Document:

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                                                                    EXHIBIT 10.7

ALL SECTIONS MARKED WITH ASTERISKS REFLECT PORTIONS WHICH HAVE BEEN REDACTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION BY THQ INC. AS PART
OF A REQUEST FOR CONFIDENTIAL TREATMENT.

                         CONFIDENTIAL LICENSE AGREEMENT
                              FOR NINTENDO GAMECUBE
                              (Western Hemisphere)

         THIS LICENSE AGREEMENT ("Agreement") is entered into between NINTENDO
OF AMERICA INC. ("NOA") at 4820 150th Avenue N.E., Redmond, WA 98052 Attn:
General Counsel (Fax: 425-882-3585) and THQ Inc. ("LICENSEE") at 27001 Agoura
Road, Suite 325, Calabasas Hills, CA 91301 Attn: Brian J. Farrell (Fax:
(818)-871-7400). NOA and LICENSEE agree as follows:

1.       RECITALS

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

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

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

2.       DEFINITIONS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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such patent, trademark, service mark, copyright mask work, trade secrets, trade
dress, moral rights or publicity rights may exist or may be sought and obtained
in the future.

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

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

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

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

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

3.       GRANT OF LICENSE; LICENSEE RESTRICTIONS

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

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

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

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

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

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

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

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

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

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

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

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

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

******

         3.4 Nintendo Development Tools. NOA and Nintendo Co., Ltd. may lease,
loan or sell Development Tools to LICENSEE to assist in the development of Games
under this Agreement. LICENSEE acknowledges the exclusive interest of Nintendo
in and to the Proprietary Rights associated with the Development Tools.
LICENSEE's use of the Development Tools shall not create any right, title or
interest of LICENSEE therein. LICENSEE shall not, directly or indirectly, (a)
use the Development Tools for any purpose except the design and development of
Games under this Agreement, (b) reproduce or create derivatives of the
Development Tools, except in association with the development of Games under
this Agreement, (c) Reverse Engineer the Development Tools, or (d) without NOA's
prior written approval, sell, lease, assign, lend, license, encumber or
otherwise transfer the Development Tools. Any tools developed or derived by
LICENSEE as a result of a study of the performance, design or operation of the
Development Tools shall be considered a derivative work of the Intellectual
Property Rights, but may be retained and utilized by LICENSEE in connection with
this Agreement. In no event shall LICENSEE (i) seek, claim or file for any
patent, copyright or other Proprietary Right with regard to any such derivative
work, (ii) make available any such derivative work to any third party, or (iii)
use any such derivative work except in connection with the design and
development of Games under this Agreement.

         3.5    Third Party Development Tools. NOA and Nintendo Co., Ltd. may
authorize third parties to develop and market Development Tools to authorized
developers of Games.  Notwithstanding any referral or information provided or
posted regarding such Development Tools, NOA and Nintendo Co.,

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

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Ltd. make no representations or warranties with regard to any such third party
Development Tools. Licensee acquires and utilizes such Development Tools at its
own risk. LICENSEE shall not, directly or indirectly, use such Development Tools
for any purpose except the design and development of Games under this Agreement.
All Nintendo Proprietary Rights contained in or derived from such Development
Tools shall remain owned by Nintendo.

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

4.       SUBMISSION AND APPROVAL OF GAME AND ARTWORK

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

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

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

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

         4.5    Cost of Disc Stamper Production. ******

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

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The payment will be due upon the earlier of (a) the subsequent submission by
LICENSEE of a revised version of the Game to NOA, or (b) six (6) months after
the date the Game was first approved by NOA.

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

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

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

5.       ORDER PROCESS, PURCHASE PRICE, PAYMENT AND DELIVERY

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

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

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

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

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

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

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

6.       MANUFACTURE OF THE LICENSED PRODUCT

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

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

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

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

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

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

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

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

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

7.       MARKETING AND ADVERTISING

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

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

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

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

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

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

                                                                          PAGE 8
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         7.6 Defects and Recall. In the event of a material programming defect
in a Licensed Product that would, in NOA's reasonable judgment, significantly
impair the ability of a consumer to play the Game, NOA may, after consultation
with LICENSEE, require the LICENSEE to recall the Licensed Product and undertake
suitable repairs or replacements.

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

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

8.       CONFIDENTIAL INFORMATION

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

         8.2 Disclosures Required by Law. LICENSEE shall be permitted to
disclose Confidential Information if such disclosure is required by an
authorized governmental or judicial entity, provided that LICENSEE shall notify
NOA at least ten (10) business days prior to such disclosure. LICENSEE shall use
its best commercial efforts to limit the disclosure to the greatest extent
possible consistent with

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

                                                                          PAGE 9
<PAGE>
LICENSEE's legal obligations, and if required by NOA, shall cooperate in the
preparation and entry of appropriate protective orders.

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

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

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

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

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

9.       REPRESENTATIONS AND WARRANTIES

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

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

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

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

                                                                         PAGE 10
<PAGE>
                (c) excluding the Intellectual Property Rights, LICENSEE is
either (i) the sole owner of all right, title and interest in and to the
trademarks, copyrights and all other Proprietary Rights incorporated into the
Game or the Artwork or used in the development, advertising, marketing and sale
of the Licensed Products or the Marketing Materials, or (ii) the holder of such
rights, including trademarks, copyrights and all other Proprietary Rights which
belong to any third party but have been licensed from such third party by
LICENSEE, as are necessary for incorporation into the Game or the Artwork or as
are used in the development, advertising, marketing and sale of the Licensed
Products or the Marketing Materials under this Agreement.

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

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

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

         9.3 INTELLECTUAL PROPERTY RIGHTS DISCLAIMER. NOA (ON ITS OWN BEHALF AND
ON BEHALF OF NINTENDO CO., LTD. AND ITS AFFILIATES, LICENSORS, SUPPLIERS AND
SUBCONTRACTORS) EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES
CONCERNING THE SCOPE OR VALIDITY OF THE INTELLECTUAL PROPERTY RIGHTS. NOA (ON
ITS OWN BEHALF AND ON BEHALF OF NINTENDO CO., LTD. AND ITS AFFILIATES,
LICENSORS, SUPPLIERS AND SUBCONTRACTORS) EXPRESSLY DISCLAIMS ANY WARRANTY THAT
THE DESIGN, DEVELOPMENT, ADVERTISING, MARKETING OR SALE OF THE LICENSED PRODUCTS
OR THE USE OF THE INTELLECTUAL PROPERTY RIGHTS BY LICENSEE WILL NOT INFRINGE
UPON ANY PATENT, COPYRIGHT, TRADEMARK OR OTHER PROPRIETARY RIGHTS OF A THIRD
PARTY. ANY WARRANTY THAT MAY BE PROVIDED IN ANY APPLICABLE PROVISION OF THE
UNIFORM COMMERCIAL CODE OR ANY OTHER COMPARABLE LAW OR STATUTE IS EXPRESSLY
DISCLAIMED. LICENSEE HEREBY ASSUMES THE RISK OF INFRINGEMENT.

         9.4 ******

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

******

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

                                                                         PAGE 11
<PAGE>
10.      INDEMNIFICATION

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

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

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

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

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

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

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

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

11.      PROTECTION OF PROPRIETARY RIGHTS

         11.1 Joint Actions against Infringers. LICENSEE and NOA may agree to
jointly pursue cases of infringement involving of the Licensed Products, as such
Licensed Products will contain Proprietary Rights owned by each of them. Unless
the parties otherwise agree, or unless the recovery is expressly allocated
between them by the court, in the event of such an action, any recovery shall be
used first to

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

                                                                         PAGE 12
<PAGE>
reimburse LICENSEE and NOA for their respective reasonable attorneys' fees and
costs, pro rata, and any remaining recovery shall be distributed to LICENSEE and
NOA, pro rata, based upon the fees and costs incurred in bringing such action.

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

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

12.      ASSIGNMENT

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

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

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

13.      TERM AND TERMINATION

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

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

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

                                                                         PAGE 13
<PAGE>
         13.4 Termination Other Than by Breach. Upon the expiration of this
Agreement or its termination other than by LICENSEE's breach, LICENSEE shall
have a period of ****** to sell any unsold Licensed Products in inventory or in
process. All Licensed Products in LICENSEE's control following the expiration of
such sell-off period shall be destroyed by LICENSEE within ten (10) days and
Notice of such destruction (with proof certified by an officer of LICENSEE)
shall be delivered to NOA.

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

         13.6 Breach of NDA. At NOA's option, any breach by LICENSEE of the NDA,
which breach is not cured within the time period for cure allowed under the
applicable agreement, shall be considered a material breach of this Agreement
entitling NOA to terminate this Agreement in accordance with Section 13.5
herein.

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

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

14.      GENERAL PROVISIONS

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

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

         14.3 Records and Audit. During the Term and for a period of ******,
LICENSEE agrees to keep reasonably accurate, complete and detailed records in
accordance with LICENSEE's standard business practices, relating to the use of
the Confidential Materials, the Development Tools and the Intellectual Property
Rights. Upon at least ****** prior written Notice to LICENSEE, NOA may, at its
expense, audit LICENSEE's records, reports and other information related solely
to LICENSEE's compliance with this Agreement; provided, however, that NOA shall
not, during the course of the audit, access LICENSEE's source code, development
plans, marketing plans, internal business plans or other items deemed
confidential by LICENSEE, except to the extent such

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

                                                                         PAGE 14
<PAGE>
materials incorporate, disclose or reference Nintendo's Confidential Information
or Intellectual Property Rights.

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

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

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

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

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

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

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

<TABLE>
<CAPTION>
NOA:                                     LICENSEE:
NINTENDO OF AMERICA INC.                 THQ INC.

<S>                                      <C>
By: /s/ John Bauer                       By: /s/ Leslie Brown

Title: Executive VP, Administration      Title: Vice President and Chief Legal Counsel

Date: April 5, 2002                      Date: April 4, 2002
</TABLE>

                                                                         PAGE 15<PAGE>
                                                                    EXHIBIT 10.8

ALL SECTIONS MARKED WITH ASTERISKS REFLECT PORTIONS WHICH HAVE BEEN REDACTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION BY THQ INC. AS PART
OF A REQUEST FOR CONFIDENTIAL TREATMENT.

                        MICROSOFT CORPORATION
                 XBOX(TM) PUBLISHER LICENSE AGREEMENT

This License Agreement (the "Agreement") is entered into and effective as of
March 20, 2001 (the "Effective Date") by and between MICROSOFT CORPORATION,
a Washington corporation ("Microsoft"), and THQ Inc. ("Licensee").

         A. Whereas, Microsoft develops and licenses a computer game system,
known as the Xbox(TM)game system; and

         B. Whereas, Licensee is an experienced publisher of software products
that wishes to develop and/or publish one or more software products running on
the Xbox game system, and to license proprietary materials from Microsoft, on
the terms and conditions set forth herein.

Accordingly, for and in consideration of the mutual covenants and conditions
contained herein, and for other good and valuable consideration, receipt of
which each party hereby acknowledges, Microsoft and Licensee agree as follows:

1.       DEFINITIONS. For the purposes of this Agreement,  the following terms
will have the respective  indicated meanings.

         1.1 "ART & MARKETING MATERIALS" shall mean art and mechanical formats
for a Software Title including the retail packaging, end user instruction manual
with end user license agreement and warranties, Finished Product Unit media
label, and any promotional inserts and other materials that are to be included
in the retail packaging. For purposes of the approval rights set forth in this
Agreement, Art & Marketing Materials are all final versions and final draft
versions of press releases, marketing, advertising or promotional materials
related to the Software Title and/or Finished Product Units (including without
limitation web advertising and Licensee's web pages to the extent they refer to
the Software Title(s) or the Finished Product Units) which use the Licensed
Trademarks in other than a referential manner.

         1.2 "AUTHORIZED REPLICATOR" shall mean a software replicator certified
and approved by Microsoft for replication of games that run on Xbox. Upon
Licensee's written request, Microsoft will provide Licensee with a copy of the
then-current list of Authorized Replicators, but the status of a particular
replicator and such list may change from time to time in Microsoft's sole and
absolute discretion provided that Microsoft shall provide reasonable advance
notice of any such change.

         1.3 "BRANDING SPECIFICATIONS" shall mean the specifications in Exhibit
C, and such other design specifications as Microsoft may hereafter provide from
time to time, for using the Licensed Trademarks on a Software Title and/or on
related product packaging, documentation, and other materials.

         1.4 "COMMERCIAL RELEASE" shall mean (a) with respect to Xbox, the first
distribution of an Xbox to the public for payment, and (b) with respect to a
Software Title, the earlier of the first distribution of the Software Title for
payment or distribution of Finished Product Units that are not designated as
beta or prerelease versions.

         1.5 "FINISHED PRODUCT UNIT" shall mean a DVD-9 copy, in software object
code only, of a Software Title, in whole or in part.

                                      1                   Microsoft Confidential
<PAGE>

         1.6 "LICENSED TRADEMARKS" shall mean the Microsoft trademarks depicted
in Exhibit B (which Microsoft unilaterally may modify from time to time during
the term of this Agreement upon written notice to Licensee).

         1.7 "SOFTWARE TITLE" shall mean the single software product as
described in the applicable Exhibit A (i.e., Exhibit A-1, Exhibit A-2, or
Exhibit A-n, as the case may be), developed by Licensee, and running on Xbox. A
Software Title shall include the improvements and patches thereto (if and to the
extent approved by Microsoft), but shall not include any "prequel" or "sequel."
If Microsoft approves one or more additional concept(s) for another single
software product proposed by Licensee to run on Xbox, pursuant to the procedure
set forth in Section 2.1.1 below and the Xbox Guide (as defined in Section 2.1),
then upon Microsoft's written approval of such concept, this Agreement, and the
term "Software Title," shall be broadened automatically to cover the respective
new software product and the parties will prepare, initial and append to this
Agreement a new Exhibit A-n for each such additional new software product.

         1.8 "CERTIFICATION REQUIREMENTS" shall mean the requirements specified
in this Agreement (including without limitation the Xbox Guide) for quality,
compatibility, and/or performance of a Software Title, and, to the extent not
inconsistent with the foregoing standards, the standards of quality and
performance generally accepted in the console game industry.

         1.9 "TERRITORY" shall be shall be determined on a Software
Title-by-Software Title basis, and shall mean such countries as may be specified
in writing by Microsoft when the concept of the applicable Software Title is
approved pursuant to Section 2.1.1 below. Nevertheless, this Agreement is
intended to be worldwide in scope, meaning that Licensee shall have worldwide
publication and distribution rights, although certain Software Titles may only
be approved for publication and distribution in certain Territories.

         1.10 "XBOX" shall mean the first version (as of the Commercial Release)
of Microsoft's Xbox game system, including operating system software and
hardware design specifications.

2.       DEVELOPMENT; DELIVERY; APPROVAL

         2.1 SOFTWARE TITLE DEVELOPMENT. Licensee's development activities with
respect to each Software Title shall be in accordance with the development
schedule set forth in the applicable Exhibit A-n. Furthermore, Licensee agrees
to be bound by all provisions contained in the then-applicable version of the
"Xbox Guide", the current version of which Microsoft or its affiliate will
deliver to Licensee when it is completed, after the execution of this Agreement.
Licensee understands and agrees that Microsoft may, in its discretion,
supplement, revise and update the Xbox Guide from time to time and that upon
Licensee's receipt of the applicable supplement, revision or updated version,
Licensee automatically shall be bound by all provisions of the then-current Xbox
Guide; Microsoft will specify in each such supplement, revision or updated
version a reasonable effective date of each change if such change or revision is
not required to be effective immediately. If Licensee proceeds with the
development of a Software Title, Licensee shall deliver each milestone (as
described in Sections 2.1.1, 2.1.2, 2.1.3 and 2.1.4) to Microsoft for approval
in writing. All certification and playtesting (and reasonable applicable fees
therefor, if any) will be in accordance with the then-applicable version of the
Xbox Guide. If Microsoft does not approve Licensee's submission for a given
milestone then Licensee shall either correct the problems that contributed to
the lack of approval or, if Microsoft gives Licensee written notice to cease
development, Licensee shall immediately cease all development activities for the
applicable Software Title's subsequent milestones. Each successive milestone
shall comply in all material respects with the characteristics of previously
approved milestones. Each software milestone shall be delivered in compiled
object code form.

                2.1.1 CONCEPT. Licensee shall deliver to Microsoft a written and
completed concept submission form (in the form provided by Microsoft to
Licensee), including without limitation: (a) a detailed description of the
Software Title, including but not limited to (to the extent applicable) title,
theme, plot, characters, play elements, and technical specifications; (b) the
identities of any proposed subcontractors, and general information about the
principal team of individual developers, and (c) an explanation of the design,
technical and marketing suitability of the Software Title. Evaluation of the
proposed design will be based on criteria including, but not necessarily limited
to, the following: (i) originality; (ii) play breadth and depth; (iii)
playability; (iv) replayability and long-term interest; and (v) theme,
characters and storyline. Technical evaluation of the concept will be based on
criteria including, but not necessarily limited to, feasibility of execution and
usage of system capabilities (such as graphics, audio, hard drive, play control,
online capabilities and peripherals). Marketing suitability will be evaluated
based on criteria including, but not necessarily limited to, the following: (i)
market viability; (ii) Licensee's marketing commitment (if any); (iii)
suitability to the target demographic; and (iv) overall fit with the Xbox
certified software products portfolio.

                2.1.2 PRELIMINARY VERSIONS. Licensee may, but will not be
required to, deliver to Microsoft certain preliminary versions of the Software
Title, as addressed in the Xbox Guide.

                2.1.3 FEATURE-COMPLETE VERSION. Licensee shall deliver to
Microsoft a feature-complete version of the Software Title (the "Beta Version"),
which includes all features of the Software Title and such other content as may
be required under the Xbox Guide. Concurrently with delivery of the Beta
Version, Licensee will disclose in writing to Microsoft the details about any
and all so-called "hidden characters," "cheats," "easter eggs," "bonus video
and/or audio," and similar elements of which it is aware included in the Beta
Version and/or intended to be included in the final release version of the
Software Title.

                2.1.4 FINAL RELEASE VERSION. Licensee shall deliver to
Microsoft, Licensee's proposed final release version of the applicable Software
Title that is complete and ready for manufacture and commercial distribution,
with the final content rating certification, with identified program errors
corrected, and with any and all changes previously requested by Microsoft
implemented. However, nothing herein will be deemed to relieve Licensee of its
obligation to correct program bugs and errors (including "easter eggs" or other
hidden features described in Section 2.1.3) that adversely affect game play,
whenever discovered (including without limitation after Commercial Release), and
Licensee agrees to correct such bugs and errors as soon as possible after
discovery (provided that, with respect to bugs or errors discovered after
Commercial Release of the applicable Software Title, Licensee will use
commercially reasonable efforts to correct the bug/error in all Finished Product
Units manufactured after discovery). In addition, Licensee will comply with all
certification procedures, guidelines and standards set forth in the
then-applicable version of the Xbox Guide. Licensee shall not distribute the
Software Title, nor manufacture any Finished Product Units intended for
distribution, unless and until Microsoft shall have given its final
certification and approval of the final release version of the Software Title,
and Microsoft shall have provided the code for the final release version to the
applicable Authorized Replicator(s).

                2.1.5 PLAYTESTING. Microsoft will playtest the Beta Version and
proposed final release version of each Software Title; if Licensee delivers
preliminary versions of a Software Title, Microsoft may (but will not be
obligated to) playtest such versions. Microsoft will provide written comments to
Licensee regarding the results of its playtest results, and Licensee shall
comply with any requests made by Microsoft to improve the applicable Software
Title based on such playtest results. Licensee acknowledges that,
notwithstanding its receipt of approvals from Microsoft for prior milestones or
versions during the development process, Licensee's proposed final release
version of each Software Title must be approved by Microsoft, as set forth in
the Xbox Guide. In addition to conforming with the approved concept, with all
technical specifications, and with all other requirements set by Microsoft
during the development and approval process, each Software Title must achieve a
satisfactory rating in final playtesting. Notwithstanding anything to the
contrary contained herein, Licensee acknowledges and understands that, in part,
the results of playtesting will be subjective, that Microsoft will have the
right to deny final approval based on its determination using reasonable
business judgment, and that Licensee has and will have no expectation of final
approval of any Software Title regardless of any approvals or assessments given
or made by Microsoft, informally or formally, at any time. Notwithstanding the
foregoing, it is not Microsoft's intent to provide (or to not provide) final
approvals based on playtesting results arbitrarily or in bad faith.

                                      3                   Microsoft Confidential
<PAGE>

                2.1.6 ART & MARKETING MATERIALS. Licensee shall deliver to
Microsoft for approval all Art & Marketing Materials as provided herein.
Licensee shall not distribute any specific Art & Marketing Materials unless and
until Microsoft shall have given its final certification and approval of the
specific item.

         2.2 CONTENT RATING. Licensee understands and agrees that, without
limitation, Microsoft will not give final certification and approval of a
Software Title unless and until Licensee shall have obtained, at Licensee's sole
cost, a rating of no higher than "Mature (17+)" or its equivalent from the
appropriate rating bodies for the applicable Territory (such as, ESRB, ELSPA,
etc.) and/or any and all other independent content rating authority/authorities
reasonably designated by Microsoft. Licensee shall make any changes to the
Software Title required to obtain a rating of no higher than "Mature (17+)" (or
its equivalent). In no event shall Licensee distribute any Software Title under
an "Adults Only" or higher rating (or equivalent rating). Licensee shall include
the applicable rating(s) prominently on Finished Product Units, in accordance
with the applicable rating body guidelines.

         2.3 DEVELOPMENT KIT LICENSE. Microsoft or its affiliate will offer to
Licensee the opportunity to enter into one or more development kit license(s)
(each an "XDK License") pursuant to which Microsoft would license to Licensee
software development tools and hardware to assist Licensee in the development of
Software Titles, including without limitation certain sample code and other
redistributable code which Licensee could incorporate into Software Titles, on
such terms and conditions as are contained in the XDK License.

         2.4 SUBCONTRACTORS. Licensee shall not use any subcontractors or any
other third parties to perform software development work in connection with a
Software Title unless and until (i) the proposed subcontractor or other third
party and (ii) Microsoft shall have executed an XDK license unless otherwise
permitted by Microsoft; provided that nothing contained herein will be deemed to
require Microsoft or its affiliate to execute an XDK License with any particular
person or entity if Microsoft or its affiliate determines that it is not
appropriate to execute such an XDK License.

         2.5 CHANGES OF REQUIREMENTS BY MICROSOFT. Unless otherwise reasonably
specified by Microsoft at the respective time: (a) after approval by Microsoft
of the Beta Version of a Software Title, Licensee will not be obligated to
comply, with respect to such Software Title only, with any subsequent changes
made by Microsoft to the technical or content requirements for Software Titles
generally in the Xbox Guide; and (b) subject to the immediately preceding clause
(a), any changes made by Microsoft in Branding Specifications or other
requirements after final certification of a Software Title by Microsoft will be
effective as to such Software Title only on a "going forward" basis (i.e., only
to such Art & Marketing Materials and/or Finished Product Units as are
manufactured after Microsoft notifies Licensee of the change), unless (i) the
change can be accommodated by Licensee with insignificant added expense, or (ii)
Microsoft pays for Licensee's direct, out-of-pocket expenses necessarily
incurred as a result of its retrospective compliance with the change.

3.       RIGHTS AND RESTRICTIONS

         3.1    TRADEMARKS.

                3.1.1 LICENSE. In each Software Title, and on each Finished
Product Unit (and the packaging therefor), Licensee shall incorporate the
Licensed Trademarks and include credit and acknowledgement to Microsoft as set
forth in the Branding Specifications and the Xbox Guide. Microsoft grants to
Licensee a non-exclusive, non-transferable, personal license to use the Licensed
Trademarks, according to the Branding Specifications and other conditions
herein, and solely in connection with marketing, sale, and distribution in the
Territory of Finished Product Units that meet the Certification Requirements.
Referential use of the Licensed Trademarks, such as in corporate materials and
annual reports shall not require a license and shall not be subject to approvals
by Microsoft.

                                      4                   Microsoft Confidential
<PAGE>

                3.1.2 LIMITATIONS. Licensee is granted no right, and shall not
purport, to permit any third party to use the Licensed Trademarks in any manner
without Microsoft's prior written consent except as provided herein. Licensee's
license to use Licensed Trademarks in connection with the Software Title and
Finished Product Units shall not extend to the merchandising or sale of related
or promotional products under the Licensed Trademarks.

                3.1.3 BRANDING SPECIFICATIONS. Licensee's use of the Licensed
Trademarks (including without limitation in Finished Product Unit and Art &
Marketing Materials) shall comply with the Branding Specifications in Exhibit C.
Licensee shall not use Licensed Trademarks in association with any third party
trademarks in a manner that might suggest co-branding or otherwise create
potential confusion as to source or sponsorship of the Software Title or
Finished Product Units or ownership of the Licensed Trademarks. Upon notice or
other discovery of any non-conformance with the requirements or prohibitions of
this section, Licensee shall promptly remedy such non-conformance on a
go-forward basis and notify Microsoft of the non-conformance and remedial steps
taken.

                3.1.4 CERTIFICATION REQUIREMENTS. Licensee may use the Licensed
Trademarks only in connection with the copies of the Software Title that meet
the Certification Requirements. Licensee shall test the Software Title and
Finished Product Units for conformance with the Certification Requirements
according to generally accepted and best industry practices, and shall keep
written or electronic records of such testing during the Term of this Agreement
and for no less than ****** thereafter ("Test Records"). Upon Microsoft's
request, Licensee shall provide Microsoft with copies of or reasonable access to
inspect the Test Records, Finished Product Units and Software Title (either in
pre-release or commercial release versions, as Microsoft may request). Upon
notice or other discovery of any non-conformance with the Certification
Requirements, Licensee shall promptly remedy such non-conformance in all
Finished Product Units (subject to Sections 2.1.4 and 2.5 above), and shall
notify Microsoft of the non-conformance and remedial steps taken.

                3.1.5 PROTECTION OF LICENSED TRADEMARKS. Licensee shall assist
Microsoft at Microsoft's cost in protecting and maintaining Microsoft's rights
in the Licensed Trademarks, including preparation and execution of documents
necessary to register the Licensed Trademarks or record this Agreement, and
giving immediate notice to Microsoft of potential infringement of the Licensed
Trademarks. Microsoft shall have the sole right to and in its sole discretion
may commence, prosecute or defend, and control any action concerning the
Licensed Trademarks, either in its own name or, with Licensee's consent, by
joining Licensee as a party thereto. Licensee shall not during the Term of this
Agreement contest the validity of, by act or omission jeopardize, or take any
action inconsistent with, Microsoft's rights or goodwill in the Licensed
Trademarks in any country, including attempted registration of any Licensed
Trademark, or use or attempted registration of any mark confusingly similar
thereto.

                3.1.6 OWNERSHIP. Licensee acknowledges Microsoft's ownership of
all Licensed Trademarks, and all goodwill associated with the Licensed
Trademarks. Use of the Licensed Trademarks shall not create any right, title or
interest therein in Licensee's favor. Licensee's use of the Licensed Trademarks
shall inure solely to the benefit of Microsoft.

                3.1.7 NO BUNDLING WITH UNAPPROVED PERIPHERALS, PRODUCTS OR
SOFTWARE. Licensee shall not market or distribute any Finished Product Unit
bundled with any unapproved peripheral product software or other products, nor
shall Licensee knowingly permit or assist any third party in such bundling,
without Microsoft's prior written consent.

         3.2 ******

         3.3 NO ELECTRONIC TRANSMISSION. Licensee shall distribute the Software
Title only as embodied in Finished Product Units; specifically, but without
limitation, Licensee shall not distribute the Software Title by any means of
electronic transmission without the prior written approval of Microsoft, which
Microsoft may grant or withhold in its discretion. For the avoidance of doubt,
nothing herein is intended to prevent Licensee from taking and filling orders
for Finished Product Units over the internet. Furthermore, Licensee will not
authorize or permit any online activities involving the Software Title,
including without limitation multiplayer, peer-to-peer and/or online play,
without the prior written approval of Microsoft, which Microsoft may grant or
withhold in its discretion. The parties will enter into an amendment to this
Agreement or a separate agreement covering such online activities.

         3.4 NO DISTRIBUTION OUTSIDE THE TERRITORY. Licensee shall distribute
Finished Product Units only in the Territory. Licensee shall not directly or
indirectly export any Finished Product Units from the Territory nor shall
Licensee knowingly permit or assist any third party in doing so, nor shall
Licensee distribute Finished Product Units to any person or entity that it has
reason to believe may re-distribute or sell such Finished Product Units outside
the Territory.

         3.5 NO REPRODUCTION OF FINISHED PRODUCT UNITS EXCEPT BY MICROSOFT OR
AUTHORIZED REPLICATORS. Licensee acknowledges that this Agreement does not grant
Licensee the right to reproduce or otherwise manufacture Finished Product Units
itself, or on its behalf, other than with Microsoft or an Authorized Replicator.
Licensee must use Microsoft or an Authorized Replicator to produce Finished
Product Units, pursuant to Section 4.

         3.6 NO REVERSE ENGINEERING. Licensee may utilize and study the design,
performance and operation of Xbox solely for the purposes of developing the
Software Title. Notwithstanding the foregoing, Licensee shall not, directly or
indirectly, reverse engineer or aid or assist in the reverse engineering of all
or any part of Xbox except and only to the extent that such activity is
expressly permitted by applicable law notwithstanding this limitation. Reverse
engineering includes, without limitation, decompiling, disassembly, sniffing,
peeling semiconductor components, or otherwise deriving source code. In addition
to any other rights and remedies that Microsoft may have under the
circumstances, Licensee shall be required in all cases to pay royalties to
Microsoft in accordance with Section 6 below with respect to any games or other
products that are developed, marketed or distributed by Licensee, and derived in
whole or in part from the reverse engineering of Xbox or any Microsoft data,
code or other material.

         3.7    RESERVATION OF RIGHTS. Microsoft reserves all rights not
explicitly granted herein.

         3.8 OWNERSHIP OF THE SOFTWARE TITLES. Except for the intellectual
property supplied by Microsoft to Licensee (including without limitation the
licenses in the Licensed Trademarks hereunder and the licenses in certain
software and hardware granted by an XDK License), ownership of which is retained
by Microsoft, insofar as Microsoft is concerned, Licensee will own all rights in
and to the Software Titles.

4.       MANUFACTURING

         4.1    APPROVED REPLICATORS.  Licensee shall retain only an Authorized
Replicator to manufacture all Finished Product Units.

         4.2 TERMS OF USE OF AUTHORIZED REPLICATOR. Licensee will notify
Microsoft in writing of the identity of the applicable Authorized Replicator and
unless Microsoft agrees otherwise, the agreement for such manufacturing/
replication services shall be as negotiated by Licensee and the applicable
Authorized Replicator, subject to the following requirements:

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

                                      6                   Microsoft Confidential
<PAGE>
'
                4.2.1 Microsoft, and not Licensee, will provide to the single
applicable Authorized Replicator the final release version of the Software Title
and all specifications required by Microsoft for the manufacture of the Finished
Product Units (including without limitation the Security Technology (as defined
in Section 4.4 below); Licensee will be responsible for preparing and delivering
to the Authorized Replicator all other items required for manufacturing Finished
Product Units; and Licensee agrees that all Finished Product Units must be
replicated in conformity with all of the quality standards and manufacturing
specifications, policies and procedures that Microsoft requires of its
Authorized Replicators, and that all so-called "adders" must be approved by
Microsoft prior to packaging (in accordance with Section 2.1.6 above);

                4.2.2 Microsoft will have the right, but not the obligation, to
be supplied with up to ****** Finished Product Units (including pre-production
samples and random units manufactured during production runs) at Licensee's cost
but without royalties, for quality assurance and archival purposes;

                4.2.3 the initial manufacturing order for Finished Product Units
of each Software Title may not be less than a number specified by Microsoft in
the Xbox Guide; although such number may change from time to time during the
Term of this Agreement, initially it will be ******;

                4.2.4 Microsoft shall not be responsible for ensuring that all
Finished Product Units are free of all defects (provided that Licensee shall not
be in breach of this Agreement as a result of defects in Finished Product Units,
although the existence of such defects may give rise to other affirmative
obligations of Licensee as set forth elsewhere in this Agreement);

                4.2.5 Licensee will use commercially reasonable efforts to cause
the Authorized Replicator to deliver to Microsoft true and accurate monthly
statements of Finished Product Units manufactured in each calendar month, on a
Software Title-by-Software Title basis and in sufficient detail to satisfy
Microsoft, within fifteen (15) days after the end of the applicable month, and
Microsoft will have reasonable audit rights to examine the records of the
Authorized Replicator regarding the number of Finished Product Units
manufactured;

                4.2.6 In the event that Microsoft would like to have included in
the packaging of Finished Product Units such marketing materials for Xbox and/or
other Xbox products or services as Microsoft may determine in its reasonable
discretion, then Microsoft shall seek written approval from Licensee on a case
by case basis. If Licensee grants such approval, Microsoft will be responsible
for delivering to the Authorized Replicator all such marketing materials
approved for inclusion with Finished Product Units, and any incremental
insertion costs relating to such marketing materials will be borne by Microsoft;

                4.2.7 Microsoft does not guarantee any level of performance by
its Authorized Replicators, and Microsoft will have no liability to Licensee for
any Authorized Replicator's failure to perform its obligations under any
applicable agreement between Microsoft and such Authorized Replicator and/or
between Licensee and such Authorized Replicator.

                4.2.8 Prior to placing an order with a replicator/manufacturer
for Finished Product Units, Licensee shall confirm with Microsoft that such
entity is an Authorized Replicator; Microsoft will endeavor to keep an
up-to-date list of Authorized Replicators in the Xbox Guide. Licensee will not
place any order for Finished Product Units with any entity that is not at such
time an Authorized Replicator.

         4.3 APPROVAL OF NEW AUTHORIZED REPLICATOR. If Licensee requests that
Microsoft certify and approve a third party replicator that is not then an
Authorized Replicator, Microsoft will consider such request in good faith.
Licensee acknowledges and agrees that Microsoft may condition certification and
approval of such third party on the execution of an agreement in a form
satisfactory to Microsoft pursuant to which such third party agrees to strict
quality standards, non-disclosure requirements, license fees for use of
Microsoft intellectual property and trade secrets, and procedures to protect
Microsoft's intellectual property and trade secrets. Notwithstanding anything
contained herein, Licensee acknowledges that Microsoft is not required to
certify or approve any particular third party as an Authorized Replicator, and
that the certification and approval process may be time-consuming.

         4.4 SECURITY. Microsoft will have the right to add to the final release
version of the Software Title delivered by Licensee to Microsoft, and to all
Finished Product Units, such digital signature technology and other security
technology and copyright management information (collectively, "Security
Technology") as Microsoft may determine to be necessary, and/or Microsoft may
modify the signature included in any Security Technology included in the
Software Title by Licensee at Microsoft's direction. Additionally, Microsoft may
add Security Technology that prohibits the play of Software Titles on Xbox units
manufactured in a region or country different from the location of manufacture
of the respective Finished Product Units.

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

                                      8                   Microsoft Confidential
<PAGE>

5.       MARKETING, SALES AND SUPPORT

         5.1 LICENSEE RESPONSIBLE. As between Microsoft and Licensee, Licensee
shall be solely responsible for marketing and sales of the Software Title, and
for providing technical and all other support to the end users of the Finished
Product Units. Licensee will provide all end users of Software Titles contact
information (including without limitation Licensee's street address and
telephone number, and the applicable individual/group responsible for customer
support). Such end user support will be consistent with the then-applicable
console game industry standards. Licensee acknowledges and agrees that Microsoft
will have no support responsibilities whatsoever to end users of the Software
Title or with respect to Finished Product Units.

         5.2 ART & MARKETING MATERIALS. In accordance with Section 2.1.6 above,
Licensee shall submit all Art & Marketing Materials to Microsoft, and Licensee
shall not distribute such Art & Marketing Materials unless and until Microsoft
has approved them in writing. Prior to publication of any Art & Marketing
Materials, Licensee agrees to incorporate all changes relating to use of the
Licensed Trademarks that Microsoft may request, and will use its commercially
reasonable efforts to incorporate other changes reasonably suggested by
Microsoft (provided, however, that Licensee shall at all times comply with the
requirements set forth in the Branding Specifications and/or the Xbox Guide).
Microsoft further agrees that if it approves any particular Art & Marketing
Materials, then subsequent uses of substantially similar Art & Marketing
Materials in substantially similar contexts shall require no additional
approvals.

         5.3 WARRANTY. Licensee shall provide the original end user of any
Finished Product Unit a minimum ninety (90) day limited warranty that the
Finished Product Unit will perform in accordance with its user documentation or
Licensee will provide a replacement Finished Product Unit at no charge.

         5.4 RECALL. Notwithstanding anything to the contrary contained in this
Agreement (including without limitation Section 2.1.4), in the event of a
material defect in a substantial number of Finished Product Units, which defect
in the reasonable judgment of Microsoft would significantly impair the ability
of an end user to play such Software Title or Finished Product Unit, Microsoft
may require Licensee to recall Finished Product Units and undertake prompt
repair or replacement of such Software Title and/or Finished Product Units.

         5.5 SOFTWARE TITLE LICENSE. Subject to third party rights of which
Licensee will inform Microsoft in writing, Licensee hereby grants to Microsoft a
fully-paid, royalty-free, non-exclusive license (i) to publicly perform the
Software Titles at conventions, events, trade shows, press briefings, and the
like; and (ii) to use the title of the Software Title, and screen shots from the
Software Title, in advertising and promotional material relating to Xbox and
related Microsoft products and services, as Microsoft may reasonably deem
appropriate, provided that in such event Microsoft shall provide a credit to THQ
in a form mutually agreed to by the parties. In the event that any of the
foregoing rights are limited by Licensee's third-party licensing restrictions,
then upon request by Microsoft or as otherwise disclosed to Microsoft by
Licensee, Licensee shall detail any applicable restrictions on the license grant
set forth herein and, where permitted, provide Microsoft with various Licensee
marketing materials that may be used by Microsoft without the need for further
approvals. The parties further agree to develop a process whereby Software
Title(s) and/or screenshots thereof which contain such third-party licensed
materials may be pre-approved for use in the manners described herein. Nothing
herein shall preclude Microsoft from using screen shots, publicity materials,
etc. as permitted by law without a license (for example, pursuant to a right of
"fair use" under applicable copyright law or a "referential" use under trademark
law). The parties will use good faith efforts to consult on a regular basis
about advertising, marketing and promotional events relating to the Software
Title; and Microsoft further agrees to consult Licensee in advance of any
marketing or advertising that makes significant use of or reference to the
Software Title.

6.       PAYMENTS

         6.1 ROYALTIES. Licensee shall pay Microsoft royalties, on a Software
Title-by-Software Title basis, for each Finished Product Unit manufactured, in
accordance with the following table:

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

                                      9                   Microsoft Confidential
<PAGE>
<TABLE>
<CAPTION>

FINISHED PRODUCT UNITS MANUFACTURED          ROYALTY PER APPLICABLE FINISHED PRODUCT UNIT
-----------------------------------          --------------------------------------------
                                                              US DOLLARS
                                                              ----------
                                                                             YEN

                                                              ----------
                                                                           EUROS

                                                              ----------
<S>                                          <C>
         Units * - *                                              *
                                                                             *
                                                                             *

</TABLE>

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

                                      10                  Microsoft Confidential
<PAGE>
<TABLE>
<CAPTION>

FINISHED PRODUCT UNITS MANUFACTURED       ROYALTY PER APPLICABLE FINISHED PRODUCT UNIT
-----------------------------------       --------------------------------------------
                                                           US DOLLARS
                                                           ----------
                                                                             YEN

                                                           ----------
                                                                           EUROS

                                                           ----------
<S>                                       <C>
      Units * - *                                              *
                                                                             *
                                                                             *

     Units * - *                                               *
                                                                             *
                                                                             *

      Units * and above                                        *
                                                                             *
                                                                             *

</TABLE>

Notwithstanding the foregoing, no royalties will be payable hereunder with
respect to any Demo Finished Product Units. For the purposes hereof, a "Demo
Finished Product Unit" will mean a Finished Product Unit that (i) contains only
a small portion of the applicable Software Title, (ii) is provided to end users
only to advertise or promote the applicable Software Title (although it may
include demonstration versions of other games for Xbox published by Licensee),
(iii) is manufactured in a number of units that has been approved in advance by
Microsoft, which approval Microsoft agrees not to unreasonably withhold, and
(iv) is distributed free or with a suggested retail price of not more than
US$***.

         6.2 ROYALTY PAYMENTS. Licensee shall have the option of paying the
above royalties in US Dollars, Japanese Yen or Euros, according to the terms of
this Section. By designating the appropriate box below, Licensee may choose to
pay royalties on either a "Worldwide" or "Regional" basis. Such designation
shall be binding throughout the term of this Agreement for all of Licensee's
Software Titles. If Licensee elects to pay on a Worldwide basis, it shall pay
royalties in US Dollars regardless of where the Finished Product Units are
distributed or manufactured. If Licensee elects to pay on a Regional basis, it
shall pay royalties in US Dollars, Japanese Yen or Euros in accordance with the
table set forth in Section 6.1 but subject to the rest of this Section 6.2:

                (i) If the Authorized Replicator manufacturing the Finished
Product Units is located in Japan, Singapore, Malaysia or Taiwan, Licensee shall
pay its royalty denominated in Japanese Yen for such Finished Product Units.

                (ii) If the Authorized Replicator manufacturing the Finished
Product Units is located in a member country of the European Union, Licensee
shall pay its royalty denominated in Euros for such Finished Product Units.

                (iii) If the Authorized Replicator manufacturing the Finished
Product Units is located in any other country or region of the world, Licensee
shall pay its royalty denominated in US Dollars for such Finished Product Units.

Notwithstanding the foregoing, in the event the conversion ratio for either Yen
or Euros to Dollars, as described in the US edition of the Wall Street Journal,
falls outside the foreign exchange trading range as set forth in the chart
below, for a period of time greater than 30 consecutive days, Microsoft may then
readjust the royalty amounts set forth in Section 6.1 for that currency. Such
readjustments shall be made in Microsoft's good faith discretion according to
its normal practices.

<TABLE>
<CAPTION>

 YEN/EURO TO US DOLLAR TRADING RANGE
 -----------------------------------
         MINIMUM     MAXIMUM
         -------     -------
<S>      <C>         <C>
Yen          *          *
Euros        *          *
</TABLE>

   Worldwide     __________(initials)

   Regional      __________(initials)

         6.3 PAYMENT PROCESS. After its receipt from the applicable Authorized
Replicator(s) of each monthly statement of Finished Product Units manufactured,
Microsoft will invoice Licensee for the amount owed to Microsoft pursuant to
Section 6.1 above based upon the applicable statement. Licensee shall pay to
Microsoft the full amount invoiced within thirty (30) calendar days (or such
other time period mutually agreed by the parties) after the date of the
respective invoice. Payment will be made by wire transfer, in immediately
available funds, to an account, and in accordance with a reasonable procedure,
to be specified in writing by Microsoft.

         6.4 AUDIT. Licensee shall keep all usual and proper records related to
its performance (and any subcontractor's performance) under this Agreement,
including support for any cost borne by or income due to Microsoft, for a
minimum period of **** from the date they are created. Such records,
books of account, and entries shall be kept in accordance with generally
accepted accounting principles. Microsoft reserves the right, upon **** notice,
to audit Licensee's records and consult with Licensee's accountants for the
purpose of verifying Licensee's compliance with the terms of this Agreement and
for a period of ****. Any such audit shall be made by Microsoft's internal
audit team or any Microsoft designee, and shall be conducted during regular
business hours at the Licensee's (or any applicable subcontractor's) offices.
Any such audit shall be paid for by Microsoft unless material discrepancies
are disclosed. "Material" shall mean **** of the royalties due to Microsoft
within the audit period. If material discrepancies are disclosed, Licensee
agrees to pay Microsoft for the actual and reasonable out-of-pocket costs
associated with the audit, as well as reimburse Microsoft for all underpaid
amounts, plus interest at a rate of **** per annum.

         6.5    TAXES.

                6.5.1 The royalties to be paid by Licensee to Microsoft herein
do not include any foreign, U.S. federal, state, local, municipal or other
governmental taxes, customs and other duties, levies, fees, excises or tariffs,
arising as a result of or in connection with the transactions contemplated under
this Agreement including, without limitation, any state or local sales or use
taxes or consumption tax or any value added tax or business transfer tax now or
hereafter imposed on the provision of goods and services to Licensee by
Microsoft under this Agreement, regardless of whether the same are separately
stated by Microsoft (all such taxes and other charges being referred to herein
as "Taxes"). All Taxes (and any penalties, interest, or other additions to any
Taxes), with the exception of taxes imposed on Microsoft's net income or with
respect to Microsoft's property ownership, shall be the financial responsibility
of Licensee. Licensee agrees to indemnify, defend and hold Microsoft harmless
from any such Taxes or claims, causes of action, costs (including, without
limitation, reasonable attorneys' fees) and any other liabilities of any nature
whatsoever related to such Taxes.

                6.5.2 Licensee will pay all applicable value added, sales and
use taxes and other taxes levied on it by a duly constituted and authorized
taxing authority on the Finished Product Units or any transaction related
thereto in each country in which the services and/or property are being provided
or in which the transactions contemplated hereunder are otherwise subject to
tax, regardless of the method of delivery. Any taxes that are owed by Licensee,
(i) as a result of entering into this Agreement and the payment of the fees
hereunder, (ii) are required or permitted to be collected from Licensee by
Microsoft under applicable law, and (iii) are based upon the amounts payable
under this Agreement (such taxes described in (i), (ii), and (iii) above the
"Collected Taxes"), shall be remitted by Licensee to Microsoft, whereupon, upon
request, Microsoft shall provide to Licensee tax receipts or other evidence
indicating that such Collected Taxes have been collected by Microsoft and
remitted to the appropriate taxing authority. Licensee may provide to Microsoft
an exemption certificate acceptable to Microsoft and to the relevant taxing
authority (including without limitation a resale certificate) in which case,
after the date upon which such certificate is received in proper form, Microsoft
shall not collect the taxes covered by such certificate.

                6.5.3 Any taxes are required to be withheld, on payments made by
Licensee to Microsoft, Licensee may deduct such taxes from the amount owed
Microsoft and pay them to the appropriate taxing authority; provided however,
that Licensee shall promptly secure and deliver to Microsoft an official receipt
for any such taxes withheld or other documents necessary to enable Microsoft to
claim a U.S. Foreign Tax Credit. Licensee will make certain that any taxes
withheld are minimized to the extent possible under applicable law.

                6.5.4 This tax Section 6.5 shall govern the treatment of all
taxes arising as a result of or in connection with this Agreement
notwithstanding any other section of this Agreement.

7.       NON-DISCLOSURE; ANNOUNCEMENTS

         7.1 NON-DISCLOSURE AGREEMENT. The information, materials and software
exchanged by the parties hereunder or under an XDK License, including the terms
and conditions hereof and of the XDK License, shall be subject to the
Non-Disclosure Agreement between the parties attached hereto and incorporated
herein by reference as Exhibit D.

         7.2 PUBLIC ANNOUNCEMENTS. The parties contemplate that they will
coordinate the issuance of initial press releases, or a joint press release,
announcing the relationship established by the execution of this Agreement.
However, neither party shall issue any such press release or make any such
public announcement(s) without the express prior consent of the other party,
which consent will not be unreasonably withheld or delayed. Furthermore, the
parties agree to use their commercially reasonable efforts to coordinate in the
same manner any subsequent press releases and public announcements relating to
their relationship hereunder prior to the issuance of the same. Nothing
contained in this Section 7.2 will relieve Licensee of any other obligations it
may have under this Agreement, including without limitation its obligations to
seek and obtain Microsoft approval of Art & Marketing Materials.

         7.3 REQUIRED PUBLIC FILINGS. Notwithstanding Sections 7.1 and 7.2, the
parties acknowledge that this Agreement, or portions thereof, may be required
under applicable law to be disclosed, as part of or an exhibit to a party's
required public disclosure documents. If either party is advised by its legal
counsel that such disclosure is required, it will notify the other in writing
and the parties will jointly seek confidential treatment of this Agreement to
the maximum extent reasonably possible, in documents approved by both parties
and filed with the applicable governmental or regulatory authorities, and/or
Microsoft will prepare a redacted version of this Agreement for filing.

8.       TERM AND TERMINATION

         8.1 TERM. The term of this Agreement shall commence on the Effective
Date and unless terminated earlier as provided herein, shall continue until
three (3) years after Commercial Release of Xbox.

         8.2 TERMINATION FOR BREACH. In the event either party shall materially
fail to perform or comply with this Agreement or any provision thereof, and fail
to remedy the default within thirty (30) days after the receipt of notice to
that effect, then the other party shall have the right, at its sole option and
upon written notice to the defaulting party, to terminate this Agreement upon
written notice. Any notice of default hereunder shall be prominently labeled
"NOTICE OF DEFAULT" provided, however, that if the default is a material breach
of Section 3 or 7.1 above, or an XDK License, then the non-defaulting party may
terminate this Agreement immediately upon written notice, without being
obligated to provide a thirty -day cure period. The rights and remedies provided
in this Section shall not be exclusive and are in addition to any other rights
and remedies provided by law or this Agreement. If the uncured default is
related to a particular Software Title, then the party not in default will have
the right, in its discretion, to terminate this Agreement in its entirety or
with respect to the applicable Software Title.

         8.3 EFFECT OF TERMINATION; SELL-OFF RIGHTS. Upon termination or
expiration of this Agreement, Licensee shall have no further right to exercise
the rights licensed hereunder or otherwise acquired in relation to this
Agreement and shall promptly return any and all copies of the Licensed
Trademarks. Licensee shall have a period of **** following expiration
of this Agreement, or termination for a reason other than Licensee's material
breach, to sell-off its inventory of Finished Product Units existing as of the
date of termination or expiration, after which sell-off period Licensee
immediately shall destroy all Finished Product Units then in its possession, in
process or under its control. All of Licensee's obligations under this Agreement
shall continue to apply during such **** sell-off period. If this Agreement
is terminated due to Licensee's material breach, Licensee shall immediately
destroy all Finished Product Units not yet distributed to Licensee's
distributors, dealers and/or end users. If requested by Microsoft in writing,
Licensee will deliver to Microsoft the written certification by an officer of
Licensee confirming the destruction of Finished Product Units required
hereunder.

         8.4 SURVIVAL. The following provisions shall survive termination of
this Agreement: 1, 3.6, 5.1, 5.3, , 6, 7, 8.3, 8.4, 9, 10, 11 and 12.

9.       WARRANTIES

         9.1    LICENSEE.  Licensee warrants and represents that:

                9.1.1 It has the full power to enter into this Agreement;

                9.1.2 It has not previously and will not grant any rights to any
third party that are inconsistent with the rights granted to Microsoft herein;
and

                9.1.3 The Software Title, Finished Product Units, Art &
Marketing Materials (excluding those portions that consist of the Licensed
Trademarks, and redistributable components of the so-called "XDK" in the form as
delivered to Licensee by Microsoft pursuant to an XDK License) do not and will
not infringe upon or misappropriate any third party trade secrets, copyrights,
trademarks, patents, publicity, privacy or other proprietary rights.

         9.2    MICROSOFT. Microsoft warrants and represents that:

                9.2.1 It has the full power to enter into this Agreement; and

                9.2.2 It has not previously and will not grant any rights to any
third party that are inconsistent with the rights granted to Licensee herein.

         9.3  ****

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

                                      14                  Microsoft Confidential
<PAGE>
VIRUSES. WITHOUT LIMITATION, MICROSOFT PROVIDES NO WARRANTY OF NON-INFRINGEMENT.

         9.4 LIMITATION OF LIABILITY. THE MAXIMUM LIABILITY OF MICROSOFT TO
LICENSEE OR ANY THIRD PARTY ARISING OUT OF THIS AGREEMENT SHALL BE ******.
FURTHERMORE, UNDER NO CIRCUMSTANCES SHALL MICROSOFT BE LIABLE TO LICENSEE FOR
ANY DAMAGES WHATSOEVER WITH RESPECT TO ANY CLAIMS RELATING TO THE SECURITY
TECHNOLOGY AND/OR ITS EFFECT ON ANY SOFTWARE TITLE.

10.      INDEMNITY

         10.1 INDEMNIFICATION. A claim for which indemnity may be sought
hereunder shall be referred to as a "Claim."

                10.1.1 MUTUAL INDEMNIFICATION. Each party hereby agrees to
indemnify, defend, and hold the other party harmless from any and all claims,
demands, costs, liabilities, losses, expenses and damages (including reasonable
attorneys' fees, costs, and expert witnesses' fees) arising out of or in
connection with any claim that, taking the claimant's allegations to be true,
would result in a breach by the indemnifying party of any of its warranties and
covenants set forth in Section 9.

                10.1.2 ADDITIONAL LICENSEE INDEMNIFICATION OBLIGATION. Licensee
further agrees to indemnify, defend, and hold Microsoft harmless from any and
all claims, demands, costs, liabilities, losses, expenses and damages (including
reasonable attorneys' fees, costs, and expert witnesses' fees) arising out of or
in connection with any claim regarding any Software Title or Finished Product
Unit, including without limitation any claim relating to quality, performance,
safety or conformance with the Certification Requirements, or arising out of
Licensee's use of the Licensed Trademarks in breach of this Agreement, but not
to the extent arising out of Xbox or the Licensed Trademarks themselves.

         10.2 NOTICE AND ASSISTANCE. The indemnified party shall: (i) provide
the indemnifying party reasonably prompt notice in writing of any Claim and
permit the indemnifying party to answer and defend such Claim through counsel
chosen and paid by the indemnifying party; and (ii) provide information,
assistance and authority to help the indemnifying party defend such Claim. The
indemnified party may participate in the defense of any Claim at its own
expense. The indemnifying party will not be responsible for any settlement made
by the indemnified party without the indemnifying party's written permission,
which will not be unreasonably withheld or delayed. In the event the
indemnifying party and the indemnified party agree to settle a Claim, the
indemnified party agrees not to publicize the settlement without first obtaining
the indemnifying party's written permission.

         10.3 INSURANCE. Prior to distribution of any Software Title, Licensee
at its sole cost and expense shall have endorsed Microsoft as an additional
insured on Licensee's media perils errors and omissions liability policy for
claims arising in connection with production, development and distribution of
each Software Title in an amount no less than ****** on a per occurrence or
per incident basis. Coverage provided to Microsoft under the policy shall be
primary to and not contributory with any insurance maintained by Microsoft. Upon
request, Licensee agrees to furnish copies of the additional insured endorsement
and/or a certificate of insurance evidencing compliance with this requirement.

[*]  Confidential portion omitted and filed separately with the Securities and
     Exchange Commission.

                                      15                  Microsoft Confidential
<PAGE>

11.      PROTECTION OF PROPRIETARY RIGHTS

         11.1 MICROSOFT INTELLECTUAL PROPERTY. In the event Licensee learns of
any infringement or imitation of the Licensed Trademarks, the Software Title or
the Finished Product Units, or the proprietary rights in or related to any of
them, it will promptly notify Microsoft thereof. Microsoft may take such action
as it deems advisable for the protection of its rights in and to such
proprietary rights, and Licensee shall, if requested by Microsoft, cooperate in
all reasonable respects therein at Microsoft's expense. In no event, however,
shall Microsoft be required to take any action if it deems it inadvisable to do
so. Microsoft will have the right to retain all proceeds it may derive from any
recovery in connection with such actions to the extent that it pertains solely
to Microsoft's proprietary rights.

         11.2 LICENSEE INTELLECTUAL PROPERTY. Licensee, without the express
written permission of Microsoft, may bring any action or proceeding relating to
this infringement or potential infringement, to the extent such infringement
involves any proprietary rights of Licensee (provided that Licensee will not
have the right to bring any such action or proceeding involving Microsoft's
intellectual property). Licensee shall make reasonable efforts to inform
Microsoft regarding such actions in a timely manner. Licensee will have the
right to retain all proceeds it may derive from any recovery in connection with
such actions. Licensee agrees to use commercially reasonable efforts to protect
and enforce its proprietary rights in the Software Title.

         11.3 JOINT ACTIONS. Licensee and Microsoft may agree to jointly pursue
cases of infringement involving the Software Titles (since such products will
contain intellectual property owned by each of them). Unless the parties
otherwise agree, or unless the recovery is expressly allocated between them by
the court (in which case the terms of Sections 11.1 and 11.2 will apply), in the
event Licensee and Microsoft jointly prosecute an infringement lawsuit under
this provision, any recovery shall be used first to reimburse Licensee and
Microsoft for their respective reasonable attorneys' fees and expenses, pro
rata, and any remaining recovery shall also be given to Licensee and Microsoft
pro rata based upon the fees and expenses incurred in bringing such action.

12.      GENERAL

         12.1 GOVERNING LAW; VENUE; ATTORNEYS FEES. This Agreement shall be
construed and controlled by the laws of the State of Washington, U.S.A., and
Licensee consents to exclusive jurisdiction and venue in the federal courts
sitting in King County, Washington, U.S.A., unless no federal jurisdiction
exists, in which case Licensee consents to exclusive jurisdiction and venue in
the Superior Court of King County, Washington, U.S.A. Licensee waives all
defenses of lack of personal jurisdiction and forum non conveniens. Process may
be served on either party in the manner authorized by applicable law or court
rule. If either party employs attorneys to enforce any rights arising out of or
relating to this Agreement, the prevailing party shall be entitled to recover
its reasonable attorneys' fees, costs and other expenses. This choice of
jurisdiction provision does not prevent Microsoft from seeking injunctive relief
with respect to a violation of intellectual property rights or confidentiality
obligations in any appropriate jurisdiction.

         12.2 NOTICES; REQUESTS. All notices and requests in connection with
this Agreement shall be deemed given as of the day they are (i) deposited in the
U.S. mails, postage prepaid, certified or registered, return receipt requested;
or (ii) sent by overnight courier, charges prepaid, with a confirming fax; and
addressed as follows:

                                      16                  Microsoft Confidential
<PAGE>
<TABLE>

<S>                            <C>
             Licensee:         THQ Inc.
                               27001 Agoura Rd.
                               Suite 325
                               Calabasas Hills, CA  91301

             Attention:        President & CEO
             Fax:              818-871-7400
             Phone:            818-871-5000
             Copy to:          VP & Chief Legal Counsel (at the same address)

             Microsoft:        MICROSOFT CORPORATION

                                One Microsoft Way

                             Redmond, WA 98052-6399

             Attention:        Xbox Third-Party Account Management Team

             with a cc to:     MICROSOFT CORPORATION
                                One Microsoft Way

                             Redmond, WA 98052-6399

             Attention:        Law & Corporate Affairs Department
                               Product Development & Marketing

             Fax:              (425) 936-7329
</TABLE>

or to such other address as the party to receive the notice or request so
designates by written notice to the other.

         12.3 ASSIGNMENT. Licensee may not assign this Agreement or any portion
thereof, to any third party unless Microsoft expressly consents to such
assignment in writing, not to be unreasonably withheld. Microsoft will have the
right to assign this Agreement and/or any portion thereof as Microsoft may deem
appropriate. For the purposes of this Agreement, a merger, consolidation, or
other corporate reorganization, or a transfer or sale of a controlling interest
in a party's stock, or of all or substantially all of its assets shall be deemed
to be an assignment. This Agreement will inure to the benefit of and be binding
upon the parties, their successors, administrators, heirs, and permitted
assigns.

         12.4 NO PARTNERSHIP. Microsoft and Licensee are entering into a license
pursuant to this Agreement and nothing in this Agreement shall be construed as
creating an employer-employee relationship, a partnership, or a joint venture
between the parties.

         12.5 SEVERABILITY. In the event that any provision of this Agreement is
found invalid or unenforceable pursuant to judicial decree or decision, the
remainder of this Agreement shall remain valid and enforceable according to its
terms. The parties intend that the provisions of this Agreement be enforced to
the fullest extent permitted by applicable law. Accordingly, the parties agree
that if any provisions are deemed not enforceable, they shall be deemed modified
to the extent necessary to make them enforceable.

         12.6 INJUNCTIVE RELIEF. The parties agree that Licensee's threatened or
actual unauthorized use of the Licensed Trademarks whether in whole or in part,
may result in immediate and irreparable damage to Microsoft for which there is
no adequate remedy at law, and that either party's threatened or actual breach
of the confidentiality provisions may cause like damage to the nonbreaching
party, and in such event the nonbreaching party shall be entitled to seek
appropriate injunctive relief.

                                      17                  Microsoft Confidential
<PAGE>

         12.7 ENTIRE AGREEMENT; MODIFICATION; NO OFFER. The parties hereto agree
that this Agreement (including all Exhibits hereto, and the Microsoft
Non-Disclosure Agreement to the extent incorporated herein) and the Xbox Guide
(as applicable from time to time) constitute the entire agreement between the
parties with respect to the subject matter hereof and merges all prior and
contemporaneous communications. It shall not be modified except by a written
agreement dated subsequent hereto signed on behalf of Licensee and Microsoft by
their duly authorized representatives. Neither this Agreement nor any written or
oral statements related hereto constitute an offer, and this Agreement shall not
be legally binding until executed by both parties hereto.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as of the Effective Date on the dates indicated below.

<TABLE>

<S>                                     <C>
MICROSOFT CORPORATION                   THQ INC.______________________________

J Allard                                Alison Locke
-----------------------------           -----------------------------
By (sign)                               By (sign)

J Allard                                Alison Locke
-----------------------------           -----------------------------
Name (Print)                            Name (Print)

                                        Executive Vice President,
Gen Mgr                                 North American Publishing
-----------------------------           -----------------------------
Title                                   Title

3-30-01                                 3-22-01
-----------------------------           -----------------------------
Date                                    Date
</TABLE>

                                      18                  Microsoft Confidential
<PAGE>

                                   EXHIBIT A-1
                          DESCRIPTION OF SOFTWARE TITLE

                                      ****

[*] Confidential portion omitted and filed separately with the Securities and
    Exchange Commission

                                      19                  Microsoft Confidential
<PAGE>

                                    EXHIBIT B

                               LICENSED TRADEMARKS

                            [insert Xbox design here]

                                      ****

[*] Confidential portion omitted and filed separately with the Securities and
    Exchange Commission

                                      20                  Microsoft Confidential
<PAGE>

                                    EXHIBIT C

                             BRANDING SPECIFICATIONS

The following guidelines apply whenever Licensee places a copy of any Licensed
Trademark on the Software Title, or related collateral materials.

     -   Licensee may use the Licensed Trademarks solely on the retail box,
         documentation, and Art & Marketing Materials for the Software Title,
         and in no other manner.

     -   Licensee's name, logo, or trademark must appear on any materials where
         the Licensed Trademarks are used, and must be larger and more prominent
         than the Licensed Trademarks.

     -   The Licensed Trademarks may not be used in any manner that expresses or
         might imply Microsoft's affiliation, sponsorship, endorsement,
         certification, or approval, other than as contemplated by this
         Agreement.

     -   The Licensed Trademarks may not be included in any non-Microsoft trade
         name, business name, domain name, product or service name, logo, trade
         dress, design, slogan, or other trademark.

     -   Licensee may use the Licensed Trademarks only as provided by Microsoft
         electronically or in hard copy form. Except for size subject to the
         restrictions herein, the Licensed Trademarks may not be altered in any
         manner, including proportions, colors, elements, etc., or animated,
         morphed, or otherwise distorted in perspective or dimensional
         appearance.

     -   The Licensed Trademarks may not be combined with any other symbols,
         including words, logos, icons, graphics, photos, slogans, numbers, or
         other design elements.

     -   The Licensed Trademarks (including but not limited to Microsoft's
         logos, logotypes, trade dress, and other elements of product packaging
         and web sites) may not be imitated.

     -   The Licensed Trademarks may not be used as a design feature in any
         materials.

     -   The Licensed Trademarks must stand alone. A minimum amount of empty
         space must surround the Licensed Trademarks separating it from any
         other object, such as type, photography, borders, edges, and so on. The
         required area of empty space around the Licensed Trademarks must be
         1/2x, where x equals the height of the Licensed Trademarks.

     -   Each use of the Licensed Trademarks must include the notice: "Xbox is a
         trademark of Microsoft Corporation in the United States and/or other
         countries and is used under license from Microsoft".

ADDITIONAL GUIDELINES FOR PROPER USE OF THE "XBOX" WORD MARK:

     -   Use the trademark symbol ("(TM)") at the upper right corner or baseline
         immediately following the name "Xbox". This symbol should be used at
         the first or most prominent mention. Please be sure to spell Xbox as
         one word, with no hyphen and with no space between "X" and "box".

     - Include the following notice on materials referencing Xbox:

              "Xbox is a trademark of Microsoft Corporation."

     -   Trademarks identify a company's goods or services. Xbox is not a
         generic thing, but rather a brand of game system from Microsoft. A
         trademark is a proper adjective that modifies the generic name or
         descriptor of a product or service. The descriptor for Xbox is "game
         system," i.e., "Xbox(TM) game system." Use the descriptor immediately
         after mention of "Xbox". You should not combine the Xbox trademark with
         an improper generic name or descriptor. For example, game programs
         designed to run on the Xbox game system are not "Xbox games," but
         rather "games for the Xbox system" or "Xbox certified games."

     -   The Xbox trademark may never be abbreviated. Do not use "X" by itself
         to represent "Xbox."

                                      21                  Microsoft Confidential
<PAGE>

                                   EXHIBIT D
                            NON-DISCLOSURE AGREEMENT

                                      ****

[*] Confidential portion omitted and filed separately with the Securities and
    Exchange Commission

                                      22                  Microsoft Confidential

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