Document:

INTERNATIONAL  DISTRIBUTION  AGREEMENT
                      (LOCALIZATION/REPRODUCTION   RIGHTS)

                             SCHOOL ZONE INTERACTIVE

SCHOOL  ZONE  INTERACTIVE               STAR  E  MEDIA  CORP.
1819  Industrial  Drive                 188  Technology  Drive,  Suite  B
Grand  Haven,  Michigan  49417          Irvine,  California  92618

("School  Zone")                        ("Publisher")

Attention:  Jonathan  Hoffman           Attention:  E.  G.  Abbadessa
Telephone  No.:  (616)  846-5030        Telephone  No.:   (949)  727-0012
Fax  No.:  (616)  846-3870              Fax  No.:  (949)  727-7454
E-mail  Address:  jh@schoolzone.com     E-mail  Address:

     School  Zone  is  in the business of developing interactive CD-ROM products
and related workbooks, including the Product (as hereinafter defined). Publisher
is  in  the  business  of distributing CD-ROM products and wishes to obtain, and
School  Zone  is  willing  to  grant  Publisher,  the limited right to develop a
Licensed  Product  (as  hereinafter  defined) and to reproduce, sell, market and
distribute  the  Licensed  Product  through normal channels in the Territory (as
hereinafter  defined)  on  the terms and conditions set forth in this Agreement.
Publisher  assures  School  Zone  that  it  has  the  facilities,  personnel and
expertise  necessary  to  develop,  reproduce,  sell,  market and distribute the
Licensed  Product  in  the  Territory.

     School  Zone  and  Publisher  agree  as  follows:

1.   DEFINITIONS.  As  used  in  this  Agreement:

     1.1     "Licensed  Product" shall have the meaning set forth  in  paragraph
3.1.

     1.2     "Product"  means  the  interactive  CD-ROM  product  of School Zone
specified  on  the  applicable  Schedule.

     1.3     "Sales  Representative"  shall  have  the  meaning  set   forth  in
paragraph 3.2.

     1.4     "Schedule"  shall  have  the  meaning  set  forth in paragraph 2.1.

     1.5     "Subdistributor" shall have the meaning set forth in paragraph 3.2.

     1.6     "Territory" means the country or countries listed on the applicable
Schedule.

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     1.7     "Trademarks"  means  the trademark SCHOOL ZONE INTERACTIVE and logo
and  other  trademarks  (if  any)  identified  on  the  applicable  Schedule.

2.   SCHEDULES  FOR  LICENSED  PRODUCTS.

     2.1     Schedules.  This  Agreement  sets  forth  the  terms and conditions
             ---------
under  which  School  Zone will grant Publisher certain rights in and to certain
Product(s)  as  designated  in  the  schedules  executed simultaneously with the
execution  of  this  Agreement  and such additional schedules as School Zone and
Publisher  may  subsequently  execute  from  time  to  time  (the  "Schedules").

     2.2     Conflicting Terms.  Each Schedule shall be a part of this Agreement
             -----------------
and  governed  by  the  terms  and  conditions of this Agreement.  If there is a
conflict  between the terms of this Agreement and any Schedule, the terms of the
Schedule  shall  control.

3.   LICENSE  GRANTS.

     3.1     Grants.  School  Zone grants to Publisher the right and license to:
             ------

     3.1.1   Languages.  To  prepare a localized  version  of the Product in the
language(s)  specified  on  the  applicable  Schedule  (the "Licensed Product").

     3.1.2   Markets.  To  reproduce  sell, market and  distribute the  Licensed
Product  in  all  markets  and normal channels of distribution in the Territory.

Unless otherwise specified on the applicable Schedule, these rights and licenses
shall  be  nonexclusive.

     3.2     Distributors/Sales Representatives.  Publisher shall have the right
             ----------------------------------
to  appoint  local subdistributors ("Subdistributors") and sales representatives
("Sales  Representatives")  in the Territory to effect the sale and distribution
of  the  Licensed  Product.

         3.2.1     Written  Agreements.   Publisher  shall enter into a  written
agreement with each Subdistributor and Sales Representative that conforms in all
respects  to  the  terms  of this Agreement. The written agreement shall (a) not
extend  beyond the term of the applicable Schedule; (b) provide for an automatic
termination  in  the  event  of  termination of this Agreement or the applicable
Schedule;  (c)  provide  that  School  Zone is a third party beneficiary of that
agreement;  and  (d)  provide that in the event of any inconsistency between the
terms  of  this  Agreement  and that agreement, the provisions of this Agreement
shall  govern.

         3.2.2     Guarantee.  Publisher  guarantees the performance  and  obli-
gations of  each  Subdistributor  and  Sales  Representative.

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     3.3     Retention  of Rights.  School Zone retains all rights not expressly
             --------------------
granted  hereunder.

     3.4     Territory.  Publisher  shall  not  sell  or distribute the Licensed
             ---------
Product  in  any  country outside the Territory and shall not knowingly sell the
Licensed  Product  to  parties  that intend to or are likely to resell them in a
country  outside  the  Territory.

     3.5     No  Modifications.  Except  as  otherwise  authorized in connection
             -----------------
with the development of the Licensed Product, Publisher shall not alter, edit or
otherwise  amend  in  any  manner  the  Licensed Product approved by School Zone
pursuant  to  paragraph  6.1.

4.   ROYALTY  PAYMENTS.

     4.1     Advance  Royalty Payment.  In consideration of the licenses granted
             ------------------------
hereunder,  Publisher  shall  pay  School  Zone a nonrefundable, advance royalty
payment  in the amount and in accordance with the payment terms set forth in the
applicable  Schedule.

     4.2     Royalties.  In  consideration  of  the  licenses granted hereunder,
             ---------
Publisher  shall  make royalty payments to School Zone for each Licensed Product
sold  or  otherwise  disposed  of  by  Publisher and any Subdistributor and Sale
Representative.  The  amount  of  the  royalties  shall  be  as specified in the
applicable Schedule.  Unless specified in the applicable Schedule, these royalty
payments  shall be due and payable quarterly within thirty (30) days after March
31,  June  30,  September 30 and December 31 of each year.  No payments shall be
required  under  this paragraph until the cumulative earned royalties exceed the
amount  of  the  advance  royalty  paid  by  Publisher  under paragraph 4.1. All
royalties due will accumulate interest at the rate of eighteen percent (18%) per
annum  compounded  daily  from  the  date  on  which  such  royalties  are  due.

     4.3     U.S  Currency.  All royalty payments shall be made in U.S. currency
             -------------
as  determined  on  the  basis  of  the  rate  of  exchange  published  by  the
International Monetary Fund in effect on the date payment is due, or, if payment
is  delayed,  on  (a)  the  date such payment is due, or (b) the date payment is
actually  made,  whichever  rate  results  in  a  higher  dollar  payment.

     4.4     Reports.  Publisher shall submit to School Zone a quarterly written
             -------
report  which  shall  accompany  the royalty payment described in paragraph 4.2.
The  written  report shall  set  forth  the  number  of  all  Licensed  Products
sold or otherwise  disposed of by Publisher and  any  Subdistributor  and  Sales
Representatives, and such other information as School Zone may from time to time
reasonably  request.

     4.5     Audit.  If  an  audit  discloses  an  understatement of any royalty
             -----
payment  due,  Publisher  shall  promptly pay School Zone the full amount of the
understated  amount.  If  the  audit discloses an understatement of five percent
(5%)  or  more  in  the royalty payment due for any period or periods, Publisher
shall  reimburse  School  Zone  for  the  cost  of  such  audit.

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     4.6     Duties.  Publisher  shall  have sole responsibility for collecting,
             ------
reporting  and  paying  any  and  all  taxes and any and all customs, import and
remittance duties or assessments arising or in any way related to the activities
contemplated  under  this  Agreement.

5.   TERM.

     5.1     This  Agreement.  This Agreement  shall be effective as of the date
        ---------------
of execution  by  both  parties and shall remain in full force and effect  until
the last  Schedule  has  expired  or  has  been  terminated.

     5.2     Schedule.  The  term for each Schedule shall be as specified in the
             --------
applicable  Schedule.

6.   QUALITY  ASSURANCE.  Publisher  shall be responsible for  the  localization
of,  and  the  development  of  the  Gold  Master  for,  each  Licensed Product.
Publisher  shall  submit  a  copy  of the Gold Master of the Licensed Product to
School Zone, for its review and approval, on or before the date set forth in the
applicable  Schedule.  School  Zone  shall  have  the  right  to  terminate  the
applicable  Schedule  immediately  upon written notice to Publisher if Publisher
fails  to submit the Gold Master to School Zone on or before the specified date.

     6.1     Approval  by School Zone.  Each Licensed Product manufactured, sold
             ------------------------
or  otherwise disposed of by Publisher shall be of a quality specified by School
Zone.  Upon  completing the development of the Licensed Product, Publisher shall
submit  to  School Zone two (2) copies of the Licensed Product and the packaging
to  be  used with the Licensed Product.  School Zone shall review the copies and
packaging and notify Publisher of any changes to be made to the Licensed Product
or its packaging, or both.  Publisher shall not sell or otherwise dispose of any
Licensed  Product  that  has  not  been approved by School Zone, within its sole
discretion,  pursuant  to  this  paragraph  6.1.

     6.2     Samples.  From  time  to  time  and  upon  request  by School Zone,
             -------
Publisher   shall   submit   additional  representative  samples  of   currently
distributed  Licensed  Product.  School  Zone shall promptly notify Publisher if
any  additional sample does not meet the quality of the approved initial samples
and  Publisher  shall  immediately  address  all  objections  of  School  Zone.

7.   RECORD  INSPECTION  AND  AUDIT.

     7.1     Books  and  Records.  Publisher shall keep, and shall contractually
             -------------------
obligate  each  Subdistributor  and Sales Representative to keep, full, complete
and  accurate  books  and  records  relating to the manufacture and sales of the
Licensed  Product.  Representative  of School Zone may, upon ten (10) days prior
written  notice, inspect, audit and make copies of such books and records during
normal  business  hours.

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     7.2     Inspection.  All  books  and  records relative to Publisher's obli-
             ----------
gations  hereunder  shall  be  maintained and made accessible to School Zone for
inspection  at  least  two  (2)  years  after  expiration or termination of this
Agreement.

8.   WARRANTIES  AND  OBLIGATIONS.

     8.1     Authority to Contract.  School Zone represents and warrants that it
             ---------------------
has the right and power to enter into this Agreement and that there are no other
agreements  with  any  other  party  in  conflict  with  such  grant.

     8.2     Non-Infringement.  School  Zone represents and warrants that it has
             ----------------
no  actual  knowledge  that  the  Product infringes any valid copyright or other
proprietary  rights  of  any  third  party.

     8.3     Promotion.  Publisher  represents  and warrants that it will use it
             ---------
best  efforts  to  promote,  market, advertise, sell and distribute the Licensed
Product  in  the  Territory and shall contractually obligate its Subdistributors
and  Sales  Representatives  to  use  their  best  efforts,  to promote, market,
advertise,  sell,  and  distribute  the  Licensed  Product  in  their respective
territories.  Publisher  and its Subdistributors and Sales Representatives shall
be  solely  responsible for the localization, manufacture, sale and distribution
of  the  Licensed  Product  and  will  bear  all  costs  associated  therewith.

9.   PRODUCT  MARKINGS.

     9.1     Intellectual  Property Laws.  Publisher shall fully comply with the
             ---------------------------
marking provisions of the intellectual property laws of the applicable countries
in  the  Territory.

     9.2     Copyright  Notices.  Publisher  shall  mark  all Licensed Products,
             ------------------
packaging  and  all advertising, promotional and display materials illustrating,
utilizing or featuring the Licensed Product with an appropriate copyright notice
which  will  preserve the interests of School Zone and Publisher in the Licensed
Products.  Distribution  shall  also comply with copyright instructions supplied
by  School  Zone.

     9.3     Trademarks.  School  Zone grants to Publisher, and Publisher agrees
             ----------
to  use,  the  Trademarks on all Licensed Products reproduced by Publisher.  The
Trademarks   shall  be  conspicuous  on  all  packaging,  and  all  advertising,
promotional  or  display  materials  illustrating,  utilizing  or  featuring the
Licensed  Products  and  shall be in compliance with School Zone's guidelines on
trademark  usage.  Publisher  shall identify each Trademark with the designation
"TM"  or "(R)" as specified by School Zone.  Each Licensed Product shall contain
a  marking  legend specified by School Zone stating that the Licensed Product is
manufactured  by  Publisher under license from School Zone.  Publisher shall not
use the Trademarks on any other product except the Licensed Products.  Publisher
acknowledges  School Zone's ownership of the Trademarks throughout the world and
the validity of School Zone's registration thereof, and shall not dispute or put
at  issue  such ownership or validity. Publisher shall not at any time apply for
or  obtain  the registration of any Trademark in any country or do any other act

<PAGE>
which  might  in  any  way  impair  the  rights  of  School  Zone  in and to the
Trademarks.  Upon  request  by  School  Zone,  Publisher  will  sign  all papers
prepared  at  School  Zone's  expense  and  perform  such  other  acts as may be
necessary  to  establish  Publisher  as  a  registered user of the Trademarks or
otherwise  acknowledge  School  Zone's  ownership  thereof.

10.  ADVERTISING AND PROMOTION.  In order for Publisher to  better  promote  the
Licensed  Product,  School  Zone  shall  provide  Publisher  at  no  charge  the
following:

     10.1    English  Version.  Licensed  Product  information  on  the  English
             ----------------
version  of  the  Product.

     10.2    Demonstration.  A  demonstration of  each of the titles included in
             -------------
the  Product  for  inclusion  in Publisher's publications, promotional material,
and/or  catalogs.

     10.3    Copies.  One  complete  copy of each of the titles included in  the
             ------
Product  for  each  Subdistributor  and  Sales  Representative

11.  NOTICES.  Any  notice  required  to  be given pursuant  to  this  Agreement
shall  be  in  writing  in  the  English  language  and  mailed  by certified or
registered  mail,  return  receipt  requested,  or  delivered by a international
express  courier  service.

12.  INTELLECTUAL  PROPERTY  RIGHTS.

     12.1    Ownership.  Except  as otherwise provided herein, School Zone shall
             ---------
own all right, title, and interest, including all copyrights, in the Product and
to  any  modifications  or improvements made thereto.  Publisher will not obtain
any  rights  in  the  Product  as  a  result  of its responsibilities hereunder.
Publisher acknowledges that School Zone shall own all right, title and interests
to  any  translations,  modifications,  or improvements or other changes made by
Publisher to the Product.  The parties agree to execute any documents reasonably
requested  by  the  other  party  to  effect  any  of  the  above  provisions.

     12.2    Exclusive  Rights.  Publisher acknowledges  School Zone's exclusive
             -----------------
rights in the Product and that the Product is unique and original to School Zone
and  that  School Zone is the owner thereof.  Unless otherwise permitted by law,
neither Publisher nor any of its Subdistributors or Sales Representatives shall,
at  any  time  during  or  after the effective Term of the Agreement, dispute or
contest,  directly or indirectly, School Zone's exclusive right and title to the
Product  or  the  validity  thereof.

13.  LICENSED  PRODUCT  WARRANTY.

     13.1    No  Warranties.  School  Zone  makes no warranties with respect  to
             --------------
the  Licensed  Product.  School  Zone does not extend to Publisher or any of its
Subdistributors or Sales Representatives any warranties, express or implied, and
Publisher  and  its  Subdistributors and Sales Representatives waive any and all
claims  to  damages.

<PAGE>
     13.2    Disclaimer.   SCHOOL  ZONE  DISCLAIMS  WARRANTIES  AND  CONDITIONS,
             ----------
EXPRESS  OR  IMPLIED, INCLUDING, WITHOUT LIMITATION, THOSE OF MERCHANTABILITY OR
FITNESS  FOR  A PARTICULAR PURPOSE.  IN NO EVENT SHALL SCHOOL ZONE BE LIABLE FOR
DAMAGES,  DIRECT  OR  INDIRECT,  INCLUDING  INCIDENTAL  OR CONSEQUENTIAL DAMAGES
SUFFERED  BY  PUBLISHER,  ANY SUBDISTRIBUTOR, SALES REPRESENTATIVES, END USER OR
OTHER  THIRD  PARTY  ARISING  FROM  BREACH  OF  WARRANTY  OR BREACH OF CONTRACT,
NEGLIGENCE,  OR  ANY  OTHER  LEGAL  GROUND  OF  ACTION.

     13.3    Liability.  Publisher  shall  be liable for any representations  or
             ---------
warranties  made  by  it or its Subdistributors or Sales Representatives without
the  approval  of  School Zone in its advertising, brochures, manuals, or by its
agents, employees, or representatives, whether in writing or orally with respect
to  each  Licensed  Product.

14.  CONFIDENTIALITY.

     14.1    Obligation.  It  is  recognized that during the course of its  work
              ----------
with  School  Zone,  Publisher  may  have occasion to conceive, create, develop,
review,  or  receive  information  that  is  considered  by  School  Zone  to be
confidential  or  proprietary  including  information  relating  to the Licensed
Product,  including  inventions,  patent,  trademark and copyright applications,
improvements,  know-how,  specifications,  drawings,  cost  data,  process  flow
diagrams,  customer  and  supplier lists, bills, ideas, and/or any other written
material  referring  to  same (the "Confidential Information").  Both during the
term  of  this  Agreement  and  thereafter,  Publisher  agrees  to  maintain  in
confidence  such  Confidential  Information  unless  or  until:

         14.1.1    It  shall  have  been  made  public  by  an  act  or omission
of a party  other  than  itself;  or

         14.1.2    Publisher receives  such  Confidential  Information  from  an
unrelated third  party  on  a  nonconfidential  basis.

     14.2    Reasonable  Precautions.   Publisher  further  agrees  to  use  all
             -----------------------
reasonable  precautions  to  ensure  that  all  such Confidential Information is
properly  protected  and  kept  from  unauthorized  persons  or  disclosure.

     14.3    Prohibitions.  Publisher  agrees  that  it will not, without  first
             ------------
obtaining  the prior written permission of School Zone, do any of the following:

         14.3.1    Directly or indirectly utilize such Confidential  Information
in  its  own  business;

         14.3.2    Manufacture  and/or  sell  any product that is based in whole
or  in  part  on  such  Confidential  Information;  or

<PAGE>
         14.3.3    Disclose  such Confidential Information to any third party.

     14.4    Subdistributors/Sales  Representatives.  Publisher shall have  each
             --------------------------------------
of  its  Subdistributors  and  Sales  Representatives  agree  to be bound by the
provisions  of  this  paragraph.

15.  COMPLIANCE  WITH  LOCAL  LAWS.

     15.1    Laws.  Publisher shall comply with all applicable laws and  regula-
              ----
tions in  the  Territory.

     15.2    Assistance.  Publisher  shall  cooperate promptly with School  Zone
              ---------
to  assist  School Zone in complying with all U.S. laws and laws of each country
in  the  Territory,  including but not limited to, all U.S. laws and regulations
relating  to  the  control  of  exports  or  the  transfer  of  technology.

16.  GOVERNMENT  APPROVAL.

     16.1    Approvals.  Where necessary, Publisher shall be required to  obtain
             ---------
all  governmental  approvals  required  to  fulfill  its  obligations under this
Agreement.  Such  undertaking  shall  be  at  Publisher's  sole  expense.

     16.2    Condition  Precedent.   If  approval by any governmental entity  in
             --------------------
the  Territory  is required before this Agreement is enforceable by School Zone,
then  such  government approval is a condition precedent to the validity of this
Agreement.  It is expressly understood and agreed that School Zone shall have no
obligations  under  this  Agreement  until  such  governmental approval has been
obtained  and  evidence  of  such  approval  has  been  received by School Zone.

     16.3    Material  Changes.  In  the  event  that  any  governmental  entity
             -----------------
requires  material  changes  to  be  made  to the terms of this Agreement or the
relationship between the parties, either party may terminate this Agreement upon
thirty  (30)  days'  written  notice.

17.  TERMINATION.

     17.1    Additional  Rights.  The  termination  rights  set  forth  in  this
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paragraph  20  are  in  addition  to the termination rights that may be provided
elsewhere  in  the  Agreement.

     17.2    By  School  Zone.  School Zone shall have the right to  immediately
             ----------------
terminate  this  Agreement  and/or  any  Schedule  by  giving  written notice to
Publisher  in  the  event  that  Publisher  does  any  of  the  following:

         17.2.1    Files  a petition in bankruptcy or its  adjudicated  bankrupt
or  insolvent,  or  makes  an  assignment  for  the  benefit of creditors, or an
arrangement  pursuant  to  any  bankruptcy  law, or if Publisher discontinues or
dissolves  its  business,  or  if  a  receiver is appointed for Publisher or for

<PAGE>
Publisher's  business  and  such  receiver  is not discharged within ninety (90)
days;

         17.2.2    Makes  any  change in the current  management  of  Publisher,
which  in the opinion of School Zone, substantially impairs School Zone's rights
under  this  Agreement,  or  has or threatens to damage the reputation of School
Zone,  or  the  Licensed  Product;

         17.2.3    Engages   in  any  illegal,  unfair,  or  deceptive  business
practices  or  unethical  conduct  whatsoever,  whether  or  not  related to the
Licensed  Product;

         17.2.4    Sells a majority interest  in  Publisher  to  a  third party;

         17.2.5    Breaches  paragraph  2.4  of  this  Agreement;

         17.2.6    Appoints   a   Subdistributor  or  Sales  Representative  not
approved  by  School  Zone;  or

         17.2.7    Breaches  paragraph  3.1  of  this  Agreement.

     17.3    Either  Party.  Either  party  may terminate this Agreement  and/or
             -------------
any Schedule on thirty (30) days' written notice to the other party in the event
of  a  breach  of  any  provision of this Agreement by the other party, provided
that,  during  the 30-day period, the breaching party fails to cure such breach.

18.  POST-TERMINATION  RIGHTS  AND  OBLIGATIONS.

     18.1    Inventory  Schedule.  Not  less than ninety (90) days prior to  the
             -------------------
expiration  of  the applicable Schedule or immediately upon termination thereof,
Publisher shall provide School Zone with a complete schedule of all inventory of
Licensed  Product  then  on  hand  (the  "Inventory").

     18.2    Cessation  of  Activities.  Upon  expiration  or  termination of  a
             -------------------------
Schedule,  Publisher  and  its  Subdistributors  and Sales Representatives shall
immediately  cease  the  manufacture,  sale  and  distribution  of  the Licensed
Product.  School  Zone shall have the option of purchasing any of the Inventory.

     18.3    Reversion  of  Rights.  Upon the expiration or termination of  this
             ---------------------
Agreement  and/or a Schedule, all rights and licenses granted to Publisher under
this  Agreement  shall immediately cease and terminate and immediately revert to
School  Zone  and  Publisher  and  its Subdistributors and Sales Representatives
shall  discontinue  all  uses  of  the  Licensed  Product.

<PAGE>
     18.4    Materials.  Upon  expiration  or termination of a Schedule,  School
             ---------
Zone  may  require  that  Publisher  transmit  to  School  Zone, at no cost, all
material  relating  to  the  Licensed  Product.

     18.5    Survival  of  Obligations.  It is understood and agreed that termi-
             -------------------------
ination or expiration of this Agreement and/or a Schedule shall  not  extinguish
any  of  Publisher's  obligations  under  this  Agreement  and/or the applicable
Schedule  that  by  their  terms  continue  after  the  date  of  termination or
expiration.

19.  INFRINGEMENTS.

     19.1    Right to Enforce.  Publisher agrees to notify School Zone  promptly
             ----------------
in  the  event  Publisher  becomes  aware of any infringements of the Product or
Licensed  Product.  School Zone shall have the right, in its sole discretion, to
prosecute  lawsuits  against  third  parties  for  infringement of School Zone's
rights  in  the  Product or Licensed Product.  All costs and expenses associated
with such lawsuits shall be borne by School Zone, which shall be entitled to any
recovery  received  as  a result thereof, whether by adjudication or settlement.

     19.2    Cooperation.  Publisher agrees to fully cooperate with School  Zone
             -----------
and  its representatives in the prosecution of any such suit.  School Zone shall
reimburse  Publisher  for the expenses incurred as a result of such cooperation.

20.  INDEMNITY.

     20.1    By  Publisher.  Publisher  agrees  to  defend, indemnify, and  hold
             -------------
School  Zone,  and  its  officers,  directors,  agents,  and employees, harmless
against  all costs, expenses, and losses (including reasonable attorney fees and
costs) incurred by School Zone arising out of (a) any breach by Publisher or any
Subdistributor  or  Sales  Representative  of  any representations or warranties
contained herein; (b) the manufacture, sale or other disposition of the Licensed
Product; or (c)  any  other  actions  or  inactions  of  Publisher  of  any Sub-
distributor  or  Sales  Representative.

     20.2    By School Zone.  School Zone agrees to defend, indemnify, and  hold
             --------------
Publisher,  and its officers, directors, agents, and employees, harmless against
all  costs,  expenses, and losses (including reasonable attorney fees and costs)
incurred  through  claims  of third parties against Publisher arising out of any
breach  by  School Zone of any representations or warranties contained herein or
as  a  result  of  any  of  School  Zone's  actions  or  inactions.

21.  INDEPENDENT  CONTRACTOR.  Publisher's  performance  of its duties and obli-
gations  under this Agreement and the performance  of  its  Subdistributors  and
Sales   Representatives  are   in  a  capacity  as  an  independent  contractor.
Accordingly,  nothing  contained  in  this  Agreement  shall  be  construed   as
establishing  an employer/employee, a partnership, agency, brokerage, or a joint
venture  relationship  between  Publisher,  and  its  Subdistributors  and Sales
Representatives,  and  School  Zone.

22.  GOVERNING LAW AND JURISDICTION.  This Agreement  shall be governed  by  the
laws  of  Michigan,  USA.  All  disputes  hereunder  shall  be  resolved  in the

<PAGE>
applicable  state  or  federal  courts  of Michigan.  The parties consent to the
jurisdiction  of  such  courts,  agree to accept service of process by mail, and
waive  any  jurisdictional  or  venue  defenses  otherwise  available.

23.  AGREEMENT BINDING ON SUCCESSORS.  This Agreement shall be  binding  on  and
shall  inure  to  the  benefit  of  the parties hereto, and their heirs, admini-
strators,  successors,  and  assigns.

24.  WAIVER.  No  waiver  by either party of any default shall be  deemed  as  a
waiver  of  any  prior  or subsequent default of the same or other provisions of
this  Agreement.

25.  SEVERABILITY.  If  any provision hereof is held  invalid  or  unenforceable
by  a  court  of  competent  jurisdiction,  such invalidity shall not affect the
validity or operation of any other provision and such invalid provision shall be
deemed  to  be  severed  from  the  Agreement.

26.  ASSIGNABILITY.  The  license  granted hereunder is  personal  to  Publisher
and  may  not be assigned by any act of Publisher or by operations of law except
with  the  consent  of  School  Zone.

27.  INTEGRATION.  This  Agreement  (including all  Schedules)  constitutes  the
entire  understanding  of  the  parties,  and  revokes  and supersedes all prior
agreements  between  the  parties and is intended as a final expression of their
Agreement.  It  shall not be modified or amended except in writing signed by the
parties  hereto  and  specifically  referring to this Agreement.  This Agreement
shall  take  precedence  over  any  other  documents  that  may  be  in conflict
therewith.

28.  FOREIGN  CORRUPT PRACTICE ACT. Publisher certifies that neither it, nor any
of  its  directors,  officers,  employees,  Subdistributors,  Sales  Representa-
tives, or agents, is an official,  agent,  or  employee  of  any  government  or
governmental  agency  or political party or a candidate for any political office
on  the  date  of this Agreement. Publisher shall promptly notify School Zone of
the  occurrence  of  any  event  that would or may result in an exception to the
foregoing  representation.  Publisher  shall not, directly or indirectly, in the
name  of,  on  behalf  of,  or  for the benefit of School Zone offer, promise or
authorize  to  pay,  or  pay any compensation, or give anything of value to, any
official, agent, or employee of any government or governmental agency, or to any
political party, or officer, employee, or agent thereof. Publisher shall require
each  of  its  directors,  officers,  employees,  Subdistributors,  Sales Repre-
sentatives,  and  agents  to  comply with  the  provisions  of  this  paragraph.
Notwithstanding  any  other  provision  of  this  Agreement,  any  breach of the
provisions  of  this  paragraph  shall  entitle  School  Zone  to terminate this
Agreement  effective  immediately  on  notice  to  Publisher.

Publisher  represents  and  agrees  that  it has not offered, given, promised to
give,  or  authorized  giving,  and  will  not  offer, give, promise to give, or
authorize giving, directly or indirectly, any money or anything else of value to
any  government  official, political party, political official, or candidate for
political  office  in  connection  with  its  activities  under  this Agreement.

<PAGE>
29.  GOVERNMENTAL  REQUIREMENTS.  Publisher  shall  assist  in  obtaining import
licenses, export licenses, currency exchange approvals, customs approvals, visas
and  other  governmental  approvals and permits within the Territory that may be
necessary  to  permit  the  sale  of  the  Licensed  Product.

30.  ENGLISH  LANGUAGE  CONTROLS.  This Agreement is entered into in the English
language  and in the event it is ever translated into another language and there
is  a  dispute as to the meaning or interpretation of this Agreement as a result
of  the  translation,  the  original  English  language  version  shall control.

31.  DUPLICATE  ORIGINALS.  Duplicate  originals  of  this  Agreement  shall  be
signed  by both parties, each of which shall constitute an original.  Each party
shall  retain  one  of  the  originals

32.  AMENDMENTS.  No  provision  of  this Agreement may be amended  or  modified
except by a written agreement signed by duly authorized representatives  of  the
parties.

     IN  WITNESS  WHEREOF, the parties have signed this Agreement as of the date
set  forth  below  their  respective  signatures.
SCHOOL ZONE INTERACTIVE            STAR E MEDIA CORP.

By: /s/  Jonathan Hoffman          By: /s/  E. G. Abbadessa
    ---------------------              --------------------
    (Signature)                        (Signature)

Jonathan  Hoffman                  E. G. Abbadessa
-----------------                  ---------------
(Type  or  Print  Name)            (Type  or  Print  Name)

Its: Chief Executive Officer         Its:  President and Chief Operating Officer
     -----------------------               -------------------------------------
(Type  or  Print  Title)           (Type  or  Print  Title)

Date:  04/27/01                      Date:  04/25/01

<PAGE>
------
                      INTERNATIONAL DISTRIBUTION AGREEMENT
                      ------------------------------------
                            LICENSED PRODUCT SCHEDULE

This  Schedule is made and entered into, and subject to the terms and conditions
of,  a  certain  International  Distribution  Agreement dated as of, _______2001
by  and  between  School  Zone  Interactive  ("School Zone") and the undersigned
Publisher.

PRODUCT                            Product  No.     Title
                                   -----------      -----
                                   [Insert  title]
Includes  Software  and Print
product.                           Licensed Platform: CDROM for Windows and Mac.

TERRITORY                          Check  one:

                                   __ Worldwide (excluding  School Zone's resale
                                   rights described below under Additional Terms
                                   and  Conditions)
                                   __ Limited  to  the   following  country(ies)
                                   (specify)

LANGUAGES                          Arabic
                                   Spanish

                                   Publisher's rights shall be exclusive (exclu-
                                   ding  School  Zone's  resale rights described
                                   below  under Additional Terms and Conditions)
                                   with  respect  to  these  languages  only.

TRADEMARKS                         [GRAPHIC  OMITED]

GOLDMASTER                         Publisher  shall  deliver  the Gold Master to
                                   School Zone upon completion.

TERM                               Initial ramp period commencing upon execution
                                   of this Schedule and ending December 31, 2001
                                   (the  "Ramp-UP  Period").   Thereafter,  this
                                   Schedule  shall continue for a period of four
                                   (4)  years  (each  period  referred  to as an
                                   "Annual  Term")  ending  December  31,  2005.

MINIMUM ANNUAL UNIT VOLUME         The  following  minimum  annual  unit volumes
                                   apply on a per title and per language  basis:

<PAGE>

                                                     MINIMUM NUMBER OF
                                   ANNUAL TERM   UNITS/ROYALTIES PER TITLE
                                   -----------------------------------------

                                                  Spanish           Arabic
                                                  -------           ------
                                         1     8,000  ($13,600)  4,000  ($6,800)
                                         2     4,000  ($ 6,800)  2,000  ($3,400)
                                         3     4,000  ($ 6,800)  2,000  ($3,400)
                                         4     4,000  ($ 6,800)  2,000  ($3,400)

                                   If  the total  amount  of  royalties actually
                                   paid  by  Publisher  during  any  Annual Term
                                   during the term  of  this  Schedule  is  less
                                   than the applicable minimum amount, Publisher
                                   shall  immediately  pay School Zone an amount
                                   equal  to  the  difference between the appli-
                                   cable minimum amount and the amount  actually
                                   paid.  These  minimum amounts shall not apply
                                   during  the  Ramp-Up  Period.

ADVANCE ROYALTY                    $5,000  (US)  per  title.

                                   Due  and  payable  in  full upon execution of
                                   this  Schedule.

PER PRODUCT ROYALTY                $1.70  per Licensed Product sold or otherwise
                                   disposed  of (includes $1.50 for software and
                                   $0.20  for  the  workbook  described  below).

                                   Publisher shall be solely responsible for the
                                   localization of the 32-workbook in dual lang-
                                   uage  format  for  Arabic/English and Spanish
                                   Spanish/ English  to  be  enclosed  with  the
                                   CD-Rom  and  sold  as  a  single  unit.

LOCALIZATION  KIT                  Fee included as  part of the advance royalty.

OTHER  TERMS  AND CONDITIONS       Publisher shall  provide School Zone with the
(SPECIFY)                          unassembled parts and pieces for the Licensed
                                   Product  (including the CD-ROMs, boxes, jewel
                                   cases,  booklets,  trays  but  excluding  the
                                   cardboard  corrugated  inserts) in such quan-
                                   tities  as  may  be  reasonably  requested by
                                   School Zone. School Zone shall be responsible
                                   for  assembling  the Licensed Product. School
                                   Zone  reserves  the exclusive right to resell
                                   the  Licensed  Products to existing customers
                                   of  School  Zone  located  in  North America.
                                   School  Zone  shall  pay Publisher its actual
                                   cost  of  goods or such other price as may be
                                   agreed  upon  in  writing  by the parties for
                                   each  unit  of  the  Licensed Product sold by
                                   School  Zone.

<PAGE>

SCHOOL ZONE INTERACTIVE            STAR E MEDIA CORP.

By: /s/  Jonathan Hoffman          By: /s/  E. G. Abbadessa
    ---------------------              --------------------
    (Signature)                        (Signature)

Jonathan  Hoffman                  E. G. Abbadessa
----------------------             -----------------------
(Type  or  Print  Name)            (Type  or  Print  Name)

Its: Chief Executive Officer       Its:  President and Chief Operating Officer
     -----------------------             -------------------------------------
(Type  or  Print  Title)           (Type  or  Print  Title)

Date:  04/27/01                      Date:  04/25/01INTERNATIONAL LICENCE AND DISTRIBUTION AGREEMENT
                ------------------------------------------------

This  INTERNATIONAL LIVENSE AND DISTRIBUTION AGREEMENT (the "Agreement") is made
                                                             ---------
and entered into up on the 25th day of July, 2001 (the "Effective Date"), by and
                                                        --------- ----
between  VIVENDI  UNIVERSAL  INTERACTIVE  PUBLISHING NORTH AMERICA, INC. and its
direct  and  indirect subsidiaries, with its principal place of business at 6080
Center  Drive,  10th Floor, Los Angeles, CA  90045 ("COMPANY"), and STAR E MEDIA
                                                     -------
CORPORATION,  a  California corporation, with its principal place of business at
188  Technology  Dr.,  Suite  B,  Irvine,  CA  92618  ("DISTRIBUTOR").
                                                        -----------

                                    RECITALS
                                    --------

WHEREAS,  COMPANY  publishes and distributes certain computer software products,
including  the  products  listed  in  Exhibit  A  hereto;  and

WHEREAS,  COMPANY  desires  to  distribute  its  products in a world market; and

WHEREAS,  DISTRIBUTOR  has expressed an interest in localizing, and acting as an
independent  DISTRIBUTOR  of, certain COMPANY products pursuant to the terms and
conditions  set  forth  below;

NOW,  THEREFORE,  in consideration of the foregoing, and of the mutual covenants
and  agreements hereinafter set forth, COMPANY and DISTRIBUTOR agree as follows:

1.     DEFINITIONS.   Whenever used in this Agreement, the following terms shall
       -----------
have  the  following  specified  meanings:

(a)     "COMPANY  Software" means computer software programs (including programs
         -----------------
intended  for demonstration or tutorial purposes) produced and/or distributes by
COMPANY  and  identified in the attached Exhibit A, as Exhibit A may be modified
or  amended  from  time  to  time,  and  any  and all improvements, corrections,
modifications,  updates,  enhancements  and  new  releases  related thereto, but
specifically  excluding  sequel  products.

(b)     "COMPANY  Documentation" means any and all manuals, specifications, user
         ----------------------
guides  no  other  documentation  regarding  the  COMPANY  Software.

(c)     "COMPANY  Products"  means  COMPANY  Software packaged together with the
         -----------------
appropriate  COMPANY  Documentation.

(d)     "Distribution  Term"  means  the  time  period set forth in the attached
         ------------------
Exhibit  A,  as  Exhibit  A may be modified or amended from time to time, during
which  DISTRIBUTOR  has the right to distribute the enumerated Localized COMPANY
Products,  as  that  terms  is  defined  hereinbelow,  in  the  Territory.

(e)     "Territory"  means  only  the  countries  listed  in  Exhibit A attached
         ---------
hereto, but only as their political borders exist on the date of this Agreement.
The  Territory  excludes  foreign countries' embassies, and foreign military and
governmental  installations,  located  within  the  territory.

(f)     "Localization"  means  the  modification of COMPANY Software and COMPANY
         ------------
Documentation  to  meet  the  needs  of  the  non-English-speaking  users in the
Territory.  This  may  include  code  changes,  additions and alterations to the
feature  set,  changes  in  the  data or new art with the intent to provide more
culturally  acceptable  COMPANY  Products.

(g)     "Localized  COMPANY Products" means COMPANY Software after Localization,
         ---------------------------
together  with  the  appropriate localized COMPANY Documentation and preapproved
collateral  materials,  contained  in  COMPANY-approved  localized packaging for
DISTRIBUTOR's  Territory.

(h)     "End-User"  means  an  individual  or  entity  which purchases Localized
         --------
COMPANY  Products  for  its  own  use,  and  not  for  redistribution.

<PAGE>
(i)     "Dealer"  means  an  entity  which,  as  authorized hereunder, purchases
         ------
Localized  COMPANY  Products  and  resells  them  to  End-Users.

(j)     "EULA"  means COMPANY's standard form end-user license agreement, a copy
         ----
of  which  is  included in COMPANY Documentation for, and/or displays on certain
screens  and  as  part of the installation of, all COMPANY Software, as the same
may  be  modified  or  amended  from  time  to  time.

(k)     "Prohibited Country" means a country to which export or re-export of any
         ------------------
Localized  COMPANY  Products  is  prohibited  by United States law without first
obtaining the permission of the United States Office of Export Administration or
its  successor.

(l)     "OEM" means original-equipment manufacturer, which is any natural person
         ---
or  legal entity which obtains a license from COMPANY to use COMPANY Products or
Localized  COMPANY  Products  from  the  purpose  of  incorporating such COMPANY
Products  or  Localized  COMPANY  Products,  in whole or in part, either with or
within computer hardware, software or other products for further distribution in
conjunction  with  such  products.

(m)     All  references  in this Agreement to the "sale" or "selling" of COMPANY
Software  shall  mean  the  sale  of a License to use such COMPANY Software. All
references  in  this  Agreement to the "purchase" of COMPANY Software shall mean
the  purchase  of  a  license  to  use  such  COMPANY  Software.

2.     APPOINTMENT  AS  AUTHORIZED  COMPANY  DISTRIBUTOR.
       -------------------------------------------------

(a)     Exclusive  Appointment.  Subject  to  the  terms  and conditions of this
        ----------------------
Agreement,  COMPANY  hereby  appoints  DISTRIBUTOR  as an independent, exclusive
DISTRIBUTOR   of  Localized  COMPANY  Products  solely  in  the  Territory,  and
DISTIBUTOR  hereby accepts such appointment. All rights not expressly granted to
DISTRIBUTOR  hereunder  are  reserved  by  COMPANY.

(b)     Nature  of  Distribution.  The appointment of DISTRIBUTOR only grants to
        ------------------------
DISTRIBUTOR  a license to distribute Localized COMPANY Products to DISTRIBUTOR's
customers in the Territory in accordance with this Agreement, and does not grant
any  right,  title  or  interest in any COMPANY Product, in whole or in part, To
DISTRIBUTOR.

(c)     Software  License.  With respect to the COMPANY Products, COMPANY grants
        -----------------
to DISTRIBUTOR an exclusive, non-transferable license in the Territory to modify
the  COMPANY  Software  and  the  COMPANY  Documentation,  only  as commercially
necessary  and  as approved by COMPANY, and to manufacture or have manufactured,
market,  distribute and sell only in the Territory such modified versions of the
COMPANY  Software  and  COMPANY  Documentation  as  Localized  COMPANY Products.

(d)     On-Line  Sales.  COMPANY  hereby  grants DISTRIBUTOR the right to market
        --------------
and  sell  the  Localized  COMPANY  products  through  on-line  services and the
Internet  only within the Territory. DISTRIBUTOR is prohibited from distributing
          ----
any  COMPANY  Products  or  Localized  COMPANY  Products  via  electronic means,
including  downloading.  COMPANY  reserves  the  right  to  review DISTRIBUTOR's
on-line  materials regarding the Localized COMPANY Products, and may at any time
require  DISTRIBUTOR  to  modify or remove such materials. DISTRIBUTOR agrees to
immediately  comply  with  such  notice.

(e)     Sale  Literature.  COMPANY  shall  furnish  DISTRIBUTOR  with reasonable
        ----------------
quantities  (in  COMPANY's sole judgment) of COMPANY's existing sales literature
if  desired by DISTRIBUTOR for the initial introduction of the Localized COMPANY
Products within the Territory at no charge. COMPANY reserves the right to charge
a  reasonable  fee  for  any additional materials provided by it to DISTRIBUTOR.

<PAGE>
(f)     COMPANY's  Reserved  Rights.
        ---------------------------

     (1)     Changes in Products.  In the event COMPANY  believes  that  further
             -------------------
     distribution of any Localized COMPANY Products in the Territory will expose
     COMPANY to liability, COMPANY may, without liability to DISTRIBUTOR, delete
     such COMPANY Product from the list of COMPANY Products contained in Exhibit
     A.  DISTRIBUTOR agrees to promptly refrain from any further distribution of
     the applicable Localized COMPANY Products following receipt of such notice.
     Additionally,  COMPANY reserves the right to modify COMPANY Products during
     the  term  hereof  in  its  sole  discretion.

     (2)     COMPANY and  Third-Party  Distribution  of  COMPANY Products Within
             -------------------------------------------------------------------
     the Territory.  DISTRIBUTOR  acknowledges  that  COMPANY has granted and/or
     -------------
     in the future may grant OEM rights to third parties relating to one or more
     of  the  COMPANY  ProductS  (other  than Localized COMPANY Products) in the
     Territory.  In  addition,  DISTRIBUTOR  further  acknowledges  that COMPANY
     and/or  third  parties  may  from  time to time distribute COMPANY Products
     directly  to  resellers and end-users in the Territory, but during the term
     of  this Agreement COMPANY shall not knowingly distribute Localized COMPANY
     Products  to  resellers  in  the  Territory.

     (3)     COMPANY  and Third-Party Distribution of Localized COMPANY Products
             -------------------------------------------------------------------
     Within  the  Territory.  DISTRIBUTOR acknowledges that COMPANY may  in  the
     ----------------------
     future grant licenses for distribution of the Localized COMPANY Products in
     conjunction  with  third-party  products.  In the event COMPANY enters into
     such  a licensing arrangement, COMPANY shall pay DISTRIBUTOR twenty percent
     (20%)  of  COMPANY's  net  proceeds  resulting  there from during the term.

3.     CERTAIN  OBLIGATIONS OF DISTRIBUTOR.  DISTRIBUTOR warrants and represents
       -----------------------------------
that it has, and will maintain, the capacity, facilities and personnel necessary
to carry out its obligations pursuant to this Agreement, and in particular that:

(a)     Promotion  Efforts.  DISTRIBUTOR  shall  use its best efforts to market,
        ------------------
sell  and distribute Localized COMPANY Products both vigorously and aggressively
within   the   Territory  in  accordance  with  the  terms  of  this  Agreement.
Notwithstanding  the   foregoing,  all  promotional,  advertising  and/or  other
marketing  items  or  the  like  which  DISTRIBUTOR may desire to create must be
pre-approved  in writing by COMPANY in the form attached hereto as Exhibit C. As
it  pertain  to  the  Blizzard  Entertainment products, all such advance written
approvals  must  be  obtained  from  Blizzard  Entertainment's Vice President of
Business  Development  or  his/her  designee.

(b)     Dealer  Qualifications.  DISTRIBUTOR  shall  authorize and maintain only
        ----------------------
Dealers  that  have  the  financial capacity, facilities, technical capacity and
desire  to  market  and  sell  Localized  COMPANY  Products  competently.

(c)     DISTRIBUTOR-Dealer  Agreement.  It  is  a  material  obligation of DIST-
        -----------------------------
RIBUTOR,   prior  to  engaging  in  any  transaction  with  a  Dealer  involving
Localized  COMPANY  Products,  to enter into an agreement with such Dealer which
authorizes such Dealer to resell Localized COMPANY Products, and which provides,
inter  alia,  that  as  a  material condition of such agreement, such Dealer may
resell  the  Localized  COMPANY  Products  only  within  the  Territory  granted
hereunder.

(d)     Minimum  Commitments.  DISTRIBUTOR  agrees  to and guarantees to sell at
        --------------------
least the minimum quantities of each of the Localized COMPANY Products set forth
in  Exhibit  A  (the  "Guaranteed  Unit  Sales") in the time period set forth in
Exhibit  A  (the  "Guarantee Period"). In the event DISTRIBUTOR does not achieve
the  Guaranteed  Unit  Sales  during the Guarantee Period, DISTRIBUTOR agrees to
pay,  at  the  expiration  of  the  Guarantee Period, the difference between the
royalties  which  would  have  been payable on the Guaranteed Unit Sales and the
royalties  paid  of  payable  for  quantities actually sold during the Guarantee
Period.  Notwithstanding  the  foregoing,  COMPANY  shall have the right but not
the obligation  to  terminate  this  agreement  upon 30 days written  notice  to
DISTRIBUTOR  if:

<PAGE>
     (1)     DISTRIBUTOR  has  not  achieved  the  Guaranteed  Unit sales within
     the Guarantee  Period;  or

     (2)     DISTRIBUTOR has not achieved one-half (1/2) of the Guaranteed  unit
     Sales  at the midpoint of the Guarantee Period. Within 30 days of COMPANY's
     written  notice  to DISTRIBUTOR of termination under the Paragraph 3(d)(2),
     DISTRIBUTOR  shall  pay the difference between one-half (1/2) the royalties
     which  would  have  been  payable  on  the  Guaranteed  Unit  Sales and the
     royalties  for quantities actually sold up to the midpoint of the Guarantee
     Period.

(e)     Inventory.  DISTRIBUTOR shall maintain an inventory of Localized COMPANY
        ---------
Products  sufficient  to  serve  adequately  the  needs of Dealers and End-Users
within  a  commercially  reasonable  time  frame. Notwithstanding the foregoing,
DISTRIBUTOR  shall  make  best efforts to ensure that its inventory of Localized
COMPANY  products  are  never  out-of-stock for any period that exceeds five (5)
consecutive  business  days.

(f)     Dealer  Support.   DISTRIBUTOR  shall  provide  Dealers  with  training,
        ---------------
technical  support  and  other  assistance  appropriate  in  promoting Localized
COMPANY  Products.  DISTRIBUTOR shall transmit to Dealers all COMPANY literature
and  other  information  that  COMPANY  requests  to  be  transmitted  to  them.

(g)     DISTRIBUTOR Personnel. DISTRIBUTOR shall train and maintain a sufficient
        ---------------------
number  of  capable  technical and sales personnel at it's expense; (1) to serve
the  needs  of  its Dealers or End-Users for Localized COMPANY Products, service
and  support; and (2) otherwise to carry out the responsibilities of DISTRIBUTOR
pursuant  to  this  Agreement.

(h)     Technical Expertise.  DISTRIBUTOR and its staff shall be conversant with
        -------------------
the  technical  language  conventional  to COMPANY Products and similar computer
products  in  general.

(i)     DISTRIBUTOR - Replicator/Duplicator  Agreement.   Prior  to  engaging  a
        --------------------------------------------
replicator/duplicator  to  replicate/duplicate  Localized  COMPANY  Products  as
contemplated pursuant to Paragraph 3(s) below, DISTRIBUTOR and  such replicator/
duplicator  shall  execute  an  agreement  authorizing  that entity to duplicate
Localized  COMPANY  Products.  It  is  a  material  obligation of DISTRIBUTOR to
contractually require the duplicator/replicator to prepare and submit reports to
COMPANY  in accordance with Paragraph 4(d) below and to refrain from replication
that  results  in  the  production  of  gold-colored  CD-ROMs.

(j)     DISTRIBUTOR  Covenants.  DISTRIBUTORRIBUTOR  covenants  and  agrees:
        ----------------------

     (1)     Efforts.  To  conduct  business in a manner that reflects favorably
             -------
     on the  goodwill  and  reputation  of  COMPANY;

     (2)     Marketing  Practices.  To avoid deceptive, misleading or  unethical
             --------------------
     trade  practices,  including  but  not  limited  to making representations,
     warranties  or  guarantees to customers or to the trade with respect to the
     specifications, features or capabilities of Localized COMPANY products that
     are  inconsistent with the literature distributed by COMPANY, including all
     warranties  and  disclaimers  contained  in  COMPANY  literature;

     (3)     Marketing  Through  Dealers.  To  refrain  from  selling  Localized
             ---------------------------
     COMPANY  Products to any Dealer that cannot agree to comply with obligation
     similar  to  those  continued  in the Paragraph 3, entitled "Obligations to
     DISTRIBUTOR";

     (4)     Object Code.  To distribute  COMPANY Software only in machine-read-
             ------------
     able object  code  format;

     (5)     Copying.   To  refrain  from  permitting  the  copying  of  COMPANY
             -------
     Software  onto  any  other  media  for purposes of redistribution to others
     whether  for profit, promotion or otherwise, and not to use, copy, print or
     display  any  COMPANY Software, or permit any Dealer to use, copy, print or
     display  any  COMPANY  Software in any manner except in connection with and
     for  the  purpose  of,  marketing and selling copies of COMPANY Software to
     others  in  accordance  with  this  Agreement;

<PAGE>

     (6)     Renting. To refrain from renting or lending any COMPANY Software or
             -------
     the  use,  copying,  printing  or  display  of any COMPANY Software, in any
     manner  except  in  connection  with,  and for the purpose of marketing and
     selling  copies  of  COMPANY  Software  to  other s in accordance with this
     Agreement;

     (7)     EULA.  Not to  add  to,  delete  or otherwise vary any of the terms
             ----
     and conditions  of  the  EULA;

     (8)     Trademarks  and  Trade  Names.  Not  to  distribute  any  Localized
             -----------------------------
     COMPANY  Products  under  any  trade  names  or trademarks other than those
     employed by COMPANY with respect thereto without the prior written approval
     of  COMPANY;  and

     (9)     Withholding Tax.  That any withholding tax  imposed  upon  payments
        ---------------
     made  to COMPANY by DISTRIBUTOR pursuant to this Agreement may be used as a
     foreign  tax  credit  in  the  same  fiscal  year  by  COMPANY  against its
     obligations under applicable United  States  tax  laws.  DISTRIBUTOR under-
     stands  and  agrees that should such tax credits be disallowed or unusable,
     the  royalty  rates  set  forth  in EXHIBIT A may be unilaterally raised by
     COMPANY  to  offset  the  effect  of  the  withholding  tax.

(k)     Warranty  Service  and  Support.  DISTRIBUTOR  shall comply with COMPANY
        -------------------------------
programs  for  in-warranty  replacement  and post-warranty support for Localized
COMPANY Products. DISTRIBUTOR shall provide a level of technical support for all
Localized  COMPANY  Products  equivalent  in all material respects to that which
COMPANY  provides  its  end  users.

(l)     Compliance  with  Law.  DISTRIBUTOR  shall comply with applicable inter-
        ---------------------
national, national, state, regional and local laws and regulations in performing
its duties hereunder and in any of its business with Dealers and with respect to
Localized  COMPANY  Products.

(m)     Compliance  with  U. S.  Export  Laws.   DISTRIBUTOR  acknowledges  that
        ------------------------------------
COMPANY's  export  of the COMPANY Products may be subject to compliance with the
Export  Administration  Act  Regulations  of  the  Department of Commerce of the
United  States,  as  amended,  and  other  export  controls of the United States
("Export  Laws"),  which  restrict  the  export and re-export of software media,
technical data, and direct products of technical data. ("Direct Product" as used
hereafter  means  the immediate product, including processes and services, drive
from  the  use of COMPANY Products.) DISTRIBUTOR agrees, and shall cause each of
its  Dealers,  employees,  agents and representatives to agree, not to export or
re-export  any  Localized COMPANY Product or Direct Products of COMPANY Products
to  any  Prohibited Country. DISTRIBUTOR agrees to indemnify COMPANY against any
claim,  demand,  action,  proceeding,  investigation,  loss  liability,  cost or
expense, including, with out limitation attorney's fees, suffered or incurred by
COMPANY  and  arising  out  of  or related  to  any  breach (whether intentional
or unintentional) by DISTRIBUTOR,  its  employees,  agents,  representatives  or
Dealers,  of  any  of  the  warranties  or  covenants  of  this  Paragraph 3(1).

(n)     Governmental  Approval.  If any approval with respect to this Agreement,
        ----------------------
or  the  registration  thereof, shall be required at any time during the term of
this  Agreement,  with  respect  to giving legal effect to this Agreement in the
Territory,  or  with  respect  to  compliance with exchange regulations or other
requirements  so  as  to  assure  the right of remittance abroad of U.S. dollars
pursuant  to  Paragraph  6  hereof,  DISTRIBUTOR Shall immediately take whatever
steps  may  be necessary in this respect, and any charges incurred in connection
therewith shall be paid by DISTRIBUTOR. DISTRIBUTOR shall keep COMPANY currently
informed of its efforts in this connection. COMPANY shall be under no obligation
to  ship COMPANY Product to DISTRIBUTOR hereunder until DISTRIBUTOR has provided
COMPANY  with  satisfactory  evidence  that such approval or registration is not
required  or  that  it  has  been  obtained.

<PAGE>

(o)     Market Conditions.  DISTRIBUTOR shall advise COMPANY promptly concerning
        -----------------
any market information that comes to DISTRIBUTOR's attention regarding Localized
COMPANY  Products, COMPANY's market position or the continued competitiveness of
Localized  COMPANY  Products  in  the  marketplace.

(p)     Dealing with End-Users.  Prior to accepting any fee or other charge from
        ----------------------
any  End-User  interested in acquiring a copy or copies of COMPANY Software from
DISTRIBUTOR, DISTRIBUTOR shall inform the End-User that acquisition of such copy
is  subject  to  the terms and conditions of the EULA. A sample copy of the EULA
shall  be available from the DISTRIBUTOR for review by all prospective End-Users
dealing with DISTRIBUTOR. Should any End-User return to DISTRIBUTOR any unopened
COMPANY  Software  in the original sealed package in which it was distributed by
DISTRIBUTOR,  DISTRIBUTOR  shall provide End-User with a full refund of all sums
paid  by  the  End-User  therefore.  In  no event shall COMPANY provide any such
refund  to  any End-User who has obtained the copy or copies in question from or
through  DISTRIBUTOR.

(q)     Adaptation  for  Local Market.  COMPANY AND  DISTRIBUTOR  shall  consult
        -----------------------------
in good  faith  with  respect  to  the  localization  of  the  COMPANY  Software
and DISTRIBUTOR  shall  make  such  changes  to  COMPANY  Software  and  COMPANY
Documentation,  packaging  and  related  marketing  materials as DISTRIBUTOR and
COMPANY  agree  would  be  appropriate  to  adapt  COMPANY Product or use in the
Territory.  COMPANY  shall  submit  to  DISTRIBUTOR  all  material  necessary to
DISTRIBUTOR's  Localization effort ("Localization Kit"). This might include, but
is  not  limited  to, scripts for speech files, and removable data storage media
containing  artwork.  COMPANY  assures  DISTRIBUTOR  that  it  will cooperate in
DISTRIBUTOR's  development  of the Localized COMPANY Products. DISTRIBUTOR shall
be  responsible for translating and manufacturing or having manufactured COMPANY
manuals,  advertising  and  promotional  materials into into the language of the
Territory  if  so  requested  by  COMPANY. Upon receipt of the Localization Kit,
DISTRIBUTOR  shall submit within two (2) weeks, an estimated publishing date for
the  localized version of the COMPANY Product, which shall be no later than four
(4)  calendar  months  following  receipt  of  the Localization Kit. DISTRIBUTOR
agrees  to  use  professional  actors,  which must be pre-approved in writing by
COMPANY,  for the voice-overs and agrees to have each actor contributing content
or  efforts  toward  the Localizations execute the COMPANY Professional Services
Agreement  attached  and  incorporated  hereto as Exhibit B. Failure to meet the
publishing  date  deadline shall be considered a material breach and shall allow
COMPANY  to  terminate the Agreement upon thirty (30) days prior written notice.
During  the completion of the Localization process, DISTRIBUTOR shall submit all
localized  materials  to  COMPANY for approval. DISTRIBUTOR must receive written
approval  from  COMPANY  prior to any sale or demonstration of Localized COMPANY
Products.  If  DISTRIBUTOR  cannot  achieve  the  quality or technical standards
equivalent  to  those  of  the  English  version  of  the COMPANY Product within
forty-five  (45)  calendar  days  after  DISTRIBUTOR's initial submission of the
Localized  COMPANY  Products to COMPANY for approval, COMPANY may terminate this
Agreement  upon  seven (7) days prior notice. COMPANY has the exclusive right to
sell  Localized  COMPANY  Products  outside  the  Territory.

(r)     Packaging.  Except  as  provided  in Paragraph 3(p) or 3(q), DISTRIBUTOR
        ---------
shall  distribute  Localized  COMPANY  Products  with all packaging, warranties,
disclaimers  and  EULA  intact as on COMPANY  Products  prior  to  Localization,
and shall  instruct  each  of  its  Dealers  as  to the nature and terms of  the
EULA  applicable  to  the  COMPANY  Software.  Anything to the contrary notwith-
standing,  DISTRIBUTOR  may  not  include  any  materials in or on the Localized
COMPANY  Product  packaging which is not either (i) included in the U.S. version
of  the  COMPANY  Product  or  (ii)  pre-approved in writing by COMPANY. For the
purpose of Localization, DISTRIBUTOR agrees to produce packaging and advertising
or sales support material at the same high quality levels used by COMPANY in the
English  version  of  the  COMPANY  Products.  DISTRIBUTOR  must receive written
pre-approval  from  COMPANY  on  all  DISTRIBUOR-produced  marketing  and  sales
materials, including, but not limited to, packaging and collateral material that
reference  COMPANY  Software  or Localized COMPANY Products, prior to release of
the  materials.  DISTRIBUTOR  shall  pay  for shipping and production of the art
media for the packaging, brochures or other collateral materials used to promote
the  Localized  COMPANY  Products  within  the  Territory.
<PAGE>

(s)     Media  Replication.  DISTRIBUTOR  shall  obtain  COMPANY's prior written
        ------------------
approval  before  replicating  any media used in the Localized COMPANY Products,
and  COMPANY  may  withhold  such  consent  in  its  sole  discretion.  Further,
DISTRIBUTOR shall  submit  the  name  or  names  of  the  particular duplicator/
replicator  that DISTRIBUTOR intends to use for such purposes to COMPANY for its
prior  written  approval  before  entering  into  any  agreement  with  said
duplicator/replicator.

(t)     Quality;  Samples.
        ------- ---------

     (1)     DISTRIBUTOR  acknowledges  that  if  the Localized COMPANY Products
     manufactured  and  sold by it hereunder were of inferior quality in design,
     material  or  workmanship,  the  substantial  goodwill  which  COMPANY  has
     established  and  now  possesses in the COMPANY Software would be impaired.
     Accordingly,  DISTRIBUTOR  agrees that the Localized COMPANY Products shall
     be  of  the  highest standards and of such style, appearance and quality as
     shall  be  reasonably adequate and suited to their promotion, distribution,
     sale  and  exploitation  to  enhance the Localized COMPANY Products and the
     good  will  in  the  COMPANY  Software.

     (2)     COMPANY shall approve each stage of development  of  the  Localized
     COMPANY  Product from the conception to the production thereof. DISTRIBUTOR
     shall  at  each  stage  of  development  of the Localized COMPANY Products,
     before  it  manufactures,  distributes,  shops  or  sells   any  particular
     Localized  COMPANY Products, furnish COMPANY, free of cost, for its written
     approval,  the Approval Request form attached hereto as Exhibit C with each
     of  the  following:

     i)     four  (4)  samples  of  preliminary  art  concept;

     ii)    four  (4)  samples  of  color  composite and/or one (1) hand sample;

     iii)   four  (4)  samples  of  fine  art;

     iv)    one  (1)  pre-production  sample;  and

     v)     one  (1) final  sample/prototype for the  Localized COMPANY Software
     together  with  its carton and containers, tags, labels, wrapping material,
     advertising  and  promotional  material  for use in any media in connection
     with  the  Localized  COMPANY  Software  ("Packaging").

     (3)     DISTRIBUTOR shall provide COMPANY with six (6)  production  samples
     of  the  Localized COMPANY Products in all sales, marketing and advertising
     materials  prepared  by  DISTRIBUTOR in connection with its distribution of
     the  Localized  COMPANY  Products,  free  of  cost,  for  COMPANY's written
     approval  prior  to  distribution  of  the  Localized  COMPANY Software. If
     COMPANY  does  not indicate its approval or disapproval of such submissions
     within  seven  (7)  business  days  from  the date of actual receipt of the
     submission,  COMPANY  shall  be  deemed  to  have disapproved the Localized
     COMPANY  Software.  If  so  disapproved,  and  without  limiting  COMPANY's
     approval  rights,  upon  receipt  of  a  written  request from DISTRIBUTOR,
     COMPANY  shall  provide  DISTRIBUTOR  within  five (5) business days of the
     proposed  modifications  that  would  render  such  sample  approved.  Once
     Localized  COMPANY  Software  and  collateral materials have been expressly
     approved, DISTRIBUTOR agrees to periodically furnish COMPANY, at no charge,
     with  additional  samples  of each Localized COMPANY Software and all sales
     marketing  and  advertising  materials  which  COMPANY  may deem reasonably
     necessary  in  order  to  permit  COMPANY to ensure that the quality of the
     COMPANY   Software  has  been  maintained  and  that  no  deviation  and/or
     modification  of  COMPANY approved Localized COMPANY Software has occurred.
     COMPANY  shall  have  the  right to withdraw its approval of samples if the
     quality  of  any  Localized  COMPANY  Software  ceases  to  be  acceptable.

<PAGE>

     (4)     Duly authorized representatives of COMPANY shall have the right, at
     any  and  all  reasonable  times,  to  inspect  all  facilities or premises
     maintained  by  DISTRIBUTOR  including,  without  limitation,  the  plants,
     factories  or other manufacturing or producing facilities of DISTRIBUTOR or
     third parties at which the Localized COMPANY Products and/or any components
     of  products are being manufactured or produced. Said representatives shall
     have  the  right  to inspect and test any Localized COMPANY Products and/or
     all components thereof and to take any other action which in the opinion of
     COMPANY  is  necessary  or  proper  to  assure  COMPANY that the nature and
     quality of the Localized COMPANY Products and/or all components thereof are
     in  accordance  with  the  requirements  of  this  Agreement.

     (5)     Complaints:  DISTRIBUTOR  will diligently  address  all  legitimate
             ----------
     complaints  brought  to  its  attention  regarding  the  Localized  COMPANY
     Products.  DISTRIBUTOR  will  advise  COMPANY  promptly  of any category of
     recurring  complaint  and  of  any  complaint  which DISTRIBUTOR reasonably
     believes might result in legal or administrative action against DISTRIBUTOR
     or  COMPANY.

     (6)     Cooperation:  In an effort to ensure  that  the  Localized  COMPANY
             -----------
     Products  accurately  depict the quality and value of the COMPANY Software,
     the  parties  agree  to  consult together on the design and creation of the
     Localized  COMPANY  Products.

(u)     Good  Will  and  Protection:  DISTRIBUTOR  acknowledges  that:
        ---------------------------

     (1)     The COMPANY Software, including without limitation, the characters,
     character  names,  trademarks,  service  marks, logos and images associated
     with  the said COMPANY Software, are unique and original and COMPANY is the
     owner  thereof;

     (2)     As  the  result  of the exhibition and exploitation of  the COMPANY
     Software,  COMPANY  has  acquired  a  substantial  and  valuable  good will
     therein;

     (3)     The names of the characters and  their  likenesses,  as  applicable
     and  the title of the COMPANY Software have acquired a secondary meaning as
     trademarks  uniquely  associated  with  merchandise  authorized by COMPANY;

     (4)     All  rights in any additional material, new versions, translations,
     rearrangements or other changes in the Localized COMPANY Products which may
     be  created  by  or  for DISTRIBUTOR shall be and will remain the exclusive
     COMPANY  Software  of  COMPANY  from  creation,  and;

     (5)     Any copyrights, trademarks  and  design patents heretofore obtained
     by  COMPANY  or  in connection with the characters and title of the COMPANY
     Software  are  good  and  valid.

4.     INSPECTIONS:  RECORDS  AND  REPORTING.
       -------------------------------------

(a)     Reports.  DISTRIBUTOR shall provide to COMPANY written reports for every
        -------
one-month  period, or when requested by COMPANY, showing DISTRIBUTOR's shipments
of  Localized COMPANY Products by units and local currency volume, and any other
information  COMPANY  reasonable  requests.

(b)     Notification.  DISTRIBUTOR  shall notify COMPANY in writing of any claim
        ------------
or  proceeding  involving Localized COMPANY Products within seven (7) days after
DISTRIBUTOR   learns  of  such  claim  or  proceeding.  DISTRIBUTOR  shall  also
immediately  report  to  COMPANY  all  claimed  or  suspected  product  defects.
DISTRIBUTOR  shall  also  notify COMPANY in writing not more than seven (7) days
after  any change in the management or control of DISTRIBUTOR or any transfer of
a  majority share of DISTRIBUTOR's voting control or a transfer of substantially
all  its  assets.

(c)     Records.  DISTRIBUTOR  shall  maintain, for at least two (2) years after
        -------
termination  of  this Agreement, its records, contracts and accounts relating to
the reproduction and distribution of Localized COMPANY Products. For the purpose
of  verifying  compliance  by  the  DISTRIBUTOR  with  the  provisions  of  this
Agreement,  DISTRIBUTOR  agrees  that  COMPANY  and its representatives shall be
permitted  full access to, and shall be permitted to make copies of or abstracts
from,  the  books  and  records  of  DISTRIBUTOR  relating  to inventory levels,
manufacturing,  sales and distribution. COMPANY shall be permitted to audit such
books  and  records  at  reasonable  intervals.

(d)     Reports  from  Replicator/Duplicator.  DISTRIBUTOR  shall  contractually
        ------------------------------------
obligate  any  duplicator/replicator with which it contracts pursuant to Article
3(s)  above  to  send  detailed  ad  accurate  reports  to  COMPANY  stating the
following:  number  of  units  of  Localized COMPANY Products duplicated and the
titles  of  such  Localized  COMPANY Products. The reports shall be submitted to
COMPANY  no  later  than  the  thirtieth  of  each and every month that any such
duplication/replication  takes  place.  The reports shall be submitted to: Havas
Interactive,  19840  Pioneer  Avenue,  Torrance,  CA  90503, Attn: International
Sales  Auditing.

5.     OWNERSHIP  AND PROPERTY RIGHTS.  DISTRIBUTOR agrees that COMPANY owns all
       ------------------------------
right,  title  and  interest  in  the COMPANY Products and the Localized COMPANY
Products  now  or  hereafter  subject to this Agreement, and in all of COMPANY's
patents,  trademarks,  trade  names, character names and likenesses, inventions,
copyrights,  know-how,  and  trade secrets relating to the design, operations or
maintenance  of  the  COMPANY  Software.  The use by DISTRIBUTOR of any of these
property  rights  is authorized only for the purposes and under the terms herein
set  forth,  and  upon  termination  of  this  Agreement  for  any  reason, such
authorization  shall  cease.  As  part of this Agreement, and without additional
compensation,  DISTRIBUTOR acknowledges and agrees that any and all tangible and
intangible  property  and  work  products,  ideas,  inventions,  discoveries and
improvements,  whether or not patentable, which are conceived/developed/created/
obtained  or  first reduced to practice by DISTRIBUTOR for COMPANY in connection
with  the Localization of COMPANY Products collectively referred to as the "Work
Product"),  including,  without  limitation  ,  all technical notes, schematics,
software  source  and  object  code,  prototypes,  breadboards, computer models,
art work,  sketches,  designs,  drawings,  paintings,  illustrations,  computer-
generated  artwork,  animations,  video,  film, artistic materials, photographs,
literature,  methods,  processes,  voice  recordings,  vocal  performances, nar-
rations,   spoken   word  recordings  and  unique  character  voices,  shall  be
considered  "works  made  for  hire" and therefore all right, title and interest
therein  (including,  without  limitation,  patents  and  copyrights) shall vest
exclusively  in COMPANY. To the extent that all or any part of such Work Product
does  not  qualify  as  a "work made for hire" under applicable law, DISTRIBUTOR
without  further compensation therefore does hereby irrevocably assign, transfer
and  convey  in  perpetuity to COMPANY and its successors and assigns the entire
worldwide  right,  title,  and  interest  in  and to the Work Product including,
without  limitation,  all  patent  rights,  copyrights,  mask work rights, trade
secret rights and other proprietary rights therein, Such assignment includes the
transfer and assignment to COMPANY and its successors and assigns of any and all
moral  rights  which  DISTRIBUTOR  may  have  in  the  Work Product. DISTRIBUTOR
acknowledges  and  understands that moral rights include the right of an author:
to  be  known as the author or a work; to prevent others from being named as the
author  of  the  works; to prevent others from falsely attributing to and author
the authorship of a work which he/she has not in fact created; to prevent others
from  making  deforming  changes  in a an author's work; to withdraw a published
work  from  distribution if it no longer represents the views of the author; and
to  prevent  others from using the work or the author's name in such a way as to
reflect  on  his/her  professional  standing.
6.     ADVANCES,  ROYALTIES  AND  PAYMENT.
       ----------------------------------

(a)     Advances  and Royalty Amounts.  DISTRIBUTOR agrees to pay to COMPANY the
        -----------------------------
non-refundable,  but  recoupable  advances  and  royalty  payments  set forth in
Exhibit  A.  Royalties  payable  to  COMPANY pursuant to this Agreement shall be
based  on  the  number of units of the Localized COMPANY Products distributed by
DISTRIBUTOR  and  shall  only  be  subject  to a deduction for Localized COMPANY
Products previously sold by DISTRIBUTOR which are returned to DISTRIBUTOR by its
customers.  The  royalty rate for new software developed by COMPANY and added to
this Agreement shall be determined by COMPANY as COMPANY makes such new software
available  to  DISTRIBUTOR.

(b)     Royalty  Payments.
        -----------------

     (1)     Royalties  shall  be  paid monthly, no later than thirty (30)  days
     after the end of the month in which sales occurred and shall be accompanied
     by a statement setting forth in reasonable detail the basis for the royalty
     computation  and  payment. Payments by check shall be sent to the following
     address:

<PAGE>

          Havas  Interactive,  Inc.
          P.O.  Box  846328
          Dallas,  TX  75284-6328

     Payments  by  wire  transfer  shall  be  made  to  the  following  account:

          Bank  of  America
          1850  Gateway  Blvd.
          Concord,  CA  94250
          ABA  No.  121-000-358
          Account  No.  12333-32277
          SWIFT  No.  BOFA-US-6S
          Beneficiary:  Havas  Interactive,  Inc.

     (2)     DISTRIBUTOR  shall  arrange  payment of all royalties so as to make
     the  funds available for use by COMPANY in the United States not later than
     the  payment  date  specified  above.

     (3)     Payment  of  all royalties and of any other payments required to be
     made  to COMPANY pursuant to this Agreement shall be made to COMPANY at its
     offices  in  California,  U.S.A., or at such banking institution as COMPANY
     may  direct  from  time  to  time,  in legal tender of the United States of
     America.  DISTRIBUTOR  hereby agrees to procure a Letter of Credit or other
     suitable  form  of  bank  guarantee (the "LC") in the amount of twenty-five
     thousand  US dollars (US -- $25,000) to serve as collateral for any and all
     payments  due  COMPANY  hereunder and to maintain such LC during the entire
     term,  including any renewal periods, of this Agreement and for a period of
     ninety  (90)  days  following  the  expiration  of  the term, including any
     renewal  periods,  of  this  Agreement.  The  LC  shall be procured from an
     internationally  recognized banking institution acceptable to COMPANY, such
     acceptance  not  to be unreasonably withheld, within sixty (60) days of the
     date  of  execution  of  this  Agreement  and  such  LC  shall be in a form
     acceptable  to  COMPANY.  DISTRIBUTOR  agrees  that such LC shall contain a
     provision  that if any action or proceeding for bankruptcy or insolvency is
     instituted  against or by DISTRIBUTOR, COMPANY shall have the right to make
     an immediate draw up on the LC. The obligation of DISTRIBUTOR to obtain the
     LC as set forth above is material obligation and the failure of DISTRIBUTOR
     to  obtain  and  keep in force the LC shall be considered a material breach
     hereunder.

     (4)     All advances, royalties or other payments made to COMPANY hereunder
     shall  be  made without deduction for any local, state, federal or  foreign
     taxes  or  duties.  DISTRIBUTOR shall be responsible for the payment of any
     and  all  taxes,  licenses,  duties  and  fees of DISTRIBUTOR or COMPANY in
     connection  with  the  marketing,  distribution,  sale,  possession, use or
     sublicensing  of  the  Localized COMPANY Products (inclusive of value added
     taxes,  but  exclusive of taxes based on COMPANY's net income). DISTRIBUTOR
     hereby  agrees  to pay and to indemnify COMPANY from all such duties, taxes
     and  fees  as  may  be  imposed upon COMPANY with respect to the marketing,
     distribution,  sale,  possession,  use  or  sublicensing  of  the Localized
     COMPANY  Products  pursuant  to  this Agreement. In the even DISTRIBUTOR is
     precluded  by  applicable law from making payments free of deductions, then
     DISTRIBUTOR  shall  pay to COMPANY such additional amounts as necessary sot
     that  the  actual amount received by COMPANY shall be the same as though no
     such  deduction  had  been  made.

(c)     Audit  Rights.  DISTRIBUTOR  shall  maintain  accurate books and records
        -------------
pertaining  to  the reproduction and distribution of Localized COMPANY Products.
COMPANY's  designated auditors shall have the right twice a year during ordinary
business  hours  and  upon  reasonable  notice,  to gain access to DISTRIBUTOR's
accounts and records. This examination shall be at COMPANY's expense, unless the
examination reflects and underpayment of five percent (5%) or more of the amount
that  should have been paid for the period(s) audited, in which case DISTRIBUTOR
shall  bear  the  expense  thereof.

<PAGE>
------

7.     DISTRIBUTOR  DETERMINES  ITS OWN PER COPY PRICES.  DISTRIBUTOR is free to
       ------------------------------------------------
determine  unilaterally  its own pricing of the COMPANY Software to its Dealers.
Although COMPANY may publish suggested wholesale, retail or Dealer prices, these
are  suggestions  only  and  DISTRIBUTOR shall be entirely free to determine the
actual  prices  at  which  Localized  COMPANY  Products are sold to its Dealers.

8.     DISTRIBUTOR'S  WARRANTIES  AND  REPRESENTATIONS  REGARDING  TREATMENT  OF
       -------------------------------------------------------------------------
DEALERS.  DISTRIBUTOR  hereby  warrants  and  represents  to COMPANY as follows:
     --

(a)     Dealer  Pricing. DISTRIBUTOR shall inform each Dealer that it is free to
        ---------------
determine  unilaterally  its  own  prices and that, although COMPANY may publish
lists  showing suggested retail prices for Localized COMPANY Products, those are
suggestions  only.

(b)     Non-Discrimination Among Dealers.  In working with its Dealers,  DISTRI-
        ---------------------------------
BUTOR  shall in all respects  comply with  all  laws,  regulations  or  statutes
which  regulate  the resale of products to Dealers, including but not limited to
those  which  govern  discriminatory  pricing.

9.     TRADEMARKS,  TRADE  NAMES  AND  COPYRIGHTS.
       ------------------------------------------

(a)     Trademark  Use  During  Agreement.  During  the  term of this Agreement,
        ---------------------------------
DISTRIBUTOR  is  authorized  by  COMPANY  to use  the  trademarks  COMPANY  uses
for COMPANY Products  solely  in  connection  with DISTRIBUTOR's  advertisement,
promotion  and  distribution  of  Localized COMPANY Products. DISTRIBUTOR agrees
that  it  shall  cause to be affixed, conspicuously and legibly on the Localized
COMPANY  Products  sold  by it pursuant to this Agreement and on all advertising
incorporating  any  part  of  the  COMPANY  Software,  appropriate copyright and
trademark  notices  in  the  name  of  COMPANY.  DISTRIBUTOR  further  agrees to
prominently  feature  the  logo  of  COMPANY  on  packaging  and  advertising of
Localized  COMPANY  Products. DISTRIBUTOR agrees not to alter, erase, deface, or
overprint  any  such  mark  on  anything  provided  by  COMPANY.

(b)     No DISTRIBUTOR Rights in Trademarks or Copyrights.  DISTRIBUTOR has paid
        -------------------------------------------------
no consideration for the use of COMPANY's trademarks, logos, character names and
likenesses,  copyrights, trade secrets, trade names or designations, and nothing
contained in this Agreement shall give and retains all proprietary rights in all
Localized  COMPANY  Products, and agrees that it shall not at any time during or
after  this  Agreement  assert  or claim any interest in or do anything that may
adversely  affect  the  validity or enforceability of any trademark, trade name,
trade  secret, copyright or logo belonging to or licensed to COMPANY (including,
without  limitation,  any  act,  or assistance to any act, which may infringe or
lead  to  the  infringement of any copyright in the Localized COMPANY Products.)

(c)     No  Continuing Right.  Upon expiration or termination of this Agreement,
        --------------------
DISTRIBUTOR  shall  cease advertising and use of all COMPANY names, marks, logos
and  designations.

(d)     Obligation  to Protect.  DISTRIBUTOR agrees to use reasonable efforts to
        ----------------------
protect  COMPANY's proprietary rights and to cooperate with COMPANY's efforts to
protect  its  proprietary  rights.

(e)     Security.  In  the  case  where COMPANY provides DISTRIBUTOR with source
        --------
code,  DISTRIBUTOR  covenants  and  agrees  as  follows:

     (1)     DISTRIBUTOR  shall  use  the source code only for necessary Locali-
     zation  purposes;

     (2)     DISTRIBUTOR shall restrict access to the source code to individuals
     with  a  need  to  know and who are directly engaged in Localization of the
     COMPANY  Software;

     (3)     DISTRIBUTOR  shall  store  and  modify  the source code on  only  a
     single  workstation;

     (4)     DISTRIBUTOR  shall  maintain  a  source-code  activity  log;

<PAGE>

     (5)     DISTRIBUTOR shall provide reasonable safeguards for the  protection
     of  the  source  code  from  unauthorized  access  and  damage;

     (6)     WITHIN SIXTY (60) DAYS AFTER COMPLETION OF LOCALIZATION DISTRIBUTOR
SHALL  RETURN  ALL  SOURCE  CODE TO COMPANY AND SUBMIT TO COMPANY, FOR COMPANY'S
ARCHIVES,  A  FULL  COPY  OF LOCALIZED COMPANY PRODUCTS, INCLUDING ANY LOCALIZED
SOURCE  CODE.

     (7)     DISTRIBUTOR  shall  not alter or modify any COMPANY Software, pack-
     aging  or  marketing materials, or any portion or aspect thereof, or use or
     refer  to  any  COMPANY  Software  in  the creation of any derivative work,
     without  COMPANY's  prior  written  consent.

     (8)     DISTRIBUTOR  shall  preclude its agents, employees, and contractors
     from  engaging in any conduct inconsistent with the terms of this Paragraph
     9(e) by means of appropriate agreements and/or such other security measures
     as may be necessary in order to preclude such conduct. COMPANY reserves the
     right  to  review DISTRIBUTOR's agreement and security measures and require
     DISTIBUTOR  to  amend  agreements  and  take  steps to bolster the security
     measures  that  are  necessary  in  COMPANY's  sole  judgment.

     (9)     DISTRIBUTOR  shall  not  at  any  time  market  any copy of COMPANY
     Product  which  has  not  been  pre-approved  by  COMPANY.

(f)     Breach.  DISTRIBUTOR  understands  and  agrees  that COMPANY will suffer
        ------
irreparable  harm  in the event that DISTRIBUTOR fails to comply with any of its
obligations  pursuant  to  this  Paragraph  9 and Paragraph 3, and that monetary
damages in such event would be substantial and inadequate to compensate COMPANY.
Consequently,  in  such  event  COMPANY  shall  be entitled, in addition to such
monetary relief as may be recoverable by law, to such temporary, preliminary and
or/permanent injunctive relief as may be necessary to restrain any continuing or
further  breach  by  DISTRIBUTOR,  without showing or proving any actual damages
sustained  by  COMPANY.

(g)     Dealer  or  End-User  Breaches.  DISTRIBUTOR  shall  promptly  report to
        ------------------------------
COMPANY any breach of the EULA of which DISTRIBUTOR becomes aware. COMPANY shall
have  the  right,  but  not  the  obligation,  to  pursue  any  and  all  such
infringements.

(h)     Filing  and  Recording.  Upon  request,  DISTRIBUTOR  agrees  to  assist
        ----------------------
COMPANY  in  the  filing  and  recording  of  COMPANY's trade names, copyrights,
patents  and  trademarks  in  the  Territory,  all  costs to be paid by COMPANY.

10.     ASSIGNMENT.  The rights granted to DISTRIBUTOR hereunder are personal in
        ----------
nature  and  DISTRIBUTOR agrees that this Agreement shall not be assignable, nor
may  DISRIBUTOR  delegate its duties hereunder without the prior written consent
of  COMPANY. Any attempted delegation or assignment without the required consent
shall  be  void  and  of  no  effect.

11.     DURATION  AND  TERMINATION  OF  AGREEMENT.
        -----------------------------------------

(a)     Term.  Subject  to  prior  termination in accordance with the provisions
        ----
contained  herein, the term of this Agreement shall commence as of the Effective
Date,  and  expire  upon  the  expiration of all Distribution Terms of Localized
Product  distributed  pursuant  to  this  Agreement.

(b)     Termination  for  Cause.  This  Agreement may be terminated forthwith as
        -----------------------
set  forth below, by one party giving written notice thereof to the other party,
in  accordance  with  Paragraph  16(b)  below,  stating  the  effective  date of
termination.

     (1)     By  COMPANY  if any proceeding in bankruptcy or  in  reorganization
     or  for  the  appointment  of a receiver or trustee or any other proceeding
     under  any  law for the relief of debtors shall be instituted by or against
     DISTRIBUTOR,  or if DISTRIBUTOR shall make an assignment for the benefit of
     creditors;  or

<PAGE>

     (2)     Subject  to  Paragraph  3(q)  and  13(a)  herein, by  either  party
     upon  a  material  breach  by  the  other party of any of the terms of this
     Agreement,  or  any  other  agreement  in force between the parties hereto,
     which  breach  is  not remedied by the breaching party to the non-breaching
     party's  reasonable  satisfaction  within thirty (30) days of the breaching
     party's  receipt  of notice of such breach from the non-breaching party, in
     the  event of a breach of Paragraph 6 hereunder, and within forty-five (45)
     days  for  all  other  breaches;

     (3)     By  COMPANY,  if  DISTRIBUTOR  is  merged,  consolidated, sells all
     or  substantially  all  of  its  assets  or  implements  or experiences any
     substantial  change  in management or control, (the transfer of twenty-five
     percent  (25%)  or  more of a DISTRIBUTOR's common stock or the equivalent,
     shall  be  considered  a  substantial  change  in  control  hereunder);

     (4)     By  COMPANY,  if  DISTRIBUTOR  sells:
             i)     any  copies  of  the  COMPANY  Product;

             ii)     any copies of the Localized COMPANY  Products  outside  the
             Territory; or

             iii)     any copies of the Localized COMPANY Products to any person
             or  entity  which  DISTRIBUTOR  has reason to believe may sell  the
             Localized COMPANY Products outside  the  Territory;

     (5)     By  COMPANY,  if DISTRIBUTOR has not achieved one-half (1/2) of the
     Guaranteed  Unit  Sales  at  the  midpoint  of  the  Guarantee  Period;

     (6)     By  COMPANY,  if  DISTRIBUTOR  distributes  any  Localized  COMPANY
     Products  or  associated  marketing  material  without  first obtaining the
     approval(s)  of  COMPANY  required  hereunder;  or

     (7)     By  COMPANY,  the  Distribution Term may be terminated  as  to  any
     COMPANY  Product  for  which  DISTRBUTOR  has failed to produce a Localized
     COMPANY  Product  acceptable  to  COMPANY  within  three  (3)  months  of
     DISTRIBUTOR's  receipt of the Localization Kit for such COMPANY Product; in
     the  case  of  such  termination, COMPANY shall retain any advances paid in
     respect  of  such  COMPANY  Product.

(c)     Termination  at  Will.  COMPANY  shall  have the right to terminate this
        ---------------------
Agreement  for  no  cause,  at will, upon ninety (90) days prior written notice.

(d)     Effect  of  Termination.  Upon  Termination  of  this  Agreement:
        -----------------------

     (1)     DISTRIBUTOR  shall cease using any COMPANY trademark, logo or trade
     name.

     (2)     All  COMPANY Software masters, Localization materials, source code,
     trademarks,  trade  names,  patents,  samples, literature and sales aids of
     every  kind  shall  remain the property of COMPANY. Within thirty (30) days
     after the termination of this Agreement, DISTRIBUTOR shall prepare all such
     items  in  its possession for shipment, as COMPANY may direct, at COMPANY's
     expense.  DISTRIBUTOR  shall  not  make  or  retain  any copies of any con-
     fidential  or  proprietary   items  or  information  which  may  have  been
     entrusted  to  it.  Effective  upon  the  termination  of  this  Agreement,
     DISTRIBUTOR  shall  cease  to  use  all trademarks, logos, marks, and trade
     names  of  COMPANY.

     (3)     DISTRIBUTOR shall provide COMPANY with a written  report  detailing
     all  inventory  of  the Localized COMPANY Products in its possession at the
     effective  date of termination within ten (10) business days. COMPANY shall
     then  have  a  period  of  ten  (10) business days to elect to purchase any
     portion  of  said  inventory  at  DISTRIBUTOR's  actual  cost of such goods
     Subject to COMPANY's option to purchase DISTRIBUTOR's inventory, and unless
     this  Agreement  has been terminated for breach on the part of DISTRIBUTOR,
     DISTRIBUTOR  shall retain the right to sell off it's remaining inventory of
     Localized  COMPANY  Products for a period or three (3) months following the
     expiration  or  termination  of  this  Agreement,  subject to DISTRIBUTOR's
     payment  of  royalties  for such sales. However, if this Agreement has been
     terminated  for  breach  on  part of DISTRIBUTOR, DISTRIBUTOR shall have no
     sell-off rights whatsoever and any remaining inventory of Localized COMPANY
     Products  shall  become  the  property  of  COMPANY  without any payment by
     COMPANY  to  DISTRIBUTOR  and  shall  be promptly delivered to COMPANY at a
     destination  designated  at  DISTRIBUTOR's  expense.

     (4)     If  the  Agreement  was  terminated pursuant to Paragraph 11 (b)(5)
     hereinabove,  in addition to any other royalties due, DISTRIBUTOR shall pay
     COMPANY  the difference between one-half (1/2) of the royalties which would
     have  been payable on the Guaranteed Unit Sales and the amount of royalties
     DISTRIBUTOR  had paid COMPANY for sales up to the midpoint of the Guarantee
     Period.

(e)     Survival.  COMPANY's rights and DISTRIBUTOR's obligations to pay COMPANY
        --------
all  amounts  due  hereunder,  as  well as DISTRIBUTOR's obligations pursuant to
Paragraph 3(c), 3(d), 3(j)(4) through 3(j)(8), 3(m), 4(c), 5, 6, 9, 11(d), 11(e)
and  12  through 16 shall survive termination or expiration of this Agreement or
any  termination  that this Agreement or any portion hereof or exhibit hereto is
void  or  voidable.

12.     RELATIONSHIP  OF  THE  PARTIES.  DISTRIBUTOR's relationship with COMPANY
        ------------------------------
during  the  term  of this Agreement will be that of any independent contractor.
DISTRIBUTOR will not have, and shall not represent that it has, any power, right
or  authority  to  bind  COMPANY,  or  to  assume  or  create  any obligation or
responsibility  express  or  implied, on behalf of COMPANY or in COMPANY's name,
except  as  herein expressly provided. Nothing stated in this Agreement shall be
construed  as  making  partners  of DISTRIBUTOR and COMPANY, nor as creating the
relationships  of  employer/employee,  franchiser/franchisee, or principal/agent
between  the  parties.  In  all  matters  relating  to  this  Agreement, neither
DISTRIBUTOR  nor  its  employees  or  agents  are, or shall act as, employees of
COMPANY  within  the meaning or application of any obligations or liabilities to
COMPANY  by  reason  of  an employment relationship. DISTRIBUTOR shall reimburse
COMPANY  for and hold it harmless from any liabilities or obligations imposed or
attempted  to  be imposed upon COMPANY by virtue of any such law with respect to
employees  of  DISTRIBUTOR  in  performance  of  this  Agreement.

13.     INDEMNIFICATION.
        ---------------

(a)     DISTRIBUTOR  shall  defend,  indemnify  and  hold  harmless COMPANY, its
parent,  subsidiaries,  affiliated  companies  and partners and their respective
officers,  directors,  employees  and  agents  from  and  against  any  and  all
liabilities,  damages,  costs  and  fees  (including reasonable attorney's fees)
resulting  from  any  claims  or actions arising out of or relating to actual or
alleged:  (i)  distribution by DISTRIBUTOR or its Dealers of COMPANY Products or
Documentation  or  Localized  COMPANY  Products  outside  the Territory; or (ii)
breach  of  any  and  all  obligations  DISTRIBUTOR  has  undertaken  to perform
hereunder;  or  (iii)  breach of any representations and warranties or covenants
DISTRIBUTOR  has made hereunder; or (iv) infringement caused by any modification
to  the  COMPANY  Products  or  Documentation  not authorized by COMPANY; or (v)
any third-party  claim  arising  from  DISTRIBUTOR's  use  of  any trademarks or
copyrighted  material  added  to  the  COMPANY  Products  by  Distributor.  Such
indemnification  obligation  or  DISTRIBUTOR  shall  be conditioned upon COMPANY
promptly notifying DISTRIBUTOR in a writing that sets forth with specificity the
claim  or  action  to which such indemnification obligation applies. DISTRIBUTOR
shall  have  the right to control the defense of each such claim and any lawsuit
or  proceeding  arising  therefrom.  In  the  event  DISTRIBUTOR does not timely
undertake  to defend COMPANY from a claim or suit described above, COMPANY shall
have the right to undertake the defense itself and DISTRIBUTOR promises to repay
all  liabilities, damages, costs and fees (including reasonable attorney's fees)
resulting  from such defense regardless of the outcome. Except in the event that
DISTRIBUTOR  does  not  undertake  the defense of COMPANY as required hereunder,
COMPANY  shall  not  settle  any  such  claim  or  lawsuit or proceeding arising
therefrom  without  the  prior  written  approval  of  DISTRIBUTOR. In defending
against  such  claim  or  action, DISTRBUTOR may (i) contest; (ii) settle; (iii)
procure  for COMPANY and its customers the right to continue using the Localized
COMPANY Products, as applicable; or (iv) modify or replace the Localized COMPANY
Products,  as  applicable;  so  that  they  no  longer   infringe.   DISTRIBUTOR
acknowledges  that  the  warranties and representations herein shall survive the
termination  of  this  Agreement.

<PAGE>

(b)     No  Combination  Claims.  Notwithstanding Paragraph 14(a), COMPANY shall
        -----------------------
not  be  liable  to  DISTRIBUTOR  for  any  claim arising from or based upon the
combination,  operation  or  use  of any COMPANY Product with equipment, data or
programming  not  supplied  by  COMPANY,  or  arising  from  any  alteration  or
modification  of  COMPANY  Products.

14.     DISCLAIMER  OF  WARRANTIES;  LIMITED  LIABILITY.
        -----------------------------------------------

(a)     Disclaimer  of  Warranties.  DISTRIBUTOR ACKNOWLEDGES THAT NO WARRANTIES
        --------------------------
WITH REGARD TO THE COMPANY SOFTWARE, WHETHER OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR  PURPOSE  OR  OTHERWISE,  ARE  CREATED  BY THIS AGREEEMNT AND COMPANY
HEREBY  DISCLAIMS  AND  EXLUDES  ALL  IMPLIED  WARRANTIES  OF MERCHANTABILITY OR
FITNESS  FOR A PARTICULAR PURPOSE. COMPANY FURTHER DISCLAIMS ALL WARRANTIES WITH
REGARD  TO  YEAR  2000 COMPLIANCE OF THE COMPANY SOFTWARE. SPECIFICALLY, COMPANY
MAKES  NO  WARRANTIES  THAT  THE  PERFORMANCE  OR  FUNCTIONALITY  OF THE COMPANY
SOFTWARE  WILL NOT BE AFFECTED BY DATES PRIOR TO, DURING OR AFTER THE YEAR 2000,
OR THAT THE COMPANY SOFTWARE WILL BE CAPABLE OF CORRECTLY PROCESSING, PROVIDING,
AND/OR  RECEIVING  DATE  INFORMATION WITHIN AND BETWEEN CENTURIES, INCLUDING THE
PROPER  EXCHANGE  OF  DATE  INFRMATION  BETWEEN  PRODUCTS  OR  APPLICATIONS.

(b)     Limitation of Liability.  UNDER NO CIRCUMSTANCES SHALL COMPANY BE LIABLE
        -----------------------
TO  DISTRIBUTOR  ON  ACCOUNT  OF  ANY  CLAIM  (WHETHER  BASED UPON PRINCIPLES OF
CONTRACT,  WARRANTY,  NEGLIGENCE  OR  OTHER  TORT, BREACH OR ANY STATUTORY DUTY,
PRINCIPLES  OR  INDEMNITY,  THE  FAILURE  OF  ANY  LIMITED REMEDY TO ACHIEVE ITS
ESSENTIAL  PURPOSE,  OR  OTHERWISE) FOR ANY SPECIAL, CONSEQUENTIAL INCIDENTAL OR
EXEMPLARY  DAMAGES, INCLUDING BUT NOT LIMETED TO LOST PROFITS, OR FOR ANY DAMGES
OR  SUMS  PAID BY DISTRIBUTOR TO THIRD PARTIES, EVEN IF COMPANY HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES. DISTRIBUTOR acknowledges and agrees that (1)
DISTRIBUTOR  has no expectation and has received no assurances that its business
relationship with company will continue beyond the stated term of this Agreement
or  its  earlier  termination,  and  that COMPANY has not made any promises with
respect  to DISTRIBUTOR's ability to recoup any investment by DISTRIBUTOR in the
promotion  of  Localized  COMPANY  Products by virtue of this Agreement; and (2)
DISTRIBUTOR  shall  not have or acquire by virtue of this Agreement or otherwise
any  vested,  proprietary  or  other right in the promotion of Localized COMPANY
Products  or  in  any  goodwill  created  by  its  efforts  hereunder.

15.     CONFIDENTIALITY.  In  the  course  of  this Agreement, it is anticipated
        ---------------
that  DISTRIBUTOR  will  learn  confidential  or  proprietary  information about
COMPANY.  DISTRIBUTOR  shall  keep  confidential  this information and any other
information  which  DISTRIBUTOR  may acquire with respect to COMPANY's business,
including,  but  not  limited  to,  information  developed  and  relating to new
products,  customers,  pricing,  know-how,  processes, and practices, unless and
until  COMPANY  consent  to disclosure, or unless such knowledge and information
otherwise  becomes  generally  available  to  the  public  through  no  fault of
DISTRIBUTOR.  DISTRIBUTOR  shall  not  disclose  to  others,  without  COMPANY's
consent,  the  subject of this relationship without first providing COMPANY with
the  opportunity  to  review  and offer reasonable objection to the contemplated
publication. This undertaking to keep information confidential shall survive the
termination  of  this Agreement. It is understood, however that the restrictions
listed  above  shall not apply to any portion of confidential information which:
(i)  was previously known to DISTRIBUTOR without obligations of confidentiality;
(ii)  is  obtained after the Effective Date of this Agreement from a third party
which  is lawfully in possession of such information and not in violation of any
contractual  or  legal  obligation  to COMPANY with respect to such information;
(iii)  is  or becomes part of the public domain through no fault of DISTRIBUTOR;
(iv)  is  independently  ascertainable  or  developed  by  DISTRIBUTOR  or   its
employees;  (v) is required to be disclosed by administrative or judicial action
provided  that  DISTRIBUTOR  immediately  after  receiving notice of such action
notifies  company  of  such  action  to give COMPANY the opportunity to seek any
other legal remedies to maintain such confidential information in confidence; or
(vi)  is  approved  for release by written authorization of COMPANY. DISTRIBUTOR
shall  require  each  of  its employees performing services relation to the Work
execute a Confidentiality Agreement, if requested by COMPANY. At the termination
of  this  Agreement,  DISTRIBUTOR  shall  return to COMPANY all drawings, speci-
fications,  manuals  and  other  printed  or  reproduced   material   (including
information  stored  on  machine  readable  media)  provided  by  COMPANY.

<PAGE>

16.     GENERAL.
        -------

(a)     Waiver  and  Modification.  No  waiver  or modification of the Agreement
        -------------------------
shall  be  effective unless in writing and signed by the party against whom such
waiver  or  modification  is asserted. Waiver by either party in any instance of
any  breach of any term or condition of this Agreement shall not be construed as
a  waiver  of  any  subsequent breach of the same or any other term or condition
hereof.  None  of  the  terms or conditions of this Agreement shall be deemed to
have  been  waived  by  course  of  dealing  or  trade  usage.

(b)     Notices.  All  notices  and  demands  hereunder  shall be in writing and
        -------
shall be served by personal delivery, express courier, or mail at the address of
the receiving party set forth in this Agreement (or at such different address as
may be designated by such party by written notice to the other party), and shall
be  deemed  complete  upon  receipt.  All notices or demands by mail shall be by
certified  or  registered  airmail, return receipt requested. If receipt of such
notice or demand is refused or a party has changed its address without informing
the  other,  the notice shall be deemed to have been given and received upon the
seventh  (7th)  day  following the date upon which it is first postmarked by the
postal  service  of  the  sender's  nation.

(c)     Attorney's Fees.  In the event any litigation is brought by either party
        ---------------
in connection with this Agreement, the prevailing party in such litigation shall
be  entitled  to recover from the other party all the costs, attorney's fees and
other  expenses  incurred  by  such  prevailing  party  in  the  litigation.

(d)     Complete Execution.  This Agreement shall become effective only after it
        ------------------
has  been  executed  by  DISTRIBUTOR  and  COMPANY.

(e)     Choice  of  Law,  Jurisdiction.  This Agreement shall be governed by and
        ------------------------------
construed  in  accordance  with  the  law  of  the  sate of California, USA. THE
APPLICATION  OF THE UNITED NATIONS CONVENTION OF CONTRACTS FOR THE INTERNATIONAL
SALE  OF  GOODS IS EXPRESSLY EXCLUDED. The parties agree that any claim asserted
in  any  legal  proceeding by one party against the other shall be commenced and
maintained  in  any  state  or  federal  court  located within the County of Los
Angeles,  State  of  California, U.S.A., having subject-matter jurisdiction with
respect  to  the  dispute between the parties. Both parties hereby submit to the
jurisdiction of such courts overreach of them personally in connection with such
litigation,  and  waive any objection to venue in such courts and any claim that
such  forum  is  an  inconvenient  forum.  The  English-language version of this
Agreement  controls  when  interpreting  this  Agreement.

(f)     Severability.  In  the  event that any provision of this Agreement shall
        ------------
be  held  by  a  court  or  other  tribunal  of  competent  jurisdiction  to  be
unenforceable,   such  provision   shall  be  enforced  to  the  maximum  extent
permissible  and  the  remaining  portions  causes  the  contract to fail of its
essential  purpose,  then  the  entire  Agreement  shall  fail  and become void.

(g)     Force  Majeure.  COMPANY  shall  not  be  responsible for any failure to
        --------------
perform  due  to  unforeseen  circumstances  or  cause beyond COMPANY's control,
including but not limited to acts of God, war, riot, embargoes; acts of civil or
military   authorities,  fire,  floods,  accidents,  strikes,  or  shortages  of
transportation  facilities,  fuel,  energy,  labor  or  materials.

(h)     Entire  Agreement.  This Agreement, including all Schedules and Exhibits
        -----------------
hereto,  constitutes  and contains the entire agreement between the parties with
respect  to  the  subject matter hereof and supersedes any prior oral or written
agreement. Nothing herein contained shall be binding upon the parties until this
Agreement  has  been  executed  by  each  party  and  an  executed copy has been
delivered  to  the parties. This Agreement may not be changed, modified, amended
or  supplemented  except  in  a writing signed by all parties to this Agreement.
Each  of  the  parties  acknowledges  and agrees that the other has not made any
representations,  warranties  or  agreements  of  any  kind,  except  as  may be
expressly  set  forth  herein.

<PAGE>

(i)     Benefits  of Agreement.  The terms of this Agreement are intended solely
        ----------------------
for  the benefit of the parties hereto. They are not intended to confer upon any
third  party  the  status  of  a  third-party  beneficiary.  Except as otherwise
provided  for by this Agreement, the terms hereto shall inure to the benefit of,
and be binding upon, the respective successors and assign of the parties hereto.

IN  WITNESS  WHEREOF,  the  parties  have  entered  into  this  Agreement.

VIVENDI  UNIVERSAL  INTERACTIVE            STAR  E  MEDIA CORPORATION
PUBLISHING  NORTH  AMERICA

By:  Signer  not  known                    Officer:  /s/  E.  G. Abbadessa
   -------------------------                       ----------------------------
Title:     CEO                             Title:     President
           ---                                        ---------
Date:     August  10,  2001                Date:     August  10,  2001
          -----------------                          -----------------

<PAGE>
                                    EXHIBIT A
                                    ---------

1.     COMPANY  PRODUCTS  AND  ROYALTY  RATES:

     COMPANY  PRODUCT                    ROYALTY  RATE
     ----------------                    -------------

     Jumpstart  1st  Grade                    US$4.00
     Jumpstart  2nd  Grade                    US$4.00
     Jumpstart  3rd  Grade                    US$4.00
     Jumpstart  Pre-Kindergarten              US$4.00
     Jumpstart  Kindergarten                  US$4.00
     Jumpstart  Toddlers                      US$4.00
     Jumpstart  Preschool                     US$4.00
     Mega  Math  Blaster                      US$4.00
     My  1st  Encyclopedia                    US$4.00

(All  COMPANY  Products listed in this Agreement are the 1998  version  and  are
to be released  as  Bilingual  with  both  English  and  fully Localized  Arabic
languages).

2.     ADVANCE  PAYMENTS:

DISTRIBUTOR  agrees  to  pay  COMPANY  the  sum  of  eight  thousand  US dollars
(US$8,000.00)  for each COMPANY Product listed in this agreement as a recoupable
advance against future royalties arising from DISTRIBUTOR's distribution of each
localized  COMPANY  Product,  payable  in  three  (3)  installments  as follows:

a)     One  thousand,  six  hundred  US  dollars  (US$1,600.00) for each COMPANY
product  upon  signature  of  this  Agreement.

b)     Three  thousand,  two  hundred  US dollars (US$3,200.00) for each COMPANY
Product  upon  DISTRIBUTOR's  receipt  of  each  localization  kit.

c)     Three  thousand,  two  hundred  US dollars (US$3,200.00) for each COMPANY
Product  upon  COMPANY  approval  of  the  localized  COMPANY  Product.

4.     DISTRIBUTION  TERM(S):

Subject to early termination in accordance with the provisions contained herein,
the  Distribution  Term  shall begin on the Effective Date of this Agreement and
continue in full force for a period of twelve (12) months. The Distribution Term
will  be  from  July  25,  2001  to  July  24,  2002.

5.     GUARANTEE  AND  GUARANTEE  PERIOD:

DISTRIBUTOR  guarantees  sales  of  no  less  two  thousand (2000) units of each
COMPANY  Product  listed  in  this  Agreement.

6.     TERRITORY:

     Middle  East

<PAGE>
                                    EXHIBIT B
                                    ---------

                         PROFESSIONAL SERVICES AGREEMENT

Beginning  on the ____ day of _____________ 199__, ______________ ("Contractor")
agrees  to perform services for _________________________ ("Localizer") pursuant
to  the  following  terms  ad  conditions:

1.     Acting as an independent contractor, Contractor shall render the services
as  stated  in  Exhibit 1 ("Services"). Contractor shall take direction from and
report  to  _______________________.

2.     In  consideration  for  performance of the Services and up on Localizer's
acceptance  of completion of same, Contractor shall receive from Localizer a fee
which  is  payable  in  accordance  with  Exhibit  1.

3.     Contractor  understands  that  he/she  is  not  authorized  to  incur any
expenses  on  behalf  of  Localizer  without  prior  written  consent,  and  all
statements  for  the  Services  and  expenses shall be in the form prescribed by
localizer  and  shall  be  approved  by  _________________________,  or  his/her
supervisor.

4.     Localizer  has  the  right,  in  its  sole  discretion, to terminate this
Agreement  for any reason with seven (7) days prior written notice. In the event
of  such  a termination, Localizer's sole obligation shall be to pay Contractor,
pro  rata,  for  the  fees  with  respect to all milestones achieved or Services
performed,  as  applicable,  which  shall  have been accepted as of that date by
Localizer.  Localizer  shall  have  no  further obligation, whether financial or
otherwise,  to  Contractor after such cancellation. Localizer may terminate this
Agreement  immediately  up  on  Contractor's  refusal  or  inability  to perform
pursuant  to,  or  Contractor's  breach  of,  any  provision  of this Agreement.

5.     Contractor  shall  not,  either  during or subsequent to the term of this
Agreement,  directly  or  indirectly  disclose  any  information  designated  as
confidential  by Localizer; nor shall Contractor disclose to anyone other than a
Localizer employee or use in any way other than in the course of the performance
of this Agreement any information regarding Localizer, including but not limited
to  Localizer's  product,  market, financial or other plans, product designs and
any  other  information  not  known  to  the  general public whether acquired or
developed  by  Contractor  during performance of this Agreement or obtained from
Localizer  employees;  nor  shall Contractor, either during or subsequent to the
term  of  this  Agreement,  directly  or indirectly disclose or publish any such
information  without prior written authorization from Localizer to do so. Unless
otherwise  specifically agreed to in writing, all information about and relating
to  projects  under  development  by  Localizer  and/or parties doing work under
contract  to  Localizer  including the Services rendered hereunder by Contractor
shall be considered Confidential information. Contractor acknowledges and agrees
that  all  of  the  foregoing information is proprietary to Localizer, that such
information  is a valuable and unique asset of Localizer, and that disclosure of
such  information to third parties or unauthorized use of such information would
cause  substantial  and  irreparable  injury to Localizer's ongoing business for
which there would be no adequate remedy at law. Accordingly, in the event of any
breach  or  attempted or threatened breach of any of the terms of this Paragraph
5,  Contractor  agrees  that  Localizer shall be entitled to seek injunctive and
other  equitable  relief,  without  limiting  the  applicability  of  any  other
remedies.

6.     Contractor shall return to Localizer any Localizer property that has come
into his/her possession during the term of this Agreement, when and as requested
to  do  so  by  Localizer  and  in  all  events upon termination of Contractor's
engagement  hereunder,  unless  Contractor  receives  written authorization from
Localizer  to  keep  such  property.  Contractor  shall not remove any Localizer
property  from  Localizer premises without written authorization from Localizer.

7.     As part of this Agreement, and without additional compensation, Contactor
acknowledges  and  agrees  that any and all tangible and intangible property and
work  products,  ideas, inventions, discoveries and improvements, whether or not
patentable,  which  are conceived/developed/created/obtained or first reduced to
practice  by  Contactor  for Localizer in connection with the performance of the
Services  (collectively  referred  to as the "Work Product"), including, without
limitation,  all  technical  notes, schematics, software source and object code,
prototypes,  breadboards,  computer models, artwork sketches, designs, drawings,
paintings,  illustrations,  computer  generated  artwork,   animations,   video,
film, artistic materials, photographs,  literature,  methods,  processes,  voice
recordings,  vocal  performances,  narrations, spoken word recordings and unique
character  voices,  shall  be considered "works made for hire" and therefore all
right,  title  and  interest therein (including, without limitation, patents and
copyrights)  shall  vest exclusively in Localizer. To the extent that all or any
part  of  such  Work  Products  does not qualify as a "work made for hire" under
applicable  law,  Contactor  without  further  compensation  therfor does hereby
irrevocably  assign,  transfer  and  convey  in  perpetuity to Localizer and its
successors  and  assign the entire worldwide right, title, and interest in an to
the  Work  Product including, without limitation, all patent rights, copyrights,
mask work rights, trade secret rights and other proprietary rights therein. Such
assignment  includes the transfer and assignment to Localizer and its successors
and  assigns  of  any and all moral rights which Contractor may have in the Work
Product.  Contactor  acknowledges  and understands that moral rights include the
right  of an author: to be known as the author of a work; to prevent others from
being  named  as  the  author  of  the  works;  to  prevent  others from falsely
attributing  to  an  author the authorship of a wok which he/she has not in fact
created;  to  prevent others from making deforming changed in an author's works;
to  withdraw  a  published work from distribution if it no longer represents the
views  of  the author; and to prevent others from using the work or the author's
name  in  such  a  way  as  to  reflect  on  his/her  professional  standing.

8.     None of the Work Product is to be used by Contractor on any other project
or  with  any other client except with Localizer's written consent.  If any part
of such Work Product is the work of a subcontractor employed by Contractor, then
Contractor  shall  require such subcontractors to execute an assignment document
so  as  to secure for Localizer exclusive ownership  in such  Work  Product.  In
the  event  Contractor  is  unable  to  obtain  exclusive  ownership  from  such
subcontractors,  Contractor shall obtain a license for the benefit of Localizer.
Contractor shall promptly thereafter deliver such originally executed assignment
or  license  documents  to  Localizer.

9.     With  respect  to  all subject matter including ideas, processes, designs
and  methods  which  Contractor  discloses  or  uses  in  the performance of the
Services:  a)  Contractor  warrants  that  Contractor  has  the  right  to  make
disclosure  and  use  thereof without liability or compensation to others; b) to
the  extent  that Contractor has patent applications, patents or other rights in
the  subject  matter,  Contractor  hereby  grants  Localizer,  subsidiaries  and
affiliates  a  royalty-free,  irrevocable  world-wide,  non-exclusive license to
make, have made, sell, use and disclose such subject matter, excluding only such
subject  matter, if any, which is set forth in writing in Exhibit 1 and which is
agreed  to  specifically  by  Localizer as being excluded from the grant; and c)
Contractor  agrees  to  defend  indemnify  and  hold Localizer harmless from any
claims,  litigations. actions, damages or fees of any kind (including reasonable
attorneys  fees)  arising  from  Localizers or Contractor's use or disclosure of
subject  matter  which  Contractor  knows  or reasonably should know others have
rights in. except, however, for subject matter and the identity of others having
rights  therein  that  Contractor  discloses  to  Localizer  in  writing  before
Localizer  uses  the  subject  matter.

[  REMAINDER  OF  THIS  PAGE  HAS  BEEN  INTENTIONALLY  LEFT  BLANK]

<PAGE>
10.     It  is  understood  and  agreed  that  in  performing  the  Services for
Localizer  hereunder,  Contractor  shall  act  in the capacity of an independent
contractor  and not as an employee or agent of Localizer. Contractor agrees that
it  shall not represent itself as the agent or legal representative of Localizer
for  any  purpose  whatsoever.  When  Contractor  is  working on the premises of
Localizer,  Contractor  shall  observe  the  working  hours,  working rules, and
security  procedures  established  by  Localizer.  No  right or interest in this
Agreement  shall  be assigned by Contractor without the prior written permission
of  Localizer,  and  no  delegation  of the performance of the Services or other
obligations  owed  by  Contractor  to  Localizer shall be made without the prior
written  consent  of Localizer. This Agreement shall be deemed to have been made
and  executed in the State of California and any dispute arising hereunder shall
be  resolved  in  accordance  with  the law of California. This Agreement may be
amended,  altered  or modified only by an instrument in writing, specifying such
amendment,  alteration or modification, executed by both parties. This Agreement
constitutes  and  contains the entire agreement between the parties with respect
to  the  subject  matter  hereof  and  supersedes  any  prior  oral  or  written
agreements.  Nothing  herein  contained  shall be binding upon the parties until
this  Agreement  has  been  executed by an officer or agent of each and has been
delivered  to  the  parties.

Agreed  to  and  Accepted:

Localizer                                  Contractor

Signature                                  Signature
Date:  __________________________          Date:  __________________________

<PAGE>
                                    EXHIBIT 1
1.     SERVICES
       --------
The  expected  completion  date  is  __________________

     DATE                  MILESTONES                         PAYMENTS
     ----                  ----------                         --------

___-___-9___               Signed  Contract                    $
___-___-9___
___-___-9___
___-___-9___
___-___-9___
___-___-9___
___-___-9___
___-___-9___
___-___-9___               Final  Delivery
*  Dates  listed above are for informational purposes only. Payment shall always
be  contingent  upon  timely  delivery  and  acceptance  of  each  milestone.

2.     PAYMENT
       -------
Contractor shall be paid for the Services in increments as set forth above after
acceptance  at  each  stage  of  the  work  performed.  Anything to the contrary
notwithstanding, the compensation for the Services performed hereunder shall not
exceed  $___________  without  the  express,  written  consent
of___________________________________.

3.     EXPENSES
       --------
The  following  authorized expenditures are the maximum that Contractor shall be
eligible to receive as a reimbursement. Contractor must produce receipts for all
pre-approved  expenses  for  which  Localizer  shall reimburse Contractor within
fifteen  (15)  business days of receiving such receipts and expense reports. All
expenses  incurred  by  Contractor not specifically approved herein shall be the
sole  responsibility  of  Contractor.

AMOUNT          APPROVED  EXPENSES
------          ------------------

4.     PAYMENT  SCHEDULE
       -----------------
Localizer  shall  pay Contractor within fifteen (15) business days following the
receipt  of Contractor's invoice and the approved and accepted Work Product. All
invoices  must  be  sent to the designated representative set forth in Section 1
above, with a Xerox copy of that invoice to be forwarded to Localizer's Contract
Administrator.

5.     INTELLECTUAL  PROPERTY  EXCLUSIONS
       ----------------------------------
The  following  includes  all subject matter that is excluded from the grant set
forth  in  Section  9(b):

     1.     None
     2.
     3.
     4.

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