Document:

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                                                                   EXHIBIT 10.62

                  SONY COMPUTER ENTERTAINMENT AMERICA INC.

                                       AND

                                   ATARI INC.

                               (PLAYSTATION LOGO)

                                 PLAYSTATION(R)2

                                 CD-ROM/DVD-ROM

                          LICENSED PUBLISHER AGREEMENT

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                                TABLE OF CONTENTS

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SECTION:                                                                   PAGE:
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   1.  DEFINITION OF TERMS                                                    1

   2.  LICENSE GRANT                                                          3

   3.  DEVELOPMENT OF LICENSED PRODUCTS                                       3

   4.  LIMITATIONS ON LICENSES; RESERVATION OF RIGHTS                         4

   5.  QUALITY STANDARDS FOR THE LICENSED PRODUCTS                            5

   6.  MANUFACTURE OF THE LICENSED PRODUCTS                                   7

   7.  MARKETING AND DISTRIBUTION                                            10

   8.  ROYALTIES                                                             12

   9.  REPRESENTATIONS AND WARRANTIES                                        15

   10. INDEMNITIES; LIMITED LIABILITY                                        16

   11. SCEA INTELLECTUAL PROPERTY RIGHTS                                     17

   12. INFRINGEMENT OF SCEA INTELLECTUAL PROPERTY RIGHTS BY THIRD PARTIES    18

   13. CONFIDENTIALITY                                                       18

   14. TERM AND TERMINATION                                                  20

   15. EFFECT OF EXPIRATION OR TERMINATION                                   22

   16. MISCELLANEOUS PROVISIONS                                              23
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                                PLAYSTATION(R) 2
                                 CD-ROM/DVD-ROM
                          LICENSED PUBLISHER AGREEMENT

This LICENSED PUBLISHER AGREEMENT (the "Agreement" or "LPA"), entered into as of
the 1st day of April, 2000 (the "Effective Date"), by and between SONY COMPUTER
ENTERTAINMENT AMERICA INC., with offices at 919 E. Hillsdale Boulevard, Foster
City, CA 94404 (hereinafter "SCEA"), and Atari Inc., with offices at 613 Tarman
Drive, Sunnyvale, CA 94089 (hereinafter Publisher").

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

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

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

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

1.  DEFINITION OF TERMS.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    1.27 "Product Software" means any software including audio and video
material developed by a Licensed Publisher or Licensed Developer, which, either
by itself or combined with Product Software of other licensees, when integrated
with software provided by SCEA or an Affiliate of SCEA, creates Executable
Software. It is understood that Product Software contains no proprietary
information of Sony or any other rights of SCEA.

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

    1.29 "Purchase Order" means a written purchase order processed in accordance
with the terms of Section 6.2.2 hereto, the Manufacturing Specifications or
other

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terms provided separately by SCEA or a Designated Manufacturing Facility to
Publisher.

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

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

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

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

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

    1.35 "SourceBook 2" means the PlayStation 2 SourceBook (or any other
reference guide containing information similar to the SourceBook 2 but
designated with a different name) prepared by SCEA, which is provided separately
to Publisher. The SourceBook 2 is designed to serve as the first point of
reference by Publisher in every phase of the development, approval, manufacture
and marketing of Licensed Products.

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

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

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

    1.39 "Wholesale Price" or "WSP" shall mean the greater of (i) the first
published price of the Licensed Product offered to retailers by Publisher as
evidenced by a sell sheet or price list issued by Publisher, or (ii) the actual
price paid by retailers upon the first commercial shipment of a Licensed Product
without offsets, rebates or deductions from invoices of any kind.

2.  LICENSE.

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

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

3.  DEVELOPMENT OF LICENSED PRODUCTS.

    3.1 RIGHT TO DEVELOP. This LPA grants Publisher the right to develop
Licensed Products. It also gives Publisher the right to purchase and/or license
Development Tools, as is appropriate, from SCEA or its designated agent,
pursuant to a separate Development System Agreement with SCEA, to assist in such
development. In developing Executable Software (or portions thereof),

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Publisher and its agents shall fully comply in all respects with any and all
technical specifications which may from time to time be issued by SCEA. In the
event that Publisher uses third party tools to develop Executable Software,
Publisher shall be responsible for ensuring that it has obtained appropriate
licenses for such use.

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

4.  LIMITATIONS ON LICENSES; RESERVATION OF RIGHTS.

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

    4.2 RESERVATION OF SCEA'S RIGHTS.

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

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

    4.3 RESERVATION OF PUBLISHER'S RIGHTS. Separate and apart from Sony
Materials and other rights licensed to Publisher by SCEA hereunder, as between
Publisher and SCEA, Publisher retains all rights, title and interest in and to
the Product Software, and the Product Proposals and Product Information related
thereto, including without limitation Publisher Intellectual Property Rights
therein, as

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

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

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

5.  QUALITY STANDARDS FOR THE LICENSED PRODUCTS.

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

    5.2 PRODUCT PROPOSALS.

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

        5.2.2 APPROVAL OF PRODUCT PROPOSAL. After SCEA's review of Publisher's
Product Proposal, Publisher will receive written notice from SCEA of the status
of the Product Proposal, which may range from "Approved" to "Not Approved." Such
conditions shall have the meanings ascribed to them in the SourceBook 2, and may
be changed from time to time by SCEA. If a Product Proposal is "Not Approved",
then neither Publisher nor any other Licensed Developer or Licensed Publisher
may re-submit such Product Proposal without significant, substantive revisions.
SCEA shall have no obligation to approve any Product Proposal submitted by
Publisher. Any development conducted by or at the direction of Publisher and any
legal commitment relating to development work shall be at Publisher's own
financial and commercial risk. Publisher shall not construe approval of a
Product Proposal as a commitment by SCEA to grant final approval to such
Licensed Product. Nothing herein shall restrict SCEA from commercially
exploiting any coincidentally similar concept(s) and/or product(s), which have
been independently developed by SCEA, an Affiliate of SCEA or any third party.

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

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notify SCEA of such change and must re-submit such Licensed Product to SCEA for
approval in accordance with the provisions of Section 5.2.1 above.

    5.3 WORK-IN-PROGRESS.

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

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

        5.3.3 CANCELLATION OR DELAY; CONDITIONS OF APPROVAL. Licensed Products
which are canceled by Publisher or are late in meeting the final Executable
Software delivery date by more than three (3) months (without agreeing with SCEA
on a modified final delivery date) shall be subject to the termination
provisions set forth in Section 14.3 hereto. In addition, failure to make
changes required by SCEA to the Licensed Product at any stage of the Review
Process, or making material changes to the Licensed Product without SCEA's
approval, may subject Publisher to the termination provisions set forth in
Section 14.3 hereto.

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

    5.5 PRINTED MATERIALS.

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

        5.5.2 SUBMISSION AND APPROVAL OF PRINTED MATERIALS. No later than
submission of final Executable Software for a proposed Licensed Product,
Publisher shall also deliver to SCEA, for review and evaluation, the proposed
final Printed Materials and a form of limited warranty for the proposed Licensed
Product. Failure to meet any scheduled release dates for a Licensed Product is
solely the risk and responsibility of Publisher, and SCEA assumes no
responsibility for Publisher failing to meet such scheduled release dates due to
this submission process. The quality of such Printed Materials shall be of the
same quality as that associated with other commercially available high quality
software products. If any of the Printed Materials are disapproved, SCEA shall
specify the reasons for such disapproval and state what corrections are
necessary. SCEA shall have no liability to Publisher for costs incurred or
irrevocably committed to by Publisher for production of Printed Materials that
are disapproved by SCEA. After making the necessary corrections to any
disapproved Printed Materials, Publisher must submit new Printed Materials for
approval by SCEA. SCEA shall not

                                       6                            CONFIDENTIAL
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unreasonably withhold or delay its review of Printed Materials.

    5.6 ADVERTISING MATERIALS.

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

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

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

    5.7 RATING REQUIREMENTS. If required by SCEA or any governmental entity,
Publisher shall submit each Licensed Product to a consumer advisory ratings
system designated by SCEA and/or such governmental entity for the purpose of
obtaining rating code(s) for each Licensed Product. Any and all costs and
expenses incurred in connection with obtaining such rating code(s) shall be
borne solely by Publisher. Any required consumer advisory rating code(s)
procured hereby shall be displayed on the Licensed Product and in the associated
Printed Materials and Advertising Materials, at Publisher's cost and expense, in
accordance with the SourceBook 2 or other documentation provided by SCEA to
Publisher.

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

6.  MANUFACTURE OF THE LICENSED PRODUCTS.

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

        6.1.1 MANUFACTURE OF PLAYSTATION 2 FORMAT DISCS.

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

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

        6.1.2 MANUFACTURE OF PRINTED MATERIALS.

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

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

        6.1.3 MANUFACTURE OF PACKAGING.

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

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

        6.1.4 ASSEMBLY SERVICES. Publisher may either procure assembly services
from a Designated Manufacturing Facility or from an alternate source. If
Publisher elects to be responsible for assembling the Licensed Products, then
the Designated Manufacturing Facility shall ship the component parts of the
Licensed

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

    6.2 PRICE, PAYMENT AND TERMS.

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

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

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

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

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

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

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

7.  MARKETING AND DISTRIBUTION.

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

    7.2 SAMPLES. Publisher shall provide to SCEA, at no additional cost, for
SCEA's internal use, [*] sample copies of each Licensed Product. Publisher shall
pay any manufacturing costs to the Designated Manufacturing Facility in
accordance with Section 6.2, but shall not be obligated to pay royalties, in
connection with such sample
-----------
[*]  Information has been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment pursuant to
Rule 406 under the Securities Act of 1933, as amended.

                                       9                            CONFIDENTIAL
<PAGE>

Units. In the event that Publisher assembles any Licensed Product using an
alternate source, Publisher shall be responsible for shipping such sample Units
to SCEA at Publisher's cost and expense. SCEA shall not directly or indirectly
resell any such sample copies of the Licensed Products without Publisher's prior
written consent. SCEA may give sample copies to its employees, provided that it
uses its reasonable efforts to ensure that such copies are not sold into the
retail market. In addition, subject to availability, Publisher shall sell to
SCEA additional quantities of Licensed Products at the Wholesale Price for such
Licensed Product. Any changes to SCEA's policy regarding sample Units shall be
set forth in the SourceBook 2.

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

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

        7.4.1 SCEA DEMO DISCS.

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

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

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

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

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

        7.4.2 THIRD PARTY DEMO DISCS.

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

            7.4.2.2 SUBMISSION AND APPROVAL OF THIRD PARTY DEMO DISCS. Publisher
shall deliver to SCEA, for SCEA's prior approval, a final version of each Third
Party Demo Disc in a format prescribed by SCEA. Such Third Party Demo Disc shall
comply with all requirements provided to Publisher by SCEA in the SourceBook 2
or otherwise. In addition, SCEA shall evaluate the Third Party Demo Disc in
accordance with the approval provisions for Executable Software and Printed
Materials set forth in Sections 5.4 and 5.5, respectively. Furthermore,
Publisher shall obtain the approval of SCEA in connection with any Advertising
Materials relating to the Third Party Demo Discs in accordance with the approval
provisions set forth in Section 5.6. Costs associated with Third Party Demo
Discs shall be borne solely by Publisher. No approval by SCEA of any element of
any Third Party Demo Disc shall be deemed an approval of any other element
thereto, nor does any such approval constitute final approval for the related
Licensed Product. Unless otherwise permitted by SCEA, Publisher shall clearly
and conspicuously state on all Third Party Demo Disc Packaging and Printed
Materials that the Third Party Demo Disc is for promotional purposes only and
not for resale.

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

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

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

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

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

                                       11                           CONFIDENTIAL
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sweepstakes, or the prizes being awarded to winners of the contest or
sweepstakes; and

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

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

    7.6 PLAYSTATION WEBSITE. All Licensed Publishers shall be required to
provide Product Information for a web page for each of its Licensed Products for
display on the PlayStation promotional website, or other website or websites as
may be operated by SCEA from time to time in connection with the promotion of
the PlayStation brand. Specifications for Product Information for such web pages
shall be as provided in the SourceBook 2. Publisher shall provide SCEA with such
Product Information for each Licensed Product upon submission of Printed
Materials to SCEA for approval in accordance with Section 5.5.2 hereto.
Publisher shall also provide updates to such web page in a timely manner as
required by SCEA in updates to the SourceBook 2.

    7.7 DISTRIBUTION.

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

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

8.  ROYALTIES.

    8.1 APPLICABLE ROYALTIES ON LICENSED PRODUCTS.

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

<TABLE>
<CAPTION>
         Wholesale Price    Per Title Royalty
         ---------------    -----------------
<S>      <C>                <C>

[*]      $[*] to $[*]       $[*]

[*]      $[*] to $[*]       $[*]

[*]      $[*] to $[*]       $[*]

[*]      $[*] to $[*]       $[*]

[*]      $[*] +             [*] % of WSP + $[*]
</TABLE>

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

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

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

    8.3 PAYMENT. Payment of royalties under Sections 8.1 and 8.2 shall be made
to SCEA through its Designated Manufacturing Facility concurrent with the
placement of an order to manufacture Licensed Product and payment of
manufacturing costs in accordance with the terms and conditions set forth in
Sections 6.2.3, unless otherwise agreed in writing with SCEA. At the time of
placing an order to manufacture a Licensed Product, Publisher shall submit to
SCEA an accurate accounting statement setting out the number of units of
Licensed Product to be manufactured, projected initial wholesale price,
applicable royalty, and total amount due SCEA. In addition, Publisher shall
submit to SCEA prior to placing the initial order for each Licensed Product a
separate certification, in
-----------
[*]  Information has been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment pursuant to
Rule 406 under the Securities Act of 1933, as amended.

                                       12                           CONFIDENTIAL
<PAGE>
the form provided by SCEA in the SourceBook 2, signed by officers of Publisher
that certifies that the Wholesale Price provided to SCEA is accurate and
attaching such documentation supporting the WSP as requested by SCEA. Payment
shall be made prior to manufacture unless SCEA has agreed to extend credit terms
to Publisher in writing pursuant to Section 6.2.3.3. Nothing herein shall be
construed as requiring SCEA to extend credit terms to Publisher. The accounting
statement due hereunder shall be subject to the audit and accounting provisions
set forth in paragraph 16.2 below. No costs incurred in the development,
manufacture, marketing, sale and/or distribution of the Licensed Products shall
be deducted from any royalties payable to SCEA hereunder. Similarly, there shall
be no deduction from the royalties otherwise owed to SCEA hereunder as a result
of any uncollectible accounts owed to Publisher, or for any credits, discounts,
allowances or returns which Publisher may credit or otherwise grant to any third
party customer of any Units of the Licensed Products, or for any taxes, fees,
assessments or expenses of any kind which may be incurred by Publisher in
connection with its sale or distribution of any Units of the Licensed Products
or arising with respect to the payment of royalties hereunder. In addition to
the royalty payments provided to SCEA hereunder, Publisher shall be solely
responsible for and bear any cost relating to any withholding taxes or other
such assessments which may be imposed by any governmental authority with respect
to the royalties paid to SCEA hereunder; provided, however, that SCEA shall not
manufacture Licensed Products outside of the United States without the prior
consent of Publisher. Publisher shall provide SCEA with official tax receipts or
other such documentary evidence issued by the applicable tax authorities
sufficient to substantiate that any such taxes or assessments have in fact been
paid.

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

<TABLE>
<CAPTION>
Units Ordered   Standard   Level 1   Level 2
-------------   --------   -------   -------
<S>             <C>        <C>       <C>
[*] - [*]       [*]        [*]       [*]
[*] - [*]       [*]        [*]       [*]
[*] - [*]       [*]        [*]       [*]
[*] - [*]       [*]        [*]       [*]
[*] - [*]       [*]        [*]       [*]
[*] - [*]       [*]        [*]       [*]
[*] - [*]       [*]        [*]       [*]
</TABLE>

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

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

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

    (ii) Any Licensed Products, including "Greatest Hits" titles and products
for the original PlayStation game console, but excluding all demo discs, shall
count toward the [*] Unit threshold (provided they meet the conditions set forth
in Section 8.4.2(i) above). For purposes of determining Level 1 Rebate
thresholds and the conditions set forth in Section 8.4.2(i), full priced
Licensed Products and "Greatest Hits" Licensed Products shall be considered
separate Licensed Products, with separate Unit minimums and release dates.

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

    (iv) Publisher must re-qualify for the Level 1 Rebate Program each Fiscal
Year. If a Publisher fails to requalify for any Fiscal Year, then the Standard
Rebate shall apply in such Fiscal Year. The first Fiscal Year for which a
Publisher may qualify for the Level 1 Rebate shall be the Fiscal Year ending
March 31, 2000, and if the Publisher qualifies for the Level 1 Rebate, it will
apply to Licensed
-----------
[*]  Information has been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment pursuant to
Rule 406 under the Securities Act of 1933, as amended.

                                       13                           CONFIDENTIAL
<PAGE>

Products ordered in the Fiscal Year commencing April 1, 2000.

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

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

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

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

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

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

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

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

    8.6 REBATE CREDITS. Subject to Sections 8.4.2(v) and 8.4.3(v), all rebate
programs are [*], such that Publisher receives a credit for each rebate
percentage against [*] Units when it reaches the Unit threshold for the next
rebate percentage. SCEA shall credit Publisher's account with respect to [*]
rebates as follows: (A) if Publisher's initial order for a Licensed Product is
less than any rebate threshold provided above, then SCEA shall [*] credit
Publisher's account sixty (60) days following the date that Publisher notifies
SCEA that orders of a Licensed Product exceed any rebate threshold, subject to
SCEA's right to confirm such information; and (B) if Publisher's initial order
for a Licensed Product reaches or exceeds any rebate threshold provided above,
then Publisher may credit the rebate amount set forth above as a separate line
item on
-----------
[*]  Information has been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment pursuant to
Rule 406 under the Securities Act of 1933, as amended.

                                       14                           CONFIDENTIAL
<PAGE>
the Purchase Order with respect to such Licensed Product, subject to SCEA's
confirmation right.

9.  REPRESENTATIONS AND WARRANTIES.

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

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

    (i) There is no threatened or pending action, suit, claim or proceeding
alleging that the use by Publisher of all or any part of the Product Software,
Product Proposals, Product Information, Printed Materials, Advertising Materials
or any underlying work or content embodied therein, or any name, designation or
trademark used in conjunction with the Licensed Products infringes or otherwise
violates any Intellectual Property Right or other right or interest of any kind
whatsoever of any third party, or otherwise contesting any right, title or
interest of Publisher in or to the Product Software, Product Proposals, Product
Information, Printed Materials, Advertising Materials or any underlying work or
content embodied therein, or any name, designation or trademark used in
conjunction with the Licensed Products;

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

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

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

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

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

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

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

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

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

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

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

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

10. INDEMNITIES; LIMITED LIABILITY.

                                       15                           CONFIDENTIAL
<PAGE>
    10.1 INDEMNIFICATION BY SCEA. SCEA shall indemnify and hold Publisher
harmless from and against any and all third party claims, losses, liabilities,
damages, expenses and costs, including, without limitation, reasonable fees for
attorneys, expert witnesses and litigation costs, and including costs incurred
in the settlement or avoidance of any such claim which result from or are in
connection with a breach of any of the representations or warranties provided by
SCEA herein; provided, however, that Publisher shall give prompt written notice
to SCEA of the assertion of any such claim, and provided, further, that SCEA
shall have the right to select counsel and control the defense and settlement
thereof. SCEA shall have the exclusive right, at its discretion, to commence and
prosecute at its own expense any lawsuit or to take such other action with
respect to such matters as shall be deemed appropriate by SCEA. Publisher shall
provide SCEA, at no expense to Publisher, reasonable assistance and cooperation
concerning any such matter; and Publisher shall not agree to the settlement of
any such claim, action or proceeding without SCEA's prior written consent.

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

10.3 LIMITATION OF LIABILITY.

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

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

                                       16                           CONFIDENTIAL
<PAGE>

LIMITATIONS SHALL NOT APPLY TO AMOUNTS WHICH PUBLISHER MAY BE REQUIRED TO PAY TO
THIRD PARTIES UNDER SECTIONS 10.2 OR 16.10.

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

11. SCEA INTELLECTUAL PROPERTY RIGHTS.

   11.1 LICENSED TRADEMARKS. The Licensed Trademarks and the goodwill associated
therewith are and shall be the exclusive property of SCEA or Affiliates of SCEA.
Nothing herein shall give Publisher any right, title or interest in or to any of
the Licensed Trademarks or any other trademarks of SCEA, other than the
non-exclusive license provided herein. Publisher shall not do or cause to be
done any act or thing in any way impairing or tending to impair or dilute any of
SCEA's rights, title or interests in or to any of the Licensed Trademarks or any
other trademarks of SCEA, nor shall Publisher register any trademark in its own
name or in the name of any other person or entity, or obtain rights to employ
Internet domain names or addresses, which are similar to or are likely to be
confused with any of the Licensed Trademarks or any other trademarks of SCEA.

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

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

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

13. CONFIDENTIALITY.

    13.1 SCEA'S CONFIDENTIAL INFORMATION.

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

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

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

                                       17                           CONFIDENTIAL
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       18                           CONFIDENTIAL
<PAGE>

        13.1.6 PUBLISHER'S OBLIGATIONS UPON UNAUTHORIZED DISCLOSURE. If at any
time Publisher becomes aware of any unauthorized duplication, access, use,
possession or knowledge of any SCEA's Confidential Information, it shall notify
SCEA as soon as reasonably practicable, and shall promptly act to recover any
such information and prevent further breach of the confidentiality obligations
herein. Publisher shall provide any and all reasonable assistance to SCEA to
protect SCEA's proprietary rights in any of SCEA's Confidential Information that
it or its employees or permitted subcontractors may have directly or indirectly
disclosed or made available, and that may be duplicated, accessed, used,
possessed or known in a manner or for a purpose not expressly authorized by this
Agreement, including but not limited to enforcement of confidentiality
agreements, commencement and prosecution in good faith (alone or with the
disclosing party) of legal action, and reimbursement for all reasonable
attorneys' fees, costs and expenses incurred by SCEA to protect its proprietary
rights in SCEA's Confidential Information. Publisher shall take all steps
requested by SCEA to prevent the recurrence of any unauthorized duplication,
access, use, possession or knowledge of SCEA's Confidential Information. In
addition, SCEA shall have the right to pursue any actions at law or in equity,
including without limitation the remedies set forth in Section 16.10 hereto.

    13.2 PUBLISHER'S CONFIDENTIAL INFORMATION.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       19                           CONFIDENTIAL
<PAGE>

the opportunity to seek any other legal remedies to maintain such Publisher's
Confidential Information in confidence as herein provided; or

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

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

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

    (i) to legal counsel;

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

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

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

14. TERM AND TERMINATION.

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

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

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

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

    (iii) If during the term of this Agreement, a controlling interest in
Publisher or in an entity which directly or indirectly has a controlling
interest in Publisher is transferred to a party that (A) is in breach of any
agreement with SCEA or an Affiliate of SCEA; (B) directly or indirectly holds or
acquires a controlling interest in a third party which develops any interactive
device or product which is directly or indirectly competitive with the System;
or (C) is in litigation with SCEA or Affiliates of SCEA concerning any
proprietary technology, trade secrets or other SCEA Intellectual Property Rights
or SCEA's Confidential Information. As used in this Section 14.2, "controlling
interest" means, with respect to any form of entity, sufficient power to control
the decisions of such entity.

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

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

    14.3 PRODUCT-BY-PRODUCT TERMINATION BY SCEA. In addition to the events of
termination described in Section 14.2, above, SCEA, at its option, shall be
entitled to terminate, on a product-by-product basis, the licenses and related
rights herein granted to Publisher in the event that (a) Publisher fails to
notify SCEA promptly in writing of any material change to any materials
previously

                                       20                           CONFIDENTIAL
<PAGE>
approved by SCEA in accordance with Section 5 or Section 6.1 hereto, and such
breach is not corrected or cured within thirty (30) days after receipt of
written notice of such breach; (b) Publisher uses a third party that fails to
comply with the requirements of Section 3 in connection with the development of
any Licensed Product; (c) any third party with whom Publisher has contracted for
the development of Executable Software breaches any of its material obligations
to SCEA pursuant to such third party's agreement with SCEA with respect to such
Licensed Product; or (d) Publisher cancels a Licensed Product or fails to
provide SCEA in accordance with the provisions of Section 5 above, with the
final version of the Executable Software for any Licensed Product within three
(3) months of the scheduled release date according to the Product Proposal
(unless a modified final delivery date has been agreed to by the parties), or
fails to provide work in progress to SCEA in strict accordance with the Review
Process in Section 5.3.

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

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

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

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

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

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

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

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

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

15. EFFECT OF EXPIRATION OR TERMINATION.

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

    15.2 REVERSION OF RIGHTS. Upon expiration or termination and subject to
Section 15.3 below, the licenses and related rights herein granted to Publisher
shall immediately revert to SCEA, and Publisher shall cease from any further use
of SCEA's Confidential Information, Licensed Trademarks and Sony Materials and
any SCEA Intellectual Property Rights therein, and, subject to the provisions of
Section 15.3 below, Publisher shall have no further right to continue the
development, publication, manufacture, marketing, sale or distribution of any
Units of the Licensed Products, or to continue to use any Licensed Trademarks;
provided, however, that for a period of one year after termination, and subject
to all the terms of Section 13, and provided this Agreement is not terminated
due to a breach or default of Publisher, Publisher may retain such portions of
Sony Materials and SCEA's Confidential Information as SCEA in its sole
discretion agrees are required to support end users of Licensed Products but
must return these materials at the end of such one year period. Upon expiration
or termination, the licenses and related rights herein granted to SCEA by
Publisher shall immediately revert to Publisher, and SCEA shall cease from any
further use of Product Information and any Publisher Intellectual Property
Rights therein; provided that SCEA may continue the manufacture, marketing, sale
or distribution of any SCEA Demo Discs containing Publisher's Product
Information which Publisher had approved prior to termination.
-----------
[*]  Information has been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment pursuant to
Rule 406 under the Securities Act of 1933, as amended.

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

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

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

16. MISCELLANEOUS PROVISIONS.

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

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

    16.3 FORCE MAJEURE. Neither SCEA nor Publisher shall be liable for any loss
or damage or be deemed to be in breach of this Agreement if its failure to
perform or failure to cure any of its obligations under this Agreement results
from any event or circumstance beyond its reasonable
-----------
[*]  Information has been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment pursuant to
Rule 406 under the Securities Act of 1933, as amended.

                                       22                           CONFIDENTIAL

<PAGE>

control, including, without limitation, any natural disaster, fire, flood,
earthquake or other Act of God; shortage of equipment, materials, supplies or
transportation facilities; strike or other industrial dispute; war or rebellion;
shutdown or delay in power, telephone or other essential service due to the
failure of computer or communications equipment or otherwise; provided, however,
that the party interfered with gives the other party written notice thereof
promptly, and, in any event, within fifteen (15) business days of discovery of
any such Force Majeure condition. If notice of the existence of any Force
Majeure condition is provided within such period, the time for performance or
cure shall be extended for a period equal to the duration of the Force Majeure
event or circumstance described in such notice, except that any such cause shall
not excuse the payment of any sums owed to SCEA prior to, during or after any
such Force Majeure condition. In the event that the Force Majeure condition
continues for more than sixty (60) days, SCEA may terminate this Agreement for
cause by providing written notice to Publisher to such effect.

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

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

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

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

    16.8 GOVERNING LAW; CONSENT TO JURISDICTION. This Agreement shall be
governed by and interpreted in accordance with the laws of the State of
California, excluding that body of law related to choice of laws, and of the
United States of America. Any action or proceeding brought to enforce the terms
of this Agreement or to adjudicate any dispute arising hereunder shall be
brought in the Superior Court of the County of San Mateo, State of California or
the United States District Court for the Northern District of California. Each
of the parties hereby submits itself to the exclusive jurisdiction and venue of
such courts for purposes of any such action and agrees that

                                       23                           CONFIDENTIAL
<PAGE>

any service of process may be effected by delivery of the summons in the manner
provided in the delivery of notices set forth in Section 16.1 above. In
addition, each party hereby waives the right to a jury trial in any action or
proceeding related to this Agreement.

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

    16.10 REMEDIES. Unless expressly set forth to the contrary, either party's
election of any remedies provided for in this Agreement shall not be exclusive
of any other remedies, and all such remedies shall be deemed to be cumulative.
Any breach of Sections 3, 4, 5, 6.1, 11 and 13 of this Agreement would cause
significant and irreparable harm to SCEA, the extent of which would be difficult
to ascertain. Accordingly, in addition to any other remedies including without
limitation equitable relief to which SCEA may be entitled, in the event of a
breach by Publisher or any of its employees or permitted subcontractors of any
such Sections of this Agreement, SCEA shall be entitled to the immediate
issuance without bond of ex parte injunctive relief or, if a bond is required
under applicable law, on the posting of a bond in an amount not to exceed [*],
enjoining any breach or threatened breach of any or all of such provisions. In
addition, if Publisher fails to comply with any of its obligations as set forth
herein, SCEA shall be entitled to an accounting and repayment of all forms of
compensation, commissions, remuneration or benefits which Publisher directly or
indirectly realizes as a result of or arising in connection with any such
failure to comply. Such remedy shall be in addition to and not in limitation of
any injunctive relief or other remedies to which SCEA may be entitled under this
Agreement or otherwise at law or in equity. In addition, Publisher shall
indemnify SCEA for all losses, damages, liabilities, costs and expenses
(including reasonable attorneys' fees and all reasonable related costs) which
SCEA may sustain or incur as a result of any breach under this Agreement.

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

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

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

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

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

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

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

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

                                       24                           CONFIDENTIAL
<PAGE>

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

SONY COMPUTER ENTERTAINMENT AMERICA       INFOGRAMES NORTH AMERICA INC.
INC.

By: /S/ Kaz Hirai                         By: /S/ Yves Blehant
   ---------------------------------         ---------------------------------

Print Name: Kaz Hirai                     Print Name: Yves Blehant
            ------------------------                  ------------------------

Title: President and COO                  Title: Senior Vice President
      ------------------------------            ------------------------------

Date: 6/6/00                             Date: 6/01/00
     -------------------------------           -------------------------------

NOT AN AGREEMENT UNTIL
EXECUTED BY BOTH PARTIES

                                       25                           CONFIDENTIAL<PAGE>

                                                                  Exhibit 10.63

                                                     Xbox PLA Contract No. 20108

"[*]" denotes confidential information omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment under Rule 406 under the Securities Act of 1933, as amended.

                             MICROSOFT CORPORATION
                      XBOX(TM) PUBLISHER LICENSE AGREEMENT

This License Agreement (the "Agreement") is entered into and effective as of
_______________, 2000 (the "Effective Date") by and between MICROSOFT
CORPORATION, a Washington corporation ("Microsoft"), and INFOGRAMES
("Licensee").

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

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

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

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

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

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

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

      1.4   "COMMERCIAL RELEASE" shall mean (a) with respect to Xbox, the first
distribution of an Xbox to the public for payment, and (b) with respect to a
Software Title, the earlier of the first distribution of the Software Title for
payment or distribution of Finished Product Units that are not designated as
beta or prerelease versions.
<PAGE>
                                                     Xbox PLA Contract No. 20108

      1.5   "DEMO VERSIONS" will mean a Finished Product Unit that (i) contains
a small portion of the applicable Software Title, (ii) is provided to end users
only to advertise or promote the applicable Software Title (although it may
include demonstration versions of other games for Xbox published by Licensee),
(iii) is manufactured in a number of units that has been approved in advance by
Microsoft, and (iv) is distributed free or with a suggested retail price of not
more than [*].

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

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

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

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

      1.10  "TERRITORY" shall be determined on a Software Title-by-Software
Title basis, and shall mean such countries as may be specified in writing by
Microsoft when the concept of the applicable Software Title is approved pursuant
to Section 2.1.1 below.

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

2.    DEVELOPMENT; DELIVERY; APPROVAL

      2.1   SOFTWARE TITLE DEVELOPMENT. Licensee's development activities with
respect to each Software Title shall be in accordance with the applicable
Exhibit A-n. Subject to the foregoing, Licensee shall use commercially
reasonable efforts to develop the Software Title in accordance with the
development and commercial release schedule set forth therein. Furthermore,
Licensee agrees to be bound by all provisions contained in the then-applicable
version of the "Xbox Guide", the current version of which Microsoft or its
affiliate will deliver to Licensee when it is completed, after the execution of
this Agreement. Licensee understands and agrees that Microsoft may, in its
discretion, supplement, revise and update the Xbox Guide from time to time and
that upon Licensee's receipt of the applicable supplement, revision or updated
version, Licensee automatically shall be bound by all provisions of the
then-current

----------
[*] Information has been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment pursuant to
Rule 406 under the Securities Act of 1933, as amended.

                                     - 2 -
<PAGE>
                                                     Xbox PLA Contract No. 20108

Xbox Guide; Microsoft will specify in each such supplement, revision or updated
version a reasonable effective date of each change if such change or revision is
not required to be effective immediately. If Licensee proceeds with the
development of a Software Title, Licensee shall deliver each milestone (as
described in this Section 2.1) to Microsoft for approval in writing. All
certification and playtesting (and applicable fees therefor, if any) will be in
accordance with the then-applicable version of the Xbox Guide. If Microsoft does
not approve Licensee's submission for a given milestone then Licensee shall
correct the problems that contributed to the lack of approval (which problems
shall be identified in reasonable detail by Microsoft) provided that if Licensee
fails to correct such problems within a reasonable period of time, then Licensee
shall immediately cease all development activities for the applicable Software
Title's subsequent milestones. Each successive milestone shall comply in all
material respects with the characteristics of previously approved milestones.
Each software milestone shall be delivered in compiled object code form.
Microsoft shall review and approve (or reject) all required submissions within
the applicable time frames set forth in the Xbox Guide; provided that if
Microsoft reasonably determines that any particular review may require a longer
time frame than as set forth in the Xbox Guide, it shall promptly notify
Licensee.

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

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

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

            2.1.4 FINAL RELEASE VERSION. Licensee shall deliver to Microsoft,
Licensee's proposed final release version of the applicable Software Title that
is complete and ready for manufacture and commercial distribution, with the
final content rating certification, with identified program errors corrected,
and with any and all changes previously requested by Microsoft implemented.
However, nothing herein will be deemed to relieve Licensee of its obligation to
correct program bugs and errors, whenever discovered (including without
limitation after Commercial Release), and Licensee agrees to correct such bugs
and errors as soon as possible after discovery (provided that, with respect to
bugs or errors discovered after Commercial Release of the applicable Software
Title, Licensee will use commercially reasonable efforts to correct the
bug/error in all Finished Product Units manufactured after discovery). In
addition, Licensee will comply with all certification procedures, guidelines and
standards

                                     - 3 -
<PAGE>
                                                     Xbox PLA Contract No. 20108

set forth in the then-applicable version of the Xbox Guide. Licensee shall not
distribute the Software Title, nor manufacture any Finished Product Units
intended for distribution, unless and until Microsoft shall have given its final
certification and approval of the final release version of the Software Title,
and Microsoft shall have provided the code for the final release version to the
applicable Authorized Replicator(s).

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

            2.1.6 ART & MARKETING MATERIALS. Licensee shall deliver to Microsoft
for approval all Art & Marketing Materials as and when developed, whether during
development activities or thereafter. Licensee shall not distribute any specific
Art & Marketing Materials unless and until Microsoft shall have given its final
certification and approval of the specific item.

            2.1.7 DEMO VERSIONS. Unless separately addressed in the Xbox Guide,
all rights, obligations and approvals set forth in this Agreement as applying to
Software Titles shall equally apply to its Demo Version. Demo Versions may not
be distributed by Licensee until approved by Microsoft.

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

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

                                     - 4 -
<PAGE>
                                                     Xbox PLA Contract No. 20108

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

      2.5   CHANGES OF REQUIREMENTS BY MICROSOFT. Unless otherwise reasonably
specified by Microsoft at the respective time: (a) after approval by Microsoft
of the Beta Version of a Software Title, Licensee will not be obligated to
comply, with respect to such Software Title only, with any subsequent changes
made by Microsoft to the technical or content requirements for Software Titles
generally in the Xbox Guide; and (b) subject to the immediately preceding clause
(a), any changes made by Microsoft in Branding Specifications or other
requirements after final certification of a Software Title by Microsoft will be
effective as to such Software Title only on a "going forward" basis (i.e., only
to such Art & Marketing Materials and/or Finished Product Units as are
manufactured after Microsoft notifies Licensee of the change), unless (i) the
change can be accommodated by Licensee with insignificant added expense, or (ii)
Microsoft pays for Licensee's direct, out-of-pocket expenses necessarily
incurred as a result of its retrospective compliance with the change. In the
event Microsoft changes the technical or content requirements for Software
Titles, and such changes would apply to a Licensee Software Title the Beta
Version of which has not yet been approved by Microsoft and would significantly
negatively impact the continued development of the Software Title (e.g.,
requiring Licensee to incur significant additional costs or setbacks/delays in
target release date) then Microsoft shall consider in good faith either waiving
the new requirement as to such Software Title, or modifying the requirement or
its implementation by Licensee so as to minimize the negative impact of the
change.

3.    RIGHTS AND RESTRICTIONS

      3.1   TRADEMARKS.

            3.1.1 LICENSE. In each Software Title, and on each Finished Product
Unit (and the packaging therefor), Licensee shall incorporate the Licensed
Trademarks and include credit and acknowledgement to Microsoft as set forth in
the Branding Specifications and the Xbox Guide. Microsoft grants to Licensee a
non-exclusive, non-transferable, personal license to use the Licensed
Trademarks, according to the Branding Specifications and other conditions
herein, and solely in connection with marketing, sale, and distribution in the
Territory of Finished Product Units that meet the Certification Requirements.

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

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

                                     - 5 -
<PAGE>
                                                     Xbox PLA Contract No. 20108

            3.1.4 CERTIFICATION REQUIREMENTS. Licensee may use the Licensed
Trademarks only in connection with the copies of the Software Title that meet
the Certification Requirements. Licensee shall test the Software Title and
Finished Product Units for conformance with the Certification Requirements
according to generally accepted and best industry practices, and shall keep
written or electronic records of such testing during the term of this Agreement
and for no less than two (2) years thereafter ("Test Records"). Upon Microsoft's
request, Licensee shall provide Microsoft with copies of or reasonable access to
inspect the Test Records, Finished Product Units and Software Title (either in
pre-release or commercial release versions, as Microsoft may request). Upon
notice or other discovery of any non-conformance with the Certification
Requirements, Licensee shall promptly remedy such non-conformance in all
Finished Product Units wherever in the chain of distribution (subject to
Sections 2.1.4 and 2.5 above), and shall notify Microsoft of the non-conformance
and remedial steps taken.

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

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

            3.1.7 NO BUNDLING WITH UNAPPROVED PERIPHERALS, PRODUCTS OR SOFTWARE.
Licensee shall not market or distribute any Finished Product Unit bundled with a
peripheral product, software or other products that have not been licensed or
otherwise approved by Microsoft, nor shall Licensee knowingly permit or assist
any third party in such bundling, without Microsoft's prior written consent.
Nothing herein shall prevent Licensee from marketing or distributing Finished
Product Units packaged or otherwise combined with related non-software
merchandise (e.g., related comic books or action figures based on characters in
the Software Title).

      3.2   EULA. Licensee shall distribute (directly or indirectly) the
Software Title to end users subject to an end user license agreement ("EULA") in
a form to be approved by Microsoft prior to any distribution of the Software
Title; provided that, in any event, Licensee's EULA for the Software Title shall
(a) name Microsoft as a third party beneficiary, with the right to enforce the
agreement, (b) grant the end user the right to use the Software Title on only
one Xbox console at a time, and (c) forbid the end user from reverse engineering
or decompiling the Software Title or Xbox. Microsoft will have the right to
modify its requirements for the EULA at any time, in its discretion, and
Licensee shall implement, at its sole cost, all such new requirements as soon as
reasonably possible after receiving written notice from Microsoft of such
required modifications.

      3.3   NO ELECTRONIC TRANSMISSION; NO ONLINE ACTIVITIES. Licensee shall
distribute the Software Title only as embodied in Finished Product Units;
specifically, but without limitation, Licensee shall not distribute the Software
Title by any means of electronic transmission without the prior written approval
of Microsoft, which Microsoft may grant or withhold in its discretion.
Furthermore, Licensee will not authorize or permit any online activities
involving the Software Title, including without

                                     - 6 -
<PAGE>
                                                     Xbox PLA Contract No. 20108

limitation multiplayer, peer-to-peer and/or online play, without the prior
written approval of Microsoft, which Microsoft may grant or withhold in its
discretion. This Section 3.3 shall not preclude Licensee from taking and filling
orders for Finished Product Units over the Internet, not engaging in online
marketing activities, subject to Microsoft's approval rights of Art & Marketing
Materials set forth elsewhere in this Agreement.

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

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

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

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

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

4.    MANUFACTURING

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

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

            4.2.1 Microsoft, and not Licensee, will provide to the single
applicable Authorized Replicator the final release version of the Software Title
and all specifications required by Microsoft for the manufacture of the Finished
Product Units (including without limitation the Security Technology (as

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                                                     Xbox PLA Contract No. 20108

defined in Section 4.4 below); Licensee will be responsible for preparing and
delivering to the Authorized Replicator all other items required for
manufacturing Finished Product Units; and Licensee agrees that all Finished
Product Units must be replicated in conformity with all of the quality standards
and manufacturing specifications, policies and procedures that Microsoft
requires of its Authorized Replicators, and that all so-called "adders" must be
approved by Microsoft prior to packaging (in accordance with Section 2.1.6
above);

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

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

            4.2.4 Microsoft shall not be responsible for ensuring that all
Finished Product Units are free of all defects;

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

            4.2.6 Subject to the approval of Licensee which shall not be
unreasonably withheld, Microsoft will have the right to have included in the
packaging of Finished Product Units such marketing materials for Xbox and/or
other Xbox products or services (other than third-party software title marketing
materials) as Microsoft may determine in its reasonable discretion. Microsoft
will be responsible for delivering to the Authorized Replicator all such
marketing materials as it desires to include with Finished Product Units, and
any incremental insertion costs relating to such marketing materials will be
borne by Microsoft;

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

            4.2.8 Prior to placing an order with a replicator/manufacturer for
Finished Product Units, Licensee shall confirm with Microsoft that such entity
is an Authorized Replicator; Microsoft will endeavor to keep an up-to-date list
of Authorized Replicators in the Xbox Guide. Licensee will not place any order
for Finished Product Units with any entity that is not at such time an
Authorized Replicator. In the event Microsoft de-authorizes an Authorized
Replicator, Microsoft will notify Licensee as far in advance as possible under
the circumstances, and in no event later than notice provided to any other Xbox
publisher.

      4.3   APPROVAL OF NEW AUTHORIZED REPLICATOR. If Licensee requests that
Microsoft certify and approve a third party replicator that is not then an
Authorized Replicator, Microsoft will consider

----------
[*] Information has been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment pursuant to
Rule 406 under the Securities Act of 1933, as amended.

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                                                     Xbox PLA Contract No. 20108

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

      4.4   SECURITY. Microsoft will have the right to add to the final release
version of the Software Title delivered by Licensee to Microsoft, and to all
Finished Product Units, such digital signature technology and other security
technology and copyright management information (collectively, "Security
Technology") as Microsoft may determine to be necessary, and/or Microsoft may
modify the signature included in any Security Technology included in the
Software Title by Licensee at Microsoft's direction. Additionally, Microsoft may
add Security Technology that prohibits the play of Software Titles on Xbox units
manufactured in a region or country different from the location of manufacture
of the respective Finished Product Units. Microsoft shall supply Licensee with
technical information relating to Security Technology; provide prior notice
before adding Security Technology to Licensee's Software Title; and provide
prior notice of any modifications, changes or updates to the Security Technology
during the term of this Agreement. In addition, Microsoft or Licensee shall
cause the Authorized Replicator to create several test versions of the Finished
Product Unit (after the Security Technology has been added) that shall be
provided to both Microsoft and Licensee for evaluation. Prior to full
manufacture of Finished Product Units by the Authorized Replicator, both parties
shall have approved of such test versions. Microsoft's approval shall be a
condition precedent to manufacture, however Licensee alone shall have the right
to grant the final approval and shall work directly with the Authorized
Replicator regarding the production run.

5.    MARKETING, SALES AND SUPPORT

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

      5.2   ART & MARKETING MATERIALS. In accordance with Section 2.1.6 above,
Licensee shall submit all Art & Marketing Materials to Microsoft, and Licensee
shall not distribute such Art & Marketing Materials unless and until Microsoft
has approved them in writing. Prior to publication of any Art & Marketing
Materials, Licensee agrees to incorporate all changes relating to use of the
Licensed Trademarks that Microsoft may request, and will use its commercially
reasonable efforts to incorporate other changes reasonably suggested by
Microsoft (provided, however, that Licensee shall at all times comply with the
requirements set forth in the Branding Specifications and/or the Xbox Guide).
Once approved by Microsoft, Art & Marketing Materials, or particular elements
thereof, may be reused and republished in related Art & Marketing Materials
without the need for additional review or approval by Microsoft, provided that
the other elements of such related Art & Marketing Materials shall be subject to
Microsoft's approval as provided in Section 2.1.6. By way of example only,
elements of the approved packaging for a Software Title may be incorporated into
advertisements or point-of-purchase ("POP") displays without requiring
additional review or approval by Microsoft of the elements taken from the
previously approved packaging (so long as such reused elements are accurately
depicted in the ads or

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                                                     Xbox PLA Contract No. 20108

POP displays), but the other elements (other than the reused or republished
elements) of the ads or POP displays shall require review and approval by
Microsoft as set forth herein.

            5.2.1 APPROVAL PROCESS. Microsoft's failure to provide a written
response of approval or disapproval to any Art and Marketing Materials
submission within ten (10) business days of any submission shall not be deemed
an approval of such submission. If Microsoft fails to provide a written response
within such ten business day period, Licensee shall so notify Microsoft in
writing, and if Microsoft fails to provide a written response of approval or
disapproval of the Art & Marketing Materials submission within the ten business
day period following Licensee's notice, the Art & Marketing Materials shall be
deemed approved. Without limiting the foregoing, the parties will work in good
faith to agree on a process by which certain Art & Marketing Materials may be
pre-approved and/or reviewed within shorter time periods.

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

      5.4   RECALL. Notwithstanding anything to the contrary contained in this
Agreement (including without limitation Section 2.1.4), in the event of a
material defect in a Software Title and/or any Finished Product Units, which
defect in the reasonable judgement of Microsoft would significantly impair the
ability of an end user to play such Software Title or Finished Product Unit,
Microsoft may require Licensee to recall Finished Product Units and undertake
prompt repair or replacement of such Software Title and/or Finished Product
Units. No recall shall be required unless and until a senior executive of both
parties consult in good faith with respect to the need and/or merit of any such
potential recall, and Microsoft considers in good faith Licensee's concerns
about recall and alternative approaches to successfully correcting such material
defects. Without limiting the foregoing, the parties agree that a recall of
Finished Product Units that are already available to end users at the retail
level is a drastic remedy that should only be considered a last resort when
repair or other remedial measures are not reasonably viable alternatives.

      5.5   SOFTWARE TITLE LICENSE. Subject to third party rights of which
Licensee shall have informed Microsoft in writing at the time of delivery of the
feature-complete version of the applicable Software Title, Licensee hereby
grants to Microsoft a fully-paid, royalty-free, non-exclusive license (i) to
publicly perform the Software Titles at conventions, events, trade shows, press
briefings, and the like (provided that Microsoft shall notify Licensee prior to
publicly performing the Software Title or a Demo Version thereof); (ii) to use
the title of the Software Title, and screen shots from the Software Title, in
advertising and promotional material relating to Xbox and related Microsoft
products and services, as Microsoft may reasonably deem appropriate; and (iii)
distribute Demo Versions with the official Xbox magazine or other marketing
opportunities. The foregoing rights shall be subject to Microsoft's agreement to
consult on a regular basis with Licensee about advertising, marketing and
promotional events relating to the Software Title; and Microsoft further agrees
to consult with Licensee in advance of any marketing or advertising campaign
that makes significant use of or reference to the Software Title.

6.    PAYMENTS

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

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                                                    Xbox PLA Contract No. 20108

<TABLE>
<CAPTION>
FINISHED PRODUCT UNITS MANUFACTURED    ROYALTY PER APPLICABLE FINISHED PRODUCT UNIT
                                                        US DOLLARS
                                                           YEN
                                                          EUROS
<S>                                    <C>
                [*]                                        [*]

                [*]                                        [*]

                [*]                                        [*]

                [*]                                        [*]
</TABLE>

Notwithstanding the foregoing, no royalties will be payable hereunder with
respect to any Demo Versions.

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

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

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

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

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

                                       [*]

----------
[*] Information has been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment pursuant to
Rule 406 under the Securities Act of 1933, as amended.

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                                                     Xbox PLA Contract No. 20108

                         Worldwide  _________ (initials)

                         Regional   _________ (initials)

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

      6.4   AUDIT. Licensee shall keep all usual and proper records related to
its performance (and any subcontractor's performance) under this Agreement,
including support for any cost borne by or income due to Microsoft, for a
minimum period of three (3) years from the date they are created. Such records,
books of account, and entries shall be kept in accordance with generally
accepted accounting principles. Microsoft reserves the right, upon twenty-four
(24) hours' notice, to audit Licensee's records and consult with Licensee's
accountants for the purpose of verifying royalty amounts due and for a period of
two (2) years thereafter. Any such audit shall be made by an independent
certified public accountant (other than on a contingency basis), and shall be
conducted during regular business hours at the Licensee's (or any applicable
subcontractor's) offices and in a manner which will not interfere with
Licensee's normal business activities. All of the information contained in the
Licensee's books and records shall be kept confidential, and the parties agree
that information inspected or copied on behalf of Microsoft shall be used only
for the purpose of determining the accuracy of the royalty statements, and shall
be revealed only to those officers, directors, employees, agents or
representatives of Microsoft as shall be reasonably necessary to verify the
accuracy of those statements. Any such audit shall be paid for by Microsoft
unless material discrepancies are disclosed. "Material" shall mean [*] of the
royalties due to Microsoft within the audit period. If material discrepancies
are disclosed, Licensee agrees to pay Microsoft for the costs associated with
the audit, as well as reimburse Microsoft for all over-charged amounts, plus
interest at a rate of [*] per annum.

      6.5   TAXES.

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

            6.5.2 Licensee will pay all applicable value added, sales and use
taxes and other taxes levied on it by a duly constituted and authorized taxing
authority on the XDKs or any transaction related

----------
[*] Information has been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment pursuant to
Rule 406 under the Securities Act of 1933, as amended.

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                                                     Xbox PLA Contract No. 20108

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

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

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

7.    NON-DISCLOSURE; ANNOUNCEMENTS

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

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

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

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                                                     Xbox PLA Contract No. 20108

8.    TERM AND TERMINATION

      8.1   TERM. The term of this Agreement shall commence on the Effective
Date and unless terminated earlier as provided herein, shall continue until [*]

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

      8.3   COMPLIANCE WITH XBOX GUIDE. In the event that Microsoft reasonably
determines, at any time prior to the Commercial Release of a Software Title,
that such Software Title is in significant material noncompliance with the
requirements set forth in the Xbox Guide, and Microsoft has provided Licensee
with a reasonable opportunity to correct such noncompliance, then Microsoft will
have the right to terminate this Agreement, without cost or penalty, upon
written notice to Licensee solely with respect to such Software Title, in
Microsoft's sole discretion and notwithstanding any prior approvals given by
Microsoft pursuant to Section 2 above.

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

      8.5   SURVIVAL. The following provisions shall survive termination of this
Agreement: 1, 3.6, 5.1, 5.3, 5.4, 6, 7, 8.4, 8.5, 9, 10, 11 and 12.

9.    WARRANTIES

      9.1   LICENSEE. Licensee warrants and represents that:

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

----------
[*] Information has been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment pursuant to
Rule 406 under the Securities Act of 1933, as amended.

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                                                     Xbox PLA Contract No. 20108

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

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

      9.2   MICROSOFT. Microsoft warrants and represents that:

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

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

      9.3   DISCLAIMER. EXCEPT AS EXPRESSLY STATED IN THIS SECTION 9, MICROSOFT
PROVIDES ALL MATERIALS (INCLUDING WITHOUT LIMITATION THE SECURITY TECHNOLOGY)
AND SERVICES HEREUNDER ON AN "AS IS" BASIS, AND MICROSOFT DISCLAIMS ALL OTHER
WARRANTIES UNDER THE APPLICABLE LAWS OF ANY COUNTRY, EXPRESS OR IMPLIED,
REGARDING THE MATERIALS AND SERVICES IT PROVIDES HEREUNDER, INCLUDING ANY
IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR
WARRANTY OF FREEDOM FROM COMPUTER VIRUSES. WITHOUT LIMITATION, MICROSOFT
PROVIDES NO WARRANTY OF NON-INFRINGEMENT.

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

10.   INDEMNITY

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

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

            10.1.2 ADDITIONAL LICENSEE INDEMNIFICATION OBLIGATION. Licensee
further agrees to indemnify, defend, and hold Microsoft harmless from any and
all claims, demands, costs, liabilities, losses, expenses and damages (including
reasonable attorneys' fees, costs, and expert witnesses' fees) arising out of or
in connection with any claim regarding any Software Title or Finished Product
Unit, including without limitation any claim relating to quality, performance,
safety or conformance with the Certification Requirements, or arising out of
Licensee's use of the Licensed Trademarks in breach of this Agreement.

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                                                     Xbox PLA Contract No. 20108

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

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

11.   PROTECTION OF PROPRIETARY RIGHTS

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

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

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

----------
[*] Information has been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment pursuant to
Rule 406 under the Securities Act of 1933, as amended.

                                     - 16 -
<PAGE>
                                                     Xbox PLA Contract No. 20108

12.   GENERAL

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

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

            Licensee:         _____________________
                              _____________________
                              _____________________
                              _____________________

            Attention:        _____________________
            Fax:              _____________________
            Phone:            _____________________

            Microsoft:        MICROSOFT CORPORATION
                              One Microsoft Way
                              Redmond, WA  98052-6399

            Attention:        _____________________

            with a cc to:     MICROSOFT CORPORATION
                              One Microsoft Way
                              Redmond, WA  98052-6399

            Attention:        Law & Corporate Affairs Department
                              Product Development & Marketing
            Fax:              (425) 936-7329

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

      12.3  ASSIGNMENT.

            12.3.1 BY LICENSEE. Except as expressly provided to the contrary in
this Section 12.3.2, Licensee may not assign this Agreement or any portion
thereof, to any third party unless Microsoft expressly consents to such
assignment in writing. For the purposes of this Agreement, a merger,
consolidation, or other corporate reorganization, or a transfer or sale of a
controlling interest in a party's

                                     - 17 -
<PAGE>
                                                     Xbox PLA Contract No. 20108

stock, or of all or substantially all of its assets to a third party (a "Sale
Event") shall be deemed to be an assignment. Notwithstanding the foregoing,
Licensee may assign this Agreement without Microsoft's consent to any affiliate
of Licensee that controls, is controlled by, or is under common control with,
Licensee, so long as (i) such assignment is not undertaken in connection with a
Sale Event, or (ii) such assignment is undertaken in connection with a Sale
Event but each third party involved in such Sale Event is not considered by
Microsoft, in Microsoft's reasonable good faith judgment, to be a competitor to
Microsoft in the game hardware or software business. In any event, no assignment
of this Agreement or any portion thereof shall release Licensee from any of its
obligations under this Agreement, and Licensee and any permitted assignee shall
be jointly and severally liable for the performance of all duties and
obligations herein.

            12.3.2 BY MICROSOFT. Microsoft will have the right to assign this
Agreement and/or any portion thereof as Microsoft may deem appropriate.

            12.3.3 This Agreement will inure to the benefit of and be binding
upon the parties, their successors, administrators, heirs, and permitted
assigns.

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

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

      12.6  INJUNCTIVE RELIEF. The parties agree that Licensee's threatened or
actual unauthorized use of the Licensed Trademarks whether in whole or in part,
may result in immediate and irreparable damage to Microsoft for which there is
no adequate remedy at law, and that either party's threatened or actual breach
of the confidentiality provisions may cause like damage to the nonbreaching
party, and in such event the nonbreaching party shall be entitled to appropriate
injunctive relief, without the necessity of posting bond or other security.

                                     - 18 -
<PAGE>
                                                     Xbox PLA Contract No. 20108

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

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

MICROSOFT CORPORATION                      INFOGRAMES NORTH AMERICA INC.

/S/ J Allard                               /S/ Yves Blehant
_____________________________________      _____________________________________
By (sign)                                  By (sign)

J Allard                                   Yves Blehant
_____________________________________      _____________________________________
Name (Print)                               Name (Print)

General Manager                            Senior Vice President
_____________________________________      _____________________________________
                                           Title
Title

5/14/01                                    4/18/01
_____________________________________      _____________________________________
Date                                       Date

                                     - 19 -
<PAGE>
                                                     Xbox PLA Contract No. 20108

                                  EXHIBIT A-1
                         DESCRIPTION OF SOFTWARE TITLE

                                     - 20 -
<PAGE>
                                                     Xbox PLA Contract No. 20108

                                   EXHIBIT B
                              LICENSED TRADEMARKS

                           [insert Xbox design here]

                                     - 21 -
<PAGE>
                                                     Xbox PLA Contract No. 20108

                                   EXHIBIT C
                            BRANDING SPECIFICATIONS

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

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

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

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

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

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

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

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

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

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

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

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

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

                                     - 22 -
<PAGE>
                                                     Xbox PLA Contract No. 20108

      -     Include the following notice on materials referencing Xbox:

                  "Xbox is a trademark of Microsoft Corporation."

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

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

                                     - 23 -
<PAGE>
                                                     Xbox PLA Contract No. 20108

                                    EXHIBIT D
                            NON-DISCLOSURE AGREEMENT

                                     - 24 -

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