Document:

<PAGE>
                            DISTRIBUTION AGREEMENT          Exhibit 10.18

This Distribution Agreement (the "Agreement") is entered into as of October 1,
2000 and made between AVANT! JAPAN CORPORATION (the "Company"), with its
principal place of business at Nittochi Shin-yurigaoka Building, 5F, 1-5-2
Kamiasao Asao-ku, Kawasaki-shi, Kanagawa 215-0021, Japan, and MAINGATE
ELECTRONICS INC. (the "Distributor"), with its principal place of business at
KAKiYA Building, 3/F, 2-7-17 Shinyokohama, Kohoku-ku, Yokohama-Shi, Kanagawa
222-0033, Japan.

RECITALS:

A.    The Company has obtained an exclusive right to distribute certain Avant!
      software-based electronic design automation products, including
      documentation and manuals therefor.

B.    The Company wishes to appoint the Distributor as a sub-distributor and the
      Distributor wishes to acquire from the Company the right to distribute,
      market and support such products in the Territory (as defined below).

NOW IT IS HEREBY AGREED AS FOLLOWS:

1.     DEFINITIONS

      In this Agreement, the following terms shall have the following meanings:

      "CONFIDENTIAL INFORMATION" includes information which the Company has
      maintained as confidential and revealed to the Distributor by clearly
      indicating the Company name and "Confidential" or similar proprietary
      marking and which may or may not be related to the Products including but
      not limited to: technical information such as computer programs,
      characterization, formulae, algorithms, process, performance, interface
      information, proprietary command architecture, proprietary scheme
      constructs, including commands, format, syntax and semantics, defects,
      bugs, proprietary circuit behavior information, the Company supplied data,
      circuit and logic elements and business information, including
      confidential future product information, confidential basic concepts,
      marketing and sales information, sales volume, pricing and accounting
      information. Confidential Information shall also include oral information
      disclosed by the Company to the Distributor pursuant to this Agreement,
      provided such information is summarized in writing and is clearly marked
      with the Company name and "Confidential" or similar proprietary marking
      and delivered to the Distributor within thirty (30) days of disclosure.

      Confidential Information does not include information which:

      (i)   has come into the public domain without breach of the confidence by
            the Distributor or any other person, firm or entity;

      (ii)  is or becomes publicly known through no wrongful act of the party to
            whom such information was disclosed;

<PAGE>

      (iii) is received by the Distributor from a third party without
            restrictions on its use in favor of the Company;

      (iv)  is independently developed by the Distributor's employee, agent or
            contractor without use of Confidential Information;

      (v)   is acknowledged in writing by the Company to be non-confidential; or

      (vi)  is required to be disclosed pursuant to any statutory requirement or
            court order (except that the Distributor shall give the Company
            prompt notice of such statutory requirement or court order such that
            the Company may request protection therefrom);

      "CUSTOMER" means a customer who has signed a Customer Agreement;

      "CUSTOMER AGREEMENT" means the Customer Software and Service Agreement
      provided by the Company from time to time;

      "DOCUMENTATION" means the user guides, instruction manuals, tutorials,
      on-screen user assistance available in the operation of the Software and
      other documents whether in written or machine-readable form provided by
      the Company from time to time for the Use of the Software;

      "INTELLECTUAL PROPERTY RIGHTS" means all designs patents, copyrights,
      inventions, enhancements, revisions, updates, adaptations, secret and
      confidential information, know-how, technical data, trade secrets,
      specifications, designs, whether or not in documentary form, functional
      and detailed design specifications and all other intangible property
      (whether or not in documentary form and whether or not registrable,
      patentable, copyrightable for otherwise protectable under applicable laws)
      relating to the Products;

      "M&S SERVICES" means the maintenance and support services to be provided
      by the Distributor pursuant to Clause 7 herein;

      "MINIMUM PURCHASE COMMITMENT" means the value of minimum
      [annual/quarterly] purchase commitment of Products and M&S Services as set
      out in Exhibit A;

      "MULTINATIONAL CUSTOMERS" shall mean customers who use the Products
      concurrently both within and outside the Territory, including use of the
      Products on a wide area network;

      "NET REVENUE" means the gross fee for any Product and fees for any
      purchased M&S Services, as set out in Exhibit B. The Net Revenue shall not
      include any interest or finance charges;

      "PRODUCTS" means the Software and Revisions together with the
      corresponding Documentation as may be provided by the Company from time to
      time;

                                       2
<PAGE>

      "RECOMMENDED PRICE LIST" means the list setting out the Recommended Price
      for the Products and/or M&S Services to be charged by the Distributor to
      the Customers;

      "REVISIONS" means upgrades, error corrections and updates of the Software
      made generally available to Customers of the Software;

      "SOFTWARE" means the computer software programs as set out in Exhibit C in
      object code only;

      "SUPPLIER" means Avant! Corporation with its principal place of business
      at 46871 Bayside Parkway Fremont, CA 94538 U.S.A., and its subsidiaries
      and licensees;

      "TERM" means the term as set out in clause 18;

      "TERRITORY" means the territory as set out in Exhibit D;

      "TRADE MARK" means any trade mark, service mark, trade name, symbols and
      logos owned by the Supplier and authorized to be used by the Company;

      "USE" means in relation to the Software and Revisions, its loading,
      displaying, running, transmission or storage for the purpose of processing
      the instructions contained in the Software and Revisions.

2.    APPOINTMENT

      2.1   Subject to the terms of this Agreement, the Company hereby grants to
            the Distributor and the Distributor hereby accepts an exclusive
            right for Products set out in Exhibit C to:

            (i)   market and distribute the Products to Customers solely for use
                  in the Territory;

            (ii)  install the Products for Customers; and

            (iii) provide M&S Services to Customers.

            No source code for the Software to be distributed by this Agreement
            will be deemed as included by inference or otherwise.

      2.2   Subject to applicable terms and conditions, including fees, to be
            agreed on a case by case basis, the Company hereby grants and/or
            shall use its reasonable commercial effort to procure any relevant
            third party to grant, the Distributor a non-exclusive right outside
            the Territory for the Term of this Agreement to distribute the
            Products directly to Customers with prior approval by the Company.

            For purpose of this Clause, Customers shall be Multinational
            Customers of the Distributor.

                                       3
<PAGE>

      2.3   A Customer within the Territory, who desires to have the right to
            use the input/output ("I/O") format files of the Products in order
            to develop and distribute an interfacing product between the
            Product(s) and third parties' software programs solely for use
            within the Customer's internal design flow, may submit a request to
            the Distributor. The Distributor will forward such request to the
            Company. The Company has the sole discretion in deciding whether or
            not to grant such right and terms and conditions attached to such
            right if granted.

      2.4   The Company reserves the right to change, modify or discontinue any
            Product at any time provided that the Distributor is given ninety
            (90) days prior written notice. Any Revisions, enhancement or
            improvement of a Product that is generally made available by the
            Supplier through the Company, that is substantially similar to such
            Products and that is marketed under the same product number and
            nomenclature as such Product shall be added to Exhibit C as a new
            Product. The Company reserves the right to charge for Revisions. In
            addition to the foregoing, any products developed by the Supplier
            other than the substantially similar products referenced above,
            shall be considered as a new product and the Company shall decide
            whether the Distributor is authorized to distribute this new
            product. The Distributor shall have the right and freedom to
            distribute any non-competitive software products or services;
            provided, however, that if any such new product is competitive with
            any non-Company products that the Distributor is distributing, the
            Distributor shall have thirty (30) days to decide whether to
            distribute the Company's new product, or the non-Company product the
            Distributor is then currently distributing.

      2.5   All rights not expressly granted are hereby reserved by the Company.

3.    RESTRICTIONS ON THE APPOINTMENT

      3.1   The Distributor may only distribute the Products to persons and
            entities located and taking delivery within the Territory (except
            for Multinational Customers as provided in Clause 2.2 above).

      3.2   The Distributor shall not tamper with the packaging of the Products
            and shall only distribute the Products as packaged by the Company.

4.    USE OF PRODUCTS BY DISTRIBUTOR

      4.1   The Distributor may Use reasonable number packages of the Products,
            free of charge, for demonstration, internal training, testing,
            providing M&S Services.

      4.2   Except as provided in Clause 4.1, the Distributor may not Use the
            Products for its own internal use without prior written permission
            of the Company.

      4.3   Except as provided in Clause 4.1 and 4.2, the Distributor is
            prohibited to Use the Products.

                                       4
<PAGE>

5.    USE BY CUSTOMER

      5.1   Prior to the delivery of the Products to a Customer, such Customer
            shall execute an appropriate Customer Agreement for the Products.

      5.2   The Distributor shall obligate each Customer, by execution of the
            Customer Agreement, not to:

            (i)   create or attempt to create by reverse engineering or
                  otherwise, the source code or internal structure of the
                  Products or any part thereof from the object code or from the
                  information available to it; and

            (ii)  modify, amend, add to or in any way alter any Product supplied
                  to it under the Customer Agreement.

6.    RESPONSIBILITIES OF DISTRIBUTOR

      6.1   The Distributor shall meet the Minimum Purchase Commitment as
            specified in Exhibit A hereto.

            (i)   If the Distributor exceeds its Minimum Purchase Commitment to
                  the Company by at least 50% via large volume purchase or
                  Corporate Partnership (i.e. minimum US$1M per order), the
                  Company shall consider granting additional discount amount for
                  Products to the Distributor; if the Distributor exceeds its
                  annual purchase commitment by at least 50% in small volume
                  purchase, no additional discount for Products will be
                  considered.

            (ii)  If the Distributor fails to meet the Minimum Purchase
                  Commitment for two (2) consecutive years from January 1, 2001,
                  the Company may terminate this Agreement without consequences
                  on either party by giving one (1) month prior written notice
                  to the Distributor. The decision to exercise this right of
                  termination will be solely at the discretion of the Company.

      6.2   The Distributor shall continuously maintain adequate resources and
            equipment and a fully dedicated team of experienced and competent
            sales, marketing and technical employees to fulfill the obligations
            of the Distributor hereunder. The Distributor shall comply with all
            certification requirements of its technical staff as requested by
            the Company.

      6.3   The Distributor shall provide M&S Services to Customers pursuant to
            Clause 7 below.

      6.4   The Distributor shall comply with all local laws and regulations and
            conduct business at all times in an honest and straightforward
            manner and make its best effort to achieve high customer
            satisfaction.

                                       5
<PAGE>

      6.5   The Distributor may not appoint any sub-distributor or sub-contract
            any third party to perform its obligations under this Agreement
            without the prior written approval of the Company.

7.    M&S SERVICES

      7.1   During the Term of the Agreement, the Distributor shall:

            (i)   use reasonable commercial effort during regular local business
                  hours, Monday through Friday, to provide direct technical
                  support service to Customers by telephone and/or electronic
                  mail to answer questions of Customers regarding the
                  installation and Use of the Products;

            (ii)  provide Customers with Revisions;

            (iii) provide training by personnel certified by the Company for any
                  Customers regarding the installation and Use of the Products;
                  and

            (iv)  promptly replace any corrupted or damaged Product.

      7.2   The Distributor shall charge the Customer applicable fees for the
            M&S Services provided. The Distributor shall pay the Net Revenue to
            the Company for the M&S Services performed pursuant to Clause 9
            below.

      7.3   The Distributor shall only provide M&S Services and training to
            Customers by qualified or certified staff as required by the
            Company.

      7.4   The Company shall coordinate between the Supplier and the
            Distributor with reasonable assistance in its provision of M&S
            Services on an "AS AVAILABLE" basis. The Company reserves the right
            to charge for the support it agrees to provide to the Distributor
            and the Distributor may reject such offer.

      7.5   The Company shall provide the Distributor with Revisions, and
            reserves the right to charge for the Revisions. The Distributor
            shall be responsible to distribute the Revisions to Customers that
            are receiving M&S Services.

8.    ORDERING AND DELIVERY OF THE PRODUCTS

      8.1   The Distributor shall furnish its order sheet for the purchase of
            the Products to the Company. Such order shall be binding upon the
            parties hereto unless the Company otherwise notifies the Distributor
            in writing within seven (7) days after the Company's receipt of such
            order. In the event of any discrepancy between the provisions of
            this Agreement and any order, unless expressly approved in writing
            signed by both parties, the provisions of this Agreement shall
            prevail.

      8.2   During the term of this Agreement, subject to the other terms and
            conditions of this Agreement, the Company will use its reasonable
            efforts to deliver (by full or partial shipment) the Products within
            fourteen (14) days from receipt of

                                       6
<PAGE>

            written orders, which are accepted by the Company at its main
            office, or at the Distributor specified shipment dates insofar as
            practical and consistent with the Company's then current lead-time
            schedule, shipping schedule, access to supplies on acceptable terms
            and allocation of available products and capacity among the Company
            customers.

      8.3   The Company shall be entitled to select the carrier and the method
            of shipment of all Products hereunder and the Distributor shall be
            responsible for all domestic transportation charges and insurance
            premiums. Risk of loss shall pass to the Distributor upon delivery
            of the Products to the Distributor.

      8.4   The Company shall accept returns of defective media of Products.

      8.5   The Company reserves the right to amend the list of Software and
            change, modify or discontinue any Products at any time upon giving
            the Distributor thirty (30) days prior written notice provided that
            the Company shall fulfill all purchase orders for discontinued
            Products accepted prior to the date of notification.

      8.6   The Distributor shall submit the necessary documents for Purchase
            Order instructed by the Company.

9.    BILLING AND SETTLEMENT PROCEDURES

      9.1   For each unit of Product distributed or M&S Services provided, the
            Distributor shall pay the Net Revenue. The Company shall issue
            invoice(s) to the Distributor for the total Net Revenue payable.
            Payment shall be made by the Distributor in Japanese Yen within
            thirty (30) days after such Net Revenue has been collected by the
            Distributor from Customers. Notwithstanding above, the Company has
            the right to issue invoice(s) for the total Net Revenue payable to
            the Distributor after one hundred and fifty (150) days even though
            the revenue has not been collected from Customers. Such payment
            shall be made by the Distributor within thirty (30) days after
            invoice(s) has been issued. Late payments shall accrue interest at
            the rate of 1% per month or the maximum rate of interest allowed by
            law whichever is less. The Company has the right to change the
            billing condition to the Distributor mentioned the above upon giving
            the Distributor thirty (30) days advance notice in writing.

      9.2   The Distributor shall be responsible for rendering bills to and
            collecting the revenue from Customers for the distribution of the
            Products and M&S Services and shall be fully responsible for any
            payment delinquencies or non-payment by Customers.

      9.3   The discounts set forth in Exhibit B shall be reviewed every year by
            the parties hereto. Notwithstanding the above, the Company reserves
            the right to revise the said discounts, the Net Revenue and the
            Recommended Price List at any time upon giving the Distributor
            thirty (30) days advance notice in writing; provided that in no
            event should the discounts be less than twenty (20)% of the
            Recommended Price in the Recommended Price List for Products; nor
            should

                                       7
<PAGE>

            the discounts be less than fifteen (15)% for M&S Services. New price
            changes will apply to all orders made after such notice period.

      9.4   The Distributor shall be responsible for paying all charges,
            including without limitation domestic transportation charges,
            insurance premiums, consumption taxes, service taxes and all other
            taxes, duties and government assessments and relating to the
            distribution of Products and the supply of M&S Services in the
            Territory.

10.   CONFIDENTIAL INFORMATION

      10.1  Upon execution of this Agreement, the Company may disclose to the
            Distributor Confidential Information for which the Distributor has a
            need to know under this Agreement. Without obtaining the Company's
            prior written consent, the Distributor shall not copy or duplicate
            any Confidential Information by any means or technique. Except as
            specifically provided in this Agreement, the Distributor shall not
            acquire any right, title or interest in or to any Confidential
            Information or any files, lists, records, documents, drawings,
            specifications, equipment, or other tangible things that incorporate
            or refer to all or a portion of the Confidential Information.

      10.2  Unless with the prior written consent of the Company, the
            Distributor shall not disclose or facilitate disclosure of such
            Confidential Information to any person, firm or entity except its
            employees. The Distributor shall take all steps necessary or
            appropriate to protect the Confidential Information against
            unauthorized disclosure and misappropriation, including, without
            limitation, causing all persons, firms and entities with access to
            any Confidential Information to enter into a confidentiality
            agreement in a form acceptable to the Company. The Distributor shall
            use the standard of care generally appropriate for the industry (but
            not less than reasonable care) in order to avoid unauthorized
            disclosure or misappropriation of such Confidential Information.

      10.3  The Distributor shall not use any Confidential Information for any
            purposes or activities other than those expressly provided in this
            Agreement or any other written agreement entered into by and between
            the parties.

      10.4  The Distributor understands and agrees that the Confidential
            Information constitutes valuable business assets of the Company
            and/or the Supplier, the unauthorized use or disclosure of which may
            irreparably damage the Company and/or the Supplier. In the event of
            threatened or breach violation of a confidentiality obligation, the
            Company shall be entitled to an injunction restraining the
            Distributor from breaching this Agreement. Nothing in this Agreement
            shall be construed as prohibiting the Company from pursuing any
            other remedies available to it for such breach or threatened
            violation, including recovery of direct and consequential damages
            from the Distributor.

                                       8
<PAGE>

11.   INTELLECTUAL PROPERTY RIGHTS

      11.1  The Distributor acknowledges that the Supplier is the exclusive
            owner and the Company is the authorized licensee of the Intellectual
            Property Rights. The Distributor shall not at any time do or cause
            to be done, and shall exercise its best efforts to ensure that none
            of its representatives does or causes to be done, any act impairing
            or tending to impair any part of any right, title or interest of the
            Company or the Supplier or to any Intellectual Property Rights
            provided. With the exception of the rights expressly granted under
            this Agreement, the Distributor shall not acquire any right, title
            or interest to or in the Intellectual Property Rights, or any
            invention, improvement or development based thereon. The Distributor
            further agrees that the Company and the Supplier shall have any and
            all right, title, interest in and to any suggested modifications,
            design changes or improvements of the Products, without payment of
            additional consideration thereof, either to the Distributor, or its
            employees agents or customers.

      11.2  The Distributor shall at all times conduct business only in its own
            name and shall not use any Intellectual Property Rights as part of
            its business name.

      11.3  The Distributor agrees that, as a condition of the rights granted
            under this Agreement and except as otherwise expressly and
            unambiguously authorized hereunder, it shall not:

            (i)   create or attempt to create, by reverse engineering or
                  otherwise, the source code or internal structure of the
                  Products or any part thereof from the object code or from the
                  information made available to it;

            (ii)  modify, amend, add to or in any way alter any Product supplied
                  to it under this Agreement;

            (iii) remove any product identification or notices of any
                  confidential or copyright restrictions from the Products or
                  any support material;

            (iv)  list or otherwise display or copy the object code of any
                  Product;

            (v)   copy the Products, develop any derivative works thereof or
                  include any portion thereof in any other software program; or

            (vi)  destroy completely any proprietary information or Confidential
                  Information contained therein prior to disposing of any media
                  or apparatus.

      11.4  The Distributor agrees that it shall not use the Intellectual
            Property Rights except in conjunction with the M&S Services, and in
            accordance with any guidelines as may be issued by the Company from
            time to time and the terms of this Agreement. The foregoing
            notwithstanding, the Distributor may use the Intellectual Property
            Rights to market and distribute the Products as set forth in this
            Agreement. The Company reserves the right to require the Distributor
            to submit to the Company for prior approval any advertising and
            sales literature of

                                       9
<PAGE>

            the Distributor that refers to the Products, or otherwise includes
            any Intellectual Property Rights. The Distributor shall make all
            modifications to the advertising and sales literature deemed
            necessary by the Company.

      11.5  The Distributor's right to use the Intellectual Property Rights
            pursuant to Clause 11.4 shall cease upon termination of this
            Agreement.

      11.6  (i)   The Distributor agrees that it shall immediately notify the
                  Company of any claims or objections, or indications of claims
                  or objections, that use of the Intellectual Property Rights by
                  the Distributor may or will infringe the proprietary rights of
                  a third party.

            (ii)  The Distributor agrees that it shall immediately notify the
                  Company of any infringement, illegal use or misuse by third
                  parties of the Intellectual Property Rights. Upon notification
                  by the Distributor of any infringement, illegal use or misuse
                  by third parties of the Intellectual Property Rights or upon
                  the Company or the Supplier otherwise learning of such
                  infringement, illegal use or misuse by third parties, the
                  Company and/or the Supplier have the right and sole
                  discretion, but not the duty, to initiate any proceeding
                  relating to the protection of the Intellectual Property
                  Rights. Should the Supplier and/or the Company make such an
                  election to initiate proceedings, the Supplier and/or the
                  Company (as the case may be) shall bear the full burden of
                  expenses for such proceedings and shall also take the full
                  benefit, if any, of such proceedings. Furthermore, in the
                  event the Supplier and/or the Company should make such an
                  election, the Distributor shall provide all necessary
                  assistance required by the Supplier and/or the Company. The
                  Distributor shall be kept fully informed of the proceedings
                  but the Supplier and/or the Company shall retain full control
                  of the proceedings.

12.   USE OF TRADE MARKS

      12.1  The Distributor shall not acquire any right to or interest in any
            Trade Marks. The Distributor may only use the Trade Marks in
            carrying out its authorized activities under this Agreement free of
            charge, and then only provided that ownership of such Trade Marks is
            clearly attributed to the Company or the Supplier.

      12.2  The Distributor acknowledges and agrees that the Company is the
            authorized user of the Trade Marks and that all goodwill arising out
            of use of the Trade Marks by the Distributor pursuant to this
            Agreement shall inure to the Company. The Distributor shall not at
            any time or in any way indicate ownership of or any right in the
            Trade Marks and shall not contest the right of the Company and/or
            its affiliates to the use of any of the Trade Marks. The Distributor
            shall not, and shall not have the right to, register, or apply for
            registration, anywhere in the world, directly or indirectly, any
            trade mark, service mark, trade name, copyright, company name or
            other proprietary or commercial right which is similar to the Trade
            Marks or take any other action that jeopardizes the Trade Mark
            owner's proprietary rights in the Trade Marks.

                                       10
<PAGE>

      12.3  The Distributor shall at all times conduct business only under its
            own name and may not use any of the Trade Marks as part of its
            business name.

      12.4  The Distributor shall not attach, remove or disfigure any Trade
            Marks on the media containing the Product (or that appear as the
            result of executing the Product) nor attach any additional marks to
            the media containing the Product except as otherwise agreed by the
            Company in writing.

      12.5  The Distributor agrees not to alter, remove or obscure any copyright
            or other proprietary notices on or in the media containing the
            Product (or that appear as the result of executing the Product) or
            related documentation or materials.

      12.6  The Company reserves the right to require the Distributor to submit
            to the Company for prior approval any and all advertising and sales
            literature of the Distributor that refers to the Company, to the
            Products, or otherwise includes any of the Trade Marks. The
            Distributor shall make all modifications to the materials deemed
            necessary by the Company to protect the goodwill associated with the
            Trade Marks. The Distributor shall also comply with any guidelines
            relating to use of the Trade Marks as may be furnished to the
            Distributor and revised by the Company from time to time.

      12.7  The Distributor's right to use the Trade Marks shall immediately
            cease upon termination or expiration of this Agreement.

13.   COMPANY COVENANTS AND REPRESENTATIONS

      The Company represents and agrees to:

      13.1  provide such assistance the Distributor in its marketing programs as
            the Company thinks fit;

      13.2  furnish the Distributor with forty (40) sets of marketing materials
            at no charge, and to provide additional copies at cost;

      13.3  provide the Distributor with timely responses regarding plans to
            correct bugs and enhance the Products;

      13.4  use reasonable commercial efforts to procure the Supplier to send
            one application engineer to the Distributor during the earlier
            stages of the Product release to provide the Distributor with
            additional support, the terms and timing of this support will be
            mutually agreed upon;

      13.5  provide a mutually agreed upon Field Application Engineer's
            Qualification Program including training, performance evaluation,
            and correction actions;

      13.6  use reasonable efforts to procure the Supplier's group of companies
            to send a representative to Japan to conduct face to face meetings
            with both the Distributor and customer to understand, evaluate and
            advise the Distributor; and

                                       11
<PAGE>

      13.7  provide the Distributor with a reasonable number of demonstration or
            customer evaluation copies of the Product for customer purchase
            evaluations at no charge to the Distributor.

14.   DISTRIBUTOR COVENANTS AND REPRESENTATIONS

      The Distributor represents and agrees:

      14.1  to provide the Company with (a) two-quarter rolling forecast by the
            end of each calendar quarter, (b) monthly sales forecast update by
            the end of each month and (c) monthly distribution and account
            activities reports;

      14.2  to use its best efforts to market and distribute the Products
            (including without limitation, inclusion of the Products in the
            Distributor's catalogs and other promotional materials) and provide
            M&S Services (including installation, training and other customer
            support) on a continuing basis and to comply with good business
            practices and all laws and regulations relevant to this Agreement or
            the subject matter hereof;

      14.3  to keep the Company informed as to any problems encountered with the
            Products and any resolutions arrived at for those problems, to
            participate in management reviews, and communicate promptly to the
            Company any and all modifications, design changes or improvements of
            the Products suggested by any Customer, employee or agent;

      14.4  not to incur any liability on behalf of the Company or in any way
            pledge or purport to pledge the Company's credit or purport to make
            any contract binding upon the Company;

      14.5  to immediately bring to the attention of the Company any information
            received by the Distributor which is likely to be of interest, use
            or benefit to the Company in relation to the marketing and/or
            support of the Products;

      14.6  to keep full, proper and up to date books of accounts and records
            showing clearly all inquiries, transactions, proceedings and
            Customer calls relating to the Products and will allow a duly
            authorized representative of the Company to have access to the said
            books and records and take such copies thereof as such
            representatives may require;

      14.7  that neither this Agreement (or any term hereof) nor the performance
            of or exercise of rights under this Agreement is restricted by, or
            contrary to, in conflict with any prior obligations of the
            Distributor to any third parties; and

      14.8  to provide Company Operations VP with written account activity
            report in English (including account situation, activity planning
            and change, technical support, customer requests, travel plans etc.)
            at the end of each month;

      14.9  to arrange face-to-face meeting between major account executives
            (Division General Manager level or above, i.e., above Director
            level) with the Company and/or the Supplier's President and CEO
            minimum once each quarter;

                                       12
<PAGE>

      14.10 to qualify all Distributor Application Engineers through Field
            Application Engineers Qualification Program provided by the Company;

      14.11 to communicate with the Company through the defined official
            communication channels, to Company Operations VP when necessary;

      14.12 to attend the Company and/or the Supplier's annual Sales Meeting at
            the Company and/or the Supplier's designated location at the
            Distributor's expense. The Distributor shall make strong efforts to
            visit the Company and/or the Supplier group of companies' marketing
            and/or R&D facilities on a regular basis to maintain good
            communications;

      14.13 that neither this Agreement (or any term hereof) nor the performance
            of or exercise of the rights under this Agreement, is restricted by,
            contrary to, in conflict with, ineffective under, or affects the
            Company and the Supplier's proprietary rights (or the duration
            thereof) under, or will require any termination payment or
            compulsory licensing under, any law or regulation of Japan. The
            Distributor shall make any filings required under Japanese laws and
            regulations; and

      14.14 to commit the following personnel for the promotion of the Company
            in Japan: (i) full time senior sales manager who also functions as
            the overall vendor project manager, (ii) full time sales
            representatives, (iii) full time application engineers, and (iv)
            full time administrative supporting staff.

15.   LIMITED WARRANTY AND DISCLAIMER

      15.1  The Company warrants that the program media of each Product will
            materially conform to the current Documentation for three (3) months
            after it is delivered to a Customer, provided the Products are
            maintained to the Company's maintenance recommendation in a manner
            specified by the Company. The Company shall replace any defective
            media within such period, provided the Distributor bears the cost of
            freight and insurance to the point of repair. The Company will bear
            the cost of freight and insurance for the return of the Products to
            the Distributor.

      15.2  The Distributor will handle and be responsible for all warranty
            returns from its Customers.

      15.3  The Company does not warrant that it will be able to correct all
            programming errors or other problems encountered by the Distributor
            and the Customers. If the Company cannot, or determines that it is
            not practical to repair or replace the returned Product, the Net
            Revenue paid by the Distributor shall be refunded.

      15.4  THE COMPANY AND THE SUPPLIERS MAKE NO OTHER WARRANTIES WITH RESPECT
            TO THE PRODUCTS OR ANY SERVICES AND HEREBY DISCLAIM ALL OTHER
            WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
            PARTICULAR PURPOSE, NON-INFRINGEMENT, TITLE, COURSE OF DEALING,
            USAGE OR ERROR FREE OPERATION.

                                       13
<PAGE>

      15.5  The above warranty does not extend to any Product that (i) is
            modified or altered, (ii) is operated in a manner other than that
            specified by the Company, (iii) has its serial number removed or
            altered (iv) is treated with abuse, negligence or other improper
            treatment (including, without limitation, use outside the
            recommended environment) or (v) is not maintained to the Company's
            maintenance specifications. The Distributor's sole remedy with
            respect to any warranty or defect is as stated above. The
            Distributor is fully responsible for satisfaction of its Customers
            and will be responsible for all claims, damages, settlements,
            expenses and attorney's fees incurred by the Company with respect to
            the Distributor's claims or representations regarding the Products
            beyond the Company's above warranty obligations to the Distributor.

16.   INDEMNIFICATION

      16.1  The Company shall hold the Distributor harmless from any third party
            claims for damages and settlements, including reasonable attorneys'
            fees and expenses related thereto, resulting from infringement by
            the Products of any United States or Japanese patent or any United
            States or Japanese copyrights, provided the Company is promptly
            notified of any and all threats, claims and proceedings related
            thereto and given reasonable assistance by the Distributor and the
            opportunity to assume sole control over the defense and all
            negotiations for a settlement or compromise; the Company will not be
            responsible for any settlement it does not approve in writing.
            Notwithstanding the foregoing, the Company is not liable to any
            claims of infringement of a patent or copyright in which the
            Distributor or any affiliate of the Distributor has an interest or
            license.

      16.2  If all or any part of the Products is, or in the opinion of the
            Company, may become, the subject of a claim or suit of infringement,
            the Company may:

            (i)   modify the Products to render them non-infringing; or

            (ii)  replace the Products with the Company's other products at
                  equivalent value with the written request from the
                  Distributor.

            THE FOREGOING IS THE EXCLUSIVE REMEDY FOR DISTRIBUTOR AND IS IN LIEU
            OF ANY WARRANTIES OF NON-INFRINGEMENT, WHICH ARE HEREBY DISCLAIMED.

      16.3  The foregoing obligation of the Company does not apply with respect
            to Products or portions or components thereof:

            (i)   not supplied by the Company;

            (ii)  made in whole or in part in accordance to the specifications
                  of the Distributor or Customer if the alleged infringement is
                  caused by such specifications;

                                       14
<PAGE>

            (iii) which are modified (other than by the Company) after shipment
                  by the Company, if the alleged infringement relates to such
                  modification;

            (iv)  combined with other products, processes or materials where the
                  alleged infringement relates to such combination;

            (v)   where the Distributor and/or Customers continue allegedly
                  infringing activity after being notified thereof or after
                  being informed of modifications that would have avoided the
                  alleged infringement,

            (vi)  where the use of the Product is incident to an infringement
                  not resulting primarily from the Product, or

            (vii) where the Product is used in an application or environment for
                  which such Product was not designed, or where the use is not
                  strictly in accordance with the pertinent directions.

      16.4  The Distributor shall hold the Company harmless from and shall
            indemnify the Company and its officers, directors, agents and
            employees from all damages, settlements, attorney's Fees and
            expenses related to a claim caused by the Distributor's act,
            omission, misconduct, negligence or breach of any term of this
            Agreement.

17.   LIMITED LIABILITY

      EXCEPT AS PROVIDED IN CLAUSE 16 ABOVE, NOTWITHSTANDING ANYTHING ELSE IN
      THIS AGREEMENT OR OTHERWISE, THE COMPANY AND THE SUPPLIER WILL NOT BE
      LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT UNDER ANY
      CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY
      FOR

      (I)   ANY AMOUNTS IN EXCESS IN THE AGGREGATE OF THE AMOUNTS PAID TO THE
            COMPANY HEREUNDER DURING THE EIGHTEEN MONTH PERIOD PRIOR TO THE DATE
            THE CAUSE OF ACTION AROSE; OR

      (II)  ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOST
            PROFITS OR LOST OR INACCURATE DATA, EVEN IF THE COMPANY OR THE
            SUPPLIERS HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; OR

      (III) COST OF PROCUREMENT OF SUBSTITUTE GOODS, TECHNOLOGY OR SERVICES. THE
            COMPANY SHALL HAVE NO LIABILITY FOR ANY FAILURE OR DELAY DUE TO
            MATTERS BEYOND ITS REASONABLE CONTROL.

      THE DISTRIBUTOR HEREBY ACKNOWLEDGES THAT THE MUTUAL COVENANTS AND
      AGREEMENTS SET FORTH IN THIS AGREEMENT REFLECT THIS ALLOCATION OF RISK.

                                       15
<PAGE>

18.   TERM AND TERMINATION

      18.1  Subject to Clauses 18.2 and 18.3 below, this Agreement shall be for
            a term of non-cancellable eight (8) years from the date of this
            Agreement. Thereafter, this Agreement shall be renewed automatically
            for successive periods of five (5) years each unless either Party
            notifies the other Party of its intention not to renew at least six
            (6) months prior to the expiration of the then current term of this
            Agreement. If the Distributor fails to meet the Minimum Purchase
            Commitment for two (2) consecutive years from January 1, 2001, the
            Company may terminate this Agreement without consequences on either
            party by giving one (1) month prior written notice to the
            Distributor. In addition, the Distributor will not be held
            responsible to pay the unfulfilled amounts of Minimum Purchase
            Commitment as outlined in Exhibit A. The decision to exercise this
            right of termination will be solely at the discretion on the
            Company.

      18.2  This Agreement may be terminated by a non-breaching party for cause
            immediately by written notice to the breaching party upon the
            occurrence of any of the following events:

            (i)   if the other ceases to do business, or otherwise terminates
                  its business operations or if there is a material change in
                  control of the other; or

            (ii)  if the other breaches any material provision of this Agreement
                  and fails to cure such breach within thirty (30) days of
                  written notice describing the breach;

            (iii) if the other shall fail to promptly secure or renew any
                  business license, registration, permit, authorization or
                  approval for the conduct of its business in the manner
                  contemplated by this Agreement of any such business license,
                  registration, permit, authorization or approval is revoked or
                  suspended and not reinstated within thirty (30) days; or

            (iv)  if the other becomes insolvent or seeks protection under any
                  bankruptcy, receivership, trust deed, creditors arrangement,
                  composition or comparable proceeding, or if any such
                  proceeding is instituted against that party.

      18.3  This Agreement may be terminated by the Company pursuant to Clause
            6.1(ii).

      18.4  Clauses 10, 11, 12, 15, 16, 17, 18, 19 and 20 shall survive
            termination of this Agreement.

19.   CONSEQUENCE OF TERMINATION

      19.1  Upon termination or expiration of this Agreement for any reason
            whatsoever, the Distributor shall immediately:

            (i)   discontinue any use of any Intellectual Property Rights of the
                  Company;

                                       16
<PAGE>

            (ii)  discontinue all representations or statements from which it
                  might be inferred that the Distributor is a distributor of the
                  Products in the Territory or is in any way related to the
                  Company;

            (iii) cease to promote, solicit orders for or procure orders for
                  Products (but will not act in any way to damage the reputation
                  of the Company or any Product) or M&S Services;

            (iv)  provide the Company with details of all Customers so that the
                  Company may enter into direct contractual relationship with
                  them regarding the distribution of and support Products in the
                  Territory with the intent that the Company shall assume all
                  maintenance and support obligations for the Products to
                  Customers in the Territory;

            (v)   return to the Company at the Distributor's expense, all
                  catalogues and literature of the Company then in possession of
                  the Distributor; and

            (vi)  return to the Company at the Distributor's expense, all copies
                  in whatever media of Confidential Information in the
                  Distributor's possession, power, custody or control or at the
                  Company's election, certify the destruction of the same by an
                  officer of the Distributor.

      19.2  Unless expressly provided otherwise herein, each party understands
            that the rights of termination hereunder are absolute. Neither party
            shall incur any liability whatsoever for any damage, loss or
            expenses of any kind suffered or incurred by the other (or for any
            compensation to the other) arising from or incident to any
            termination of this Agreement by such party which complies with the
            terms of the Agreement whether or not such party is aware of such
            damage, loss or expenses.

      19.3  Upon termination of this Agreement according to clause 18 for other
            than Distributor's breach, the Company shall continue to fulfill,
            subject to the terms of clause 8 above, all orders accepted by the
            Company prior to the date of termination.

      19.4  Upon termination, the Distributor shall be entitled to compensation
            calculated by the following formula: total amount of income from the
            previous twelve (12) months immediately prior to the date of
            termination multiplied by the number of months remaining under the
            Agreement divided by twelve (12). "Income shall mean total product
            revenue earned by the Distributor from distributing products covered
            by the Agreement minus total cost of such Product paid to the
            Company.

20.   MISCELLANEOUS

      20.1  Amendment and Waiver: Except as otherwise expressly provided herein,
            any provision of this Agreement may be amended and the observance of
            any provision of this Agreement may be waived (either generally or
            any particular instance and either retroactively or prospectively)
            only with the written consent of the parties.

                                       17
<PAGE>

      20.2  Governing Law and Legal Actions: This Agreement shall be governed by
            and construed under the laws of Japan without regard to conflicts of
            laws or provision thereof and without regard to the United Nations
            Convention on Contracts for the International Sale of goods. Both
            parties consent to the non-exclusive jurisdiction of the Japanese
            courts and agree that process may be served in the manner provided
            for giving of notices or otherwise as allowed by Japanese law. In
            any action or proceeding to enforce rights under this Agreement, the
            prevailing party shall be entitled to recover costs and attorney's
            fees.

      20.3  Headings: Headings and captions are for convenience only and are not
            to be used in the interpretation of this Agreement.

      20.4  Export Laws: The Distributor agrees to comply with all applicable
            international and national laws that apply to the export and import
            of the Products, including without limitation the US Export
            Administration Regulations (or any successor supplement or
            regulations) as well as end-user, end-used country destination
            restrictions issued by the US Export Administration and other
            government. The Distributor shall demonstrate to the Company
            compliance with all applicable laws and regulations prior to
            delivery thereof by Company.

      20.5  Notices: Notices under this Agreement shall be sufficient only if
            (x) personally delivered, (y) faxed to the fax number of a party as
            it may notify the other party in writing from time to time, with
            confirmed answer-back report, or (z) delivered by a major commercial
            rapid delivery courier or mailed by certified or registered mail,
            return receipt requested to a party at its addresses first set forth
            herein or as amended by notice pursuant to this subsection. If not
            received sooner, notice by fax shall be deemed received one (1) day
            after the date indicated in the answer-back report and notice by
            mail shall be deemed received fourteen (14) days after deposit in
            the mail.

      20.6  Assignment: The Distributor may not assign this Agreement or the
            rights thereunder without the prior consent of the Company. The
            Company may assign this Agreement by giving notice to the
            Distributor.

      20.7  Confidentiality: The parties will not disclose the terms of this
            Agreement or any Exhibit hereto to any third party without the prior
            written consent of the other party (except that either party may
            disclose such terms to potential investors, their attorney's and
            accountants, and government officials).

      20.8  Severability: If any provision of this Agreement is held by a court
            of competent jurisdiction to be illegal, invalid or unenforceable,
            that provision shall be limited or eliminated to the minimum extent
            necessary so that this Agreement shall otherwise remain in full
            force and effect and enforceable.

      20.9  Force Majeure: Neither party hereto shall be responsible for any
            failure to perform its obligations under this Agreement (other than
            any payment obligations) if such failure is caused by acts of God,
            war, strikes, revolutions, lack or failure of transportation
            facilities, laws or governmental regulations or other causes which
            are beyond the reasonable control of such party.

                                       18
<PAGE>

            Obligations hereunder, however, shall in no event be executed but
            shall be suspended only until the cessation of any cause of such
            failure. In the event that such force majeure should obstruct
            performance of this Agreement for more than one (1) month, the
            parties hereto shall consult with each other to determine whether
            this Agreement should be modified or terminated. The party facing an
            event of force majeure shall use its best endeavors in order to
            remedy that sensation as well as to minimize its effects. A case of
            force majeure shall be notified to the other party by telex or
            telefax within five (5) days after its occurrence and shall be
            confirmed by a letter. The parties expressly agree that this Clause
            20.9 shall not apply to the parties' payment obligations under this
            Agreement, which shall in no event be subject to any delay or
            suspension.

      20.10 Relationship of Parties: The parties hereto expressly understand and
            agree that the Distributor is an independent contractor in the
            performance of each and every part of this Agreement, is solely
            responsible for all of its employees and agents and its labor costs
            and expenses arising in connection therewith.

      20.11 Entire Agreement: This Agreement supersedes all proposals, oral or
            written, all negotiations, conversations, discussions or prior
            agreements between or among parties relating to the subject matter
            of this Agreement and all past dealing or industry custom.

      20.12 Counterparts: This Agreement may be executed in counterparts, each
            of which shall be deemed an original, but both of which together
            shall constitute one and the same instrument.

MAINGATE ELECTRONICS INC.:                   AVANT! JAPAN CORPORATION:

By:    /s/ MORIYUKI CHIMURA [SEAL]           By:    /s/ NORIKO ANDO [SEAL]
       ----------------------------                 ----------------------------

Date:  Oct. 1st, 2000                        Date:  Oct. 1st, 2000
       ----------------------------                 ----------------------------

Name:  Moriyuki Chimura                      Name:  Noriko Ando
       ----------------------------                 ----------------------------

Title: President                             Title: Representative Director
       ----------------------------                 ----------------------------
       MainGate Electronics Inc.                    Avant! Japan Corporation

                                       19
<PAGE>

                                   Exhibit A

                          MINIMUM PURCHASE COMMITMENT

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
                                                           Minimum Purchase
                                   Period[Q/YR]               Commitment           Cumulative Revenue
-----------------------------------------------------------------------------------------------------
<S>                            <C>                        <C>                      <C>
Product Purchase                     Q4 2000,             (yen)2,000 Million       (yen)2,000 Million
                               ending Dec 31, 2000        ((yen)2.0 Billion)       ((yen)2.0 Billion)
-----------------------------------------------------------------------------------------------------
Maintenance Purchase                 Q4 2000,              (yen)300 Million        (yen)2,300 Million
                               ending Dec 31, 2000                                 ((yen)2.3 Billion)
-----------------------------------------------------------------------------------------------------
</TABLE>

Note:   The amount of Minimum Purchase Commitment from year 2001 will be
        discussed by the Company and the Distributor and determined by the
        Company in the beginning of each year.

        For purposes of determining whether the Distributor has met its purchase
        commitment pursuant to this Exhibit A, purchase shall equal the Japanese
        yen amount generated by the Distributor from distributing the Products
        under this Agreement and the Product lease under October 1, 2000 Product
        Lease Agreement between the Distributor and the Company.

                                       20
<PAGE>

                                    Exhibit B

                            DISCOUNTS AND NET REVENUE

Products Discount to the                35.0% of the selling price; the
Distributor                             Distributor's cost shall be 65.0% of the
                                        selling price for all Products stated in
                                        Exhibit C.

Annual Maintenance discount             35.0% of the maintenance charge; the
to the Distributor                      Distributor's annual maintenance cost
                                        shall be 65.0% of the maintenance charge
                                        for all the Products stated in Exhibit
                                        C.

                                        The maintenance charge is twelve (12)%
                                        of the product list price.

Note:   (i)     The Company shall retain the right to change or modify the list
                price for Products and Maintenance. The parties agree that the
                cost of Products and/or maintenance may fluctuate from time to
                time. Accordingly, the parties agree to negotiate in good faith
                an appropriate increase or decrease to such fees. For Products
                ordered by the Distributor for its own inventory, the
                Distributor shall have the right to convert those Products to
                the Company's other products at equivalent amount of credit.

        (ii)    The Company shall instruct the Distributor the discount of
                selling price. The Company shall retain the right to approve or
                disapprove such discount.

                                       21
<PAGE>

                                    Exhibit C

                                    PRODUCTS

All Products produced or acquired by the Company and the Supplier as of the date
of this Agreement less those Products to be distributed by third parties, which
are agreed upon between the Company and the Distributor.

Non-exclusive condition Products set out below can be distributed only when they
are bundled with other products.

                         Star-Hspice family and options
                           Star-MTB family and options
                           Polaris family and options
                             Nova family and options
                       Design VERIFYer family and options

Note: As exceptional conditions, the Company appoints as a non-exclusive
condition for the distribution of Star-MS family and options.

                                       22
<PAGE>

                                    Exhibit D

                                    TERRITORY

                            Entire country of Japan

                                       23<PAGE>
                             DISTRIBUTION AGREEMENT           Exhibit 10.19

This Distribution Agreement (the "Agreement") is entered as of October 1, 2000
and made between AVANTICORP. HONG KONG LIMITED (the "Company"), with its
principal place of business at Room 1006, Bank of American Tower, 12 Harcourt
Road, Hong Kong, and DAVANTECH CO. (the "Distributor"), with its principal
place of business at 7th, Duam, #174-6, Seokchon-Dong, Songpa-ku, Korea,
138-190:

RECITALS:

A.   The Company has obtained an exclusive license in the distribution (via
     sub-licensing) of certain Avant! software-based electronic design
     automation products, including documentation and manuals therefor.

B.   The Company wishes to appoint the Distributor as an exclusive distributor
     and Distributor wishes to acquire from the Company the right to distribute,
     market and support such products in the Territory (as defined below).

NOW IT IS HEREBY AGREED AS FOLLOWS:

1.   DEFINITIONS

     In this Agreement, the following terms shall have the following meanings:

     "CONFIDENTIAL INFORMATION" includes information which the Company has
     maintained as confidential and revealed to the Distributor and which may or
     may not be related to the Products including but not limited to: technical
     information such as computer programs, characterization, formulae,
     algorithms, process, performance, interface information, proprietary
     command architecture, proprietary scheme constructs, including commands,
     format, syntax and semantics, defects, bugs, proprietary circuit behavior
     information, the Company supplied data, circuit and logic elements and
     business information, including confidential future product information,
     confidential basic concepts, marketing and sales information, sales volume,
     pricing and accounting information. Confidential Information shall also
     include oral information disclosed by the Company to the Distributor
     pursuant to this Agreement, provided such information is summarized in
     writing and is clearly marked with the Company's name and "Confidential" or
     similar proprietary marking and delivered to the Distributor within thirty
     (30) days of disclosure.

     Confidential Information does not include information which:

     (i)   has come into the public domain without breach of the confidence by
           the Distributor or any other person, firm or entity;

     (ii)  is or becomes publicly known through no wrongful act of the party to
           whom such information was disclosed;

     (iii) is received by the Distributor from a third party without
           restrictions on its use in favor of the Company or a licensor of the
           Company;

                                       1
<PAGE>
(iv)   is independently developed by the Distributor's employee, agent or
       contractor without use of Confidential Information;

(v)    is acknowledged in writing by the Company to be non-confidential; or

(vi)   is required to be disclosed pursuant to any statutory requirement or
       court order (except that the Distributor shall give the Company prompt
       notice of such statutory requirement or court order such that the Company
       may request protection therefrom).

"DOCUMENTATION" means the user guides, instruction manuals, tutorials, on-screen
user assistance available in the operation of the Software and other documents
whether in written or machine-readable form issued by the Company from time to
time for the Use of the Software;

"END USER" means a customer who has signed an End User License Agreement;

"END USER LICENSE AGREEMENT" means the End User Software and Service License
Agreement provided by the Company from time to time;

"INTELLECTUAL PROPERTY RIGHTS" means all designs patents, copyrights,
inventions, enhancements, revisions, updates, adaptations, secret and
confidential information, know-how, technical data, trade secrets,
specifications, designs, whether or not in documentary form, functional and
detailed design specifications and all other intangible property (whether or not
in documentary form and whether or not registrable, patentable, copyrightable
for otherwise protectable under applicable laws) relating to the Products;

"M&S SERVICES" means the maintenance and support services to be provided by the
Distributor pursuant to Clause 7 herein;

"MINIMUM PURCHASE COMMITMENT" means the value of minimum [quarterly/annual]
licensing commitment of Products and M&S Services as set out in Attachment A;

"MULTINATIONAL CUSTOMERS" shall mean customers who use the Products concurrently
both within and outside the Territory, including use of the Products on a wide
area network;

"NET LICENSING REVENUE" means the gross fee for any Product and fees for any
purchased M&S Services recognised by the Distributor under US GAAP, less any
direct costs (including but not limited to discounts to Distributors as set out
in Exhibit B, warehousing allowances, insurance and transportation charges,
taxes, rebates, cancellations and returns). The Net Licensing Revenue shall not
include any interest or finance charges;

"PRODUCTS" means the Software together with the corresponding Documentation;

                                       2
<PAGE>
     "RECOMMENDED PRICE LIST" means the list setting out the Recommended Price
     for the Products and M&S Services to be charged by the Distributor to the
     End Users;

     "REVISIONS" means upgrades, error corrections and updates of the Software
     in object code form made generally available to End Users of the Software.

     "SOFTWARE" means the computer software programs in object code form only
     as set out in Attachment C;

     "TERM" means the term as set out in clause 18;

     "TERRITORY" means the territory as set out in Attachment D;

     "TRADE MARK" means any trade mark, service mark, trade name, symbols and
     logos owned or authorized to be used by the Company;

     "USE" means in relation to the Software, its loading, displaying, running,
     transmission or storage for the purpose of processing the instructions
     contained in the Software.

2.   APPOINTMENT

     2.1  Subject to the terms of this Agreement, the Company hereby grants to
          the Distributor and the Distributor hereby accepts an exclusive right
          to:

          (i)   market and distribute the Products to End Users (by way of
                sub-license) solely for use in the Territory;

          (ii)  install the Products for End Users; and

          (iii) provide M&S Services to End Users.

          No source code for the software will be deemed as included, by
          inference or otherwise, in the License granted by this Agreement.

          The Company shall not appoint any person or entity other than the
          Distributor as its distributor, representative or agent, excluding
          OEM's or VAR's for the distribution of Products in the Territory.

     2.2  (i)  Subject to applicable terms and conditions, including fees, to
               be agreed on a case by case basis, the Distributor hereby grants
               the Company (or its other distributors as the case may be) a
               non-exclusive right within the Territory for the Term of this
               Agreement to:

               (a)  distribute the Products directly to End Users; and

               (b)  grant such End Users the right to use the Products.

               For purpose of this Clause, End Users shall be Multinational
               Customers of the Company or its other distributors (as the case
               may be).

                                       3

<PAGE>
          (ii) Where the Multinational Customer is an End User of the
               Distributor subject to applicable terms and conditions, including
               fees, to be agreed on a case by case basis, the Company hereby
               grants, and/or shall use reasonable commercial effort to procure
               any relevant third party to grant, the Distributor a
               non-exclusive right outside the Territory for the Term of this
               Agreement to

               (a)  distribute the Products directly to such Multinational
                    Customers; and

               (b)  grant such Multinational Customer the right to use the
                    Products.

     2.3  An End User within the Territory, who desires to have the right to use
          the input/output, ("I/O") format files of the Products in order to
          develop and distribute an interfacing product between the Product(s)
          and third parties' software programs solely for use within End User's
          internal design flow, may submit a request to the Distributor. The
          Distributor will forward such request to the Company. The Company has
          the sole discretion in deciding whether or not to grant such right and
          terms and conditions attached to such right if granted.

     2.4  The Company reserves the right to change, modify or discontinue any of
          the Products at any time provided that the Distributor is given ninety
          (90) days prior written notice. Any Revision, enhancement or
          improvement of a Product that is generally made available by the
          Company, that is substantially similar to such Products and that is
          marketed under the same product number and nomenclature as such
          Product shall be added to Attachment C as a new Product. In addition
          to the foregoing, any products developed by the Company other than the
          substantially similar products referenced above, shall be considered
          as a new product and the Company shall decide whether the Distributor
          is authorized to distribute this new product; provided, however, that
          if any such new product is competitive with any non-Company products
          that Distributor is distributing, Distributor shall have thirty (30)
          days to decide whether to distribute Company's new product, or the
          non-Company product Distributor is then currently distributing. If
          Distributor decides to distribute the non-Company product, then
          Distributor, for the remainder of the term of this Agreement, will be
          a non-exclusive Distributor of the Products and Company shall, at its
          discretion, appoint other distributors, representatives or agents for
          the distribution of Products in the Territory. The Distributor shall
          have the right and freedom to distribute any non-competitive software
          products or services.

     2.5  All rights not expressly granted are hereby reserved by the Company.

3.   RESTRICTIONS ON THE APPOINTMENT

     3.1  The Distributor may only distribute the Products to persons and
          entities located and taking delivery within the Territory (except for
          Multinational Customers pursuant to Clause 2.2 above).

                                       4
<PAGE>

     3.2  The Distributor shall not tamper with the packaging of the Products
          and shall only sub-license the Products as packaged by the Company.

4.   LICENSE TO DISTRIBUTOR

     4.1  This Agreement shall operate as a limited and non-transferable
          License for the Distributor to Use [ten (10)] copies of the Products
          for demonstration, internal training, testing, providing M&S
          Services. The Distributor may make a single copy of each Product for
          archival purposes.

     4.2  Except as provided in Clause 4.1, Distributor may not use the
          Products for its own internal use without prior written permission of
          the Company.

5.   LICENSE TO END USER

     5.1  The Distributor shall ensure that each customer has executed an
          appropriate End User License Agreement for the Products as provided
          by the Company. Any changes to the End User License shall require
          prior written consent from the Company.

     5.2  The Distributor shall obligate each End User, by execution of the End
          User License Agreement, not to:

          (i)     create or attempt to create by reverse engineering or
                  otherwise, the source code or internal structure of the
                  Products or any part thereof from the object code or from the
                  information available to it;

          (ii)    modify, amend, add to or in any way alter any Product supplied
                  to it under the End User License Agreement; and

          (iii)   make any copy of the Products without the prior consent of the
                  Distributor (except one copy thereof for archival purpose).

6.   RESPONSIBILITIES OF DISTRIBUTOR

     6.1  The Distributor shall meet its Minimum Purchase Commitment to the
          Company during the Term of this Agreement.

     6.2  The Distributor shall continuously maintain adequate resources and
          equipment and a fully dedicated team of experienced and competent
          sales, marketing and technical employees to fulfill the obligations
          of the Distributor hereunder. The Distributor shall comply with all
          certification requirements of its technical staff as requested by the
          Company.

     6.3  The Distributor shall provide M&S Services to End Users pursuant to
          Clause 7 below.

     6.4  The Distributor shall conduct business at all times in an honest and
          straightforward manner and make its best effort to achieve high
          customer satisfaction.

                                       5
<PAGE>
     6.5  The Distributor may not appoint any sub-distributor or sub-contract
          any third party to perform its obligations under this Agreement
          without the prior written approval of the Company.

7. M&S SERVICES

     7.1  During the Term of the Agreement, the Distributor shall:

          (i)   provide End Users with upgrades, error corrections and Revisions
                of the Products as and when they become available from the
                Company;

          (ii)  provide training for any End Users regarding the installation
                and Use of the Products; and

          (iii) promptly replace any corrupted or damaged Product.

     7.2  The Distributor shall charge the End User a fee for the performance of
          the M&S Services according to the Recommended Price List. The
          Distributor shall pay to the Company for the M&S Services pursuant to
          Clause 9.

     7.3  The Distributor shall only provide M&S Services and training to End
          Users by qualified or certified staff as required by the Company.

     7.4  The Company shall provide reasonable assistance to the Distributor in
          its provision of M&S Services on an "AS AVAILABLE" basis. The Company
          reserves the right to charge for the support it agrees to provide to
          the Distributor and the Distributor may reject such offer. It is
          expected that the Distributors shall use its best efforts to
          familiarize itself with the Products and such that the assistance to
          be provided by the Company will be minimal.

     7.5  The Company shall provide the Distributor with Revisions, and reserves
          the right to charge for the Revisions. The Distributor shall be
          responsible to distribute the Revisions to End Users that are
          receiving M&S Services.

8. ORDERING AND DELIVERY OF THE PRODUCTS

     8.1  Distributor shall furnish its order sheet for the purchase of the
          Products to Company. Such order shall be binding upon the parties
          hereto unless Company otherwise notifies Distributor in writing within
          seven (7) days after the Company's receipt of such order. In the event
          of any discrepancy between the provisions of this Agreement and any
          order, unless expressly approved in writing signed by both parties,
          the provisions of this Agreement shall prevail.

     8.2  Products are delivered F.O.B. Korea from the Company's applicable
          warehouse or place of production to Distributor. During the term of
          this Agreement, subject to the other terms and conditions of this
          Agreement, Company will use its reasonable efforts to deliver (by full
          or partial shipment) the Products within three (3) days from receipt
          of written orders, which are accepted by Company at its main office,
          or at Distributor specified shipment dates insofar as practical

                                       6
<PAGE>
          and consistent with Company's then current lead-time schedule,
          shipping schedule, access to supplies on acceptable terms and
          allocation of available products and capacity among Company customers.

     8.3  The Company shall be entitled to select the carrier and the method of
          shipment of all Products hereunder and the Distributor shall be
          responsible for all shipping costs and insurance premiums. Risk of
          loss shall pass to the Distributor upon delivery of the Products to
          the carrier.

     8.4  The Company shall accept unlimited returns of defective media of
          Products.

9.   BILLING AND SETTLEMENT PROCEDURES

     9.1  (a)  For each unit of Products or M&S Services distributed in the
               Territory, the Distributor shall pay to the Company the Net
               Licensing Revenue. The Company shall issue invoice(s) to the
               Distributor for the total Net Licensing Revenue payable. Payment
               shall be made by the Distributor in US dollars within ninety (90)
               days after the Net Licensing Revenue has become "recognized
               revenue" to the Distributor in accordance with United States
               generally accepted accounting principles. For special cases and
               upon mutual agreement, the parties may extend the credit period
               from the said ninety (90) days to one hundred and eighty (180)
               days. The payment amount and the discount are based on a fixed
               exchange rate that is specified in Attachment B.

          (b)  In the event that the exchange rate exceeds +/- five percent (5%)
               the effect of such excess shall be borne equally by Company and
               Distributor. By way of example, if the fixed exchange rate is 105
               won to 1 dollar the Distributor shall make payment based on an
               exchange rate of 110 won to one (1) dollar, (10/2 = 5; 5 + 105 =
               110). By way of further example, of the fixed exchange rate is
               105 won to one (1) dollar and the exchange rate on the date the
               customer pays the Distributor is between 99 to 111 won to one (1)
               dollar the Distributor will make payment based on an exchange
               rate of 105 won to one (1) dollar. Company and Distributor shall
               review the fixed exchange rate annually and mutually agree on a
               fixed exchange rate for the following year. If the parties do not
               review the fixed exchange rate or do not agree on a new fixed
               exchange rate, then the fixed exchange rate for the prior year
               will remain in effect.

     9.2  If the Distributor exceeds its Minimum Purchase Commitment to the
          Company by at least 50% via large volume purchase or Corporate
          Partnership (i.e. minimum US$1M per order), the Company shall consider
          to grant additional discount amount for Products to Distributor, if
          the Distributor exceeds its Minimum Purchase Commitment by at least
          50% via aggregate of small volume purchases, no additional discount
          for Products will be considered.

     9.3  The discounts set forth in Attachment B shall be reviewed every year
          by the parties hereto. Notwithstanding the above, the Company reserves
          the right to revise the said discounts, the Net Licensing Revenue and
          the Recommended

                                       7
<PAGE>
          Price List at any time upon giving the Distributor thirty (30) days
          advance notice in writing; provided that in no event should the
          discounts be less than 20% off the Recommended Price in the
          Recommended Price List; Provided further that for M&S Services, the
          parties shall negotiate in good faith an appropriate increase or
          decrease in price. New Price changes will apply to all orders made
          after such notice period.

     9.4  The Distributor shall be responsible for paying all charges,
          including without limitation transportation charges and insurance
          premiums, and all local import duties, value added taxes, service
          taxes and all other taxes, duties and government assessments relating
          to the distribution of Products and the supply of M&S Services in the
          Territory.

     9.5  All payments required to be made to the Company hereunder shall be
          made without any withholding tax unless such withholding is required
          by any applicable law. If the Distributor is required by law to make
          such withholding from any such payment, the relevant sum payable by
          the Distributor shall be increased to the extent necessary to ensure
          that, after the making of such withholding, the Company receives and
          retains (free from any liability in respect of any such deduction or
          withholding) a net sum equal to the sum which it would have received
          and so retained had no such withholding been made or required to be
          made.

10.  CONFIDENTIAL INFORMATION

     10.1 Upon execution of this Agreement, the Company may disclose to the
          Distributor Confidential Information for which the Distributor has a
          need to know under this Agreement. Without obtaining the Company's
          prior written consent, the Distributor shall not copy or duplicate
          any Confidential Information by any means or technique. Except as
          specifically provided in this Agreement, the Distributor shall not
          acquire any right, title or interest in or to any Confidential
          Information or any files, lists, records, documents, drawings,
          specifications, equipment, or other tangible things that incorporate
          or refer to all or a portion of the Confidential Information.

     10.2 Unless with the prior written consent of the Company the Distributor
          shall not disclose or facilitate disclosure of such Confidential
          Information to any person, firm or entity except its employees,
          agents or consultants who have a need-to-know. The Distributor shall
          take all steps necessary or appropriate to protect the Confidential
          Information against unauthorized disclosure and misappropriation,
          including, without limitation, causing all persons, firms and
          entities with access to any Confidential Information to enter into a
          confidentiality agreement in a form acceptable to the Company. The
          Distributor shall use the standard of care generally appropriate for
          the industry (but no less than reasonable care) in order to avoid
          unauthorized disclosure or misappropriation of such Confidential
          Information.

     10.3 The Distributor shall refrain from using or exploiting any and all
          Confidential Information for any purposes or activities other than
          those expressly provided

                                       8

<PAGE>
          in this Agreement or any other written agreement entered into by and
          between the parties

     10.4 The Distributor understands and agrees that the Confidential
          Information constitutes valuable business assets of the Company and/or
          its licensor, the unauthorized use or disclosure of which may
          irreparably damage the Company and/or its licensor. In the event of
          breach of confidence or threatened violation of its obligations under
          this Clause 10 by the Distributor, the Company shall be entitled to an
          injunction restraining the Distributor  from breaching this Agreement.
          Nothing in this Agreement shall be construed as prohibiting the
          Company from pursuing any other remedies available to it for such
          breach or threatened violation, including recovery of direct and
          consequential damages from the Distributor.

11.  INTELLECTUAL PROPERTY RIGHTS

     11.1 The Distributor acknowledges that the Company is the exclusive owner
          or authorized licensee of the Intellectual Property Rights. The
          Distributor shall not at any time do or cause to be done, and shall
          exercise its best efforts to ensure that none of its representatives
          does or causes to be done, any act impairing or tending to impair any
          part of any right, title or interest of the Company or its licensor in
          or to any Intellectual Property Rights provided, however, that any
          challenge of the validity of any item or part of the Intellectual
          Property Rights in a legal proceeding shall not be considered to be an
          act tending to impair said right, title or interest. With the
          exception of the rights expressly licensed under this Agreement, the
          Distributor shall not acquire any right, title or interest to or in
          the Intellectual Property Rights, or any invention, improvement or
          development based thereon. The Distributor further agrees that the
          Company shall have any and all right title and interest in and to any
          suggested modifications, design changes or improvements of the
          Products, without payment of any additional consideration therefore
          either to the Distributor, or its employees, agents or customers.

     11.2 The Distributor shall at all times conduct business only in its own
          name and shall not use any Intellectual Property Rights as part of its
          business name.

     11.3 The Distributor agrees that, as a condition of the rights granted
          under this Agreement and except as otherwise expressly and
          unambiguously authorized hereunder, it shall not:

          (i)   create or attempt to create, by reverse engineering or
                otherwise, the source code or internal structure of the Products
                or any part thereof from the object code or from the information
                made available to it;

          (ii)  modify, amend, add to or in any way alter any Product supplied
                to it under this Agreement;

          (iii) remove any product identification or notices of any
                confidential or copyright restrictions from the Products or any
                Documentation;

                                       9
<PAGE>
          (iv) list or otherwise display or copy the object code of any Product;
               or

          (v)  copy the Products, develop any derivative works thereof or
               include any portion thereof in any other software program;

          (vi) prior to disposing of any media or apparatus, to destroy
               completely any proprietary information or Confidential
               Information contained therein.

     11.4 The Distributor agrees that it shall not use the Intellectual Property
          Rights except in conjunction with the marketing and distribution of
          the Products and the supply of the M&S Services, and in accordance
          with any guidelines as may be issued by the Company from time to time
          and the terms of this Agreement. The Company reserves the right to
          require the Distributor to submit to the Company for prior approval
          any and all advertising and sales literature of the Distributor that
          refers to the Products, or otherwise includes any Intellectual
          Property Rights. The Distributor shall make all modifications to the
          advertising and sales literature deemed necessary by the Company.

     11.5 The Distributor's right to use the Intellectual Property Rights
          pursuant to Clause 11.4 shall cease upon termination of this
          Agreement.

     11.6 (i)  The Distributor agrees that it shall immediately notify the
               Company of any claims or objections, or indications of claims or
               objections, that use of the Intellectual Property Rights by the
               Distributor may or will infringe the proprietary rights of a
               third party.

          (ii) The Distributor agrees that it shall immediately notify the
               Company of any infringement, illegal use or misuse by third
               parties of the Intellectual Property Rights. Upon notification by
               the Distributor of any infringement, illegal use or misuse by
               third parties of the Intellectual Property Rights or upon the
               Company otherwise learning of such infringement, illegal use or
               misuse by third parties, the Company has the right and sole
               discretion, but not the duty, to initiate any proceeding relating
               to the protection of the Intellectual Property Rights. Should the
               Company make such an election to initiate proceedings, the
               Company shall bear the full burden of expenses for such
               proceedings and shall also take the full benefit, if any, of such
               proceedings. Furthermore, in the event the Company should make
               such an election, the Distributor shall provide all necessary
               assistance required by the Company. The Distributor shall be kept
               fully informed of the proceedings but the Company shall retain
               full control of the proceedings.

12.  USE OF TRADE MARKS

     12.1 The Distributor shall not acquire any right to or interest in any
          Trade Marks. The Distributor may only use the Trade Marks in carrying
          out its licensed activities under this Agreement, and then only
          provided that ownership of such Trade Marks is clearly attributed to
          the Company or its licensor(s).

                                       10
<PAGE>

      12.2  The Distributor acknowledges and agrees that the Company is the
            owner and/or licensee of the Trade Marks and that all goodwill
            arising out of use of the Trade Marks by the Distributor pursuant
            to this Agreement shall inure to the Company. The Distributor shall
            not at any time or in any way indicate ownership of or any right in
            the Trade Marks and shall not contest the right of the Company
            and/or its affiliates to the use of any of the Trade Marks. The
            Distributor shall not, and shall not have the right to, register,
            or apply for registration, anywhere in the world, directly or
            indirectly, any trade mark, service mark, trade name, copyright,
            company name or other proprietary or commercial right which is
            confusingly similar to the Trade Marks or take any other action
            that jeopardizes the Company's proprietary rights in the Trade
            Marks.

      12.3  The Distributor shall at all times conduct business only under its
            own name and may not use any of the Trade Marks as part of its
            business name.

      12.4  The Distributor shall not attach, remove or disfigure any Trade
            Marks on the media containing the Product (or that appear as the
            result of executing the Product) nor attach any additional marks to
            the media containing the Product except as otherwise agreed by the
            Company in writing.

      12.5  The Distributor agrees not to alter, remove or obscure any
            copyright or other proprietary notices on or in the media
            containing the Product (or that appear as the result of executing
            the Product) or related documentation or materials.

      12.6  The Company reserves the right to require the Distributor to submit
            to the Company for prior approval any and all advertising and sales
            literature of the Distributor that refers to the Company, to the
            Products, or otherwise includes any of the Trade Marks. The
            Distributor shall make all modifications to the materials deemed
            necessary by the Company to protect the goodwill associated with
            the Trade Marks. The Distributor shall also comply with any
            guidelines relating to use of the Trade marks as may be furnished
            to the Distributor and revised by the Company from time to time.

      12.7  The Distributor's right to use the Trade Marks shall immediately
            cease upon termination or expiration of this Agreement.

13.   COMPANY COVENANTS AND REPRESENTATIONS

      The Company represents and agrees to:

      13.1  provide such assistance the Distributor in its marketing programs
            as the Company thinks fit;

      13.2  fulfill orders accepted by the Company for the Products in
            accordance with this Agreement;

      13.3  notify the Distributor as soon as practicable regarding the release
            of new or revised Products;

                                       11
<PAGE>
     13.4 furnish the Distributor with forty (40) sets of marketing materials at
          no charge, and to provide additional copies at cost;

     13.5 provide Distributor with timely responses regarding plans to correct
          bugs and enhance the products;

     13.6 send one Company application engineer to Distributor during the
          earlier stages of the Product release for at least one week to provide
          Distributor with additional support; the terms and timing of this
          support will be mutually agreed upon;

     13.7 provide a mutually agreed upon Field Application Engineer's
          Qualification Program including training, performance evaluation, and
          correction actions;

     13.8 visit Korea at least once each quarter and conduct face to face
          meetings with both the Distributor and customer to understand,
          evaluate and advise the Distributor; and

     13.9 provide the Distributor with a reasonable number of demonstration or
          customer evaluation copies of the Product for customer purchase
          evaluations at no charge to the Distributor.

14.  DISTRIBUTOR COVENANTS AND REPRESENTATIONS

     The Distributor represents and agrees:

     14.1 to provide the Company with (a) two-quarter rolling forecast by the
          end of each calendar quarter, (b) monthly sales forecast update by the
          end of each month and (c) weekly sales prospects when possible;

     14.2 to use its best efforts to market and distribute the Products
          (including without limitation, inclusion of the Products in the
          Distributor's catalogs and other promotional materials) and provide
          M&S Services (including installation, training and other customer
          support) on a continuing basis and to comply with good business
          practices and all laws and regulations relevant to this Agreement or
          the subject matter hereof;

     14.3 to keep the Company informed as to any problems encountered with the
          Products and any resolutions arrived at for those problems, to
          participate in management reviews, and to communicate promptly to the
          Company any and all modifications, design changes or improvements of
          the Products suggested by any End User, employee or agent;

     14.4 not to incur any liability on behalf of the Company or in any way
          pledge or purport to pledge the Company's credit or purport to make
          any contract binding upon the Company;

     14.5 immediately bring to the attention of the Company any information
          received by the Distributor which is likely to be of interest, use or
          benefit to the Company in relation to the marketing and/or support of
          the Products;

                                       12
<PAGE>
     14.6  to keep full, proper and up to date books of accounts and records
           showing clearly all inquiries, transactions, proceedings and End
           User calls relating to the Products and will allow a duly authorised
           representative of the Company to have access to the said books and
           records and take such copies thereof as such representatives may
           require;

     14.7  that neither this Agreement (or any term hereof) nor the performance
           of or exercise of rights under this Agreement is restricted by, or
           contrary to, in conflict with any prior obligations of the
           Distributor to any third parties;

     14.8  to provide Company Operations VP with written account activity
           report (including account situation, activity planning and change,
           technical support, customer requests, travel plans etc.) at the end
           of each month;

     14.9  to arrange face-to-face meeting between major account executives
           (Division General Manager level or above, i.e., above Director
           level) with Company President and CEO minimum once each quarter;

     14.10 to qualify all Distributor Application Engineers through Field
           Application Engineers Qualification Program developed by Company;

     14.11 to communicate with the Company through the defined official
           communication channels to Company Operations VP when necessary;

     14.12 to attend Company's annual Sale Meeting at the Company's designated
           location at the Distributor's expense. The Distributor shall make
           strong efforts to visit the Company in US on a regular basis to
           maintain good communication; and

     14.13 that neither this Agreement (or any term hereof) nor the performance
           of or exercise of the rights under this Agreement, is restricted by,
           contrary to, in conflict with, ineffective under, or affects the
           Company's proprietary rights (or the duration thereof) under, or
           will required any termination payment or compulsory licensing under,
           any law or regulation of Korea. The Distributor shall making any
           filings required under Korean laws and regulations.

15.  WARRANTY

     15.1  The Company warrants that the program media of each Product will
           materially conform to the then current Documentation for three (3)
           months after it is delivered to an End User, provided the Products
           are maintained to the Company's maintenance recommendation and in a
           manner specified by the Company. The Company shall replace any
           defective media within such period, provided the Distributor bears
           the cost of freight and insurance to the point of repair. The
           company will bear the cost of freight and insurance for the return
           of the Products to the Distributor.

                                       13

<PAGE>

      15.2  The Distributor will handle and be responsible for all warranty
            returns from its End Users. The Company will bear the costs of
            freight and insurance for the return of goods to Distributor.

      15.3  The Company does not warrant that it will be able to correct all
            programming errors or other problems encountered by the Distributor
            and the End Users. If Company cannot, or determines that it is not
            practical to repair or replace the returned Product, the price
            therefor paid by Distributor shall be refunded.

      15.3  THE COMPANY AND ITS SUPPLIERS MAKE NO OTHER WARRANTIES WITH RESPECT
            TO THE PRODUCTS OR ANY SERVICES AND HEREBY DISCLAIM ALL OTHER
            WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
            PARTICULAR PURPOSE, NON-INFRINGEMENT, TITLE, COURSE OF DEALING,
            USAGE OR ERROR FREE OPERATION.

      15.4  The above warranty does not extend to any Product that is modified,
            or altered, is not maintained to the Company's maintenance
            recommendations, is operated in a manner other than that specified
            by the Company, has its serial number removed or altered or is
            treated with abuse, negligence or other improper treatment
            (including, without limitation, use outside the recommended
            environment). The Distributor's sole remedy with respect to any
            warranty or defect is as stated above. The Distributor is fully
            responsible for satisfaction of its customers and will be
            responsible for all claims, damages, settlements, expenses and
            attorney's fees incurred by the Company with respect to the
            Distributor's claims or representations regarding the Products
            beyond Company's above warranty obligations to the Distributor.

16.   INDEMNIFICATION

      16.1  The Company shall hold the Distributor harmless from any third
            party claims for damages and settlements, including reasonable
            attorneys' fees and expenses related thereto, resulting from
            infringement by the Products of any United States or Korea patent
            or any United States or Korea copyrights, provided the Company is
            promptly notified of any and all threats, claims and proceedings
            related thereto and given reasonable assistance by the Distributor
            and the opportunity to assume sole control over the defense and all
            negotiations for a settlement or compromise; the Company will not
            be responsible for any settlement it does not approve in writing.
            Notwithstanding the foregoing, the Company is not liable to any
            claims of infringement of a patent or copyright in which
            Distributor or any affiliate of Distributor has an interest or
            license.

      16.2  If all or any part of the Products is, or in the opinion of the
            Company, may become, the subject of a claim or suit of
            infringement, the Company may:

            (i)   secure the right of the Distributor, or End Users to continue
                  Using the Products;

            (ii)  modify the Products to render them non-infringing; or

                                       14
<PAGE>
          (iii) reimburse the Distributor the Net Licensing Revenue paid to the
                Company for such infringing Products.

          THE FOREGOING IS THE EXCLUSIVE REMEDY FOR DISTRIBUTOR AND IS IN LIEU
          OF ANY WARRANTIES OF NON-INFRINGEMENT, WHICH ARE HEREBY DISCLAIMED.

     16.3 The foregoing obligation of the Company does not apply with respect to
          Products or portions or components thereof:

          (i)   not supplied by the Company;

          (ii)  made in whole or in part in accordance to the specifications of
                the Distributor or End User if the alleged infringement is
                caused by such specifications;

          (iii) which are modified (other than by the Company) after shipment by
                the Company, if the alleged infringement relates to such
                modification;

          (iv)  combined with other products, processes or materials where the
                alleged infringement relates to such combination;

          (v)   where the Distributor and/or End Users continue allegedly
                infringing activity after being notified thereof or after being
                informed of modifications that would have avoided the alleged
                infringement;

          (vi)  where the use of the Product is incident to an infringement not
                resulting primarily from the Product; or

          (vii) where the Product is used in an application or environment for
                which such Product was not designed, or where the use is not
                strictly in accordance with the pertinent directions.

     16.4 The Distributor shall hold the Company harmless from and shall
          indemnify the Company and its officers, directors, agents and
          employees from all damages, settlements, attorney's Fees and expenses
          related to a claim caused by the Distributor's act, omission,
          misconduct, negligence or breach of any term of this Agreement.

17.  LIMITED LIABILITY

     EXCEPT AS PROVIDED IN CLAUSE 16 ABOVE, NOTWITHSTANDING ANYTHING ELSE IN
     THIS AGREEMENT OR OTHERWISE, THE COMPANY AND ITS SUPPLIER WILL NOT BE
     LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT UNDER ANY
     CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY
     FOR

     (I)  ANY AMOUNTS IN EXCESS IN THE AGGREGATE OF THE AMOUNTS PAID TO THE
          COMPANY HEREUNDER DURING THE EIGHTEEN

                                       15

<PAGE>
           MONTH PERIOD PRIOR TO THE DATE THE CAUSE OF ACTION AROSE; OR

     (II)  ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOST
           PROFITS OR LOST OR INACCURATE DATA, EVEN IF THE COMPANY OR ITS
           SUPPLIERS HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; OR

     (III) COST OF PROCUREMENT OF SUBSTITUTE GOODS, TECHNOLOGY OR SERVICES. THE
           COMPANY SHALL HAVE NO LIABILITY FOR ANY FAILURE OR DELAY DUE TO
           MATTERS BEYOND ITS REASONABLE CONTROL.

     THE DISTRIBUTOR HEREBY ACKNOWLEDGES THAT THE MUTUAL COVENANTS AND
     AGREEMENTS SET FORTH IN THIS AGREEMENT REFLECT THIS ALLOCATION OF RISK.

18.  TERM AND TERMINATION

     18.1 Subject to Clause 18.2 below, this Agreement shall be for a
          non-cancelable term up to 31 December, 2007. Thereafter, this
          Agreement shall be renewed automatically for successive periods of
          five (5) years unless either Party notifies the other Party of its
          intention not to renew at least six (6) months prior to the expiration
          of the then current term of this Agreement.

     18.2 This Agreement may be terminated by a party for cause immediately by
          written notice upon the occurrence of any of the following events:

          (i)   if the other ceases to do business, or otherwise terminates its
                business operations or if there is a material change in control
                of the other; or

          (ii)  if the other breaches any material provision of this Agreement
                and fails to cure such breach within 30 days of written notice
                describing the breach; or

          (iii) if the other shall fail to promptly secure or renew any license,
                registration, permit, authorization or approval for the conduct
                of its business in the manner contemplated by this Agreement of
                any such license, registration, permit, authorization or
                approval is revoked or suspended and not reinstated within
                thirty (30) days; or

          (iv)  if the other becomes insolvent or seeks protection under any
                bankruptcy, receivership, trust deed, creditors arrangement,
                composition or comparable proceeding, or if any such proceeding
                is instituted against that party.

     18.3 Clauses 10, 11, 12, 15, 16, 17, 18, 19 and 20 shall survive
          termination of this Agreement.

19. CONSEQUENCE OF TERMINATION

                                       16
<PAGE>

      19.1  Upon termination or expiration of this Agreement for any reason
            whatsoever, the Distributor shall immediately:

            (i)   discontinue any use of any Intellectual Property Rights of
                  the Company;

            (ii)  discontinue all representations or statements from which it
                  might be inferred that the Distributor is a distributor of
                  the Products in the Territory or is in any way related to the
                  Company;

            (iii) cease to promote, solicit orders for or procure orders for
                  Products (but will not act in any way to damage the
                  reputation of the Company or any Product) or M&S Services;

            (iv)  provide the Company with details of all End Users so that the
                  Company may enter into direct contractual relationship with
                  them regarding the distribution and support of Products in
                  the Territory with the intent that the Company shall assume
                  all maintenance and support obligations for the Products to
                  customers in the Territory;

            (v)   return to the Company at the Distributor's expense, all
                  catalogues and literature of the Company then in possession
                  of the Distributor; and

            (vi)  return to the Company at the Distributor's expense, all
                  copies in whatever media of Confidential Information in the
                  Distributor's possession, power, custody or control or at the
                  Company's election, certify the destruction of the same by an
                  officer of the Distributor.

      19.2  Unless expressly provided otherwise herein, each party understands
            that the rights of termination hereunder are absolute. Neither
            party shall incur any liability whatsoever for any damage, loss or
            expenses of any kind suffered or incurred by the other (or for any
            compensation to the other) arising from or incident to any
            termination of this Agreement by such party which complies with the
            terms of the Agreement whether or not such party is aware of such
            damage, loss or expenses.

      19.3  Upon termination, Distributor shall be entitled to compensation to
            be calculated by the following formula: total amount of Income from
            the previous twelve (12) months immediately prior to the date of
            termination multiplied by the number of months remaining under the
            Agreement divided by twelve (12). "Income" shall mean total product
            revenue earned by the Distributor from distributing products
            covered by the Agreement minus total cost of such Product paid to
            the Company.

20.   MISCELLANEOUS

      20.1  Amendment and Waiver: Except as otherwise expressly provided
            herein, any provision of this Agreement may be amended and the
            observance of any provision of this Agreement may be waived (either
            generally or any particular

                                       17
<PAGE>
           instance and either retroactively or prospectively) only with the
           written consent of the parties.

     20.2  Governing Law and Legal Actions: This Agreement shall be governed by
           and construed under the laws of the State of California and the
           United States without regard to conflicts of laws or provisions
           thereof and without regard to the United Nations Convention on
           Contracts for the International Sale of goods. Unless waived by
           Company in writing for the particular instance (which Company may do
           at its option), the sole jurisdiction and venue for actions related
           to the subject matter hereof shall be the U.S. federal courts having
           within their jurisdiction the location of Company's principal place
           of business. Both parties consent to the jurisdiction of such courts
           and agree that process may be served in the manner provided for
           giving of notices or otherwise as allowed by California State or
           federal law. In any action or proceeding to enforce rights under this
           Agreement, the prevailing party shall be entitled to recover costs
           and attorneys' fees.

     20.3  Headings: Headings and captions are for convenience only and are not
           to be used in the interpretation of this Agreement.

     20.4  Export Laws: The Distributor agrees with all applicable international
           and national laws that apply to the export and import of the
           Products, including the Department of Commerce and the US Export
           Administration Regulations (or any successor supplement or
           regulations) as well as end-user, end-used country destination
           restrictions issued by the US Export Administration and other
           government. The Distributor shall demonstrate to the Company
           compliance with all applicable laws and regulations prior to delivery
           thereof by Company.

     20.5  Notices: Notices under this Agreement shall be sufficient only if (x)
           personally delivered, (y) faxed to the fax number of a party as it
           may notify the other party in writing from time to time, with
           confirmed answer-back report, or (z) delivered by a major commercial
           rapid delivery courier or mailed by certified or registered mail,
           return receipt requested to a party at its addresses first set forth
           herein or as amended by notice pursuant to this subsection. If not
           received sooner, notice by fax shall be deemed received one (1) day
           after the date indicated in the answer-back report and notice by mail
           shall be deemed received fourteen (14) days after deposit in the
           mail.

     20.6  This Agreement and the rights hereunder are not transferable or
           assignable without prior written consent of the parties hereto,
           except for rights to payment and except to a person or entity who
           acquires all or substantially all of the assets or business of a
           party, whether by sale, merger or otherwise; any such assignee shall
           agree to abide by the terms and conditions of this Agreement.

     20.7  Confidentiality: The parties will not disclose the terms of this
           Agreement or any attachment hereto to any third party without the
           prior written consent of the other party (except that either party
           may disclose such terms to potential investors, their attorney's and
           accountants, and government officials).

                                       18

<PAGE>
          20.8 Severability: If any provision of this Agreement is held by a
               court of competent jurisdiction to be illegal, invalid or
               unenforceable, that provision shall be limited or eliminated to
               the minimum extent necessary so that this Agreement shall
               otherwise remain in full force and effect and enforceable.

          20.9 Force Majeure: Neither party hereto shall be responsible for any
               failure to perform its obligations under this Agreement (other
               than any payment obligations) if such failure is caused by acts
               of God, war, strikes, revolutions, lack or failure of
               transportation facilities, laws or governmental regulations or
               other causes which are beyond the reasonable control of such
               party. Obligations hereunder, however, shall in no event be
               executed but shall be suspended only until the cessation of any
               cause of such failure. In the event that such force majeure
               should obstruct performance of this Agreement for more than one
               (1) month, the parties hereto shall consult with each other to
               determine whether this Agreement should be modified or
               terminated. The party facing an event of force majeure shall use
               its best endeavors in order to remedy that sensation as well as
               to minimize its effects. A case of force majeure shall be
               notified to the other party by telex or telefax within five (5)
               days after its occurrence and shall be confirmed by a letter.

         20.10 Relationship of Parties: The parties hereto expressly understand
               and agree that Distributor is an independent contractor in the
               performance of each and every part of this Agreement, is solely
               responsible for all of its employees and agents  and its labor
               costs and expenses arising in connection therewith.

         20.11 Entire Agreement: This Agreement supersedes all proposals, oral
               or written, all negotiations, conversations, discussions or
               prior agreements between or among parties relating to the
               subject matter of this Agreement and all past dealing or
               industry custom.

         20.12 Counterparts: This Agreement may be executed in counterparts,
               each of which shall be deemed an original, but both of which
               together shall constitute one and the same instrument.

COMPANY:                                 DISTRIBUTOR:

By:  /s/ JOHN HSU                        By: /s/ SANCHO PARK
   -----------------------                  ------------------------
Date: Oct. 13, 2000                      Date: 10/23/2000

Name: John Hsu                           Name: Sancho Park

Title: President                         Title: Executive Director

                                       19
<PAGE>

                                  Attachment A

                          MINIMUM PURCHASE COMMITMENT

--------------------------------------------------------------------------------
      MINIMUM PURCHASE COMMITMENT                    PERIOD [Q/YR]
--------------------------------------------------------------------------------

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

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

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

                [PLEASE INSERT. NOT STATED IN ORIGINAL CONTRACT]

                                       20

<PAGE>

                                  Attachment B

                      DISCOUNTS AND NET LICENSING REVENUE

Products       The discounts for the Products shall be 45% off the Recommended
               Price for the relevant Product as set out in the Recommended
               Price List.

M&S Services   The discounts for the M&S Services shall be 35% off the
               Recommended Price for the relevant M&S Services as set out in
               the Recommended Price List.

                              FIXED EXCHANGE RATE

The fixed exchange rate for the purpose of Clause 9.1 of this Agreement shall be
1,050 won to 1 US dollar.

                                       21
<PAGE>
                                  Attachment C

                                    PRODUCTS

All Products produced or acquired by the Company as of the date of this
Agreement less those products to be distributed by third parties, which are
agreed upon between the Company and the Distributor.

                                       22
<PAGE>
                                  Attachment D

                                   TERRITORY

              The Territory includes the entire Republic of Korea

                                       23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]