Document:

Exhibit (10) - 1334945 Ontario Limited Independent Contractor Agreement

Confidential                  Page 1                                     7/11/00

                        INDEPENDENT CONTRACTOR AGREEMENT

                THIS AGREEMENT made as of the 1st of April, 2000

BETWEEN:.

                             1334945 ONTARIO LIMITED

                  (hereinafter referred to as the "Contractor")

                                                               OF THE FIRST PART

AND

                                GREGORY MAVROUDIS

                  (hereinafter referred to as the "Principal ")

                               OF THE SECOND PART

AND

                        TENGTU INTERNATIONAL CORPORATION

                 (hereinafter referred to as the "Corporation")

                                                               OF THE THIRD PART

         WHEREAS the Corporation desires to retain the Contractor to provide the
Services described in this Agreement;

         AND WHEREAS the Contractor desires to perform the Services for the
Corporation;

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

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1.       Definitions
         -----------

1.1      In this Agreement:

         (a)      "Agreement" means this Agreement, all schedules attached, and
                  any amendments made to the foregoing;

         (b)      "Cause for Termination" means:

                  (i) the failure by the Contractor to perform, observe or
                      comply with any material term, condition or obligation
                      required under this Agreement, including the requirement
                      to provide the Services, if such failure has continued for
                      a period ten (10) days after written notice of such
                      failure has been given by the Corporation to the
                      Contractor; or

                  (ii) the engaging by the Contractor in any act that is
                      materially injurious to the Corporation, monetarily or
                      otherwise; or

                  (iii) the engaging by the Contractor in any criminal act of
                      dishonesty resulting or intended to result directly or
                      indirectly in personal gain of the Contractor at the
                      Corporation's expense; or

                  (iv) notwithstanding (i) above, a material breach by the
                      Contractor of the provisions of Section 6.1 at any time;
                      or

                  (v) such other cause for termination as determined by a court
                      of law in any legal proceeding between the parties hereto.

         (c)      "Confidential Information" means collectively the confidential
                  information of the Corporation and includes but is not limited
                  to information: concerning the present and contemplated
                  products, services, techniques, strategies and modes of
                  merchandising evolved, issued and/or used by the Corporation;
                  concerning the client lists and customers of the Corporation,
                  their names, addresses, tastes and preferences; concerning
                  employees of the Corporation or applicants for employment with
                  the Corporation, their names and addresses; and concerning the
                  existence of this Agreement, its contents and negotiations
                  between the parties, financial information and data of the
                  Corporation, contacts and contracts of the Corporation, all
                  other technical information, and all Work products. For the
                  purposes of this definition, Corporation shall be defined to
                  include all of its affiliated and related entities;

         (d)      "Date of Termination" means the earlier of:

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                  (i) the expiry of the Term and

                  (ii) the date of termination of the contractor arrangement.

         (e)      "Person" means a natural person, firm, trust, partnership,
                  association, corporation, syndicate, government or
                  governmental board or agency;

         (f)      "Services" means the services provided by the Contractor to
                  the Corporation as described under Section 3.1;

         (g)      "Term" means the initial term of the Agreement set out in
                  Section 2.1 and any extensions agreed to by the parties; and

         (h)      "Workproduct" is defined to include but is not limited to all:
                  processes, studies, flow charts, diagrams, devices, original
                  works of authorship, know-how, copyrights, inventions,
                  trademarks, programs, software and all other tangible or
                  intangible material of any nature including all other
                  intellectual property, developed by the Contractor during the
                  Term, whether conceived of or developed on the Corporation's
                  time or on the Contractor's private time, provided the
                  Workproduct is reasonably capable of use in connection with
                  the business of the Corporation.

2.       Term
         ----

2.1      Subject to earlier or later termination as allowed in this Agreement,
         the term of this Agreement shall be for a period of two (2) years
         commencing on the effective date of this Agreement and terminating on
         the second anniversary date of this Agreement.
2.2      Not withstanding 2.1, this Agreement his a six month probationary
         period that ends on September 30th,2000. The Corporation shall notify
         the contractor of its intent not to proceed by September 1st, 2000
         otherwise the probationary period will be deemed to have expire and
         this Agreement is binding.

3.       Duties of Contractor and the Principal
         --------------------------------------

3.1 The Contractor agrees to use best efforts to enhance and improve the
business and profile of the Corporation and shall, without limiting the
generality of the foregoing, provide the following services to the Corporation:

         (a)      provide the services described in Schedule "A" to this
                  Agreement; and

         (b)      act honestly, in good faith and in the best interests of the
                  Corporation and shall exercise the degree of diligence and
                  responsibility that a person having the

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Confidential                        Page 4                               7/11/00

                  Contractor's expertise and knowledge of the affairs of the
                  Corporation would reasonably be expected to exercise in
                  comparable circumstances.

3.2 The Contractor's services hereunder shall be performed at locations to be
designated by the Corporation from time to time.

3.3 The Contractor agrees to provide the services of the Principal, (and such
other person, subject to the Corporation's prior approval) as are requested by
the Corporation during the term of this Agreement.

3.4 The Principal agrees to provide such services as are requested by the
Contractor and the Corporation during the term of this Agreement and the
Principal agrees to give notice of his resignation at his present place of
employment forthwith after the effective date of this Agreement.

4.       Reporting Procedures
         --------------------

4.1 The Contractor shall report to the CEO or the CEO's designate from time to
time. Except as may be specifically provided in Schedule "A", the Contractor
shall report fully, on a monthly basis, on the status of the Services and
results obtained and advise to the best of the Contractor's ability in
accordance with reasonable business standards on business matters that may arise
from time to time during the Term.

4.2 Within seven (7) days following the end of the Term, the Contractor shall
deposit with the Corporation a list of all Confidential Information obtained by
the Contractor during the previous month.

5.       Remuneration
         ------------

5.1 As remuneration for the covenants of the Principal and the Contractor, each
of them hereby directs the Corporation to:

         (a)      pay to the Contractor a fee for the Services in accordance
                  with Section 5.2 and Schedule "A" (the "Fee"); and issue the
                  Contractor shares of the Corporation and in addition, issue
                  the Contractor Stock Options to purchase shares of the
                  Corporation, as attached in Schedule "B". (b) reimburse the
                  Contractor for all reasonable expenses incurred by the
                  Contractor while rendering Services, provided that the
                  Contractor supplies the Corporation with vouchers, receipts,
                  invoices or other reasonable details in respect of any
                  expenses for which the Contractor desires to be reimbursed by
                  the Corporation.

5.2 The Contractor shall be paid for the Services monthly in advance.

5.3 The Corporation shall pay the Contractor's expenses within thirty (15) days
following receipt of an invoice with all necessary supporting documentation.

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Confidential                   Page 5                                   7/11/00

6.       Non-Competition. Non-Solicitation and Confidentiality
         -----------------------------------------------------

6.1 The Contractor acknowledges that the Contractor has and will be entrusted
with Confidential Information. The Contractor acknowledges that the Confidential
Information may be disclosed verbally or in writing at any time to the
Contractor and that disclosure of any of the Confidential Information to
competitors of the Corporation or to the general public would be highly
detrimental to the best interests of the Corporation. The Contractor further
acknowledges that the right to maintain confidential the Confidential.
Information constitutes a proprietary right that the Corporation is entitled to
protect. Accordingly:

                  (a) the Contractor covenants and agrees with the Corporation
                  that the Contractor will not disclose any of the Confidential
                  Information to any Person nor shall the Contractor use the
                  same for any purposes other than those of the Corporation;

                  (b) the Contractor covenants and agrees that, the Contractor
                  will nowhere in the area set out in Schedule "A" during the
                  Term and for a one year period following the Date of
                  Termination directly or indirectly either individually or in
                  conjunction with any Person engage in, or provide services the
                  same as or substantially similar to the Services to any Person
                  engaged in, any business similar to the business of the
                  Corporation;

                  (c) the Contractor covenants and agrees that all Workproducts
                  shall be the sole and absolute property of the Corporation.
                  Any Workproduct generated by the Contractor shall be deemed to
                  be a work made for hire and the Contractor shall have no
                  proprietary interest in same. The Contractor hereby grants,
                  conveys and assigns to the Corporation the entire right, title
                  and interest, domestic and foreign, including copyright, in
                  and to each and every Workproduct and further agrees to sign
                  all applications for copyright, patents, assignments and other
                  papers and writings and to perform all acts necessary or
                  convenient to evidence the Corporation's ownership in the
                  Workproducts;

                  (d) the Contractor covenants and agrees with the Corporation
                  that during the Term and at any time during a two year period
                  following the Date of Termination the Contractor will not,
                  either individually or in conjunction with any Person induce
                  any employee of the Corporation to leave the employ of the
                  Corporation or to become employed by any Person other than the
                  Corporation.

                  (e) the Contractor shall cause any copies or reproductions of
                  the Confidential Information made by the Contractor to bear
                  the copyright or proprietary notices contained in the
                  original.

                  (f) the Contractor shall, upon completion of the Services,
                  upon termination of the Contractor's engagement hereunder, or
                  upon demand, whichever is earliest, return to the Corporation
                  any and all Confidential Information, including any copies or
                  reproductions, in Contractor's possession or control.

                  (g) the Contractor shall promptly advise the Corporation if
                  the Contractor learns of any unauthorised use or disclosure of
                  Confidential Information, and the Contractor shall provide to
                  the Corporation complete details regarding same.

                  (h) the Contractor acknowledges that the breach or threatened
                  breach of the obligations under this Article 6 by the
                  Contractor or any of the Contractor's shareholders, agents,
                  employees, representatives, or sub-contractors will give rise
                  to irreparable injury to the Corporation, which injury will be
                  inadequately compensable in money damages. Accordingly, the
                  Corporation may seek and obtain-injunctive relief against the
                  breach or threatened breach of the foregoing undertakings, in
                  addition to any other legal remedies that may be available.
                  The Contractor further acknowledges and agrees that the
                  covenants and agreements contained in this Article are
                  necessary for the protection of the Corporation's legitimate
                  business interests and are reasonable in scope and content.

6.2 For the purposes of this Article 6, "Corporation" shall be defined to
include the Corporation, its shareholders and all of its affiliated and related
companies.

6.3 The Contractor acknowledges and agrees that the Contractor is fully
responsible for ensuring the Contractor's shareholders, agents, employees,
representatives and sub-contractors are aware of the obligations set out in this
Article 6 and are bound by the same obligations to the Contractor. The
Contractor further acknowledges and agrees that the Contractor is fully liable
for any breach of threatened breach of the Contractor's obligations caused by
any act or omission by the Contractor's employees, agents, representatives and
sub-contractors.

7.       Termination
         -----------

7.1      The Corporation may terminate this Agreement effective immediately:

         (a)      Without cause at any time by paying to the Contractor,
                  immediately upon termination, the sum of $40,000, or equal to
                  four months base cash remuneration, and the payment, to the
                  extent payable, forthwith of the amount set forth in Schedule
                  "B" hereto; or

         (b)      immediately and without payment to the Contractor upon the
                  happening of a Cause for Termination

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Confidential                        Page 7                           7/11/00

                  (c) At the expiration of the probationary period, and without
                  cash payment to the contractor, upon notification to the
                  contractor, that the corporation intends to terminate this
                  agreement.

and thereafter the Corporation shall not be liable, except as set forth in
Section 7.4 hereof, to the Contractor or the Principal in respect of any matters
arising in connection with this Agreement.

7.2 In the event that the Corporation breaches any term of this Agreement, the
Contractor may, at any time following such breach, provided that the breach is
then continuing, give notice in writing to the Corporation setting forth the
particulars of such breach. If such breach is not remedied within ten (10) days
of the giving of such notice, the Contractor may, at any time thereafter and
prior to the time, if any, at which the breach is remedied, terminate this
Agreement by giving notice in writing thereof to the Corporation at which time,
without limiting and in addition to the rights and remedies of the Contractor as
against the Corporation as a result of such breach, the Corporation shall
forthwith pay to the Contractor the sum of US 40,000 and forthwith of the amount
set forth in Schedule "B" hereto..

7.3 Each and all of the provisions of Articles 6, 7, 15 and 16 shall survive the
termination or expiration of this Agreement until the parties mutually agree to
the release of such obligations.

7.4 Interest shall be payable both before, during, and after demand, default or
judgement until payment in full on all amounts payable by the Corporation to the
Contractor hereunder at the rate of 10% per annum calculated daily and payable
monthly with interest on over-due interest at the same said rate.

8.       Notice
         ------

8.1 All notices under this Agreement shall be in writing and given by delivery
or by facsimile to the following addresses:

         if to the Contractor or the Principal, at:

                                            The address specified in schedule A.

                  if to the Corporation or at: TENGTU INTERNATIONAL, CORPORATION

                                              Attention:         Pak Cheung
                                              ---------          ----------

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Confidential                   Page 8                                7/11/00

All notices are deemed to be received on the date delivered or the date the
notice is sent by facsimile. Any party may designate a different address for
notices in accordance with this Section.

9.       Assignment
         ----------

9.1 This Agreement shall not be assignable by the Contractor without the prior
written consent of the Corporation. This Agreement shall operate to the benefit
of and be binding upon the Contractor and the Corporation and their permitted
assigns.

10.      Governing Law
         -------------

10.1 This Agreement shall be governed by and construed and enforced in
accordance with the laws of Ontario.

11.      Waiver of Performance
         ---------------------

11.1 The Contractor and the Corporation may, in writing, extend the time for
performance or waive non-compliance or non-performance by the other of the
other's obligations, covenants and agreements under this Agreement. No act or
failure to act of the Contractor or the Corporation shall be deemed to be an
extension or waiver of timely or strict performance by the other of its
obligations, covenants and agreements under this Agreement.

12.      Time of Essence
         ---------------

12.1     Time is and shall always remain the essence of this Agreement.

13.      Entire Agreement
         ----------------

13.1 This Agreement constitutes the entire understanding and agreement between
the parties hereto, and supersedes all prior oral or written representations,
understandings or agreements between the parties with respect to engaging the
Contractor or the provision of Services by the Contractor to the Corporation.

14.      Severability
         ------------

14.1 If any provision of this Agreement is or becomes illegal, invalid or
unenforceable such provision shall be restricted in order to render it legal,
valid and enforceable or shall be severed from the Agreement so as not to affect
the validity or enforceability of the remainder of this Agreement.
15.      Previous Agreement
         ------------------

         All previous consulting agreements among the parties are hereby
terminated and have no further force and effect.

16.      Independent Contractor Status
         -----------------------------

16.1 The Contractor acknowledges that the Contractor is solely an independent
contractor, and none of the employees, principals or agents of the Contractor
are employees of the Corporation or are entitled to any employment rights or
benefits from the Corporation. Because of the Contractor's independent
contractor status, no tax withholding shall be made from the payments
contemplated by Article 5 hereof. The Contractor agrees to indemnify the
Corporation for any tax liabilities or penalties the Corporation may incur by
reason of the Contractor's performance hereunder.

17.      No Authority to Bind Corporation
         --------------------------------

17.1 The Contractor has no authority to enter into contracts or agreements on
behalf of the Corporation by virtue of this Agreement. Nothing in this Agreement
shall be construed as creating a joint venture, agency or partnership
relationship between the Parties hereto.

18.      Compliance with Laws
         --------------------

18.1 The Contractor agrees to comply with all applicable federal, provincial,
state, county, municipal and local laws, ordinances, regulations, and codes in
performance of the Contractor's obligations under this Agreement, including laws
and executive orders relating to equal opportunity and non-discrimination in
employment. The Contractor further agrees to hold harmless and indemnify the
Corporation or the appropriate subsidiary or affiliate of the Corporation
against any loss or damage, including reasonable solicitors' fees, that may be
sustained by reason of the failure of Contractor or the Contractor's
employee(s), agent(s), or subcontractor(s) to comply with any laws, ordinances,
regulations and codes.

<PAGE>

19.      Other Matters
         -------------

19.1 For the purpose of Subsection 1.1(b) and Articles 6, 7, 15, 16, 17, 18 and
Schedule "A" and "B", notwithstanding the specific definition in this Agreement,
any reference to Contractor is deemed to include each of 1334945 Ontario Limited
and the Principal, both singularly and collectively and the obligations arising
hereunder shall be joint and several. In consideration of the covenants of the
Principal, the Corporation shall pay the remuneration provided for hereunder as
directed by the Principal pursuant to Section 5.1.

20.      Schedule
         --------

20.1 The parties acknowledge that Schedule "A" and "B" form part of this
Agreement and is incorporated herein by reference.

     IN WITNESS WHEREOF the parties hereto have executed this Agreement as of
the date first written above.

                                                    1334945 ONTARIO LIMITED
                                                    -----------------------
                                                    By: GREG MAVROUDIS
                                                    ------------------
                                                    Title:    PRESIDENT
                                                    -------------------

----------------------
Witness                                             GREG MAVROUDIS

                                                     TENGTU INTERNATIONAL CORP.
                                                     --------------------------

                                                     By: PAK CHEUNG
                                                         ----------
                                                     Title: CHAIRMAN and CEO
                                                            ----------------
----------------------
Witness

----------                                           /s/----------
                                                        PAK CHEUNG

                                  SCHEDULE "A"

         1.       Scope of Services
                  -----------------

The Contractor's services shall be provided as required to fulfil the
Contractor's obligations to the Corporation hereunder and shall consist of
management Consulting including providing the services of the Principal as the
VP of Business Development during the initial six month period responsible for
Execution and Administration of Corporate Business Strategy, Growth Management
and Strategic Relationships with Industry Partners, including certain
expectations of the corporation outlined in Schedule C.

         2.       Fee for Services
                  ----------------

The Corporation agrees to pay the to the Contractor during the term of this
Agreement a monthly fee of Ten Thousand US Dollars ($ 10,000) per month for the
services rendered hereunder,

<PAGE>

         3.       Address
                  -------

The Contractor's and Principal's address for notices under this agreement is:

                             1334945 ONTARIO LIMITED
                             16 Hazel Avenue
                             Toronto, Ontario
                             M4E 1C5
                             Canada

                                            Attention:        Greg Mavroudis
                                            ----------        --------------

         4.  Non-Competition Areas and Duration:

         Canada, the United States, Korea, Japan, Taiwan, Hong Kong and China,
         for a period of one year from the date of termination of this
         Agreement.

                                  SCHEDULE "B"

                                    PART ONE

                           STOCK COMPENSATION PACKAGE

The Corporation shall issue 250,000 of its common shares (under short form S-8,
subject to the Company's (Tengtu) eligibility), from its treasury, to the
Contractor under the following terms and conditions:

1/ The Corporation, following a 6 month evaluation period, which starts on April
1st, 2000 of the Contractors performance of assigned duties and tasks,
determines to engage the Contractor, for a period of 24 months, as described in
the Independent Contractors Agreement, above.

2/ Upon determining to engage the Contractor under the terms of the above
described agreement, 10% or 25,000 shares of the above 250,000 share
compensation package issued by the Corporation shall be considered vested.

3/ Following the 12 month anniversary of entering into a 24 month Independent
Contractors Agreement, 45% (112,500 shares) of the 250,000 shares shall be
considered to be vested.

4/ Following the 24 month anniversary of entering into a 24 month Independent
Contractors Agreement, 45% (112,500 shares) of the 250,000 shares shall be
considered to be vested.

                                    PART TWO

                                       "A"

                        STOCK OPTION COMPENSATION PACKAGE

The Corporation shall grant a Stock Option Plan (under short form S8, subject to
the Company's (Tengtu) eligibility), to the Contractor with the closing market
price of June 9th 2000 the equivalent of $1.00 per share, of said option, under
the following terms and conditions:

1/ The Corporation, shall grant an irrevocable Stock Option to the Contractor,
in the amount of 37,500 shares of the Corporation in 90 days of the 6 month
evaluation period, with an exercise price, as above, less the maximum allowed
discount by SEC.

2/ The Corporation, shall grant an irrevocable Stock Option to the Contractor,
in the amount of 37,500 shares of the Corporation after 90 days and before the
180 days expire on the 6 month evaluation period which started on April 1st
2000, with an exercise price, as above, less the maximum allowed discount by
SEC.

<PAGE>

                                       "B"

1/ The Corporation, shall grant a Stock Option Plan to the Contractor, once the
Corporation's Compensation Committee approves such plan. It is anticipated that
such plan will get formed within 90 days of this agreement and it will be at the
executive level.

                                   PART THREE

1/ In the event that the Corporation is sold or changes control both the stock
and option play described in Schedule "B" will vest immediately as if the 24
month period had occurred.

2/ Once the 24 month agreement is in effect and this agreement is terminated
without cause, then the Corporation will reimburse the Contractor in accordance
to section 7.1(a) and under the following terms:

         a.       After six months: 25% of the remaining unvested Stock and
                  Stock Option Package

         b.       After twelve months: 50% of the remaining unvested Stock and
                  Stock Option Package.

         c.       Alter eighteen months: 100% of the remaining unvested Stock
                  and Stock Option Package.

         3/ When the Corporation spins off subsidiaries, the contractor will be
entitled to a pro rata stock and options in the new entity.

                                   SCHEDULE C

The following sets out the expectations for the initial 6 months of trial
period, broken down into two sub stages. The consultant shall coordinate with
Pak Cheung and various TIC subsidiaries on formulating a detailed operating
plan. There is no penalty to either party for early termination during this
trial period, but there are bonuses for accomplishments.

         1. Construction of a virtual development office using Internet
facilitated high speed communication methodologies to manage the product
development processes involving China, Hong Kong, and North America:

         2. First stage products: demonstration versions to be completed in
June, 2000 and ready for implementation in September of 2000.

                                            Children's browser
                                            Children's search engines
                                            Home-School communication software
                                                     system complete with
                                                     Message Boards, Chat Room
                                                     and integration with the
                                                     school Data Base system.
                                             School web site templates

         3. First stage strategic partners: involves selecting interested
parties with appropriate technology suitable for China and Hong-Kong in the
following 2 major areas.

                                            Set top box manufacturers & related
                                            operating software ISP who has the
                                            ability to turn a TV cable network
                                            into an
                                                     Internet infrastructure

         4. Second stage products: demonstration versions completed in September
2000 and implementation in December 2000.

                                            Portal hardware and software
                                            e-Business software, front-end and
                                            back end Set top box based Internet
                                            operating software

         5. Second stage strategic partners: certain key partners to be in place
according to an implementation plan to be formulated.

                                            Technology partners
                                            Operator partners
                                            Content partners
                                            other partners

<PAGE>Exhibit (10) - Netopia, Inc. License Agreement

LICENSE AGREEMENT

This License Agreement ("Agreement) is made and entered into this 21st day of
June, 2000 ("Effective Date"), by and between Netopia, Inc., a Delaware
corporation, with offices at 2470 Mariner Square Loop, Alameda, CA 94501
("Netopia"), and Tengtu International Corporation, a Delaware corporation, with
offices at Suite 1450, 155 University Avenue, Toronto, Ontario, Canada M5H 3B7
("Licensee").

         The parties agree as follows:

                  1.       LICENSE GRANT
                  ----------------------

         Netopia grants to Licensee, and Licensee accepts from Netopia, a
fee-bearing nonexclusive license right to promote and otherwise market Netopia's
web site product and service (such product and service are referred to herein as
(the "Service") to Licensee's customers, under the terms of Netopia's end user
license and service agreement. Netopia's web site product and service is the
then current web site service with a URL http://site.netopia.com, including any
ancillary or related software, products, services, information or technology as
the same is made available by Netopia in Netopia's reasonable discretion.
         When Licensee's customers agree to subscribe to and pay Netopia's
on-going monthly fees for the Service, or any part thereof, Netopia shall host
web sites under a Service name and using a domain name and URL configuration for
the web sites as agreed by the parties. Netopia's hosted web sites shall include
all vertical market content made available generally by Netopia. All rights not
expressly granted are reserved by Netopia and its licensors.

                  2.       FEES AND PAYMENT
                  -------------------------

         (a) Licensee agrees to pay Netopia a one time, non-refundable fee in
the amount of $125,000 with respect to the right to promote and market the
Service. Licensee agrees to pay this fee in three (3) payments as follows: (i)
$45,000 within forty-five (45) days after the Effective Date; (ii) $40,000
within ninety (90) days after the Effective Date; and the remaining $40,000
within one hundred twenty (120) days after the Effective Date.
         (b) Except as expressly agreed otherwise by the parties in writing,
each party will bear all of its own expenses arising from its performance of its
obligations and exercise of its rights under this Agreement, including without
limitation, the costs of occupancy, facilities, hosting hardware, software, work
space, utilities, payroll, management, clerical, production services, supplies,
overhead, marketing and like expenses.

                  3.       WARRANTY
                  -----------------

         (a) Netopia warrants to Subscribers that for ninety (90) days following
the first use of the Service by a Subscriber, the Service will perform
substantially the functions described in the related documentation provided by
Netopia on its web site. Netopia does not warrant that the Service will meet any
Subscribers' specific requirement or that its operation will be uninterrupted or
error-free. Netopia expressly is not responsible for any problems, including any
problem which otherwise would be a breach of warranty, caused by (i) interaction
of the Service with non-Netopia software; or (ii) accident, abuse, or
misapplication.
         (b) Netopia expressly makes no warranties with respect to the technical
equipment and infrastructure (including but not limited to server and storage
hardware, network connectivity and access to the internet via high speed access)
required to host web sites and e-stores for Licensee's customers, and for
operations support.

                  4.       INDEMNIFICATION FOR INFRINGEMENT
                  -----------------------------------------

         (a) Netopia represents and warrants that: (i) the Service does not
infringe any patent or copyright or violate the trade secret or other
proprietary rights of any third party; (ii) Netopia or Netopia's licensors own
all patents, copyright trade secrets and other proprietary rights in and to the
Service; and (iii) Netopia possesses the legal right and authority to execute
and perform this Agreement.
                                        1

<PAGE>

         (b) Netopia agrees to indemnify, hold harmless, and defend Licensee
from and against any and all damage costs, and expenses, including reasonable
attorneys' fees and costs, incurred in connection with a claim of a third party
which, if true, would constitute a breach of the foregoing warranties
(hereinafter "Infringement Claims"), provided Licensee notifies Netopia promptly
in writing of the existence of an Infringement Claim and grants Netopia sole
control over its defense or settlement, and Licensee provides reasonable
assistance in the defense of the same.
         (c) Following notice of an Infringement Claim, Netopia shall use
commercially reasonable efforts to procure for Licensee the right to continue to
market the allegedly infringing Service, or Netopia may replace or modify the
Service with a functionally comparable product or service to make it
non-infringing. In the event that Netopia does not or cannot comply with this
Section 4(c), Netopia shall refund to Licensee all fees paid, in which case this
Agreement and the license granted hereunder shall terminate immediately, and
Netopia shall have no further obligations to Licensee.
         (d) Netopia shall have no liability for any Infringement Claim based on
combination of the Service with a non-Netopia service, program or data, if such
infringement Claim would have been avoided by the exclusive use of the Service.
         (e) The provisions of this Section 4 state Netopia's entire liability
to Licensee and Subscribers with regard to Infringement Claims.

                  5.       COPYRIGHT NOTICES; TRADEMARKS; SERVICE NAME
                  ----------------------------------------------------

         (a) Licensee shall market the Service under a name (or names) as agreed
by Netopia and Licensee. Licensee agrees to use the appropriate trademark symbol
(either (R) or "tm" in a superscript) and clearly indicate Netopia's ownership
of the Service (i.e. "Powered by Netopia") and its trademark(s) whenever the
Service name is first mentioned in any advertisement, brochure or in any other
manner in connection with the Service. Licensee shall not at any time use any
name or trademark confusingly similar to a Netopia trademark, trade name and/or
product name and agrees that its use of such Netopia trademarks, trade names
and/or product names shall not directly or indirectly create in Licensee any
right, title or interest therein. Licensee shall not use or display any Netopia
logo in its materials without Netopia's prior written permission. Licensee shall
not use or imitate the trade dress of Netopia's products. Licensee shall
undertake no action that will interfere with or diminish Netopia's right, title
and/or interest in Netopia's trademark(s), trade name(s), product name(s) or
service name(s). Upon Netopia's request, Licensee also shall provide Netopia
with samples of all Licensee literature that uses Service name(s).
         (b) Licensee agrees that during the term of this Agreement, without
Netopia's prior written approval, it will not market the Service using the words
"room", planet", "dwp", "Opasia", "nvo", "mynvo", or the phrases (in their
entirety) "web center", "small business web center", "business web now" or
"netweb" as a descriptor for the Product.

                  6.       TERM
                  -------------

         Licensee's right to market and promote the Service as set forth herein
shall continue in perpetuity until terminated by either party. At any time
following two (2) years after the Effective Date, Licensee may terminate this
Agreement for any reason or for its convenience upon sixty (60) days prior
written notice to Netopia. Netopia may terminate this Agreement upon sixty (60)
days prior written notice to Licensee in the event that Netopia ceases to make
the Service available generally to its customers.

                  7.       DEFAULT AND OBLIGATIONS UPON TERMINATION
                  -------------------------------------------------

         (a) This Agreement will terminate if either party materially breaches
this Agreement or any provision hereof, and the breach has not been cured within
thirty (30) days after notice to the breaching party. The rights and remedies of
the parties provided herein shall not be exclusive and are in additional to any
other rights and remedies provided by this Agreement.
         (b) Upon termination of this Agreement for any reason, Licensee shall
cease immediately to market and promote the Service in any manner.
         (c) Upon termination of this Agreement for any reason, any unpaid
amount of the fee set forth in Section 2(a) shall be immediately due and
payable.

                                        2

<PAGE>

         (d) All provisions of this Agreement that remain to be performed or by
their nature would be intended to continue to be applicable shall survive
termination or expiration of this Agreement.

                  8.       LIMITATION OF LIABILITY AND REMEDY; DISCLAIMER OF
                           WARRANTIES
                  ----------------------------------------------------------

         (a) LIMITATION OF LIABILITY. NOTWITHSTANDING ANYTHING TO THE CONTRARY
HEREIN, NEITHER PARTY NOR ITS AGENTS, REPRESENTATIVES OR EMPLOYEES SHALL BE
LIABLE TO THE OTHER PARTY PURSUANT TO THIS AGREEMENT FOR AMOUNTS REPRESENTING
LOSS OF REVENUES, LOSS OF PROFITS, LOSS OF BUSINESS OR INDIRECT, CONSEQUENTIAL,
SPECIAL OR PUNITIVE DAMAGES OF THE OTHER PARTY, EVEN IF THE OTHER PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, REGARDLESS OF WHETHER ANY REMEDY
PROVIDED IN THIS AGREEMENT FAILS OF ITS ESSENTIAL PURPOSE, IN NO EVENT WILL
NETOPIA'S LIABILITY UNDER THIS AGREEMENT EXCEED THE AGGREGATE AMOUNT OF
PAYMENTS, ACTUALLY PAID BY LICENSEE TO NETOPIA, REGARDLESS OF WHETHER A CLAIM IS
BROUGHT IN TORT, CONTRACT OR OTHERWISE.

         (b) DISCLAIMER OF WARRANTIES. EXCEPT AS EXPRESSLY PROVIDED HEREIN,
NETOPIA HEREBY SPECIFICALLY DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, WITH
REGARD TO THE SERVICE AND ANY HARDWARE AND RELATED PRODUCT AND SERVICES,
INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OF FITNESS OF THE SERVICE
FOR A PARTICULAR PURPOSE OR USE.

                  9.       NOTICES
                  ----------------

All notices, authorizations and requests in connection with the Agreement shall
be deemed given on the day they are: (i) deposited on the United States mails,
postage prepaid, certified or registered, return receipt requested, (ii) sent by
air express courier, charges prepaid, and addressed to the addresses set forth
below, or (iii) sent by fascimile transmission, with confirmation of receipt.
Either party may change its address for notices by written notice to the other
party.

         Licensee:         Tengtu International Corporation
                           Suite 1450, 155 University Avenue
                           Toronto, Ontario
                           Canada M5H 3B7

                           Attention: Greg Mavroudis
                           Telephone: (416) 362-3966
                           FAX: (416) 362) 4708
                           e-mail: gmavroudis@tengtu.com

         Netopia:          Netopia, Inc.
                           2470 Mariner Square Loop
                           Alameda, CA 94501

                           Attention: Alan B. Lefkof
                           Telephone: (510) 814-5110
                           FAX: (510) 814-5021
                           e-mail: Alefkof@netopia.com

                  10.      GOVERNING LAW; ARBITRATION; ATTORNEYS' FEES
                  ----------------------------------------------------

         (a) The rights and obligations under this Agreement shall be governed
by the laws of the State of California including California conflicts of law
rules, and by United States law and

                                        3

<PAGE>

international treaties governing copyrights. The application of this Agreement
of the Unites Nations Convention on Contracts for the International Sale of
Goods is hereby expressly excluded.
         (b) Any dispute arising out of or relating to this Agreement shall be
referred for resolution by binding arbitration under the Commercial Arbitration
Rules of the American Arbitration Association. Any arbitration shall be
conducted by one arbitrator appointed pursuant to such rules, and shall be held
in San Francisco, California. The arbitrator shall be authorized to award
reasonable attorneys' fees and costs to the prevailing party in any arbitration.
The award of any arbitration shall be final and binding, and enforceable in any
court having jurisdiction over the party against which an award is sought to be
enforced.
                  11.      SUPPORT; MARKETING OBLIGATIONS
                  ---------------------------------------

         (a) When Licensee's customers agree to subscribe to any pay Netopia's
on-going monthly fees for the Service, Netopia will be responsible for all
activities associated with hosting web sites for such Subscribers.
         (b) Licensee agrees to provide specific content relating to the needs
of its vertical market specialty for use by Netopia in enhancing its vertical
market content packages. Licensee further agrees that Netopia may use such
specific content in any manner in Netopia's sole discretion without any
limitation or restriction, and that Netopia shall have no obligation to make any
payment to Licensee or related to the use of such specific content provided by
Licensee.
         (c) Licensee agrees that on its web site and through other conventional
means, Licensee actively will market and promote the Service to its customers.
         (d) With respect to Subscribers, Netopia will be responsible for all
activities associated with customer account sign-up, credit card billing and
collections, and template deployment. In addition, Netopia will provide its
standard support services directly to Subscribers by e-mail.
         (e) Netopia will be responsible for providing and maintaining all
technical equipment and infrastructure (including but not limited to service and
storage hardware, network connectivity and access to the internet via high speed
access) required to host web sites and e-stores.
         (f) Netopia will maintain all customer information relating to
Subscribers to the Service. Licensee and Netopia will have equal rights to use
customer database records.
         (g) Promptly after execution of this Agreement and at such time as
agreed by the parties, the parties agree to issue a joint press release, as
approved by both parties, with respect to the transactions contemplated by this
Agreement. Except for such press release, Netopia has no marketing obligations
under this Agreement.

                  12.      GENERAL
                  ----------------

         (a) This Agreement may not be assigned or sublicensed in whole or in
part by either party without the prior written consent of the other party, which
consent shall not be withheld unreasonably, provided, however, that either party
may assign its rights and obligations hereunder without the other party's prior
written consent to a successor entity in connection with a merger or sale of
substantially all assets (a "Merger") provided that the successor agrees in
writing to perform all obligations of the assigning party. Notwithstanding the
foregoing, in the event of a Merger with an entity that is a direct competitor
of the other party, such party may terminate this Agreement effective on the
date the Merger is consummated upon prior written notice to the other party.
         (b) This Agreement constitutes the entire agreement between the parties
with respect to the subject matter hereof and merges all prior and
contemporaneous communications. It shall not be modified except by a written
agreement dated subsequent to the Effective Date and signed on behalf of
Licensee and Netopia by their respective duly authorized representatives.
         (c) Each party agrees that the terms of this Agreement are confidential
and agrees not to disclose such terms to any third party other than its
attorneys and independent accountants, and as otherwise may be required by law
or regulation, without the other party's prior written approval.
         (d) If any provision of this Agreement shall be held to be illegal,
invalid or unenforceable, the remaining provisions shall remain in full force
and effect, and the provision shall be deemed amended to substitute a valid
provision so as to implement the intent of the parties.

                                        4

<PAGE>

         (e) No waiver of any breach of any provision of this Agreement shall
constitute a waiver of any prior, concurrent or subsequent breach of the same or
any other provisions hereof, and no waiver shall be effective unless made in
writing and signed by an authorized representative of the waiving party.
         (f) The section headings are intended for convenience only and shall
not be deemed to supersede or modify any provisions.

         IN WITNESS WHEREOF, the parties have caused their duly authorized
representatives to execute this Agreement as of the Effective Date. All signed
copies of th is Agreement shall be deemed originals.

         NETOPIA, INC.                          TENGTU INTERNATIONAL CORPORATION

         By:------------------------            By:-----------------------------
         Alan B. Lefkof                         Greg Mavroudis
         President and CEO                      VP Business Development

                                        5

<PAGE>

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