 	 

	NOA:	 	LICENSEE:	 	 
	NINTENDO OF AMERICA INC.	 	MAJESCO ENTERTAINMENT COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	James R. Cannataro
	 	 	 	Name:	 	 	 	 
	 

	 	Title:
	 	Executive VP, Administration
	 	 	 	Title:	 	 	 	 
	 

	 	Date:
	 	 	 	 	 	Date:	 	 	 	 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2
of the Securities Exchange Act of 1934.

PAGE 15 OF 15

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