Document:

EMPLOYMENT AGREEMENT

         THIS AGREEMENT is made and entered into as of December 15, 2001,
between Radica Enterprises Ltd., a Nevada corporation (dba Radica USA Ltd.),
having an office at 13628A Beta Road, Dallas, Texas 75244, and Jeanne Olson,
residing at 4337 San Carlos, Dallas, Texas 75205.

         WHEREAS, Radica is engaged through its subsidiaries in designing and
manufacturing electronic and mechanical gifts and games for worldwide sale, and
ODM manufacturing for others;

         WHEREAS, Radica USA is engaged in the marketing, sales and distribution
products manufactured by Radica;

         WHEREAS, Employee has substantial executive management experience;

         WHEREAS, Radica USA desires to secure the services of Employee, and
Employee is willing to provide such services, each upon the terms and subject to
the conditions set forth in this Agreement.

         NOW, THEREFORE, in consideration of the premises, the parties agree as
follows:

1.   DEFINITIONS. For the purposes of this Agreement, the parties hereby adopt
     the following definitions:

     (a) "Cause" means:

          (i)     breach by Employee of a fiduciary obligation to any member of
                  Radica Group;

          (ii)    commission by Employee of any act or omission to perform any
                  act (excluding the omission to perform any act attributable to
                  Employee's Total Disability) which results in serious adverse
                  consequences to any member of Radica Group;

          (iii)   breach of any of Employee's agreements set forth in this
                  Agreement including, but not limited to, continual failure to
                  perform substantially his duties with Radica Group, excessive
                  absenteeism and dishonesty;

          (iv)    any attempt by Employee to assign or delegate this Agreement
                  or any of the rights, duties, responsibilities, privileges or
                  obligations hereunder without the prior written consent of
                  Radica (except in respect of any delegation by

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                  Employee of his employment duties hereunder to other employees
                  of Radica Group in accordance with its usual business
                  practice);

          (v)     Employee's arrest or indictment for, or written confession of,
                  a felony or any crime involving moral turpitude under the laws
                  of the United States or any state or of Hong Kong;

          (vi)    death of Employee;

          (vii)   declaration by a court that Employee is insane or incompetent
                  to manage his business affairs; or

          (viii)  the filing of any petition or other proceeding seeking to find
                  Employee bankrupt or insolvent.

     (b) A "Change in Control" shall be deemed to have occurred if, at any time
after the commencement of employment hereunder: (i) any person or group of
persons (as defined in Section 13(d) and 14(d) of the Securities Exchange Act of
1934, as amended (the "1934 Act")) together with its affiliates, excluding
employee benefit plans of Radica, is or becomes, directly or indirectly, the
"beneficial owner" (as defined in rule 13d-3 promulgated under the 1934 Act) of
securities of Radica representing 50% or more of the combined voting power of
Radica's then outstanding securities; or (ii) as a result of a proxy contest,
merger, consolidation, sale of assets, tender offer or exchange offer or as a
result of any combination of the foregoing, Directors who were members of the
Board of Directors of Radica two years prior to such time and new Directors
whose election or nomination for election by Radica's shareholders was approved
by a vote of at least two-thirds of the Directors still in office who were
Directors two years prior to such time, cease to constitute at least two-thirds
of the members of the Board of Directors of Radica; or (iii) the shareholders of
Radica approve a merger or consolidation of Radica with any other corporation or
entity regardless of which entity is the survivor, other than a merger or
consolidation which would result in the voting securities of Radica outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or being converted into voting securities of the surviving entity)
at least 50% of the combined voting power of the voting securities of Radica or
such surviving entity outstanding immediately after such merger or
consolidation; or (iv) the shareholders of Radica approve a plan of complete
liquidation or winding-up of Radica or an agreement for the sale or disposition
by Radica of all or substantially all of Radica's assets.

     (c) "Dollars" and "US$" means United States dollars.

     (d) "Employee" means Jeanne Olson.

     (e) "Good Reason" shall mean the occurrence after a Change in Control of
any of the following events without the Employee's express written consent: (i)
the assignment to the Employee of duties inconsistent with her position and
status as an executive of the

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Radica Group, or a substantial alteration in the nature, status or prestige of
the Employee's responsibilities with the Radica Group from those in effect
immediately prior to such Change in Control; or (ii) a reduction in the
Employee's base salary or bonus at the rate most recently approved by the Board
prior to the occurrence of such Change in Control; or (iii) any other material
adverse change in the terms or conditions, including location and travel, of the
Employee's employment hereunder following the occurrence of such Change in
Control.

     (f) "1994 Plan" means the 1994 stock option plan adopted by Radica, as
amended from time to time.

     (g) "Radica" means Radica Games Limited, a Bermuda company.

     (h) "Radica Group" means Radica, Radica Innovations and any other
corporation or other entity which at the relevant time is more than fifty
percent (50%) owned, directly or indirectly, by Radica.

     (i) "Radica USA" means Radica Enterprises Ltd., a Nevada corporation.

     (j) "Termination" means, according to the context, the termination of this
Agreement or the cessation of rendering employment services by Employee.

     (k) "Total Disability" means Employee shall become disabled to an extent
which renders her unable to perform the essential functions of her job, with or
without reasonable accommodation, for a cumulative period of twelve (12) weeks
in any twelve (12) month period.

2.   EMPLOYMENT.

     (a)  Employee has previously been employed by Radica USA as Senior Vice
          President, Marketing and Operations. All prior employment agreements
          and arrangements between Radica Group and Employee shall be superceded
          and merged into this Agreement, but so that employment of Employee
          shall continue without any break in service. Employee shall be
          promoted to the title of Executive Vice President and General Manager
          of Radica USA. Employee's principal employer within Radica Group shall
          be Radica USA where she will act as general manager. Duties will
          include directing the design effort of our suppliers including Radica
          China Ltd. and working closely with the design team at Disc Inc.
          During her period of employment, employee also agrees to serve in
          other executive capacities for Radica Group as may be determined by
          the Board of Directors of Radica ("Board"). Employee shall perform
          services of an executive nature consistent with her offices with
          Radica Group as may from time to time be assigned or delegated to her
          by the Board.

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     (b)  Employee will devote her full business time and attention to his
          duties under this Agreement.

     (c)  Employee shall perform her duties under this Agreement principally in
          or around Dallas, Texas. It is contemplated Employee will frequently
          travel to carry out her duties under this Agreement, including travel
          to the offices of Radica Group in Hong Kong, England, New York City
          and California. Air travel and other travel arrangements will comply
          with current Radica Group policies respecting class of travel, etc.

     (d)  Radica USA will provide Employee, including her spouse and children,
          with medical and dental benefits, and life insurance program, as
          provided to other officers of Radica Group.

     (e)  Employee shall have four (4) weeks paid vacation during each year of
          this Agreement taken at such times as mutually convenient to Employee
          and Radica USA.

3.   TERM OF EMPLOYMENT.

     (a)  This Agreement and Employee's employment hereunder shall commence as
          of December 15, 2001 and continue until the second anniversary of such
          date, and shall be renewed annually at each December 15 anniversary
          date (commencing December 15, 2002) for an additional one year period
          so that the term hereof at each renewal date shall be a two year
          period, unless a party to this Agreement gives notice at least ninety
          (90) days prior to such renewal date that this Agreement shall not be
          renewed, in which case this Agreement shall terminate at the end of
          the ensuing year.

     (b)  Notwithstanding Paragraph (a) above, this Agreement may be sooner
          terminated by Radica USA for Cause, by Employee without consent of
          Radica USA, by Radica USA without Cause, or by Radica USA in the event
          of the Total Disability of Employee. This Agreement may also be sooner
          terminated by Employee following any Change in Control and if
          following such Change in Control Employee has Good Reason for such
          Termination; such Termination by Employee is herein called a
          "Termination/Change in Control."

     (c)  On termination of this Agreement pursuant to Paragraph (a) above, or
          by Radica USA for Cause, or by Employee without consent of Radica USA,
          all benefits and compensation shall cease as of the date of such
          Termination. On termination of this Agreement by Radica USA without
          Cause or by Employee for Good Reason in the event of a
          Termination/Change in Control or in event of Total Disability of
          Employee, all benefits and compensation shall continue at the rate
          most recently approved by the Board for twelve (12) months after such
          a Termination.

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4.   BUSINESS EXPENSE REIMBURSEMENT. Employee will be entitled to reimbursement
     by Radica USA for the reasonable business expenses paid by her on behalf of
     Radica Group in the course of her employment hereunder on presentation to
     Radica USA of appropriate vouchers (accompanied by receipts or paid bills)
     setting forth information sufficient to establish:

     (i)     the amount, date, and place of each such expense;

     (ii)    the business reason for each such expense and the nature of the
             business benefit derived or expected to be derived as a result
             thereof; and

     (iii)   the names, occupations, addresses, and other information sufficient
             to establish the business relationship to Radica Group of any
             person who was entertained by Employee.

5.   COMPENSATION. Radica USA agrees to pay Employee, and Employee agrees to
     accept from Radica USA, during the first year after December 15, 2001, for
     the services to be rendered by her hereunder a minimum salary at the rate
     of US $200,000 per annum payable as determined by the payroll policies of
     Radica USA. Employee shall receive annual salary reviews by the Board
     provided that such salary shall not be reduced below US $200,000 per year.

     Employee shall be considered for annual bonuses pursuant to the Radica
     Games Bonus Policy for officers of Radica Group. Such Radica Games Bonus
     Policy describes potential amounts of bonus which may be earned in respect
     of each fiscal year, but with no mandatory amount for any particular
     employee.

     If Radica Group institutes a retirement, bonus or other benefit plan which
     applies generally to executive officers of Radica Group of similar status
     as Employee, Employee shall be entitled to participate therein, but not to
     the extent such benefits would be duplicative of the benefits herein.

     All payments by Radica USA shall be subject to required withholdings
     including taxes.

6.   STOCK OPTIONS.

     (a)  (i) Nothing in this Agreement shall affect stock options previously
          granted to Employee, which shall continue to be governed by the 1994
          Plan and the terms of the grant of such stock options.

          (ii) Additionally, upon execution of this agreement Radica shall grant
          to Employee an option to purchase forty thousand (40,000) shares of
          the common stock of Radica at the then applicable market price,
          subject to the terms and conditions of this Section 6 and the 1994
          Plan. Such stock options together with

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<PAGE>

          the 60,000 options that were previously granted upon initial
          employment under this clause (ii) are herein called the "Stock
          Options".

         (iii) The Stock Options shall vest and become exercisable 33 1/3% per
         year for each year Employee is employed by Radica Group following the
         date of grant, commencing at the first anniversary of the date of
         grant.

     (b)  The number of shares subject to the Stock Options will be adjusted for
          stock splits and reverse splits; provided that such number of shares
          shall not be adjusted if Radica should otherwise change or modify its
          capitalization, including but not limited to the issuance by Radica of
          new securities (including options or convertible securities), ESOP's
          or other employee stock plans. It is the intent of the parties that
          the stock subject to the Stock Options shall be subject to dilution,
          except for stock splits and reverse splits.

     (c)  Any other provision hereof to the contrary notwithstanding, (i) as of
          the date of Termination in the event of Termination pursuant to
          Section 3(a) or Termination by Radica USA for Cause or by Employee
          without consent of Radica USA, or (ii) twelve (12) months after the
          date of Termination in the event of Termination by Radica USA without
          Cause or by Employee for Good Reason in the event of a
          Termination/Change in Control or the Total Disability of Employee
          (each of such applicable dates being called a "Determination Date"),
          Employee shall forfeit the Stock Options (measured by percentages of
          the stock subject to the Stock Options) and they shall expire as
          follows:

               (A)  if the Determination Date is within the first year after the
                    date the Stock Option is granted (the "Grant Date") then
                    Employee shall forfeit 100% of the stock subject to the
                    Stock Option;

               (B)  if the Determination Date is after the end of said first
                    year and within the second year after the Grant Date, then
                    Employee shall forfeit 66 2/3% of the stock subject to the
                    Stock Option;

               (C)  if the Determination Date is after the end of said second
                    year and within the third year after the Grant Date, then
                    Employee shall forfeit 33 1/13% of the stock subject to the
                    Stock Option;

     (d)  In any event each Stock Option shall expire to the extent not
          previously exercised on the tenth anniversary of the Grant Date.
          Otherwise, Employee may at any time within ninety (90) days following
          the Determination Date, exercise her right to purchase stock subject
          to the Stock Options, but subject to the foregoing provisions
          respecting vesting and forfeitures.

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<PAGE>

     (e)  Employee shall have no right to sell, alienate, mortgage, pledge, gift
          or otherwise transfer the Stock Options or any rights thereto, except
          by will or by the laws of descent and distribution, and except as
          specifically contemplated in the 1994 Plan. In any event, any transfer
          must comply with applicable state and federal securities laws.

7.   NON-COMPETE; CONFIDENTIALITY.

     (a)  During the term of employment of Employee, and for a period of one
          year after any Termination (other than in the event of a
          Termination/Change in Control) of such relationship or employment for
          any reason (either by Employee or Radica), with or without cause,
          voluntarily or involuntarily (the period of employment plus such
          additional year being called the "Prohibition Period"), Employee
          agrees that she will not engage in, be employed by or become
          affiliated with, in the United States of America or anywhere else in
          the world, directly or indirectly, any person or entity which offers,
          develops, performs or is engaged in services, products or systems
          which are competitive with the business of Radica Group or any other
          products, services or systems hereafter developed, produced or offered
          by Radica Group, to be determined at the relevant time but not later
          than the commencement of such one-year period ("Companies' Business").
          During the Prohibition Period, Employee shall not, directly or
          indirectly, become an owner or member, to the extent of an ownership
          interest of five percent (5%) or more, of a joint venture,
          partnership, corporation or other entity, or a consultant, employee,
          agent, officer or director of a corporation, joint venture,
          partnership or other entity, which is competitive with, directly or
          indirectly, the Companies' Business.

     (b)  Employee understands and agrees that she has been exposed to (or had
          access to), and may be further exposed to (or have access to),
          confidential information, knowhow, knowledge, data, techniques,
          computer software and hardware, and trade secrets of Radica Group or
          related to the Companies' Business, including, without limitation,
          customer or supplier requirements, notes, drawings, writings, designs,
          plans, specifications, records, charts, methods, procedures, systems,
          price lists, financial data, records, and customer or supplier lists
          (collectively "Confidential Information"). Notwithstanding the above,
          the following shall not be considered "Confidential Information"
          within the meaning of this section: (a) information known to Employee
          or to the public at the date of this Agreement; and (b) information
          which hereafter becomes known to the public through no fault of
          Employee. Accordingly, except as permitted or required in the
          performance of her duties for Radica Group, Employee agrees not to
          disclose, divulge, make public, utilize, communicate or use, whether
          for her own benefit or for the benefit of others, either directly or
          indirectly, any Confidential Information relating to the Companies's
          Business unless specifically authorized in writing by Radica to do so.

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<PAGE>

     (c)  Employee shall promptly communicate and disclose to Radica Group all
          information, inventions, improvements, discoveries, knowhow, methods,
          techniques, processes, observations and data ("Proprietary
          Information") obtained, developed, invented or otherwise discovered by
          her in the course of this employment. All written materials, records,
          computer programs or data and documents made by Employee or coming
          into her possession during the employment period concerning any
          Proprietary Information used or developed by Radica Group, or by
          Employee, shall be the sole exclusive property of Radica Group.
          Employee shall have no right, title or interest therein
          notwithstanding that she may have purchased the medium on which such
          Proprietary Information is recorded.

     (d)  Upon Termination, Employee shall not take with her any of the
          Confidential Information or Proprietary Information. Upon Termination,
          or at any time upon the request of Radica, Employee shall promptly
          deliver all Confidential Information and Proprietary information, and
          all copies thereof, to Radica Group with no cost or charge to Radica
          Group. Upon request by Radica USA, Employee shall promptly execute and
          deliver any documents necessary or convenient to evidence ownership of
          the Confidential Information and Proprietary Information by Radica
          Group, or the transfer and assignment of the Confidential Information
          and Proprietary Information to Radica Group without cost or charge.
          The provisions of this Section 7 shall survive any Termination of this
          Agreement.

8.   BENEFIT AND BINDING EFFECT. This Agreement shall inure to the benefit of
     and be binding upon Radica USA, their successors and assigns, including but
     not limited to any corporation, person or other entity which may acquire
     all or substantially all of the assets and business of Radica USA or any
     corporation with or into which they may be consolidated or merged. Radica
     USA may assign their rights and obligations to another present or future
     member of Radica Group. The rights and obligations of Employee hereunder
     may not be delegated or assigned, except that Employee may, without the
     prior consent of any member of Radica Group, assign to her spouse, or to a
     family member, proceeds of payments resulting from her death or a
     disability which, in either case, occurs after a termination of this
     Agreement.

9.   COUNTERPARTS. This Agreement may be executed in counterparts, each of which
     shall be deemed an original but all of which shall constitute one and the
     same instrument.

10.  GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
     ACCORDANCE WITH THE LAW OF THE STATE OF NEVADA WITHOUT REFERENCE TO THE
     CHOICE OF LAW PRINCIPLES THEREOF.

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<PAGE>

11.  ENTIRE AGREEMENT. This Agreement sets forth and is an integration of all of
     the promises, agreements, conditions and understandings among the parties
     hereto with respect to all matters contained or referred to herein, and all
     prior promises, agreements, conditions, understandings, warranties or
     representations, oral, written, express or implied, are hereby superseded
     and merged herein.

12.  VALIDITY OF PROVISIONS. Should any provision(s) of this Agreement be void
     or unenforceable in whole or in part, the remainder of this Agreement shall
     not in any way be affected thereby, and such provision(s) shall be modified
     or amended so as to provide for the accomplishment of the provision(s) and
     intentions of this Agreement to the maximum extent possible.

13.  MODIFICATIONS OR DISCHARGE. This Agreement shall not be deemed waived,
     changed, modified, discharged or terminated in whole or in part, except as
     expressly provided for herein or by written instrument signed by all
     parties hereto.

14.  NOTICES. Any notice which either party may wish to give to the other
     parties hereunder shall be deemed to have been given when actually received
     by the party to whom it is addressed. Notices hereunder may be sent by
     courier, mail, telefax, telegram or telex, to the following addresses, or
     to such other addresses as the parties may from time to time furnish to
     each other by like notice:

                  To:   Radica USA Ltd.
                        180 South Lake Avenue
                        Suite 440 Pasadena, California 91101 U.S.A.
                        Attention:  Patrick S. Feely
                        Telephone:  (626) 744-1150
                        Telefax:    (626) 744-1155

                  To:   Employee:

                        Jeanne Olson
                        4337 San Carlos
                        Dallas, Texas 75205
                        U.S.A.
                        Telephone   (214) 528-7726
                        Telefax:    (214) 520-9961

15.  NUMBER; GENDER. In this Agreement, the masculine shall include the feminine
     and neuter and vice versa, and the singular shall include the plural and
     vice versa, as the context may reasonably require or permit.

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         IN WITNESS WHEREOF, the parties have executed this Amendment and
Restatement as of the day and year first above written.

                                       RADICA ENTERPRISES LTD. (dba Radica USA)

                                       By: /S/ PAT FEELY on behalf of Radica USA
                                          --------------------------------------

                                       JEANNE OLSON

                                       /S/ JEANNE OLSON
                                       -----------------------------------------DATE: 25 MAY 2001
                                -----------------

                                RADICA UK LIMITED

                                  JOHN DOUGHTY

                              EMPLOYMENT AGREEMENT

<PAGE>

                                    CONTENTS

CLAUSE                                                                      PAGE

1        DEFINITIONS                                                           1
2        EMPLOYMENT                                                            4
3        TERM OF EMPLOYMENT                                                    6
4        BENEFIT EXPENSE REIMBURSEMENT                                         6
5        COMPENSATION                                                          7
6        STOCK OPTIONS                                                         7
7        CONFIDENTIALITY AND RESTRICTIONS FOLLOWING TERMINATION                9
8        TERMINATION                                                          13
9        BENEFIT AND BINDING EFFECT                                           14
10       COUNTERPARTS                                                         14
11       GOVERNING LAW                                                        14
12       ENTIRE AGREEMENT                                                     15
13       VALIDITY OF PROVISIONS                                               15
14       MODIFICATIONS OR DISCHARGE                                           15
15       NOTICES                                                              15
16       NUMBER AND GENDER                                                    16
17       GENERAL PROVISIONS                                                   16

<PAGE>

                              EMPLOYMENT AGREEMENT

DATE                                                                 25 May 2001

PARTIES

1            RADICA UK LIMITED, an English company, having a registered address
             at The Old Stables, Munn's Farm, Cole Green, Herts SG14 2NL,
             England.

2            JOHN DOUGHTY who resides at 45 Peters Way, Knebworth, Hertfordshire
             SG3 6HP.

RECITALS

A            Radica is engaged through its subsidiaries in designing and
             manufacturing electronic and mechanical gifts and games for
             worldwide sale, and ODM manufacturing for others.

B            Employee is currently General Manager, Radica UK, and has
             substantial executive management experience.

C            Radica UK desires to secure the services of Employee, and Employee
             is willing to provide such services, each upon the terms and
             subject to the conditions set forth in this Agreement.

AGREEMENT

1            DEFINITIONS

             For the purposes of this Agreement, the parties hereby adopt the
             following definitions:

<PAGE>

     CAUSE:

             (i)     breach by Employee of a fiduciary obligation to any member
                     of Radica Group;

             (ii)    commission by Employee of any act or omission to perform
                     any act (excluding the omission to perform any act
                     attributable to Employee's Total Disability) which results
                     in serious adverse consequences to any member of Radica
                     Group;

             (iii)   breach of any of Employee's agreements set forth in this
                     Agreement including, but not limited to, continual failure
                     to perform substantially his duties with Radica Group,
                     excessive absenteeism and dishonesty;

             (iv)    any attempt by Employee to assign or delegate this
                     Agreement or any of the rights, duties, responsibilities,
                     privileges or obligations hereunder without the prior
                     written consent of Radica (except in respect of any
                     delegation by Employee of his employment duties hereunder
                     to other employees of Radica Group in accordance with its
                     usual business practice);

             (v)     Employee being charged or indictment for, or written
                     confession of, a felony or any crime involving moral
                     turpitude under the laws of the United Kingdom or Bermuda
                     or the United States or any state of Hong Kong other than
                     an offence under the Road Traffic Acts for which
                     non-custodial penalty is imposed;

             (vi)    death of Employee;

             (vii)   declaration by a court that Employee is insane or
                     incompetent to manage his business affairs; or

             (viii)  the filing of any petition or other proceeding seeking to
                     find Employee bankrupt or insolvent;

<PAGE>

             CHANGE IN CONTROL: shall be deemed to have occurred if, at any time
             after the commencement of employment hereunder: (i) any person or
             group of persons (as defined in Section 13(d) and 14(d) of the
             Securities Exchange Act of 1934, as amended (the "1934 Act"))
             together with its affiliates, excluding employee benefit plans of
             Radica, is or becomes, directly or indirectly, the "beneficial
             owner" (as defined in rule 13d-3 promulgated under the 1934 Act) of
             securities of Radica representing 50% or more of the combined
             voting power of Radica's then outstanding securities; or (ii) as a
             result of a proxy contest, merger, consolidation, sale of assets,
             tender offer or exchange offer or as a result of any combination of
             the foregoing, Directors who were members of the Board of Directors
             of Radica two years prior to such time and new Directors whose
             election or nomination for election by Radica's shareholders was
             approved by a vote of at least two-thirds of the Directors still in
             office who were Directors two years prior to such time, cease to
             constitute at least two-thirds of the members of the Board of
             Directors of Radica; or (iii) the shareholders of Radica approve a
             merger or consolidation of Radica with any other corporation or
             entity regardless of which entity is the survivor, other than a
             merger or consolidation which would result in the voting securities
             of Radica outstanding immediately prior thereto continuing to
             represent (either by remaining outstanding or being converted into
             voting securities of the surviving entity) at least 50% of the
             combined voting power of the voting securities of Radica or such
             surviving entity outstanding immediately after such merger or
             consolidation; or (iv) the shareholders of Radica approve a plan of
             complete liquidation or winding-up of Radica or an agreement for
             the sale or disposition by Radica of all or substantially all of
             Radica's assets.

             EMPLOYEE: John Doughty;

             GOOD REASON: shall mean the occurrence after a Change in Control of
             any of the following events without Employee's express written
             consent: (i) the assignment to Employee of duties inconsistent with
             his position and status as an executive of the Radica Group, or a
             substantial alteration in the nature, status or prestige of
             Employee's responsibilities with the Radica Group from those in
             effect immediately prior to such Change in Control; or (ii) a
             reduction in Employee's base salary or bonus at the rate most
             recently approved by the Board prior to the

<PAGE>

             occurrence of such Change in Control; or (iii) any other material
             adverse change in the terms or conditions, including location and
             travel, of Employee's employment hereunder following the occurrence
             of such Change in Control.

             1999 PLAN: the 1999 stock option plan adopted by Radica, as amended
             from time to time;

             RADICA: Radica Games Limited, a Bermuda company;

             RADICA GROUP: Radica and any other corporation or other entity
             which at the relevant time is more than fifty percent (50%) owned,
             directly or indirectly, by Radica;

             RADICA UK: Radica UK Limited, an English company, having a
             registered address at The Old Stables, Munn's Farm, Cole Green,
             Herts SG14 2NL, England.

             RESTRICTED TERRITORIES: the United Kingdom, the Channel Islands,
             the Isle of Man, the Republic of Ireland, France, Germany, Austria,
             Belgium, Czech Republic, Greece, Holland, Italy, Portugal,
             Scandinavia, Spain, Switzerland and any other country in which
             Radica or any company within the Radica Group is resident or
             otherwise carries on business at the Termination Date;

             TERMINATION: according to the context, the termination of this
             Agreement or the cessation of rendering employment services by
             Employee;

             TOTAL DISABILITY: Employee shall become disabled to an extent which
             renders him unable to perform the essential functions of his job,
             with or without reasonable accommodation, for a cumulative period
             of twelve (12) weeks in any twelve (12) month period.

2            EMPLOYMENT

2.1          Commencing 25 May 2001, Radica UK hereby employs Employee and
             Employee hereby accepts employment by Radica UK to serve as
             Managing

<PAGE>

             Director. In such capacity, Employee has responsibility for sales
             and distribution of Radica's products in Europe. Employee shall
             perform services of an executive nature consistent with his offices
             at the level of at least Vice President within the Radica Group as
             may from time to time be assigned or delegated to him by the Board
             of Directors of Radica ("Board").

2.2          Employee will, unless prevented by sickness, injury or other
             incapacity or otherwise agreed by the Board, devote his full
             business time and attention to his duties under this Agreement.
             There are no normal hours of work applicable to Employee but he
             shall work such hours as may be necessary for the proper
             performance of his duties. Employee shall not be entitled to
             receive any additional remuneration for work outside normal office
             hours. Employee agrees, for the purposes of Regulation 5 of The
             Working Time Regulations 1998 (the "Regulations"), that Regulation
             4 of the Regulations does not apply to him. Radica UK and Employee
             agree that Employee's consent, for the purposes of this Clause 2.2,
             shall continue indefinitely Provided That Employee may withdraw
             such consent at any time by giving Radica UK three months' notice
             of his wish to do so.

2.3          Employee shall perform his duties under this Agreement principally
             in the United Kingdom and Europe. It is contemplated that Employee
             will frequently travel to carry out his duties under this
             Agreement, including travel to the offices of Radica subsidiaries
             in Dallas, Texas, Hong Kong and California. Air travel and other
             travel arrangements will comply with current Radica Group policies
             respecting class of travel, etc.

2.4          Radica Group will provide Employee, including his spouse and
             children with medical and dental benefits, as provided to other
             officers of similar seniority of Radica Group.

2.5          Radica Group will pay to Employee a car allowance of (pound)9,600
             per annum to be paid in equal monthly instalments in arrears
             (subject to deduction of applicable tax and national insurance),
             with each such instalment paid at the same time as instalments of
             salary in accordance with Clause 5.1.

<PAGE>

2.6          Employee shall have five (5) weeks paid vacation during each year
             of this Agreement taken at such times as mutually convenient to
             Employee and Radica Group. This vacation is in addition to paid UK
             holidays that are allowed under Radica policy.

3            TERM OF EMPLOYMENT

3.1          This Agreement and Employee's employment hereunder shall commence
             as of 25 May 2001 and shall continue thereafter unless and until
             terminated by either party upon six (6) months' notice in writing
             to the other party, such notice expiring at any time.

3.2          Notwithstanding Clause 3.1 above, this Agreement may be sooner
             terminated by Radica UK for Cause.

3.3          On termination of this Agreement pursuant to Clause 3.1 above, or
             by Radica UK for Cause, all benefits and compensation shall cease
             as of the date of such Termination.

3.4          On termination of this Agreement by Employee for Good Reason in the
             event of a Change of Control, all salary and benefits shall
             continue for the period of six months following such Termination
             provided that Employee agrees that he shall not be entitled to any
             other severance payment or benefits of payment in lieu of notice by
             reason of such Termination.

4            EXPENSE REIMBURSEMENT

4.1          Employee will be entitled to reimbursement by Radica Group for the
             proper business expenses paid by him on behalf of Radica Group in
             the course of his employment hereunder on presentation to Radica
             Group of appropriate vouchers (accompanied by receipts or paid
             bills) setting forth information sufficient to establish:

4.1.1        the amount, date, and place of each such expense;

<PAGE>

4.1.2        the business reason for each such expense and the nature of the
             business benefit derived or expected to be derived as a result
             thereof; and

4.1.3        the names, occupations, addresses, and other information sufficient
             to establish the business relationship to Radica Group of any
             person who was entertained by Employee.

5            COMPENSATION

5.1          Radica UK agrees to pay Employee, and Employee agrees to accept
             from Radica UK, for the services to be rendered by him hereunder a
             minimum salary at the rate of (pound)80,000 per year payable in
             equal monthly instalments in arrears. Employee shall receive annual
             salary reviews by the Board on or around 15 February to take effect
             on 1 April in each year commencing 2002, provided that such salary
             shall not be reduced below (pound)80,000 per year.

5.2          Employee shall be considered for annual bonuses pursuant to the
             Radica Games Bonus Policy for officers of Radica Group. Such Radica
             Games Bonus Policy describes potential amounts of bonus which may
             be earned in respect of each fiscal year, but with no mandatory
             amount for any particular employee. .

5.3          If Radica Group institutes a retirement, bonus or other benefit
             plan which applies generally to executive officers of Radica Group
             of similar status as Employee, Employee shall be entitled to
             participate therein, but not to the extent such benefits would be
             duplicative of the benefits herein.

5.4          All payments by Radica Group shall be subject to required
             withholdings including taxes.

6            STOCK OPTIONS

6.1          Employee has been granted 26,400 stock options under the 1999 Plan
             (the "Initial Stock Options").

<PAGE>

6.2          Radica shall, following the signing of this Agreement, grant to
             Employee an additional option to purchase 6,000 shares of the
             common stock of Radica at $3.00 per share (representing the current
             market price as of the date of this Agreement) subject to the terms
             and conditions of this Clause 6 and the 1999 Plan and subject to
             the prior approval of the Board of Directors of Radica. Such stock
             options under this Clause 6.2 and the Initial Stock Options are
             herein called the "Stock Options".

6.3          The Stock Options shall vest and become exercisable 33.3% per year
             for each year Employee is employed by Radica Group following the
             date of grant, with the first vesting date occurring on the first
             anniversary of the date of grant of the Stock Options.

6.4          The number of shares subject to the Stock Options will be adjusted
             for stock splits and reverse splits Provided that such number of
             shares shall not be adjusted if Radica should otherwise change or
             modify its capitalisation, including but not limited to the
             issuance by Radica of new securities (including options or
             convertible securities), ESOPs or other employee stock plans. It is
             the intent of the parties that the stock subject to the Stock
             Options shall be subject to dilution, except for stock splits and
             reverse splits.

6.5          Any other provision hereof to the contrary notwithstanding (i) as
             of the date of Termination in the event of Termination pursuant to
             Clause 3.1 or Termination by Radica UK for Cause or by Employee
             without consent of Radica UK, or (ii) six (6) months after the date
             of Termination in the event of Termination by Radica UK without
             Cause or by Employee for Good Reason in the event of a
             Termination/Change in Control or the Total Disability of Employee
             (each of such applicable dates being called a "Determination Date")
             Employee shall forfeit the Stock Options (measured by percentages
             of the stock subject to the Stock Options) and they shall expire as
             follows:

6.5.1        if the Determination Date is within the first year after the date
             the Stock Option is granted (the "Grant Date") then Employee shall
             forfeit 100% of the stock subject to the Stock Option;

<PAGE>

6.5.2        if the Determination Date is after the end of said first year and
             within the second year after the Grant Date, then Employee shall
             forfeit 66.6% of the stock subject to the Stock Option;

6.5.3        if the Determination Date is after the end of said second year and
             within the third year after the Grant Date, then Employee shall
             forfeit 33.3% of the stock subject to the Stock Option.

6.6          In any event each Stock Option shall expire to the extent not
             previously exercised on the tenth anniversary of the Grant Date.
             Otherwise, Employee may at any time within ninety (90) days
             following the Determination Date, exercise his right to purchase
             stock subject to the Stock Options, but subject to the foregoing
             provisions respecting vesting and forfeitures.

6.7          Employee shall have no right to sell, alienate, mortgage, pledge,
             gift or otherwise transfer the Stock Options or any rights thereto,
             except by will or by the laws of descent and distribution, and
             except as specifically contemplated in the 1999 Plan. In any event,
             any transfer must comply with applicable state and federal
             securities laws.

6.8          Upon Termination, Employee shall have no claim against Radica for
             loss arising out of ineligibility to exercise any Stock Options
             granted to him or otherwise in relation to the 1999 Plan or any
             other stock option plan adopted by Radica and the rights of
             Employee shall be determined by the provisions of this Clause 6 and
             the rules of the 1999 Plan.

6.9          In the event of any conflict between the rules of the 1999 Plan and
             the terms of this Clause 6, the terms of this Clause 6 shall take
             precedence.

7            CONFIDENTIALITY AND RESTRICTIONS FOLLOWING TERMINATION

7.1          Employee understands and agrees that he has been exposed to (or had
             access to), and may be further exposed to (or have access to),
             confidential information, knowhow, knowledge, data, techniques,
             computer software and hardware, and trade secrets of Radica Group,
             including, without limitation, customer or supplier

<PAGE>

             requirements, notes, drawings, writings, designs, plans,
             specifications, records, charts, methods, procedures, systems,
             price lists, financial data, records, and customer or supplier
             lists (collectively "Confidential Information"). Notwithstanding
             the above, the following shall not be considered "Confidential
             Information" within the meaning of this sub-Clause: (i) information
             known to Employee or to the public at the date of this Agreement;
             and (ii) information which hereafter becomes known to the public
             through no fault of Employee. Accordingly, except as permitted or
             required in the performance of his duties for Radica Group,
             Employee agrees not to disclose, divulge, make public, utilise,
             communicate or use, whether for his own benefit or for the benefit
             of others, either directly or indirectly, any Confidential
             Information relating to Radica Group's business unless specifically
             authorised in writing by Radica to do so.

7.2          Employee acknowledges that during the course of his employment he
             will be privy to Confidential Information and that he will make,
             maintain and develop personal knowledge of, influence over and
             valuable contacts with customers, suppliers, staff and third
             parties. Employee therefore covenants with Radica UK that:

7.2.1        he will not in the Restricted Territories for the period of one
             year following Termination directly or indirectly in competition
             with Radica UK or Radica Group engage in business with or be in any
             way interested in or connected with any concern, undertaking, firm
             or body corporate which engages in or carries on within any part of
             the Restricted Territories any business which competes with any
             business carried on by Radica UK or Radica Group as at Termination
             in which Employee was involved on behalf of Radica UK or Radica
             Group at any time within the twelve months immediately preceding
             Termination and in particular (but without limitation) the business
             of the manufacture and distribution of peripherals and accessories
             to the video games and PC games market;

7.2.2        he will not in the Restricted Territories for the period of one
             year following Termination directly or indirectly:-

<PAGE>

             7.2.2.1      interfere with or, in competition with Radica UK or
                          Radica Group in relation to any business which
                          competes with any business carried on by Radica UK or
                          Radica Group at Termination in which Employee was
                          involved on behalf of Radica UK or Radica Group at any
                          time within the twelve months immediately preceding
                          Termination, offer or agree to provide goods or
                          services of any description to, or solicit or
                          endeavour to entice away from Radica UK or Radica
                          Group the custom of any person, firm or body corporate
                          which, at any time during the period of twelve months
                          immediately preceding Termination, has been a customer
                          or client of, or in the habit of dealing with, Radica
                          UK or Radica Group or which, at any time during that
                          period, was to his knowledge negotiating with Radica
                          UK or Radica Group in relation to the provision of
                          goods or services by Radica UK or Radica Group;

             7.2.2.2      interfere or seek to interfere with contractual or
                          other trade relations between Radica UK or Radica
                          Group and any of its or their respective suppliers in
                          existence or under negotiation at any time during the
                          period of twelve months immediately preceding
                          Termination;

             7.2.2.3      solicit the services of or endeavour to entice away
                          from Radica UK or Radica Group any director, senior or
                          managerial employee or consultant of Radica UK or
                          Radica Group known personally to the Executive
                          (whether or not such person would commit any breach of
                          his contract of employment or engagement by reason of
                          leaving the service of such company) or knowingly
                          employ, assist in or procure the employment by any
                          other person, firm or body corporate of any such
                          person.

7.3          The Executive agrees that the restrictions contained in Clause 7.2
             shall apply in relation to all customers and suppliers with whom he
             personally has had dealings on behalf of Radica UK notwithstanding
             that such customers and suppliers may have been introduced to
             Radica UK or Radica Group by Employee before or

<PAGE>

             during his employment with Radica UK. He further agrees that if any
             of the restrictions in Clause 7.2 is held to be void or ineffective
             for any reason, but would be held to be valid and effective if part
             of its wording were deleted, that restriction shall apply with such
             deletions as may be necessary to make it valid and effective.

7.4          The restrictions contained in each sub-clause of Clause 7.2 shall
             be construed as separate and individual restrictions and shall each
             be capable of being severed without prejudice to the other
             restrictions or to the remaining provisions.

7.5          Employee waives irrevocably all Moral Rights (as defined in Chapter
             IV of Part I of the Copyright, Designs and Patents Act 1988) in any
             works produced during his employment in which copyright is vested
             in Radica UK or Radica Group whether by virtue of this Clause 7.5
             or otherwise. Employee shall promptly communicate and disclose to
             Radica Group all information, inventions, improvements,
             discoveries, knowhow, methods, techniques, processes, observations
             and data ("Proprietary Information") obtained, developed, invented
             or otherwise discovered by him in the course of this employment.
             All written materials, records, computer programs or data and
             documents made by Employee or coming into his possession during the
             employment period concerning any Proprietary Information used or
             developed by Radica Group, or by Employee, shall be the sole
             exclusive property of Radica Group. Employee shall have no right,
             title or interest therein notwithstanding that he may have
             purchased the medium on which such Proprietary Information is
             recorded.

7.6          Upon Termination, Employee shall not take with him any of the
             Confidential Information or Proprietary Information. Upon
             Termination, or at any time upon the request of Radica, Employee
             shall promptly deliver all Confidential Information and Proprietary
             information, and all copies thereof, to Radica Group with no cost
             or charge to Radica Group. Upon request by Radica, Employee shall
             promptly execute and deliver any documents necessary or convenient
             to evidence ownership of the Confidential Information and
             Proprietary Information by Radica Group, or the transfer and
             assignment of the Confidential Information and Proprietary
             Information to Radica Group without cost or charge. The provisions
             of this Clause 7 shall survive any Termination of this Agreement.

<PAGE>

7.7          Employee shall not without the previous written consent of the
             Board during the course of his employment:

7.7.1        directly or indirectly engage or be interested in any business
             other than that of Radica UK or any company in the Radica Group; or

7.7.2        hold any directorship of any company,

             save that he may be interested as a holder or beneficial owner
             solely for investment purposes of less than five per cent. of any
             securities of any company whose securities are listed or quoted on
             any recognised investment exchange in the United Kingdom or in the
             United States of America.

8            TERMINATION

8.1          Upon Termination Employee shall immediately resign without claim
             for compensation for loss of office (but without prejudice to any
             claim he may have against Radica UK arising out of any breach of
             this Agreement by Radica UK) from such offices held by him in
             Radica UK and any company in the Radica Group and from any other
             offices he may hold as nominee or representative of Radica UK and
             any company in the Radica Group and Radica UK is irrevocably
             authorised by Employee to appoint some person in his name and on
             his behalf to sign any documents and do any things necessary or
             requisite to give effect to such resignations.

8.2          If either party gives notice to terminate this Agreement, Employee
             agrees:

8.2.1        that for a period not exceeding six months the Board may in its
             absolute discretion require Employee not to perform any of his
             duties and may require him not to have any contact with clients or
             customers of Radica UK or Radica Group nor any contact (other than
             purely social contact) with such employees of Radica UK or Radica
             Group as the Board shall determine and/or may exclude him from any
             premises Radica UK or Radica Group (without providing any reason
             for doing so); and

<PAGE>

8.2.2        that such action on the part of Radica UK shall not constitute a
             breach of this Agreement nor shall Employee have any claim against
             Radica UK in respect of any such action;

             Provided always that throughout such period Employee's salary and
             other benefits shall not cease to be paid or provided (unless and
             until his employment is terminated).

8.3          Radica UK may elect to terminate the contract immediately and make
             a payment of salary in lieu of any applicable period of notice. For
             the avoidance of doubt, the right of Radica UK to make a payment in
             lieu of notice does not give rise to any right of Employee to
             receive such payment.

9            BENEFIT AND BINDING EFFECT

             This Agreement shall inure to the benefit of and be binding upon
             Radica UK and its successors and assigns, including but not limited
             to any corporation, person or other entity which may acquire all or
             substantially all of the assets and business of Radica UK or any
             corporation with or into which it may be consolidated or merged.
             Radica UK may assign its rights and obligations to another present
             or future member of Radica Group. The rights and obligations of
             Employee hereunder may not be delegated or assigned, except that
             Employee may, without the prior consent of any member of Radica
             Group, assign to his spouse, or to a family member, proceeds of
             payments resulting from his death or a disability which, in either
             case, occurs after a termination of this Agreement.

10           COUNTERPARTS

             This Agreement may be executed in counterparts, each of which shall
             be deemed an original but all of which shall constitute one and the
             same instrument.

11           GOVERNING LAW

             This agreement shall be governed by and construed in accordance
             with the law of England and Wales. The parties submit to the
             non-exclusive jurisdiction of the

<PAGE>

             English Courts as regards to any claim, dispute or matter out of or
             relating to this Agreement.

12           ENTIRE AGREEMENT

12.1         This Agreement sets forth and is an integration of all of the
             promises, agreements, conditions and understandings among the
             parties hereto with respect to all matters contained or referred to
             herein, and all prior promises, agreements, conditions,
             understandings, warranties or representations, oral, written,
             express or implied, are hereby superseded and merged herein.

12.2         This Agreement replaces all previous contracts of service or other
             employment arrangements between Employee and Radica UK or any
             member of the Radica Group, which shall have no further effect as
             from the date of this Agreement.

13           VALIDITY OF PROVISIONS

             Should any provision(s) of this Agreement be void or unenforceable
             in whole or in part, the remainder of this Agreement shall not in
             any way be affected thereby, and such provision(s) shall be
             modified or amended so as to provide for the accomplishment of the
             provision(s) and intentions of this Agreement to the maximum extent
             possible.

14           MODIFICATIONS OR DISCHARGE

             This Agreement shall not be deemed waived, changed, modified,
             discharged or terminated in whole or in part, except as expressly
             provided for herein or by written instrument signed by all parties
             hereto.

15           NOTICES

             Any notice which either party may wish to give to the other parties
             hereunder shall be deemed to have been given when actually received
             by the party to whom it is addressed. Notices by Employee to either
             Radica UK or Radica USA shall

<PAGE>

             be sent to both of them. Notices hereunder may be sent by courier,
             mail, telefax, telegram or telex, to the following addresses, or to
             such other addresses as the parties may from time to time furnish
             to each other by like notice:

             To.   Radica Games Limited
                   180 South Lake Avenue
                   Suite 440
                   Pasadena
                   California 91101
                   USA
                   Attention:  Patrick S Feely
                   Telephone:  (626) 744 1150
                   Telefax:    (626) 744 1155

             To:   Employee:

                   Mr. John Doughty
                   45 Peters Way,
                   Knebworth,
                   Hertfordshire SG3 6HP
                   Telephone:
                   Telefax:

16           NUMBER AND GENDER

             In this Agreement, the masculine shall include the feminine and
             neuter and vice versa, and the singular shall include the plural
             and vice versa, as the context may reasonably require or permit.

17           GENERAL PROVISIONS

17.1         Employee's previous employment shall count as part of his
             continuous employment with Radica UK.

17.2         A contracting out certificate is not in force in respect of
             Employee for the purposes of the Pension Schemes Act 1993.

IN WITNESS whereof, the parties have executed this Agreement as of the day and
year first above written.

<PAGE>

SIGNED by D.C.W. HOWELL             )
for and on behalf of RADICA UK      )       /S/ D.C.W. HOWELL
LIMITED                             )

SIGNED by JOHN DOUGHTY              )       /S/ JOHN DOUGHTY

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