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                                                                   EXHIBIT 10.12

                              AMENDED AND RESTATED
                       INTERNET GAME DEVELOPMENT AGREEMENT

         This Internet Game Development Agreement (the "Agreement") is effective
as of July 24, 2000 (the "Effective Date"), by and between Pearson Television,
Inc. ("PTV Inc."), a New York corporation with its principal place of business
at 1325 Avenue of the Americas, New York, New York 10019; Pearson Television
Netherlands ("PTV Netherlands"), a branch of Pearson Television France EURL;
Pearson Television Holdings, Inc.; Pearson Television North America, Inc.;
Pearson Television Limited, and their respective subsidiaries (collectively,
"Pearson"); and Uproar Inc. ("Uproar"), a Delaware corporation with its
principal place of business at 240 W. 35th Street, New York, New York, formerly
trading as E-Pub(Holdings) Ltd.

         WHEREAS, Uproar develops, operates and maintains interactive games on
sites on the world-wide-web portion of the Internet currently located at the URL
(as hereinafter defined) "www.uproar.com" (with related web pages at other
URLs); and

         WHEREAS, Pearson is the owner of certain television game shows and the
rights to develop derivative works based on such game shows; and

         WHEREAS, the parties entered into an agreement dated January 12, 1999
(the "1999 Agreement") whereby Pearson licensed to Uproar the right to develop,
and agreed to cooperate with Uproar to develop, Internet Versions (as
hereinafter defined) of certain specified television game shows, and

         WHEREAS, the parties wish to extend the 1999 Agreement and amend
certain terms thereof by entering into this Agreement, which amends and restates
the provisions of the 1999 Agreement;

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows:

1        Definitions. When used in this Agreement each of the following shall
         have the following respective meanings:

         1.1      "Advertising" shall include but shall not be limited to
                  sponsorships, promotions, banners (including banners that
                  scroll along with text and banners appearing between moving
                  streams of headlines, so called "tickers"), animated type,
                  animated images, interactive trivia, pop-up windows, road
                  blocks, intermercials (animated commercials), interstitials,
                  logo placements and other relationships, materials or devices
                  to be developed or agreed upon by the parties and used on the
                  Site or any Affiliate web sites.

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         1.2      "Affiliate" shall mean any corporation or other business
                  entity that directly or indirectly controls, is controlled by,
                  or is under common control with a party. Control means direct
                  or indirect ownership of or other beneficial interest in fifty
                  percent (50%) or more of the voting stock, other vesting
                  interest, or income of a corporation or other business entity.

         1.3      "Uproar Production and Marketing Information" shall mean
                  knowledge or information acquired, developed, or possessed by
                  Uproar (with the right to disclose the same to others) at any
                  time during the term of this Agreement, or prior thereto,
                  which relates to (i) the development, production and marketing
                  of the Licensed Internet Games; (ii) the integration of the
                  Licensed Internet Games into the Site; (iii) the design,
                  hosting and maintenance of the Site; (iv) the integration of
                  advertising into the Site; (v) the rotation of advertising
                  throughout the Site, electronic commerce conducted on or
                  through the Site; (vi) the hyperlinking of the Site to other
                  web sites; and (vii) information acquired by Pearson from
                  Uproar pursuant to the financial and business relationships
                  established under this Agreement, as well as any information
                  pertaining to the marketing, advertising or sale of the
                  Licensed Internet Games as Uproar may in its sole discretion
                  choose to make available to Pearson.

         1.4      "Games" shall mean the following television game shows
                  (including Game Show Formats):

                  a)       Family Feud (aka Family Fortunes) ("Family Feud")

                  b)       To Tell the Truth ("To Tell the Truth")

                  c)       Match Game (aka Blankety Blank) ("Match Game")

                  d)       100% ("100%")

         1.5      "Game Show Format" shall mean rules, procedures, "look and
                  feel" and such other elements of the Games as Pearson shall
                  make available to Uproar for development. The Game Show Format
                  shall not include talent, guests, or television advertisements
                  (except in the event that any rights to such material are
                  explicitly granted to Uproar in writing by Pearson) and
                  Pearson shall make reasonable efforts to include artwork,
                  photographs, question banks from previously televised shows,
                  scripted celebrity banter and four episodes (not for
                  transmission via the Internet) of each Game for use in the
                  development process.

         1.6      "Launch" shall mean making available to all users of the Site
                  a version of a Licensed Internet Game that reasonably conforms
                  to the Specifications and has been beta-tested and all
                  material bugs thereby revealed have been substantially removed
                  such that the version is intended, and is promoted, as a
                  fully-functioning version of the Licensed Internet Game. For
                  the avoidance of doubt, the making available of a Licensed
                  Internet Game through the Site in a form to which access is
                  deliberately restricted to a

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                  subset of the users of the Site is not for the purposes of
                  this definition the making available of such Game to all users
                  of the Site.

         1.7      "Local FF" shall mean a first-run English language television
                  show owned, produced and/or distributed by Pearson in a local
                  television market of any English speaking country which is
                  based on or substantially similar to Family Feud.

         1.8      "Local FF Internet Version" shall mean an Internet Version of
                  a Local FF.

         1.9      "Local 100%" shall mean a first-run English language
                  television show owned, produced and/or distributed by Pearson
                  in a local television market of any English speaking country,
                  which is based on or substantially similar to 100%.

         1.10     "Local 100% Internet Version" shall mean an Internet Version
                  of a Local 100%.

         1.11     "Local Match Game" shall mean a first-run English language
                  television show owned, produced and/or distributed by Pearson
                  in a local television market of any English speaking country,
                  which is based on or substantially similar to Match Game.

         1.12     "Local Match Game Internet Version" shall mean an Internet
                  Version of a Local Match Game.

         1.13     "Local Truth" shall mean a first-run English language
                  television show owned, produced and/or distributed by Pearson
                  in a local television market of any English speaking country,
                  which is based on or substantially similar to To Tell the
                  Truth

         1.14     "Local Truth Internet Version" shall mean an Internet Version
                  of a Local Truth.

         1.15     "Licensed Internet Games" shall mean collectively the Internet
                  Versions of the Games;

         1.16     "Internet" shall mean a global network of interconnected
                  computer networks, each using the Transmission Control
                  Protocol/Internet Protocol and/or such other standard network
                  interconnection protocols as may be adopted from time to time,
                  which is used to transmit content that is directly or
                  indirectly delivered to a computer or other digital electronic
                  device for display to an end-user.

         1.17     "Internet Version" shall mean, subject to Section 3.5 below,
                  the authorized derivative work based on a Game Show Format
                  that is a single-player or multi-player game primarily
                  comprised of a combination of text, graphics and animation
                  (i.e., is not merely an animated version of the television
                  show upon which the Internet Version is based) distributed on
                  the World Wide Web portion of the Internet through Internet
                  Protocols (including proprietary languages of Internet service
                  providers such as, by way of example and not by way of
                  limitation, "Rainman") for execution on an Internet hosting
                  server, provided however that Internet Versions shall not
                  include:

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                  a)       stand-alone hand-held games or any other stand-alone
                           game-console platforms or CD-Roms,

                  b)       enhanced or interactive television games (whether
                           primarily text and graphics based or video based and
                           whether intended for play along synchronously with a
                           television programme or on a stand-alone basis) being
                           games capable of receipt only through "Walled Garden"
                           television services by subscribers to such services
                           as proprietary content, and which therefore are not
                           capable of receipt through the World Wide Web portion
                           of the Internet, it being understood that games
                           re-purposed for receipt from the World Wide Web
                           portion of the Internet through a television receiver
                           are included in the definition of Internet Version,

                  c)       games distributed through WAP service or any other
                           service primarily intended to be received through a
                           mobile phone, Personal Digital Assistant or other
                           wireless receiver, or

                  d)       games distributed in a format that may be downloaded
                           or copied by a recipient and played when the
                           recipient is not connected to the Internet.

         1.18     "Licensed Marks" shall mean the trademarks and service marks
                  that are listed on the attached Exhibit B, as well as such
                  other indicia of origin as Pearson may from time to time
                  designate by written notice served upon Uproar.

         1.19     "Coverage" shall mean the average quarterly percentage of
                  United States households (as reported by Nielsen Media
                  Research ("Nielsen")) that can receive a television show,
                  whether via broadcast or cable transmission. Pearson shall
                  inform Uproar from time to time and on no less than a monthly
                  basis of the coverage levels provided by Nielsen.

         1.20     "Gross Revenue" shall mean all revenues received by Uproar
                  that are directly related to the exploitation of the Licensed
                  Internet Games including without limitation (i) revenue from
                  the sale of Advertising on pages of the Site and affiliated
                  web sites on which any of the Licensed Internet Games appear;
                  (ii) revenue from advertising linked to pages on which
                  Licensed Internet Games appear (such as jump pages or
                  interstitials); (iii) subscription revenues; (iv) revenues
                  from sub-licensing or syndicating versions of the Licensed
                  Internet Games; and (v) any commission or other revenue based
                  on merchandise sales related to the Licensed Internet Games;
                  but excluding advertising agency commissions. Goods or
                  services received in barter arrangements shall not be included
                  in Gross Revenue, provided however that Uproar shall not
                  accept any Advertising on a barter basis for the Licensed
                  Internet Games without the prior written approval of Pearson.

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         1.21     "Net Revenue" shall mean the Gross Revenue received by Uproar
                  less: (i) fifteen percent (15%) format royalty (of gross
                  revenue) payable to PTV Netherlands; (ii) site maintenance
                  costs of $120,000.00 per annum; (iii) prizes (not to exceed
                  the greater of $10,000.00 per month, per game or five percent
                  (5%) of gross revenue); (iv) music and talent (including
                  clearance) cost for rights for use in the Licensed Internet
                  Games which have been negotiated for Uproar by Pearson; (v)
                  direct marketing costs; (vi) question research and development
                  (namely cost of sorting and selecting old questions and
                  developing new questions); (vii) traffic and usage research
                  and ratings related to the Licensed Internet Games; (viii)
                  actual registration and filing fees (if any) related to
                  gaming; and (ix) sales commissions of fifteen percent (15%)
                  payable to Uproar.

         1.22     "Television Broadcast Year" shall mean the period of twelve
                  (12) consecutive months during the Term (as defined in Section
                  2, below) of this Agreement beginning on the launch date of
                  any U.S. Local Television Show (as hereinafter defined), and
                  each subsequent Television Broadcast Year to begin at the
                  expiration of the preceding Television Broadcast Year.

         1.23     "Pearson Production and Marketing Information" shall mean
                  knowledge or information acquired, developed, or possessed by
                  Pearson (with the right to disclose the same to others) at any
                  time during the Term of this Agreement, or prior thereto,
                  which relates to the development, production and marketing and
                  distribution of the Licensed Internet Games and such other
                  information necessary for, or useful in, the production,
                  development of the Licensed Internet Games, as well as any
                  knowledge or information pertaining to the marketing,
                  advertising, or sale of the Licensed Internet Games as
                  Pearson, in it sole discretion, may choose to make available
                  to Uproar.

         1.24     "Territory" shall mean the entire world.

         1.25     "UPROAR" shall mean an Uproar service mark, U.S. service mark
                  Application Serial No. 75/370,336.

         1.26     "URL" shall mean a Universal Resource Locator (which may or
                  may not include a domain name) used to access objects via the
                  Internet.

         1.27     "UK Version" shall mean a version of a Licensed Internet Game
                  designed to tie into the version of the Game that is broadcast
                  in the United Kingdom or is otherwise tailored for the United
                  Kingdom market.

         1.28     "US Version" shall mean a version of a Licensed Internet Game
                  designed to tie into the version of the Game that is broadcast
                  in the USA or is otherwise tailored for the US market.

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         1.29     "U.S. Local Television Show" shall mean a syndicated first-run
                  English language television show created, produced and/or
                  distributed by Pearson in U.S. television markets, which is
                  based on or substantially similar to Family Feud, To Tell the
                  Truth, 100% or Match Game.

         1.30     "Best Internet Games" shall have the meaning ascribed thereto
                  in Section 5.2 below.

         1.31     "Guaranteed Minimum" for a given year and/or Game shall mean
                  the amount specified in Section 14.3 as the payment Uproar
                  guarantees to PTV Netherlands for such year and/or Game.

         1.32     "Pearson Income", in respect of a Game, shall mean,
                  collectively, the royalty payable in respect of the Internet
                  Versions of such Game pursuant to Section 14.1 below and the
                  share of Net Revenues in respect of the Internet Versions of
                  such Game pursuant to Section 14.2 below.

         1.33     "Year" shall mean, as the context requires, the First Year,
                  the Second Year, the Third Year, the Fourth Year or the Fifth
                  Year, as such terms are defined in Section 14.3 below.

         1.34     "Site" shall mean the Uproar web site the home page of which
                  is located at the URL www.uproar.com, and all linked and
                  related Uproar web pages.

2        Term. This Agreement shall be effective on the date of execution, and
         shall continue until 30th June 2005, subject to Section 14.3(h) below.

3        Grant.

         3.1      License. PTV Netherlands hereby grants to Uproar and its
                  Affiliates (the "Uproar Grantees"), during the Term of this
                  Agreement, and subject to the provisions hereof, the sole and
                  exclusive worldwide right and license to create, produce,
                  copy, use, perform, display and transmit (via the Internet)
                  the English language Internet Versions of the Games, and to
                  use the Licensed Marks with respect to the creation,
                  production, performance and display of the English language
                  version of the Licensed Internet Games, but only so long as
                  such Licensed Internet Games are made available on the world
                  wide web portion of the Internet and produced in accordance
                  with this Agreement.

         3.2      Launch Schedule. It is understood and agreed that Uproar shall
                  launch the Licensed Internet Games in accordance with the
                  schedule set forth on Exhibit A, it being acknowledged that
                  the US Versions of Family Feud and 100% have been launched
                  prior to this Agreement. Without limiting any other remedy
                  that may be available to Pearson, Section 14.3(g) below sets
                  out certain rights that will be available to Pearson in the
                  event that certain Licensed Internet Games are not launched by
                  the dates

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                  specified in Exhibit A. Further in the event that:

                  a)       the multi-player US Version of To Tell the Truth has
                           not been launched by 1st January 2001, Pearson may by
                           giving written notice to Uproar to such effect,
                           obtain immediate reversion of all rights granted to
                           Uproar in respect of To Tell the Truth, and Uproar
                           shall be relieved of its obligation to pay the
                           Guaranteed Minimum for such Game under Section 14.3
                           below;

                  b)       any of the multi-player US Versions and UK Versions
                           of the Games has not been launched by 31st March
                           2001, Pearson may by giving written notice to Uproar
                           to such effect, obtain immediate reversion:

                           i)       in the event that it is the US Version of a
                                    Game that has not been launched, of all
                                    rights granted hereunder to Uproar in
                                    respect of such Game, and Uproar shall be
                                    relieved of its obligation to pay the
                                    Guaranteed Minimum for such Game under
                                    Section 14.3 below, and

                           ii)      in the event that it is only the UK Version
                                    of a Game that has not been launched, of all
                                    rights granted hereunder to Uproar in
                                    respect of such UK Version, and Uproar shall
                                    not be relieved of its obligation to pay the
                                    Guaranteed Minimum for such Game under
                                    Section 14.3 below.

         3.3      Removal of Games. In the event that any multi-player US
                  Version or UK Versions of any of the Games is not available on
                  the Site, once it has been launched, (i) for any period of 30
                  consecutive days during the Term, or (ii) for an aggregate of
                  90 days in any 12 month period during the Term, then without
                  limiting any other rights or remedies that may be available to
                  Pearson, Pearson may by giving written notice to Uproar to
                  such effect, obtain immediate reversion:

                  a)       in the event that it is the US Version of a Game that
                           has been unavailable, of all rights granted hereunder
                           to Uproar in respect of such Game, and Uproar shall
                           be relieved of its obligation to pay the Guaranteed
                           Minimum for such Game under Section 14.3 below, and

                  b)       in the event that it is only the UK Version that has
                           been unavailable, of all rights granted hereunder to
                           Uproar in respect of such UK Version, and Uproar
                           shall not be relieved of its obligation to pay the
                           Guaranteed Minimum for such Game under Section 14.3
                           below.

         3.4      Reversion of Rights in Password. Uproar acknowledges and
                  agrees that all rights granted to it in respect of a certain
                  television game show known as 'Password' under the 1999
                  Agreement hereby reverts to Pearson, and that Uproar shall
                  consequently have no further interest in such game or any
                  rights relating to such game.

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         3.5      Reservation of Rights Pearson reserves to itself rights in the
                  formats not explicitly granted to Uproar hereunder including
                  without limitation all television (subject to Section 1.17
                  above), video, non-theatric, video-on-demand and
                  near-video-on-demand, and all on-line rights other than those
                  granted above, including without limitation the right to
                  promote other versions of the format on-line whether on the
                  Internet or otherwise, and to transmit video and/or audio
                  versions of the format on line. Without limiting the
                  foregoing, Pearson further reserves the right:

                  a)       to feature the Games and the Game Show Formats (but
                           not Internet Versions) on Pearson web sites and on
                           appropriate broadcaster sites, and

                  b)       to license members of the general public who have
                           acquired stand-alone hand-held games or other
                           stand-alone game-console or CD-Rom games based on the
                           MatchGame Game Show Format to compete against each
                           other contemporaneously on a 'peer-to-peer' basis in
                           playing such games through the medium of the
                           Internet.

         3.6      Additional Materials from the Games. In the event that Uproar
                  wishes to incorporate in the Internet Versions music, sound
                  clips, still photographs, pictures of the host or any other
                  material derived from a local television version of a Game,
                  Pearson shall provide Uproar with access to such material
                  without cost, unless Pearson does not have rights to such
                  material in which case Uproar shall request Pearson to
                  negotiate on its behalf access to such material. Pearson
                  agrees to use reasonable endeavours to secure access to such
                  material for Uproar; however, Pearson cannot provide any
                  assurance that such access will be granted by third parties.
                  The cost of such access to and use of the third-party material
                  shall be paid by Uproar, including without limitation any
                  residuals, reuse fees and other costs payable to talent,
                  composers and music publishers, provided that Pearson shall
                  not conclude a deal to give Uproar access to such material
                  unless Uproar has first approved in writing of the terms of
                  such deal. Uproar shall not use any such material unless it
                  has first acquired the right do so as aforesaid.

         3.7      Existing Enhanced Television Games. Notwithstanding anything
                  contained in this Agreement, Pearson agrees that Uproar shall
                  be entitled to continue until 30th September 2001 exploitation
                  of interactive television versions of Family Fortunes on cable
                  television systems in the United Kingdom, and any income
                  derived therefrom shall be accounted for as if it were income
                  from an Internet Version.

         3.8      Receipt of Internet Games Through the Television. In the event
                  that Uproar wishes to do a marketing or distribution deal with
                  an interactive television service, whereby the interactive
                  television service would provide a prominent link to one of
                  the Licensed Internet Games on the electronic programming
                  guide or Internet home page or portal of such interactive
                  television service that is received through the television
                  screen, Uproar must first obtain Pearson's written approval.

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         3.9      Release of Licensed Internet Games Outside UK and US. In the
                  event that Uproar has not launched a version of a Licensed
                  Internet Game designed to tie into the version of the Game
                  that is broadcast in a predominantly English speaking
                  territory other than the US and UK within two years of:

                  a)       the date of this Agreement or, if later,

                  b)       the date on which Pearson gives Uproar notice of the
                           first terrestrial transmission of the local version
                           of the Game in such territory,

                  then Pearson shall be entitled by giving written notice to
                  Uproar to such effect to immediately revert the rights granted
                  hereunder to Uproar in such Game for such territory.

4        Communication of Production and Marketing Information. Beginning upon
         the Effective Date of this Agreement, each party shall furnish, and
         from time to time shall continue to furnish upon request, such
         Production and Marketing Information (as defined in Sections 1.3 and
         1.23) in its discretion, may deem reasonably necessary or useful in
         view of the state of the development of the business and nature and
         extent of the markets related to the Licensed Internet Games. In this
         regard, Pearson agrees to use reasonable efforts to obtain and secure
         for Uproar the right to use, reuse, perform, display and transmit over
         the Internet (with respect to the Licensed Internet Games), questions
         previously used in televised episodes of Family Feud, To Tell the
         Truth, 100% and Match Game; provided that Uproar shall pay any costs
         associated with such use of previously televised questions (such costs
         to be deducted from Gross Revenue pursuant to Section 1.20 of this
         Agreement). Pearson shall make reasonable efforts to supply such
         Production and Marketing Information in the form reasonably requested
         by Uproar to enable Uproar to create, produce, host, serve and market
         the Licensed Internet Games on the Internet as well as sell Advertising
         related to said Licensed Internet Games throughout the Territory during
         the Term of this Agreement. Without limiting the foregoing, Uproar
         shall send to Pearson monthly reports no later than 30 days following
         the last day of each month detailing the traffic to each of the
         Internet Versions for the said month and advertising revenue generated.
         The reports shall detail, at least, total ad impressions, total unique
         users (to the extent that Uproar collects such data) and implied
         cost-per-thousand advertising rates.

5        Licensed Internet Game Development and Uproar Content.

         5.1      Pearson Participation. Uproar shall make reasonable efforts to
                  include Pearson in all major aspects (including, without
                  limitation, all business, design, editorial, and artistic
                  processes) related to the development of the Internet Versions
                  of the Games. Uproar shall make reasonable efforts to notify
                  Pearson in writing or by e-mail of all major meetings, tests,
                  and decisions related to the development process and to
                  include at least one Pearson employee (to be designated by
                  Pearson) in all major meetings and discussions of the business
                  or creative development and maintenance of the Licensed
                  Internet Games and shall provide Pearson with the option of
                  participating in (and

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                  provide any non-confidential information which Pearson may
                  reasonably request related to) the process of developing and
                  marketing the Site, provided however that all written
                  approvals of Preliminary Representations or Descriptions
                  granted pursuant to Section 5.4 shall be deemed final. Pearson
                  shall, however, retain the right, upon reasonable advance
                  notice to Uproar, to require changes or replacements for any
                  content or editorial elements of the Licensed Internet Games
                  that Pearson reasonably determines may devalue, degrade or
                  diminish the value of the Game Show Formats.

         5.2      The Web Pages. Each local Licensed Internet Game will include
                  a multi-player game that is updated weekly, chat, e-mail,
                  banners and click through advertisements, the number, size,
                  placement and content of which must be approved in writing in
                  advance by Pearson. In addition, each local Licensed Internet
                  Game will include a prominently displayed link to a URL
                  nominated by Pearson on which Pearson is maintaining a
                  promotional website for the local television show
                  corresponding to the relevant local Licensed Internet Game,
                  such links to be put in place within 30 days of Pearson
                  notifying Uproar of the relevant URL address. Uproar shall use
                  reasonable efforts to develop and maintain customized web
                  pages for the Licensed Internet Games that reasonably meet or
                  exceed the performance, technical and design standards of
                  Uproar's best Internet games as agreed upon by the parties
                  (the "Best Internet Games"), but in any case that at least
                  meet such standards achieved for the multi-player US Version
                  of Family Feud. Said Web Pages will include the Licensed
                  Marks, and such other content as agreed to by the parties
                  hereto (the "Web Pages").

         5.3      Specifications. Uproar shall develop and submit to Pearson
                  specific and detailed preliminary representations of the Web
                  Pages that will achieve the business requirements described in
                  Paragraph 5.2 above ("Preliminary Representations") in
                  sufficient time to enable Uproar to meet the launch timetable
                  set forth in Exhibit A hereto. Such Preliminary
                  Representations shall comprise text descriptions of
                  approximately one paragraph describing the content, questions,
                  tone and highlights of the Licensed Internet Games. Once
                  Pearson approves the Preliminary Representations, Uproar shall
                  prepare detailed descriptions ("Descriptions") for each of the
                  Licensed Internet Games. The Descriptions shall specify
                  interactive and multimedia components, graphic elements and
                  content of each Web Page, as well as, overall structure and
                  hierarchy. Once Pearson or its representative approves the
                  Descriptions in writing, the Descriptions shall become the
                  approved specifications for the Licensed Internet Games (the
                  "Specifications").

         5.4      Acceptance. If Uproar has not been notified by Pearson in
                  writing of an adverse examination of either the Preliminary
                  Representations or Descriptions, within thirty (30) days after
                  receipt by Pearson of the same, such Preliminary
                  Representation and/or Description shall be deemed accepted by
                  Pearson. In the event that Pearson rejects the Preliminary
                  Representations or Descriptions, Uproar shall submit revised
                  Preliminary Representations or Descriptions for Pearson's
                  review within twenty-one (21) days of receipt of notice of
                  such rejection. The process of review and revision shall
                  continue until Pearson has approved the Preliminary
                  Representations or

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                  Descriptions in writing. Once the Preliminary Representations
                  or Descriptions have been approved by Pearson in writing, they
                  shall be deemed accepted and final.

         5.5      Testing.

                  a)       Technical Testing. Uproar shall conduct beta testing
                           for each Web Page to assure that each Web Page
                           reasonably conforms to the Specifications. Uproar
                           shall submit to Pearson in sufficient time to enable
                           Uproar to meet the launch timetable set forth in
                           Exhibit A, such digitized version(s) of the Web Pages
                           as described in the Specifications. Uproar shall, at
                           its sole cost, correct any Defect in any Web Page
                           reasonably identified by Pearson in writing within
                           forty-eight (48) hours after Uproar's delivery of the
                           same. "Defect(s)," for purposes of this Agreement,
                           means material non-compliance with the
                           Specifications. Once Pearson approves the digitized
                           version, or modified digitized version, as the case
                           may be, Uproar shall assemble the Web Pages into the
                           Licensed Internet Games in a manner that conforms in
                           all material respects to the Specifications.

                  b)       Market Testing. Uproar shall make reasonable efforts
                           to conduct such pre-launch market testing as the
                           parties may reasonably deem appropriate for each of
                           the Licensed Internet Games.

         5.6      Support. During the Term, Uproar will provide technical
                  support to maintain the Web Pages of the same quality and
                  frequency as provided by Uproar to maintain Uproar's Best
                  Internet Games as defined in Section 5.2 above distributed by
                  Uproar on the Site. Such support shall include e-mail support
                  for Users and a designated contact person for Pearson in the
                  event that Pearson is contacted by Users or in some way
                  becomes aware of any problems with the Licensed Internet
                  Games.

         5.7      Residence. The Licensed Internet Games shall reside on Uproar
                  servers that shall be maintained and operated by Uproar in
                  accordance with standards to be set forth on Exhibit C.

         5.8      Creative Approval. Pearson shall retain the full right to
                  reasonably approve the creative and design aspects of the
                  Licensed Internet Games. As used in this Agreement, "Creative
                  Approval" means all rights of final approval over all aspects
                  of the look, feel, sound and appearance of the Licensed
                  Internet Games as it relates to the user's experience of the
                  Format. Pearson shall have the right to veto any changes in
                  design or implementation of the Licensed Games that Pearson
                  determines, in its sole discretion may devalue or negatively
                  affect general perceptions of the Game Show Formats or the
                  Licensed Marks.

         5.9      Material Deemed Objectionable by Pearson.

                  a)       In the event that Pearson finds offensive or
                           objectionable any game or other material on the Site
                           or on any web site to which Uproar links, Pearson
                           shall notify

                                       11
<PAGE>   12
                  Uproar senior management. If Uproar shall concur, then Uproar
                  shall use reasonable efforts to modify or remove such material
                  or links.

         b)       In the event that Uproar does not agree to modify or remove
                  such material or links from Uproar, Pearson may request that
                  the Uproar Board of Directors vote on whether such material or
                  links are objectionable and should be removed. The parties
                  agree to accept and abide by the decision of the Board of
                  Directors.

         c)       In the event that Uproar develops or acquires a new web site
                  or other property that Pearson reasonably believes is likely
                  to damage, devalue or negatively affect the Pearson name
                  because such property contains, promotes or is associated with
                  content deemed by Pearson to be objectionable, Pearson shall
                  notify Uproar senior management and request that Uproar change
                  or divest itself of such property.

         d)       In the event that Uproar does not accept or agree that the
                  material or property complained of by Pearson is likely to
                  damage, devalue or negatively affect the Pearson name, the
                  parties shall submit the issue to arbitration under the
                  auspices and according to the rules of the American
                  Arbitration Association (AAA), the cost of such arbitration to
                  be borne by Pearson.

         e)       In the event that the arbitrator(s) decide that the material
                  or property complained of by Pearson is damaging to or is
                  likely to damage, devalue or negatively affect the Pearson
                  name, Pearson shall be released from the provisions of
                  Sections 16.3 (c) - (e), and shall have the right to divest
                  itself immediately of all of the Shares.

6 Marketing and Advertising Material.

6.1      Approval. Uproar shall submit to Pearson, for approval in the manner
         which Pearson shall direct, all advertising, and other material on
         which the Licensed Marks appear, or are intended to be used in relation
         to the Licensed Internet Games. Pearson agrees to examine such material
         as promptly as feasible. If Uproar has not been notified in writing by
         Pearson of an adverse examination within thirty (30) days after
         dispatch of the material to Pearson, such material shall be deemed
         satisfactory (for purposes of this subparagraph "dispatch" shall mean
         facsimile delivery, overnight courier delivery or mailed - air mail,
         postage prepaid). Should Pearson ever notify Uproar that any of the
         material is unacceptable, Uproar shall replace or amend to the
         satisfaction of Pearson such material not approved by Pearson. Without
         detracting from the generality of the foregoing, the marketing legends
         for use in association with the Licensed Internet Games which Pearson
         considers appropriate in the circumstances would read: "Produced and
         Distributed under License from Pearson Television" and on each Web
         Page: "Uproar in association with Pearson TV," along with the U.S.
         Local Television Show logos or Pearson television logos.

6.2      Other Marks. Other than Uproar's service mark UPROAR, and the Licensed
         Marks, Uproar shall not use any other service mark or trademark on or
         in association with the

                                       12
<PAGE>   13
         Licensed Internet Games, and shall not use the Licensed Marks in any
         medium other than the Internet without the prior written approval of
         Pearson on or in connection with any other goods or service other than
         the Licensed Internet Games. Uproar specifically agrees not to produce,
         or distribute, directly or indirectly, any other game, whose trademark,
         service mark, trade name, URL or other designation is confusingly
         similar to the Licensed Marks. The use of the Licensed Marks by Uproar
         shall be exclusive in respect to English Language Internet Games in the
         Territory.

7 Licensed Marks.

7.1      Recognition of Pearson's Rights. Uproar recognizes Pearson's ownership
         of the Licensed Marks and the validity of Pearson's registrations
         thereof or applications therefor in the Territory and Uproar will not
         dispute or put at issue such ownership or validity. Uproar shall not at
         any time apply for or obtain the registration of any Licensed Mark or
         any URL containing, or confusingly similar to, the names of the Games
         in any country or do or suffer to be done any act or thing which might
         in any way impair the rights of Pearson in and to the Licensed Marks,
         and shall not claim any right or interest in the Licensed Marks, except
         as such rights as are expressly granted herein. SEEMS OK

7.2      Impairment of Licensed Marks. Uproar hereby covenants that it will not
         directly or indirectly undertake any action anywhere which in any
         manner might infringe, or impair the validity, scope, or title of
         Pearson in the Licensed Marks, or any of them, or in any other
         trademarks, service marks or URLs which may be owned by Pearson at any
         time during the Term, and Uproar agrees to cease using the Licensed
         Marks immediately upon expiration or termination of this Agreement.

7.3      Protection of Licensed Marks. Pearson reserves the right to prosecute
         and defend, at its own expense, all suits involving any of the Licensed
         Marks and to take any action or proceedings that it deems desirable for
         the protection thereof; and at Pearson's discretion may do so in its
         own name or in the name of Uproar, or in the joint names of Pearson and
         Uproar, and Uproar shall claim no rights against Pearson as the result
         of any such action. Uproar agrees to notify Pearson promptly of any
         infringement of the Licensed Marks or of any pending or threatened
         litigation involving such Licensed Marks. Uproar shall fully cooperate
         in any such litigation if requested by Pearson to do so, provided
         however that Pearson shall pay Uproar's reasonable attorney's fees and
         out-of-pocket expenses associated with such litigation. Uproar further
         agrees that this license is personal to Uproar and shall not be
         assigned or otherwise transferred by Uproar without the prior written
         consent of Pearson.

8 Covenants of Pearson.

8.1      Promotion of www.uproar.com on Pearson Games. PTV Inc. agrees to
         advertise and promote in the United States the Licensed Internet Games
         in accordance with the following provisions and all applicable laws and
         regulations. For the period until

                                       13
<PAGE>   14
         September 30, 2001 and provided that Uproar is launching the Licensed
         Internet Games in accordance with the schedule set forth on Exhibit A,
         this marketing campaign shall include:

         a)       Reasonable efforts to mention the URL www.uproar.com by a host
                  or in a voice-over at the close of each United States Local
                  FF, and United States Local Truth;

         b)       Inclusion of www.uproar.com in the closing credits of each
                  United States Local FF and United States Local Truth;

         c)       Inclusion of www.uproar.com in all Major Press Advertising
                  relating to each United States Local FF and United States
                  Local Truth (as used herein, Major Press Advertising shall
                  mean any print advertising of 1/8 page or larger);

         d)       Inclusion of www.uproar.com in all written sales material,
                  press kits, media guides, and sales and demonstration tapes
                  for each United States Local FF and United States Local Truth;

         e)       Reasonable efforts to include in each United States Local FF
                  and United States Local Truth, where possible, Uproar prizes,
                  or sponsorship to include prizes related to Uproar; and

         f)       Inclusion of a ten (10) second commercial message promoting
                  the URL www.uproar.com and referring to the name of the US
                  Version of Family Feud and the US Version of To Tell the Truth
                  at the end of each United States Local FF and United States
                  Local Truth, such message to be produced by Uproar at its sole
                  cost, consistent with PTV Inc.'s technical and production
                  standards, and in consultation with PTV Inc.

9 Intentionally Deleted.

10 Uproar's Warranties. Uproar hereby warrants and covenants to Pearson as
   follows:

10.1     Warranty of Performance. The Licensed Internet Games (and each
         individual Web Page) will be free from material reproducible
         programming errors and from material defects in workmanship and
         materials, and will operate in material conformity with the performance
         capabilities and business requirements described in the Specifications.
         If any material non-conformities or material programming errors are
         discovered, Uproar shall promptly remedy them at no expense to Pearson.
         The Licensed Internet Games shall be designed for use by individuals
         with limited or general understanding of the Internet. Uproar shall use
         reasonable efforts to develop and maintain the Internet Games in a high
         quality so that the performance of the Internet Games meets or exceeds
         the performance of the Best Internet Games developed by Uproar for the
         Site. Uproar shall use reasonable efforts to ensure that the design and
         look and feel of the Licensed Internet Games shall be distinctive and

                                       14
<PAGE>   15
         that there are as many versions of the Licensed Internet Games
         available (rotated as frequently) as for its Best Internet Games on the
         Site. Uproar shall make reasonable efforts to make the look and feel of
         the Licensed Internet Games distinctive and shall not use any editorial
         or design elements which are specific to the Licensed Internet Games on
         other games it develops or uses on the Site or any other Internet Site
         without the prior written approval of Pearson.

10.2     Warranty of Title. Except for the Licensed Marks and materials provided
         by Pearson for use in connection with the Licensed Internet Games (the
         "Pearson Materials"), Uproar's trademarks, service marks, URL's,
         software and all other materials used by Uproar in connection with the
         Licensed Internet Games (the "Uproar Materials"), shall not infringe
         upon the intellectual property rights of any third party, including
         without limitation, claims of copyright infringement, trademark
         infringement, false designation of origin, disparagement, violation of
         patent or shop rights, piracy or plagiarism. Uproar warrants that it
         owns or has the full right and authority to use all materials used on
         the Site.

10.3     Warranty Against Disablement. No portion of the Licensed Internet Games
         licensed hereunder will contain any protection feature designed to
         prevent its use. This includes, without limitation, any computer virus,
         worm, software lock, drop dead device, Trojan horse routine, trap door,
         Uproar bomb or any other codes or instructions that may be used to
         access, modify, delete, damage or disable same once uploaded to any
         computer system.

10.4     Warranty of Expertise. Uproar represents and warrants that it has the
         technical and production knowledge necessary to provide, and will
         provide, services required for the creation, production, and
         distribution in connection with the Licensed Internet Games as
         contemplated herein. In connection therewith, all of the services to be
         performed by Uproar hereunder will be rendered using sound,
         professional practices, and in a competent and professional manner, by
         knowledgeable, trained and qualified personnel. Uproar acknowledges
         that Pearson is relying upon the skill and expertise of Uproar for the
         development, integration, maintenance and marketing of the Licensed
         Internet Games.

10.5     Warranty of Millennium Compliance. Uproar represents and warrants that
         all Software supplied by Uproar or obtained by Uproar from a
         third-party vendor and used in connection with the Licensed Internet
         Games on the Site shall be Millennium Compliant. As used herein,
         "Millennium Compliant" means that it can provide all of the following
         functions:

         a)       handle date information before, during, and after January 1,
                  2000, including but not limited to accepting date input,
                  providing date output, and performing calculations on dates or
                  portions of dates;

                                       15
<PAGE>   16
         b)       function accurately and without interruption before, during,
                  and after January 1, 2000, without any change in operations
                  associated with the advent of the new century;

         c)       respond to two-digit year-date input in a way that resolves
                  the ambiguity as to century in a disclosed, defined, and
                  predetermined manner; and

         d)       store and provide output of date information in ways that are
                  unambiguous as to century.

10.6     Corporate Authority. Uproar has the full right, power, legal capacity
         and authority to enter into this Agreement and to carry out the terms
         hereof.

10.7     No Conflicts. There are no undisclosed liens, claims, encumbrances,
         legal proceedings, restrictions, agreements or understandings that
         might materially conflict or interfere with, limit, or be inconsistent
         with or otherwise affect any of the provisions of the Agreement or the
         enjoyment by Pearson of any rights in the Licensed Internet Games or
         any elements thereof.

10.8     Technology Update. During the Term of this Agreement, Uproar shall, at
         no additional cost to Pearson, make reasonable efforts to ensure that
         the Server, the Web Site and the Licensed Internet Games are maintained
         so as to be compatible with, and accessible to, Users using the
         then-current developments, versions and updates of Internet-related
         technology, within a reasonable time after such technology becomes
         commercially available. Without limitation of the foregoing, Uproar
         agrees that at all times during the Term of this Agreement, and at no
         extra cost to Pearson, the Licensed Internet Games will be compliant
         with the most recent HTML specifications used on its Best Internet
         Games.

10.9     New Technology. If during the Term Uproar plans to replace, enhance,
         upgrade or otherwise modify the software or technology used to produce,
         maintain, host or deliver any Internet Version of any game produced for
         the Site in conjunction with any third party ("New Technology"), Uproar
         shall make reasonable efforts to make such New Technology available for
         use in the Licensed Internet Games at the same time that such New
         Technology is used in any other Internet Version of any Uproar game.

11 Pearson's Warranties. Pearson hereby warrants and covenants to Uproar as
   follows:

11.1     Licensed Pearson Materials. The use by Uproar of such PTV Netherlands
         Licensed Marks in any English-speaking country in the manner
         contemplated by this Agreement shall not infringe upon any copyright,
         trademark, patent, trade secret or other proprietary right. Pearson
         warrants that it owns or has the full right and authority to use and
         license the Licensed Marks and the Game Show Formats.

                                       16
<PAGE>   17
11.2     License of Pearson Content. The use of the Game Show Format, the
         Pearson Materials, and/or use of any question by Uproar as content
         provided by Pearson hereunder used by Uproar in the manner contemplated
         by this Agreement, shall not infringe upon any copyright, patent, trade
         secret, trademark, right of publicity, or privacy or other proprietary
         right.

11.3     Corporate Authority. Pearson has the full right, power, legal capacity
         and authority to enter into this Agreement and to carry out the terms
         hereof. Pearson Television Holdings, Inc., Pearson Television North
         America, Inc., and Pearson Television Limited each agrees that where
         any obligation to be undertaken hereunder is to be undertaken by one of
         its subsidiaries, that it will ensure that such subsidiary undertakes
         such obligation.

11.4     No Conflicts. There are no undisclosed liens, claims, encumbrances,
         legal proceedings, restrictions, agreements or understandings that
         might materially conflict or interfere with, limit, or be inconsistent
         with or otherwise affect any of the provisions of this Agreement or the
         enjoyment by Uproar of any of the rights granted to Uproar by Pearson
         hereunder.

11.5     Warranted Marks. Pearson is the owner of the marks set forth on Exhibit
         B (the "Warranted Marks"), together with the goodwill of the business
         connected with the use of and symbolized by the registrations or
         applications therefor. Such Warranted Marks and the registrations or
         applications therefor exist and are subsisting and have not been
         abandoned, and to the best of Pearson's knowledge no other firm,
         corporation, association or person has the right to use such Warranted
         Marks in any English-speaking country either in identical form thereof
         or in such near resemblance thereto as to be likely, when used on or in
         association with the licensed Internet Versions of the Games, to cause
         confusion or to cause mistake or to deceive.

12 Advertising and Promotion.

12.1     Volume of Sales. Uproar agrees to expend its best efforts to achieve a
         large and increasing volume of sales of Advertising on the Licensed
         Internet Games in the Territory.

12.2     Promotion. Uproar shall promote each of the Licensed Internet Games on
         the Site via buttons and text links at least as often and as
         prominently as Uproar promotes any other game. Uproar shall make
         reasonable efforts to place Game Logos on the home page of the Site.
         Uproar shall not incur any expenses relating to the marketing,
         promotion, or advertising of the Licensed Internet Games for which
         Pearson shall in any way be responsible, except where specific prior
         permission, in writing, shall have been received from Pearson in each
         instance.

12.3     Production. Uproar shall produce and distribute the Licensed Internet
         Games in an ethical manner and with good taste. The production and
         distribution of the Licensed

                                       17
<PAGE>   18
         Internet Games will reasonably comply with local community standards of
         good taste and decency in all communities from which the Licensed
         Internet Games may be accessed, with all applicable national and local
         laws, rules and regulations in the Territory.

13 Advertising. Uproar shall use its best efforts to sell Advertising on each
   and every local Licensed Internet Game.

13.1     Net Revenue Split. The Net Revenue shall be split fifty percent (50%)
         for Uproar and fifty percent (50%) for PTV Netherlands.

13.2     Intentionally Deleted

13.3     Intentionally Deleted.

14 Payments.

14.1     Format Royalty. No later than thirty (30) days after each calendar
         quarter, Uproar shall pay to PTV Netherlands fifteen percent (15%) of
         Gross Revenues (less any taxes that Uproar may be legally required to
         withhold) as a royalty for the rights and license to use the Game Show
         Formats.

14.2     Net Revenues. No later than thirty (30) days after each calendar
         quarter, Uproar shall pay PTV Netherlands its share (as set forth in
         Section 13) of any Net Revenues received by Uproar (less any taxes that
         Uproar may be legally required to withhold) during such calendar
         quarter.

14.3     Guaranteed Minimum.

         a)       In relation to the period from 1 July 2000 until 30 June 2001
                  (the "First Year") Uproar hereby guarantees payment to PTV
                  Netherlands, subject to Section 14.3(g) below, of a minimum
                  of:

                  i)       Pearson Income of $200,000 in respect of Family Feud,
                           and

                  ii)      Pearson Income of $150,000 in respect of To Tell the
                           Truth, and

                  iii)     Pearson Income of $200,000 in respect of 100%, and

                  iv)      Pearson Income of $150,000 in respect of Match Game

                  provided that Uproar shall be entitled to cross-collateralise
                  (i.e. apply) Pearson Income received in relation to any Game
                  in excess of the Guaranteed Minimum for such Game for the
                  First Year against unrecouped Guaranteed Minimum for the

                                       18
<PAGE>   19
                  First Year for any other Game or Games.

         b)       In relation to the period from 1 July 2001 until 30 June 2002
                  (the "Second Year") Uproar hereby guarantees payment to PTV
                  Netherlands of a minimum of:

                  i)       Pearson Income of $200,000 in respect of Family Feud,
                           and

                  ii)      Pearson Income of $200,000 in respect of To Tell the
                           Truth, and

                  iii)     Pearson Income of $200,000 in respect of 100%, and

                  iv)      Pearson Income of $200,000 in respect of Match Game

                  provided that Uproar shall be entitled to cross-collateralise
                  Pearson Income received in relation to any Game in excess of
                  the Guaranteed Minimum for such Game for the Second Year
                  against unrecouped Guaranteed Minimum for the Second Year for
                  any other Game or Games.

         c)       In relation to the period from 1 July 2002 until 30 June 2003
                  (the "Third Year") Uproar hereby guarantees payment to PTV
                  Netherlands, subject to Section 14.3(h) below, without any
                  cross-collateralisation, of a minimum of:

                  i)       Pearson Income of $300,000 in respect of Family Feud,
                           and

                  ii)      Pearson Income of $300,000 in respect of To Tell the
                           Truth, and

                  iii)     Pearson Income of $300,000 in respect of 100%, and

                  iv)      Pearson Income of $300,000 in respect of Match Game

         d)       In relation to the period from 1 July 2003 until 30 June 2004
                  (the "Fourth Year") Uproar hereby guarantees payment to PTV
                  Netherlands, subject to Section 14.3(h) below, without any
                  cross-collateralisation, of a minimum of:

                  i)       Pearson Income of $650,000 in respect of Family Feud,
                           and

                  ii)      Pearson Income of $650,000 in respect of To Tell the
                           Truth, and

                  iii)     Pearson Income of $300,000 in respect of 100%, and

                  iv)      Pearson Income of $300,000 in respect of Match Game.

         e)       In relation to the period from 1 July 2004 until 30 June 2005
                  (the "Fifth Year") Uproar hereby guarantees payment to PTV
                  Netherlands, subject to Section 14.3(h)

                                       19
<PAGE>   20
                  below, without any cross-collateralisation, of a minimum of:

                  i)       Pearson Income of $900,000 in respect of Family Feud,
                           and

                  ii)      Pearson Income of $900,000 in respect of To Tell the
                           Truth, and

                  iii)     Pearson Income of $400,000 in respect of 100%, and

                  iv)      Pearson Income of $400,000 in respect of Match Game.

         f)       In the event that by the statement in respect of the last
                  quarter of a Year the Pearson Income earned in respect of a
                  Game for such Year is less than Guaranteed Minimum for such
                  Game for such Year, then subject to the
                  cross-collateralisation provisions set out in Sections 14.3(a)
                  and (b) above, Uproar shall concurrently with the delivery of
                  such statement pay to PTV Netherlands the difference between
                  the Pearson Income earned in respect of the Game for such Year
                  and the Guaranteed Minimum for such Game for such Year.

         g)       Without limiting any other rights or remedies that may be
                  available to Pearson, in the event that:

                  i)       The single player US Version of To Tell the Truth has
                           not been launched by 30 September 2000, then the
                           cross-collateralisation provisions set out in Section
                           14.3(a) shall not apply to To Tell the Truth.

                  ii)      The single player US Version of To Tell the Truth has
                           been launched by 30 September 2000 but the
                           multi-player US Version of To Tell the Truth has not
                           been launched by 31 October 2000, then the
                           cross-collateralisation provisions set out in Section
                           14.3(a) shall not apply to To Tell the Truth.

                  iii)     The single player US Version of To Tell the Truth has
                           not been launched by 30 September 2000 and the
                           multi-player US Version of To Tell the Truth has not
                           been launched by 31 October 2000, then, in addition
                           to the cross-collateralisation provisions set out in
                           Section 14.3(a) not applying to To Tell the Truth,
                           the Guaranteed Minimum for To Tell the Truth for the
                           First Year shall be deemed increased to $250,000.

                  iv)      The multi-player US Version of To Tell the Truth has
                           still not been launched by 30 November 2000, then, in
                           addition to the cross-collateralisation provisions
                           set out in Section 14.3(a) not applying to To Tell
                           the Truth ,the Guaranteed Minimum for To Tell the
                           Truth for the First Year shall be deemed increased to
                           $300,000.

                  v)       The multi-player US Version of Match Game has not
                           been launched by 28th February 2001, then the
                           cross-collateralisation provisions set out in Section

                                       20
<PAGE>   21
                           14.3(a) shall not apply to Match Game.

                  For the avoidance of doubt, in the event that any one of the
                  launch dates specified above in respect of To Tell the Truth
                  has not been met, the cross-collateralisation provisions set
                  out in Section 14.3(a) shall not apply to To Tell the Truth
                  even if the other launch dates have been met.

         h)       Uproar shall be entitled, by giving written notice to Pearson
                  to such effect no later than 30 days prior to the commencement
                  of the Third Year, Fourth Year of Fifth Year, to elect to
                  revert its rights in any Game, in which case all rights
                  granted to Uproar under this Agreement in respect of such Game
                  shall revert to Pearson on the last day of the Year in which
                  the notice was given, and Uproar shall thereon be relieved of
                  its obligation to pay the Guaranteed Minimum for such Game in
                  all subsequent Years. For the avoidance of doubt the giving of
                  such notice shall not relieve Uproar of its obligation to pay
                  the Guaranteed Minimum for such Game in respect of the Year in
                  which such notice was given.

14.4     Statements. Uproar shall no later than thirty (30) days following the
         end of each calendar quarter provide to Pearson a full and accurate
         statement of account ("Statement") showing all Pearson Income and other
         monies due and owing under this Agreement in respect of such quarter.
         Such Statement shall be accompanied by payment of the Pearson Income
         and any other monies due without reserve, payment to be made by
         electronic transfer to such Pearson bank account as shall be notified
         to Uproar by Pearson in writing. All Uproar's own bank charges relating
         to payments in favor of Pearson shall be borne by Uproar. The
         Statements shall be in such form as the parties shall agree, but as a
         minimum shall show for the relevant quarter, separately for each local
         version of each Game all details to be taken into account in
         calculating the format royalty and the Net Revenue payable in respect
         of such local version of such Game, the amount of Minimum Guarantee
         remaining unrecouped, any allowable cross-collateralisation and the
         amount payable to Pearson. The Statements shall further show the
         cumulative amount of Pearson Income for each local version of each Game
         accrued since the beginning of the Term. Uproar shall continue to send
         Statements and make payments to Pearson notwithstanding expiration or
         termination of this Agreement until all amounts due to Pearson have
         been paid.

14.5     Audit. Pearson shall have the right at its expense to audit (or
         designate a third party to audit) Uproar's books and records for the
         purpose of verifying Gross and Net Revenue and operating expenses. Such
         audits shall be made not more than once per year, on not less than ten
         (10) days written notice, during regular business hours. If the
         auditor's figures reflect Pearson Income higher than that reported by
         Uproar, Uproar shall pay the difference. If the auditor's figures vary
         more than five percent (5%) or $1,000.00, whichever is less, from the
         figures provided by Uproar in any Statement, Uproar shall also pay the
         reasonable cost of the audit. Uproar shall not be

                                       21
<PAGE>   22
         obligated to keep said books and records created hereunder for more
         than two (2) years after the termination or expiration of this
         Agreement,.

                                       22
<PAGE>   23
15 Reporting.

15.1     Delay. In case of delay of thirty (30) days or more by Uproar in making
         payments, interest at the rate of one and one-half percent (1.5%) per
         month, assessed from the first day of the first month following the
         relevant quarterly period, shall be due PTV Netherlands from Uproar
         without special notice.

15.2     Taxes. If required to do so by law, Uproar may, after consultation with
         PTV Netherlands, withhold from payments due PTV Netherlands any taxes
         required to be paid in respect thereof, provided that any such
         deductions for the payment of such taxes are supported by duly executed
         receipts. Uproar shall provide PTV Netherlands with all reasonable
         assistance requested in any attempts made to reclaim or set off such
         taxes deducted, provided that PTV Netherlands shall reimburse Uproar
         for all costs and expenses it incurs in providing such assistance.

15.3     Records. Uproar shall keep complete and accurate records of its
         activities under this Agreement which shall be open to inspection by
         authorized representatives of Pearson.

16 Uproar Securities.

16.1     Issuance of Shares by Uproar. The parties acknowledge that pursuant to
         the 1999 Agreement PTV Inc. subscribed for 50,000 shares of Uproar
         Stock, which shares were subsequently split such that at the date of
         this Agreement PTV Inc. holds 2,000,000 shares of Uproar Stock
         ("Pearson's Securities"). PTV Inc. paid for the Pearson Securities, as
         follows:

         a)       500 shares (pre-split; now 20,000 shares) of Pearson's
                  Securities were issued in consideration for the payment by PTV
                  Inc. to Uproar of the US Dollar equivalent of 1,500,000
                  Austrian Schillings (the dollar value of which was determined
                  according to the applicable daily foreign exchange rates set
                  forth in the Wall Street Journal on the Effective Date); and

         b)       49,500 shares (pre-split; now 1,980,000 shares) of Pearson's
                  Securities were issued in consideration for the rights granted
                  under Sections 8.1(a) through 8.1(f) of the 1999 Agreement to
                  Uproar thereunder.

16.2     Intentionally Deleted.

16.3     Pearson's Warranties and Representations. Pearson hereby represents and
         warrants to Uproar, as follows:

         a)       Pearson acquired Pearson's Securities (hereinafter referred to
                  as the "Shares") solely for Pearson's own account.

                                       23
<PAGE>   24
                  b)       Pearson has no intention of distributing or reselling
                           the Shares or any part thereof, or interest therein,
                           in any transaction which would be in violation of the
                           applicable laws of any governmental authority having
                           jurisdiction over the issuance, transfer or sale
                           thereof.

                  c)       During the period commencing on execution of this
                           Agreement and terminating on 12th September 2000,
                           Pearson shall not publicly sell, transfer, convey or
                           otherwise dispose of all or any part of the Shares.
                           If, after such period, Pearson desires to publicly
                           sell, transfer, convey or otherwise dispose of all or
                           any part of the Shares, Pearson may do so, provided
                           that it fully complies with all applicable laws
                           and/or regulations of each governmental authority
                           having jurisdiction over the issuance, sale or other
                           disposition thereof.

                  d)       During the period commencing on execution of this
                           Agreement and terminating on January 30, 2001,
                           Pearson shall not purchase, in open market
                           transactions, or otherwise, an amount of shares of
                           Uproar Stock which, when added to the Shares and any
                           shares of Uproar Stock beneficially held by any
                           person or persons acting in concert with Pearson,
                           shall be greater than 20% of the total number of
                           shares of Uproar Stock then outstanding.

         16.4     Pearson's Board Representation. Until 30 September 2001 (the
                  "Directorship Period"), Pearson shall have the right to
                  continue to designate a person to be appointed to serve as a
                  member of Uproar's Board (the "Pearson Appointee"), and upon
                  providing Uproar with the name of the Pearson Appointee and
                  the particulars about his or her background and experience,
                  Uproar shall undertake all actions as shall be necessary to
                  cause the Pearson Appointee to be appointed to Uproar's Board
                  of Directors. If, until the expiration of the Directorship
                  Period, Uproar shall hold any meetings of its shareholders at
                  which members of its Board of Directors shall be elected, or
                  shall seek the election of such directors in some other
                  permissible manner, Uproar shall undertake all actions as
                  shall be necessary to cause the Pearson Appointee to be
                  included among management's slate of proposed directors, and
                  Uproar shall cause its officers who hold shares of Uproar
                  securities to vote all of such shares respectively held by
                  them in favor of the election of the Pearson Appointee in each
                  such instance. No later than 30 June 2001 the parties shall
                  hold discussions in good faith with a view to extending the
                  Directorship Period, and if they agree to do so, the
                  Directorship Period shall be deemed extended for such period
                  as is agreed in writing.

         16.5     Uproar's Warranties and Representations. Uproar represents and
                  warrants to Pearson as follows:

                  a)       Organization and Authority. At the date of execution
                           of the 1999 Agreement, Uproar was a company duly
                           organized, validly existing and in good standing
                           under the laws of Bermuda. Set forth on Exhibit D is
                           a list of jurisdictions in

                                       24
<PAGE>   25
                           which Uproar was at that date qualified or licensed
                           to do business as a foreign corporation. Uproar was
                           at that date duly qualified or licensed and in good
                           standing as a foreign corporation in each
                           jurisdiction in which (i) the nature of the business
                           conducted by it or the character or location of the
                           properties owned or leased by it made such
                           qualification or licensing necessary and (ii) the
                           failure to so qualify would, if not remedied, have
                           materially impaired title to its properties or its
                           rights to enforce contracts against others or expose
                           it to a material liability in any such jurisdiction.
                           Uproar at that date had all necessary corporate power
                           and authority to own, lease and operate all of its
                           properties and assets and to carry on its businesses
                           as then conducted and as proposed to be conducted.

                  b)       Uproar Capitalization. Each of the issued and
                           outstanding shares of Uproar Stock had at the date of
                           execution of the 1999 Agreement been duly authorized
                           and validly issued, was fully paid and non-assessable
                           and was issued by Uproar in compliance with all
                           applicable securities laws and all applicable rules
                           and regulations thereunder. Except as set forth on
                           Exhibit E to the 1999 Agreement or as otherwise
                           contemplated by the 1999 Agreement, there were at the
                           date of execution of the 1999 Agreement no
                           outstanding options, warrants, convertible or
                           exchangeable securities, subscription or other
                           rights, agreements or commitments to subscribe for or
                           purchase or acquire from Uproar any securities of
                           Uproar nor any agreement or understanding to issue
                           any such instruments. Except as set forth on Exhibit
                           E to the 1999 Agreement or as otherwise contemplated
                           by the 1999 Agreement, Uproar had at the date of
                           execution of the 1999 Agreement not reserved any
                           shares of capital stock for issuance upon the
                           exercise or conversion of any of its securities.
                           There were at the date of execution of the 1999
                           Agreement no preemptive or other rights to subscribe
                           for or to purchase, nor any restriction upon the
                           voting or transfer of, any shares of Uproar Stock
                           pursuant to the Memorandum of Association or Bye-Laws
                           of Uproar or otherwise. Uproar had at the date of
                           execution of the 1999 Agreement delivered to Pearson
                           true, complete and correct copies of its Memorandum
                           of Association and Bye-Laws which were in full force
                           and effect on the date of the 1999 Agreement.

                  c)       Subsidiaries. Set forth on Exhibit F of the 1999
                           Agreement are the only corporations (the
                           "Subsidiaries") with respect to which Uproar, at the
                           date of execution of the 1999 Agreement, beneficially
                           owned, directly or indirectly, any of the outstanding
                           stock or other equity interests, the holders of which
                           were entitled to vote for the election of a majority
                           of the board of directors or other governing body.
                           Each Subsidiary was at the date of execution of the
                           1999 Agreement duly organized, validly existing and
                           in good standing under the laws of its jurisdiction
                           of incorporation, which jurisdictions were set forth
                           on Exhibit F to the 1999 Agreement. Each Subsidiary
                           had at the date of execution of the 1999 Agreement
                           the corporate power and authority to own, lease and
                           operate all of its properties and assets and to carry
                           on its business as then conducted and as then
                           proposed to be conducted. Exhibit F to the 1999
                           Agreement set forth the jurisdictions in which each
                           Subsidiary was at the date of execution of the 1999

                                       25
<PAGE>   26
                           Agreement qualified or licensed to do business as a
                           foreign corporation. Each Subsidiary was at the date
                           of execution of the 1999 Agreement duly qualified or
                           licensed and in good standing as a foreign
                           corporation in each jurisdiction in which (i) the
                           nature of the business conducted by it or the
                           character or location of the properties owned or
                           leased by it made such qualification necessary and
                           (ii) the failure so to qualify would, if not
                           remedied, materially impair title to its properties
                           or its rights to enforce contracts against others or
                           expose it to a material liability in any such
                           jurisdiction. Set forth on Exhibit F to the 1999
                           Agreement was a list of each partnership and joint
                           venture agreement or arrangement (such arrangements
                           or entities created thereby, the "Joint Ventures") to
                           which Uproar or any Subsidiary was at such date a
                           party. Uproar and each Subsidiary had at the date of
                           execution of the 1999 Agreement good title to all
                           shares of stock or other equity interest in the
                           Subsidiaries and Joint Ventures then owned by it,
                           free and clear of all liens, charges, encumbrances,
                           equities and claims whatsoever, and subject to no
                           restrictions on transferability, except as such
                           transferability may be restricted by the provisions
                           of applicable securities laws. The capitalization of
                           each such Subsidiary and Joint Venture was set forth
                           on Exhibit F to the 1999 Agreement.

                  d)       Financial Statements. Uproar had at the date of
                           execution of the 1999 Agreement furnished Pearson
                           with copies of the audited consolidated financial
                           statements of Uproar and the Subsidiaries for each of
                           the three fiscal years ended December 31, 1997,
                           including in each case a consolidated balance sheet,
                           the related consolidated statements of operations,
                           stockholders' equity and of cash flows for the period
                           then ended, the accompanying notes, the report
                           thereon of Coopers & Lybrand, and the unaudited
                           consolidated financial statements of Uproar and the
                           Subsidiaries for each of the fiscal quarters of
                           Uproar ended March 31, 1998, June 30, 1998 and
                           September 31, 1998, consisting in each case solely of
                           a consolidated statement of operations. Such audited
                           financial statements, and to the best knowledge of
                           Uproar's Board of Directors at such time, all such
                           unaudited financial statements (i) were, as of the
                           respective dates thereof, correct and complete in all
                           material respects and were prepared from the books
                           and records of Uproar and the Subsidiaries, (ii) were
                           prepared in accordance with generally accepted
                           accounting principles consistently applied throughout
                           the periods covered ("GAAP"), (iii) as of the
                           respective dates thereof, reflected, and provided
                           adequate reserves in respect of, all liabilities of
                           Uproar and the Subsidiaries in accordance with GAAP,
                           including all contingent liabilities as of their
                           respective dates, and (iv) as of the respective dates
                           thereof, presented fairly in all material respects
                           the consolidated financial condition of Uproar and
                           the Subsidiaries and the results of their operations
                           for the periods then ended.

                  e)       Disclosure Materials. Uproar had at the date of
                           execution of the 1999 Agreement disclosed to Pearson
                           all material information and provided all appropriate
                           disclosure materials concerning Uproar and the Uproar
                           Stock: (i) which Pearson requested Uproar to provide;
                           and (ii) necessary, in Uproar's judgment, for Pearson

                                       26
<PAGE>   27
                           to base its decision to make the subscription in
                           Uproar Stock provided for therein. Such material
                           information and disclosure materials (the "Disclosure
                           Materials") included those items set forth on Exhibit
                           G to the 1999 Agreement. None of the information
                           concerning Uproar, the Subsidiaries and the Uproar
                           Stock set forth in such Disclosure Materials or
                           incorporated therein by reference contained any
                           untrue statement of a material fact or omitted to
                           state a material fact required to be stated therein
                           or necessary in order to make the statements made
                           therein, in light of the circumstances under which
                           they were made, not misleading.

                  f)       Offering of the Securities. The offering and sale of
                           Uproar Stock to Pearson provided for in the 1999
                           Agreement was made in accordance with, and in full
                           compliance with, all applicable securities laws,
                           including all U.S. Federal and state securities or
                           blue sky laws. Neither Uproar nor anyone acting on
                           its behalf has taken or will take any action which
                           would subject the issuance and sale of the Uproar
                           Stock or any other securities of Uproar to the
                           provisions of Section 5 of the U.S. Securities Act of
                           1933, as amended (the "Securities Act"), and to the
                           registration or qualification requirements of any
                           securities or blue sky laws of any applicable
                           jurisdiction.

                  g)       The Securities. Upon issuance to Pearson of the
                           Uproar Stock and payment therefor in accordance with
                           the terms of the 1999 Agreement, the Uproar Stock was
                           duly authorized, validly issued, fully-paid and
                           nonassessable, and had been issued by Uproar in
                           compliance with all applicable laws and all
                           applicable rules and regulations thereunder with no
                           personal liability attaching to the ownership
                           thereof, and none of the Uproar Stock is or will be
                           subject to any preemptive right or any lien, charge
                           or encumbrance or any other claim of any third party
                           and Pearson received good title thereto free and
                           clear of all liens, charges, encumbrances, equities
                           and claims whatsoever.

         16.6     Indemnification. Uproar shall indemnify Pearson and hold it
                  harmless from and against: (i) any and all loss, liability,
                  damage or deficiency resulting from any misrepresentation,
                  breach of warranty, negligent or wrongful act, or
                  nonfulfillment of any covenant or agreement on the part of
                  itself under the terms of the 1999 Agreement and this
                  Agreement, any document or instrument executed by such party
                  in connection with the 1999 Agreement or this Agreement or in
                  the Disclosure Materials; (ii) any and all actions, suits,
                  proceedings, claims, demands, assessments, judgments, costs,
                  and expenses including without limitation reasonable
                  attorney's fees and court costs incident to the foregoing
                  clause (i), to the extent any of the foregoing is not paid or
                  reimbursed by insurance. Anything contained in this Agreement
                  to the contrary notwithstanding, Uproar's obligation to
                  indemnify Pearson pursuant to the provisions of this Agreement
                  shall not exceed, in the aggregate, the sum of $5,000,000.

         16.7     Definitions Related to Registration Rights. Unless the context
                  otherwise requires, the terms defined in this Section 16.7
                  shall have the meanings herein specified for all

                                       27
<PAGE>   28
                  purposes of this Agreement, applicable to both the singular
                  and plural forms of any of the terms herein defined.

                  a)       "Commission" means the United States Securities and
                           Exchange Commission.

                  b)       "Uproar Stock" means, with respect to any date
                           subsequent to January 25, 2000, Common Stock of
                           Uproar Inc., a Delaware corporation, par value $.01
                           per share, and, with respect to any date from January
                           12, 1999 through January 25, 2000, Ordinary Shares of
                           Uproar Ltd., a Bermuda company.

                  c)       "Exchange Act" means the U.S. Securities Exchange Act
                           of 1934, as amended.

                  d)       "Holder" means the record or beneficial owner of any
                           Registrable Security.

                  e)       "Holders of a Majority of the Registrable Securities"
                           means the Person or Persons who are the Holders of
                           greater than 50% of the shares of Registrable
                           Securities then outstanding.

                  f)       "IPO" means Uproar's initial public offering of
                           securities pursuant to an effective registration
                           statement under the Securities Act.

                  g)       "Person" includes any natural person, corporation,
                           trust, association, company, partnership, joint
                           venture and other entity and any government,
                           governmental agency, instrumentality or political
                           subdivision.

                  h)       The terms "register," "registered" and "registration"
                           refer to a registration effected by preparing and
                           filing a registration statement in compliance with
                           the Securities Act or the Exchange Act, and the
                           declaration or ordering of the effectiveness of such
                           registration statement.

                  i)       "Registrable Securities" means (a) all Uproar Stock
                           purchased or otherwise acquired by Pearson, and (b)
                           any securities issued or issuable with respect to the
                           Uproar Stock referred to in clause (a) above by way
                           of a stock dividend or stock split or in connection
                           with a combination of shares, reclassification,
                           recapitalization, merger or consolidation or
                           reorganization; provided, however, that such shares
                           of Uproar Stock shall only be treated as Registrable
                           Securities if and so long as they (i) have not been
                           sold to or through a broker or dealer or underwriter
                           in a public distribution or a public securities
                           transaction; or (ii) have not been sold in a
                           transaction exempt from the registration and
                           prospectus delivery requirements of the Securities
                           Act under Section 4(1) thereof so that all transfer
                           restrictions and restrictive legends with respect to
                           such Uproar Stock are removed upon the consummation
                           of such sale and the seller and purchaser of such
                           Uproar Stock receive an opinion of counsel for Uproar
                           which shall be in form and content reasonably
                           satisfactory to the seller and buyer and their
                           respective counsel, to the effect that such Uproar
                           Stock in the hands of the purchaser is freely

                                       28
<PAGE>   29
                           transferable without restriction or registration
                           under the Securities Act in any public or private
                           transaction.

                  j)       "Rule 144" means Rule 144 promulgated by the
                           Commission pursuant to the Securities Act or any
                           similar successor rule.

                  k)       "Securities Act" means the U.S. Securities Act of
                           1933, as amended.

         16.8     Intentionally Deleted

         16.9     Pearson's Demand Registration Rights. If any registration
                  statement filed by Uproar or any or its Affiliates under the
                  Exchange Act shall be declared effective by the Commission,
                  then, subject to the provisions of subsections (b), (c) and
                  (d) of this Section 16.9, on two occasions only during the
                  period of three years following the expiration of the one year
                  period described in Section 16.3(c) hereof, the Holder or
                  Holders (the "Requesting Holder" or "Requesting Holders," as
                  the case may be) of a Majority of the Registrable Securities
                  shall be entitled to request registration under the Securities
                  Act of at least such number of the shares of Registrable
                  Securities then held by them (a "Demand Registration"). Such
                  request for registration must specify the number of
                  Registrable Securities requested to be registered, the
                  anticipated price per share for such offering and whether such
                  registration is to be in the form of an underwritten offering.

                  a)       Selection of Underwriter(s). If the Requesting Holder
                           or Requesting Holders, as the case may be, elect to
                           have the offering of Registrable Securities pursuant
                           to the Demand Registration be in the form of an
                           underwritten offering, Uproar shall use its best
                           efforts to select and obtain the investment banker or
                           investment bankers and manager or managers reasonably
                           acceptable to Pearson to administer the offering.

                  b)       Priority on Underwritten Demand Registration. If the
                           Demand Registration is an underwritten offering and
                           the managing underwriter thereof advise Uproar in
                           writing that in its opinion the number of Registrable
                           Securities requested to be included in such offering
                           exceeds the number of Registrable Securities that can
                           be sold therein without adversely affecting the
                           marketability of the offering, Uproar will include in
                           such registration the number of Registrable
                           Securities requested to be included that, in the
                           opinion of such managing underwriter, can be sold
                           without adversely affecting the marketability of the
                           offering, allocated in proportion, as nearly as
                           practicable, to the respective number of shares of
                           Registrable Securities held by such Holders at the
                           time of filing the registration statement. If all of
                           the Registrable Securities requested to be included
                           in a Demand Registration have been included, Uproar
                           shall be entitled to include that number of shares of
                           its unissued Uproar Stock or other securities as are
                           consented to by the managing underwriter.

                                       29
<PAGE>   30
                  c)       Limitations on Demand Registration. Notwithstanding
                           any other provision in this Agreement, Uproar shall
                           not be required to effect the Demand Registration (a)
                           during the period of time during which its IPO
                           Registration Statement shall remain effective; (b)
                           during the 12 consecutive months following the
                           effective date of a registration statement filed in
                           connection with any previous registration in which
                           the Holders of Registrable Securities exercised any
                           piggyback rights pursuant to this Agreement; or (c)
                           at any time when another registration statement
                           (other than on Form S-4, S-8 or a registration
                           statement on Form S-1 covering solely an employee
                           benefit plan) of Uproar (i) is reasonably foreseen by
                           Uproar's Board of Directors to be filed with the
                           Commission within 30 days after the date of request
                           for the Demand Registration, (ii) has been filed and
                           not yet become effective, or (iii) has become
                           effective less than six months prior to the date of
                           the request for the Demand Registration.

                  d)       Special Audits. Notwithstanding any other provision
                           of this Agreement, Uproar shall not be required to
                           undergo or pay for any special audit to effect a
                           Demand Registration, and if such a special audit
                           (other than its normal fiscal year-end audits) would
                           be required in order to file or effect a registration
                           statement hereunder, Uproar shall be entitled to
                           delay the filing or effectiveness of such
                           registration statement until a reasonable period of
                           time following completion of such audit in the
                           ordinary course of Uproar's business; provided,
                           however, that Uproar shall not be entitled to delay
                           the filing or effectiveness of such registration
                           statement if the Holders who have requested
                           registration of Registrable Securities shall agree to
                           pay for the cost of such audit.

         16.10    Pearson's Piggyback Registration Rights. If (i) any
                  registration statement filed by Uproar or any or its
                  Affiliates under the Exchange Act shall be declared effective
                  by the Commission, and (ii) at any time during the period of
                  five years following the expiration of the two year period
                  described in Section 16.3(d) hereof, Uproar shall determine to
                  file a registration statement under the Securities Act (other
                  than an IPO registration statement or a registration statement
                  on Form S-4, S-8 or on Form S-1 covering solely an employee
                  benefit plan), Uproar agrees promptly to give written notice
                  of its determination to all Holders. Upon the written request
                  of a Holder given within 30 days after the receipt of such
                  written notice from Uproar, Uproar agrees to use its best
                  efforts to cause all of such Holder's Registrable Securities
                  to be included in such registration statement and registered
                  under the Securities Act, all to the extent requisite to
                  permit the sale or other disposition of the Registrable
                  Securities to be so registered. All registrations of
                  Registrable Securities referred to in this Section 16.10 may
                  be referred to as "Piggyback Registrations."

                  a)       Underwritten Piggyback Registration. If the
                           registration of which Uproar gives written notice
                           pursuant to Section 16.10 is for a public offering
                           involving an underwriting, Uproar agrees to so advise
                           the Holders as a part of its written notice.

                                       30
<PAGE>   31
                  b)       Priority on Piggyback Registration. Notwithstanding
                           any other provision of this Section 16.10, if the
                           managing underwriter of a Piggyback Registration that
                           is an underwritten distribution advises Uproar and
                           the Holders participating in such Piggyback
                           Registration in writing that, in its good faith
                           judgment, the number of shares of Registrable
                           Securities requested to be registered exceeds the
                           number of shares of Registrable Securities which can
                           be sold in such offering without adversely affecting
                           the marketability of the offering, then (a) the
                           number of shares of Registrable Securities so
                           requested to be included in the offering shall be
                           reduced to that number of shares which in the good
                           faith judgment of the managing underwriter can be
                           sold in such offering, and (b) such reduced number of
                           shares shall be allocated among all participating
                           Holders in proportion, as nearly as practicable, to
                           the respective number of shares of Registrable
                           Securities held by such Holders at the time of filing
                           the registration statement; provided, however, that,
                           in all events, the shares to be issued by Uproar
                           shall have priority over the shares of Registrable
                           Securities requested to be registered.

                  c)       Registration Procedures. If and as often as Uproar is
                           required by the provisions of Sections 16.7(c) and
                           (d) hereof to include shares of Registrable
                           Securities held by various Holders in a registration
                           statement filed under the Securities Act, Uproar, as
                           expeditiously as possible, agrees that it shall:

                           (i)      Registration Statement; Period of
                                    Effectiveness. In accordance with the
                                    Securities Act and all applicable rules and
                                    regulations, prepare and file with the
                                    Commission a registration statement with
                                    respect to such securities and use its best
                                    efforts to cause such registration statement
                                    to become and remain effective for a period
                                    of nine months (or, if such registration
                                    statement has been filed on Form S-3, for a
                                    period of one year) and prepare and file
                                    with the Commission such amendments and
                                    supplements to such registration statement
                                    and the prospectus contained therein as may
                                    be necessary to keep such registration
                                    statement effective and such registration
                                    statement and prospectus accurate and
                                    complete during such period of time;

                           (ii)     Underwriting Agreement. If the offering is
                                    to be underwritten in whole or in part,
                                    enter into a written underwriting agreement
                                    in form and substance reasonably
                                    satisfactory to the managing underwriter of
                                    the public offering and Uproar;

                           (iii)    Copies of Registration Statement,
                                    Prospectus, Other Documents. Furnish to the
                                    Holders of Registrable Securities
                                    participating in such registration and to
                                    the underwriters of the securities being
                                    registered such number of copies of the
                                    registration statement and each amendment
                                    and supplement thereto, preliminary
                                    prospectus, final prospectus and such other
                                    documents as such underwriters and Holders
                                    may reasonably request in order to
                                    facilitate the public offering of such
                                    securities;

                                       31
<PAGE>   32
                           (iv)     Blue Sky Qualification. Use its best efforts
                                    to register or qualify the securities
                                    covered by such registration statement under
                                    such state securities or blue sky laws of
                                    such jurisdictions as such participating
                                    Holders and underwriters may reasonably
                                    request within twenty (20) days prior to the
                                    original filing of such registration
                                    statement, except that Uproar shall not for
                                    any purpose be required to execute a general
                                    consent to service of process or to qualify
                                    to do business as a foreign corporation in
                                    any jurisdiction where it is not so
                                    qualified, or to subject itself to taxation
                                    in any such jurisdiction;

                           (v)      Notification of Effectiveness and Filing.
                                    Notify the Holders participating in such
                                    registration, promptly after it shall
                                    receive notice thereof, of the date and time
                                    when such registration statement and each
                                    post-effective amendment thereto has become
                                    effective or a supplement to any prospectus
                                    forming a part of such registration
                                    statement has been filed;

                           (vi)     Preparation of Amendments and Supplements at
                                    Holders' Request. Prepare and file with the
                                    Commission, promptly upon the request of any
                                    such Holders, any amendments or supplements
                                    to such registration statement or prospectus
                                    which, in the opinion of counsel for such
                                    Holders, is required under the Securities
                                    Act or the rules and regulations thereunder
                                    in connection with the distribution of the
                                    Registrable Securities by such Holders;

                           (vii)    Correction of Statements or Omissions.
                                    Prepare and file promptly with the
                                    Commission, and promptly notify such Holders
                                    of the filing of, such amendments or
                                    supplements to such registration statement
                                    or prospectus as may be necessary to correct
                                    any statements or omissions if, at the time
                                    when a prospectus relating to such
                                    securities is required to be delivered under
                                    the Securities Act, any event has occurred
                                    as the result of which any such prospectus
                                    or any other prospectus as then in effect
                                    would include an untrue statement of a
                                    material fact or omit to state any material
                                    fact required to be stated therein or
                                    necessary to make the statements therein not
                                    misleading;

                           (viii)   Amendment of or Supplement to Non-Complying
                                    Registration Statement or Prospectus. In
                                    case any of such Holders is required to
                                    deliver a prospectus at a time when the
                                    prospectus then in circulation is not in
                                    compliance with the Securities Act or the
                                    rules and regulations of the Commission,
                                    prepare promptly upon request such
                                    amendments or supplements to such
                                    registration statement and such prospectus
                                    as may be necessary in order for such
                                    prospectus to comply with the requirements
                                    of the Securities Act and such rules and
                                    regulations;

                                       32
<PAGE>   33
                           (ix)     Stop Orders, Proceedings. Advise such
                                    Holders, promptly after it shall receive
                                    notice or obtain knowledge thereof, of the
                                    issuance of any stop order by the Commission
                                    suspending the effectiveness of such
                                    registration statement or the initiation or
                                    threatening of any proceeding for that
                                    purpose and promptly use its best efforts to
                                    prevent the issuance of any stop order or to
                                    obtain its withdrawal if such stop order
                                    should be issued; and

                           (x)      Inspection. Make available for inspection
                                    upon request by any Holder covered by such
                                    registration statement, by any managing
                                    underwriter of any distribution to be
                                    effected pursuant to such registration
                                    statement and by any attorney, accountant or
                                    other agent retained by any such Holder or
                                    any such underwriter, all financial and
                                    other records, pertinent corporate documents
                                    and properties of Uproar, and cause all of
                                    Uproar's officers, directors and employees
                                    to supply all information reasonably
                                    requested by any such Holder, underwriter,
                                    attorney, accountant or agent in connection
                                    with such registration statement.

         16.11    Expenses. Subject to the provisions of Section 16.9(d), with
                  respect to the first inclusion of shares of Registrable
                  Securities in a registration statement pursuant to Section
                  16.9 hereof and all inclusions of shares of Registrable
                  Securities in a registration statement pursuant to Section
                  16.10 hereof, Uproar agrees to bear all fees, costs and
                  expenses of and incidental to such registration and the public
                  offering in connection therewith; provided, however, that the
                  Holders participating in any such registration agree to bear
                  their pro rata share of any applicable underwriting discount
                  and commissions. In the event of a second inclusion of shares
                  of Registrable Securities in a registration statement pursuant
                  to Section 16.9 hereof, Pearson agrees to bear all fees, costs
                  and expenses of and incidental to such registration and the
                  public offering in connection therewith; provided, however,
                  that the Holders participating in any such registration agree
                  to bear their pro rata share of any applicable underwriting
                  discount and commissions. The fees, costs and expenses of
                  registration to be borne as provided in the preceding two
                  sentences shall include, without limitation, all registration,
                  filing, listing, and NASD fees, printing expenses, fees and
                  disbursements of counsel and accountants for Uproar, fees and
                  disbursement of counsel for the underwriter or underwriters,
                  if any, of the securities to be offered (if Uproar and/or
                  selling Holders who have requested registration of their
                  Registrable Securities are otherwise required to bear such
                  fees and disbursements), all legal fees and disbursements and
                  other expenses of complying with state securities or blue sky
                  laws of any jurisdictions in which such securities are to be
                  registered or qualified, reasonable fees and disbursements of
                  one firm of counsel for the Holders who have requested
                  registration of their Registrable Securities, to be selected
                  by the Holders of a majority of the shares of Registrable
                  Securities to be included in such registration, and the
                  premiums and other costs of policies of insurance against
                  liability arising out of such public offering.

                                       33
<PAGE>   34
         16.12    Underwriting Agreements. In the event any Demand Registration
                  or Piggyback Registration under this Agreement is an
                  underwritten offering, the right of any Holder to participate
                  therein, and the inclusion of such Holder's Registrable
                  Securities therein, shall be subject to such Holder's agreeing
                  to enter into, together with Uproar, an underwriting agreement
                  with and reasonably satisfactory to the underwriter or
                  underwriters selected by Uproar for such underwriting.

         16.13    Indemnification.

                  a)       Indemnification by Uproar. Uproar hereby agrees to
                           indemnify and hold harmless each Holder (including
                           Holder's officers, directors, legal counsel,
                           accountants, and controlling Persons) of Registrable
                           Securities which are included in a registration
                           statement pursuant to the provisions of these
                           Sections 16.7 - 16.14 from and against, and agrees to
                           reimburse such Holder with respect to, any and all
                           claims, actions (actual or threatened), demands,
                           losses, damages, liabilities, costs or expenses to
                           which such Holder may become subject under the
                           Securities Act or otherwise, insofar as such claims,
                           actions, demands, losses, damages, liabilities, costs
                           or expenses arise out of or are based upon any untrue
                           statement or alleged untrue statement of any material
                           fact contained in such registration statement, any
                           prospectus contained therein, or any amendment or
                           supplement thereto, or arise out of or are based upon
                           the omission or alleged omission to state therein a
                           material fact required to be stated therein or
                           necessary to make the statements therein, in light of
                           the circumstances in which they were made, not
                           misleading; provided, however, that Uproar will not
                           be liable in any such case to the extent that any
                           such claim, action, demand, loss, damage, liability,
                           cost or expense is caused by an untrue statement or
                           alleged untrue statement or omission or alleged
                           omission so made in strict conformity with written
                           information furnished by such Holder specifically for
                           use in the preparation thereof.

                  b)       Indemnification by Holders. Each Holder of shares of
                           Registrable Securities which are to be included in a
                           registration statement pursuant to the provisions of
                           these Sections 16.7 - 16.14 shall be required to
                           agree, severally and not jointly, as a condition of
                           Uproar's obligation to prosecute such registration to
                           completion, to indemnify and hold harmless Uproar,
                           its officers, directors, legal counsel and
                           accountants and each Person who controls Uproar
                           within the meaning of the Securities Act, from and
                           against, and agrees to reimburse Uproar, its
                           officers, directors, legal counsel, accountants and
                           controlling Persons with respect to, any and all
                           claims, actions, demands, losses, damages,
                           liabilities, costs or expenses to which Uproar, its
                           officers, directors, legal counsel, accountants or
                           such controlling Persons may become subject under the
                           Securities Act or otherwise, insofar as such claims,
                           actions, demands, losses, damages, liabilities, costs
                           or expenses are caused by any untrue statement of any
                           material fact contained in such registration
                           statement, any prospectus contained therein or any
                           amendment or supplement thereto, or are caused by the
                           omission or the alleged omission to state therein a
                           material fact required to be stated therein or
                           necessary to make the statements

                                       34
<PAGE>   35
                           therein, in light of the circumstances in which they
                           were made, not misleading, in each case to the
                           extent, but only to the extent, that such untrue
                           statement or alleged untrue statement or omission or
                           alleged omission was so made in reliance upon and in
                           strict conformity with written information furnished
                           by such Holder specifically for use in the
                           preparation thereof. Notwithstanding the foregoing,
                           no Holder shall be obligated hereunder to pay more
                           than the net proceeds realized by it upon its sale of
                           Registrable Securities included in such registration
                           statement.

                  c)       Indemnification Procedure. Promptly after receipt by
                           a party indemnified pursuant to the provisions of
                           Section 16.13(a) or (b) of notice of the commencement
                           of any action involving the subject matter of the
                           foregoing indemnity provisions, such indemnified
                           party will, if a claim therefor is to be made against
                           the indemnifying party pursuant to Section 16.13(a)
                           or (b), notify the indemnifying party of the
                           commencement thereof; but the omission so to notify
                           the indemnifying party will not relieve it from any
                           liability which it may have to an indemnified party
                           otherwise than under this Section 16.13 and shall not
                           relieve the indemnifying party from liability under
                           this Section 16.13 unless such indemnifying party is
                           prejudiced by such omission. In case any such action
                           is brought against any indemnified party and it
                           notifies the indemnifying party of the commencement
                           thereof, the indemnifying party will be entitled to
                           participate therein and, to the extent that it may
                           wish, jointly with any other indemnifying parties
                           similarly notified, to assume the defense thereof,
                           with counsel satisfactory to such indemnified party;
                           provided, however, that if the defendants in any such
                           action include both the indemnified party and the
                           indemnifying party, and the indemnified party shall
                           have reasonably concluded that there may be legal
                           defenses available to it and/or other indemnified
                           parties which are different from or additional to
                           those available to the indemnifying party, the
                           indemnified party or parties shall have the right to
                           select separate counsel (in which case the
                           indemnifying party shall not have the right to direct
                           the defense of such action on behalf of the
                           indemnified party or parties). Upon the permitted
                           assumption by the indemnifying party of the defense
                           of such action, and approval by the indemnified party
                           of counsel, the indemnifying party shall not be
                           liable to such indemnified party under Section
                           16.3(a) or Section 16.3(b) for any legal or other
                           expenses subsequently incurred by such indemnified
                           party in connection with the defense thereof (other
                           than reasonable costs of investigation) unless: (a)
                           the indemnified party shall have employed separate
                           counsel in connection with the assertion of legal
                           defenses in accordance with the proviso to the next
                           preceding sentence; (b) the indemnifying party shall
                           not have employed counsel satisfactory to the
                           indemnified party to represent the indemnified party
                           within a reasonable time; (c) the indemnifying party
                           and its counsel do not actively and vigorously pursue
                           the defense of such action; or (d) the indemnifying
                           party has authorized the employment of counsel for
                           the indemnified party at the expense of the
                           indemnifying party. No indemnifying party shall be
                           liable to an indemnified party for any settlement of
                           any action or claim without the consent of the
                           indemnifying party, and no indemnifying party may
                           unreasonably withhold its consent to any

                                       35
<PAGE>   36
         such settlement. No indemnifying party will consent to entry of any
         judgment or enter into any settlement which does not include as an
         unconditional term thereof the giving by the claimant or plaintiff to
         such indemnified party of a release from all liability with respect to
         such claim or litigation.

   16.14 Contribution.

         a)       If the indemnification provided for in Section 16.13(a) or (b)
                  is held by a court of competent jurisdiction to be unavailable
                  to a party to be indemnified with respect to any claims,
                  actions, demands, losses, damages, liabilities, costs or
                  expenses referred to therein, then each indemnifying party
                  under any such Section, in lieu of indemnifying such
                  indemnified party thereunder, hereby agrees to contribute to
                  the amount paid or payable by such indemnified party as a
                  result of such claims, actions, demands, losses, damages,
                  liabilities, costs or expenses in such proportion as is
                  appropriate to reflect the relative fault of the indemnifying
                  party on the one hand and of the indemnified party on the
                  other in connection with the statements or omissions which
                  resulted in such claims, actions, demands, losses, damages,
                  liabilities, costs or expense, as well as any other relevant
                  equitable considerations. The relative fault of the
                  indemnifying party and of the indemnified party shall be
                  determined by reference to, among other things, whether the
                  untrue or alleged untrue statement of a material fact or the
                  omission or alleged omission to state a material fact relates
                  to information supplied by the indemnifying party or by the
                  indemnified party and the parties' relative intent, knowledge,
                  access to information and opportunity to correct or prevent
                  such statement or omission. Notwithstanding the foregoing, the
                  amount any Holder shall be obligated to contribute pursuant to
                  this Section 16.14 shall be limited to an amount equal to the
                  per share public offering price (less any underwriting
                  discount and commissions) multiplied by the number of shares
                  of Registrable Securities sold by such Holder pursuant to the
                  registration statement which gives rise to such obligation to
                  contribute (less the aggregate amount of any damages which
                  such Holder has otherwise been required to pay in respect of
                  such claim, action, demand, loss, damage, liability, cost or
                  expense or any substantially similar claim, action, demand,
                  loss, damage, liability, cost or expense arising from the sale
                  of such Registrable Securities).

         b)       No person guilty of fraudulent misrepresentation (within the
                  meaning of Section 11(f) of the Securities Act) shall be
                  entitled to contribution pursuant to this Section 16.14 from
                  any person who was not guilty of such fraudulent
                  misrepresentation.

   16.15 Violation of Standstill Provisions -- Divestiture. In the event that
         Pearson, or any person acting in concert with Pearson, shall violate
         the warranty and representation set forth in Section 16.3(e) hereof, it
         shall immediately thereafter be required to divest itself of such
         number of shares of Uproar Stock as shall be necessary to reduce its
         holdings thereof to not more than 20% of the total number of shares of
         Uproar Stock

                                       36
<PAGE>   37
         then outstanding. The shares of Uproar Stock to be so divested shall
         not include any portion of the Shares which, at the time of such
         divestiture, shall be subject to the restrictions imposed by Section
         16.3 (c) or (d) hereof. If Pearson fails or refuses, for any reason, to
         undertake such divestiture within five (5) business days after its
         receipt of notice from Uproar demanding that it do so, and/or if having
         timely commenced such divestiture, Pearson fails to complete same
         within 30 days thereafter, Uproar shall, in either of such events, be
         entitled to commence judicial proceedings in the appropriate state or
         federal courts in the State of New York seeking specific performance of
         the provisions of this paragraph, and Pearson shall be obligated to pay
         all reasonable counsel fees and disbursements incurred by Uproar in
         connection therewith. Furthermore, Pearson shall not be entitled to
         vote any of the Shares on any matter that shall come before the holders
         of Uproar Shares for a vote at any time while Pearson's holdings of
         Uproar Stock shall exceed 20% of the total number of shares of Uproar
         Stock then outstanding. Anything contained in this Section 16.15 to the
         contrary notwithstanding, in the event that:

         a)       any person or entity acting solely or in concert with any
                  other person or entity (other than Pearson or any affiliate of
                  Pearson) shall acquire 20% or more of the then issued and
                  outstanding shares of Uproar Stock either in open market
                  transactions, or pursuant to any tender offer or similar
                  transaction which shall not be endorsed or approved by
                  Uproar's Board of Directors, the provisions of Sections
                  16.3(c), (d) and (e) of this Section shall thereupon be deemed
                  to have been terminated, but this Agreement shall otherwise
                  continue in full force and effect; and

         b)       any person or entity acting solely or in concert with any
                  other person or entity (other than Pearson or any affiliate of
                  Pearson) shall acquire 20% or more of the then issued and
                  outstanding shares of Uproar Stock from Uproar and/or any
                  affiliate of Uproar, or pursuant to any tender offer or
                  similar transaction which shall be endorsed or approved by
                  Uproar's Board of Directors, Pearson shall thereupon have the
                  right, but not the obligation, to terminate this Agreement. If
                  Pearson elects to exercise such right of termination, it shall
                  do so by giving not less than 90 days' prior written notice of
                  termination to Uproar.

   16.16 Stop Transfer Instructions; Restrictive Legend. Upon original issuance
         thereof, and until such time as the same is no longer required under
         this Agreement, and/or the applicable requirements of the applicable
         laws and regulations of each governmental authority having jurisdiction
         over the issuance, sale, transfer or other disposition of the Shares,

         a)       Uproar shall issue "stop transfer" instructions to the
                  transfer agent of the Uproar Stock, and such other
                  instructions as Uproar may deem advisable to prevent the sale,
                  assignment, transfer or other disposition of any of the
                  Shares;

                                       37
<PAGE>   38
         b)       any certificate or certificates evidencing Pearson's ownership
                  of the Shares (and all certificates issued in exchange
                  therefor or substitution thereof) shall bear the following
                  legend:

                  "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED OR OTHERWISE QUALIFIED FOR SALE BY THE HOLDER
                  HEREOF UNDER THE APPLICABLE LAWS AND/OR REGULATIONS OF ANY
                  GOVERNMENTAL AUTHORITY HAVING JURISDICTION WITH RESPECT
                  THERETO. SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE
                  ABSENCE OF SUCH REGISTRATION OR QUALIFICATION OR AN EXEMPTION
                  THEREFROM UNDER SAID LAWS OR REGULATIONS"

         and

         c)       in the event that the transfer agent of the Uproar Stock shall
                  fail or refuse for any reason to implement the "stop transfer"
                  instructions set forth in sub-section (a) hereof, or to place
                  the legend set forth in sub-section (b) hereof upon each of
                  the Global Certificates evidencing the Shares, Pearson shall
                  enter into an escrow agreement with Uproar and the Custodian
                  which shall provide that the Custodian shall hold all of the
                  Shares in accordance with, and subject to, the various
                  restrictions and limitations on transfer of the Shares imposed
                  by Section 16 of this Agreement.

17 Indemnification.

   17.1  Indemnification of Uproar by Pearson against Certain Liability.
         Pearson, at its own expense, shall indemnify, defend and hold harmless
         Uproar and its Affiliates and their officers, directors, employees and
         agents (collectively, the "Uproar Indemnitees"): (a) from and against
         all demands, claims, threatened claims, actions or causes of action,
         assessments, losses, damages, liabilities, costs and expenses,
         including without limitation, interest, penalties and reasonable
         outside attorneys' fees and expenses which shall be based upon a claim
         brought by a third party that (1) Uproar's use pursuant to this
         Agreement (including any advertising or promotional use of such
         materials) of the Licensed Marks in English speaking countries, the
         Game Show Formats, or other Pearson Materials in the Territory (without
         the addition of any Uproar Materials) when used by Uproar as
         contemplated in this Agreement infringes any copyright, trademark,
         trade secret, rights of publicity or privacy, or other proprietary
         right of any third party or is libelous or slanderous; (2) if true,
         would constitute a breach of any of Pearson's representations,
         warranties or agreements hereunder; (3) arises out of the improper use
         or transmission by Pearson of the User Information and/or Summarized
         User Data; (4) arises out of any Advertisement placed by Pearson on the
         Site; or (5) arises out of the negligence or willful misconduct of
         Pearson. Pearson shall have the right at all times, in its sole
         discretion,

                                       38
<PAGE>   39
         and at its sole cost, to retain or resume control of the conduct of the
         defense of any matter to which the foregoing indemnity applies; (b)
         from and against any tax liability of Pearson for which Uproar and/or
         any Affiliate of Uproar may have been determined to have had a
         withholding obligation as a consequence of the issuance pursuant hereto
         of Shares by Uproar including any interest and/or penalties relating
         thereto.

   17.2  Repair or Replacement of Licensed Game Show. If a court of competent
         jurisdiction imposes an injunction prohibiting Uproar from continued
         use of any Licensed Internet Game and/or Licensed Mark or portion
         thereof as a result of material provided by Pearson, Pearson shall at
         Pearson's expense and election and as approved by Uproar:

         a)       Procure for Uproar the right to continue to use the material
                  pursuant to this Agreement; or

         b)       Replace or modify the infringing material in the Licensed
                  Internet Game and/or Licensed Mark, as the case may be, to
                  make it non-infringing, provided that the modifications or
                  substitutions will not materially and adversely affect the
                  continued use or transmission of such Licensed Internet Game
                  on the Internet or lessen its utility to Uproar (both as
                  reasonably determined by Uproar); or

         c)       If Pearson is unable to comply with either paragraphs (a) or
                  (b) above within 90 days of the imposing of the injunction,
                  Uproar may, at its election, terminate this Agreement insofar
                  as it relates to such Game, in which event Uproar shall be
                  relieved of its obligation to pay any future Guaranteed
                  Minimums for such Game under Section 14.3 above (or, if such
                  Game is enjoined in less than all applicable jurisdictions,
                  the Guaranteed Minimum for such Game shall be reduced
                  appropriately by agreement between the parties to reflect the
                  extent to which such Game is enjoined). If, subsequent to such
                  termination but during the term of this Agreement, the
                  aforementioned injunction is removed or the use of any
                  enjoined Licensed Internet Game and/or Licensed Mark or
                  portion thereof by Uproar is otherwise no longer prohibited,
                  Pearson shall offer to Uproar a license for such Licensed
                  Internet Game and/or Licensed Mark or portion thereof upon the
                  same terms and conditions as applied thereto under this
                  Agreement and for such period of time as, under this
                  Agreement, Uproar was prohibited from the use thereof. Uproar
                  shall have 30 days to accept or decline such offer.

         d)       If all Game Show Formats offered under this Agreement in the
                  United States are enjoined at any time before 30th September
                  2001, then Pearson shall return to Uproar for cancellation the
                  pro-rata amount of Pearson's Securities equal to the product
                  derived by multiplying the total number of shares by a
                  fraction, the numerator of which is the number of days
                  remaining between the date on which all the Game Show Formats
                  were enjoined and 30th September 2001, and the denominator of
                  which is 972 (being the total number of days in the Initial
                  Term under the 1999 Agreement).

                                       39
<PAGE>   40
   17.3  Indemnification of Pearson by Uproar against Certain Liability. Uproar,
         at its own expense, shall indemnify, defend and hold harmless Pearson,
         its parent, subsidiaries and Affiliates, and its officers, directors,
         employees and agents (collectively, the "Pearson Indemnitees"), from
         and against all losses which shall be based upon a claim or threatened
         claim that (1) Uproar's or Pearson's use of any of the materials or
         services supplied or obtained by Uproar including, without limitation,
         the Site, the Software, and the technology used to develop and maintain
         the Site and used by Uproar as contemplated in this Agreement infringes
         any copyright, trademark, trade secret, rights of publicity or privacy,
         or other proprietary right of any third party or is libelous or
         slanderous, (2) if true, would constitute a breach of any of Uproar
         representations, warranties or agreements hereunder; (3) arises out of
         the negligence or willful misconduct of Uproar; (4) arises out of a
         sweepstakes conducted by Uproar or a prize awarded by Uproar in
         connection with any Licensed Internet Game; (5) arises out of any
         activity of Uproar in relation to the Licensed Internet Games or the
         Site (including, without limitation, Uproar's collection of User
         Information or improper use or transmission of User Information and/or
         Summarized User Data); (6) arises out of any hyperlink, advertisement,
         or third-party material placed on the Site by Uproar; (7) arises out of
         the improper use, distribution or transfer of the Game Show Formats or
         other Pearson Materials by Uproar; or (8) any misuse of the Licensed
         Internet Games or the Site by any User of which Uproar had actual
         knowledge. Uproar shall have the right at all times, in its sole
         discretion and its sole cost, to retain or resume control of the
         conduct of the defense of any matter to which the foregoing indemnity
         applies.

18 Limitation of Liability.

   18.1  Limitation of Liability. EXCEPT IN RELATION TO ANY BREACH OF THE
         WARRANTIES SET FORTH IN SECTION 10.2 HEREUNDER, NEITHER PARTY SHALL BE
         LIABLE TO THE OTHER FOR INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY
         DAMAGES (EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
         DAMAGES) SUCH AS, BUT NOT LIMITED TO, LOSS OF REVENUE OR ANTICIPATED
         PROFITS OR LOST BUSINESS. WITHOUT LIMITING THE GENERALITY OF THE
         FOREGOING, UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE LIABLE TO THE
         OTHER FOR ANY CLAIM ARISING OUT OF ANY DOWNLOADING OR OTHER USE OF ANY
         OF THE LICENSED INTERNET GAMES BY USERS OF THE LICENSED INTERNET GAMES.

   18.2  Disclaimer. EXCEPT AS SET FORTH HEREIN, BOTH PARTIES HEREBY
         SPECIFICALLY DISCLAIM ANY REPRESENTATIONS REGARDING THE LICENSED
         INTERNET GAMES, INCLUDING ANY IMPLIED REPRESENTATION REGARDING
         MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND IMPLIED
         WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE.
         WITHOUT

                                       40
<PAGE>   41
         LIMITING THE FOREGOING, AND EXCEPT AS OTHERWISE AGREED, NEITHER PARTY
         MAKES ANY WARRANTY THAT THE MATERIALS IT PROVIDES WILL BE ERROR-FREE OR
         THAT USER ACCESS THERETO WILL BE UNINTERRUPTED.

   18.3  Insurance. Uproar shall obtain all necessary and adequate insurance
         with respect to production, transmission, and hosting of the Licensed
         Internet Games, including without limitation, liability insurance,
         workers' compensation and errors and omissions insurance in amounts and
         with carriers reasonably approved by Pearson, each with limits of at
         least one million ($1,000,000.00) dollars on account of any one
         occurrence and one million ($1,000,000.00) dollar for each occurrence
         of property damage. Pearson will be named an additional insured in all
         such insurance policies and copies of such policies and certificates of
         insurance (or Binders), shall be delivered to Pearson within ten (10)
         days after issuance. Said certificates will include provisions whereby
         fifteen (15) days notice must be received by Pearson prior to coverage
         cancellation by either Uproar or Insurer, or non-payment of premium by
         Uproar.

19 Confidentiality.

   19.1  Confidentiality Obligations. Each party acknowledges that it shall
         receive Confidential Information (as hereinafter defined) of the other
         party relating to its technical, marketing, product and/or business
         affairs. During the term of this Agreement and for a period of one (1)
         year thereafter, all Confidential Information of the other party shall
         be held in strict confidence and shall not be disclosed or used without
         the express written consent of the other party, except as may be
         required by law. Each party shall use reasonable measures and make
         reasonable efforts to provide protection for the other party's
         Confidential Information including measures at least as strict as such
         party uses to protect its own Confidential Information.

   19.2  Confidentiality of this Transaction. Except as may be required by law,
         regulation or rule, neither Party shall make any announcement or other
         disclosure to any third party of the transaction contemplated by the
         Agreement or any of the details of any of Uproar's plans for the
         Licensed Internet Games, the Games, or the Local Television Shows or
         any related products or services, until such plans have actually been
         implemented, except with the prior written consent of the other party.
         The form, substance and timing of any announcement referring directly
         or indirectly to any of the Licensed Internet Games, the Local
         Television Shows, or any related products or services, until such plans
         have actually been implemented, except with the prior written consent
         of the other party. The form, substance and timing of any announcement
         referring directly or indirectly to any of the Licensed Internet Games,
         or the Games, by either party shall be subject to the prior written
         approval of both parties, such consent not to be unreasonably withheld.

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<PAGE>   42
   19.3  Confidential Information Defined. Confidential Information shall mean
         and include the Production and Marketing Information of either party
         and any information relating to or disclosed in the course of the
         performance of this Agreement except for any information that (i) is or
         becomes generally available to the public without breach of this
         Agreement; (ii) is in the possession of a party prior to its disclosure
         by the other party; (iii) becomes available from a third party not in
         breach of any obligation of confidentiality to which such third party
         is subject; (iv) was independently developed by a party; and (v) must
         be disclosed due to judicial or governmental requirement or order,
         provided that, the party in receipt of the requirement or order has
         given the other party notice of such requirement or order to permit the
         other party of reasonable opportunity to object to the requirement or
         order or seek a protective order or other appropriate remedy.

   19.4  Public Information. Each party will submit to the other party, for its
         prior written approval, which shall not be unreasonably withheld or
         delayed, any public documents including without limitation, financial
         documents, press releases or marketing, advertising or promotional
         materials related to the activities described herein and/or referencing
         the other party and/or its trade names, trademarks and service marks.
         Notwithstanding the foregoing, either party may issue such documents as
         required by law or regulation (and only to the extent that such
         information is required by law or regulation) without the consent of
         the other party.

   19.5  User Information.

         a)       With respect to each of the Licensed Internet Games, Uproar
                  will create a User registration page, which page will include
                  optional identification and demographic questions for each
                  person who visits the Web page containing a Licensed Internet
                  Game (a "User"). The registration page will contain an
                  acknowledgment that information obtained as a result of such
                  questions will be shared by Uproar with Pearson only and
                  neither of them will sell or otherwise disseminate the user's
                  name or address to any unaffiliated third party. All
                  information collected will be used by Uproar and Pearson
                  solely for their own internal use, except that Pearson and its
                  Affiliates and local television licensees may e-mail Users who
                  do not object to receiving information about the Games and
                  related products.

         b)       It is understood and agreed that Uproar and Pearson will not
                  sell or otherwise disseminate any User's name, and that no
                  User's name or identifying information will be retained by
                  Uproar or Pearson if the User so requests. Pearson will adhere
                  and be bound by the obligations, if any, set forth in the
                  Uproar privacy statement published on the URL uproar.com.
                  Uproar shall use reasonable efforts to post site-specific
                  privacy and data collection policies on each of the different
                  national versions of the Site (in the United States, the
                  United Kingdom, Canada and Australia).

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<PAGE>   43
         c)       Uproar's data collection policy for each Site shall include
                  the creation and provision of notice to Users describing any
                  demographic and/or tracking information that is being
                  collected (providing Users the option of withholding or
                  correcting such data). Uproar shall provide the name and
                  address of a contact person to whom inquiries or complaints
                  about data collection may be addressed, and shall store all
                  personally identifiable information off-line in a secure
                  environment.

         d)       Any User registration name, and/or demographic information
                  collected in connection with the local Licensed Internet Games
                  shall be the exclusive property of Uproar.

         e)       Summarized User Data from all parts of the Site (including
                  data that compares traffic on the Licensed Internet Games to
                  traffic on other games on the Site) will be shared quarterly
                  with Pearson in a form set forth in Exhibit G.

20 General Provision.

   20.1  Ownership of Certain Intellectual Property.

         a)       Pearson acknowledges and agrees that Uproar has and will
                  retain all right, title, interest and ownership in and to all
                  software developed by Uproar and used in the Licensed Internet
                  Games (the "Software"). Pearson further acknowledges and
                  agrees that the source code for the Software constitutes
                  Confidential Information (as defined in Section 19.3) of
                  Uproar whether or not any portion thereof is or may be the
                  subject of a valid copyright or patent.

         b)       Computer Programming. Subject to Section 20.1(a) above, all
                  computer programming files developed or prepared by Uproar in
                  connection with the Licensed Internet Games are the exclusive
                  property of Uproar (the "Code"). The parties specifically
                  acknowledge and agree that Uproar owns all rights with respect
                  to the domain name uproar.com.

         c)       Uproar acknowledges and agrees that Pearson owns and will
                  retain all right, title, interest and ownership in and to the
                  Game Show Formats, the Games, the U.S. Local Television Shows
                  and all other Pearson Materials.

         d)       Reversion of Rights. Uproar acknowledges and agrees that
                  except for the Software and the Code, all artistic, editorial
                  and design elements (including without limitation "look and
                  feel") and format-specific questions created for the Licensed
                  Internet Games which are based on, specific to, or derivative
                  or transformative works of, the Game Show Formats (the "Game
                  Content"), are and shall remain the property of Pearson. All
                  rights, title and interest therein shall revert to Pearson
                  upon termination or expiration of this license.

                                       43
<PAGE>   44
         e)       Intentionally Deleted

         f)       Transition Obligation. Upon expiration or any termination of
                  this Agreement by either party, Uproar shall provide all
                  reasonably requested support in the transitioning of the
                  hosting services to Pearson or a third party vendor selected
                  by Pearson in its sole discretion, including without
                  limitation, the transfer and any necessary conversion of all
                  software and Code, and consulting regarding technology hosting
                  requirements. Pearson shall pay Uproar for such services at
                  its then-current rates and shall pay all expenses incurred by
                  Uproar in supplying such services.

   20.2  Entire Agreement / Termination of 1999 Agreement.

         a)       Subject to Section 20.2(b) below, this Agreement together with
                  all Exhibits, Specifications and attachments, if any, which
                  are incorporated herein by reference, is the sole and entire
                  agreement between the parties relating to the subject matter
                  hereof. This Agreement supersedes all prior understandings,
                  agreements and documentation relating to such matter. No
                  supplement, modification, or amendment of this Agreement shall
                  be binding, unless executed in writing by both parties. In the
                  event of a conflict between provisions of this Agreement and
                  any attached Exhibits, Specifications or other material, this
                  Agreement shall take precedence.

         b)       This Agreement amends and restates the 1999 Agreement such
                  that from the date of execution of this Agreement, to the
                  extent that the provisions of this Agreement differ from the
                  1999 Agreement, the provisions of this Agreement shall prevail
                  provided that such amendment and restatement shall not affect
                  any rights (including without limitation rights of action) of
                  a party arising prior to the date of such amendment and
                  restatement .

   20.3  Assignment. Each party may assign this Agreement or all or any part of
         its rights hereunder to an Affiliate or to any entity that succeeds to
         all or substantially all of its capital stock, or that is otherwise its
         successor in interest generally, and this Agreement shall inure to the
         benefit of, and be binding upon such assignee or successor in interest,
         provided however that in the event that any such assignee of Uproar is
         divested by Uproar, this Agreement shall be re-assigned, prior to such
         divestment, to Uproar or any of its other Affiliates. Pearson shall,
         except as set forth above, have the right to terminate this Agreement
         with thirty (30) days notice upon any change in control of Uproar
         (whether by merger, stock transfer or otherwise) provided that Pearson
         shall notify Uproar of its intention to terminate no later than ninety
         (90) days after the date on which such change of control takes effect.
         For purposes of the preceding sentence, a "change in control" shall
         be deemed to occur if: (i) any "person" (as such term is defined in the
         Securities Exchange Act of 1934, as amended) other than Uproar or any
         of its subsidiaries or a trustee or any fiduciary

                                       44
<PAGE>   45
         holding securities under an employee benefit plan of Uproar or any of
         its subsidiaries, acting singly or in concert with one or more other
         persons, acquires securities representing 50% or more of the combined
         voting power of Uproar's then outstanding securities; (ii) during any
         one year period, individuals who at the beginning of such period
         constitute the Board of Directors of Uproar and any new director whose
         election by the Board of Directors or nomination for election by
         Uproar's shareholders was approved by a vote of at least a majority of
         the directors then still in office who either were directors at the
         beginning of the period or whose election or nomination for election
         was previously so approved, cease for any reason to constitute a
         majority thereof; (iii) the shareholders of Uproar approve a merger or
         consolidation of Uproar with any other corporation, other than (a) a
         merger or consolidation which would result in the voting securities of
         Uproar outstanding immediately prior thereto continuing to represent,
         in combination with the ownership of any trustee or other fiduciary
         holding securities under an employee benefit plan of Uproar or any of
         its subsidiaries, at least 50% of the combined voting power of the
         voting securities of Uproar or such surviving entity outstanding
         immediately after such merger or consolidation, or (b) a merger or
         consolidation effected to implement a recapitalization of Uproar (or
         similar transaction) in which no person acquires more than 50% of the
         combined voting power of Uproar's then outstanding securities; or (iv)
         the shareholders approve a plan of complete liquidation of Uproar or an
         agreement for the sale or disposition by Uproar of all or substantially
         all of its assets.

   20.4  Waiver. No term or provision of this Agreement shall be deemed waived
         and no breach excused unless such waiver or consent is in writing and
         signed by the party claimed to have waived or consented. A waiver by
         either of the parties of any of the covenants, conditions or agreements
         to be performed by the other hereunder shall not be construed to be a
         waiver of any succeeding breach thereof.

   20.5  Survival. The following provisions of this Agreement shall survive the
         completion, expiration, termination or cancellation of this Agreement:
         Sections 7, 10.1-10.7, 11, 14, 15, 16, 17, 18 19.1-19.4, 19.5(b),
         19.5(d), and 20.

   20.6  Force Majeure. Neither party shall be liable for delay or failure in
         the performance of its obligations hereunder if such delay or failure
         arises from the occurrence of events beyond the reasonable control of
         such party, which events could not have been prevented by the exercise
         of due care and could not have been foreseen at the time of entering
         into this Agreement, such as fire, explosion, flood, storm, acts of
         God, war, embargo, or riot, provided that the party suffering the delay
         or failure and acts diligently to remedy the cause of such delay or
         failure.

   20.7  No Joint Venture. Nothing contained herein will be construed as
         creating any partnership, joint venture or other form of joint
         enterprise between the parties.

   20.8  Independent Contractor. The parties acknowledge that Uproar will
         perform its obligations hereunder as an independent contractor. The
         manner and method of

                                       45
<PAGE>   46
         performing such obligations will be under Uproar's sole control and
         discretion. It is also expressly understood that Uproar employees and
         agents, if any, are not Pearson's employees or agents, and have no
         authority to bind Pearson by contract or otherwise.

   20.9  Notice. All notices and other communications required or permitted
         under this Agreement shall be deemed given when delivered personally,
         or one day after being deposited with Federal Express or other
         recognized overnight courier service, or five (5) days after being
         mailed by registered or certified mail, postage prepaid, addressed as
         follows, or to such other address as each party may designate in
         writing:

         If to Uproar:

         General Counsel
         Uproar Inc.
         240 W.35th Street
         New York, New York 10005

         If to Pearson:

         President
         Pearson Television Enterprises
         1330 Avenue of the Americas
         New York, New York 10019

         With a copy to:

         EVP Business & Legal Affairs
         Pearson Television Enterprises
         1 Stephen St
         London W1P 1PJ
         United Kingdom

   20.10 Recruitment. During the term of this Agreement and for eighteen (18)
         months thereafter, each party agrees that neither it nor any of its
         Affiliates shall, without the other party's written consent (which
         shall not be unreasonably withheld), employ or solicit for employment,
         or cause any third party to employ or solicit for employment, any
         employee of the other party or its Affiliates who is, or at any time
         during the preceding year was, involved in projects pursuant to this
         Agreement.

   20.11 Intentionally Deleted

                                       46
<PAGE>   47
20.12    Additional Rights of Pearson. In the event that Uproar develops a game
         site for any content aggregator, whether such a site is located on the
         Internet or on any other computer network (such as AOL and Internet
         search engines or portals), Uproar shall make reasonable efforts to
         include the Licensed Internet Games on such site no later than and on
         terms no less favorable than those made available for any other
         computer games.

20.13    Applicable Law; Jurisdiction. This Agreement will be governed by the
         laws of the State of New York without regard to its conflict of laws
         principles. Both parties consent and agree that all legal proceedings
         relating to the subject matter of this Agreement shall be maintained in
         courts sitting within the State of New York and both parties consent
         and agree that jurisdiction and venue for such proceedings shall be
         exclusively with such courts.

20.14    Counterparts. This Agreement may be executed in any number of
         counterparts, each of which shall be deemed an original but all of
         which together shall constitute a single instrument.

20.15    Facsimile Execution. This Agreement may be executed by facsimile
         signatures by either party hereto and such signature shall be deemed
         binding for all purposes hereof, without delivery of an original
         signature being thereafter required.

20.16    Severability. If any provision of this Agreement is found illegal or
         unenforceable, it will be enforced to the maximum extent permissible,
         and the legality and enforceability of the other provisions of this
         Agreement will not be affected.

20.17    Headings Not Controlling. The headings in this Agreement are for
         reference purposes only and shall not be construed as a part of this
         Agreement.

IN WITNESS WHEREOF the parties have executed this Agreement by their duly
authorized representatives.

Pearson Television Holdings, Inc.             Uproar Inc.

By:__________________________________         By:______________________________
Name:________________________________         Name:____________________________
Title:_________________________________       Title: __________________________
Date:_________________________________        Date: ___________________________

                                       47
<PAGE>   48
Pearson Television Limited

By:____________________________________
Name:__________________________________
Title:_________________________________
Date:__________________________________

Pearson Television North America, Inc.

By:____________________________________
Name:__________________________________
Title:_________________________________
Date:__________________________________

Pearson Television, Inc.

By:____________________________________
Name:__________________________________
Title:_________________________________
Date:__________________________________

Pearson Television Netherlands

By:____________________________________
Name:__________________________________
Title:_________________________________
Date:__________________________________

                                       48
<PAGE>   49
                                    EXHIBIT A

                            GAME PRODUCTION SCHEDULE

<TABLE>
<CAPTION>
DEADLINE                                            DESCRIPTION
------------------------------------------------    -----------------------------------------------------------
<S>                                                 <C>
First Broadcast of To Tell the Truth Gameshow on    To Tell the Truth Single Player Internet Version Launch (US
US syndication TV (est 30 September 2000            Version)

30th October 2000                                   To Tell the Truth Multi Player Internet Version Launch (US
                                                    Version)

28th February 2001                                  Match Game Multi Player Internet Version Launch (US Version)

1st January 2001                                    Family Fortunes Multi Player Internet Version Launch (UK
                                                    Version)

1st March 2001                                      To Tell the Truth Multi Player Internet Version Launch (UK
                                                    Version)

1st January 2001                                    100% Multi Player Internet Version Launch (UK Version)

1st June 2001                                       Blankety Blanks Multi Player Internet Version Launch (UK
                                                    Version)
</TABLE>

                                       49
<PAGE>   50
                                    EXHIBIT B

                               THE LICENSED MARKS

                         FAMILY FEUD (U.S. Registration)
                                 FAMILY FORTUNES
                         MATCH GAME (U.S. Registration)
                             100% (U.S. Application)
                      TO TELL THE TRUTH (U.S. Registration)
                       BLANKETY BLANK (U.K. Registration)

                                       50
<PAGE>   51
                                    EXHIBIT C

                             UPROAR SERVER STANDARDS

1. UPROAR games are hosted on Servers capable of running the Internet Protocol,
   TCP/IP.

2. Servers are connected to the Internet 24 hours a day, seven days a week.

3. Internet connections will be only made via Internet Service Providers who can
   provide a minimum average uptime of 99%.

4. A Cisco Local Director or similar such device that provides multiple
   fail-over and load balancing is used to connect Servers to the Internet.

5. All Servers have either remote reboot or auto-reboot capabilities.

6. Player account information is stored on RAID-5 or similar redundant disk
   storage devices.

7. Servers are physically located in a facility with air conditioning and at
   least temporary back-up power.

                                       51
<PAGE>   52
                                    EXHIBIT D

Uproar (Holdings) Limited was not licensed to operate as a foreign corporation
in any jurisdictions.

                                       52
<PAGE>   53
                                    EXHIBIT E

An Employee Stock Ownership Plan (the "Plan") was established by resolutions
adopted by the Board of Directors of Uproar (Holdings) Limited on July 27, 1997.
Pursuant to the Plan, up to 25,000 ordinary shares, par value (pound)1.00 each,
of Uproar (Holdings) Limited could be issued. At the date of execution of the
1999 Agreement, no shares had been issued under the Plan, and one option to
purchase 333 shares at an exercise price of (pound)66.00 was outstanding.

                                       53
<PAGE>   54
                                    EXHIBIT F

At the date of execution of the 1999 Agreement, Uproar (Holdings) Ltd. had the
following subsidiaries:

1.       Uproar Services Limited (Ireland) - capitalization IR(pound)279, 365
2.       Uproar KFT. (Hungary) - capitalization HUF 2,000,000
3.       Uproar, Inc. (United States) - capitalization $100
4.       Uproar Limited (United Kingdom) - capitalization (pound)1000

                                       54
<PAGE>   55
                                    EXHIBIT G

<TABLE>
<CAPTION>
                                                                   FAMILY FEUD                 100%                   BINGOBLITZ
---------------------------------------------------   ------------------------        -------------     ------------------------
<S>                                                   <C>                             <C>               <C>
Ad Imps                                                            407,782,266           60,408,489                  296,004,558
Percentage of Total Impressions                                            19%                   3%                          13%
Ad Clicks                                                            9,571,938            1,132,507                    2,711,041
Click Through Rate                                                       2.35%                1.87%                        0.92%
Average Time Spent in Game                            This data is not tracked        1,203 seconds     This data is not tracked
Unique Registered Users for the game                                   329,329              847,770                    1,042,844
Unique Registered Users for all games for the site*                    958,641            2,246,233                    2,246,233
Percentage of Total Active Reg Users                                    34.35%               37.74%                       46.43%
</TABLE>

                                       55<PAGE>   1

                                                                    EXHIBIT 10.6

THIS LEASE made this _______ day of February, 1995.

BETWEEN:

               ALCONE HOLDINGS LTD.
               a company Incorporated under the laws of the Province of
               Ontario, hereinafter called the "Landlord" of the FIRST PART.

               - AND -

               THORNHILL BAKERY LIMITED
               a company Incorporated under the laws of the Province of
               Ontario, hereinafter called the "Tenant" of the SECOND PART.

            WHEREAS the Landlord is the owner of a property and building thereon
located at the municipal address of 350 Creditstone Road, City of Vaughan in the
Province of Ontario (hereinafter referred to inclusively as the "Building") and
certain premises thereof being Unit #D, consisting of ground floor office and
plant area representing approximately thirty-four thousand (34,000) square feet
as set out in red on Schedule "A" being a plan of the first floor of the
Building (hereinafter said Unit being referred to as "Unit D", and said Unit D
along with additional premises which the Tenant may lease hereunder being
referred to as the "Premises");

            NOW THEREFORE WITNESSETH that in consideration of the promises and
mutual covenants and agreements herein contained the parties hereto agree as
follows:

SECTION 1.00 - LEASE OF PREMISES

1.01 DEMISE - NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of
the rents reserved hereunder and the terms, covenants, obligations and
stipulations, conditions and agreements contained herein, the Landlord hereby
leases the Premises to the Tenant and the Tenant hereby leases the Premises from
the Landlord (hereinafter referred to as the "Lease").

1.02 TERM - The Tenant shall have and hold the Premises for and during a term of
ten (10) years commencing on the 1st day of March, 1995, (hereinafter called the
Commencement Date) and thenceforth next ensuing and to be fully completed and
ended on the 28th day of February, 2005, as may be extended by and subject to
any rights of renewal hereunder (hereinafter referred to as the "Term").

1.03 OPTION TO RENEW - The Tenant shall have the option to renew the Lease for
two (2) further periods of five (5) years at a rental rate to be negotiated at
then market value for premises of similar size, usage and nature, provided that
the Tenant gives notice to the Landlord, in writing, of ifs desire to exercise
the said option at least six (6) months prior to the end of the Term. In the
event that an agreement is not reached as aforesaid, the rental rate shall be
set by arbitration in accordance with the Arbitration Act of Ontario, which
determination shall be binding on both parties. The arbitration committee shall
consist of three (3) arbitrators, with one (1) each to be appointed by the
Landlord and the Tenant, and the third to be agreed upon by both arbitrators.
There shall be no further right of renewal.

1.04 ACCESS PRIOR TO COMMENCEMENT DATE - The Tenant shall be entitled to access
to Premises from the 15th of January, 1995 (hereafter referred to as the
"Occupancy Date"), provided Premises is demised and available for occupancy, and
with occupancy prior to the Commencement Date to be rent free. Should the Tenant
require possession eerier than the Occupancy Date, the parties agree that the
Commencement Date may be adjusted to an earlier date.

                                      - 1 -
<PAGE>   2

1.05 PRO-RATED RENT - The Tenant shall pay all rent due hereunder calculated on
a per diem basis, from the Commencement date, determined in accordance with the
foregoing and following, if the Commencement Date is not the first day of a
month to the first day of the month next following, on the Commencement Date.

1.06 RIGHT OF FIRST REFUSAL - The Tenant shall have a right of first refusal to
lease additional space to the west of Unit D in the amount of twenty-three
thousand (23,000) square feet. If and when such space becomes available the
Tenant shall have the right to acquire same at the fair market rent of similar
space at the time it becomes available. The term applicable to such space shall
coincide with the balance of the Term left on the lease of Unit D and shall
contain the same options of renewal as contained In that lease. If the said
additional space does not become available within four and a half years of the
start of the lease of Unit D, then the Tenant shall have an option exercisable
within the first five (5) years of the term of the lease of Unit D, to lease
alternative adjacent premises to the immediate east of Unit D, consisting of
approximately eleven thousand (11,000) square feet exclusive of office and
showroom space (hereinafter referred to as the "Eastern Space"), exercisable by
notice in writing from the Tenant no later than six (6) months prior to the end
of the five (5) year option period. The lease of the Eastern Space would be at
the fair market rent of similar space at the time of exercise of such option and
would be for a five (5) year term to coincide with the balance of the term of
the premises (Unit D) and shall contain a right of further renewal for two (2)
more five year terms exercisable in tandem with the option to renew on the
premises (Unit D) and upon the same rental terms as established in Section 1.03
herein. In the event that the Landlord does not or cannot grant to the Tenant a
lease to the Eastern Space in accordance with this option, then the Tenant shall
be permitted, at its option, to terminate its lease of Unit D at any time,
provided the Tenant gives at least six (6) months' advance written notice of
such termination.

SECTION 2.00 - RENT

2.01 BASE RENT - From and after the Commencement Date the Tenant shall pay to
the Landlord in lawful money of Canada, without deduction, abatement or set-off
whatsoever, an annual net rent (hereafter referred to as the "Base Rent") as
follows,

            (a)   From March 1st, 1995 to February 28th, 1996, the annual net
                  rental shall be the sum of two dollars and seventy-five cents
                  ($2.75) per square foot per annum, being determined as
                  ninety-three thousand five hundred dollars ($93,500.00),
                  payable in equal monthly instalments of seven thousand seven
                  hundred and ninety-one dollars and sixty-six cents
                  ($7,791.68), plus G.S.T.;

            (b)   From March 1st, 1996 to February 29th, 1997, the annual net
                  rental shall be the sum of three dollars ($3.00) per square
                  foot per annum, being determined as one hundred and two
                  thousand dollars ($102,000.00), payable in equal monthly
                  instalments of eight thousand five hundred dollars
                  ($8,500.00), plus G.S.T.;

            (c)   From March lst, 1997 to February 28th, 1998, the annual net
                  rental shall be the sum of three dollars and twenty-five cents
                  ($3.25) per square foot per annum, being determined as one
                  hundred and ten thousand five hundred dollars ($110,500.00),
                  payable in equal monthly instalments of nine thousand two
                  hundred and eight dollars and thirty-three cents ($9,208.33),
                  plus G.S.T.;

            (d)   From March 1st, 1998 to February 28th, 1999, the annual net
                  rental shall be the sum of three dollars and seventy-five
                  cents ($3.75) per square foot per annum, being determined as
                  one hundred and twenty-seven thousand five hundred dollars

                                      - 2 -
<PAGE>   3

                  ($127,500.00). payable in equal monthly instalments of ten
                  thousand six hundred and twenty-five dollars ($10,625.00),
                  plus G.S.T.;

            (e)   From March 1st, 1999 to February 29th, 2000, the annual net
                  rental shall be the sum of four dollars ($4.00) per square
                  foot per annum, being determined as one hundred and thirty-six
                  thousand dollars ($136,000.00), payable in equal monthly
                  instalments of eleven thousand three hundred and thirty-three
                  dollars and thirty-three cents ($11,333.33), plus G.S.T.;

            (f)   From March 1st, 2000 to February 28th. 2001, the annual net
                  rental shall be the sum of four dollars and fifty cents
                  ($4.50) per square foot per annum, being determined as one
                  hundred and fifty-three thousand dollars ($153,000.00),
                  payable in equal monthly instalments of twelve thousand seven
                  hundred and fifty dollars ($12,750.00), plus G.S.T.;

            (g)   From March 1st, 2001 to February 28th, 2002, the annual net
                  rental shall be the sum of four dollars and fifty cents
                  ($4.50) per square foot per annum, being determined as one
                  hundred and fifty-three thousand dollars ($153,000.00),
                  payable in equal monthly instalments of twelve thousand seven
                  hundred and fifty dollars ($12,750.00), plus G.S.T.;

            (h)   From March 1st, 2002 to February 28th, 2003, the annual net
                  rental shall be the sum of four dollars and fifty cents
                  ($4.50) per square foot per annum, being determined as one
                  hundred and fifty-three thousand dollars ($153,000.00),
                  payable in equal monthly instalments of twelve thousand seven
                  hundred and fifty dollars ($12,750.00), plus G.S.T.;

            (i)   From March 1st, 2003 to February 29th, 2004, the annual net
                  rental shall be the sum of four dollars and fifty cents
                  ($4.50) per square toot per annum, being determined as one
                  hundred and fifty-three thousand dollars ($153,000.00),
                  payable in equal monthly instalments of twelve thousand seven
                  hundred and fifty dollars ($12,750.00), plus G.S.T.;

            (j)   From March 1st, 2004 to February 28th, 2005, the annual net
                  rental shall be the sum of four dollars and fifty cents
                  ($4.50) per square foot per annum, being determined as one
                  hundred and fifty-three thousand dollars ($153,000.00),
                  payable in equal monthly instalments of twelve thousand seven
                  hundred and fifty dollars ($12,750.00), plus G.S.T.

2.02 ADDITIONAL RENT - Tenant acknowledges that this is a net lease carefree of
all expenses to the Landlord, and the Tenant therefore covenants to be
responsible and pay for, and of which sums the Landlord shall be entitled to
charge to the Tenant, a monthly fee which shall Include the following:

            (i)   water and sewer charges (unless separately metered); all real
                  estate taxes; outside maintenance including driveways,
                  trucking and parking areas; lawn and shrubbery maintenance;
                  snow removal and fire insurance premiums; and any other
                  expenses of whatever nature traceable to the Tenant's use
                  and/or occupation of the Premises including but not limited to
                  any and all utility charges (hydro and gas), telephone
                  charges, business taxes, local improvement charges, and
                  heating, ventilation and air conditioning, to the extent such
                  are not separately metered and/or assessed; and,

                                      - 3 -
<PAGE>   4

            (ii)  a reasonable apportionment of expenses incurred in managing,
                  maintaining and insuring the Building and for structural and
                  common area maintenance thereof, along with the Landlord's
                  administration charge of fifteen percent (15%) of all such
                  expenses;

as apportioned to the Tenant according to the proportion the square footage of
the Premises bears to the square footage of the Building, all of which sums
(hereafter referred to as "Additional Rent") including G.S.T. thereon shall be
estimated by the Landlord for each year of the Term with notice thereof to be
provided to the Tenant by 31st of December of the preceding year of the Term
(except for the first year) and one-twelfth (1/12) of such estimate shall be
payable by the Tenant as Additional Rent every month during a year of the Term;
the Landlord shall reconcile the actual expenses compared to such estimated
expenses by the 31st of March of the year following a year of the Term, shall
provide such reconciliation to the Tenant, and shall either demand from the
Tenant any underpayment which shall be payable immediately upon notice thereof
or return to the Tenant any overpayment; and the Landlord, in addition to any
other rights, shall have the same remedies and may take the same steps for the
recovery of such sums as rent in arrears under the terms of this Lease. For the
first year of the Term the estimated annual Additional Rent shall be the sum of
sixty-six thousand and three hundred dollars ($68,300.00) being a monthly
payment of five thousand two hundred and twenty-five dollars ($5,525.00), plus
G.S.T., where the Landlord warrants and represents that for the first year of
the Term such Additional Rent shall not exceed the aforementioned estimate and
such Additional Rent shall be adjusted once the Tenant receives its own water
meter.

2.03 PREPAID RENT - it is acknowledged that the Tenant has paid the sum of
thirty-three thousand eight hundred and three dollars and eight cents
($33,803.08) to be applied towards payment of the first and last month's Base
Rent and Additional Rent for the Term herein, (where Additional Rent for the
last month of the Term has been estimated as five thousand five hundred and
twenty-five dollars ($5,525.00), plus G.S.T), including G.S.T. on such sums.
Last month Feb. 2005 $16,901.54

2.04 PAYMENT DATE - The Tenant is to pay Base Rent and Additional Rent on the
first day of each month during the Term.

2.05 POST DATED PAYMENTS - The Tenant is to provide in advance twelve (12)
post-dated cheques for every month for Base Rent and Additional Rent for a year
of the Term no later than March 1st of every year of the Term.

2.06 RENT FREE PERIODS - Notwithstanding the aforementioned, the Landlord agrees
to provide to the Tenant four (4) months during which Base Rent is not payable,
being the months of March, April, May and June of 1995, provided during such
period the Tenant shall remain responsible for Additional Rent, notification of
all proper authorities as to utility hookup and payment for utility charges as
separately metered, business taxes, and ail other responsibilities hereunder
this Lease.

2.07 FITTINGS, FIXTURES & PARTITIONS - Subject to the terms of this Lease and to
the written approval of the Landlord, which approval shall not be arbitrarily
withheld, the Tenant may, at its own expense, install any fittings, fixtures and
partitions that may be necessary for the operation of its business, from time to
time during the Term. Upon the date of this Lease the Landlord hereby approves
of the Tenant's installation of fittings, fixtures and partitions, installed to
date subject to inspection thereof by the Landlord's expert to determine
compliance of the Tenant's installations with applicable laws, rules and
regulations governing same, for which any non-compliance the Tenant shall bear
the cost of required rectification.

SECTION 3.00 - TENANT'S COVENANTS

3.01 COVENANT FOR RENT - The Tenant covenants to pay Base Rent and Additional
Rent as rent due under this Lease.

                                      - 4 -
<PAGE>   5

3.02 TENANT TO PAY BUSINESS TAXES - The Tenant shall pay and discharge on or
before the due date when the same or the instalments for same become due all
business taxes levied on his business.

3.03 OBLIGATION TO REPAIR - The Tenant covenants with the Landlord that,
throughout the Term, the Tenant shall maintain and repair the interior of the
Premises and keep all fixtures and equipment therein in good order and same
state of repair as at the commencement of the Lease, reasonable wear and tear,
damage by fire, lightning and tempest only excepted.

3.04 COMPLIANCE WITH STATUTES, ETC. - The Tenant shall comply promptly with the
requirements of every applicable statute, law and ordinance, and with every
applicable lawful regulation and order with respect to the placement or removal
of any encroachment erected by Tenant or to the condition, equipment,
maintenance, use or occupation of the Premises and to comply with the applicable
regulation or order of the Canadian Underwrite's Association, or of any body
having similar functions, or of any liability or fire insurance company by which
the Tenant and/or Landlord may be responsible for the condition, operation,
maintenance and management of the Premises. It shall be the responsibility of
the Tenant to obtain all necessary municipal licenses and approvals of whatever
nature related to its use and occupancy of the Premises, including an occupancy
permit to carry on its business and operations in or on the Premises in
accordance with the use provided herein this Lease and as permitted by municipal
by-laws. It shall further be the responsibility of the Tenant to obtain any and
all necessary permits to carry on its business in or on the Premises, including
any permits, licenses or inspections as required by relevant authorities
governing such business or use. Provided that if a municipality makes a charge
against the Tenant or against the Premises by reason of the Tenant failing to
observe the requirements of any municipal or provincial by-law or regulation,
the Tenant shall pay such charge and if the Tenant fails to do so upon request,
the Landlord may pay the amount of such charge and recover the amount so paid in
the same manner as rent in arrears and with like powers or distress.

3.05 ENVIRONMENTAL COMPLIANCE -

      For the purposes of this section, the following terms shall have the
following meanings respectively:

            (i)   "Contaminant" includes, but is not limited to, any pollutants,
                  dangerous substances, liquid waste, industrial waste, toxic
                  substances, hazardous wastes, hazardous materials, hazardous
                  substances or contaminants including any of the foregoing
                  defined in any Environmental Law having jurisdiction over the
                  Premises;

            (ii)  "Environmental Activity" means any activity, event or
                  circumstances in respect of a Contaminant, including, without
                  limitation, its storage, use, holding, collection, purchase,
                  accumulation, assessment, generation, manufacture,
                  construction, processing, treatments, stabilization,
                  disposition, handling or transportation, or its Release,
                  escape, leaching, dispersal or migration into the natural
                  environment, including the movement through or in the air,
                  soil, surface water or ground water;

            (iii) "Environmental Laws" means any and all current and future
                  applicable international, federal, provincial or municipal
                  laws, by-laws, statutes, regulations, policies, guidelines,
                  orders or judgments, relating to the environment, or any
                  Environmental Activity as it relates to the Premises; and,

            (iv)  "Release" includes release, spill, pump, escape, leach,
                  dispose of, infuse, introduce, discharge, spray, Inject,
                  inoculate, abandon, deposit, spill, leak seep, pour, emit,
                  empty, throw, dump, place

                                      - 5 -
<PAGE>   6

                  and exhaust, or similar.

      In addition to any other provision herein this Lease, the Tenant
covenants, represents and warrants during the course of the Term that it shall
not permit the Release of any of the Contaminants into the environment or
municipal services as the result of any Environmental Activity conducted by the
Tenant or those persons for whom it is responsible in law, on the Premises or
Building, and that it shall comply with all Environmental Laws in effect from
time to time. The Tenant shall upon the Landlord's request provide a plan for
waste handling and disposal for dealing with the Contaminants and/or
Environmental Laws, or a contingency plan for dealing with Contaminant Release
should such occur. The Landlord may specify the location or locations in which
Contaminants are to be kept on the Premises.

      The Tenant warrants and represents, that to the best of the Tenant's
knowledge after having made and continuing to make all due enquiries and
investigations respecting same, and as follows that:

      (a)   the Tenant and its respective processes and undertakings have been,
            are and continue to be in strict compliance with all Environmental
            Laws;

      (b)   the Tenant has received no notice of non compliance with,
            requisition or order made under, the Environmental Laws and does not
            know of or have reasonable grounds to know of any acts, matters or
            things which would, or may, give rise to the aforementioned notice,
            requisition or order being Issued in respect of any of the Tenant's
            activities or proposed activities, businesses or operations;

      (c)   the Tenant has at no time been prosecuted to conviction for an
            offence of non compliance with any Environmental Laws or settled any
            such prosecution short of conviction; and,

      (d)   for the duration of the Lease to notify the Landlord immediately of
            the nature and extent of any such Release if such should or could
            possibly occur and to undertake any reasonably necessary remedial
            action related thereto as the Landlord may direct.

      The Tenant further covenants and agrees to indemnify and save harmless and
shall keep indemnified and continue to save harmless the Landlord from and
against any liability, actions, suits, damages (including lost profits,
consequential damages, interests, penalties, fines or monetary sanctions, and
all legal and expert fees related thereto), losses, costs and expenses incurred
or suffered by the Landlord by reason of or resulting from or in connection
with, or arising in any manner whatsoever out of the Release of the
Contaminants, breach of Environmental Laws, or breach of any warranty or
covenant or the inaccuracy of any representation of the Tenant contained or
referred to herein, if such Release of Contaminants or breach of Environmental
Laws has been caused by the Tenant or those persons for whom it is responsible
in law. This covenant shall remain in effect notwithstanding the expiry or
termination of this Lease.

3.06 RIGHT TO INSPECTION - The Tenant shall permit the Landlord and its
officers, agents, servants, employees and contractors upon reasonable notice and
during business hours and in the presence of a duly authorized representative of
the Tenant, during the Term to enter the Premises to inspect and examine the
condition thereof, or for the purpose of making any repairs or work in this
Lease required or permitted to be done, and:

            (i)   where upon notice in writing given by the Landlord to the
                  Tenant of any want of repair for which the Tenant is liable
                  under the terms hereof, the Tenant shall rectify and make good
                  any such defect in such manner as the Landlord shall direct
                  within a reasonable time from the delivery of the notice;
                  provided that if the Tenant shall not repair according to
                  notice in writing as herein provided, the

                                      - 6 -
<PAGE>   7

                  Landlord may enter upon the Premises (without being liable for
                  any disturbance or damage so caused) and may do such repairs
                  and of which the cost thereof the Landlord shall be entitled
                  to charge to the Tenant who shall pay such forthwith on
                  demand; and the Landlord, in addition to any other rights,
                  shall have the same remedies and may take the same steps for
                  the recovery of such sums as rent in arrears under the terms
                  of this Lease; and,

            (ii)  where in the opinion of the Landlord there exists on the
                  Premises any condition, matter or thing which is reasonably
                  likely to lead to a breach of section 3.05 hereof the Landlord
                  and its agents may conduct such audits, investigations, tests
                  and surveys as it deems necessary to assess the nature and
                  extent of the breach or likely breach and the completion of
                  necessary remedial action therefor, that the Landlord at its
                  option may either cause the Tenant to undertake in accordance
                  with subsection 3.06(i) hereof or which the Landlord shall
                  undertake, and of which the cost thereof the Landlord shall be
                  entitled to charge to the Tenant who shall pay such forthwith
                  on demand; and the Landlord, in addition to any other rights,
                  shall have the same remedies and may take the same steps for
                  the recovery of such sums as rent in arrears under the terms
                  of this Lease. If no breach of s. 3.05 is so found the
                  Landlord shall bear the costs of such audits, investigations,
                  test, and surveys.

3.07 SURRENDER OF LEASED PREMISES - At the expiration or earlier termination of
the Term the Tenant shall peaceably surrender and yield up to the Landlord the
Premises, in a broom swept condition only reasonable wear and tear excepted,
shall remove any Contaminants and shall take all reasonably necessary remedial
action with regard to any Released Contaminants or for conformance to
Environmental Laws (where "Contaminant", "Release" and "Environmental Laws" are
as defined in clause 3.06) as required by the Landlord, and if so required by
the Landlord, the Premises shall be restored to their original condition in the
event of any alterations made thereto. Where any restorations are to be made to
the ceiling of the Premises such work shall be carried out by the Landlord at
the Tenant's expense.

3.08 REMOVAL OF TRADE FIXTURES - At any time within thirty (30) days prior to
the expiration of the Term the Tenant, if not in default under this Lease, may
and at the request of the Landlord shall, remove from the Premises at its cost
all its movable trade fixtures, furniture, equipment and Tenant's work (other
than rugs, carpeting, floor coverings and leaseholds attached in any way to the
Premises) not affixed to the Premises, provided that the Tenant surrenders the
Premises in substantially the same condition me at the Commencement Date and the
Tenant shall repair any damage to the Premises and the Building which may be
occasioned by such removal. On the expiration of the Term all such movable trade
fixtures, furniture, equipment and Tenant's work not so removed shall be deemed
to have become the property of the Landlord.

3.09 EXHIBIT LEASED PREMISES - Upon reasonable notice and during business hours
during the Term the Landlord may exhibit the Premises to prospective purchasers
or mortgagees of the Building and during the six (6) months prior to expiration
of the Term, the Landlord may exhibit the Premises to prospective lessees.

3.10 ASSIGNMENT AND SUBLETTING - The Tenant will not assign, set over, transfer,
sublet or sublease, hypothecate, encumber or in any way deal with or part with,
the whole or any part of the Term or Premises, without written consent first
being obtained from the Landlord, but such consent shall not be unreasonably or
arbitrarily withheld, or delayed provided, however, and it is made a condition
to the giving of such consent that:

            (i)   The Tenant shall deliver to the Landlord a written request to
                  such assignment, sublease, etc. together with a copy of the
                  proposed assignment or sublease and shall provide the Landlord
                  with such information as the Landlord may reasonably require
                  with respect

                                      - 7 -
<PAGE>   8

                  to the business and financial responsibility and standing of
                  the proposed assignee or sub-lessee;

            (ii)  Any assignee or sub-lessee of this Lease shall agree in
                  writing to assume and perform all of the terms, covenants,
                  obligations and stipulations, conditions and agreements by
                  this Lease imposed upon the Tenant herein in the form to be
                  approved by the solicitor for the Landlord; and,

            (iii) No assignments or sublease shall in any manner release the
                  Tenant from its covenants and obligations hereunder.

3.11 USE OF PREMISES - The Tenant shall occupy the Premises throughout the Term
solely for the purpose of conducting thereon the business of a bakery, and
packaging and distribution of products and services associated therewith.

3.12 INSURANCE - The Tenant shall take out and maintain at its sole cost and
expense and in the names of the Tenant and the Landlord (and the Landlord's
mortgagee, if required by the Landlord) as their respective interests may
appear, insurance coverage of not less than one million dollars ($1,000,000.00)
including without limiting the generality of the foregoing, contents insurance,
property damage insurance, third party liability Insurance, business
interruption insurance and legal liability insurance, or in such amount or
amounts as the Landlord may reasonably from time to time stipulate. The Tenant
shall deposit certificates of all such insurance coverages with the Landlord at
the Landlord's request.

3.13 INCREASE IN INSURANCE PREMIUMS - The Tenant shall pay to the Landlord
forthwith on demand thereof any amount by which the basic premium of insurance
paid by the Landlord is increased by reason of any particular use or occupation
by the Tenant of the Premises.

3.14 RE-ENTRY - It is hereby agreed that when:

            (a)   the Tenant shall be in default in the payment of any rent, for
                  a period of seven (7) days after having received notice of
                  default;

            (b)   the Tenant shall be in default of any of its terms, covenants,
                  obligations and stipulations, conditions and agreements under
                  this Lease (other than its covenant to pay rent) and such
                  default shall have continued for a period of ten (10)
                  consecutive days after notice by the Landlord to the Tenant
                  specifying with reasonable particularity the nature of such
                  default and requiring the same to be remedied, provided
                  further that if the Tenant is taking steps to remedy and
                  cannot complete within ten (10) days, such ten (10) day period
                  shall be extended as the Landlord reasonably determines to
                  permit the Tenant to remedy;

            (c)   any property of the Tenant has been sold under a valid writ of
                  execution, or the Tenant shall have made an assignment for the
                  benefit of creditors, or have had a receiving order made
                  against it under the Bankruptcy and Insolvency Act, R.S.C
                  1985, as amended, or becoming bankrupt or insolvent, or shall
                  have made application for relief under the provisions of any
                  statute now or hereafter in force concerning bankrupt or
                  insolvent debtors, or any action whatever, legislative or
                  otherwise, shall have been taken with a view to the winding
                  up, dissolution or liquidation of the Tenant;

            (d)   any insurance policy is cancelled or not renewed by an insurer
                  by reason of any particular use or occupation of the Premises,
                  or;

            (e)   the Premises shall have been vacated or have become vacant or

                                      - 8 -
<PAGE>   9

                  shall have remained unoccupied for a period of fifteen (15)
                  consecutive days:

            then and in any of such cases, the then current month's rent
together with the rent for the three (3) months ensuing shall immediately become
due and payable, and at the option of the Landlord the Term shall become
forfeited and void, and the Landlord without notice or any form of legal process
whatsoever may forthwith re-enter the Premises or any part thereof in the name
of the whole and repossess and enjoy the same as of its former estate, anything
contained in any statute or law to the contrary notwithstanding. Such forfeiture
shall be wholly without prejudice to the right of the Landlord to recover
arrears of rent and damages for any antecedent breach of the terms, covenants,
obligations and stipulations, conditions and agreements of the Tenant under this
Lease. Notwithstanding any such forfeiture the Landlord may subsequently recover
from the Tenant damages for loss of rent suffered by reason of this Lease having
been prematurely determined and it may recover from the Tenant all damages it
may incur with respect thereto including the cost of recovering the Premises.

3.15 LANDLORD ENTITLED TO RE-LET - If the Landlord does not exercise its option
under section 3.14 to terminate this Lease it may nevertheless in the events set
out in section 3.14 from time to time re-enter the Premises without terminating
this Lease and acting reasonably make such alterations and repairs as may be
necessary in order to re-let the Premises or any part thereof as agent for the
Tenant for such period or periods (which may extend beyond the term) and at such
rental or rentals and upon such other terms and conditions as the Landlord in
its sole discretion may deem advisable. Upon each re-letting rent shall be
applied, first, to the payment of any indebtedness other than rent due from the
Tenant to the Landlord; second, to the payment of any cost and expenses of such
re-letting, including brokerage fees and solicitor's fees and of the costs of
such alterations and repairs; third, to the payment of rent due and unpaid; and
the residue, if any, shall be held by the Landlord and applied in payment of
future rent as the same may become due and payable. The Tenant shall pay to the
Landlord the amount by which the rentals received from such re-letting during
any month are less than the rent payable during that month by the Tenant.
Notwithstanding any such re-letting without termination, the Landlord may at any
time thereafter elect to terminate this Lease. No such re-entry or taking of
possession by the Landlord shall be construed as an election on its part to
re-entry or taking of possession, unless a written notice of such intention has
been given to the Tenant or unless the termination thereof be decreed by a court
of competent jurisdiction.

3.16 DISTRESS - Notwithstanding anything contained in any statute or amendment
or revision thereof, none of the goods or chattels of the said Tenant at any
time during the continuance of the Term hereby created situate on the Premises
shall be exempt from levy by distress for rent in arrears, and that upon any
claim being made for such exemption by the Tenant or on distress being made by
the Landlord this covenant and agreement may be pleaded as an estoppel against
the Tenant in any action brought to test the right to the levying upon any such
goods as are named as exempt in any such statute, and the Tenant waives every
benefit that might have accrued to the Tenant under any such statute but for
this covenant.

3.17 LANDLORD MAY FOLLOW CHATTELS - In case of removal by the Tenant, except in
the ordinary course of business, of goods and chattels from the Premises, the
Landlord may follow same for a period of thirty (30) days in the same manner as
is provided for in the Landlord and Tenant Act, R.S.O. 1990, as amended, or in
any other act respecting the fraudulent and clandestine removal of goods.

3.18 REMOVAL OF REFUSE - Tenant is not to allow any refuse, garbage or other
loose or objectionable material to accumulate in, on or around the Premises and
is at all times to keep the Premises in clean and wholesome condition, failing
which the Landlord may do so at the Tenant's expense, and upon the termination
of the Term the Tenant is not to leave upon the Premises any rubbish or waste
material but to leave the Premises in a clean and tidy condition. To the extent
the Landlord shall have to undertake removal of refuse it shall be entitled to
charge the expenses thereof

                                      - 9 -
<PAGE>   10

to the Tenant who shall pay them forthwith on demand; and the Landlord, in
addition to any other rights, shall have the same remedies and may take the same
steps for the recovery of such sums as rent in arrears under the terms of this
Lease. The Tenant is to provide a disposal bin for Tenant's refuse.

3.19 TENANT'S ALTERATIONS - The Tenant shall not make any alteration, repair or
improvement to the Premises nor make, construct, erect, or install any leasehold
improvements in or to the said Premises, except with the prior written approval
of the Landlord which approval not to be unreasonably withheld and in accordance
with the procedures and provisions set out in this section. Before beginning any
such work the Tenant shall deliver to the Landlord sufficient copies of its
plans and specifications thereof and such other information as the Landlord may
reasonably require with respect thereto. All such work shall be carried out by
the Tenant in accordance with the applicable requirements of all regulatory
authorities having jurisdiction with respect thereto and shall be carried out as
expeditiously as possible and in a good and workman like manner with first class
new materials. Such work shall comply with the reasonable rules and regulations
as may from time to time be made by the Landlord and shall not be of such kind
or extent as to in any manner weaken the structure of the Building or Premises,
or reduce the value thereof. The Tenant shall obtain all necessary permits for
Tenant's work, which includes any and all work carried out by the Tenant beyond
that done by the Landlord.

3.20 OVERLOADING PREMISES - The Tenant will not bring upon the Building or
Premises, or any part thereof any machinery, equipment, article or thing that by
reason of its weight or size might damage the Building or Premises and will not
at any time overload the floors of the Building or Premises and that if any
damage is caused to the Building or Premises by any machinery, equipment,
article or thing or by overloading or by any act, neglect or misuse on the part
of the Tenant or any of its servants, agents or employees or any person having
business with Tenant, Tenant will forthwith pay to the Landlord the cost of
making good the same. The Landlord acknowledges that the Premises can
accommodate the business of the Tenant.

3.21 EVIDENCE OF PAYMENT - The Tenant shall from time to time at the request of
the Landlord produce for the Landlord, reasonable and satisfactory evidence of
the due payment by the Tenant of all payments required to be made by the Tenant
under this Lease.

3.22 IMPROVEMENTS BECOME PART OF PREMISES - Subject to the terms of this Lease,
any building, erection or improvement placed or erected upon the Premises shall
become part thereof and shall not be removed and shall be subject to all the
provisions of this Lease. No building, erection or improvement shall be erected
upon the Premises herein without the prior written consent of the Landlord which
shall not be unreasonably withheld or delayed.

3.23 OVERHOLDING TENANT - If at the expiration of the Term by elapse of time the
Tenant shall hold over without the written consent of the Landlord for any
reason the tenancy of the Tenant thereafter shall be from month to month and
shall, in the absence of written agreement to the contrary, be at a monthly Base
Rent of twenty thousand dollars ($20,000.00) and subject to all covenants,
obligations and agreements provided for in this Lease, except as to duration and
rights of renewal, if any.

3.24 TENANT TO INDEMNIFY - The Tenant will indemnify and save harmless the
Landlord of and from all liability, fines, suits, claims, damages (including
lost profits, consequential damages, interests, penalties, fines or monetary
sanctions, and all legal and expert fees related thereto), losses, costs and
expenses incurred or suffered by the Landlord by reason of or resulting from or
in connection with, or arising in any manner whatsoever out of, or demands and
actions of any kind or nature to which Landlord shall or may become liable for
or suffer by reason of, liabilities caused by the negligence of the Tenant or
its officers, agents, servants, employees and contractors, and such obligation
to indemnify shall survive any termination of this Lease, anything contained
herein to the contrary notwithstanding.

                                     - 10 -
<PAGE>   11

SECTION 4.00 - LANDLORD'S COVENANTS

4.01 LANDLORD'S WORK - The Landlord shall provide the following at its own cost
on or before the Occupancy Date:

            (a)   floor to ceiling block as per sketch submitted by the Tenant;

            (b)   supply 550 volt, 400 amp service, (1) 75KVa Transformer, (1)
                  575 V, 208A 110V Transformer;

            (c)   supply separate hydro and gas meters;

            (d)   supply separate water meter, if cost effectively possible;
                  and,

            (e)   leave existing air lines for use by the Tenant, if belonging
                  to the Landlord and in its possession;

where all work shall be completed to standard grade industrial finish by the
Landlord according to a sketch or drawing of proposed work to be submitted by
the Tenant to the Landlord within five (5) days of the Occupancy Date.

4.02 SIGNAGE - The Tenant may install in, erect or affix upon or about the
Premises, signs and advertising material, which shall remain the property of the
Tenant, and which the Tenant may remove upon the expiration of the Term or shall
remove at the Landlord's request upon the expiration of the Term, provided that
all damage caused by such installation, erection, affixation or removal is
repaired and the Premises left in good repair. All signs and locations thereof
are subject to prior approval in writing by the Landlord, such consent not to be
unreasonably withheld, and must conform with all municipal, local and other
laws, bylaws, ordinances and restrictions, and Landlord's regulations governing
signs, applicable thereto.

4.03 PARKING- The Tenant shall have free access to the side of the Building
proximate to the Premises for shipping purposes, and shall be allowed adequate
parking for staff and office personnel, and overnight trucking.

4.04 WARRANTIES - The Landlord warrants and represents that the roof shall be in
good repair and all mechanical, air conditioning equipment (HVAC), heating,
ventilating, plumbing, sprinkler, shipping doors, washrooms and electrical
systems shall be in good working order, normal wear and tear excepted, prior to
and on the Occupancy Date. The Landlord shall during the Term, at its cost,
maintain the roof and all such systems, as well as the interior of the Premises,
in a good state of repair.

4.05 STRUCTURAL PENETRATION - The Tenant shall be permitted four (4) openings in
the ceiling of the Premises, which shall be made at such time and in such
location according to the prior written consent of the Landlord, which consent
shall not be unreasonably withheld or delayed. The Tenant shall be permitted to
add one (1) receiving door in its shipping office on the Premises with maximum
dimensions of eighty-two (82) inches high and one hundred and thirty-six (136)
inches wide. The Tenant is to perform the work necessary to complete such
openings in a professional and workmanlike manner, at its own cost.

4.06 STRUCTURAL MAINTENANCE AND CAPITAL EXPENDITURES - The Tenant shall not be
responsible for structural maintenance or capital expenditures including major
repairs to or replacement of (which necessity for and scope of repair and
replacement shall be as determined by the Landlord's architect or appointed
expert), the roof or exterior of the Premises, parking lots, mechanical, air
conditioning equipment (HVAC), or main electrical service, unless such repairs
or replacement are caused by the negligence of the Tenant.

4.07 DAMAGE TO PREMISES - Provided that if during the continuation of

                                     - 11 -
<PAGE>   12

this Lease:

            (a)   the Building or Premises are totally destroyed by any
                  casualties so that it cannot be repaired with reasonable
                  diligence within one hundred and twenty (120) days of the
                  happening of such injury, as determined by the Landlord's
                  architect, then the Lease shall cease and become null and void
                  from the date of such damage or destruction, and the Tenant
                  shall immediately surrender the Premises and all interest
                  therein to the Landlord, and the Tenant shall pay rent only to
                  the time of such surrender and any prepaid rent shall be
                  returned to the Tenant and in case of destruction or partial
                  destruction as above mentioned the Landlord may re-enter or
                  repossess the Premises discharged of this Lease, and may
                  remove all parties therefrom;

            (b)   if the Building or the Premises are partially destroyed by
                  casualty, and can be repaired with reasonable diligence within
                  one hundred and twenty (120) days from the happening of said
                  injury, but if the damage is such as to render the Premises
                  wholly unfit for occupancy, as determined by the Landlord's
                  architect, then the Base Rent shall not run or accrue after
                  the said injury, or while the process of repairs is going on,
                  and the Landlord shall repair the same with all reasonable
                  speed and then the Base Rent shall recommence immediately
                  after the said repairs have been completed; or,

            (c)   if the Building or the Premises are partially destroyed by
                  casualties, and can be repaired with reasonable diligence
                  within one hundred and twenty (120) days from the happening of
                  the said injury, and if the damage is such that the Premises
                  can be partially used, then until such damage shall have been
                  repaired, the Base Rent shall abate in proportion that the
                  part of the Premises rendered unfit for occupancy bears to the
                  whole of the Premises, all as determined by the Landlord's
                  architect and the Landlord shall repair same with all
                  reasonable speed.

4.08 LIMIT OF LANDLORD'S LIABILITY - Except for matters arising from the
negligence of the Landlord, its officers, agents, servants, employees or
contractors, the Landlord shall not be liable or responsible In any way for, and
the Tenant shall not be entitled to any abatement of rent in respect of, any
loss, damage, or injury of any nature whatever that may be suffered or sustained
to any persons or property, and in particular, without limiting the generality
of the foregoing, the Landlord shall not be liable for any loss, damage or
injury of any nature whatever to any person or persons or property resulting
from any defect in the Premises or in the Building or resulting from the
condition or arrangement or interruption or breakdown of any service, equipment,
machinery, utilities or other facility related to the Premises or Building, or
resulting by reason of steam, smoke, water, rain, snow, or other substances
leaking, issuing, flowing or escaping onto any part of the said Premises or by
the Landlord, its servants, employees, agents, contractors, customers, invitees
or licensees, or by other occupants of the Building, or by persons in the
Premises or the Building, or by occupants of adjacent property, or by the
public, nor shall the same constitute an eviction.

4.09 PAYMENT OF MONIES BY LANDLORD - In the event of the Tenant failing to pay
any business taxes, insurance premiums or charges which it has herein covenanted
to pay, and in the manner herein provided, the Landlord may pay the same and
shall be entitled to charge the sums so paid to the Tenant who shall pay them
forthwith on demand; and the Landlord, in addition to any other rights, shall
have the same remedies and may take the same steps for the recovery of such sums
as rent in arrears under the terms of this Lease.

4.11 LANDLORD MAY ASSIGN LEASE - The Landlord declares that it may

                                     - 12 -
<PAGE>   13

assign its rights under the Lease and in the event that such an assignment is
given and executed by the Landlord and notification is given to the Tenant, the
Tenant if so requested, will, at the Landlord's cost, at any time, and from time
to time:

      (a)   execute an acknowledgement concerning the performance and observance
            by the Landlord of its obligations under this Lease and concerning
            the payment by the Tenant of the rent reserved and other sums
            payable by and under this Lease as may be requested by the Landlord
            or assignees;

      (b)   certify that this Lease is unmodified and is in full force and
            effect (or if modified, stating the modification and the same is in
            full force and effect as modified); and,

      (c)   provide particulars of any monies or security deposited hereunder
            with the Landlord and whether or not there is any existing default
            on the part of the Landlord of which Tenant has notice.

      It is hereby agreed that any such statement delivered pursuant to the
provisions of this paragraph may be conclusively relied upon, save as to any
default on the part of the Landlord of which the Tenant does not have notice as
of the date thereof. If the Tenant fails to give such statement within
twenty-one (21) days after the receipt of notice requesting same, then the
Landlord may sign such statement as attorney for the Tenant and the contents of
such statement shall be binding on the Tenant.

4.12 QUIET ENJOYMENT - Provided that the Tenant Is not in default under the
terms of this Lease, the Tenant shall have quiet enjoyment of the Premises
during the continuance of the Term and any renewals thereof. The Tenant shall
have access to the Leased Premises from the maintenance (front of building) for
receiving guests.

4.13 SUBORDINATION OF LEASEHOLDS - Notwithstanding any clause in the Lease
herein, and any further adjustments thereto that may exist from time to time,
the parties hereto agree that The Toronto Dominion Bank has a first position
charge against the Tenant's leaseholds that are not affixed to the Premises,
ranking ahead of any interest of the Landlord against such leaseholds herein and
having priority over any rights that the Landlord herein may have against such
leaseholds as per the within Lease.

SECTION 5.00 - GENERAL PROVISIONS

5.01 PRIORITY OF LEASE - It is understood and agreed between the parties hereto
that the Term hereby granted shall not have priority over The Toronto Dominion
Bank mortgage presently registered on the property.

5.02 NOTICE OF LEASE - The Tenant shall have the right to register notice of
this Lease at its own expense, and in such case the Tenant will provide at its
own expense a copy of much notice to be registered to the Landlord, which must
be approved and executed by the Landlord, except for sufficient and reasonable
cause, prior to registry.

5.03 - This Lease is entered into subject to the condition that it is to be
effective only on obtaining such consents, if any, as may be required under the
Planning Act, R.S.O. 1980, as amended, or any successor legislation or other
statute which may hereafter be passed to take the place of the said Act or to
amend the same, and provided that such consents are granted on conditions which
are acceptable to the Landlord.

                                      -13-
<PAGE>   14

5.04 NOTICE - Any notice required to be given hereunder to the Tenant or
in connection with the Lease, for any purpose, may be sufficiently given if sent
by registered post prepaid to the Tenant at 350 Creditstone Road, Unit #D,
Concord, Ontario, L4K 2E8. Any notice for the Landlord may be sufficiently given
if delivered to the Landlord personally or, if sent by registered post prepaid
to the Landlord at 350 Creditstone Road, Unit #C, Concord, Ontario, L4K 3X2. The
said notice shall be deemed to have been given on the third (3rd) Business Day
following the day when it Is deposited in a post office in the Regional
Municipality of York (where "Business Day" in this Lease means any day other
than a Saturday, Sunday or statutory holiday in Ontario).

5.06 TIME OF THE ESSENCE - Time shall be of the essence of this Lease.

5.07 AMENDMENTS - This Lease may not be modified or amended except by instrument
in writing signed by the Landlord and Tenant.

5.08 WAIVER - No waiver by either party of any breach by the other party of any
of its terms, covenants, obligations and stipulations, conditions and agreements
under this Lease shall be a waiver of any subsequent breach or of any other
term, covenant, obligation and stipulation, condition and agreement contained
herein, nor shall any forbearance to seek a remedy for any breach be a waiver of
any rights and remedies with respect to such or any subsequent breach.

5.09 SEVERABILITY - If any terms, covenants, obligations and stipulations,
conditions and agreements contained herein this Lease, or part thereof, or the
application thereof to any person or circumstance shall, to any extent, be
declared invalid or unenforceable by a court of competent jurisdiction, the
remainder of this Lease or the application of such terms, covenants, obligations
and stipulations, conditions and agreements contained herein to persons or
circumstances other than those as to which it is held Invalid or unenforceable,
shall not be affected thereby and each term, covenant, obligation and
stipulation, condition and agreement contained herein this Lease shall be
separately valid and enforceable to the fullest extent permitted.

5.10 HEADINGS - The article headings and section headings in this Lease have
been inserted for convenience of reference only and do not form part of this
Lease. Such headings shall not be referred to in the interpretation of this
Lease.

5.11 CHANGES REQUIRED BY CONTEXT - This Lease shall be read with all changes of
gender and number required by the context.

5.12 - This Lease shall enure to the benefit of and be binding upon the parties
hereto and their respective helm, administrators, executors, successors and
assigns.

5.13 FURTHER ACTIONS - The Tenant and the Landlord covenant with the each other
to do, execute and provide all other things as may be required by the other to
give effect to the terms, covenants, obligations and stipulations, conditions
and agreements contained herein of each other under this Lease.

5.14 APPLICABLE LAW - This Lease shall be construed in accordance with the laws
of the Province of Ontario, and of Canada as applicable therein.

5.15 WHOLE AGREEMENT - This Lease contains the whole agreement

                                      -14-
<PAGE>   15

between the parties with respect to the subject matter of this Lease. There is
no representation, warranty, collateral agreement or condition affecting the
Building, the Premises, or this Lease, or supported by this Lease other than as
expressed in this Lease. The schedules and appendices to this Lease form part of
this Lease.

      IN WITNESS WHEREOF the parties hereto have affixed their hand and
corporate seals, as applicable, as attested by the hands of their proper signing
officer duly authorized in that behalf.

SIGNED, SEALED AND DELIVERED  )
in the presence of            )
                              )         ALCONE HOLDINGS LTD.
                              )
                              )         ----------------------------------------
                              )         PER. Ernesto Cascone, President
                              )         I have authority to bind the
                              )         Corporation
                              )
                              )
                              )         THORNHILL BAKERY LIMITED
                              )
                              )         ----------------------------------------
                              )         PER.
                              )         I have authority to bind the
                              )         Corporation

                                      -15-
<PAGE>   16

                              [FLOOR PLAN OMITTED]

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