Document:

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                                                                    EXHIBIT 10.1

Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

                    SONY COMPUTER ENTERTAINMENT AMERICA INC.

                                       AND

                           ACCLAIM ENTERTAINMENT, INC.

                                    [LOGO](R)

                                 PLAYSTATION(R)2

                                 CD-ROM/DVD-ROM

                          LICENSED PUBLISHER AGREEMENT

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                                TABLE OF CONTENTS

SECTION:                                                                   PAGE:

1     Definition of Terms ...................................................1
2     License Grant .........................................................5
3     Development of Licensed Products ......................................5
4     Limitations on Licenses; Reservation of Rights ........................6
5     Quality Standards for the Licensed Products ...........................8
6     Manufacture of the Licensed Products .................................12
7     Marketing and Distribution ...........................................16
8     Royalties ............................................................20
9     Representations and Warranties .......................................25
10    Indemnities; Limited Liability .......................................26
11    SCEA Intellectual Property Rights ....................................28
12    Infringement of SCEA Intellectual Property Rights By Third Parties ...29
13    Confidentiality ......................................................29
14    Term and Termination .................................................34
15    Effect of Expiration or Termination ..................................36
16    Miscellaneous Provisions .............................................38

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                                 PLAYSTATION(R)2
                                 CD-ROM/DVD-ROM
                          LICENSED PUBLISHER AGREEMENT

This LICENSED PUBLISHER AGREEMENT (the "Agreement" or "LPA"), entered into as of
the 1st day of April, 2000 (the "Effective Date"), by and between SONY COMPUTER
ENTERTAINMENT AMERICA INC., with offices at 919 E. Hillsdale Boulevard, Foster
City, CA 94404 (hereinafter "SCEA"), and ACCLAIM ENTERTAINMENT, INC., with
offices at One Acclaim Plaza, Glen Cove, NY 11542 (hereinafter "Publisher").

WHEREAS, SCEA, its parent company, Sony Computer Entertainment Inc., and/or
certain of their affiliates and companies within the group of companies of which
any of them form a part (collectively referred to herein as "Sony") are
designing and developing, and licensing core components of, a computer
entertainment system known as the PlayStation(R)2 computer entertainment system
(hereinafter referred to as the "System").

WHEREAS, SCEA has the right to grant licenses to certain SCEA Intellectual
Property Rights (as defined below) in connection with the System.

WHEREAS, Publisher desires to be granted a non-exclusive license to publish,
develop, have manufactured, market, distribute and sell Licensed Products (as
defined below) pursuant to the terms and conditions set forth in this Agreement;
and SCEA is willing, on the terms and subject to the conditions of this
Agreement, to grant Publisher such a license.

NOW, THEREFORE, in consideration of the representations, warranties and
covenants contained herein, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Publisher and SCEA
hereby agree as follows:

1.   DEFINITION OF TERMS.

     1.1 "Advertising Materials" means any advertising, marketing,
merchandising, promotional, public relations (including press releases) and
display materials relating to or concerning Licensed Products or proposed
Licensed Products, or any other advertising, merchandising, promotional, public
relations (including press releases) and display materials depicting any of the
Licensed Trademarks. For purposes of this Agreement, Advertising Materials
include any advertisements in which the System is referred to or used in any
way, including but not limited to giving the System away as prizes in contests
or sweepstakes and the public display of the System in product placement
opportunities.

     1.2 "Affiliate of SCEA" means, as applicable, either Sony Computer
Entertainment Inc. in Japan, Sony Computer Entertainment Europe Ltd. in the
United Kingdom or such other Sony Computer Entertainment entity as may be
established from time to time.

     1.3 "Designated Manufacturing Facility" means a manufacturing facility or
facilities which is designated by SCEA in its sole discretion to manufacture
Licensed Products and/or their component parts, which may include manufacturing
facilities owned and operated by affiliated companies of SCEA.

ACCLAIM ENTERTAINMENT, INC., AN
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     1.4 "Development System Agreement" means an agreement entered into between
SCEA and a Licensed Publisher, Licensed Developer or other licensee for the sale
or license of Development Tools.

     1.5 "Development Tools" means the PlayStation 2 development tools sold or
licensed by SCEA to a Licensed Publisher or Licensed Developer for use in the
development of Executable Software for the System.

     1.6 "Executable Software" means software which includes Product Software
and any software provided directly or indirectly by SCEA or an Affiliate of SCEA
designed for execution exclusively on the System and which has the ability to
communicate with the software resident in the system.

     1.7 "Fiscal Year" means a year measured from April 1 to March 31.

     1.8 "Generic Line" means the generic legal attribution line used on SCEA
marketing or other materials, which shall be or be substantially similar to the
following: "Product copyright and trademarks are the property of the respective
publisher of their licensors".

     1.9 "Guidelines" shall mean any guidelines of SCEA or an Affiliate of SCEA
with respect to SCEA Intellectual Property Rights, which may be set forth in the
SourceBook 2 or in other documentation provided by SCEA or an Affiliate of SCEA
to Publisher.

     1.10 "Legal Copy" means any legal or contractual information required to be
used in connection with a Licensed Product or Product Information, including but
not limited to copyright and trademark attributions, contractual credits and
developer or distribution credits.

     1.11 "Level 1 Rebate" shall have the meaning set forth in Section 8.4
hereto.

     1.12 "Level 2 Rebate" shall have the meaning set forth in Section 8.4
hereto.

     1.13 "Licensed Developer" means any developer that has signed a valid and
then current Licensed Developer Agreement.

     1.14 "Licensed Developer Agreement" or "LDA" means a valid and current
license agreement for the development of Licensed Products for the System, fully
executed between a Licensed Developer and SCEA or an Affiliate of SCEA.

     1.15 "Licensed Products" means the Executable Software (which may be
combined with Executable Software of other Licensed Publishers or Licensed
Developers), which shall consist of one product developed for the System or for
the original PlayStation game console per Unit, in final form developed
exclusively for the System. Publisher shall have no right to package or bundle
more than one product developed for the System or for the original PlayStation
game console in a single Unit unless separately agreed with SCEA.

     1.16 "Licensed Publisher" means any publisher that has signed a valid and
then current Licensed Publisher Agreement.

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     1.17 "Licensed Publisher Agreement" or "LPA" means a valid and current
license agreement for the publication, development, manufacture, marketing,
distribution and sale of Licensed Products for the System, fully executed
between a Licensed Publisher and SCEA or an Affiliate of SCEA.

     1.18 "Licensed Territory" means the United States (including its
possessions and territories) and Canada. The Licensed Territory may be modified
and/or supplemented by SCEA from time to time pursuant to Section 4.4 below.

     1.19 "Licensed Trademarks" means the trademarks, service marks, trade
dress, logos and other icons or indicia designated by SCEA in the SourceBook 2
or other Guidelines for use on or in connection with Licensed Products. Nothing
contained in this Agreement shall in any way grant Publisher the right to use
the trademark "Sony" in any manner. SCEA may amend such Licensed Trademarks from
time to time in the SourceBook 2 or other Guidelines or upon written notice to
Publisher.

     1.20 "Manufacturing Specifications" means specifications setting forth
terms relating to the manufacture and assembly of PlayStation 2 Format Discs,
Packaging, Printed Materials and each of their component parts which shall be
set forth in the SourceBook 2 or other documentation provided by SCEA or a
Designated Manufacturing Facility to Publisher and which may be amended from
time to time upon reasonable notice to Publisher.

     1.21 "Master Disc" means a recordable CD-ROM or DVD-ROM disc in the form
requested by SCEA containing final pre-production Executable Software for a
Licensed Product.

     1.22 "Packaging" means, with respect to each Licensed Product, the carton,
containers, packaging, edge labels and other proprietary labels, trade dress and
wrapping materials, including any jewel case (or other CD-ROM or DVD-ROM
container) or parts thereof, but excluding Printed Materials and PlayStation 2
Format Discs.

     1.23 "PlayStation 2 Format Discs" means the uniquely marked or colored
CD-ROM or DVD-ROM discs formatted for use with the System which, for purposes of
this Agreement, are manufactured on behalf of Publisher and contain Licensed
Products or SCEA Demo Discs.

     1.24 "Printed Materials" means all artwork and mechanicals set forth on the
disc label of the PlayStation Disc relating to any of the Licensed Products and
on or inside any packaging for the Licensed Product, and all instructional
manuals, liners, inserts, trade dress and other user information to be inserted
into the Packaging.

     1.25 "Product Information" means any information owned or licensed by
Publisher relating in any way to Licensed Products, including but not limited to
demos, videos, hints and tips, artwork, depictions of Licensed Product cover art
and videotaped interviews.

     1.26 "Product Proposal" shall have the meaning set forth in Section 5.2.1
hereto.

     1.27 "Product Software" means any software including audio and video
material developed by a Licensed Publisher or Licensed Developer, which, either
by itself or combined

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with Product Software of other licensees, when integrated with software provided
by SCEA or an Affiliate of SCEA, creates Executable Software. It is understood
that Product Software contains no proprietary information of Sony or any other
rights of SCEA.

     1.28 "Publisher Intellectual Property Rights" means those intellectual
property rights, including but not limited to patents and other patent rights,
copyrights, trademarks, service marks, trade names, trade dress, mask work
rights, utility model rights, trade secret rights, technical information,
know-how, and the equivalents of the foregoing under the laws of any
jurisdiction, and all other proprietary or intellectual property rights
throughout the universe, which pertain to Product Software, Product Information,
Printed Materials, Advertising Materials or other rights of Publisher required
or necessary under this Agreement.

     1.29 "Purchase Order" means a written purchase order processed in
accordance with the terms of Section 6.2.2 hereto, the Manufacturing
Specifications or other terms provided separately by SCEA or a Designated
Manufacturing Facility to Publisher.

     1.30 "SCEA Demo Disc" means any demonstration disc developed and
distributed by SCEA.

     1.31 "SCEA Established Third Party Demo Disc Programs" means (i) any
consumer or trade demonstration disc program specified in the SourceBook 2, and
(ii) any other third party demo disc program established by SCEA for Licensed
Publishers.

     1.32 "SCEA Intellectual Property Rights" means those intellectual property
rights, including but not limited to patents and other patent rights,
copyrights, trademarks, service marks, trade names, trade dress, mask work
rights, utility model rights, trade secret rights, technical information,
know-how, and the equivalents of the foregoing under the laws of any
jurisdiction, and all other proprietary or intellectual property rights
throughout the universe, which are required to ensure compatibility with the
System or which pertain to the Licensed Trademarks.

     1.33 "SCEA Product Code" means the product identification number assigned
to each Licensed Product, which shall consist of separate product identification
numbers for multiple disc sets (i.e., SLUS-xxxxx). This SCEA Product Code is
used on the Packaging and PlayStation Disc relating to each Licensed Product, as
well as on most communications between SCEA and Publisher as a mode of
identifying the Licensed Product other than by title.

     1.34 "Sony Materials" means any data, object code, source code, firmware,
documentation (or any part(s) of any of the foregoing), related to the System,
selected in the sole judgment of SCEA, which are provided or supplied by SCEA or
an Affiliate of SCEA to Publisher or any Licensed Developer and/or other
Licensed Publisher. For purposes of this Agreement, Sony Materials shall not
include any hardware portions of the Development Tools, but shall include
firmware in such hardware.

     1.35 "SourceBook 2" means the PlayStation 2 SourceBook (or any other
reference guide containing information similar to the SourceBook 2 but
designated with a different name) prepared by SCEA, which is provided separately
to Publisher. The SourceBook 2 is designed to

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Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

serve as the first point of reference by Publisher for every phase of the
development, approval, manufacture and marketing of Licensed Products.

     1.36 "Standard Rebate" shall mean the rebate offered by SCEA on titles of
Licensed Products that achieve specified sales volumes as set forth in Section
8.4 of this Agreement.

     1.37 "Third Party Demo Disc" means any demo disc developed and marketed by
a Licensed Publisher, which complies with the terms of an SCEA Established Third
Party Demo Disc Program.

     1.38 "Unit" means an individual copy of a Licensed Product title regardless
of the number of PlayStation 2 Format Discs constituting such Licensed Product
title.

     1.39 "Wholesale Price" or "WSP" shall mean [*]

2.   LICENSE.

     2.1 LICENSE GRANT. SCEA grants to Publisher, and Publisher hereby accepts,
for the term of this Agreement, within the Licensed Territory, under SCEA
Intellectual Property Rights owned, controlled or licensed by SCEA, a
non-exclusive, non-transferable license, without the right to sublicense (except
as specifically provided herein), to publish Licensed Products using Sony
Materials, which right shall be limited to the following rights and other rights
set forth in, and in accordance with the terms of, this LPA: (i) to produce or
develop Licensed Products and to enter into agreements with Licensed Developers
and other third parties to develop Licensed Products; (ii) to have such Licensed
Products manufactured; (iii) to market, distribute and sell such Licensed
Products and to authorize others to do so; (iv) to use the Licensed Trademarks
strictly and only in connection with the development, manufacturing, marketing,
packaging, advertising, and promotion of the Licensed Products, and subject to
SCEA's right of approval as provided herein; and (v) to sublicense to end users
the right to use the Licensed Products for noncommercial purposes in conjunction
with the System only, and not with other devices or for public performance.

     2.2 SEPARATE PLAYSTATION AGREEMENTS. Unless specifically set forth in this
Agreement, all terms used herein are specific to the System and the third party
licensing program related thereto and not to the original PlayStation game
console or third party licensing program related thereto. Licenses relating to
the original PlayStation game console are subject to separate agreements with
SCEA, and any license of rights to Publisher under such separate agreements
shall not confer on Publisher any rights under the System and vice versa.

3.   DEVELOPMENT OF LICENSED PRODUCTS.

     3.1 RIGHT TO DEVELOP. This LPA grants Publisher the right to develop
Licensed Products. It also gives Publisher the right to purchase and/or license
Development Tools, as is appropriate, from SCEA or its designated agent,
pursuant to a separate Development System Agreement with SCEA, to assist in such
development. In developing Executable Software (or portions thereof), Publisher
and its agents shall fully comply in all respects with any and all technical
specifications which may from time to time be issued by SCEA. In the event that

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Publisher uses third party tools to develop Executable Software, Publisher shall
be responsible for ensuring that it has obtained appropriate licenses for such
use.

     3.2 DEVELOPMENT BY THIRD PARTIES. Except as otherwise set forth herein,
Publisher shall not provide Sony Materials or SCEA's Confidential Information to
any third party. Publisher shall be responsible for determining that third
parties meet the criteria set forth herein. Publisher may contract with a third
party for development of Licensed Products, provided that such third party is:
(i) a Licensed Publisher, (ii) a Licensed Developer, or (iii) an SCEA-authorized
subcontractor in compliance with the provisions of Section 16.6. Publisher shall
notify SCEA in writing of the identity of any such third party within thirty
(30) days of entering into an agreement or other arrangement with the third
party.

4.   LIMITATIONS ON LICENSES; RESERVATIONS OF RIGHTS.

     4.1 REVERSE ENGINEERING PROHIBITED. Other than as expressly permitted by
SCEA in writing, Publisher shall not directly or indirectly disassemble,
decrypt, electronically scan, peel semiconductor components, decompile, or
otherwise reverse engineer in any manner or attempt to reverse engineer or
derive source code from, all or any portion of the Sony Materials, or permit,
assist or encourage any third party to do so. Other than as expressly permitted
by SCEA in writing, Publisher shall not use, modify, reproduce, sublicense,
distribute, create derivative works from, or otherwise provide to third parties,
the Sony Materials, in whole or in part, other than as expressly permitted by
SCEA. SCEA shall permit Publisher to study the performance, design and operation
of the Development Tools solely for the limited purposes of developing and
testing Publisher's software applications, or to build tools to assist Publisher
with the development and testing of software applications for Licensed Products.
Any tools developed or derived by Publisher resulting from the study of the
performance, design or operation of the Development Tools shall be considered as
derivative products of the Sony Materials for copyright purposes, but may be
treated as trade secrets of Publisher. In no event shall Publisher patent any
tools created, developed or derived from Sony Materials. Publisher shall not
make available to any third party any tools developed or derived from the study
of the Development Tools without the express written permission of SCEA. Use of
such tools shall be strictly limited to the creation or testing of Licensed
Products and any other use, direct or indirect of such tools is strictly
prohibited. Publisher shall be required in all cases to pay royalties in
accordance with Section 8 hereto to SCEA on any of Publisher's products
utilizing any Sony Materials or derivative works made therefrom. Moreover,
Publisher shall bear all risks arising from incompatibility of its Licensed
Product and the System resulting from use of Publisher-created tools. The burden
of proof under this Section shall be on Publisher, and SCEA reserves the right
to require Publisher to furnish evidence satisfactory to SCEA that Publisher has
complied with this Section.

     4.2  RESERVATION OF SCEA'S RIGHTS.

         4.2.1 LIMITATION OF RIGHTS TO LICENSES GRANTED. The licenses granted in
this Agreement extend only to the publication, development, manufacture,
marketing, distribution and sale of Licensed Products for use on the System, in
such formats as may be designated by SCEA. Without limiting the generality of
the foregoing and except as otherwise

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provided herein, Publisher shall not distribute or transmit the Executable
Software or the Licensed Products via electronic means or any other means now
known or hereafter devised, including without limitation, via wireless, cable,
fiber optic means, telephone lines, microwave and/or radio waves, or over a
network of computers or other devices. Notwithstanding this limitation,
Publisher may electronically transmit Executable Software from site to site, or
from machine to machine over a computer network, for the sole purpose of
facilitating development; provided that no right of retransmission shall attach
to any such transmission, and provided further that Publisher shall use
reasonable security measures customary within the high technology industry to
reduce the risk of unauthorized interception or retransmission of such
transmissions. This Agreement does not grant any right or license, under any
SCEA Intellectual Property Rights or otherwise, except as expressly provided
herein, and no other right or license is to be implied by or inferred from any
provision of this Agreement or the conduct of the parties hereunder.

         4.2.2 OTHER USE OF SONY MATERIALS AND SCEA INTELLECTUAL PROPERTY
RIGHTS. Publisher shall not make use of any Sony Materials or any SCEA
Intellectual Property Rights (or any portion thereof) except as authorized by
and in compliance with the provisions of this Agreement. Publisher shall not use
the Executable Software, Sony Materials or SCEA's Confidential Information in
connection with the development of any software for any emulator or other
computer hardware or software system. No right, license or privilege has been
granted to Publisher hereunder concerning the development of any collateral
product or other use or purpose of any kind whatsoever which displays or depicts
any of the Licensed Trademarks. The rights set forth in section 2.1(v) hereto
are limited to the right to sublicense such rights to end users for
non-commercial use; any public performance relating to the Licensed Product or
the System is prohibited unless expressly authorized in writing by SCEA.

     4.3 RESERVATION OF PUBLISHER'S RIGHTS. Separate and apart from Sony
Materials and other rights licensed to Publisher by SCEA hereunder, as between
Publisher and SCEA, Publisher retains all rights, title and interest in and to
the Product Software, and the Product Proposals and Product Information related
thereto, including without limitation Publisher Intellectual Property Rights
therein, as well as Publisher's rights in any source code and other underlying
material such as artwork and music related thereto and any names used as titles
for Licensed Products and other trademarks used by Publisher. Nothing in this
Agreement shall be construed to restrict the rights of Publisher to develop,
distribute or transmit products incorporating the Product Software and such
underlying material (separate and apart from the Sony Materials) for any
hardware platform or service other than the System, or to use Printed Materials
or Advertising Materials approved by SCEA as provided herein (provided that such
printed Materials and/or Advertising Materials do not contain any Licensed
Trademarks) as Publisher determines for such other platforms. SCEA shall not do
or cause to be done any act or thing in any way impairing or tending to impair
or dilute any of Publisher's rights, title or interests hereunder.
Notwithstanding the foregoing, Publisher shall not distribute or transmit
Product Software which is intended to be used with the System via electronic
means or any other means now known or hereafter devised, including without
limitation, via wireless, cable, fiber optic means, telephone lines, microwave
and/or radio waves, or over a network of computers or other devices, except as
otherwise permitted in Section 4.2.1 hereto.

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     4.4 ADDITIONS TO AND DELETIONS FROM LICENSED TERRITORY. SCEA may, from time
to time, add one or more countries to the Licensed Territory by providing
written notice of such addition to Publisher. SCEA shall also have the right to
delete, and intends to delete any countries from the Licensed Territory if, in
SCEA's reasonable judgment, the laws or enforcement of such laws in such
countries do not protect SCEA Intellectual Property Rights. In the event a
country is deleted from the Licensed Territory, SCEA shall deliver to Publisher
a notice stating the number of days within which Publisher shall cease
distributing Licensed Products, and retrieve any Development Tools located, in
any such deleted country. Publisher shall cease distributing Licensed Products,
and retrieve any Development Tools located, in any such deleted country.
Publisher shall cease distributing Licensed Products, and retrieve any
Development Tools, directly or through subcontractors, by the end of the period
stated in such notice.

     4.5 SOURCEBOOK 2 REQUIREMENT. Publisher shall be required to comply with
all the provisions of the SourceBook 2, including without limitation the
Technical Requirements Checklist therein, when published, or within a
commercially reasonable time following its publication to incorporate such
provisions, as if such provisions were set forth in this Agreement.

5.   QUALITY STANDARDS FOR THE LICENSED PRODUCTS.

     5.1 QUALITY ASSURANCE GENERALLY. The Licensed Products (and all portions
thereof) and Publisher's use of any Licensed Trademarks shall be subject to
SCEA's prior written approval, which shall not be unreasonably withheld or
delayed and which shall be within SCEA's sole discretion as to acceptable
standards of quality. SCEA shall have the right at any stage of the development
of a Licensed Product to review such Licensed Product to ensure that it meets
SCEA's quality assurance standards. All Licensed Products will be developed to
substantially utilize the particular capabilities of the System's proprietary
hardware, software and graphics. No approval by SCEA of any element or stage of
development of any Licensed Product shall be deemed an approval of any other
element or stage of such Licensed Product nor shall any such approval be deemed
to constitute a waiver of any of SCEA's rights under this Agreement. In
addition, SCEA's approval of any element or any stage of development of any
Licensed Product shall not release Publisher from any of its representations and
warranties in Section 9.2 hereunder.

     5.2 PRODUCT PROPOSALS.

         5.2.1 SUBMISSION OF PRODUCT PROPOSAL. Publisher shall submit to SCEA
for SCEA's written approval or disapproval, which shall not be unreasonably
withheld or delayed, a written proposal (the "Product Proposal"). Such Product
Proposal must contain all information specified in the SourceBook 2, as well as
any additional information that SCEA may deem to be useful in evaluating the
proposed Licensed Product.

         5.2.2 APPROVAL OF PRODUCT PROPOSAL. After SCEA's review of Publisher's
Product Proposal, Publisher will receive written notice from SCEA of the status
of the Product Proposal, which may range from "Approved" to "Not Approved." Such
conditions shall have the meanings ascribed to them in the SourceBook 2, and may
be changed from time to time by

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SCEA. If a Product Proposal is "Not Approved," then neither Publisher nor any
other Licensed Developer or Licensed Publisher may re-submit such Product
Proposal without significant, substantive revisions. SCEA shall have no
obligation to approve any Product Proposal submitted by Publisher. Any
development conducted by or at the direction of Publisher and any legal
commitment relating to development work shall be at Publisher's own financial
and commercial risk. Publisher shall not construe approval of a Product Proposal
as a commitment by SCEA to grant final approval to such Licensed Product.
Nothing herein shall restrict SCEA from commercially exploiting any
coincidentally similar concept(s) and/or product(s), which have been
independently developed by SCEA, an Affiliate of SCEA or any third party.

         5.2.3 CHANGES TO PRODUCT PROPOSAL. Publisher shall notify SCEA promptly
in writing in the event of any material proposed change in any portion of the
Product Proposal. SCEA's approval of a Product Proposal shall not obligate
Publisher to continue with development or production of the proposed Licensed
Product, provided that Publisher must immediately notify SCEA in writing if it
discontinues, cancels or otherwise delays past the original scheduled delivery
date the development of any proposed Licensed Product. In the event that
Publisher licenses a proposed Licensed Product from another Licensed Publisher
or a Licensed Developer, it shall immediately notify SCEA of such change and
must re-submit such Licensed Product to SCEA for approval in accordance with the
provisions of Section 5.2.1 above.

     5.3 WORK-IN-PROGRESS.

         5.3.1 SUBMISSION AND REVIEW OF WORK-IN-PROGRESS. SCEA shall require
Publisher to submit to SCEA work-in-progress on Licensed Products at certain
intervals throughout their development and, upon written notice to Publisher, at
any time during the development process. Upon approval of the Product Proposal,
Publisher must, within the time frame indicated in the approval letter,
communicate with SCEA and mutually agree on a framework for the review of such
Licensed Product throughout the development process ("Review Process"). Once the
Review Process has begun, Publisher shall be responsible for submitting
work-in-progress to SCEA in accordance with such Review Process. FAILURE TO
SUBMIT WORK-IN-PROGRESS IN ACCORDANCE WITH ANY STAGE OF THE REVIEW PROCESS MAY,
AT SCEA'S DISCRETION, RESULT IN REVOCATION OF APPROVAL OF SUCH PRODUCT PROPOSAL.

         5.3.2 APPROVAL OF WORK-IN-PROGRESS. SCEA shall have the right to
approve, reject or require additional information with respect to each stage of
the Review Process. SCEA shall specify in writing the reasons for any such
rejection or request for additional information and shall state what corrections
and/or improvements are necessary. If any stage of the Review Process is not
provided to SCEA or is not successfully met after a reasonable cure period
agreed to between SCEA and Publisher, SCEA shall have the right to revoke the
approval of Publisher's Product Proposal.

         5.3.3 CANCELLATION OR DELAY; CONDITIONS OF APPROVAL. Licensed Products
which are canceled by Publisher or are late in meeting the final Executable
Software delivery date by more than three (3) months (without agreeing with SCEA
on a modified final delivery date) shall be subject to the termination
provisions set forth in Section 14.3 hereto. In addition,

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failure to make changes required by SCEA to the Licensed Product at any stage of
the Review Process, or making material changes to the Licensed Product without
SCEA's approval, may subject Publisher to the termination provisions set forth
in Section 14.3 hereto.

     5.4 APPROVAL OF EXECUTABLE SOFTWARE. On or before the date specified in the
Product Proposal or as determined by SCEA pursuant to the Review Process,
Publisher shall deliver to SCEA for its inspection and evaluation, a final
version of the Executable Software for the proposed Licensed Product. SCEA will
evaluate such Executable Software and notify Publisher in writing of its
approval or disapproval, which shall not be unreasonably withheld or delayed. If
such Executable Software is disapproved, SCEA shall specify in writing the
reasons for such disapproval and state what corrections and improvements are
necessary. After making the necessary corrections and improvements, Publisher
shall submit a new version of such Executable Software for SCEA's approval. SCEA
shall have the right to disapprove Executable Software if it fails to comply
with SCEA's corrections or improvements or one or more conditions as set forth
in the SourceBook 2 with no obligation to review all elements of any version of
Executable Software. All final versions of Executable Software shall be
submitted in the format prescribed by SCEA and shall include such number of
Master Discs as SCEA may require from time to time. Publisher hereby (i)
warrants that all final versions of Executable Software are fully tested; (ii)
shall use its best efforts to ensure such Executable Software is fully debugged
prior to submission to SCEA; and (iii) warrants that all versions of Executable
Software comply or will comply with standards set forth in the SourceBook 2 or
other documentation provided by SCEA to Publisher. In addition, prior to
manufacture of Executable Software, Publisher must sign an accountability form
stating that (x) Publisher approves the release of such Executable Software for
manufacture in its current form and (y) Publisher shall be fully responsible for
any problems related to such Executable Software.

     5.5 PRINTED MATERIALS.

         5.5.1 COMPLIANCE WITH GUIDELINES. For each proposed Licensed Product,
Publisher shall be responsible, at Publisher's expense, for creating and
developing Printed Materials. All Printed Materials shall comply with the
Guidelines, which may be amended from time to time, provided that Publisher
shall, except as otherwise provided herein, only be required to implement
amended Guidelines in subsequent orders of Printed Materials and shall not be
required to recall or destroy previously manufactured Printed Materials, unless
such Printed Materials do not comply with the original requirements in the
Guidelines or unless explicitly required to do so in writing by SCEA.

         5.5.2 SUBMISSION AND APPROVAL OF PRINTED MATERIALS. No later than
submission of final Executable Software for a proposed Licensed Product,
Publisher shall also deliver to SCEA, for review and evaluation, the proposed
final Printed Materials and a form of limited warranty for the proposed Licensed
Product. Failure to meet any scheduled release dates for a Licensed Product is
solely the risk and responsibility of Publisher, and SCEA assumes no
responsibility for Publisher failing to meet such scheduled release dates due to
this submission process. The quality of such Printed Materials shall be of the
same quality as that associated with other commercially available high quality
software products. If any of the Printed Materials are disapproved, SCEA shall
specify the reasons for such disapproval and state what corrections

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are necessary. SCEA shall have no liability to Publisher for costs incurred or
irrevocably committed to by Publisher for production of Printed Materials that
are disapproved by SCEA. After making the necessary corrections to any
disapproved Printed Materials, Publisher must submit new Printed Materials for
approval by SCEA. SCEA shall not unreasonably withhold or delay its review of
Printed Materials.

     5.6 ADVERTISING MATERIALS.

         5.6.1 SUBMISSION AND APPROVAL OF ADVERTISING MATERIALS. Pre-production
samples of all Advertising Materials shall be submitted by Publisher to SCEA, at
Publisher's expense, prior to any actual production, use or distribution of any
such items by Publisher or on its behalf. SCEA shall evaluate and approve such
Advertising Materials, which approval shall not bc unreasonably withheld or
delayed, as to the following standards: (i) the content, quality, and style of
the overall advertisement; (ii) the quality, style, appearance and usage of any
of the Licensed Trademarks; (iii) appropriate references of any required
notices; and (iv) compliance with the Guidelines. If any of the Advertising
Materials are disapproved, SCEA shall specify the reasons for such disapproval
and state what corrections are necessary. SCEA may require Publisher to
immediately withdraw and reprint any Advertising Materials that have been
published but have not received the written approval of SCEA. SCEA shall have no
liability to Publisher for costs incurred or irrevocably committed to by
Publisher for production of Advertising Materials that are disapproved by SCEA.
For each Licensed Product, Publisher shall be required to deliver to SCEA an
accountability form stating that all Advertising Materials for such Licensed
Product comply or will comply with the Guidelines for use of the Licensed
Trademarks. After making the necessary corrections to any disapproved
Advertising Materials, Publisher must submit new proposed Advertising Materials
for approval by SCEA.

         5.6.2 FAILURE TO COMPLY; THREE STRIKES PROGRAM. PUBLISHERS WHO FAIL TO
OBTAIN SCEA'S APPROVAL OF ADVERTISING MATERIALS PRIOR TO BROADCAST OR
PUBLICATION SHALL BE SUBJECT TO THE PROVISIONS OF THE "THREE STRIKES" PROGRAM
OUTLINED IN THE SOURCEBOOK 2. FAILURE TO OBTAIN SCEA'S APPROVAL OF ADVERTISING
MATERIALS COULD RESULT IN TERMINATION OF THIS LPA OR TERMINATION OF APPROVAL OF
THE LICENSED PRODUCT, OR COULD SUBJECT PUBLISHER TO THE PROVISIONS OF SECTION
14.4 HERETO. Failure to meet any scheduled release dates for Advertising
Materials is solely the risk and responsibility of Publisher, and SCEA assumes
no responsibility for Publisher failing to meet such scheduled release dates due
to approval requirements as set forth in this Section.

         5.6.3 SCEA MATERIALS. Subject in each instance to the prior written
approval of SCEA, Publisher may use advertising materials owned by SCEA
pertaining to the System or to the Licensed Trademarks on such Advertising
Materials as may, in Publisher's judgment, promote the sale of Licensed
Products.

     5.7 RATING REQUIREMENTS. If required by SCEA or any governmental entity,
Publisher shall submit each Licensed Product to a consumer advisory ratings
system designated by SCEA and/or such governmental entity for the purpose of
obtaining rating code(s) for each Licensed Product. Any and all costs and
expenses incurred in connection with obtaining such rating code(s) shall be
borne solely by Publisher. Any required consumer advisory rating code(s)

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procured hereby shall be displayed on the Licensed Product and in the associated
Printed Materials and Advertising Materials, at Publisher's cost and expense, in
accordance with the SourceBook 2 or other documentation provided by SCEA to
Publisher.

     5.8 PUBLISHER'S ADDITIONAL QUALITY ASSURANCE OBLIGATIONS. If at any time or
times subsequent to the approval of Executable Software and Printed Materials,
SCEA identifies any material defects (such materiality to be determined by SCEA
in its sole discretion) with respect to the Licensed Product, or in the event
that SCEA identifies any improper use of its Licensed Trademarks or Sony
Materials with respect to the Licensed Product, or any such material defects or
improper use are brought to the attention of SCEA, Publisher shall, at no cost
to SCEA, promptly correct any such material defects, or improper use of Licensed
Trademarks or Sony Materials, to SCEA's commercially reasonable satisfaction,
which may include, if necessary in SCEA's judgment, the recall and re-release of
such Licensed Product. In the event any Units of Licensed Products create my
risk of loss or damage to any property or injury to any person, Publisher shall
immediately take effective steps, at Publisher's sole liability and expense, to
recall and/or to remove such defective Unites from any affected channels of
distribution, provided, however, that if Publisher is not acting as the
distributor and/or seller for the Licensed Products, its obligation hereunder
shall be to use its best efforts to arrange removal of such Licensed Product
from channels of distribution. Publisher shall provide all end-user support for
the Licensed Products and SCEA expressly disclaims any obligation to provide
end-user support on Publisher's Licensed Products.

6.   MANUFACTURE OF LICENSED PRODUCTS.

     6.1 MANUFACTURE OF UNITS. Upon approval of Executable Software and
associated Printed Materials pursuant to Section 5, and subject to Sections
6.1.2, 6.1.3 and 6.1.4 below, the Designated Manufacturing Facility will, in
accordance with the terms and conditions set forth in this Section 6, and at
Publisher's expense, (a) manufacture PlayStation 2 Format Discs for Publisher;
(b) manufacture Publisher's Packaging and/or Printed Materials; and/or (c)
assemble the PlayStation 2 Format Discs with the Printed Materials and the
Packaging. Publisher shall comply with all Manufacturing Specifications related
to the particular terms set forth herein. SCEA reserves the right to insert or
require the Publisher to insert certain Printed Materials relating to the System
or Licensed Trademarks into each Unit.

         6.1.1 MANUFACTURE OF PLAYSTATION 2 FORMAT DISCS.

               6.1.1.1 DESIGNATED MANUFACTURING FACILITY. To insure
compatibility of the PlayStation 2 Format Discs with the System, consistent
quality of the Licensed Product and incorporation of anti-piracy security
systems, SCEA shall designate and license a Designated Manufacturing Facility to
reproduce PlayStation 2 Format Discs. Publisher shall purchase all of its
requirements for PlayStation 2 Format Discs from such Designated Manufacturing
Facility during the term of the Agreement. Any Designated Manufacturing Facility
shall be a third party beneficiary of this Agreement.

               6.1.1.2 CREATION OF MASTER CD-ROM OR DVD-ROM. Pursuant to Section
5.4 in connection with final testing of Executable Software, Publisher shall
provide

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SCEA with the number of Master Discs specified in the SourceBook 2. A Designated
Manufacturing Facility shall create from one of the fully approved Master Discs
provided by Publisher the original master CD-ROM or DVD-ROM, from which all
other copies of the Licensed Product are to be replicated. Publisher shall be
responsible for the costs, as determined by the Designated Manufacturing
Facility, of producing such original master. In order to insure against loss or
damage to the copies of the Executable Software furnished to SCEA, Publisher
will retain duplicates of all Master Discs, and neither SCEA nor any Designated
Manufacturing Facility shall be liable for loss of or damage to any Master Discs
or Executable Software.

         6.1.2 MANUFACTURE OF PRINTED MATERIALS.

               6.1.2.1 MANUFACTURE BY DESIGNATED MANUFACTURING FACILITY. If
Publisher elects to obtain Printed Materials from a Designated Manufacturing
Facility, Publisher shall deliver all SCEA-approved Printed Materials to that
Designated Manufacturing Facility, at Publisher's sole risk and expense, and the
Designated Manufacturing Facility will manufacture such Printed Materials in
accordance with this Section 6. In order to insure against loss or damage to the
copies of the Printed Materials furnished to SCEA, Publisher will retain
duplicates of all Printed Materials, and neither SCEA nor any Designated
Manufacturing Facility shall be liable for loss of or damage to any such Printed
Materials.

               6.1.2.2 MANUFACTURE BY ALTERNATE SOURCE. Subject to SCEA's
approval as provided in Section 5.5.2 hereto and in this Section, Publisher may
elect to be responsible for manufacturing its own Printed Materials (other than
any Artwork which may be placed directly upon the PlayStation Disc, which
Publisher will supply to the Designated Manufacturing Facility for placement),
at Publisher's sole risk and expense. Prior to production of each order,
Publisher shall be required to supply SCEA with samples of any Printed Materials
not produced or supplied by a Designated Manufacturing Facility, at no charge to
SCEA or Designated Manufacturing Facility, for SCEA's approval with respect to
the quality thereof. SCEA shall have the right to disapprove any Printed
Materials that do not comply with the Manufacturing Specifications.
Manufacturing Specifications for Printed Materials shall be comparable to
manufacturing specifications applied by SCEA to its own software products for
the System. If Publisher elects to supply its own Printed Materials, neither
SCEA nor any Designated Manufacturing Facility shall be responsible for any
delays arising form use of Publisher's own Printed Materials.

         6.1.3 MANUFACTURE OF PACKAGING.

               6.1.3.1 MANUFACTURE BY DESIGNATED MANUFACTURING FACILITY. To
ensure consistent quality of the Licensed Products, SCEA may designate and
license a Designated Manufacturing Facility to reproduce proprietary Packaging
for the System. If SCEA creates proprietary Packaging for the System, then
Publisher shall purchase all of its requirements for such proprietary Packaging
from a Designated Manufacturing Facility during the term of the Agreement, and
the Designated Manufacturing Facility will manufacture such Packaging in
accordance with this Section 6.

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               6.1.3.2 MANUFACTURE BY ALTERNATE SOURCE. If SCEA elects to use
standard, non-proprietary Packaging for the System, then Publisher may elect to
be responsible for manufacturing its own Packaging (other than any proprietary
labels and any portion of a container containing Licensed Trademarks, which
Publisher must purchase from a Designated Manufacturing Facility). Publisher
shall assume all responsibility for the creation of such Packaging at
Publisher's sole risk and expense. Publisher shall be responsible for encoding
and printing proprietary edge labels provided by a Designated Manufacturing
Facility with information reasonably specified by SCEA from time to time and
will apply such labels to each Unit of the Licensed Product as reasonably
specified by SCEA. Prior to production of each order, Publisher shall be
required to supply SCEA with samples of any Packaging not produced or supplied
by a Designated Manufacturing Facility, at no charge to SCEA or Designated
Manufacturing Facility, for SCEA's approval with respect to the quality thereof.
SCEA shall have the right to disapprove any Packaging that does not comply with
the Manufacturing Specifications. Manufacturing Specifications for Packaging
shall be comparable to manufacturing specifications applied by SCEA to its own
software products for the System. If Publisher procures Packaging from an
alternate source, then it must also procure assembly services from an alternate
source. If Publisher elects to supply its own Packaging, neither SCEA nor any
Designated Manufacturing Facility shall be responsible for any delays arising
from use of Publisher's own Packaging.

         6.1.4 ASSEMBLY SERVICES. Publisher may either procure assembly services
from a Designated Manufacturing Facility or from an alternate source. If
Publisher elects to be responsible for assembling the Licensed Products, then
the Designated Manufacturing Facility shall ship the component parts of the
Licensed Product to a destination provided by Publisher, at Publisher's sole
risk and expense. SCEA shall have the rights to inspect any assembly facilities
utilized by Publisher in order to determine if the component parts of the
Licensed Products are being assembled in accordance with SCEA's quality
standards. SCEA may require that Publisher recall any Licensed Products that do
not contain proprietary labels or other material component parts or that
otherwise fail to comply with the Manufacturing Specifications. If Publisher
elects to use alternate assembly facilities, neither SCEA nor any Designated
Manufacturing Facility shall be responsible for any delays or missing component
parts arising form use of alternate assembly facilities.

     6.2 PRICE, PAYMENT AND TERMS.

         6.2.1 PRICE. The applicable price for manufacture of any Units of
Licensed Products ordered hereunder shall be provided to Publisher by the
Designated Manufacturing Facility. Purchase shall be subject to the terms and
conditions set out in any purchase order form supplied to Publisher by the
Designated Manufacturing Facility.

         6.2.2 ORDERS. Publisher shall issue to a Designated Manufacturing
Facility a written Purchase Order(s) in the form set forth and containing the
information required for the Manufacturing Specifications, with a copy to SCEA.
All orders shall be subject to approval by SCEA, which shall not be unreasonably
withheld or delayed. Purchase Orders issued by Publisher to a Designated
Manufacturing Facility for each Licensed Product approved by SCEA

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shall be non-cancelable and be subject to the order requirements of the
Designated Manufacturing Facility.

         6.2.3 PAYMENT TERMS. Purchase Orders will be invoiced as soon as
reasonably practical after receipt, and such invoice will include both
manufacturing price and royalties payable pursuant to Section 8.1 or 8.2 hereto
for each Unit of Licensed Products ordered. Each invoice will be payable either
on a cash-in-advance basis or pursuant to a letter of credit, or, at SCEA's sole
discretion, on credit terms. Terms for cash-in-advance and letter of credit
payments shall be as set forth in the SourceBook 2. All amounts hereunder shall
be payable in United States dollars. All associated banking charges with respect
to payments of manufacturing costs and royalties shall be borne solely by
Publisher.

               6.2.3.1 CREDIT TERMS. SCEA may at its sole discretion extend
credit terms and limits to Publisher. SCEA may also revoke such credit terms and
limits at its sole discretion. If Publisher qualifies for credit terms, then
orders will be invoiced upon shipment of Licensed Products and each invoice will
be payable within thirty (30) days of the date of the invoice. Any overdue sums
shall bear interest at the rate of one and one-half (1-1/2%) percent per month
or such lower rate as may be the maximum rate permitted under applicable law,
from the date when payment first became due to and including the date of payment
thereof. Publisher shall be additionally liable for all costs and expenses of
collection, including without limitation, reasonable fees for attorneys and
court costs.

               6.2.3.2 GENERAL TERMS. No deduction may be made from remittances
unless an approved credit memo has been issued by a Designated Manufacturing
Facility. Neither SCEA nor a Designated Manufacturing Facility shall be
responsible for shortage or breakage with respect to any order if component
parts and/or assembly services are obtained from alternate sources. Each
shipment to Publisher shall constitute a separate sale, whether said shipment be
whole or partial fulfillment of any order. Nothing in this Agreement shall
excuse or be construed as a waiver of Publisher's obligation to timely provide
any and all payments owed to SCEA and Designated Manufacturing Facility.

     6.3 DELIVERY OF LICENSED PRODUCTS. Neither SCEA nor any Designated
Manufacturing Facility shall have an obligation to store completed Units of
Licensed Products. Publisher may either specify a mode of delivery or allow
Designated Manufacturing Facility to select a mode of delivery.

     6.4 OWNERSHIP OF MASTER DISCS. Due to the proprietary nature of the
mastering process, neither SCEA nor a Designated Manufacturing Facility shall
under any circumstances release any original master CD-ROM, Master Discs or
other in-process materials to Publisher. All such materials shall be and remain
the sole property of SCEA or Designated Manufacturing Facility. Notwithstanding
the foregoing, Publisher Intellectual Property Rights contained in Product
Software that is contained in such in-process materials is, as between SCEA and
Publisher, the sole and exclusive property of Publisher or its licensors (other
than SCEA and/or its affiliates).

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Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

7.   MARKETING AND DISTRIBUTION.

     7.1 MARKETING GENERALLY. In accordance with the provisions of this
Agreement and at no expense to SCEA, Publisher shall, and shall direct its
distributors to, diligently market, sell and distribute the Licensed Products,
and shall use commercially reasonable efforts to stimulate demand for such
Licensed Products in the Licensed Territory and to supply any resulting demand.
Publisher shall use its reasonable best efforts to protect the Licensed Products
from and against illegal reproduction and/or copying by end users or by any
other persons or entities.

     7.2 SAMPLES. Publisher shall provide to SCEA, at no additional cost, for
SCEA's internal use, [*] sample copies of each Licensed Product. Publisher shall
pay any manufacturing costs to the Designated Manufacturing Facility in
accordance with Section 6.2, but shall not be obligated to pay royalties, in
connection with such sample Units. In the event that Publisher assembles any
Licensed Product using an alternate source, Publisher shall be responsible for
shipping such sample Units to SCEA at Publisher's cost and expense. SCEA shall
not directly or indirectly resell any such sample copies of the Licensed
Products without Publisher's prior written consent. SCEA may give sample copies
to its employees, provided that it uses its reasonable efforts to ensure that
such copies are not sold into the retail market. In addition, subject to
availability, Publisher shall sell to SCEA additional quantities of Licensed
Products at the Wholesale Price for such Licensed Product. Any changes to SCEA's
policy regarding sample Units shall be set forth in the SourceBook 2.

     7.3 MARKETING PROGRAMS OF SCEA. From time to time, SCEA may invite
Publisher to participate in promotional or advertising opportunities that may
feature one or more Licensed Products from one or more Licensed Publishers.
Participation shall be voluntary and subject to terms to be determined at the
time of the opportunity. In the event Publisher elects to participate, all
materials submitted by Publisher to SCEA shall be submitted subject to Section
10.2 hereunder and delivery of such materials to SCEA shall constitute
acceptance by Publisher of the terms of the offer. Moreover, SCEA may use the
Generic Line on all multi-product marketing materials, unless otherwise agreed
in writing.

     7.4 DEMONSTRATION DISC PROGRAMS. SCEA may, from time to time, provide
opportunities for Publisher to participate in SCEA Demo Disc programs. In
addition, SCEA may, from time to time, grant to Publisher the right to create
Third Party Demo Discs pursuant to SCEA Established Third Party Demo Disc
Programs. The specifications with respect to the approval, creation,
manufacture, marketing, distribution and sale of any such demo disc programs
shall be set forth in the SourceBook 2 or in other documentation to be provided
by SCEA to Publisher. Except as otherwise specifically set forth herein, in the
SourceBook 2 or in other documentation, Third Party Demo Discs shall be
considered "Licensed Products" and shall be subject in all respects to the terms
and conditions of this Agreement pertaining to Licensed Products. In addition,
the following procedures shall also apply to SCEA Demo Discs and Third Party
Demo Discs.

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         7.4.1 SCEA DEMO DISCS.

               7.4.1.1 LICENSE. SCEA may, but shall not be obligated to, invite
Licensed Publishers to participate in any SCEA Demo Disc program. Participation
by Publisher in an SCEA Demo Disc program shall be optional. If Publisher elects
to participate in an SCEA Demo Disc program and provides Product Information to
SCEA in connection thereto, Publisher shall thereby grant to SCEA a royalty-free
license during the term of this Agreement in the Licensed Territory to
manufacture, use, sell, distribute, market, advertise and otherwise promote
Publisher's Product Information as part of such SCEA Demo Disc program. In
addition, Publisher shall grant SCEA the right to feature Publisher and Licensed
Product names in SCEA Demo Disc Advertising Materials and to use copies of
screen displays generated by the code, representative video samples or other
Product Information in such SCEA Demo Disc Advertising Materials. All decisions
relating to the selection of first and third party Product Information and all
other aspects of SCEA demo Discs shall be in the sole discretion of SCEA.

               7.4.1.2 SUBMISSION AND APPROVAL OF PRODUCT INFORMATION. Upon
receipt of written notice that SCEA has tentatively chosen Publisher's Product
Information for inclusion in an SCEA Demo Disc, Publisher shall deliver to SCEA
such requested Product Information by no later than the deadline set forth in
such notice. Separate notice will be sent for each SCEA Demo Disc, and Publisher
must sign each notice prior to inclusion in such SCEA Demo Disc. Publisher shall
include its own Legal Copy on the title screen or elsewhere in the Product
Information submitted to SCEA. SCEA shall only provide the Generic Line on the
SCEA Demo Disc title screen and packaging. Publisher's Product Information shall
comply with SCEA's technical specifications provided to Publisher. SCEA reserves
the right to review and test the Product Information provided and request
revisions prior to inclusion on the SCEA Demo Disc. If SCEA requests changes to
the Product Information and Publisher elects to continue to participate in such
Demo Disc, Publisher shall make such changes as soon as possible after receipt
of written notice of such requested changes from SCEA, but not later than the
deadline for receipt of Product Information. Failure to make such changes and
provide the modified Product Information to SCEA by the deadline shall result in
the Product Information being removed from the SCEA Demo Disc. Costs associated
with preparation of Product Information supplied to SCEA shall be borne solely
by Publisher. Except as otherwise provided in this Section, SCEA shall not edit
or modify Product Information provided to SCEA by Publisher without Publisher's
consent, not to be unreasonably withheld. SCEA shall have the right to use
subcontractors to assist in the development of any SCEA Demo Disc. With respect
to Product Information provided by Publisher in demo form, the demo delivered to
SCEA shall not constitute the complete Licensed Product and shall be, at a
minimum, an amount sufficient to demonstrate the Licensed Product's core
features and value, without providing too much information so as to give
consumers a disincentive to purchase the complete Licensed Product.

               7.4.1.3 NO OBLIGATION TO PUBLISH. Acceptance of Product
Information for test and review shall not be deemed confirmation that SCEA shall
include the Product Information on an SCEA Demo Disc, nor shall it constitute
approval of any other element of the Licensed Product. SCEA reserves the right
to choose from products submitted from other Licensed Publishers and first party
products to determine the products to be included in SCEA Demo Discs, and
Publisher's Licensed Products will not be guaranteed prominence or

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preferential treatment on any SCEA Demo Disc. Nothing herein shall be construed
as creating an obligation of SCEA to publish Product Information submitted by
Publisher in any SCEA Demo Disc, nor shall SCEA be obligated to publish,
advertise or promote any SCEA Demo Disc.

               7.4.1.4 SCEA DEMO DISCS SOLD AT RETAIL. Publisher is aware and
acknowledges that certain SCEA Demo Discs may be distributed and sold by SCEA in
the retail market. If Publisher elects to participate in any SCEA Demo Disc
program which is sold in the retail market, as notified by SCEA to Publisher,
Publisher acknowledges prior to participation in any such SCEA Demo Disc that it
is aware of no limitations regarding Product Information provided to SCEA
pursuant to the terms of this Agreement which would in any way restrict SCEA's
ability to distribute or sell such SCEA Demo Disc at retail, nor does Publisher
or its licensors (other than SCEA and/or its affiliates) have any anticipation
of receiving any compensation from such retail sales. In the event that SCEA
institutes a SCEA Demo Disc in which a fee and/or royalty is charged to
Publisher, SCEA and Publisher will enter into a separate agreement regarding
such SCEA Demo Disc.

         7.4.2 THIRD PARTY DEMO DISCS.

               7.4.2.1 LICENSE. Publisher may participate in any SCEA
Established Third Party Demo Disc Program. Publisher shall notify SCEA of its
intention to participate in any such program, and upon receipt of such notice,
SCEA shall grant to Publisher the right and license to use Licensed Products in
Third Party Demo Discs and to use, distribute, market, advertise and otherwise
promote (and, if permitted in accordance with the terms of any SCEA Established
Third Party Program or otherwise permitted by SCEA, to sell) such Third Party
Demo Discs in accordance with the SourceBook 2, which may be modified from time
to time at the sole discretion of SCEA. Unless separately agreed in writing with
SCEA, Third Party Demo Discs shall not be used, distributed, promoted, bundled
or sold in conjunction with other products. In addition, SCEA hereby consents to
the use of the Licensed Trademarks in connection with Third Party Demo Discs,
subject to the approval procedures set forth in this Agreement. If any SCEA
Established Third Party Demo Disc Program is specified by SCEA to be for
promotional use only and not for resale, and such Third Party Demo Disc is
subsequently discovered to be for sale, Publisher's right to produce Third Party
Demo Discs shall thereupon be automatically revoked, and SCEA shall have the
right to terminate any related Third Party Demo Discs in accordance with the
terms of Section 14.3 or 14.4 thereto.

               7.4.2.2 SUBMISSION AND APPROVAL OF THIRD PARTY DEMO DISCS.
Publisher shall deliver to SCEA, for SCEA's prior approval, a final version of
each Third Party Demo Disc, in a format prescribed by SCEA. Such Third Party
Demo Disc shall comply with all requirements provided to Publisher by SCEA in
the SourceBook 2 of otherwise. In addition, SCEA shall evaluate the Third Party
Demo Disc in accordance with the approval provisions for Executable Software and
Printed Materials set forth in Sections 5.4 and 5.5, respectively. Furthermore,
Publisher shall obtain the approval of SCEA in connection with any Advertising
Materials relating to the Third Party Demo Discs in accordance with the approval
provisions set forth in Section 5.6. Costs associated with Third Party Demo
Discs shall be borne solely by Publisher. No approval by SCEA of any element of
any Third Party Demo Disc shall be deemed an approval of any other element
thereto, nor does any such approval constitute final approval

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for the related Licensed Product. Unless otherwise permitted by SCEA, Publisher
shall clearly and conspicuously state on all Third Party Demo Disc Packaging and
Printed Materials that the Third Party Demo Disc is for promotional purposes
only and not for resale.

               7.4.2.3 MANUFACTURE AND ROYALTY OF THIRD PARTY DEMO DISCS.
Publisher shall comply with all Manufacturing Specifications with respect to the
manufacture and payment for manufacturing costs of Third Party Demo Discs, and
Publisher shall also comply with all terms and conditions of Section 6 hereto.
No costs incurred in the development, manufacture, licensing, production,
marketing and/or distribution (and if permitted by SCEA, sale) of the Third
Party Demo Disc shall be deducted from any amounts payable to SCEA hereunder.
Royalties on Third Party Demo Discs shall be as provided in Section 8.2.

     7.5 CONTESTS AND SWEEPSTAKES OF PUBLISHER. SCEA acknowledges that, from
time to time, Publisher may conduct contests and sweepstakes to promote Licensed
Products. SCEA shall permit Publisher to include contest or sweepstakes
materials in Printed Materials and Advertising Materials, subject to compliance
with the approval provisions of Section 5.5 and 5.6 hereunder, compliance with
the provisions of Section 9.2 and 10.2 hereunder, and subject to the following
additional terms and conditions:

     (i) Publisher represents that it has retained the services of a fulfillment
house to administer the contest or sweepstakes and if it has not retained the
services of a fulfillment house, Publisher represents and warrants that it has
the expertise to conduct such contests or sweepstakes, and in any event,
Publisher shall assume full responsibility for all aspects of such contest or
sweepstakes;

     (ii) Publisher warrants that each contest, sweepstakes, and promotion,
comply with local, state and federal laws or regulations;

     (iii) Publisher represents and warrants that it has obtained the consent of
all holders of intellectual property rights required to be obtained in
connection with each contest or sweepstakes including, but not limited to, the
consent of any holder of copyrights or trademarks relating to any Advertising
Materials publicizing the contest or sweepstakes, or the prizes being awarded to
winners of the contest or sweepstakes; and

     (iv) Publisher shall make available to SCEA all contest and sweepstakes
material prior to publication in accordance with the approval process set forth
in Section 5.5 or 5.6.

Approval by SCEA of contest or sweepstakes materials for use in the Printed
Materials or Advertising Material (or any use of the System or Licensed Products
as prizes in such contest or sweepstakes) shall not constitute an endorsement by
SCEA or such contest or sweepstakes, nor shall such acceptance be construed as
SCEA having reviewed and approved such materials or compliance with any federal
or state law, statute, regulation, order or the like, which shall be Publisher's
sole responsibility.

     7.6 PLAYSTATION WEBSITE. All Licensed Publishers shall be required to
provide Product information for a web page for each of its License Products for
display on the PlayStation promotional website, or other website or websites as
may be operated by SCEA from

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Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

time to time in connection with the promotion of the PlayStation brand.
Specifications for Product Information for such web pages shall be as provided
in the SourceBook 2. Publisher shall provide SCEA with such Product Information
for each Licensed Product upon submission of Printed Materials to SCEA for
approval in accordance with Section 5.5.2 hereto. Publisher shall also provide
updates to such web pages in a timely manner as required by SCEA in updates to
the SourceBook 2.

     7.7 DISTRIBUTION.

         7.7.1 DISTRIBUTION CHANNELS. Publisher may use such distribution
channels as Publisher deems appropriate, including the use of third party
distributors, resellers, dealers and sales representatives. In the event that
Publisher elects to have one of its Licensed Products distributed and sold by
another Licensed Publisher, Publisher must provide SCEA with advance written
notice of such election, the name of the Licensed Publisher and any additional
information requested by SCEA regarding the nature of the distribution service
provided by such Licensed Publisher prior to manufacture of such Licensed
Product.

         7.7.2 LIMITATIONS ON DISTRIBUTION. Notwithstanding any other provisions
in this Agreement, Publisher shall not directly or indirectly, solicit order
from or sell any Units of the Licensed Products to any person or entity outside
of the Licensed Territory. In addition, Publisher shall not directly or
indirectly solicit orders for or sell any Units of the Licensed Products in any
situation where Publisher knows or reasonably should know that such Licensed
Products may be exported or resold outside of the Licensed Territory.

8.   ROYALTIES.

     8.1 APPLICABLE ROYALTIES ON LICENSED PRODUCTS.

         8.1.1 INITIAL ORDERS. Publisher shall pay SCEA, either directly or
through its designee, a per title royalty in United States dollars for each Unit
of the Licensed Products manufactured based on the initial Wholesale Price of
the Licensed Product, as follows:

--------------------------------------------------------------------------------
                 Wholesale Price        Per Title Royalty
--------------------------------------------------------------------------------
Band 1             $[*] to $[*]             $[*]
Band 2             $[*] to $[*]             $[*]
Band 3             $[*] to $[*]             $[*]
Band 4             $[*] to $[*]             $[*]
Band 5             $[*]  +                  [*]
--------------------------------------------------------------------------------

In the absence of satisfactory evidence to support the WSP, the royalty rate
that shall apply will be [*] per unit.

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Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

         8.1.2 REORDERS AND OTHER PROGRAMS. Royalties on additional orders to
manufacture a specific Licensed Product shall be the royalty determined by the
initial Wholesale Price as reported by Publisher for that Licensed Product
regardless of the wholesale price of the Licensed Product at the time of
reorder, except in the event that the Wholesale Price increases for such
Licensed Product, in which case the royalty shall be adjusted upwards to reflect
the higher Wholesale Price. Licensed Products qualifying for SCEA's "Greatest
Hits" programs or other programs offered by SCEA shall be subject to the
royalties applicable for such programs. Publisher acknowledges that as of the
date of execution of this Agreement no "Greatest Hits" program exists for the
PlayStation 2 Third Party licensing program.

     8.2 THIRD PARTY DEMO DISC PROGRAM ROYALTIES. Publisher shall pay SCEA a per
Unit royalty in United States dollars of [*] for each Third Party Demo Disc Unit
manufactured. The quantity of Units ordered shall comply with the terms of such
SCEA Established Third Party Demo Disc Program.

     8.3 PAYMENT. Payment of royalties under Sections 8.1 and 8.2 shall be made
to SCEA through its Designated Manufacturing Facility concurrent with the
placement of an order to manufacture Licensed Product and payment of
manufacturing costs in accordance with the terms and conditions set forth in
Section 6.2.3, unless otherwise agreed in writing with SCEA. At the time of
placing an order to manufacture a Licensed Products, Publisher shall submit to
SCEA an accurate accounting statement setting out the number of units of License
Products to be manufactured, projected initial wholesale price, applicable
royalty, and total amount due SCEA. In addition, Publisher shall submit to SCEA
prior to placing the initial order for each Licensed Product a separate
certification, in the form provided by SCEA in the SourceBook 2, signed by
officers of Publisher that certifies that the Wholesale Price provided to SCEA
is accurate and attaching such documentation supporting the WSP as requested by
SCEA. Payment shall be made prior to manufacture unless SCEA has agreed to
extend credit terms to Publisher in writing pursuant to Section 6.2.3.3. Nothing
herein shall be construed as requiring SCEA to extend credit terms to Publisher.
The accounting statement due hereunder shall be subject to the audit and
accounting provisions set forth in paragraph 16.2 below. No costs incurred in
the development, manufacture, marketing, sale and/or distribution of the
Licensed Products shall be deducted from any royalties payable to SCEA
hereunder. Similarly, there shall be no deduction from the royalties otherwise
owed to SCEA hereunder as a result of any uncollectible accounts owed to SCEA
hereunder as a result of any uncollectible accounts owed to Publisher or for any
credits, discounts, allowances or returns which Publisher may credit or
otherwise grant to any third party customer of any Units of the License
Products, or for any taxes, fees, assessments or expenses of any kind which may
be incurred by Publisher in connection with its sale or distribution of any
Units of the Licensed Products or arising with respect to the payment of
royalties hereunder. In addition to the royalty payments provided to SCEA
hereunder, Publisher shall be solely responsible for and bear any cost relating
to any withholding taxes or other such assessments which may be imposed by any
governmental authority with respect to the royalties paid to SCEA hereunder;
provided, however, that SCEA shall not manufacture Licensed Products outside of
the United States without the prior consent of Publisher. Publisher shall
provide SCEA with official tax receipts or other such documentary evidence
issued by the applicable tax authorities sufficient to substantiate that any
such taxes or assessments have in fact been paid.

ACCLAIM ENTERTAINMENT, INC., AN
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Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

     8.4 REBATE PROGRAMS. Publisher shall be eligible to participate in one of
three rebate programs offered by SCEA; the Standard Rebate Program, the Level 1
Rebate program, or the Level 2 Rebate program. If Publisher qualifies for such
rebates as set forth herein; rebates shall be credited to Publisher's account as
provided below:

--------------------------------------------------------------------------------
Units Ordered     Standard          Level 1            Level 2
--------------------------------------------------------------------------------
[*] - [*]            [*]%             [*]%               [*]%

[*] - [*]            [*]%             [*]%               [*]%

[*] - [*]            [*]%             [*]%               [*]%

[*] - [*]            [*]%             [*]%               [*]%

[*] - [*]            [*]%             [*]%               [*]%

[*] - [*]            [*]%             [*]%               [*]%

[*]                  [*]%             [*]%               [*]%
--------------------------------------------------------------------------------

         8.4.1 STANDARD REBATE PROGRAM. All Publishers qualify for the Standard
Rebate program. Rebates will be offered on an individual title basis. Rebates
will be give to any individual Licensed Product that exceeds the above numbers
of Units during the first year after first commercial shipment of such Licensed
Product. The rebate in effect at the end of such year for the Licensed Product
will remain in effect for as long as Publisher continues to sell such Licensed
Product, but Publisher will not receive further rebates if sales of such
Licensed Product hit additional thresholds as specified above after such year.
The Standard Rebate may not be used in conjunction with a Third Party Demo Disc
program or any promotional program of SCEA or with Licensed Products that
qualify for any "Greatest Hits" program of SCEA, or with Licensed Products that
qualify for the [*].

         8.4.2 LEVEL 1 REBATE PROGRAM. To be eligible for the Level 1 Rebate
program, Publisher must ship over [*] Units of certain Licensed Products in a
single Fiscal Year. Level 1 Rebates shall be credited to Publisher on an
individual title basis. Other terms of the Level 1 Rebate are as follows:

     (i) Only Publisher's titles (as determined below) that meet the following
conditions shall count toward the [*] Unit threshold: Publisher must order at
least [*] Units of the Licensed Product both within the first year of commercial
release of such Licensed Product and during the qualifying Fiscal Year.

     (ii) Any Licensed Products, including "Greatest Hits" titles and products
for the original PlayStation game console, but excluding all demo discs, shall
count toward the [*] Unit threshold (provided they meet the conditions set forth
in Section 8.4.2(i) above). For purposes of

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Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

determining Level 1 Rebate thresholds and the conditions set forth in Section
8.4.2(i), full priced Licensed Products and "Greatest Hits" Licensed Products
shall be considered separate Licensed Products, with separate Unit minimums and
release dates.

     (iii) Level 1 Rebates shall apply only to Licensed Products (not including
"Greatest Hits" titles, Licensed Products qualifying for the [*] and products
for the original PlayStation game console) ordered in the Fiscal Year following
the Fiscal Year in which the [*] Unit threshold is met. Units of Licensed
Products that qualified Publisher for inclusion in the Level 1 Rebate program in
the previous Fiscal Year shall not be entitled to receive the Level 1 Rebate.

     (iv) Publisher must re-qualify for the Level 1 Rebate Program each Fiscal
Year. If a Publisher fails to requalify for any Fiscal Year, then the Standard
Rebate shall apply in such Fiscal Year. The first Fiscal Year for which a
Publisher may qualify for the Level 1 Rebate shall be the Fiscal Year ending
March 31, 2000, and if the Publisher qualifies for the Level 1 Rebate, it will
apply to Licensed Products ordered in the Fiscal Year commencing April 1, 2000.

     (v) Licensed Products for the Level 1 Rebate program shall not be eligible
for Standard Rebates, and Level 1 Rebates shall supersede Standard Rebates with
respect to any individual Licensed Product. If a Licensed Product qualifies for
the Standard Rebate in one Fiscal Year, and Publisher qualifies for the Level 1
Rebate in the next Fiscal Year, units of such Licensed Product ordered in the
next Fiscal Year will receive the Level 1 Rebate commencing on April 1 of the
next Fiscal Year going forward, but such Level 1 Rebate will not be credited
retroactively to Units of the Licensed Product ordered in the previous Fiscal
Year. For example, Publisher orders [*] Units of Product X in Fiscal Year 2001,
receiving a Standard Rebate of [*]. Publisher qualifies for the Level 1 Rebate
in Fiscal Year 2002. Publisher will receive the Level 1 Rebate of [*] commencing
with Units ordered on April 1, 2001, but will not receive a retroactive credit
for Units ordered prior to April 1, 2001. When Publisher reaches the [*] Unit
threshold, it will receive a retroactive credit of [*] on all Level 1 Rebate
Units ordered as well as a retroactive credit of [*] on Standard Rebate Units
ordered in the previous Fiscal Year, and Publisher will receive the Level 1
Rebate of [*] going forward.

         8.4.3 LEVEL 2 REBATE PROGRAM. To be eligible for the Level 2 Rebate
program. Publisher must ship over [*] Units of certain Licensed Products in any
Fiscal Year. Level 2 Rebates shall be credited to Publisher on an individual
title basis. Other terms of the Level 2 Rebate are as follows:

     (i) Only Publisher's titles (as determined below) that meet the following
conditions shall count toward the [*] Unit threshold; Publisher must order at
least [*] Units of the Licensed Product both within the first year of commercial
release of such Licensed Product and during the qualifying Fiscal Year.

     (ii) Any Licensed Products including "Greatest Hits" titles and products in
the original PlayStation game console, but excluding all demo discs, shall count
toward the [*] Unit threshold (provided they meet the conditions set forth in
Section 8.4.3(i) above). For purposes of determining Level 2 Rebate thresholds
and the conditions set forth in Section 8.4.2(I), full

ACCLAIM ENTERTAINMENT, INC., AN
PS2 LICENSED PUBLISHER AGREEMENT
                                                                    CONFIDENTIAL
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<PAGE>
Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

priced Licensed Products and "Greatest Hits" Licensed Products shall be
considered separate Licensed Products, with separate Unit minimums and release
dates.

     (iii) Level 2 Rebates shall apply only to Licensed Products (not including
"Greatest Hits" titles, Licensed Products qualifying for the [*] and products
for the original PlayStation game console) ordered in the Fiscal Year following
the Fiscal Year in which the [*] Unit threshold is met. Units of Licensed
Products that qualified Publisher for inclusion in the Level 2 Rebate program in
the previous Fiscal Year shall not be entitled to receive the Level 2 Rebate.

     (iv) Publisher must re-qualify for the Level 2 Rebate Program each Fiscal
Year. If Publisher fails to requalify for any Fiscal year then the Standard
Rebate or Level 1 Rebate, as the case may be shall apply in such Fiscal Year.
The first Fiscal Year for which a Publisher may qualify for the Level 2 Rebate
shall be the Fiscal Year ending March 31, 2000, and if the Publisher qualifies
for the Level 2 Rebate, it will apply to Licensed Products ordered in the Fiscal
Year commencing April 1, 2000.

     (v) Licensed Products eligible for the Level 2 Rebate program shall not be
eligible for Standard Rebates or Level 1 Rebates, and Level 2 Rebates shall
supersede Standard Rebates and Level 1 Rebates with respect to any individual
Licensed Product. If a Licensed Product qualifies for the Standard Rebate or
Level 1 Rebate in one Fiscal Year, and Publisher qualifies for the Level 2
Rebate in the next Fiscal Year, Units of such Licensed Product ordered in the
next Fiscal year will receive the Level 2 Rebate going forward, but such Level 2
Rebate will not be credited retroactively to Units of the Licensed Product
ordered in the previous Fiscal Year. See Section 8.4.2(v) for an example.

     8.5 CALCULATION AND USE OF REBATES. Rebate percentages for all rebate
programs shall be credited against royalties owed SCEA and shall have no other
monetary value. All rebates, whether under the Standard Rebate, Level 1 Rebate
or Level 2 Rebate Programs shall be issued by SCEA as a credit to Publisher for
use against future royalty payments. It is Publisher's responsibility to inform
SCEA when it reaches any rebate threshold. In no event shall Publisher take a
deduction off royalties owed SCEA or deduction off an invoice payable to SCEA on
current production unless and until SCEA issues a credit to Publisher in writing
or unless otherwise agreed in writing. From time to time SCEA may allow
Publisher to use credits in other manners on terms and conditions to be
determined by SCEA. Publisher may use rebate credits to procure Development
Tools. Units of Licensed Products shall be considered "ordered" when Units first
begin to ship from a Designated Manufacturing Facility.

     8.6 REBATE CREDITS. Subject to Sections 8.4.2(v) and 8.4.3(v), all rebate
programs are [*], such that Publisher receives a credit for each rebate
percentage against [*] Units when it reaches the Unit threshold for the next
rebate percentage. SCEA shall credit Publisher's account with respect to [*]
rebates as follows: (A) if Publisher's initial order for a Licensed Product is
less than any rebate threshold provided above, then SCEA shall [*] credit
Publisher's account sixty (60) days following the date that Publisher notifies
SCEA that orders of a Licensed product exceed any rebate threshold, subject to
SCEA's right to confirm such information; and (B) if Publisher's initial order
for a Licensed Product reaches or exceeds any rebate threshold provide

ACCLAIM ENTERTAINMENT, INC., AN
PS2 LICENSED PUBLISHER AGREEMENT
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above, then Publisher may credit the Rebate amount set forth above as a separate
line item on the Purchase Order with respect to such Licensed Product, subject
to SCEA's confirmation right.

9.   REPRESENTATION AND WARRANTIES.

     9.1 REPRESENTATIONS AND WARRANTIES OF SCEA. SCEA represents and warrants
solely for the benefit of Publisher that SCEA has the right, power and authority
to enter into this Agreement and to fully perform its obligations hereunder;

     9.2 REPRESENTATIONS AND WARRANTIES OF PUBLISHER. Publisher represents and
warrants that:

     (i) There is not threatened or pending action, suit, claim or proceeding
alleging that the use by Publisher of all or any part of the Product Software,
Product Proposals, Product Information, Printed Materials, Advertising Materials
or any underlying work or content embodied therein or any name, designation or
trademark used in conjunction with the Licensed Products infringes or otherwise
violates any Intellectual Property Right or other right or interest of any kind
whatsoever of any third party, or otherwise contesting any right, title or
interest of Publisher in or to the Product Software, Product Proposals, Product
Information, Printed Materials, Advertising Materials or any underlying work or
content embodied therein, or any name, designation or trademark used in
conjunction with the Licensed Products.

     (ii) The Product Software, Product Proposals, Product Information, Printed
Materials and Advertising Materials and their contemplated use under this
Agreement do not and shall not infringe any person's or entity's rights
including without limitation, patents, copyrights (including rights in a joint
work), trademarks, trade dress, trade secret, right of publicity, privacy,
performance, moral rights, literary rights and any other third party right;

     (iii) Publisher has the right, power and authority to enter into this
Agreement to grant SCEA the rights granted hereunder and to fully perform its
obligations hereunder;

     (iv) The making of this Agreement by Publisher does not violate any
separate agreement, rights or obligations existing between Publisher and any
other person or entity, and, throughout the term of this Agreement, Publisher
shall not make any separate agreement with any person or entity that is
inconsistent with any of the provisions of this Agreement;

     (v) Publisher has not sold, assigned, leased, licensed or in any other way
disposed of or encumbered the rights granted to Publisher hereunder, and
Publisher will not sell, assign, lease, license or in any other way dispose of
or encumber any of such rights except as expressly permitted hereunder or as
consented to by SCEA in writing;

     (vi) Publisher has obtained the consent of all holders of intellectual
property rights required to be obtained in connection with use of any Product
Information by SCEA as licensed hereunder, and Product Information when provided
to SCEA in accordance with the terms of this Agreement may be published,
marketed, distributed and sold by SCEA in accordance with the terms and
conditions of this Agreement and without SCEA incurring any royalty, residual,
union, guild or other fees;

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     (vii) Publisher shall not make any representation or give any warranty to
any person or entity expressly or implicitly on SCEA's behalf, or to the effect
that the Licensed Products are connected in any way with SCEA (other than that
the Executable Software and/or Licensed Products have been developed, marketed,
sold and/or distributed under license from SCEA);

     (viii) In the event that Executable Software is delivered to other Licensed
Publishers or Licensed Developers by Publisher in source code form, Publisher
will take all precautions consistent with the protection of valuable trade
secrets by companies in high technology industries to ensure the confidentiality
of such source code;

     (ix) The Executable Software and any Product Information delivered to SCEA
shall be in a commercially acceptable form, free of significant bugs, defects,
time bombs or viruses which could disrupt, delay, destroy the Executable
Software or System or render either of them less than fully useful, and shall be
fully compatible with the System and any peripherals listed on the Printed
Materials as compatible with the Licensed Product;

     (x) Each of the Licensed Products, Executable Software, Printed Materials
and Advertising Materials shall be developed, marketed, sold and distributed by
or at the direction of Publisher in an ethical manner and in full compliance
with all applicable federal, state, provincial, local and foreign laws and any
regulations and standards promulgated thereunder (including but not limited to
federal and state lottery laws a currently interpreted and enforced) and will
not contain any obscene or defamatory matter;

     (xi) Publisher's policies and practices with respect to the development,
marketing, sale, and/or distribution of the Licensed Products shall in no manner
reflect adversely upon the name, reputation or goodwill of SCEA;

     (xii) Publisher has, or will contract with a Licensed Developer for, the
technical expertise and resources necessary to fulfill its obligations under
this Agreement; and

     (xiii) Publisher shall make no false, misleading or inconsistent
representations or claims with respect to any Licensed Products, the System or
SCEA.

10.  INDEMNITIES; LIMITED LIABILITY.

     10.1 INDEMNIFICATION BY SCEA. SCEA shall indemnify and hold Publisher
harmless from and against any and all third party claims, losses, liabilities,
damages, expenses and costs, including, without limitation, reasonable fees for
attorneys, expert witnesses and litigation costs, and including costs incurred
in the settlement or avoidance of any such claim which result from or are in
connection with a breach of any of the representations or warranties provided by
SCEA herein; provided, however, that Publisher shall give prompt written notice
to SCEA of the assertion of any such claim, and provided further, that SCEA
shall have the right to select counsel and control the defense and settlement
thereof. SCEA shall have the exclusive right, at its discretion, to commence and
prosecute at its own expense any lawsuit or to take such other action with
respect to such matters as shall be deemed appropriate by SCEA. Publisher shall
provide SCEA, at no expense to Publisher, reasonable assistance and cooperation
concerning any

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such matter; and Publisher shall not agree to the settlement of any such claim,
action or proceeding without SCEA's prior written consent.

     10.2 INDEMNIFICATION BY PUBLISHER. Publisher shall indemnify and hold SCEA
harmless from and against any and all claims, losses, liabilities, damages,
expenses and costs, including, without limitation, reasonable fees for
attorneys, expert witnesses and litigation costs, and including costs incurred
in the settlement or avoidance of any such claim, which result from or are in
connection with (i) a breach of any of the provisions of this Agreement; or (ii)
infringement of a third party's intellectual property rights by Publisher; or
(iii) any claims of or in connection with any personal or bodily injury
(including death) or property damage, by whomever such claim is made, arising
out of, in whole or in part, the development, marketing, sale, distribution
and/or use of any of the Licensed Products (or portions thereof) unless due
directly to the breach of SCEA in performing any of the specific services
required of it hereunder, under any federal, state or foreign civil or criminal
actions relating to the development, marketing, sale and/or distribution or
Licensed Products. SCEA shall give prompt written notice to Publisher or the
assertion of any such indemnified claim, and, with respect to third party
claims, actions or proceedings against SCEA, SCEA shall have the right to select
counsel for SCEA and reasonably counsel the defense and/or settlement thereof.
Subject to the above, Publisher shall have the right, at its discretion, to
select its own counsel, to commence and prosecute at its own expense any
lawsuit, to reasonably control the defense and/or settlement thereof or to take
such other action with respect to claims, actions or proceedings by or against
Publisher. SCEA shall retain the right to approve any settlement. SCEA shall
provide Publisher, at no expense to SCEA, reasonable assistance and cooperation
concerning any such matter; and SCEA shall not agree to the settlement of any
such claim, action or proceeding (other than third party claims, actions or
proceedings against SCEA) without Publisher's prior written consent.

     10.3 LIMITATION OF LIABILITY.

         10.3.1 LIMITATION OF SCEA'S LIABILITY. IN NO EVENT SHALL SCEA OR OTHER
SONY AFFILIATES AND THEIR SUPPLIERS, OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS BE
LIABLE FOR LOSS OF PROFITS, OR ANY SPECIAL, PUNITIVE, INCIDENTAL, INDIRECT OR
CONSEQUENTIAL DAMAGES ARISING OUT OF, RELATING TO OR IN CONNECTION WITH THIS
AGREEMENT, INCLUDING WITHOUT LIMITATION THE BREACH OF THIS AGREEMENT BY SCEA,
THE MANUFACTURE OF THE LICENSED PRODUCTS AND THE USE OF THE LICENSED PRODUCTS,
EXECUTABLE SOFTWARE AND/OR THE SYSTEM BY PUBLISHER OR ANY END-USER, WHETHER
UNDER THEORY OF CONTRACT, TORT (INCLUDING NEGLIGENCE), INDEMNITY, PRODUCT
LIABILITY OR OTHERWISE. IN NO EVENT SHALL SCEA'S LIABILITY ARISING UNDER,
RELATING TO OR IN CONNECTION WITH THIS AGREEMENT, INCLUDING WITHOUT LIMITATION
ANY LIABILITY FOR DIRECT OR INDIRECT DAMAGES, AND INCLUDING WITHOUT LIMITATION
ANY LIABILITY UNDER SECTION 10.1 HERETO, EXCEED THE TOTAL AMOUNT PAID BY
PUBLISHER TO SCEA UNDER THIS AGREEMENT. EXCEPT AS EXPRESSLY SET FORTH HEREIN,
NEITHER SCEA NOR ANY SONY AFFILIATE, NOR ANY OF THEIR RESPECTIVE DIRECTORS,
OFFICERS, EMPLOYEES OR AGENTS, SHALL

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BEAR ANY RISK, OR HAVE ANY RESPONSIBILITY OR LIABILITY, OF ANY KIND TO PUBLISHER
OR TO ANY THIRD PARTIES WITH RESPECT TO THE QUALITY, OPERATION AND/OR
PERFORMANCE OF ANY PORTION OF THE SONY MATERIALS, THE SYSTEM OR ANY LICENSED
PRODUCT.

         10.3.2 LIMITATION OF PUBLISHER'S LIABILITY. IN NO EVENT SHALL PUBLISHER
OR ITS AFFILIATED COMPANIES AND THEIR SUPPLIERS, OFFICERS, DIRECTORS, EMPLOYEES
OR AGENTS BE LIABLE TO SCEA FOR ANY LOSS OF PROFITS, OR ANY SPECIAL PUNITIVE,
INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES ARISING OUT OF, RELATED TO OR IN
CONNECTION WITH (I) THIS AGREEMENT OR (II) THE USE OR DISTRIBUTION IN ACCORDANCE
WITH THE TERMS AND CONDITIONS OF THIS AGREEMENT OF ANY CODE PROVIDED BY SCEA, IN
WHOLE OR IN PART, WHETHER UNDER THEORY OF CONTRACT, TORT (INCLUDING NEGLIGENCE),
INDEMNITY, PRODUCT LIABILITY OR OTHERWISE, PROVIDED THAT SUCH LIMITATIONS SHALL
NOT APPLY TO DAMAGES RESULTING FROM PUBLISHER'S BREACH OF SECTIONS 4, 10.2, 11
OR 13 OF THIS AGREEMENT AND PROVIDED FURTHER, THAT SUCH LIMITATIONS SHALL NOT
APPLY TO AMOUNTS WHICH PUBLISHER MAY BE REQUIRED TO PAY TO THIRD PARTIES UNDER
SECTIONS 10.2 OR 16.10.

     10.4 DISCLAIMER OF WARRANTY. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH
HEREIN, NEITHER SCEA NOR ITS AFFILIATES AND SUPPLIERS MAKE, NOR DOES PUBLISHER
RECEIVE ANY REPRESENTATIONS OR WARRANTIES, EXPRESS, IMPLIED OR STATUTORY,
REGARDING THE SONY MATERIALS, SCEA'S CONFIDENTIAL INFORMATION, THE SYSTEM, THE
UNITS OF THE LICENSED PRODUCTS MANUFACTURED HEREUNDER AND/OR PUBLISHER'S PRODUCT
INFORMATION INCLUDED ON SCEA DEMO DISCS. SCEA SHALL NOT BE LIABLE FOR ANY
INJURY, LOSS OR DAMAGE, DIRECT, INDIRECT OR CONSEQUENTIAL, ARISING OUT OF THE
USE OR INABILITY TO USE ANY UNITS AND/OR ANY SOFTWARE ERRORS AND/OR "BUGS" IN
PUBLISHER'S PRODUCT INFORMATION WHICH MAY BE REPRODUCED ON SCEA DEMO DISCS.
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, SCEA AND ITS AFFILIATES AND
SUPPLIERS EXPRESSLY DISCLAIM THE IMPLIED WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE AND THEIR EQUIVALENTS UNDER THE LAWS OF ANY
JURISDICTION, REGARDING THE SONY MATERIALS, SCEA'S CONFIDENTIAL INFORMATION,
LICENSED PRODUCTS, SCEA DEMO DISCS AND THE SYSTEM. ANY WARRANTY AGAINST
INFRINGEMENT THAT MAY BE PROVIDED IN SECTION 2-312(3) OF THE UNIFORM COMMERCIAL
CODE AND/OR IN ANY OTHER COMPARABLE STATUES IS EXPRESSLY DISCLAIMED.

11.  SCEA INTELLECTUAL PROPERTY RIGHTS.

     11.1 LICENSED TRADEMARKS. The Licensed Trademarks and the goodwill
associated therewith are and shall be the exclusive property of SCEA or
Affiliates of SCEA. Nothing

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herein shall give Publisher any right, title or interest in or to any of the
Licensed Trademarks or any other trademarks of SCEA, other than the
non-exclusive license provided herein. Publisher shall not do or cause to be
done any act or thing in any way inspiring or tending to impair or dilute any of
SCEA's rights, title or interests in or to any of the Licensed Trademarks or any
other trademarks of SCEA, nor shall Publisher register any trademark in its own
name or in the name of any other person or entity, or obtain rights to employ
Internet domain names or addresses, which are similar to or are likely to be
confused with any of the Licensed Trademarks or any other trademarks of SCEA.

     11.2 LICENSE OF SONY MATERIALS AND SYSTEM. All rights with respect to the
Sony Materials and System, including, without limitation, all of SCEA
Intellectual Property Rights therein, are and shall be the exclusive property of
SCEA or Affiliates of SCEA. Nothing herein shall give Publisher any right, title
or interest in or to the Sony Materials or the System (or any portion thereof),
other than the non-exclusive license provided herein. Publisher shall not do or
cause to be done any act or thing in any way impairing or tending to impair any
of SCEA's rights, title or interests in or to the Sony Materials or the System
(or any portion thereof).

12.  INFRINGEMENT OF SCEA INTELLECTUAL PROPERTY RIGHTS BY THIRD PARTIES.

In the event that Publisher discovers or otherwise becomes aware that any of the
SCEA Intellectual Property Rights have been or are being infringed upon by any
third party, then Publisher shall promptly notify SCEA. SCEA shall have the sole
right, in its discretion, to institute and prosecute lawsuits against third
parties for such infringement of SCEA Intellectual Property Rights. Any lawsuit
shall be prosecuted solely at the cost and expense of SCEA and all sums
recovered in any such lawsuits, whether by judgment, settlement or otherwise
shall belong solely to SCEA. Upon request of SCEA, Publisher shall execute all
papers, testify on all matters and otherwise cooperate in every way necessary
and desirable for the prosecution of any such lawsuit. SCEA shall reimburse
Publisher for the reasonable expenses incurred as a result of such cooperation,
but unless authorized by other provisions of this Agreement, not costs and
expenses attributable to the conduct of a cross-claim or third party action.

13.  CONFIDENTIALITY.

     13.1 SCEA'S CONFIDENTIAL INFORMATION.

         13.1.1 DEFINITION OF SCEA'S CONFIDENTIAL INFORMATION. "SCEA's
Confidential Information" shall mean:

     (i) the System, Sony Materials and Development Tools;

     (ii) other documents and materials developed, owned, licensed or under the
control of Sony, including all processes, data, hardware, software, inventions,
trade secrets, ideas, creations, improvements, designs, discoveries,
developments, research and know-how, including without limitation the SourceBook
2 and SCEA Intellectual Property Rights relating to the System, Sony Materials
or Development Tools;

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     (iii) information and documents regarding SCEA's finances, business,
marketing and technical plans, business methods and production plans.

SCEA's Confidential Information may consist of information in any medium,
whether oral, printed, in machine-readable form or otherwise, including
information apprised to Publisher and reduced to tangible or written form at any
time during the term of this Agreement. In addition, the existence of a
relationship between Publisher and SCEA for the purposes set forth herein shall
be deemed to be SCEA's Confidential Information unless otherwise agreed to in
writing by the parties or until publicly announced by SCEA.

         13.1.2 TERM OF PROTECTION OF SCEA'S CONFIDENTIAL INFORMATION. The term
for the protection of SCEA's Confidential Information shall commence on the
Effective Date first above written and shall continue in full force and effect
as long as any of SCEA's Confidential Information continues to be maintained as
confidential and proprietary by SCEA and/or Sony. During such term, Publisher
shall, pursuant to Section 13.1.3 below, safeguard and hold in trust and
confidence and not disclose or use (except for the purposes herein specified)
any and all of SCEA's Confidential Information.

         13.1.3 PRESENTATION OF SCEA'S CONFIDENTIAL INFORMATION. Publisher
shall, with respect to SCEA's Confidential Information:

     (i) not disclose SCEA's Confidential Information to any person or entity,
other than those employees or directors of the Publisher whose duties justify a
"need-to-know" and who have executed a confidentiality agreement in which such
employees or directors have agreed not to disclose and to hold confidential all
confidential information and materials (inclusive of those of third parties)
which may be disclosed to them or to which they may have during the course of
their duties. At SCEA's request, Publisher shall provide SCEA with a copy of
such confidentiality agreement between Publisher and its employees or directors,
and shall also provide SCEA with a list of employee and director signatories.
Publisher shall not disclose any of SCEA's Confidential Information to third
parities, including without limitation to consultants or agents. Any employees
or directors who obtain access to SCEA's Confidential Information shall be
advised by Publisher of the confidential nature of SCEA's Confidential
Information, and Publisher shall be responsible for any breach of this Agreement
by its employees or directors.

     (ii) take all measures necessary to safeguard SCEA's Confidential
Information in order to avoid disclosure, publication, or dissemination, using
as high a degree of care and scrutiny, but at least reasonable care, as is
consistent with the protection of valuable trade secrets by companies in high
technology industries.

     (iii) ensure that all written materials relating to or containing SCEA's
Confidential Information be maintained in a restricted access area and plainly
marked to indicate the secret and confidential nature thereof.

     (iv) at SCEA's request, return promptly to SCEA any and all portions of
SCEA's Confidential Information, together with all copies thereof.

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     (v) not use, modify, reproduce, sublicense, copy, distribute, create
derivative works from, or otherwise provide to third parties, SCEA's
Confidential Information, or any portion thereof, except as provided herein, nor
shall Publisher remove any proprietary legend set forth on or contained within
any of SCEA's Confidential Information.

         13.1.4 EXCEPTIONS. The foregoing restrictions shall not apply to any
portion of SCEA's Confidential Information which:

     (i) was previously known to Publisher without restriction on disclosure or
use, as provided by written documentation of Publisher; or

     (ii) is or legitimately becomes part of the public domain through no fault
of Publisher or its employees; or

     (iii) is independently developed by Publisher's employees who have not had
access to SCEA's Confidential Information, as proven by written documentation of
Publisher; or

     (iv) is required to be disclosed by administrative or judicial action;
provided that Publisher must attempt to maintain the confidentiality of SCEA's
Confidential Information by asserting in such action the restrictions set forth
in this Agreement, and, immediately after receiving notice of such action or any
notice of any threatened action, Publisher must notify SCEA to give SCEA the
maximum opportunity to seek any other legal remedies to maintain such SCEA's
Confidential Information in confidence as herein provided; or

     (v) is approved for release by written authorization of SCEA.

         13.1.5 NO OBLIGATION TO LICENSE. Disclosure of SCEA's Confidential
Information to Publisher shall not constitute any option, grant or license from
SCEA to Publisher under any patent or other SCEA Intellectual Property Rights
now or hereinafter held by SCEA. The disclosure by SCEA to Publisher of SCEA's
Confidential Information hereunder shall not result in any obligation on the
part of SCEA to approve any materials of Publisher hereunder or otherwise, nor
shall such disclosure by SCEA give Publisher any right to, directly or
indirectly, develop, manufacture or sell any product derived from or which uses
any of SCEA's Confidential Information, other than as expressly set forth in
this Agreement.

         13.1.6 PUBLISHER'S OBLIGATIONS UPON UNAUTHORIZED DISCLOSURE. If at any
time Publisher becomes aware of any unauthorized duplication, access, use,
possession or knowledge of any of SCEA's Confidential Information, it shall
notify SCEA as soon as reasonably practicable, and shall promptly act to recover
any such information and prevent further breach of the confidentiality
obligations herein. Publisher shall provide any and all reasonable assistance to
SCEA to protect SCEA's proprietary rights in any of SCEA's Confidential
Information that it or its employees or permitted subcontractors may have
directly or indirectly disclosed or made available, and that may be duplicated,
accessed, used, possessed or known in a manner or for a purpose not expressly
authorized by this Agreement, including but not limited to enforcement of
confidentiality agreements, commencement and prosecution in good faith (alone or
with the disclosing party) of legal action, and reimbursement for all reasonable
attorneys' fees, costs and expenses incurred by SCEA to protect its proprietary
rights

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in SCEA's Confidential Information. Publisher shall take all steps requested by
SCEA to prevent the recurrence of any unauthorized duplication, access, use,
possession or knowledge of SCEA's Confidential Information. In addition, SCEA
shall have the right to pursue any actions at law or in equity, including
without limitation the remedies set forth in Section 16.10 hereto.

     13.2 PUBLISHER'S CONFIDENTIAL INFORMATION.

         13.2.1 DEFINITION OF PUBLISHER'S CONFIDENTIAL INFORMATION. "Publisher's
Confidential Information" shall mean:

     (i) any Product Software as provided to SCEA pursuant to enforcement and
all documentation and information relating thereto, including Product Proposals,
Printed Materials and Advertising Materials (other than documentation and
information intended for use by and released to end users, the general public or
the trade);

     (ii) other documents and materials developed, owned, licensed or under the
control of Publisher, including all processes, data, hardware, software,
inventions, trade secrets, ideas, creations, improvements, designs, discoveries,
developments, research and knowhow; and

     (iii) information and documents regarding Publisher's finances, business,
marketing and technical plans, business methods and production plans.

Publisher's Confidential Information may consist of information in any medium,
whether oral, printed, in machine-readable form or otherwise, including
information apprised to SCEA and reduced to tangible or written form at any time
during the term of this Agreement.

         13.2.2 TERM OF PROTECTION OF PUBLISHER'S CONFIDENTIAL INFORMATION. The
term for the protection of Publisher's Confidential Information shall commence
on the Effective Date first above written and shall continue in full force and
effect as long as any of Publisher's Confidential Information continues to be
maintained as confidential and proprietary by Publisher.

         13.2.3 PRESERVATION OF CONFIDENTIAL INFORMATION OF PUBLISHER. SCEA
shall, with respect to Publisher's Confidential Information:

     (i) hold all Publisher's Confidential Information in confidence, and shall
take all reasonable steps to preserve the confidentiality of Publisher's
Confidential Information, and to prevent it from falling into the public domain
or into the possession of persons other than those persons to whom disclosure is
authorized hereunder.

     (ii) not disclose Publisher's Confidential Information to any person other
than an SCEA employee or subcontractor who needs to know or have access to such
Confidential Information for the purposes of this Agreement, and only to the
extent necessary for such purposes.

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     (iii) ensure that all written materials relating to or containing
Publisher's Confidential Information be maintained in a secure area and plainly
marked to indicate the secret and confidential nature thereof.

     (iv) at Publisher's request, return promptly to Publisher any and all
portions of Publisher's Confidential Information, together with all copies
thereof.

     (v) not use Publisher's Confidential Information, or any portion thereof,
except as provided herein, nor shall SCEA remove any proprietary legend set
forth on or contained with any of Publisher's Confidential Information.

         13.2.4 EXCEPTIONS. The foregoing restrictions will not apply to any
portion of Publisher's Confidential Information which:

     (i) was previously known to SCEA without restriction on disclosure or use,
as proven by written documentation of SCEA; or

     (ii) is or legitimately becomes part of information in the public domain
through no fault of SCEA or its employees or its subcontractors; or

     (iii) is independently developed by SCEA's employees or affiliates who have
not had access to Publisher's Confidential Information, as proven by written
documentation of SCEA; or

     (iv) is required to be disclosed by administrative or judicial action;
provided that SCEA attempted to maintain the confidentiality of Publisher's
Confidential Information by asserting in such action the restrictions set forth
in this Agreement, and immediately after receiving notice of such action,
notified Publisher of such action to give Publisher the opportunity to seek any
other legal remedies to maintain such Publisher's Confidential Information in
confidence as herein provided; or

     (v) is approved for release by written authorization of Publisher.

         13.2.5 SCEA'S OBLIGATIONS UPON UNAUTHORIZED DISCLOSURE. If at any time
SCEA becomes aware of any unauthorized duplication, access, use, possession or
knowledge of any of Publisher's Confidential Information, it shall notify
Publisher as soon as is reasonably practicable. SCEA shall provide any and all
reasonable assistance to Publisher to protect Publisher's proprietary rights in
any of Publisher's Confidential Information that it or its employees or
permitted subcontractors may have directly or indirectly disclosed or made
available and that may be duplicated, accessed, possessed or known in a manner
or for a purpose not expressly authorized by this Agreement, including but not
limited to enforcement of confidentiality agreements, commencement and
prosecution in good faith (alone or with the disclosing party) of legal action,
and reimbursement for all reasonable attorneys' fees, costs and expenses
incurred by Publisher to its proprietary rights in Publisher's Confidential
Information. SCEA shall take all reasonable steps requested by Publisher to
prevent the recurrence of any unauthorized duplication, access, use, possession
or knowledge of Publisher's Confidential Information.

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     13.3 CONFIDENTIALITY OF AGREEMENT. The terms and conditions of this
agreement shall be treated as SCEA's Confidential Information and Publisher's
Confidential Information, provided that each party may disclose the terms and
conditions of this Agreement:

     (i) to legal counsel;

     (ii) in confidence, to accountants, banks and financing sources and their
advisors;

     (iii) in confidence, in connection with the enforcement of this Agreement
or rights arising under or relating to this Agreement; and

     (iv) if required, in the opinion of counsel, to file publicly or otherwise
disclose the terms of this Agreement under applicable federal and/or state
securities or other laws, the disclosing party shall be required to promptly
notify the other party such that the other party has a reasonable opportunity to
contest or limit the scope of such required disclosure, and the disclosing party
shall request, and shall use its best efforts to obtain, confidential treatment
for such sections of this Agreement as the other party may designate.

14.  TERM AND TERMINATION.

     14.1 EFFECTIVE DATE; TERM. This Agreement shall not be binding on the
parties until it has been signed by each party, in which event it shall be
effective from the Effective Date until March 31, 2003, unless earlier
terminated pursuant to Section 14.2. The term shall be automatically extended
for additional one-year terms thereafter, unless either party provides the other
with written notice of its election not to so extend on or before January 31 of
the applicable year. Notwithstanding the foregoing, the term for the protection
of SCEA's Confidential Information and Publisher's Confidential Information
shall be as set forth in Sections 13.1.2 and 13.2.2 respectively.

     14.2 TERMINATION BY SCEA. SCEA shall have the right to terminate this
Agreement immediately, by providing written notice of such election to
Publisher, upon the occurrence of any of the following:

     (i) If Publisher breaches (A) any of its obligations hereunder; or (B) any
other agreement entered into between SCEA or Affiliates of SCEA and Publisher.

     (ii) The liquidation or dissolution of Publisher or a statement of intent
by Publisher to no longer exercise any of the rights granted by SCEA to
Publisher hereunder.

     (iii) If during the term of this Agreement, a controlling interest in
Publisher or in an entity which directly or indirectly has a controlling
interest in Publisher is transferred to a party that (A) is in breach of any
agreement with SCEA or an Affiliate of SCEA; (B) directly or indirectly holds or
acquires a controlling interest in a third party which develops any interactive
device or product which is directly or indirectly competitive with the System;
or (C) is in litigation with SCEA or Affiliates of SCEA concerning any
proprietary technology, trade secrets or other SCEA Intellectual Property Rights
or SCEA's Confidential Information. As used in this

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Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

Section 14.2 "controlling interest" means, with respect to any form of entity,
sufficient power to control the decisions of such entity.

     (iv) If during the term of this Agreement, Publisher or an entity that
directly or indirectly has a controlling interest in Publisher enters into a
business relationship with a third party with whom Publisher materially
contributes to develop core components to an interactive device or product which
is directly or indirectly competitive with the System.

Publisher shall immediately notify SCEA in writing in the event that any of the
events or circumstances specified in this Section occur.

     14.3 PRODUCT-BY-PRODUCT TERMINATION BY SCEA. In addition to the events of
termination described in Section 14.2 above, SCEA, at its option, shall be
entitled to terminate, on a product-by-product basis, the licenses and related
rights hereby granted to Publisher in the event that (a) Publisher fails to
notify SCEA promptly in writing of any material change to any materials
previously approved by SCEA in accordance with Section 5 or Section 6 hereto,
and such breach is not corrected or cured within thirty (30) days after receipt
of written notice of such breach; (b) Publisher uses a third party that fails to
comply with the requirements of Section 3 in connection with the development of
any Licensed Product; (c) any third party with whom Publisher has contracted for
the development of Executable Software breaches any of its material obligations
to SCEA pursuant to such third party's agreement with SCEA with respect to such
Licensed Product; or (d) Publisher cancels a Licensed Product or fails to
provide SCEA, in accordance with the provisions of Section 5 above, with the
final version of the Executable Software for any Licensed Product within three
months of the scheduled release date according to the Product Proposal (unless a
modified final delivery date has been agreed to by the parties), or fails to
provide work in progress to SCEA in strict accordance with the Review Process in
Section 5.3.

     14.4 OPTIONS OF SCEA RIGHTS OF TERMINATION. As alternatives to terminating
this Agreement or a particular Licensed Product as set forth in Sections 14.2
and 14.3 above, SCEA may at its option and upon written notice to Publisher,
file the following actions in lieu of terminating this Agreement in the event
that SCEA elects either of these options. Publisher may terminate this Agreement
upon written notice to SCEA rather than allowing SCEA to exercise these options.
Election of these options by SCEA shall not constitute a waiver of compromise
with respect to any of SCEA's rights under this Agreement and SCEA may elect to
terminate this Agreement with respect to any breach.

         14.4.1 SUSPENSION OF AGREEMENT. SCEA may suspend this Agreement,
entirely or with respect to a particular Licensed Product or program, for a set
period of time which shall be specified in writing to Publisher upon the
occurrence of any breach of this Agreement.

         14.4.2 LIQUIDATED DAMAGES. Whereas a minor breach of any of the events
set out below may not warrant termination of this Agreement, but will cause SCEA
damages in amounts difficult to quantify, SCEA may require Publisher to pay
liquidated damages of [*] per event as follows:

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     (i) Failure to submit Advertising Materials to SCEA for approval (including
any required resubmission);

     (ii) Broadcasting or publishing Advertising Materials without receiving the
final approval or consent of SCEA;

     (iii) Failure to make SCEA's requested revisions to Advertising Materials;
or

     (iv) Failure to comply with the SourceBook 2, Manufacturing Specifications
or Guidelines which relates in any way to use of Licensed Trademarks.

Liquidated damages shall be invoiced separately or on Publisher's next invoice
for Licensed Products. SCEA reserves the right to terminate this Agreement for
breach in lieu of seeking liquidated damages or in the event that liquidated
damages are unpaid.

     14.5 NO REFUNDS. In the event of the termination of this Agreement in
accordance with any of the provisions of Sections 14.2 through 14.4 above, no
portion of any payments of any kind whatsoever previously provided to SCEA
hereunder shall be owed or be repayable to Publisher.

15   EFFECT OF EXPIRATION OR TERMINATION.

     15.1 INVENTORY STATEMENT. Within thirty (30) days of the date of expiration
or the effective date of termination with respect to any or all Licensed
Products or this Agreement, Publisher shall provide SCEA with an itemized
statement, certified to be accurate by an officer of Publisher, specifying the
number of unsold Units of the Licensed Products as to which such termination
applies, on a title-by-title basis, which remain in its inventory and/or under
its control at the time of expiration or the effective date of termination. SCEA
shall be entitled to conduct at its expense a physical inspection of Publisher's
inventory and work in process upon reasonable written notice during normal
business hours in order to ascertain or verify such inventory and inventory
statement.

     15.2 REVERSION OF RIGHTS. Upon expiration or termination and subject to
Section 15.3 below, the licenses and related rights herein granted to Publisher
shall immediately revert to SCEA, and Publisher shall cease from any further use
of SCEA's Confidential Information, Licensed Trademarks and Sony Materials and
any SCEA Intellectual Property Rights therein, and, subject to the provisions of
Section 15.3 below, Publisher shall have no further right to continue the
development, publication, manufacture, marketing, sale or distribution of any
units of the Licensed Products, or to continue to use any Licensed Trademarks;
provided, however, that for a period of one year after termination, and subject
to all the terms of Section 13, and provided this Agreement is not terminated
due to a breach or default of Publisher, Publisher may retain such portions of
Sony Materials and SCEA's Confidential Information as SCEA in its sole
discretion agrees are required to support end users of Licensed Products but
must return these materials at the end of such one year period. Upon expiration
or termination, the licenses and related rights therein granted to SCEA by
Publisher shall immediately revert to Publisher, and SCEA shall cease from any
further use of Product Information and any Publisher Intellectual Property
Rights therein; provided that SCEA may continue the manufacture, marketing, sale
or

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distribution of any SCEA Demo Discs containing Publisher's Product Information
which Publisher had approved prior to termination.

     15.3 DISPOSAL OF UNSOLD UNITS. Provided that this Agreement is not
terminated due to a breach or default of Publisher, Publisher may, upon
expiration or termination of this Agreement, sell off existing inventories of
Licensed Products, on a non-exclusive basis, for a period of ninety (90) days
from the date of expiration or termination of this Agreement, and provided such
inventories have not been manufactured solely or principally for sale during
such period. Subsequent to the expiration of such ninety (90) day period, or in
the event this Agreement is terminated as a result of any breach or default of
Publisher, any and all Units of the Licensed Products remaining in Publisher's
inventory shall be destroyed by Publisher within five (5) business days of such
expiration or termination. Within five (5) business days after such destruction,
Publisher shall provide SCEA with an itemized statement, certified to be
accurate by an officer of Publisher indicating the number of Units of the
Licensed Products which have been destroyed (on a title-by-title basis) and
location and date of such destruction and the disposition of the remains of such
destroyed materials.

     15.4 RETURN OF ANY MATERIALS AND CONFIDENTIAL INFORMATION. Upon the
expiration or earlier termination of this Agreement, Publisher shall immediately
deliver to SCEA, or if and to the extent requested by SCEA destroy, all Sony
Materials and any and all copies thereof, and Publisher and SCEA shall, upon the
request of the other party, immediately deliver to the other party, or if and to
the extent requested by such party destroy, all Confidential Information of the
other party, including any and all copies thereof which the other party
previously furnished to it in furtherance of this Agreement. Within five (5)
working days after any such destruction, Publisher and/or SCEA, as appropriate,
shall provide the other party with an affidavit of destruction and an itemized
statement, each certified to be accurate by an officer of Publisher, indicating
the number of copies and/or units of the Sony Materials and/or Confidential
Information which have been destroyed, the location and date of such destruction
and the disposition of the remains of such destroyed materials. In the event
that Publisher fails to return the Sony Materials or Confidential Information
and SCEA must resort to legal means (including without limitation any use of
attorneys) to recover the Sony Materials or Confidential Information or value
thereof, all costs, including SCEA's reasonable attorneys' fees, shall be borne
by Publisher, and SCEA may, in addition to SCEA's other remedies, withhold such
amounts from any payment otherwise due from SCEA to Publisher under any
agreement between SCEA and Publisher.

     15.5 EXTENSION OF THIS AGREEMENT; TERMINATION WITHOUT PREJUDICE. SCEA shall
be under no obligation to extend this Agreement notwithstanding any actions
taken by either of the parties prior to the expiration of this Agreement. Upon
the expiration of this Agreement, neither party shall be liable to the other for
any damages (whether direct, indirect, consequential or incidental, and
including, without limitation, any expenditures, loss of profits or prospective
profits) sustained or arising out of or alleged to have been sustained or to
have arisen out of such expiration. The expiration or termination of this
Agreement shall be without prejudice to any rights or remedies which one party
may otherwise have against the other party, and shall not excuse either party
from any such expiration or termination.

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Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

16.  MISCELLANEOUS PROVISIONS.

     16.1 NOTICES. All notices or other communications required or desired to be
sent to either of the parties shall be in writing and shall be sent by
registered or certified mail, postage prepaid, or sent by recognized
international courier service, telegram or facsimile, with charges prepaid. The
address for all notices or other communications required to be sent to SCEA or
Publisher, respectively, shall be the mailing address stated in the preamble
hereof, or such other address as may be provided by written notice from one
party to the other on at least ten (10) days' prior written notice. Any such
notice shall be effective upon the date of actual or tendered delivery, as
confirmed by the sending party.

     16.2 AUDIT PROVISIONS. Publisher shall keep full, completed, and accurate
books of account and records covering all transactions relating to this
Agreement. Publisher shall preserve such books of account, records, documents,
and material for a period of twenty-four (24) months after the expiration or
earlier termination of this Agreement. Acceptance by SCEA of an accounting
statement, purchase order, or payment hereunder will not preclude SCEA from
challenging or questioning the accuracy thereof at a later time. In the event
that SCEA reasonably believes that the Wholesale Price provided by Publisher
with respect to any Licensed Product is not accurate, SCEA shall be entitled to
request additional documentation from Publisher to support the listed Wholesale
Price for such Licensed Product. In addition, during the Term and for a period
of two (2) years therefrom and upon the giving of reasonable written notice to
Publisher, representatives of SCEA shall have access to, and the right to make
copies and summaries of, such portions of all Publisher's books and records as
pertain to the Licensed Products and any payments due or credits received
hereunder. In the event that such inspection reveals an under-reporting of any
payment due to SCEA, Publisher shall immediately pay SCEA such amount. In the
event that any audit conducted by SCEA reveals that Publisher has under-reported
any payment due to SCEA hereunder by [*] or more for that audit period, then in
addition to the payment of the appropriate amount due to SCEA, Publisher shall
reimburse SCEA for all reasonable audit costs for that audit and any and all
collection costs to recover the unpaid amount.

     16.3 FORCE MAJEURE. Neither SCEA nor Publisher shall be liable for any loss
or damage or be deemed to be in breach of this Agreement if its failure to
perform or failure to cure any of its obligations under this Agreement results
from any event or circumstance beyond its reasonable control, including, without
limitation, any natural disaster, fire, flood, earthquake or other Act of God;
shortage of equipment, materials, supplies or transportation facilities; strike
or other industrial dispute; war or rebellion; shutdown or delay in power,
telephone or other essential service due to the failure of computer or
communications equipment or otherwise; provided, however, that the party
interfered with gives the other party written notice thereof promptly, and, in
any event, within fifteen (15) business days of discovery of any such Force
Majeure condition. If notice of the existence of any Force Majeure condition is
provided within such period, the time for performance or cure shall be extended
for a period equal to the duration of the Force Majeure event or circumstance
described in such notice, except that any such cause shall not excuse the
payment of any sums owed to SCEA prior to, during or after any such Force
Majeure condition. In the event that the Force Majeure condition continues for
more than sixty

ACCLAIM ENTERTAINMENT, INC., AN
PS2 LICENSED PUBLISHER AGREEMENT
                                                                    CONFIDENTIAL
                                       38
<PAGE>

(60) days, SCEA may terminate this Agreement for cause by providing written
notice to Publisher to such effect.

     16.4 NO AGENCY, PARTNERSHIP OR JOINT VENTURE. The relationship between SCEA
and Publisher, respectively parties of licensor and licensee. Both parties are
independent contractors and are not the legal representative, agent, joint
venturer, partner or employee of the other party for any purpose whatsoever.
Neither party has any right or authority to assume or create any obligations of
any kind or to make any representation or warranty on behalf of the other party,
whether express or implied, or to bind the other party in any respect
whatsoever.

     16.5 ASSIGNMENT. SCEA has entered into this Agreement based upon the
particular reputation, capabilities and experience of Publisher and is officers,
directors and employees. Accordingly, Publisher may not assign this Agreement or
any of its rights hereunder, nor delegate or otherwise transfer any of its
obligations hereunder, to any third party unless the prior written consent of
SCEA shall first be obtained. This Agreement shall not be assigned in
contravention of Section 14.2 (iii). Any attempted or purported assignment,
delegation or other such transfer, directly or indirectly, without the required
consent of SCEA shall be void. Subject to the foregoing, this Agreement shall
inure to the benefit of the parties and their respective successors and
permitted assigns (other than under the conditions set forth in Section 14.2
(iii). SCEA shall have the right to assign any and all of its rights and
obligations hereunder to any Sony affiliate(s).

     16.6 SUBCONTRACTORS. Publisher shall not sell, assign, delegate,
subcontract, sublicense or otherwise transfer or encumber all or any portion of
the licenses herein granted without the prior written approval of SCEA,
provided, however, that Publisher may retain those subcontractors who provide
services which do not require access to Sony Materials or SCEA's Confidential
Information without such prior approval. Publisher may retain those
subcontractor(s) to assist with the development, publication and marketing of
Licensed Products (or portions thereof) which have signed (i) an LPA or LDA with
SCEA (the "PlayStation 2 Agreement") in full force and effect throughout the
term of such development and marketing; or (ii) an SCEA-approved subcontractor
agreement ("Subcontractor Agreement"); and SCEA has approved such subcontractor
in writing, which approval shall be in SCEA's sole discretion. Such
Subcontractor Agreement shall provide that SCEA is a third-party beneficiary of
such Subcontractor Agreement and has the full right to bring any actions against
such subcontractors to comply in all respects with the terms and conditions of
this Agreement. Publisher shall provide a copy of any such Subcontractor
Agreement to SCEA prior to and following execution thereof. Publisher shall not
disclose to any subcontractor any of SCEA's Confidential Information, including,
without limitation, any Sony Materials, unless and until either a PlayStation -
2 Agreement or a Subcontractor Agreement has been executed and approved by SCEA.
Notwithstanding, any consent which may be granted by SCEA for Publisher to
employ any such permitted subcontractor(s), or any such separate agreements(s)
that may be entered into by Publisher with any such permitted subcontractor,
Publisher shall remain fully liable for its compliance with all of the
provisions of this Agreement and for the compliance of any and all permitted
subcontractors with the provisions of any agreements entered into by such
subcontractors in accordance with this Section. Publisher shall use its best
efforts to cause its subcontractors retained in furtherance of this Agreement to
comply in all respects with the terms

ACCLAIM ENTERTAINMENT, INC., AN
PS2 LICENSED PUBLISHER AGREEMENT
                                                                    CONFIDENTIAL
                                       39
<PAGE>
Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

and conditions of this Agreement, and hereby unconditionally guarantees all
obligations of its subcontractors. SCEA may subcontract any of its rights or
obligations hereunder.

     16.7 COMPLIANCE WITH APPLICABLE LAWS. The parties shall at all times comply
with all applicable regulations and orders of their respective countries and
other controlling jurisdictions and all conventions and treaties to which their
countries are a party or relating to or in any way affecting this Agreement and
the performance by the parties of this Agreement. Each party, at its own
expense, shall negotiate and obtain any approval, license or permit required in
the performance of its obligations, and shall declare, record or take such steps
to render this Agreement binding, including, without limitation, the recording
of this Agreement with any appropriate governmental authorities (if required).

     16.8 GOVERNING LAW; CONSENT TO JURISDICTION. This Agreement shall be
governed by and interpreted in accordance with the laws of the State of
California, excluding that body of law related to choice of laws, and of the
United States of America. Any action or proceeding brought to enforce the terms
of this Agreement or to adjudicate any dispute arising hereunder shall be
brought in the Superior Court of the County of San Mateo, State of California or
the United States District Court for the Northern District of California. Each
of the parties hereby submits itself to the exclusive jurisdiction and venue of
such courts for purposes of any such action and agrees that any service of
process may be effected by delivery of the summons in the manner provided in the
delivery of notices set forth in Section 16.1 above. In addition, each body
hereby waives the right to a jury trial in any action of proceeding related to
this Agreement.

     16.9 LEGAL COSTS AND EXPENSES. In the event it is necessary for either
party to retain the services of any attorney or attorneys to enforce the terms
of this Agreement or to file or defend any action arising out of this Agreement,
then the prevailing party in any such action shall be entitled, in addition to
any other rights and remedies available to it at law or in equity to recover
from the other party its reasonable fees for attorneys and expert witnesses,
plus such court costs and expenses as may be fixed by any court of competent
jurisdiction. The term "prevailing party" for the purposes of this Section shall
include a defendant who has by motion, judgment, verdict or dismissal by the
court, successfully defended against any claim that has been asserted against
it.

     16.10 REMEDIES. Unless expressly set forth to the contrary, either party's
election of any remedies provided for in this Agreement shall not be exclusive
of any other remedies, and all such remedies shall be deemed to be cumulative.
Any breach of Sections 3, 4, 5, 6.1, 11 and 13 of this Agreement would cause
significant and irreparable harm to SCEA, the extent of which would be difficult
to ascertain. Accordingly, in addition to any other remedies, including without
limitation equitable relief to which SCEA may be entitled, in the event of a
breach by Publisher or any of its employees or permitted subcontractors of any
such Sections of this Agreement, SCEA shall be entitled to the immediate
issuance without bond of ex parte injunctive relief or, if a bond is required
under applicable law, on the posting of a bond in an amount not to exceed [*],
enjoining any breach or threatened breach of any or all of such provisions. In
addition, if Publisher fails to comply with any of its obligations as set forth
herein, SCEA shall be entitled to an accounting and repayment of all forms of
compensation,

ACCLAIM ENTERTAINMENT, INC., AN
PS2 LICENSED PUBLISHER AGREEMENT
                                                                    CONFIDENTIAL
                                       40
<PAGE>

commissions, remuneration or benefits which Publisher directly or indirectly
realizes as a result of or arising in connection with any such failure to
comply. Such remedy shall be in addition to and not in limitation of any
injunctive relief or other remedies to which SCEA may be entitled under this
Agreement or otherwise at law or in equity. In addition, Publisher shall
indemnify SCEA for all losses, damages, liabilities, costs and expenses
(including reasonable attorneys' fees and all reasonable related costs) which
SCEA may sustain or incur as a result of any breach under this Agreement.

     16.11 SEVERABILITY. In the event that any provision of this Agreement (or
portion thereof) is determined by a court of competent jurisdiction to be
invalid or otherwise unenforceable, such provision (or portion thereof) shall be
enforced to the extent possible consistent with the stated intention of the
parties, or, if incapable of such enforcement, shall be deemed to be deleted
from this Agreement, while the remainder of this Agreement shall continue in
full force and remain in effect according to its stated terms and conditions.

     16.12 SECTION SURVIVING EXPIRATION OR TERMINATION. The following sections
shall survive the expiration or earlier termination of this Agreement for any
reason: 4, 5.8, 6.2, 6.4, 8, 9, 10, 11, 13, 14.5, 15, and 16.

     16.13 WAIVER. No failure or delay by either party in exercising any right,
power or remedy under this Agreement shall operate as a waiver of any such
right, power or remedy. No waiver of any provision of this Agreement shall be
effective unless in writing and signed by the party against whom such waiver is
sought to be enforced. Any waiver by either party of any provision of this
Agreement shall not be construed as a waiver of any other provision of this
Agreement, nor shall such waiver operate or be construed as a waiver of such
provision respecting any future event or circumstance.

     16.14 MODIFICATION AND AMENDMENT. No modification or amendment of any
provision of this Agreement shall be effective unless in writing and signed by
both parties. Notwithstanding the foregoing, SCEA reserves the right to modify
the SourceBook 2 from time to time upon reasonable notice to Publisher.

     16.15 HEADINGS. The section headings used in this Agreement are intended
primarily for reference and shall not by themselves determine the construction
or interpretation of this Agreement or any portion thereof.

     16.16 INTEGRATION. This Agreement, together with the SourceBook 2,
constitutes the entire agreement between SCEA and Publisher and supersedes all
prior or contemporaneous agreement, proposals, understandings and communications
between SCEA and Publisher, whether oral or written, with respect to the subject
matter hereof including any PlayStation 2 Confidentiality and Nondisclosure
Agreement and Materials Loan Agreement between SCEA and Publisher.

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

ACCLAIM ENTERTAINMENT, INC., AN
PS2 LICENSED PUBLISHER AGREEMENT
                                                                    CONFIDENTIAL
                                       41
<PAGE>

     16.18 CONSTRUCTION. This Agreement shall be fairly interpreted in
accordance with its terms and without any strict construction in favor of or
against either of the parties.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed as of the day and year first written above.

SONY COMPUTER                              ACCLAIM ENTERTAINMENT, INC.
ENTERTAINMENT AMERICA INC.

By:   /s/ P. Harrison                      By:  /s/ Gregory Fischbach
   ---------------------------------          ----------------------------------
Print   P. Harrison                         Print   Gregory Fischbach
Name:                                      Name:
     -------------------------------            --------------------------------
Title:  Vice President                     Title:   Chief Executive Officer
      ------------------------------             -------------------------------

Date:   May 5, 2000                        Date:     May 1, 2000
     -------------------------------            --------------------------------

NOT AN AGREEMENT UNTIL
EXECUTED BY BOTH PARTIES

ACCLAIM ENTERTAINMENT, INC., AN
PS2 LICENSED PUBLISHER AGREEMENT
                                                                    CONFIDENTIAL
                                       42<PAGE>

                                                                   EXHIBIT 10.2

Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

                 PLAYSTATION 2(R) LICENSED PUBLISHER AGREEMENT

THIS AGREEMENT RELATES TO THE PUBLISHING OF APPLICATION SOFTWARE FOR THE
PLAYSTATION (R)2 COMPUTER ENTERTAINMENT SYSTEM. ALL TERMS USED HEREIN ARE
SPECIFIC TO THE PLAYSTATION (R)2 SYSTEM AND NOT TO SONY'S PREDECESSOR
"PLAYSTATION" VIDEO ENTERTAINMENT SYSTEM. PUBLISHING RIGHTS FOR SUCH
PREDECESSOR SYSTEM ARE SUBJECT TO SEPARATE AGREEMENTS WITH SCEE, AND ANY
LICENCE OF RIGHTS TO PUBLISHER UNDER SUCH SEPARATE AGREEMENTS SHALL NOT CONFER
ON PUBLISHER ANY RIGHTS IN RELATION TO THE PLAYSTATION (R)2 SYSTEM, OR VICE
VERSA.

  THIS AGREEMENT is entered into the 14th day of November, 2001 by and between

                   SONY COMPUTER ENTERTAINMENT EUROPE LIMITED
                      of 30 Golden Square, London W1F 9LD
                      (hereinafter referred to as "SCEE")

                                    - and -

                   ACCLAIM ENTERTAINMENT (EUROPE) LIMITED of
              Morcau House, 112-120 Brompton Road, Knightsbridge,
                                London, SW3 1JJ
                    (hereinafter referred to as "Publisher")
                         PUBLISHER AUTHORIZATION #: 175

WHEREAS

(A)  SCEE, its parent company Sony Computer Entertainment Inc., and/or certain
     of their affiliates and companies within the group of companies of which
     any of them form part (hereinafter jointly and severally referred to as
     "Sony") have developed, and are licensing core components of, a computer
     entertainment system known and hereinafter referred to as "PLAYSTATION 2",
     and are the owners of, or have the right to grant licences of, certain
     proprietary information and intellectual property rights pertaining to
     PlayStation 2.

(B)  Publisher desires to be granted a non-exclusive licence to market,
     distribute and sell Licensed Products (as defined below), and for such
     Licensed Products and associated materials to be manufactured by an
     authorised manufacturing facility licensed by SCEE, on the terms and
     subject to the conditions set forth in this Agreement.

                                       1
<PAGE>

(C)  SCEE is willing, on the terms and subject to the conditions of this
     Agreement, to grant Publisher the desired non-exclusive licence.

NOW THEREFORE, in consideration of the undertakings, representations and
warranties given herein, and of other good and valuable consideration the
receipt and sufficiency of which is acknowledged, PUBLISHER AND SCEE HEREBY
AGREE AS FOLLOWS:

1. DEFINITIONS

1.1  "Licensed Products" means PlayStation 2 format Software product(s) in
     uniquely marked or coloured CD-ROM or DVD-ROM format software discs
     (hereinafter referred to as "PlayStation 2 Discs").

1.2  "Licensed Territory" means the countries specified in Schedule 1.

1.3  "Sony Intellectual Property Rights" means all current and future patents
     worldwide, pending patent applications and other patent rights (under
     licence or otherwise), copyrights, trademarks, service marks, trade names,
     semi-conductor topography rights, trade secret rights, technical
     information and know-how (and the equivalents of each of the foregoing
     under the laws of any jurisdiction) of Sony pertaining to Sony Materials
     and/or PlayStation 2, and all other proprietary or intellectual property
     rights worldwide (including, without limitation, all applications and
     registrations with respect thereto) of Sony pertaining to Sony Materials
     and/or PlayStation 2, and all renewals and extensions thereof.

1.4  "PlayStation 2 format Software" means Publisher's object code software,
     which includes Licensed Developer Software and any software (whether in
     object code or source code form) which is provided by SCEE and intended to
     be combined with Licensed Developer Software for execution on PlayStation
     2 and has the ability to communicate with the software resident in
     PlayStation 2.

1.5  "Term" means the period from the date hereof until 31 March 2003 and
     continuing thereafter unless and until terminated by not less than 1 (one)
     month's notice on either side given to expire on such date or any
     subsequent 31 March.

1.6  "Affiliate of SCEE" means, as applicable, either Sony Computer
     Entertainment Inc. in Japan, Sony Computer Entertainment America Inc. in
     the USA or such other Sony Computer Entertainment entity as may be
     established by Sony from time to time.

1.7  "LDA 2" means the PlayStation 2 Licensed Developer Agreement between
     Licensed Developer of the applicable PlayStation 2 format Software and
     SCEE (or an equivalent such agreement between Licensed Developer and
     Affiliate of SCEE).

1.8  "Licensed Trademarks" means the "PS" family logo and PlayStation 2 logotype
     and such other trademarks, service marks, trade dress, logos and other
     icons or indicia as shall be specified in the Specifications or otherwise
     designated by SCEE from time to time. SCEE may amend such Licensed
     Trademarks upon reasonable notice to Publisher.

                                       2
<PAGE>

     Publisher is not authorised to use the PlayStation, PSone or
     PlayStation.com logos and/or logotypes, or the "PS2" or PlayStation Shapes
     devices, other than as expressly permitted by separate agreement. Nothing
     contained in this Agreement shall in any way grant Publisher the right to
     use the trademark "Sony" in any manner as (or as part of) a trademark,
     trade name, service mark or logo or otherwise howsoever.

1.9  "Licensed Developer" means Publisher or such other third party as shall
     have developed Licensed Developer Software and PlayStation 2 format
     Software pursuant to a then current LDA2.

1.10 "Sony Materials" means any hardware, data, object code, source code,
     documentation (or any part(s) of any of the foregoing) and related
     peripheral items provided to the Licensed Developer of any PlayStation 2
     format Software pursuant to the LDA 2 applicable for such PlayStation 2
     format Software.

1.11 "Licensed Developer Software" means Licensed Developer's application source
     code and data (including audio and visual material) developed by Licensed
     Developer in accordance with its LDA 2 which, when integrated with any
     software (whether in object code or source code form) provided by SCEE,
     creates PlayStation 2 format Software.

1.12 "Printed Materials" means all artwork and mechanicals to be set forth on
     the Licensed Product itself, and on the PlayStation 2 box (or other
     container) and, if applicable, the box (or other) packaging for the
     Licensed Product and all instruction manuals, inlays, inserts, stickers
     and other user information and/or materials to be inserted in or affixed
     to such PlayStation 2 box and/or packaging.

1.13 "Advertising Materials" means all advertising, merchandising, promotional
     and display materials of or concerning the Licensed Products.

1.14 "Manufactured Materials" means all units of the Licensed Products, of the
     Printed Materials to be set forth on the Licensed Products themselves and
     of the PlayStation 2 boxes for such Licensed Products (which expression
     shall include any alternative form of container for Licensed Products
     subsequently introduced by SCEE).

1.15 "Specifications" means such specifications relating to the content and/or
     manufacture of Licensed Products, Printed Materials, Advertising Materials
     and/or related matters or materials as may be issued by Sony, which
     specifications (and/or procedures relating to the testing or verification
     of all such materials for conformity to the Specifications and/or relating
     to the ordering and manufacture of Licensed Products and associated
     materia1s) may be amended from time to time upon reasonable notice to
     Publisher.

1.16 "CNDA" means the Confidentiality & Non-Disclosure (or similar) Agreement
     between Publisher and SCEE or an Affiliate of SCEE relating to PlayStation
     2 and to Confidential Information of Sony and/or of Publisher thereunder.

1.17 "Confidential Information of Sony" means the content of this Agreement
     (including the Schedules hereto and the Specifications) and all
     confidential and/or proprietary information, documents and related
     materials of whatever nature (including, without

                                       3
<PAGE>

     limitation all processes, hardware, software, inventions, trade secrets,
     ideas, designs, research, know-how, business methods, production plans and
     marketing plans) concerning PlayStation 2 developed or owned by, licensed
     to or under the control of Sony and, without limitation, information
     otherwise related to Sony's technology, know-how, products, potential
     products, research projects, promotional advertising and marketing plans,
     schedules and budgets, licensing terms and pricing, customer lists and
     details, commercial relationships or negotiations, services, financial
     models and other business information, whether relating to PlayStation 2
     or otherwise including, unless covered by a separate Non-Disclosure
     Agreement between Publisher and SCEE, relating to Sony's "PlayStation"
     predecessor video entertainment system disclosed by whatever means,
     whether directly or indirectly, by or on behalf of Sony to Publisher at
     any time, whether disclosed orally, in writing or in machine-readable or
     other form, or otherwise discovered by Publisher as a result of any
     information or materials provided (whether directly or indirectly) by or
     on behalf of Sony to Publisher.

1.18 "Confidential Information of Publisher" means any and all confidential
     and/or proprietary information, documents and related materials of
     whatever nature (including, without limitation all processes, hardware,
     software, inventions, trade secrets, ideas, designs, research, know-how,
     business methods, production plans and marketing plans) concerning
     PlayStation 2 format Software developed or owned by, licensed to or under
     the control of Publisher and, without limitation, information otherwise
     related to Publisher's technology, know-how, products, potential products,
     research projects, promotional advertising and marketing plans, schedules
     and budgets, licensing terms and pricing, customer lists and details,
     commercial relationships or negotiations, services, financial models and
     other business information, whether relating to PlayStation 2 or otherwise
     disclosed by whatever means, whether directly or indirectly, by or on
     behalf of Publisher to SCEE at any time, whether disclosed orally, in
     writing or in machine-readable or other form, or otherwise discovered by
     SCEE as a result of any information or materials provided (whether
     directly or indirectly) by or on behalf of Publisher to SCEE, which
     information is designated by Publisher as, or becomes known to SCEE under
     circumstances indicating that such information is, confidential or
     proprietary.

1.19 "Third Party Intellectual Property Rights" means all current and future
     patents worldwide, pending patent applications and other patent rights
     (under licence or otherwise), copyrights, trademarks, service marks, trade
     names, semi-conductor topography rights, trade secret rights, technical
     information and know-how (and the equivalents of each of the foregoing
     under the laws of any jurisdiction) of any third party other than
     Publisher or Sony and all other proprietary or intellectual property
     rights worldwide (including, without limitation, all applications and
     registrations with respect thereto), and all renewals and extensions
     thereof.

1.20 "Article 6" means Article 6 of Council Directive 91/250/EEC of 14 May 1991
     on the legal protection of computer programmes.

                                       4
<PAGE>

2. GRANT OF LICENCE

SCEE hereby, grants to Publisher, and Publisher hereby accepts, within the
Licensed Territory only and under the Sony Intellectual Property Rights, a
non-exclusive non-transferable licence, without the right to sub-license
(except as specifically provided herein), to publish PlayStation 2 format
Software in such genres or categories as SCEE shall from time to time designate
in the Specifications, and the right and obligation to use the Licensed
Trademarks, in the form and manner prescribed in the Specifications, strictly,
only and directly in connection with such publication. For these purposes, to
"publish" shall mean any or all of the following: (i) produce Advertising
Materials and Printed Materials; (ii) to issue to SCEE purchase orders for
Manufactured Materials as prescribed in Clause 6; (iii) to market, distribute
and sell Licensed Products (and to authorise others to do so); and (iv) to
sub-license to end users the right to use Licensed Products for non-commercial
purposes only and not for public performance.

3. LIMITATIONS

3.1  Subject always to Article 6, Publisher shall publish PlayStation 2 format
     Software only if developed by a Licensed Developer strictly in accordance
     with all the terms and conditions of such Licensed Developer's LDA 2 and
     shall not publish or attempt to publish any other software whatsoever
     intended for or capable of execution on PlayStation 2. The onus of
     evidencing that PlayStation 2 format Software satisfies the foregoing
     criteria shall rest on Publisher and SCEE reserves the right to require
     Publisher to furnish evidence satisfactory to SCEE that the foregoing
     criteria are satisfied.

3.2  Publisher shall not publish outside the Licensed Territory PlayStation 2
     format Software unless and until Publisher shall be authorised and
     licensed so to do pursuant to a current license agreement with the
     applicable Affiliate of SCEE. Further, Publisher shall not sub-publish
     such PlayStation 2 format Software through a third party either within or
     outside the Licensed Territory unless and until such sub-publisher shall
     be authorised and licensed so to do either pursuant to a current
     PlayStation 2 Licensed Publisher Agreement with SCEE or a current
     PlayStation 2 licence agreement with the applicable Affiliate of SCEE.

3.3  The licence granted in this Agreement extends only to the publication,
     marketing, distribution and sale of Licensed Products in such formats as
     may be designated by SCEE. Without limiting the generality of the
     foregoing and except as otherwise provided herein, Publisher and, if
     applicable, its sub-publishers shall at all times and in all territories
     be strictly prohibited from undertaking or authorising the distribution or
     transmission of PlayStation 2 format Software or Licensed Products through
     electronic means or any other means now known or hereafter devised,
     including without limitation, via wireless, cable, fiber optic means,
     telephone lines, microwave and/or radio waves, or over a network of
     interconnected computers or other devices. Notwithstanding this
     limitation, Publisher may electronically transmit PlayStation 2 format
     Software from site to site, or from machine to machine over a computer
     network, for the sole purpose of facilitating development; provided that
     no right of retransmission shall attach to any such transmission, and
     provided further that Publisher shall use reasonable security measures

                                       5
<PAGE>

     customary within the high technology industry to reduce the risk of
     unauthorised interception or retransmission of such transmissions.

     For the avoidance of doubt, the foregoing shall apply only to PlayStation
     2 format Software and to Licensed Products and shall not apply to Licensed
     Developer Software which does not utilise Sony Materials and/or Sony
     Intellectual Property Rights and/or, subject to Council Directive
     91/250/EEC, Confidential Information of Sony.

3.4  Subject only to Article 6, Publisher and, if applicable, its
     sub-publishers shall at all times be strictly prohibited from
     disassembling or decompiling software, peeling semiconductor components or
     otherwise reverse engineering or attempting to reverse engineer or derive
     source code or create derivative works from PlayStation 2 format Software,
     from permitting or encouraging any third party so to do, and from
     acquiring or using any materials from any third party who does so.
     Publisher shall in all cases be primarily liable for the payment of
     Platform Charge to SCEE in accordance with Clause 7 hereof in respect of
     any product published by Publisher, or, if applicable, any of its
     sub-publishers, which utilizes Sony Materials and/or Sony Intellectual
     Property Rights and/or, subject to Council Directive 91/250/EEC,
     Confidential Information of Sony. The onus of evidencing that any such
     product is not so published shall rest on Publisher and SCEE reserves the
     right to require Publisher to furnish evidence satisfactory to SCEE that
     the applicable of the foregoing criteria are satisfied.

3.5  Publisher shall inform all such sub-publishers of the obligations imposed
     by this Agreement and shall obtain their commitment to abide by the same.

3.6  Any breach of the provisions of this Clause 3 shall be a material breach
     of this Agreement not capable of remedy.

4. RESERVATIONS

4.1  This Agreement does not grant any right or license, under any Sony
     Intellectual Property Rights or otherwise, except as expressly provided
     herein, and no other right or license is to be implied by or inferred from
     any provision of this Agreement or the conduct of the parties hereunder.
     Subject only to the rights of Publisher under this Agreement, all right,
     title and interest in and to the Sony Materials and the Sony Intellectual
     Property Rights are and shall be the exclusive property of Sony, and
     Publisher shall not make use of, or do or cause to be done any act or
     thing contesting or in any way impairing or tending to impair any of
     Sony's right, title or interest in or to, any of the Sony Materials, Sony
     Intellectual Property Rights, PlayStation 2 and/or Sony's "PlayStation"
     predecessor video entertainment system except as authorised by and in
     compliance with the provisions of this Agreement or as may otherwise
     expressly be authorised in writing by Sony; provided however that the
     foregoing shall not be taken to preclude Publisher from challenging the
     validity of any Sony Intellectual Property Rights. No right, license or
     privilege has been granted to Publisher hereunder concerning the
     development of any collateral product or other use or purpose of any kind
     whatsoever which displays or depicts any of the Licensed Trademarks. No
     promotional or novelty items or premium products (including, by way of
     illustration but without limitation, T-shirts, posters, stickers, etc)
     displaying or

                                       6
<PAGE>

     depicting any of the Licensed Trademarks shall be developed, manufactured,
     marketed, sold and/or distributed by, with the authority of or on behalf
     of, Publisher without the prior written consent and authorisation of SCEE
     in each case.

4.2  The Licensed Trademarks and the goodwill associated therewith are and
     shall be the exclusive property of Sony. Nothing herein shall give
     Publisher any right, title or interest in or to any of the Licensed
     Trademarks, other than the non-exclusive license and privilege to display
     and use the Licensed Trademarks solely in accordance with the provisions
     of this Agreement. Publisher shall not do or cause to be done any act or
     thing contesting or in any way impairing or tending to impair any of
     Sony's right, title or interest in or to any of the Licensed Trademarks,
     nor shall Publisher register or apply to register any trademark in its own
     name or in the name of any other person or entity, or obtain or seek to
     obtain rights to employ Internet domain name(s) or address(es), which is
     or are similar to or is or are likely to be confused with any of the
     Licensed Trademarks; provided however that the foregoing shall not be
     taken to preclude Publisher from challenging the validity of any Licensed
     Trademarks.

4.3  Publisher or Licensed Developer (as applicable) retains all right, title
     and interest in and to Licensed Developer Software, including Licensed
     Developer's intellectual property rights therein and any names or other
     designations used as titles therefore, and nothing in this Agreement shall
     be construed to restrict the right of Licensed Developer to develop and/or
     the right of Publisher to publish products incorporating Licensed
     Developer Software (separate and apart from Sony Materials), and/or under
     such names or other designations, for any hardware platform or service
     other than PlayStation 2.

4.4  Subject to the proviso to Clauses 4.1 and 4.2 above, Publisher shall, at
     the expense of SCEE, take all such steps as SCEE may reasonably require,
     including the execution of Licenses and registrations, to assist SCEE in
     maintaining the validity and enforceability of Sony Intellectual Property
     Rights.

4.5  Without prejudice to Clause 11, Publisher or SCEE (as applicable) shall
     promptly and fully notify the other in writing in the event that it
     discovers or otherwise becomes aware of any actual, threatened or
     suspected infringement of any of the intellectual property or trademark
     rights of the other embodied in any of the Licensed Products, and of any
     claim of infringement or alleged infringement by the other of any Third
     Party Intellectual Property Rights, and shall at the request and expense
     of the other do all such things as may reasonably be required to assist
     the other in taking or resisting any proceedings in relation to any such
     infringement or claim.

5. QUALITY STANDARDS

5.1  Publishers shall provide SCEE with a Product Planning Notification for
     each Licensed Product in accordance with the Specifications.

     Each Licensed Product, including without limitation the title and content
     thereof, and/or Publisher's use of any of the Licensed Trademarks, shall
     be required to conform to the

                                       7
<PAGE>

     Specifications and shall not, except as specifically authorised in writing
     by SCEE in each case, incorporate (in whole or in part) more than 1 (one)
     game product.

     Testing or verification for conformity to the specifications shall be
     conducted by SECC or, at publisher's election, by an independent external
     testing service (if and when such service becomes available).

5.2  Publisher shall submit for testing for conformity to the Specifications
     such information and materials relating to the PlayStation 2 format
     Software for each Licensed Product as shall be specified in the
     Specifications. Such Specifications shall be comparable with the
     specifications applied by Sony with respect to its own PlayStation 2
     format Software products. SCEE acknowledges and agrees that such
     Specifications shall be of prospective application only and shall not be
     applied to any inventory units of the Licensed Products manufactured prior
     to, or in the active process of manufacture at the date of, the
     promulgation thereof by SCEE.

5.3  For each Licensed Product, Publisher shall be responsible, at Publisher's
     expense, for the origination of all Printed Materials, and for the
     manufacture and delivery to the manufacturer of such Licensed Product of
     all Printed Materials other than those to be set forth on the Licensed
     Product itself, all of which Printed Materials shall: (i) conform in all
     material respect to the Specifications; and (ii) include such other
     materials (including by way of illustration but not limitation, consumer
     health warnings in relation to epilepsy) and such consumer advisory rating
     code(s) as may from time to time be required by any governmental entity or
     in compliance with any voluntary code of practice operated by members of
     the interactive software development and publishing community. The
     Specifications referred to in (i) above shall be comparable with the
     specifications applied by Sony with respect to its own PlayStation 2
     format Software products. SCEE acknowledges and agrees that such
     Specifications shall be of prospective application only and shall not be
     applied to any inventory units of the Licensed Products manufactured prior
     to, or in the active process of manufacture at the date of, the
     promulgation thereof. All materials to be submitted pursuant to this
     Clause 5.3 shall be delivered by such means and in such form as shall be
     prescribed in the Specifications and at Publisher's sole risk and expense.
     Publisher undertakes that the quality of such Printed Materials shall be
     of the same quality as that associated with high quality consumer
     products.

5.4  When applicable, SCEE (or, where applicable, an independent external
     testing service as aforesaid) will test or verify for conformity to the
     Specifications (as the case may be) all materials submitted by Publisher
     pursuant to Clause 5.2 and Clause 5.3. Where such testing or verification
     is conducted by SCEE, SCEE shall advise Publisher of the results of such
     testing or verification within the applicable of the timeframes specified
     in the Specifications. Where such testing or verification is conducted by
     such independent external testing service, such service shall advise
     Publisher of the results of such testing or verification within timeframes
     agreed between such service and Publisher (and SCEE shall have no
     responsibility or liability whatsoever arising from a failure by such
     service to meet such timeframes). If any of such materials (or any
     element(s) thereof) fail to conform to the Specifications, SCEE (or, where
     applicable, such independent external testing service) shall specify the
     reasons for such failure and state what revisions are required. After
     making the required revisions, Publisher may resubmit such materials in

                                       8
<PAGE>

     such revised form for re-testing or re-verification by SCEE (or, where
     applicable, such independent external testing service). The procedures
     described in this Clause 5.4 shall if necessary be repeated until all such
     materials for each Licensed Product shall expressly have been certified as
     conforming to the Specifications, such certification to be validly given
     only if in writing and signed by the duly authorised representative(s) of
     SCEE as specified in the Specifications (or, where applicable, by the duly
     authorised representative(s) of such independent external testing
     service). SCEE shall have no liability to Publisher for the accuracy or
     content (including translations and localisations) of Printed Materials
     (except only items required to be included in accordance with the
     Specifications) or in respect of costs incurred or irrevocably committed
     by Publisher as a result of any failure to conform to Specifications (even
     where certified for conformity) or in relation to, or to the use of,
     Printed Materials which shall not have been given a certificate of
     conformity by SCEE (or, where applicable, by such independent external
     testing service). No production units of any Licensed Product shall be
     manufactured, marketed, distributed or sold by, with the authority of or
     on behalf of, Publisher unless and until such a certificate of conformity
     of such Licensed Product shall first have been given by SCEE (or, where
     applicable, by such independent external testing service). No certificate
     of conformity from SCEE (or, where applicable, from such independent
     external testing service) of any element of the materials so submitted or
     resubmitted shall be deemed a certificate of conformity of any other
     element of such materials, nor shall any such certificate of conformity be
     deemed to constitute a waiver of any of SCEE's rights under this
     Agreement.

     The generality of the foregoing notwithstanding, in the event that
     Publisher wishes to contest a finding by SCEE of non-conformity to the
     Specifications, and as an alternate to making required revisions and
     resubmissions as above, Publisher may have recourse to the appeals process
     specified in the Specifications.

5.5  Publisher shall not change in any materials respect any of the materials
     for which a certificate of conformity shall have been given by SCEE (or,
     where applicable, by an independent external testing service) pursuant to
     Clause 5.4 (or, if applicable, pursuant to Clause 5.6) (or, alternately,
     which shall have been held to conform to the Specifications following
     recourse by Publisher to the appeals process specified in the
     Specifications). If any of the Licensed Products and/or related materials
     published by, with the authority of or on behalf of Publisher fail to
     conform to the Specifications and the materials for which SCEE (or, where
     applicable, such independent external testing service) shall from time to
     time have given a certificate of conformity, then the provisions of Clause
     13.2 shall apply.

5.6  SCEE reserve the right to require that pre-production samples of all
     Advertising Materials shall be submitted by Publisher to SCEE or at
     Publisher's election, to an independent external testing service (if and
     when such service becomes available), free of charge and in accordance
     with the procedure specified in the Specifications, for verification for
     conformity to the Specifications (including specifically, but without
     limitation, in relation to the usage of any of the Licensed Trademarks),
     prior to any actual production, use or distribution of any such items by,
     with the authority or on behalf of, Publisher. No such proposed
     Advertising Materials shall be produced, used or distributed

                                       9
<PAGE>

     directly or indirectly by Publisher without first obtaining a certificate
     of conformity to the Specifications. Where such verification is conducted
     by SCEG, SCEE shall advise Publisher of the results of such verification
     within the applicable of the time frame specified in the Specifications.
     Where such verification is conducted by such independent external testing
     service, such service shall advise Publisher of the results of such
     verification within timeframes agreed between such service and Publisher
     (and SCEE shall have no responsibility or liability whatsoever arising
     from a failure by such service to meet such timeframes). If any such
     Advertising Materials (or any element(s) thereof) fail to conform to the
     Specifications, SCEE (or, where applicable, such independent external
     testing service) shall specify the reasons for such failure and state what
     revisions are required. After making the required revisions, Publisher may
     resubmit such materials in such revised form for re-verification by SCEE
     (or, where applicable, by such independent external testing service). The
     procedures described in this Clause 5.6 shall if necessary be repeated
     until all such Advertising Materials for each Licensed Product shall
     expressly have been certified as conforming to the Specification, such
     certification to be validly given only if in writing and signed by the
     duly authorized representative(s) of SCEE as specified in the
     Specifications (or, where applicable, by the duly authorised
     representative(s) of such independent external testing service). SCEE
     shall have no liability to Publisher in respect of costs incurred or
     irrevocably committed by Publisher in relation to, or to the use of,
     Advertising Materials which shall not have been given a certificate of
     conformity by SCEE (or, where applicable, by such independent external
     testing service). No certificate of conformity from SCEE (or, where
     applicable, from such independent external testing service) of any element
     of Advertising Materials so submitted or resubmitted shall be deemed a
     certificate of conformity of any other element of such Advertising
     Materials, nor shall any such certificate of conformity be deemed to
     constitute a waiver of any of SCEE's rights under this Agreement.

     The generality of the foregoing notwithstanding, in the event that
     Publisher wishes to contest a finding of non-conformity to the
     Specifications by SCEE, and as an alternate to making required revisions
     and resubmissions as above, Publisher may have recourse to the appeals
     process specified in the Specifications.

     Subject in each instance to the prior written consent of SCEE, Publisher
     may use such textual and/or pictorial advertising matter (if any) as may
     be created by, with the authority or on behalf of, Sony pertaining to the
     Sony Materials and/or to the Licensed Trademarks on such Advertising
     Materials as may, in Publisher's judgment, promote the sale of Licensed
     Products within the Licensed Territory. Sony shall have the right to use
     Licensed Products and/or other materials relating to Publisher's
     PlayStation 2 format Software titles in any advertising or promotion for
     PlayStation 2 at Sony's expense, subject to giving Publisher reasonable
     prior notice of such advertisement or promotion. Sony shall confer with
     Publisher regarding the text of any such advertisement. If required by
     Sony and/or any governmental entity or in compliance with any voluntary
     code of practice operated by members of the interactive software
     development and publishing community, Publisher shall, at Publisher's cost
     and expense, also include consumer advisory rating code(s) and, if
     required, other materials (including by way of illustration but not
     limitation, consumer health warnings in relation to epilepsy) on any

                                      10
<PAGE>

     and all Advertising Materials used in connection with Licensed Products.
     Such consumer advisory rating code(s) shall be procured in accordance with
     the provisions of Clause 5.7

5.7  Publisher agrees that, if required by SCEE or any governmental entity, it
     shall submit each Licensed Product to a consumer advisory ratings system
     designated by SCEE and/or such governmental entity for the purpose of
     obtaining rating code(s) for each Licensed Product. Any and all costs and
     expenses incurred in connection with obtaining such rating code(s) shall
     be borne solely by Publisher. Any required consumer advisory rating
     code(s) thereby procured shall be displayed on Licensed Products and
     associated Printed Materials in accordance with the Specifications, at
     Publisher's cost and expense.

5.8  In the event Publisher fails to comply with its obligations in relation
     thereto as specified in Clause 5.7, SCEE reserves the right in its sole
     discretion, at Publisher's sole cost and expense: (i) to display, or to
     require the display on Licensed Products and/or associated Printed
     Materials and/or associated Advertising Materials (as may be required)
     materials (including by way of illustration but not limitation, consumer
     health warnings in relation to epilepsy) and/or to procure and to display,
     or to require the display of, consumer advisory rating code(s); or (ii) to
     require non-complying Licensed Products and/or associated Printed
     Materials and/or associated Advertising Materials forthwith to be
     withdrawn from the market.

6. MANUFACTURE OF LICENSED PRODUCTS & ASSOCIATED MATERIALS

6.1  Subject only to Article 6, Publisher acknowledges and agrees that it shall
     purchase Manufactured Materials only from an authorised manufacturing
     facility licensed by SCEE. SCEE shall have the right, but no obligation,
     to subcontract the whole or any part or phase of the production of any or
     all of the Manufactured Materials or any part(s) thereof.

6.2  Subject always to Article 6, promptly following the giving by SCEE (or,
     where applicable, by an independent external testing service as aforesaid)
     of a certificate of conformity to the Specifications (or, alternatively, a
     holding of conformity to the Specifications following recourse by
     Publisher to the appeals process specified in the Specifications) for each
     Licensed Product pursuant to Clause 5.2, SCEE shall create (from one of
     the CD copies of the finally approved version of the PlayStation 2 format
     Software as submitted by Publisher pursuant to Clause 5.2) the original
     master PlayStation 2 Disc ("Master PlayStation 2 Disc") from which all
     other copies of the Licensed Product are to be replicated in compliance
     with the Specifications effective at the time of replication. Where such
     certificate of conformity shall have been given by such as independent
     external testing service, then the CD copy of the finally approved version
     of the PlayStation 2 format Software as submitted by Publisher pursuant to
     Clause 5.2 from which the Master PlayStation 2 Disc is to be created shall
     be furnished SCEE by such service. Publisher shall be responsible for the
     costs, as set forth in Schedule 2, of creating such Master PlayStation 2
     Disc. Publisher will retain duplicates of all such PlayStation 2 format
     Software. SCEE shall not be liable for loss of or damage to any copies of
     the PlayStation 2 format Software furnished SCEE hereunder. There will be
     no Technology Exchange between Sony and Publisher under this Agreement.

                                      11
<PAGE>

     The mastering process being of a proprietary and commercially confidential
     nature, neither SCEE nor any manufacturing subcontractor of SCEE will
     under any circumstances release any Master PlayStation 2 Disc or other
     in-process materials to Publisher. All such physical materials shall be
     and remain the sole property of Sonly.

6.3  Subject always to Article 6, Publisher shall be solely responsible for the
     delivery, direct to an authorised manufacturing facility licensed by SCEE
     and in accordance with Clause 6.4, 110% (one hundred and ten percent) of
     the number of sets of the Printed Materials (other than those set forth on
     the applicable Licensed Product itself) required to fulfill Publisher's
     purchase order for Manufactured Materials of each PlayStation 2 format
     Software title, which Printed Materials shall be in strict compliance with
     the Specifications. SCEE shall, at Publisher's request, gave Publisher all
     reasonable assistance in arranging the manufacture of Printed Materials to
     be used in conjunction with Licensed Products not manufactured in reliance
     on Article 6 through SCEE's authorised manufacturing facility (if a Sony
     company), but SCEE shall have no responsibility with respect to pricing,
     delivery or any other related matter whatsoever in connection with such
     manufacture.

6.4  Subject to the giving by SCEE of a certificate of conformity to the
     Specifications (or, alternatively, a holding of conformity following
     recourse by Publisher to the appeals process specified in the
     Specifications) for the applicable PlayStation 2 format Software and
     Printed Materials pursuant to Clause 5, and to the delivery to an
     authorised manufacturing facility licensed by SCEE of the materials to be
     delivered under Clause 6.3, SCEE will, at Publisher's expense and as
     applicable, manufacture, assemble, package and deliver the Manufactured
     Materials and the Printed Materials in accordance with the terms and
     conditions set forth in this Clause 6. The delivery of the materials
     specified in Clause 6.3 shall be made in accordance with the timetable for
     such delivery specified in the Specifications.

6.5  Subject always to Article 6, Publisher shall issue to SCEE purchase
     order(s) via SCEE's Electronic Order System (or otherwise as specified by
     SCEE from time to time) in accordance with, and in compliance with the
     timetable specified in, the Specifications. No such order shall be issued
     unless and until all necessary certificates of conformity shall have been
     given (or, alternatively, there shall have been a holding of conformity
     following recourse by Publisher to the appeals process specified in the
     Specifications) pursuant to Clause 5. Each such order shall reference
     Publisher authorisation number and purchase order reference number,
     specify quantities of PlayStation 2 format Software by title by pack sku
     (in multiples of the minimum box shipment detailed in the Specifications),
     state requested ex-factory delivery date and all packaging information
     together with such other information as SCEE shall reasonably require and
     shall be for not less than the applicable minimum order quantity as
     specified in Schedule 2 hereto. All such purchase orders shall be subject
     to acceptance by SCEE, which acceptance will be advised to Publisher not
     more than 3 (three) working days following delivery in accordance with
     Clause 6.4 of the materials required to be delivered under Clause 6.2 and
     6.3. SCEE shall use all reasonable endeavours, subject to available
     manufacturing capacity, to fulfil Publisher's purchase orders by
     Publisher's requested ex-factory delivery date but does not in any event
     guarantee so to do. Publisher shall have no right

                                      12
<PAGE>

     to cancel or reschedule any purchase order or reorder (or any portion
     thereof) for any Licensed Product unless the parties shall first have
     reached mutual agreement as to Publisher's financial liability with
     respect to any desired cancellation or rescheduling of any such purchase
     order or reorder (or any portion thereof).

6.6  Subject only to the provisions of Clause 6.5 in relation to Printed
     Materials, neither SCEE nor any manufacturing subcontractor of SCEE shall
     be under any obligation to store finished units of Manufactured Materials
     or of associated Printed Materials beyond the actual ex-factory delivery
     date thereof. Delivery of Manufactured Materials shall be made ex-factory
     the applicable authorised manufacturing facility licensed by SCEE in the
     Licensed Territory. All risk of loss or damage in transit to any and all
     Manufactured Materials manufactured by SCEE pursuant to Publisher's orders
     shall pass to Publisher forthwith upon first handling by Publisher's
     carrier.

6.7  Publisher may inspect and test any units of Manufactured Materials not
     manufactured in reliance on Article 6 at Publisher's receiving
     destination. Any finished units of such Manufactured Materials which fail
     to conform to the Specifications and/or any description(s) contained in
     this Agreement may be rejected by Publisher by providing written notice of
     rejection to SCEE within 30 (thirty) days of receipt of such units of such
     Manufactured Materials at Publisher's receiving destination. In such event,
     the provisions of Clause 10.2 shall apply with respect to any such rejected
     units of Manufactured Materials. Notwithstanding the provisions of Clause
     10.2, if Publisher fails to reject any units of such Manufactured Materials
     in the manner and within the 30 (thirty) day period prescribed above, such
     units of Manufactured Materials shall irrevocably be deemed accepted by
     Publisher and shall not subsequently be rejected.

6.8  In no circumstances shall SCEE or its authorised manufacturing facility
     treat any of Publisher's Licensed Products in any way more or less
     favourably, in terms or production turnaround times or otherwise, than the
     Licensed Products of any other Licensed Publisher or SCEE or than
     PlayStation 2 format Software products published by SCEE itself.

7. PLATFORM CHARGE

7.1  The all-in Platform Charge for finished units of Manufactured Materials in
     respect of which SCEE accepts Publisher's purchase order in accordance
     with Clause 6.5 shall be as specified in Schedule 2 (but subject to
     adjustment as therein provided). Such Platform Charge shall be subject to
     change by SCEE at any time upon reasonable notice to Publisher, provided,
     however, that such Platform Charge shall not be changed with respect to
     any units of Manufactured Materials which are the subject of an effective
     purchase order or reorder but which have not yet been delivered by SCEE.
     Such Platform Charge for finished units of Manufactured Materials is
     exclusive of any value-added or similar sales tax, customs and excise
     duties and other similar taxes or duties, which SCEE may be required to
     collect or pay as a consequence of the sale or delivery of finished unites
     of Manufactured Materials. Publisher shall be solely responsible for the
     payment or reimbursement of any such taxes or duties, and other such
     charges or

                                      13
<PAGE>

     assessments applicable to the sale and/or purchase of finished units of
     Manufactured Materials.

     The Platform Charge for products developed utilising Sony Materials and/or
     Sony Intellectual Property Rights and/or, subject to Council Directive
     91/250/EEC, Confidential Information of Sony, but manufactured in reliance
     on Article 6, shall be the otherwise applicable Platform Charge less only
     such sum as represents from time to time the costs of raw materials and
     for production services (including for utilisation if Sony's proprietary
     Disc Mastering technology) for the products concerned which SCEE would
     otherwise have been invoiced for by SCEE's authorised manufacturing
     facility ("the Article 6 Platform Charge"). If Publisher has products so
     manufactured in reliance on Article 6, then Publisher shall furnish SCEE,
     within 28 (twenty eight) days following the close of each calendar month:
     (i) a written reporting of the number or inventory units (by product title)
     of products so manufactured during such calendar month: (ii) an external
     auditor's certificate (or similar independent certificate reasonably
     acceptable to SCEE) confirming the completeness and accuracy of such
     reporting; (iii) Publisher's remittance for the Article 6 Platform Charge
     multiplied by the number of inventory units reflected in such reporting.
     Any failure fully and promptly to comply with the foregoing reporting and
     payment obligation shall constitute a breach of this Agreement not capable
     of remedy, entitling SCEE forthwith to terminate the Term pursuant to
     Clause 13.1(i); and upon termination by SCEE for such cause, the provisions
     of Clause 14.2 shall come into effect.

     SCEE shall upon reasonable written request provide Publisher details of
     the aforementioned costs of raw materials and production services if
     Publisher has legitimately exercised its rights under Article 6 or
     genuinely intends to exercise and rely upon such rights. However, SCEE
     reserves the right to require Publisher to execute a separate
     Non-Disclosure Agreement before making such information available.

7.2  No costs incurred in the development, manufacture, marketing, sale and/or
     distribution of Licensed Products and/or associated materials shall be
     deducted from any Platform Charge payable to SCEE hereunder. Similarly,
     there shall be no deduction from the Platform Charge otherwise payable to
     SCEE hereunder as a result of any uncollectable accounts owed to
     Publisher, or for any credits, discounts, allowances or returns which
     Publisher may credit or otherwise grant to any third party customer in
     respect of any units of Licensed Products and/or associated materials, or
     for any taxes, fees, assessments, or expenses of any kind which may be
     incurred by Publisher in connection with its sale and/or distribution of
     any units of Licensed Products associated materials, and/or arising with
     respect to the payment of Platform Charge hereunder. Publisher shall
     furnish SCEE official tax receipts or other such documentary evidence
     issued by the applicable tax authorities sufficient to substantiate the
     fact of the deduction of any withholding taxes and/or other such
     assessments which may be imposed by any governmental authority with
     respect to such payments of Platform Charge hereunder and the amount of
     each such deduction.

7.3  Publisher shall effect payment for the Platform Charge specified in Clause
     7.1 for the finished units of Manufactured Materials the subject matter of
     each purchase order issued

                                      14
<PAGE>
Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

     pursuant to Clause 6.5 in accordance with the Specifications. Each delivery
     of Manufactured Materials to Publisher shall constitute a separate sale
     obligating Publisher to pay therefor, whether said delivery be whole or
     partial fulfilment of any order. No claim for credit due to shortage of
     Manufactured Materials as delivered to carrier will be allowed unless it is
     made within 5 (five) working days from the date of receipt at Publisher's
     receiving destination. Title to Manufactured Materials the subject of each
     such purchase order shall pass to Publisher only upon payment in full of
     the Platform Charge due in respect thereof. The receipt and deposit by SCEE
     of any payment of Platform Charge tendered by or on behalf of Publisher as
     aforesaid shall be without prejudice to any rights or remedies of SCEE and
     shall not restrict or prevent SCEE from thereafter successfully challenging
     the basis for calculation and/or the accuracy of such payments. SCEE
     reserves the right, upon reasonable notice to Publisher, to require that
     such payments of Platform Charge be made to such other Sony entity as SCEE
     may designate from time to time.

8. MARKETING & DISTRIBUTION

     Publisher shall, at no expense to SCEE, diligently market, distribute and
     sell Licensed Products throughout (but only in) the Licensed Territory,
     and shall use all reasonable efforts consistent with its best business
     judgment to stimulate demand therefor in the Licensed Territory and to
     supply any resulting demand. Publisher shall not market, distribute or
     sell Licensed Products outside the Licensed Products or to any person,
     firm, corporation or entity having its place of business, or to any
     purchasing agency located, outside the Licensed Territory. Publisher shall
     use all reasonable efforts consistent with its best business judgement to
     protect Licensed Products from and against illegal reproduction and/or
     copying by end users or by any other persons or entities. Such methods of
     protection may include, without limitation, markings or insignia providing
     identification of authenticity and packaging seals as may be specified in
     the Specifications. SCEE shall be entitled, at SCEE's sole cost and
     expense, to manufacture up to 200 (two hundred) additional units of
     Manufactured Materials (or such greater number of additional units as
     shall be agreed by Publisher, such agreement not unreasonably to be
     withheld or delayed) for each PlayStation 2 format Software title (and to
     purchase from Publisher, at a price equal to the actual cost thereof to
     Publisher, a corresponding number of units of Printed Materials for each
     such PlayStation 2 format Software title), for the purposes of or in
     connection with the marketing and promotion of PlayStation 2; provided
     however that SCEE shall not directly or indirectly resell any such units
     of Manufactured Materials (and, if applicable, of Printed Materials)
     within the Licensed Territory without Publisher's prior written consent.
     Further, SCEE shall be entitled to utilise Publisher's name and/or logo
     and the audio-visual content of, and/or the Printed Materials for,
     PlayStation 2 format Software titles (not to exclude the likenesses of any
     recognisable talent) for the purposes of or in connection with such
     marketing and promotion.

9. CONFIDENTIALITY

9.1  [*]

                                      15
<PAGE>
Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

9.2  [*]

9.3  [*]

9.4  [*]

9.5  [*]

9.6  [*]

10.  WARRANTIES

10.1 SCEE represents and warrants solely for the benefit of Publisher that SCEE
     has the right, power and authority to enter into, and fully to perform its
     obligations under, this Agreement.

                                      16
<PAGE>

10.2 SCEE warrants that units of PlayStation 2 Discs comprising Licensed
     Products manufactured by SCEE for Publisher pursuant to Clause 6 hereof
     shall be free from defects in materials and workmanship under normal use
     and service at time of delivery in accordance with Clause 6.6. The sole
     obligation of SCEE under this warranty shall be, for a period of 90
     (ninety) days from the date of delivery of such discs in accordance with
     Clause 6.6, at SCEE's election, either (i) to replace such defective discs
     or (ii) to issue credit for, or to refund to Publisher the Platform Charge
     of such defective discs (excluding PlayStation 2 Disc mastering charge)
     and to reimburse Publisher its reasonable return shipping costs. Such
     warranty is the only warranty applicable to Licensed Products manufactured
     by SCEE for Publisher pursuant to Clause 6. This warranty shall not apply
     to damage resulting from accident, fair wear and tear, willful damage,
     alteration, negligence, abnormal conditions of use, failure to follow
     directions for use (whether given in instruction manuals or otherwise
     howsoever) or misuse of Licensed Products, or to discs comprising less
     than 1% (one percent) or, if greater, 100 (one hundred) units in the
     aggregate of the total number of Licensed Products manufactured by SCEE
     for Publisher per purchase order of any PlayStation 2 format Software
     title. If, during such 90 (ninety) day period, defects appear as
     aforesaid, Publisher shall notify SCEE and, upon request by SCEE (but not
     otherwise), return such defective discs, with a written description of the
     defect claimed, to such location as SCEE shall designate. SCEE shall not
     accept for replacement, credit or refund as aforesaid any Licensed
     Products except factory defective discs (i.e., discs that are not free
     from defects in materials and workmanship under normal use and service).
     All returns of defective discs shall be subject to prior written
     authorisation by SCEE, not unreasonably to be withheld. If no defect
     exists or the defect is not such as to be covered under the above
     warranty, Publisher shall reimburse SCEE for expenses incurred in
     processing and analysing the discs.

10.3 Publisher represents, warrants, covenants and agrees that: (i) Publisher
     has the right, power and authority to enter into, and fully to perform its
     obligation under, this Agreement; (ii) the making of this Agreement by
     Publisher does not violate any separate agreement, rights or obligations
     existing between Publisher and any other person, firm, corporation or
     entity, and, throughout the Term, Publisher shall not make any separate
     agreement with any person or entity which is inconsistent with any of the
     provisions hereof; (iii) both Licensed Developer Software and PlayStation
     2 format Software, and any name, designation or title used in conjunction
     therewith, shall be free from any valid third party claim of infringement
     of any Third Party Intellectual Property Rights; (iv) there is no
     litigation, proceeding or claim pending or threatened against Publisher or
     any subsidiary or affiliate of Publisher which may materially affect
     Publisher's rights in and to Licensed Developer Software, the names,
     designations or titles used in conjunction therewith, the works and
     performances embodied therein and/or the copyrights pertaining thereto;
     (v) Publisher shall have made or shall make any and all payments required
     to be made to any person, firm, corporation or other entity, or to any
     body or group representing authors or participants in the production of
     the works or performances embodied in Licensed Developer Software and
     PlayStation 2 format Software, or to publishers or other persons having
     legal or contractual rights of any kind to participate in any income
     arising in respect of the exploitation of such works or performances; (vi)
     neither Publisher nor any subsidiary or affiliate of Publisher shall make
     any

                                      17
<PAGE>
Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

     representation or give any warranty to any person or entity expressly or
     impliedly on Sony's behalf, or to the effect that Licensed Products are
     connected in any way with Sony (other than that Licensed Products have
     been developed, marketed, manufactured, sold and/or distributed under
     license from Sony); (vii) PlayStation 2 format Software shall be
     distributed by Publisher solely in the form of Licensed Product; (viii)
     each Licensed Product shall be marketed, sold and distributed in an
     ethical manner and in accordance with all applicable laws and regulations;
     and (ix) Publisher's policies and practices with respect to the marketing,
     sale and/or distribution of Licensed Products shall in no manner reflect
     adversely upon the name, reputation or goodwill of Sony.

10.4 [*]

11.  INDEMNITIES

11.1 SCEE shall indemnify and hold Publisher harmless from and against any and
     all claims, losses, liabilities, damages, expenses and costs, including
     without limitation reasonable fees for lawyers, expert witnesses and
     litigation costs, and including costs incurred in the settlement or
     avoidance of any such claim, which result from or are in connection with a
     breach of any of the warranties provided by SCEE herein; provided however
     that Publisher shall give prompt written notice to SCEE of the assertion
     of any such claim, and provided further that SCEE shall have the right to
     select counsel and control the defence and/or settlement thereof, subject
     to the right of Publisher to participate in any such action or proceeding
     at its own expense with counsel of its own choosing. SCEE shall have the
     exclusive right, at its discretion, to commence and prosecute at its own
     expense any lawsuit or to take such other action with respect to such
     matters as shall be deemed appropriate by SCEE. Publisher shall provide
     SCEE, at no expense to Publisher, reasonable assistance and cooperation
     concerning any such matter. Publisher shall not agree to the compromise,
     settlement or abandonment of any such claim, action or proceeding without
     SCEE's prior written consent. [*]

11.2 Publisher shall indemnify and hold SCEE harmless from and against any and
     all claims, losses, liabilities, damages, expenses and costs, including
     without limitation reasonable fees for lawyers, expert witnesses and
     litigation costs, and including costs incurred in the settlement or
     avoidance of any such claim, which result from or are in connection with
     (i) a breach of any of the warranties provided by Publisher herein or any
     breach of Publisher's confidentiality obligations as referred to in Clause
     9.1 hereof, or (ii) any claim of infringement or alleged infringement of
     any Third Party Intellectual Property Rights with respect to Licensed
     Developer Software, or (iii) any claim of or in connection with any injury
     (including death) or property damage, by whomsoever such claim is made
     arising (in whole or in part) out of the manufacture, sale and/or use of
     any of the Manufactured Materials unless resulting from the proven
     negligence of Sony; provided however that SCEE shall give prompt written
     notice to Publisher of the assertion of any such claim, and provide
     further that Publisher shall have the right o select counsel and

                                      18
<PAGE>

     control the defence and/or settlement thereof, subject to the right of
     SCEE to participate in any such action or proceeding at its own expense
     with counsel of its own choosing. Publisher shall have the exclusive
     right, at its discretion, to commence and/or prosecute at its own expense
     any lawsuit or to take such other action with respect to such matter as
     shall be deemed appropriate by Publisher. SCEE shall provide Publisher, at
     no expense to SCEE, reasonable assistance and cooperation concerning any
     such matter, SCEE shall not agree to the compromise, settlement or
     abandonment of any such claim, action or proceeding without Publisher's
     prior written consent.

12.  LIMITATIONS OF LIABILITY

12.1 IN NO EVENT SHALL SONY OR ITS SUPPLIERS BE LIABLE FOR PROSPECTIVE PROFITS,
     OR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN
     CONNECTION WITH THIS AGREEMENT (INCLUDING WITHOUT LIMITATION THE BREACH OF
     THIS AGREEMENT BY SCEE), WHETHER UNDER THEORY OF CONTRACT, TORT (INCLUDING
     NEGLIGENCE), INDEMNITY, PRODUCT LIABILITY OR OTHERWISE. IN NO EVENT SHALL
     SONY'S LIABILITY ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT,
     INCLUDING WITHOUT LIMITATION ANY LIABILITY FOR DIRECT DAMAGES, AND
     INCLUDING WITHOUT LIMITATION ANY LIABILITY UNDER CLAUSE 11.1, EXCEED THE
     PLATFORM CHARGE PAID BY PUBLISHER TO SCEE UNDER CLAUSE 7 WITHIN THE 2
     (TWO) YEARS PRIOR TO THE DATE OF THE FIRST OCCURRENCE OF THE EVENT OR
     CIRCUMSTANCES GIVING RISE TO SUCH LIABILITY. EXCEPT AS EXPRESSLY SET FORTH
     HEREIN, NO SONY ENTITY, NOR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS,
     EMPLOYEES OR AGENTS, SHALL BEAR ANY RISK, OR HAVE ANY RESPONSIBILITY OR
     LIABILITY, OF ANY KIND TO PUBLISHER OR TO ANY THIRD PARTIES WITH RESPECT
     TO THE FUNCTIONALITY AND/OR PERFORMANCE OF LICENSED PRODUCTS.

12.2 IN NO EVENT SHALL PUBLISHER BE LIABLE TO SCEE FOR PROSPECTIVE PROFITS, OR
     SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN
     CONNECTION WITH THIS AGREEMENT (INCLUDING WITHOUT LIMITATION THE BREACH OF
     THIS AGREEMENT BY PUBLISHER), WHETHER UNDER THEORY OF CONTRACT, TORT
     (INCLUDING NEGLIGENCE), INDEMNITY, PRODUCT LIABILITY OR OTHERWISE,
     PROVIDED THAT PUBLISHER EXPRESSLY AGREES THAT SUCH LIMITATIONS SHALL NOT
     APPLY TO DAMAGES RESULTING FROM PUBLISHER'S BREACH OF CLAUSES 2, 3, 4, 9
     OR 11.2 OF THIS AGREEMENT.

12.3 SUBJECT AS EXPRESSLY PROVIDED IN CLAUSES 10.1 AND 10.2, NO SONY ENTITY NOR
     ITS SUPPLIERS MAKE, NOR DOES PUBLISHER RECEIVE, ANY WARRANTIES (EXPRESS,
     IMPLIED OR STATUTORY) REGARDING THE SONY MATERIALS AND/OR UNITS OF
     MANUFACTURED MATERIALS MANUFACTURED HEREUNDER. SONY SHALL NOT BE LIABLE
     FOR ANY INJURY, LOSS OR DAMAGE, DIRECT OR CONSEQUENTIAL, ARISING OUT OF
     THE USE OF, OR INABILITY TO USE, SUCH UNITS OF MANUFACTURED

                                      19
<PAGE>

     MATERIALS. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, ANY
     WARRANTIES, CONDITIONS OR OTHER TERMS IMPLIED BY STATUTE OR COMMON LAW
     (INCLUDING AS TO MERCHANTABILITY, SATISFACTORY QUALITY AND/OR FITNESS FOR
     A PARTICULAR PURPOSE AND THE EQUIVALENTS THEREOF UNDER THE LAWS OF ANY
     JURISDICTION) ARE EXCLUDED TO THE FULLEST EXTENT PERMITTED BY LAW.
     HOWEVER, NOTHING IN THIS AGREEMENT SHALL LIMIT SONY'S LIABILITY IN
     RELATION TO CLAIMS ARISING FROM THE INJURY OR DEATH OF ANY PERSON
     RESULTING FROM THE PROVEN NEGLIGENCE OF SONY.

13. TERMINATION BY SCEE

13.1 SCEE shall have the right forthwith to terminate this Agreement by written
     notice to Publisher at any time after the occurrence of any of the
     following events or circumstances: (i) any material breach of Publisher's
     obligations under this Agreement (or, if Publisher shall also have
     executed a PlayStation Non-Disclosure Agreement and/or PlayStation 2
     Confidentiality & Non-Disclosure Agreement which shall have been breached
     by Publisher, or a PlayStation Licensed Developer Agreement, PlayStation
     Licensed Publisher Agreement, PlayStation 2 Tools & Materials Loan
     Agreement and/or a PlayStation 2 Licensed Developer Agreement, or a
     PlayStation or a PlayStation 2 licensed developer, development system or
     licensed publisher agreement (or equivalent) with an Affiliate of SCEE,
     which shall have been terminated for breach by SCEE or by such party)
     which breach, if capable of remedy, shall not have been corrected or cured
     in full within 30 (thirty) days following notice from SCEE (or the
     applicable Affiliate of SCEE as the case may be) specifying and requiring
     the correction or cure of such breach, or any repetition of a prior
     material breach of any such obligation, whether or not capable of remedy;
     (ii) any refusal or failure by Publisher to effect payment of Platform
     Charge, promptly in accordance with Clauses 7.1 or 7.3 or at all, or a
     statement that Publisher is or will be unable to pay, any sum(s) due
     hereunder, or Publisher being unable to pay its debts generally as the
     same fall due; (iii) Publisher's filing of an application for, or
     consenting to or directing the appointment of, or the taking of possession
     by, a receiver, custodian, trustee or liquidator (or the equivalent of any
     of the foregoing under the laws of any jurisdiction) of any of Publisher's
     property (whether tangible or intangible and wherever located), assets
     and/or undertaking; (iv) the making by Publisher of a general assignment
     for the benefit of creditors; (v) an adjudication in any jurisdiction that
     Publisher is a bankrupt or insolvent; (vi) the commencing by Publisher of,
     or Publisher's intention to commence, a voluntary case under applicable
     bankruptcy laws of any jurisdiction; (vii) the filing by Publisher of, or
     Publisher's intention to file, a petition seeking to take advantage of any
     other law(s) of any jurisdiction providing for the relief of debtors;
     (viii) Publisher's acquiescence in, intention to acquiesce in, or failure
     to have dismissed within 90 (ninety) days, any petition filed against it
     in any involuntary case brought pursuant to the bankruptcy or other law(s)
     of any jurisdiction referred to in (vi) and (vii) above; (ix) a
     controlling partnership or equity interest or any such interest (other
     than an acquisition of less than an aggregate of 5% (five percent) of the
     issued share capital of Publisher, as quoted on a recognised investments
     exchange), in the case of a transfer to any party which (a) shall
     previously have executed a PlayStation Non-Disclosure Agreement and/or
     PlayStation 2 Confidentiality & Non-Disclosure Agreement

                                      20
<PAGE>

     which shall have been breached by such party, or a PlayStation Licensed
     Developer Agreement, PlayStation Licensed Publisher Agreement, PlayStation
     2 Tools & Materials Loan Agreement, PlayStation 2 Licensed Developer
     Agreement and/or a PlayStation 2 Licensed Publisher Agreement which shall
     have been terminated for breach by SCEE, or a PlayStation or PlayStation 2
     licensed developer, development system or licensed publisher agreement (or
     equivalent) with an Affiliate of SCEE, which shall have been terminated
     for breach by such party, or (b) is, or which directly or indirectly holds
     or acquires a partnership or equity interest in, the developer of (or
     other owner of intellectual property rights in) any interactive hardware
     device or product which is or will be directly or indirectly competitive
     with PlayStation 2, or (c) is in litigation with Sony concerning any
     proprietary technology, trade secrets and/or intellectual property
     matter(s) and/or has challenged the validity of any Sony Intellectual
     Property Rights in Publisher or in all or substantially all of Publisher's
     property (whether tangible or intangible), assets and/or undertaking, being
     acquired, directly or indirectly, by any person, firm, corporation or other
     entity; (x) Publisher enters into any third party business relationship
     pursuant to which Publisher makes a material contribution to the
     development of the core components of any interactive hardware device or
     product which is or will be directly or indirectly competitive with
     PlayStation 2, or if Publisher directly or indirectly holds or acquires a
     partnership or equity interest (other than a holding or acquisition of less
     than an aggregate of 5% (five percent) of the issued share capital, as
     quoted on a recognized investments exchange) in, or otherwise forms a
     strategic commercial relationship with, any third party firm, corporation
     or other entity which has developed or during the Term develops (or which
     owns or during the Term acquires ownership of intellectual property rights
     in) any such device or product; (xi) Publisher failing to submit materials
     relating to any new PlayStation 2 format Software in accordance with Clause
     5.2, and/or failing to issue any purchase orders for Manufactured Materials
     in accordance with Clause 6.5, during any period of 12 (twelve) consecutive
     calendar months; or (xii) Publisher (or any parent company, subsidiary or
     affiliate of Publisher) being in litigation with Sony concerning any
     proprietary technology, trade secrets and/or intellectual property
     matter(s) an/or challenging the validity of any Sony Intellectual Property
     Rights. As used in this Clause 13.1. "controlling interest" means (i) in
     relation to a body corporate, the power of the holder of such interest to
     secure - (a) by means of the holding of shares or the possession of voting
     power in, or in relation to, that or any other body corporate or (b) by
     virtue of any powers conferred by the Articles of Association or other
     document regulating that or any other body corporate - that the affairs of
     such body corporate be conducted in accordance with the wishes of the
     holder of such interest, and (ii) in relation to a partnership, the right
     to a share of more than 50% (fifty percent) of the assets or of the income
     of the partnership. Forthwith upon such occurrence, Publisher shall notify
     SCEE of the occurrence of any of the events or circumstances specified in
     (ii) to (x) above; and Publisher's failure to so do shall be a material
     breach of this Agreement not capable of remedy.

13.2 Further, SCEE shall have the right by written notice to Publisher
     forthwith to terminate the licenses and related rights herein granted to
     Publisher in relation to any PlayStation 2 format Software at any time
     after the occurrence of any of the following events: (i) any failure by
     Publisher to submit to SCEE the materials required to be submitted under
     Clauses 5.2 and 5.3 (or, if applicable, under Clause 5.6) in the form and
     manner and in

                                      21
<PAGE>
Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

     conformity with the standards and specifications therein prescribed; and
     (ii) any failure by Publisher promptly to notify SCEE in writing of any
     material change to any of the materials approved by SCEE pursuant to
     Clause 5.4 (or, if applicable, pursuant to Clause 5.6); provided however
     that SCEE shall not be entitled to exercise such right of termination if
     Publisher's failure under (i) above is directly caused by SCEE's failure
     to comply with any of its material obligations expressly set forth herein.

14. EFFECT OF EXPIRATION OR TERMINATION

14.1 Notwithstanding the expiration of the Term, Publisher shall be entitled to
     continue to publish PlayStation2 format Software the development of which
     shall have been approved prior to or during the Term hereof by SCEE (or by
     an Affiliate of SCEE) pursuant to the applicable LDA2, and to use the
     Licensed Trademarks strictly, only and directly in connection with such
     publication, until the expiration of the Term, or if later, until the
     second anniversary of the 31 March next following such approval. Upon
     expiration of the Term or, if applicable, such extended period for
     publishing PlayStation 2 format Software, Publisher may sell off existing
     inventories of the applicable PlayStation 2 format Software titles, on a
     non-exclusive basis, for a period of 180 (one hundred and eighty) days
     from the applicable expiration date; provided always that such inventory
     thereof shall not have been manufactured solely or principally for sale
     within such sell-off period.

14.2 However, upon the exercising by SCEE of its right of termination, either
     of this Agreement pursuant to Clause 13.1(i) to (viii) or Clause 13.1(xii)
     or in relation to any PlayStation 2 format Software pursuant to Clause
     13.2, all rights, licences and privileges licensed or otherwise granted to
     Publisher hereunder, either generally or in relation to such PlayStation 2
     format Software (as applicable), shall forthwith and without further
     formality revert absolutely to SCEE and Publisher shall forthwith cease
     and desist from any further use of the Sony Materials, any Sony
     Intellectual Property Rights related thereto and the Licensed Trademarks,
     and, subject to Clause 14.3, shall have no further right to continue the
     marketing, sale and/or distribution of any units of Licensed Product or of
     any units of Licensed Product derived from such PlayStation 2 format
     Software (as applicable).

14.3 In the event of termination by SCEE pursuant to Clause 13.1(ix), (x) or
     (xi) or by Publisher pursuant to Clause 25, Publisher may sell-off then
     unsold units of Licensed Product(s), for a period of 90 (ninety) days from
     the effective date of termination; provided always that such inventory
     thereof shall not have been manufactured solely or principally for sale
     within such sell-off period. Subsequent to the expiry of 180 (one hundred
     and eighty) day or 90 (ninety) day sell-off period, or in the event of
     termination by SCEE pursuant to Clause 13.1(i) to (viii), Clause 13.1(xii)
     or Clause 13.2, any and all units of Licensed Products or the applicable
     Licensed Products (as the case may be) remaining in Publisher's inventory
     and/or under its control shall be destroyed by Publisher within 5 (five)
     working days following such expiry or effective date of termination. Within
     5 (five) working days following such destruction, Publisher shall furnish
     SCEE an itemized statement, certified accurate by a duly authorized
     officer, partner or other representative (as applicable) of Publisher,
     specifying the number of then unsold units of Licensed Product(s) to which
     such termination applies, on a PlayStation 2 format Software title-by-

                                      22
<PAGE>

     title basis, which remain in its inventory and/or under its control at
     such date, confirming the number of units of Licensed Products destroyed,
     on a PlayStation 2 format Software title-by-title basis, and indicating
     the location and date of such destruction and the disposition of the
     remains of such destroyed materials. SCEE shall be entitled to conduct a
     physical inspection of Publisher's inventory during normal business hours
     in order to ascertain or verify such inventory and/or statement.

14.4 Upon termination of the Term by SCEE pursuant to Clause 13.1, Publisher
     shall forthwith deliver up to SCEE (or, if so requested by SCEE in
     writing, destroy and promptly furnish SCEE a certificate of such
     destruction signed by a duly authorized officer, partner or other
     representative (as applicable) of Publisher) all Sony Materials, and any
     Confidential Information of Sony of which Publisher shall have become
     apprized and which has been reduced to tangible or written form, and any
     and all copies thereof then in the possession, custody or control of
     Publisher.

14.5 SCEE shall be under no obligation to renew or extend this Agreement
     notwithstanding any actions taken by either of the parties prior to its
     expiration or earlier termination. In the event of termination pursuant to
     Clauses 13.1 or 13.2, no part of any payment(s) whatsoever theretofore
     made to SCEE hereunder (or, if Publisher shall also have executed a LDA2,
     thereunder) shall be owed or repayable to Publisher, and nor shall either
     party be liable to the other for any damages (whether direct,
     consequential or incidental, and including without limitation any
     expenditures, loss of profits or prospective profits) sustained or arising
     out of, or alleged to have been sustained or to have arisen out of, such
     expiration or earlier termination. However, the expiration or earlier
     termination of this Agreement shall not excuse either party from any prior
     breach of any of the terms and provisions of this Agreement or from any
     obligations surviving such expiration or earlier termination, and full
     legal and equitable remedies shall remain available for any breach or
     threatened breach of this Agreement or of any obligations arising
     therefrom.

14.6 The expiration or earlier termination of this Agreement (whether by SCEE
     pursuant to Clause 13 or otherwise howsoever) shall be without prejudice
     to any and all rights and remedies which either party may then or
     subsequently have against the other party.

15.  NOTICES

15.1 All notices under this Agreement shall be in writing and shall be given by
     courier or other personal delivery, by registered or certified mail, by
     recognized international courier service or by facsimile transmission
     (with an immediate confirmation copy by regular mail or any of the methods
     specified above) at the appropriate address hereinbefore specified or at a
     substitute address designated by notice by the party concerned (and in the
     case of notices to SCEE shall be directed to its Vice President, Business
     Affairs or such other Sony representative as shall from time to time be
     designated by notice by SCEE). Notices given other than by facsimile
     transmission shall be deemed given and effective when delivered. Notices
     given by facsimile transmission shall be deemed given only upon receipt of
     confirmation copy as aforesaid but, upon such receipt, shall be deemed
     effective as of the date of transmission.

                                      23
<PAGE>

15.2 Whenever Publisher is required to obtain the authorization, consent or
     approval of SCEE, Publisher shall request the same by notice to SCEE as
     aforesaid, and with a copy under separate cover to its Director of Third
     Party Relations or such other Sony representative as shall from time to
     time be designated by notice to Publisher. Such authorization, consent or
     approval shall not be deemed to be granted unless and until SCEE shall
     have given a written affirmative response to each request therefor and
     shall in no event be implied or inferred from any delay or failure of SCEE
     to give such or any response.

16.  FORCE MAJEURE

Neither SCEE nor Publisher shall be liable for any loss or damage or be deemed
to be in breach of this Agreement if its failure to perform, or failure to cure
any breach of, its obligations under this Agreement results from any events or
4 circumstances beyond its reasonable control, including without limitation any
natural disaster, fire, flood, earthquake or other act of God, inevitable
accidents, lockout, strike or other labour dispute, riot or civil commotion,
act of public enemy, enactment, rule, order or act of any government or
governmental authority, failure of technical facilities, or failure or delay of
transportation facilities.

17.  RELATIONSHIP OF THE PARTIES

The relationship hereunder between SCEE and Publisher respectively is that of
licensor and licensee. Publisher is an independent contractor and shall not in
any respect act as or be deemed to be the legal representative, agent, joint
venturer, partner or employee of SCEE for any purpose whatsoever. Neither party
shall have any right or authority to assume or create any obligations of any
kind or make any representation or warranty (express or implied) on behalf of
the other party or to bind the other party in any respect whatsoever.

18.  ASSIGNABILITY

SCEE has entered into this Agreement based on the particular reputation,
capabilities and experience of Publisher and of its officers, directors and
employees. Accordingly, Publisher may not assign, pledge or otherwise dispose
of this Agreement or of any of its rights hereunder, nor delegate or otherwise
transfer any of its obligations hereunder, to any third party unless the prior
written consent of SCEE shall first have been obtained in each case. Any
attempted or purported assignment, pledge, delegation or other disposition in
contravention of this Clause 18 shall be null and void and a material breach of
this Agreement not capable of remedy. SCEE shall be entitled, without the
consent of Publisher, to assign its rights and obligations hereunder to any
corporation or other entity in which Sony Corporation (or any successor in
interest thereto) holds a controlling interest, whether directly or indirectly.
Subject to the foregoing, this Agreement shall enure to the benefit of the
parties and their respective successors and permitted assigns.

A person who is not party to this Agreement shall have no right under the
Contracts (Rights of Third Parties) Act of 1999 to enforce any term of this
Agreement. This provision does not affect any right or remedy of any person
which exists or is available otherwise than pursuant to such Act.

                                      24
<PAGE>

19. COMPLIANCE WITH APPLICABLE LAWS

The parties shall at all times comply with all applicable regulations and
orders of their respective countries and all conventions and treaties to which
their countries are party or relating to or in any way affecting this Agreement
and the performance by the parties of this Agreement. Each party, at its own
expense, shall negotiate and obtain any approval, licence or permit required
for the performance of its obligations hereunder, and shall declare, record or
take such steps as may be necessary to render this Agreement binding, including
without limitation any required filing of this Agreement with any appropriate
governmental authorities.

20.  GOVERNING LAW.

This agreement shall be governed by, construed and interpreted in accordance
with English Law, without giving effect to the conflict of laws principles
thereof. The parties irrevocably agree for the exclusive benefit of SCEE that
the English Courts shall have jurisdiction to adjudicate any proceeding, suit
or action arising out of or in connection with this Agreement. However, nothing
contained in this Clause 20 shall limit the right of SCEE to take any such
proceeding, suit or action against Publisher in any other court of competent
jurisdiction, nor shall the taking of any such proceeding, suit or action in
one or more jurisdictions preclude the taking of any other such proceeding,
suit or action in any other jurisdiction, whether concurrently or not, to the
extent permitted by the law of such other jurisdiction. Publisher shall have
the right to take any such proceeding, suit or action against SCEE only in the
English Courts.

21.  REMEDIES

Publisher acknowledges and agrees that any breach by Publisher of this
Agreement may cause Sony irreparable harm and damage which may not be capable
of remedy by damages alone and therefore that in the event of any such breach
SCEE may seek equitable (including injunctive) relief against Publisher in
addition to damages and/or other remedy available to SCEE at law or in equity.
Either party's election to avail itself of any of the remedies provided for in
this Agreement shall not be exclusive of any other remedies available hereunder
or otherwise at law or in equity, and all such remedies shall be cumulative.
Publisher shall indemnify SCEE for all losses, liabilities, damages, expenses
and costs, including without limitation reasonable fees for lawyers, expert
witnesses and litigation costs, which SCEE may sustain or incur as a result of
any breach or threatened breach by Publisher of this Agreement.

22.  SEVERABILITY

In the event that any provision of this Agreement (or any part(s) thereof),
other than a provision in respect of which SCEE gives a notice of amendment
pursuant to Clause 25, is determined by a court of competent jurisdiction to be
invalid or otherwise unenforceable, such provision (or part(s) thereof) shall
be enforced to the extent possible consistent with the stated intention of the
parties or, if incapable of such enforcement, shall be deemed to be deleted
from this Agreement, but not in any way so as to affect the validity or
enforceability of any other provisions of this Agreement which shall continue
in full force and effect.

                                      25
<PAGE>

23.  PROVISIONS SURVIVING EXPIRATION OR TERMINATION

The following provisions of this Agreement shall survive and continue in full
force and effect notwithstanding its expiration or earlier termination (whether
by SCEE pursuant to Clause 13 hereof or otherwise howsoever):

              Clause 3                      Sub-Publishers
              Clause 4                      Reservations
              Clause 5.7  + 5.8             Notices & Consumer Advisory Ratings
              Clause 6                      Manufacture of Licensed Products
              Clause 7                      Platform Charge
              Clause 9                      Confidentiality
              Clause 10.2 to 10.4           Warranties
              Clause 11                     Indemnities
              Clause 12                     Limitations of Liability
              Clause 14                     Effect of Expiration or Termination
              Clause 18                     Assignability
              Clause 20                     Governing Law
              Clause 21                     Remedies
              Clause 22                     Severability

24.  WAIVER

No failure or delay by either party in exercising any right, power or remedy
under this Agreement shall operate as a waiver of any such right, power or
remedy. No waiver of any provision of this Agreement shall be effective unless
in writing and signed by a party against whom it is sought to enforce such
waiver. Any waiver by either party of any provision of this Agreement shall not
be construed as a waiver of any other provision of this Agreement, nor shall
such waiver operate or be construed as a waiver of such provision in relation
to any future event or circumstance.

25.  AMENDMENTS

          NOTHING IN THIS AGREEMENT SHALL BE READ OR APPLIED IN SUCH A WAY AS
          TO FRUSTRATE ARTICLE 6 AND, IF AND TO THE EXTENT ANY PROVISION OF
          THIS AGREEMEENT (OR ANY PART THEREOF) HAS (OR IS CAPABLE OF HAVING)
          SUCH EFFECT, IT SHALL BE DEEMED MODIFIED ACCORDINGLY.

          SCEE RESERVES THE RIGHT, AT ANY TIME UPON REASONABLE NOTICE TO
          PUBLISHER, TO AMEND THE RELEVANT PROVISIONS OF THIS AGREEMENT, THE
          SCHEDULES HERETO AND/OR THE SPECIFICATIONS HEREIN REFERRED TO, TO
          TAKE ACCOUNT OF OR IN RESPONSE TO ANY DECISION OR ORDER OF, OR
          OBJECTION RAISED BY, ANY COURT OR GOVERNMENTAL OR OTHER COMPETITION
          AUTHORITY OF COMPETENT JURISDICTION AND/OR ANY STATUTORY OR SIMILAR
          MEASURES WHICH MIGHT BE IMPLEMENTED TO GIVE EFFECT TO ANY SUCH
          DECISION, WHICH APPLY TO THIS AGREEMENT, THE SCHEDULES HERETO AND/OR
          THE SPECIFICATIONS HEREIN REFERRED TO (AND FROM WHICH THIS AGREEMENT,
          THE SCHEDULES HERETO AND/OR THE SPECIFICATIONS

                                      26
<PAGE>

          HEREIN REFERRED TO ARE NOT EXEMPT) OR TO REFLECT ANY UNDERTAKING
          GIVEN BY SONY TO ANY SUCH AUTHORITY IN RELATION TO ANY AND ALL SUCH
          MATTERS AFORESAID. ANY SUCH AMENDMENT SHALL BE OF PROSPECTIVE
          APPLICATION ONLY AND SHALL NOT BE APPLIED TO ANY LICENSED PRODUCT
          MATERIALS RELATING TO WHICH SHALL HAVE BEEN SUBMITTED TO SCEE BY
          PUBLISHER PURSUANT TO CLAUSE 5.2 AND/OR 5.3 PRIOR TO THE DATE OF
          SCEE'S NOTICE OF AMENDMENT. IN THE EVENT THAT PUBLISHER IS UNWILLING
          TO ACCEPT ANY SUCH AMENDMENT, THEN PUBLISHER SHALL HAVE THE RIGHT
          FORTHWITH TO TERMINATE THIS AGREEMENT BY WRITTEN NOTICE TO SCEE GIVEN
          NOT MORE THAN 90 (NINETY) DAYS FOLLOWING THE DATE OF SCEE'S NOTICE OF
          AMENDMENT. THE PROVISIONS OF CLAUSE 14.3 SHALL COME INTO EFFECT UPON
          ANY SUCH TERMINATION BY PUBLISHER.

          Subject to the foregoing and except as otherwise provided herein,
          this Agreement shall not be subject to amendment, change or
          modification other than by another written instrument duly executed
          by both of the parties hereto.

26.  HEADINGS

The clause and other headings contained in this Agreement are intended
primarily for reference purposes only and shall not alone determine the
construction or interpretation of this Agreement or any provisions(s) hereof.

27.  INTEGRATION

This document (including the Schedules hereto) constitutes the entire agreement
between the parties with respect to the subject matter contained herein, and
supersedes all prior or contemporaneous agreements, proposals, understandings
and communications between Sony and Publisher, whether oral or written, with
respect to the subject matter hereof. However, the generality of the foregoing
notwithstanding the CNDA and, if applicable, the LDA 2 executed by Publisher
shall continue in full force and effect.

28.  COUNTERPARTS

This Agreement may be executed in 2 (two) counterparts, each of which shall be
deemed an original, and both of which together shall constitute one and the
same instrument.

IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed
as of the date first above written.

                                      27
<PAGE>

SONY COMPUTER ENTERTAINMENT           ACCLAIM ENTERTAINMENT (EUROPE)
EUROPE LIMITED                        LIMITED

/S/ CHRISTOPHER DEERING               /S/ RODNEY COUSENS
--------------------------------      ----------------------------------------
SIGNATURE                             SIGNATURE

    CHRISTOPHER DEERING               RODNEY COUSENS
--------------------------------      ----------------------------------------
NAME                                  NAME

         PRESIDENT                    PRESIDENT AND CHIEF OPERATING OFFICER
--------------------------------      ----------------------------------------
TITLE                                 TITLE

                                      28
<PAGE>

                                   SCHEDULE 1

     to the PlayStation 2 Licensed Publisher Agreement dated the 14th day of
     November 2000 between Sony Computer Entertainment Europe Limited and
     Acclaim Entertainment (Europe) Limited

-------------------------------------------------------------------------------

                        LICENSED TERRITORY (CLAUSE 1.2)

(1)

       Andorra              Ireland                 Qatar
       Armenia              Israel                  Romania
       Australia            Italy                   Russian Federation
       Austria              Jordan                  San Marino
       Azerbaijan           Kazakhstan              Saudi Arabia
       Bahrain              Kenya                   Serbia
       Belarus              Kuwait                  Slovakia
       Belgium              Latvia                  Slovenia
       Bosnia Herzegovina   Lebanon                 Somalia
       Botswana             Liechtenstein           South Africa & Namibia
       Bulgaria             Lithuania               Spain
       Croatia              Luxembourg              Sweden
       Cyprus               Macedonia               Swaziland
       Czech Republic       Madagascar              Switzerland
       Denmark              Malta                   Syria
       Djibouti             Mauritius               Tanzania
       Egypt                Moldova                 Tunisia
       Estonia              Monaco                  Turkey
       Ethiopia             Morocco                 Turkmenistan
       Finland              Mozambique              Ukraine
       France               Netherlands             United Arab Emirates
       Georgia              New Zealand             United Kingdom
       Germany              Nigeria                 Uzbekistan
       Gibraltar            Norway                  Vatican
       Greece               Oman                    Yemen
       Hungary              Poland                  Zambia
       Iceland              Portugal                Zimbabwe

and all other countries which from time to time are members of the European
Union or have otherwise implemented the Treaty on a European Economic Area or
where Articles 85 & 86 of the Treaty of Rome (or provisions similar thereto)
have been implemented or are otherwise directly effective.

                                      29
<PAGE>

(2)  Such countries in addition to those specified in (1) above in which the
     PAL television standard obtains and which SCEE, in its sole discretion as
     representative of Sony Computer Entertainment worldwide, determines from
     time to time to include within the Licensed Territory by notice to
     Publisher. Without limiting the generality of the foregoing, SCEE shall
     have the right not to include within the Licensed Territory or, having
     included, subsequently to exclude from the Licensed Territory by
     reasonable notice to the Publisher (and intends so to exclude) any such
     country or countries in which, in SCEE's best business judgment, the laws
     or enforcement of such laws do not protect Sony Intellectual Property
     Rights. By not later than the expiry of any such notice of exclusion,
     Publisher shall cease and desist, in the country or countries concerned,
     from any further use of the Sony Materials, any Sony Intellectual Property
     Rights related thereto and the Licensed Trademarks and shall have no
     further right to continue or authorize the marketing, sale and/or
     distribution of any units of PlayStation 2 format Software.

                                      30
<PAGE>
Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

                                   SCHEDULE 2

     to the PlayStation 2 Licensed Publisher Agreement dated the 14th day of
     November 2000 between Sony Computer Entertainment Europe Limited and
     Acclaim Entertainment (Europe) Limited

-------------------------------------------------------------------------------

PLATFORM CHARGE (CLAUSE 7.1)

       BAND               PUBLISHER'S MAXIMUM          PLATFORM CHARGE
                             PRICE TO TRADE                PER UNIT

        #1                  (EURO)[*]                  (EURO)[*]
        #2                  (EURO)[*]                  (EURO)[*]
        #3                  (EURO)[*]                  (EURO)[*]
        #4                  (EURO)[*]                  (EURO)[*]
        #5              (EURO)[*]+                        (EURO)[*]

For these purposes, "maximum price to trade" shall mean:

Publisher's (or, where applicable, Publisher's distributor's) highest price
net of trade margin to any trade customer in the European Economic Area and
Australia for Publisher's (or, where applicable, Publisher's distributor's)
minimum order quantity of the relevant inventory, net of year end (or similar)
volume rebates (if any) properly attributable to sales of PlayStation software,
but prior to any credit, deduction or rebate for co-op advertising or other
marketing support, returns or otherwise howsoever.

Where Publisher's business (with the trade or through distributors) is conducted
in local currencies other the, the local currency/ exchange rates to be applied
for purposes of conforming to maximum price to trade for any given Band will be
the closing mid-point spot rate as quoted in the London "Financial Times" on the
first business day of each 6 month period, commencing 1 April 2000. Such
exchange rate will then reset for each successive 6 month period thereafter.

The local currency maximum price to trade for any given title will then be
that derived by applying the exchange rate obtaining for the 6 month period (as
above) in which Publisher places its first Purchase Order ("PO") for the title
concerned and will continue to apply for that title

                                      31
<PAGE>
Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

unless and until, on migration (see below). Publisher places its first PO in a
different Band in a subsequent 6 month period.

SCEE reserves the right the review local currency maximum prices to trade per
Bank applicable for any given 6 month period (as above) in the event of a
material exchange rate fluctuation, deemed for these purposes to be +/-5%.

The foregoing assumes a standard 1-Disc PlayStation 2 CE-ROM product and covers
mastering, Disc, standard 2-colour Disc Label, PlayStation 2 box (or other
packaging) and automated assembly of all components, but excludes the cost of
Printed Materials other than Disc Label.

For multi-disk PlayStation 2 CD-ROM products and PlayStation 2 products in DVD5
format, the applicable Platform Charge specified above shall be [*].

For the following optional non-standard Manufactured Materials, the following
incremental charges (in addition to the otherwise applicable Platform Charge
specified above) will apply.

o Multi-Colour Disc Label
  -----------------------
     3-colour                                                (EURO)[*] per Disc
     4-colour                                                (EURO)[*] per Disc
     5-colour                                                (EURO)[*] per Disc
     6-colour                                                (EURO)[*] per Disc

o White Basic Underlay                                       (EURO)[*] per Disc
  ---------------------
o Picture Disc                                               (EURO)[*] per Disc
  ------------
     if the Disc Label is more than 2-colour,
     for each additional colour
     (maximum 2 additional colours/(EURO)[*] per Disc)

o Picture Disc -- High Definition                            (EURO)[*] per Disc
  -------------------------------
o Shrink Wrap
  -----------
     1/2 Disc CD-ROM products                                (EURO)[*] per Disc
     (in standard PlayStation 2 box)

     (greater than) 2-Disc
     CD-ROM products                        as individually quoted in each case

The Platform Charge and minimum order and reorder quantities for other
"non-standard" Manufactured Materials and/or production processes shall be so
detailed in the Specifications or, where not so detailed, and subject to
availability, as individually quoted in each case.

                                   * * * * *

[*]

                                      32

<PAGE>
Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

                                   * * * * *

[*]
                                   * * * * *

[*]
                                   * * * * *

[*]
                                   * * * * *

                                      33

<PAGE>

Confidential information omitted where indicated by "[*]" and filed separately
with the Commission pursuant to a request for confidential treatment under Rule
24b-2 of the Securities Exchange Act of 1934.

PLAYSTATION2 HIT TITLE REBATE PROGRAM.

Publisher's software orders in each qualifying financial year (April - March)
will determine the level of Hit Title Rebate ("HTR") in the following financial
year. The first qualifying year runs 1 April 1999-31 March 2000.

Titles with total bona fide orders below [*] units will not be taken into
account. Otherwise, all orders for software for Sony's "PlayStation"
predecessor video entertainment system (in one Band only per title) and all
orders for PlayStation format Software in each qualifying financial year will
be taken into account in calculating the Level of HTR for the following
financial year.

Once qualified for (as above), HTR for each financial year will be at one of
the following levels:

Level 1 (up to [*] units in qualifying financial year, i.e. immediately
preceding April - March),

Level 2 (over [*] units in qualifying financial year),

Level 3 (over [*]units in qualifying financial year).

HTR will be redeemable in the applicable financial year, against orders of
PlayStation 2 format Software only, as follows:

UNITS PER                    LEVEL 1          LEVEL 2          LEVEL 3
                             -------          -------          -------
PLAYSTATION 2 TITLE*

Up to [*]                    [*]%             [*]%             [*]%
[*]  -  [*]                  [*]%             [*]%             [*]%
[*]  -  [*]                  [*]%             [*]%             [*]%
[*]  -  [*]                  [*]%             [*]%             [*]%
[*]  -  [*]                  [*]%             [*]%             [*]%
[*]  -  [*]                  [*]%             [*]%             [*]%
[*]+                         [*]%             20%              20%

          * NB: per title, not per SKU and cume across all PlayStation 2 titles.
                    -----

The HTR for each PlayStation 2 title shall continue to escalate (as above) for
orders in the same Band notwithstanding that such orders may be placed in a
following financial year. Subsequent orders for the same title but in a
different Band will be counted for these purposes as orders for a new "title".

                                   * * * * *

In order to verify conformity with the Band structure for PlayStation 2 format
Software described above, SCEE will require from time to time at its own
expense to inspect and audit the relevant of Publisher's financial records
(and, where applicable, those of Publisher's associated companies, subsidiaries
and/or branch offices in the Licensed Territory). Any such inspection and audit
shall take place during normal business hours at Publisher's principal place of
business (or such other location as the relevant books and records are
maintained) upon reasonable prior

                                      34
<PAGE>

notice and shall, at SCEE's sole election, be
conducted either by an independent chartered or certified accountant or by an
appropriately professionally qualified member of SCEE's staff.

Initialed by                         Initialed by

[  ]                                  [  ]

Sony Computer Entertainment          Acclaim Entertainment (Europe)
Europe

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