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                                                                   Exhibit 10.51

                              LICENSE AGREEMENT AND

                                 MUTUAL RELEASE

                  THIS LICENSE AGREEMENT AND MUTUAL RELEASE (the "Agreement") is
made and entered into as of June 11, 2003(the "Effective Date"), by and between
ESS TECHNOLOGY INTERNATIONAL, INC. ("ETI"), ESS TECHNOLOGY, INC. ("ESS"), and
MEDIATEK INCORPORATION, a corporation duly organized and existing under the laws
of Taiwan, R.O.C.("MediaTek").

                  WHEREAS, on or about September 27, 2002 ESS, the parent of
ETI, filed a complaint for copyright infringement and unfair competition against
MediaTek. The complaint was filed in the United States District Court for the
Northern District of California, Case No. C02-4705 CRB (EMC), and has been
amended three times. In the current complaint, plaintiffs ESS and ETI assert
claims for copyright infringement, contributory copyright infringement, and
unfair competition. The case is referred to herein as "the Litigation."

                  WHEREAS, MediaTek filed an answer denying the claims of ESS
and asserting certain counterclaims against ESS.

                  WHEREAS, it is now the desire and intention of ESS and ETI, on
the one hand, and MediaTek, on the other hand, to settle and resolve all
disputes, differences and claims asserted in the Litigation or otherwise
existing as of the Effective Date of this Agreement, and to license certain
items of intellectual property,

                  NOW, THEREFORE, in consideration of the foregoing and of other
good and valuable consideration, and of the mutual covenants, terms and
conditions hereinafter set forth, it is agreed as follows:

1.       DEFINITIONS

         1.1.     "ESS DVD Technology" means the following registered United
                  States Copyrights: ***.

         1.2.     "Product" means any DVD chip solution or chipset, any DVD
                  player, or any software or screen display designed for use
                  with or in a DVD chip solution, DVD chipset, or DVD player.

         1.3.     A "Subsidiary" of a company means a corporation or other legal
                  entity (a) the majority of whose shares or other securities
                  entitled to vote for election of directors (or other managing
                  authority) is now or hereafter controlled by such company
                  either directly or indirectly; or (b) which does not have
                  outstanding shares or securities but the majority of whose
                  ownership interest representing the right to manage such
                  corporation or other legal entity is now or hereafter owned
                  and controlled by such company either

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                  directly or indirectly; but any such corporation or other
                  legal entity shall be deemed to be a Subsidiary of such
                  company only as long as such control or ownership and control
                  exists.

         1.4.     "Sale" or "Sold" means the distribution for payment of a
                  Product to a person or entity who is not a party to this
                  Agreement, except that returned Products shall be excluded
                  from this definition.

2.       GRANTS

         2.1.     LICENSE GRANT. Subject to the terms and conditions provided in
                  this Agreement, ETI and ESS hereby grant MediaTek a
                  world-wide, perpetual, non-exclusive, indivisible,
                  nontransferable (with the exception of the conditions in
                  paragraph 9.5) license under the ESS DVD Technology to make,
                  have made pursuant to MediaTek's own specifications, use,
                  reproduce, distribute, and sell Products incorporating ESS'
                  ***module and *** module, and derivative works created by
                  MediaTek therefrom, if any. No license is granted under this
                  Agreement to any other portions of the ESS DVD Technology, or
                  to the ESS DVD Technology in its entirety. This license shall
                  extend to customers of MediaTek who build DVD players or
                  components thereof, as well as distributors, retailers,
                  service providers, and end users of DVD players containing
                  chips or chipsets sold or supplied by MediaTek. The parties
                  agree that MediaTek's acceptance of this license grant is not
                  an admission of any liability in the Litigation.

3.       LIMITATIONS ON RIGHTS AND RELATIONSHIPS

         3.1.     NO IMPLIED LICENSE. No license or right is hereby granted by
                  implication, estoppel, or otherwise with respect to any
                  patent, patent right, copyright, trademark, or other
                  intellectual property or property right not specifically
                  identified herein.

         3.2.     NO JOINT VENTURE. Nothing herein is intended to nor shall be
                  construed as creating any joint venture, agency, partnership
                  or relationship other than licensor-licensee between ESS, ETI
                  and MediaTek.

4.       PAYMENTS AND ROYALTIES

         4.1.     LICENSE FEE PAYMENT BY MEDIATEK. As an initial license fee,
                  MediaTek shall pay to ETI forty five million dollars
                  ($45,000,000 USD). Because of the possibility of the
                  applicability of Taiwan withholding taxes, described below in
                  paragraph 4.2, MediaTek shall first pay into an escrow account
                  the cash sum of *** (***) ("principal amount"), pursuant to
                  the escrow agreement attached hereto as Exhibit A. The
                  principal amount in such escrow account shall be paid by the
                  escrow agent to ETI within two (2) business days following
                  notification to the escrow agent of the issuance of any
                  decision by the government of Taiwan on MediaTek's application
                  for exemption from Taiwanese withholding tax. This payment
                  shall be

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                  nonrefundable and not creditable against the royalty called
                  for under paragraph 4.3. All accrued interest remaining in the
                  escrow account shall be paid by the escrow agent to MediaTek.

         4.2.     APPLICATION FOR WITHHOLDING TAX EXEMPTION. The parties shall
                  work *** to file for an exemption from Taiwan's withholding
                  tax obligations on payments to ETI. ETI and MediaTek each
                  agree to provide the other with all necessary documents in
                  connection with this exemption. MediaTek shall first submit to
                  ETI and ESS for approval all documents it proposes to provide
                  to the taxing authority of the government of Taiwan, and shall
                  incorporate any and all reasonable changes requested by ETI or
                  ESS. MediaTek agrees and warrants that it shall *** from any
                  government agency or other third party in connection with the
                  payment of withholding tax on MediaTek's payment to ETI.

                  4.2.1.   TAX/ETI PAYMENT BY MEDIATEK. Within five (5) business
                           days after the issuance of a decision by the
                           government of Taiwan on MediaTek's application, and
                           as directed by the taxing authority of the government
                           of Taiwan, MediaTek shall pay *** (***) either (1) to
                           the taxing authority of the government of Taiwan to
                           satisfy the applicable withholding taxes imposed by
                           Taiwan, or (2) to ETI if MediaTek's application in
                           paragraph 4.2 is granted, or (3) in part to the
                           taxing authority of the government of Taiwan and in
                           part to ETI if the taxing authority of the government
                           of Taiwan sets a withholding rate of less than 20%.
                           Any such payment to ETI shall be nonrefundable and
                           not creditable against the royalty called for under
                           paragraph 4.3. Any such payment to ETI shall be paid
                           by wire transfer to an account specified by ETI.

                  4.2.2.   TAX/ETI PAYMENT BY MEDIATEK ON QUARTERLY ROYALTIES.
                           If the government of Taiwan has not made a decision
                           on the application for exemption from withholding
                           taxes by the time that a quarterly royalty under
                           paragraph 4.3.1 is due, MediaTek shall pay that
                           quarterly royalty into the escrow account described
                           in paragraph 4.1, withholding 20% of the royalty for
                           possible withholding taxes. The quarterly royalties
                           less 20% in the escrow account shall be paid to ETI
                           when the paragraph 4.1 principal amount is paid to
                           ETI, and any interest accrued thereon shall be paid
                           to MediaTek. Within five (5) business days after the
                           issuance of a decision by the government of Taiwan on
                           MediaTek's application, and as directed by the taxing
                           authority of the government of Taiwan, MediaTek shall
                           pay any amounts withheld from quarterly royalties
                           under this paragraph either (1) to the taxing
                           authority of the government of Taiwan to satisfy the
                           applicable withholding taxes imposed by Taiwan, or
                           (2) to ETI if MediaTek's application in paragraph 4.2
                           is granted, or (3) in part to the taxing authority of
                           the government of Taiwan and in part to ETI if the
                           taxing authority of the government of Taiwan sets a
                           withholding rate of less than 20%. Any such payment
                           to ETI shall be paid by wire transfer to an account
                           specified by ETI.

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         4.3.     QUARTERLY ROYALTY PAYMENTS BY MEDIATEK. MediaTek shall pre-pay
                  to ETI a royalty as described below by wire transfer to an
                  account specified by ETI, and shall transfer such funds from
                  MediaTek's account no later than 11:00 p.m. Pacific Time, on
                  the first business day of each August, November, February, and
                  May.

                  4.3.1.   QUARTERLY ROYALTY PREPAYMENT. Each quarterly payment
                           *** (***) (absent a reduction based on previous
                           overpayments as described in paragraph 4.3.3),
                           representing a pre-payment of royalties for the
                           following three-month period (e.g., the November 3,
                           2003, royalty pre-payment shall be a prepayment of
                           royalties on Sales for November 2003, December 2003,
                           and January, 2004.)

                  4.3.2.   CALCULATION OF ROYALTY DUE. The actual royalty due
                           over each three month period shall be calculated by
                           multiplying (1) the *** Sold by MediaTek or its
                           Subsidiaries during each such three-month period, by
                           (2) *** (***) per unit.

                  4.3.3.   OVERPAYMENTS. To the extent that MediaTek's
                           prepayment of royalties at the beginning of any
                           three-month period exceeds the actual royalty due at
                           the conclusion of such three-month period, the amount
                           of any such overpayment shall be deducted from the
                           royalty prepayment due at the beginning of the next
                           three-month period.

                  4.3.4.   QUARTERLY ROYALTY CAP. Each such quarterly royalty
                           shall be capped at *** (***) per quarter. If the
                           actual quarterly royalty calculated using the formula
                           in paragraph 4.3.2 for any quarter is more than ***
                           (***), the amount in excess of such amount shall not
                           become a royalty due under this Agreement.

                  4.3.5.   PAID-UP LICENSE. The license granted to MediaTek in
                           paragraph 2.1 shall become fully paid-up and no
                           further royalties shall be due when MediaTek has paid
                           aggregate royalties under this paragraph 4.3 of
                           forty-five million dollars ($45 million USD).

                  4.3.6.   TAXES. If the Taiwan withholding tax exemption in
                           paragraph 4.2 is granted, all royalty payments under
                           this paragraph 4.3 shall be made free and clear of
                           all taxes, duties or levies however designated or
                           computed other than any United States income tax
                           liabilities that may be related to such payments, and
                           MediaTek shall indemnify and hold ESS and ETI
                           harmless from all such taxes, duties and levies, if
                           any, imposed upon such payments. If the Taiwan
                           withholding tax exemption in paragraph 4.2 is not
                           granted, MediaTek shall withhold the amounts defined
                           by the Taiwan tax authorities of the sums paid under
                           paragraph 4.3.1 and shall pay those withheld monies
                           to the appropriate taxing authority of the government
                           of Taiwan as required by Taiwanese law.

         4.4.     NO REFUND OF ROYALTY PAYMENTS. No part of any royalty paid to
                  ETI hereunder shall be refundable for any reason, except if
                  ESS or ETI breaches paragraph 2.1 of this Agreement.

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         4.5.     ROYALTIES PAID IN U.S. FUNDS. All royalties specified in this
                  paragraph 4 shall be payable in lawful money of the United
                  States of America.

         4.6.     ROYALTY REPORT. Within five (5) days of the end of each
                  three-month period identified in paragraph 4.3, MediaTek shall
                  either (a) furnish to ETI a certification that it Sold more
                  than *** (***) Products during the preceding quarter, or (b)
                  furnish to ETI a written royalty statement certified by an
                  officer of MediaTek separately setting forth (1) the number of
                  Products Sold by MediaTek during the preceding three-month
                  period; (2) the royalty accrued thereon; and (3) confirmation
                  of the wire transfer royalty pre-payment made by MediaTek.
                  MediaTek shall provide such a royalty report whether or not a
                  quarterly royalty payment is due. Any royalty report,
                  including a certification that MediaTek Sold more than ***
                  (***) Products during the preceding quarter, shall include the
                  percentage of Products which were Sold to customers in the
                  Americas or Europe.

         4.7.     RIGHT TO AUDIT. With respect to the royalty set forth in
                  paragraph 4.3, MediaTek shall keep clear and accurate records
                  with respect to Sales of Products. These records shall be
                  retained for a period of three (3) years from date of the
                  reports described in paragraph 4.6 above, notwithstanding any
                  termination of this Agreement. For any three-month period in
                  which MediaTek reports that it Sold less than *** (***)
                  Products, the financial information for that three-month
                  period shall be subject to audit by an independent auditor
                  selected by ETI, during normal business hours, with prior
                  reasonable notice by ETI. If the audit determines a
                  discrepancy of ten percent (10%) or more between Sales
                  reported and the amount accurately calculated using the
                  formula in paragraph 4.3.2, then the reasonable expense of the
                  audit shall be borne by MediaTek and MediaTek shall
                  immediately pay the past due amounts plus interest, calculated
                  under paragraph 4.8.1. Otherwise, the expense of the audit
                  shall be borne by ETI. MediaTek may require the auditor to
                  sign a confidentiality agreement requiring the auditor to
                  maintain as confidential all information of MediaTek disclosed
                  in the course of the audit and preventing the auditor from
                  disclosing to ETI or ESS any information designated
                  confidential by MediaTek other than the total Sales by
                  MediaTek of Products during the quarter at issue, as well as
                  the percentage of such Products which were Sold to customers
                  in the Americas or Europe during that quarter. Confidentiality
                  obligations on the auditor shall survive the termination of
                  this Agreement.

         4.8.     LATE PAYMENTS. Any royalty prepayment hereunder that has not
                  been deposited into ETI's bank account and become available as
                  good funds by the close of business, Pacific Time, five
                  business days following each date listed in paragraph 4.3
                  above, shall be considered late.

                  4.8.1.   LATE PAYMENTS BEAR INTEREST. All late payments of
                           amounts due under paragraph 4.3. shall bear interest
                           from the due date at the

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                           lower of (1) the Prime Lending Rate as quoted in the
                           Money Rate section of the Wall Street Journal on the
                           last business day before payment is made, plus three
                           percent (3%); and (2) the maximum legal rate of
                           interest applicable to loans to corporations then in
                           effect under the laws of the State of California.

                  4.8.2.   LOST OPPORTUNITY AND DAMAGE IF PAYMENT 30 DAYS LATE.
                           If a royalty prepayment in the amount specified
                           pursuant to paragraph 4.3 has not been paid within
                           thirty (30) days of the due date, the parties agree
                           that the lost opportunity cost and damage to ETI is
                           well in excess of *** (***) and agree that any such
                           late payment shall carry an additional charge, not
                           creditable against the royalty payments, to
                           compensate ETI for this damage, of *** (***).

                  4.8.3.   TERMINATION OPTION IF PAYMENT 60 DAYS LATE. If a
                           royalty prepayment has in the amount specified
                           pursuant to paragraph 4.3 not been paid within sixty
                           (60) days of the due date, the parties agree that ETI
                           will be entitled to terminate this Agreement pursuant
                           to paragraph 9.4, and MediaTek hereby stipulates to
                           entry of judgment in the following amount of one and
                           two tenths (1.2) times the amount then owing (the
                           amount then owing calculated as ninety million
                           dollars ($90 million USD), less all amounts actually
                           paid under paragraphs 4.1, 4.2, and 4.3).

5.       SETTLEMENT AND RELEASES

         5.1.     LITIGATION DISMISSAL. Immediately upon MediaTek's funding of
                  the escrow account called for under paragraph 4.1, ESS, ETI
                  and MediaTek shall sign and jointly submit to the Court an
                  Order of Dismissal, dismissing the Litigation with prejudice.
                  Each party shall bear its own costs and attorney fees.

         5.2.     WAIVER AND RELEASE OF MEDIATEK. As of the Effective Date, ESS,
                  ETI, and their subsidiaries hereby release, waive, acquit, and
                  forever discharge MediaTek, its predecessor(s) in business,
                  and each of its employees, officers, directors, agents,
                  representatives, attorneys, privies and consultants from any
                  and all claims, demands, and causes of action asserted in the
                  Litigation, or otherwise existing as of the Effective Date
                  relating to MediaTek's current DVD software and all derivative
                  works created therefrom, and all claims existing as of the
                  Effective Date for copyright infringement and unfair
                  competition, patent infringement, trademark infringement,
                  misappropriation of trade secrets or other infringement of any
                  intellectual property right. This release and waiver shall not
                  extend to any DVD software features or functionality which are
                  not present in MediaTek's DVD software as of the Effective
                  Date. ESS and ETI hereby covenant not to file suit in the
                  future against MediaTek on any of the matters herein waived or
                  released. ESS and ETI agree that this waiver and release may
                  be used by MediaTek in defense against a suit filed on any of
                  the waived or released matters, and that if ESS or ETI

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                  brings suit against MediaTek on any of the waived or released
                  matters, MediaTek shall be entitled to recover its reasonable
                  attorneys' fees and costs from ESS and ETI. In addition, if
                  ESS or ETI is found to have brought a suit after the Effective
                  Date against MediaTek on any of the waived or released
                  matters, ***.

         5.3.     WAIVER AND RELEASE OF ESS. As of the Effective Date, MediaTek
                  hereby waives, releases, acquits, and forever discharges ESS,
                  its subsidiaries, its predecessor(s) in business, and each of
                  its employees, officers, directors, agents, representatives,
                  attorneys, privies and consultants from any and all claims,
                  demands, and causes of action arising out of the matters
                  alleged in the Litigation or otherwise existing as of the
                  Effective Date, including, but not limited to, MediaTek's
                  counterclaim for trade secret misappropriation, patent
                  infringement, trademark infringement, copyright infringement
                  or other infringement of any intellectual property right.

         5.4.     WAIVER OF CALIFORNIA CIVIL CODE Section 1542. As of the
                  Effective Date, the parties hereby waive the provisions of
                  California Civil Code Section 1542, which provides as follows:

                           A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
                           CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS
                           FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
                           KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
                           SETTLEMENT WITH THE DEBTOR.

6.       INDEMNIFICATION

         6.1.     INDEMNIFICATION BY MEDIATEK. MediaTek agrees to hold ESS and
                  its subsidiaries harmless against all liabilities, demands,
                  damages, expenses or losses arising out of third parties'
                  claims against the manufacture, use, sale or other disposition
                  by MediaTek or its vendees or other transferees of Products,
                  to the extent such third parties' claims relate to the
                  technology licensed in paragraph 2.1.

7.       REPRESENTATIONS AND WARRANTIES

         7.1.     AUTHORITY TO GRANT LICENSES. ETI and ESS warrant and represent
                  that they have the authority to grant the licenses granted
                  hereinabove.

         7.2.     NO WARRANTY OF NON-INFRINGEMENT BY ESS. ESS and ETI make no
                  warranty that the manufacture, use, sale, lease, transfer or
                  other disposition of Products by MediaTek will not infringe
                  patents or other intellectual property rights of any third
                  parties. It is agreed that ESS and ETI have no obligation to
                  indemnify or defend MediaTek with respect to any claim, demand
                  or cause of action for infringement or alleged infringement of
                  any patent, copyright, trademark, trade secret or other
                  intellectual property

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                  right arising out of or connected with the manufacture, use,
                  sale, lease or other transfer or disposition of operation of
                  Products.

         7.3.     DISCLAIMER BY ESS AND ITS SUBSIDIARIES. EXCEPT AS OTHERWISE
                  EXPRESSLY PROVIDED HEREIN, ESS AND ITS SUBSIDIARIES MAKE NO
                  REPRESENTATIONS, EXTEND NO WARRANTIES OF ANY KIND, EITHER
                  EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY
                  OR FITNESS FOR A PARTICULAR PURPOSE, AND ASSUME NO
                  RESPONSIBILITIES WHATEVER, INCLUDING ANY RESPONSIBILITIES OF
                  INDEMNIFICATION, WITH RESPECT TO THE USE, SALE OR OTHER
                  DISPOSITION BY MEDIATEK, ITS VENDEES OR OTHER TRANSFEREES OF
                  PRODUCTS INCORPORATING OR OPERATING IN ACCORDANCE WITH THE
                  LICENSE GRANTED HEREUNDER.

8.       TRANSFERABILITY

         8.1.     NON-TRANSFERABLE BY MEDIATEK. This Agreement shall inure to
                  the benefit of the parties hereto and, insofar as expressly
                  provided for herein, to their respective Subsidiaries.
                  MediaTek shall not assign or transfer, or attempt to assign or
                  transfer, any of its rights or privileges hereunder, whether
                  by merger, sale or purchase of a controlling interest of
                  voting shares or other securities, sale or purchase of assets,
                  or otherwise, without the prior written consent of ESS and
                  ETI, as described in paragraph 9.5.

9.       TERMINATION

         9.1.     EFFECTIVE DATE. This Agreement is effective as of the
                  Effective Date identified in the first paragraph of this
                  Agreement.

         9.2.     PERPETUAL LICENSE. Unless earlier terminated in accordance
                  with the terms and provisions of this Agreement, the Agreement
                  and the licenses and rights granted hereunder shall be
                  perpetual.

         9.3.     TERMINATION ON BREACH. In the event of a material breach of a
                  term or condition of this Agreement by a party, the other
                  party shall have the right to terminate the Agreement
                  forthwith by notice in writing identifying and describing the
                  breach. The Agreement will terminate thirty (30) days
                  following the sending of such notice, unless the breach is
                  cured within that time. The right to terminate shall be in
                  addition to all other rights and remedies which a party may
                  have in law or equity to enforce this contract or to seek
                  damages for breach thereof. On termination of the Agreement,
                  the releases granted in paragraphs 5.2, 5.3, and 5.4 shall
                  also terminate.

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         9.4.     TERMINATION FOR FAILURE TO PAY ROYALTY. Notwithstanding the
                  provisions of paragraph 9.3, any failure on the part of
                  MediaTek to make any payment due under paragraph 4.1 within
                  five (5) days of the due date, or to make any payment due
                  under paragraph 4.3 within ninety (90) days of the due date,
                  shall constitute a material breach of the Agreement, and shall
                  entitle ESS and ETI to immediately terminate the Agreement on
                  written notice without any requirement to provide advance
                  notice as provided in paragraph 9.3. On termination of the
                  Agreement, the releases granted in paragraphs 5.2, 5.3, and
                  5.4 shall also terminate.

         9.5.     TERMINATION ON ATTEMPTED TRANSFER. This Agreement may be
                  transferred by MediaTek only under the conditions set out in
                  paragraphs 9.5.1 or 9.5.2. Any other assignment, transfer or
                  sublicense, or attempted assignment, transfer or sublicense of
                  this Agreement or of any license or other rights granted
                  hereunder by MediaTek in violation of the terms and conditions
                  hereof shall constitute a material breach of the Agreement,
                  and shall entitle the ESS and ETI to immediately terminate the
                  Agreement on written notice without any requirement to provide
                  advance notice as provided in paragraph 9.3. On termination of
                  the Agreement, the releases granted in paragraphs 5.2, 5.3,
                  and 5.4 shall also terminate.

                  9.5.1.   TRANSFER TO APPROVED ENTITY. If MediaTek wishes to
                           transfer this Agreement to another entity, it shall
                           give written notice of its desire to ETI and ESS. If
                           ESS and ETI grant permission in writing, this
                           Agreement and all rights and obligations under it may
                           be transferred by MediaTek to the identified entity.
                           If ESS and ETI do not grant permission to transfer
                           this Agreement, it may only be transferred in
                           accordance with paragraph 9.5.2 under a fully paid-up
                           license.

                  9.5.2.   TRANSFER FOLLOWING PAID-UP LICENSE. If the license
                           has become fully paid-up under paragraph 4.3.5, it
                           may be transferred by MediaTek to any entity on
                           written notice. If the license has not been fully
                           paid up under paragraph 4.3.5, it may be transferred
                           only if MediaTek first fully pays up the license
                           royalties as described in paragraph 4.3.5.

         9.6.     TERMINATION ON BANKRUPTCY. In any of the following events, ESS
                  or ETI shall have the right to terminate this Agreement at any
                  time if:

                  9.6.1.   MediaTek files a voluntary petition in bankruptcy; or

                  9.6.2.   an involuntary petition in bankruptcy is filed naming
                           MediaTek; or

                  9.6.3.   MediaTek makes an assignment of assets for the
                           benefit of creditors; or

                  9.6.4.   if a receiver or trustee of MediaTek's assets shall
                           be appointed; or

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                  9.6.5.   MediaTek shall cease or discontinue conducting
                           business in the ordinary course.

         On termination of the Agreement for any of the foregoing reasons, the
         releases granted in paragraphs 5.2, 5.3, and 5.4 shall also terminate.

         9.7.     NO WAIVER. The waiver by either party of a breach or default
                  in or of any provision of this Agreement by the other party
                  shall not act or be construed as a waiver by such party of any
                  other or succeeding breach of the same or other provision(s),
                  nor shall any delay or omission on the part of either party to
                  exercise or avail itself of any right, power or privilege that
                  it has or may have hereunder, operate as a waiver of any
                  right, power or privilege by such party.

10.      CONFIDENTIALITY

         10.1.    ESS and MediaTek each agree to keep the terms of this
                  Agreement (with the exception of the financial terms detailed
                  in paragraph 4 of the Agreement) confidential and to refrain
                  from disclosing the terms of the Agreement to any third party
                  except as required by law (civil or criminal), and except as
                  is reasonably necessary to each of the parties' insurers and
                  respective legal, tax, and investment advisors. This provision
                  shall not restrict either party from disclosing that the
                  parties have entered into a settlement of the Litigation. All
                  parties recognize and agree that, except for documents and
                  information filed under seal, the Court's files in this matter
                  are public records and not affected by this provision.

11.      GENERAL

         11.1.    COMPLETE AGREEMENT. This instrument embodies the complete and
                  only agreement between the parties and supersedes and cancels
                  any and all previous understandings, agreement, negotiations,
                  commitments and any other writings or communications
                  pertaining to its subject matter, whether written or oral.

         11.2.    MODIFICATION AND WAIVER. This Agreement may not be modified or
                  amended, nor may any right or obligation set forth herein be
                  waived, except in a writing signed by the parties with at
                  least the same formalities as are observed herein. A waiver as
                  to any particular term shall not operate as a waiver as to any
                  other terms.

         11.3.    SEVERABILITY. In the event any provision of this Agreement
                  shall be held to be invalid or unenforceable in any respect or
                  for any reason, such holding shall not impair the validity and
                  enforceability of the remaining provisions of this Agreement,
                  which shall continue to be given full force and effect, except
                  that the Parties agree to make such other and further
                  agreements as

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                  may be necessary to provide the full intended economic
                  benefit, if any, associated with any provisions held invalid
                  or unenforceable.

         11.4.    ADVICE OF COUNSEL. Each party acknowledges to the other party
                  that it has been represented by legal counsel of its own
                  choice throughout all of the negotiations which preceded the
                  execution of this Agreement and that it has executed this
                  Agreement with the consent and on the advice of such legal
                  counsel. Each party further acknowledges that it and its
                  counsel have had adequate opportunity to make whatever
                  investigation or inquiry it may deem necessary or desirable in
                  connection with the subject matter of this Agreement prior to
                  the execution hereof and the delivery and acceptance of the
                  consideration specified herein.

         11.5.    CHOICE OF LAW AND VENUE. This Agreement shall be construed and
                  interpreted with the laws of the State of California. The
                  language of this Agreement shall be construed as a whole
                  according to its fair meaning, and not strictly for or against
                  either of the parties. In the event suit is filed by either
                  party involving a dispute concerning the construction,
                  interpretation, enforcement, or breach of this Agreement, or
                  the enforcement of any intellectual property rights which are
                  the subject hereof, the parties agree to submit to personal
                  jurisdiction and venue of the United States District Court for
                  the Northern District of California.

         11.6.    COUNTERPARTS. This Agreement may be executed in counterparts
                  which, taken together, shall constitute one and the same
                  agreement.

         11.7.    CAPTIONS AND HEADINGS. Captions and paragraph headings used in
                  this Agreement are for convenience and shall not be used to
                  govern, construe, or interpret this Agreement.

         11.8.    NOTICES. Any notice, request, report, or remittance required
                  or permitted to be given under or in connection with this
                  Agreement or the subject matter hereof, shall be deemed to
                  have been sufficiently given when addressed as follows and
                  sent by Certified Mail, postage prepaid, or (except for
                  remittance of royalties) by facsimile.

                  TO ESS or ESS Technology International:
                                    ESS
                                    48401 Fremont Boulevard
                                    Fremont, CA 94538
                                    Attention: Fred Chan and James Boyd
                                    Fax 510-492-1511

                                       11
<PAGE>

                  With a copy to:

                                    Milbank, Tweed, Hadley & McCloy LLP
                                    Attention: James Pooley
                                    5 Palo Alto Square, 7th Floor,
                                    Palo Alto, CA 94306
                                    Fax 650-739-7100

                  TO MediaTek:

                                    MediaTek, Inc.
                                    5F, No. 1-2 Innovation Road 1
                                    Science-Based Industrial Park, Hsin-Chu City
                                    Taiwan, R.O.C.
                                    Fax: 886-3578-7680

                  With a copy to:

                                    William H. Wright
                                    Hogan & Hartson, L.L.P.
                                    500 S. Grand Ave., Suite 1900
                                    Los Angeles, CA 90071
                                    Fax 213-337-6701

                  The date of receipt of any such notice or request shall be
                  deemed to be the date of actual receipt by the addressee
                  thereof, but in any case not later than five (5) days after
                  the date of dispatch thereof. Either party may give written
                  notice of change of address to the other and, after such
                  notice has been received, any notice or request required to be
                  given to such party shall be given at such changed address, in
                  the manner provided above.

         11.9.    ATTORNEYS' FEES. In the event a party hereto initiates any
                  legal action to interpret any provision or term of the
                  Agreement or to enforce any right or obligation thereunder,
                  the prevailing party shall be entitled, in addition to any
                  other relief or award granted, to an award of reasonable
                  attorney's fees and all costs of such action.

         11.10.   REPRESENTATIONS OF AUTHORITY. Each of the parties to this
                  Agreement warrants and represents to the other that it has the
                  power to enter into this Agreement and that the person
                  executing this Agreement on its behalf has been authorized to
                  do so by any and all appropriate corporate bodies. Each of the
                  undersigned represents and warrants that he or she has the

                                       12
<PAGE>

                  authority and capacity to act on behalf of the entity on
                  behalf of whom he or she signed this Agreement and on behalf
                  of all who might claim through such entity and to bind them to
                  the terms and conditions of this Agreement.

12.      DESTRUCTION OF CONFIDENTIAL AND ATTORNEYS ONLY MATERIALS.

                  Within ten (10) days of the Effective Date of this Agreement,
                  all materials designated as "Confidential" or "Attorneys Only"
                  pursuant to the Protective Order in this action, and all
                  copies thereof including summaries and excerpts, any copies of
                  ESS or ETI source or object code acquired by MediaTek or its
                  counsel, and any copies of MediaTek source or object code
                  acquired by ESS or ETI or their counsel, shall be destroyed.
                  Such destruction shall be certified by each party in writing,
                  and the certifications shall be delivered to the opposing
                  party. Outside counsel for the parties shall be entitled to
                  retain court papers and attorney work product (including court
                  papers, transcripts and exhibits, and attorney work product
                  that contain information or material designated as
                  "Confidential" or "Attorneys Only").

13.      ESCROW ACCOUNT PAYMENTS FOR WITHHOLDING TAX EXEMPTION

         13.1.    *** shall pay *** (***) into an escrow account. Such sum shall
                  be paid by wire transfer, and shall be transmitted from***'s
                  account no later than 11:00 p.m. Pacific Time on the earlier
                  of June 30, 2003, or three business days after the escrow
                  account is opened. Such payment shall be made free and clear
                  of all taxes, duties or levies however designated or computed.
                  *** shall indemnify and hold harmless *** from all taxes,
                  duties and levies, if any, imposed upon such payment (other
                  than United States income taxes).

         13.2.    ***shall pay *** (***) into the same escrow account. Such sum
                  shall be paid by wire transfer, and shall be transmitted
                  from***'s account no later than 11:00 p.m. Pacific on the
                  earlier of June 30, 2003, or three business days after the
                  escrow account is opened. Such payment shall be made free and
                  clear of all taxes, duties or levies however designated or
                  computed. *** shall indemnify and hold harmless *** from all
                  taxes, duties and levies, if any, imposed upon such payment
                  (other than income taxes).

         13.3.    The escrow account shall be governed by the escrow agreement
                  attached hereto as Exhibit B. If MediaTek's application for a
                  withholding tax exemption described in paragraph 4.2 is
                  granted by the taxing authority of the government of Taiwan
                  and the *** (***) called for in paragraph 4.2 is paid to***,
                  then the escrow agreement shall ***. In all other cases, the
                  escrow agreement shall***.

*** Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                       13
<PAGE>

         13.4.    All funds specified in this paragraph 13 shall be paid in
                  lawful money of the United States of America.

                  IN WITNESS WHEREOF, the Parties hereto have executed this
License Agreement and Mutual Release as of the day and year written below.

DATED:  _______________, 2003              ESS TECHNOLOGY INTERNATIONAL,
                                           INC.

                                           By: /s/ Fred Shiu Leung Chan

                                           Its: Chairman

DATED:  _______________, 2003              ESS TECHNOLOGY, INC.

                                           By: /s/ Robert L. Blair

                                           Its: President and CEO

DATED:  _______________, 2003              MEDIATEK, INCORPORATION.

                                           By: /s/ [ILLEGIBLE]
                                                  ______________________________

                                           Its: Chairman of the Board

                                       14
<PAGE>

APPROVED AS TO FORM:

DATED:  _______________, 2003            Milbank, Tweed, Hadley and McCloy, LLP

                                         By: /s/ James Pooley
                                             James Pooley
                                             Attorneys for ESS

DATED:  _______________, 2003            Hogan & Hartson, LLP

                                         By: /s/ Jai Rho
                                             Jai Rho
                                             Attorneys for MediaTek

                                       15Exhibit 10.51

 

EXHIBIT 10.51

FIRST VIRTUAL COMMUNICATIONS, INC.

EMPLOYEE STOCK PURCHASE PLAN OFFERING

Adopted June 13, 2003

1.   Grant; Offering Date.

     (a)  The Board of Directors of First Virtual Communications, Inc. (the
“Company”), pursuant to the Company’s 1997 Employee Stock Purchase Plan (the
“Plan”), hereby authorizes the grant of rights to purchase shares of the common
stock of the Company (“Common Stock”) to all Eligible Employees (an
“Offering”). Subject to earlier termination in accordance with subsection 1(b)
below, an Offering shall commence on July 1, 2003 and end on June 30, 2005. The
first day of an Offering is that Offering’s “Offering Date.” If an Offering
Date does not fall on a day during which the Common Stock is actively traded,
then the Offering Date shall be the next succeeding day during which the Common
Stock is actively traded. Capitalized terms not explicitly defined in this
Offering shall have the same definitions as set forth in the Plan.

     (b)  Notwithstanding anything to the contrary, in the event that the fair
market value of a share of Common Stock on any Purchase Date (as defined
herein) during an Offering is less than the fair market value on the Offering
Date of the Offering, then following the purchase of Common Stock on such
Purchase Date (i) the Offering shall terminate, (ii) a new Offering shall
commence on the day following the Purchase Date that shall extend for two (2)
years, and (iii) participants shall automatically be enrolled in the new
Offering.

     (c)  At the end of each Offering, a new Offering shall begin that shall
extend for two (2) years, and participants shall automatically be enrolled in
such new Offering.

     (d)  Prior to the commencement of any Offering, the Board of Directors (or
the Committee described in subparagraph 2(c) of the Plan, if any) may change
any or all terms of such Offering and any subsequent Offerings. The granting
of rights pursuant to each Offering hereunder shall occur on each respective
Offering Date unless, prior to such date (a) the Board of Directors (or such
Committee) determines that such Offering shall not occur, or (b) no shares
remain available for issuance under the Plan in connection with the Offering.

2.   Eligible Employees.

     (a)  All employees of the Company and each of its Affiliates (as defined in
the Plan) incorporated in the United States, shall be granted rights to
purchase Common Stock under each Offering on the Offering Date of such
Offering, provided that each such employee otherwise meets the employment
requirements of subparagraph 5(a) of the Plan (an “Eligible Employee”).
Notwithstanding the foregoing, the following employees shall not be Eligible
Employees or be granted rights under an Offering: (i) part-time or seasonal
employees whose customary employment is less than 20 hours per week or 5 months
per calendar year or (ii) 5% stockholders (including ownership through
unexercised options) described in subparagraph 5(c) of the Plan.

1.

 

     (b)  Each person who first becomes an Eligible Employee during any Offering
and at least six (6) months prior to the final Purchase Date of the Offering
will, on the next January 1 or July 1 during that Offering, receive a right
under such Offering, which right shall thereafter be deemed to be a part of the
Offering. Such right shall have the same characteristics as any rights
originally granted under the Offering except that:

          (1) the date on which such right is granted (i.e., the date an employee
first becomes eligible to commence participation in the Plan) shall be the
“Offering Date” of such right for all purposes, including determination of the
exercise price of such right; and

          (2) the Offering for such right shall begin on its Offering Date and end
coincident with the end of the ongoing Offering.

3.   Rights.

     (a)  Subject to the limitations contained herein and in the Plan, on each
Offering Date each Eligible Employee shall be granted the right to purchase the
number of shares of Common Stock purchasable with up to fifteen percent (15%)
of such Eligible Employee’s Earnings paid during such Offering after the
Eligible Employee first commences participation; provided, however, that no
employee may purchase Common Stock on a particular Purchase Date that would
result in more than fifteen percent (15%) of such employee’s Earnings in the
period from the Offering Date to such Purchase Date having been applied to
purchase shares under all ongoing Offerings under the Plan and all other
Company plans intended to qualify as “employee stock purchase plans” under
Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”). For
this Offering, “Earnings” means the total compensation paid to an employee,
including all salary, wages (including amounts elected to be deferred by the
employee, that would otherwise have been paid, under any cash or deferred
arrangement established by the Company), variable pay, overtime pay,
commissions, bonuses, and other remuneration paid directly to the employee, but
excluding profit sharing, the cost of employee benefits paid for by the
Company, education or tuition reimbursements, imputed income arising under any
Company group insurance or benefit program, traveling expenses, business and
moving expense reimbursements, income received in connection with stock
options, contributions made by the Company under any employee benefit plan, and
similar items of compensation.

     (b)  Notwithstanding the foregoing, the maximum number of shares of Common
Stock an Eligible Employee may purchase on any Purchase Date in an Offering
shall be such number of shares as has a fair market value (determined as of the
Offering Date for such Offering) equal to (x) $25,000 multiplied by the number
of calendar years in which the right under such Offering has been outstanding
at any time, minus (y) the fair market value of any other shares of Common
Stock (determined as of the relevant Offering Date with respect to such shares)
which, for purposes of the limitation of Section 423(b)(8) of the Code, are
attributed to any of such calendar years in which the right is outstanding. The
amount in clause (y) of the previous sentence shall be determined in accordance
with regulations applicable under Section 423(b)(8) of the Code based on (i)
the number of shares previously purchased with respect to such calendar years
pursuant to such Offering or any other Offering under the Plan, or pursuant to
any other Company plans intended to qualify as “employee stock purchase plans”
under

2.

 

 Section 423 of the Code, and (ii) the number of shares subject to other
rights outstanding on the Offering Date for such Offering pursuant to the Plan
or any other such Company plan.

     (c)  In addition to the other limitations in this Section 3, the maximum
aggregate number of shares of Common Stock that an Eligible Employee may
purchase in each calendar year pursuant to the Plan shall be 25,000.

     (d)  The maximum aggregate number of shares available to be purchased by
all Eligible Employees under an Offering, and on each Purchase Date during an
Offering, shall be the number of shares remaining available under the Plan on
the Offering Date. If the aggregate purchase of shares of Common Stock upon
exercise of rights granted under the Offering would exceed the maximum
aggregate number of shares available, the Board shall make a pro rata
allocation of the shares available in a uniform and equitable manner.

4.   Purchase Price.

     The purchase price of the Common Stock under the Offering shall be the
lesser of eighty-five percent (85%) of the fair market value of the Common
Stock on the Offering Date (or eighty-five percent (85%) of the fair market
value of the Common Stock on the first day on which the Company’s Common Stock
is actively traded that immediately follows the Offering Date if an Offering
Date does not fall on a day during which the Company’s Common Stock is actively
traded) or eighty-five percent (85%) of the fair market value of the Common
Stock on the Purchase Date (or eighty-five percent (85%) of the fair market
value of the Common Stock on the first day on which the Company’s Common Stock
is actively traded that immediately precedes the Purchase Date if a Purchase
Date does not fall on a day during which the Company’s Common Stock is actively
traded), in each case rounded up to the nearest whole cent per share.

5.   Participation.

     (a)  An Eligible Employee may elect to participate in an Offering at the
beginning of the Offering or as of any January 1 or July 1 during the Offering.
An Eligible Employee shall become a participant in an Offering by delivering
an agreement authorizing payroll deductions. Such deductions may be in whole
dollars or whole percentages not to exceed fifteen percent (15%) of Earnings.
A participant may not make additional payments into his or her account. The
agreement shall be made on such enrollment form as the Company provides, and
must be delivered to the Company before the date of participation to be
effective for such Offering, or as otherwise determined by the Company and
communicated to Eligible Employees.

     (b)  A participant may increase or reduce (including to zero) his or her
participation level effective as of any next subsequent January 1 or July 1
during the course of an Offering. A participant may additionally reduce his or
her participation level once during any six (6)-month period ending on a
Purchase Date (or such longer period ending on the first Purchase Date), except
that a participant may make a second reduction during such period to zero (0)
percent, effective as soon as administratively practicable. Any such change in
participation shall be made by delivering a notice to the Company or a
designated Affiliate in such form and at such time as the Company provides. In
addition, a participant may change his or her deductions prior to the

3.

 

 beginning of a new Offering to be effective at the beginning of such new
Offering. A participant may withdraw from an Offering and receive his or her
accumulated payroll deductions from the Offering (reduced to the extent, if
any, such deductions have been used to acquire Common Stock for the participant
on any prior Purchase Dates), without interest, at any time prior to the end of
the Offering, excluding only each ten (10) day period immediately preceding a
Purchase Date (or such shorter period of time determined by the Company and
communicated to participants), by delivering a withdrawal notice to the Company
in such form as the Company provides. A participant who has withdrawn from an
Offering shall not be entitled to again participate in such Offering, but may
participate in other Offerings under the Plan by submitting a new participation
agreement in accordance with the terms thereof.

6.   Purchases.

     Subject to the limitations contained herein, on each Purchase Date, each
participant’s accumulated payroll deductions (without any increase for
interest) shall be applied to the purchase of whole shares of Common Stock, up
to the maximum number of shares permitted under the Plan and the Offering.
“Purchase Date” shall be defined as each June 30 and December 31. If a
Purchase Date does not fall on a day during which the Common Stock is actively
traded, then the Purchase Date shall be the nearest prior day on which the
Common Stock is actively traded.

7.   Notices and Agreements.

     Any notices or agreements provided for in an Offering or the Plan shall be
given in writing, in a form provided by the Company, and unless specifically
provided for in the Plan or this Offering shall be deemed effectively given
upon receipt or, in the case of notices and agreements delivered by the
Company, upon receipt or upon five (5) days after deposit in the United States
mail, postage prepaid.

8.   Exercise Contingent on Stockholder Approval.

     The rights granted under an Offering are subject to the approval of the
Plan by the stockholders as required for the Plan to obtain treatment as a
tax-qualified employee stock purchase plan under Section 423 of the Code.

9.   Offering Subject to Plan.

     Each Offering is subject to all the provisions of the Plan, and its
provisions are hereby made a part of the Offering, and is further subject to
all interpretations, amendments, rules and regulations which may from time to
time be promulgated and adopted pursuant to the Plan. In the event of any
conflict between the provisions of an Offering and those of the Plan (including
interpretations, amendments, rules and regulations which may from time to time
be promulgated and adopted pursuant to the Plan), the provisions of the Plan
shall control.

4.

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