Document:

<PAGE>

                                                                   Exhibit 10.12

CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE
BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

                         TECHNOLOGY LICENSE AGREEMENT
                         ----------------------------

     This Technology License Agreement ("Agreement") is entered into as of July
1st, 1997 ("Effective Date") by and between Reality Simulation Systems
Acquisition Corporation ("RSS"), a California corporation, with its principal
place of business 1020 Asbury Street, San Jose, California 95126, and
InteGraphics Systems, Inc. ("IGS"), a California corporation, having its
principal place of business at 4001 Burton Drive, Santa Clara, California 95054.

     WHEREAS, RSS has developed or will develop 3-D graphics technology useful
in personal computers and consumer electronics products;

     WHEREAS, IGS desires to obtain a license to such RSS technology to develop
a semiconductor and certain driver software for use in 2-D and 3-D graphics
applications, and RSS desires to grant IGS a license, pursuant to the terms and
conditions in the Agreement, to its technology;

     WHEREAS, RSS wishes to obtain a license to sell and distribute products and
chips and IGS desires to grant RSS such a license pursuant to the terms and
conditions of this Agreement; and

     WHEREAS, RSS and IGS each desire to distribute the products developed
hereunder on an exclusive basis to separate geographic and platform markets.

     NOW, THEREFORE, in consideration of the mutual promises contained herein,
the parties hereto agree as follows:

1.   Definitions.
     -----------

     1.1  "AGP Technology" shall mean the graphics port protocol promoted by
Intel Corporation, a Delaware corporation, and implemented by IGS, and further
specified in Exhibit A hereto. The AGP Technology includes, without limitation,
Source Code, test vectors, schematics, and descriptive specifications.

     1.2  "CyberPro3000 Products" shall mean products based on or incorporating
encrypted Verilog Source Code and further specified in Attachment B hereto
regardless of the name or commercial designation of such products. Any
CyberPro3000 Products Introduced by or for a party for a period of twelve (12)
months following completion of the first production CyberPro3000 Product for
commercial sale which is substantially similar to the CyberPro3000 Products
shall also be a CyberPro3000 Product hereunder.

     1.3  "Derivative Work" shall mean:

          (a)  for copyrights and copyrightable materials, any modification,
revision, port, translation, abridgement, condensation or expansion of the pre-
existing work, or any portion thereof, or any form in which the preexisting work
is recast, transferred, transformed or adapted;

<PAGE>

          (b)  for patents and patentable materials, any improvement thereon;
and

          (c)  for trade secrets and materials protected by trade secret, any
new material derived from such existing trade secret or materials, including new
material which may be protected by copyright, patent or trade secret or any
combination of the foregoing.

     1.4  "Documentation" shall mean any user documentation or materials
relating to CyberPro3000 Products and Unencrypted Verilog Based Products,
including, without limitation, screen displays, "read me" files and reference,
user, installation, systems administrator and technical guides.

     1.5  "IGS Chip" shall mean the IGS graphics chip based on the ***
Technology, produced by or for IGS hereunder and further specified in Attachment
A, including, without limitation, any and all semiconductor masks used to
fabricate or manufacture such chips. Any graphics chip Introduced by or for IGS
for a period of twelve (12) months following completion of the first production
CyberPro3000 Product for commercial sale which is substantially similar to the
IGS Chip shall also be an IGS Chip hereunder.

     1.6  "IGS Market" shall mean the platform(s) and territory(ies) specified
in Attachment C hereto.

     1.7  "IGS Software" shall mean the IGS driver software specified in
Attachment A.

     1.8  "Introduced" shall mean the announcement of a product by press
release, trade show announcement, or other like marketing technique.

     1.9  "*** Technology" shall mean the RSS Software and Verilog Source Code
(in both encrypted and unencrypted forms).

     1.10 "Proprietary Rights" shall mean patents, patent rights, copyright
rights, trademark rights, trade secret rights, mask work rights, and all other
intellectual property rights worldwide.

     1.11 "RSS Market" shall mean the platform(s) and territory(ies) specified
in Attachment C.

     1.12 "RSS Software" shall mean the RSS driver software specified in
Attachment A.

     1.13 "Source Code" shall mean those statements in a computer language
which, when processed by a compiler, assembler or interpreter, become executable
by a computer and includes, without limitation, all comments, notes, flow
charts, decision tables, argument lists and other human readable references
relating to the operation, purpose, compilation, assembly or interpretation
thereof.

*** CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

                                       2
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          1.14  "*** Technology" shall mean the successor technology to the ***
Technology specified in Attachment E hereto.

          1.15  "Verilog Source Code" shall mean the IGS Chip and associated
electronics as described and documented in a human readable hardware description
language which can reproduce the same netlist description of the Encrypted
verilog.

          1.16  "Unencrypted Verilog Based Products" shall mean CyberPro3000
Products based on or incorporating the unencrypted Verilog Source Code
regardless of the name or commercial designation of such products.

     2.   License Grant to IGS.
          --------------------

          2.1  Subject to all of the terms and conditions of this Agreement, RSS
hereby grants to IGS a royalty-bearing (as provided in Section 10 below), non-
transferable, non-sublicenseable (except as provided in Section 2.1(e) below)
license to:

               (a)  use and reproduce for its internal purposes only the RSS
Software Source Code and modify, create and prepare Derivative Works thereof.
IGS assumes all responsibility for integrating the RSS Software into the IGS
Software;

               (b)  use and reproduce for its internal purposes only the
encrypted Verilog Source Code, make speed improvements through layout,
process, and silicon integration refinements, and manufacture IGS Chips and
successor therefrom;

               (c)  use, reproduce, manufacture. market, display, license, sell
and distribute solely within the IGS Market the RSS Software (in object code
form only) and only as embedded and incorporated into CyberPro3000 Products and
Unencrypted Verilog Based Products;

               (d)  use, reproduce, manufacture, market, display, license, sell
and distribute the Documentation solely within the IGS Market and only together
with CyberPro3000 Products and Unencrypted Verilog Based Products; and

               (e)  reproduce, license and distribute the RSS Software Source
Code to such third parties as the parties mutually approve in writing and for
the sole purpose of allowing such third parties to provide end user technical
support; provided such third parties agree in writing to be bound by all of the
obligations and restrictions herein with regard to such Source Code.

          2.2  Upon completion of the first production CyberPro3000 Product for
commercial sale which substantially conforms to the specifications in Attachment
B;

               (a)  RSS will grant IGS, subject to all the terms and conditions
of this Agreement (including, without limitation, Sections 9, 10.3(b) and 16,
but not Section 8.2), a non-exclusive, non-transferable, non-sublicenseable,
royalty-bearing license to use and reproduce for its internal purposes only the
unencrypted Verilog Source Code and modify, create and prepare Derivative
Works thereof for the sole purpose of developing and manufacturing the IGS
Chip (for

*** CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

                                       3
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               (b)  For the purposes of distinguishing the encrypted and
unencrypted versions of the Verilog Source Code, and by extension the
CyberPro3000 Products and Unencrypted Verilog Based Products, IGS agrees to
perform, prior to tape out at RSS' request, Verilog design verification tests
provided by RSS to IGS ("Verification Tests"). IGS shall complete each
Verification Test and provide to RSS a written report detailing all the
results of each Verification Test within ten (10) days of RSS request or IGS'
receipt of such Verification Test, whichever is later. IGS further agrees to
allow RSS to physically inspect each and every IGS site during IGS' normal
business hours to verify IGS' compliance with this Section 2.2 and to
determine, by whatever means necessary, the version of the Verilog Source Code
used in each IGS chip (and any successor chip based in whole or in part on ***
Technology) prior to tapeout. In the event of any dispute between IGS and RSS
arising under this Section 2.2, both parties agree to settle the dispute by
arbitration as outlined in Section 20.4. If IGS agrees beforehand to pay
Unencripted Royalties no inspection will be required.

     3.   License Grant to RSS.
          --------------------

          3.1  Subject to all of the terms and conditions of this Agreement, IGS
hereby grants to RSS a non-exclusive, non-transferable, non-sublicenseable
(except as provided in Section 3.2 and 6.3 below), royalty-bearing (as provided
in Section 10 below), fully paid-up, worldwide license to:

               (a)  use, reproduce, manufacture, market, display, distribute,
modify and create Derivative Works based on the AGP Technology if developed
internally by IGS for the CyberPro3000 products or Unencrypted Verilog Based
Products.

               (b)  use, reproduce, manufacture, market, display, license,
sell and distribute solely within the RSS Market the IGS Software (in object
code form only) and IGS Chip and only as embedded and incorporated into
CyberPro3000 Products or Unencrypted Verilog Based Products; and

               (c)  reproduce, license and distribute the IGS Software Source
Code by IGS to such third parties as the parties mutually approve in writing and
for the sole purpose of allowing such third parties to provide end user
technical support; provided such third parties agree in writing to be bound by
all of the obligations and restrictions herein with regard to such Source Code.

          3.2  The license grant under Section 3.1 is sublicensable by RSS only
to a third party manufacturer mutually agreed upon by both parties who will
provide a source of CyberPro3000 Products and Unencrypted Verilog Based
Products to both IGS and RSS, provided, however, that such third party
manufacturer shall be bound in writing to all restrictions on RSS under this
Agreement and further provided that such third party manufacturer shall not
have the right to manufacture such products for any third party. The parties
hereby acknowledge and agree, that at RSS expense, Seiko Epson Corporation
("Seiko"), a Japan corporation, shall be an authorized third party
manufacturer under this Section 3.2 upon Seiko's written agreement to be bound
by all restrictions on RSS under this Agreement.

                                       4
<PAGE>

bound by all restrictions on RSS under this Agreement.

     4.   Restrictions.
          ------------

          4.1  The license grants herein shall be not be exercisable by a
party's contractors, except those contractors who agree in writing to be bound
to all of such party's obligations and restrictions under this Agreement.

          4.2  Each party agrees to include and not to obscure or modify the
other party's copyright and other notices which appear in or on the CyberPro3000
Products, Unencrypted Verilog Based Products, *** Technology or Documentation.

          4.3  Each party agrees not to develop or use any benchmarking tests
which cheat on results of he CyberPro3000 Products, Unencrypted Verilog Based
products or portions thereof.

          4.4  No rights or licenses are granted or deemed granted to any
Proprietary Rights of either party to the other party to any subject matter of
this Agreement except those rights or licenses expressly and unambiguously
granted herein.

          4.5  In no event whatsoever, except as expressly and unambiguously
stated herein, shall a party use, disclose or distribute to any third party
Source Code, or any portion thereof, of the other party including, without
limitation, encrypted and unencrypted Verilog Source Code (in the case of IGS).

     5.   Right of First Refusal. RSS agrees that IGS shall, for a period of
          ----------------------
three (3) months following the Effective Date and to the exclusion of all other
parties, have the first opportunity to acquire a non-exclusive, worldwide
license to use, reproduce, market, manufacture, display, license, sell,
distribute and modify the *** Technology for use in graphics chips.

     6.   Distribution Rights.
          -------------------

          6.1  IGS shall have the exclusive, non-transferable (except as
provided below) right to market, sell and distribute CyberPro3000 Products and
Unencrypted Verilog Based Products in the IGS Market and RSS shall have the
exclusive, non-transferable (except as provided below) right to market, sell
and distribute CyberPro3000 Products and Unencrypted Verilog Based Products in
the RSS Market except that the exclusive rights granted under this Section 6.1
shall automatically and irrevocably become non-exclusive as to both parties:

               (a)  on ***; or

               (b)  in the event that a party fails to sell *** (***) units of
CyberPro3000 Products and/or Unencrypted Verilog Based Products within six (6)
months of the first retail sale of a CyberPro3000 Product or Unencrypted
Verilog Based Product.

          6.2  The parties acknowledge and agree that IGS may continue to
develop graphics technology after the Execution Date and that, as to products
Introduced by IGS after the

*** CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION

                                       5
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sale, no right, tide or interest in or to any Proprietary Rights in such
products is transferred under this Agreement and IGS may freely market, sell,
distribute or otherwise transfer such products in all markets worldwide.

          6.3  A party's exclusive rights under Section 6.1 above may be
transferred only with the prior written approval of the non-transferring party,
except that RSS may, in its sole discretion and without the prior written
approval of IGS, transfer its exclusive rights hereunder to S-MOS Systems Inc.
("S-MOS"), a California corporation.

          6.4  A party may appoint a third party distributor to exercise such
party's distribution rights under this Section 6 to a third party distributor
who agrees in writing to be bound by all the terms and conditions of this
Agreement.

     7.   Ownership.
          ---------

          7.1 As between the parties and subject to the licenses granted herein,
RSS owns all right, title and interest in and to all of the *** Technology and
Documentation and all copies and portions thereof and all Proprietary Rights
thereto. As between the parties and subject to the license granted herein, IGS
owns all right title and interest in and to the IGS Chip and all Proprietary
Rights thereto, subject to RSS' rights in the *** Technology. IGS agrees to
assign and hereby does assign to RSS any and all Proprietary Rights IGS may
acquire in the *** Technology or Documentation or any Derivative Work of the
foregoing. In the event RSS is unable for any reason to secure IGS' authorized
signature to apply for or to pursue any application for any United States or
foreign letters patent or copyright registrations or other intellectual property
protection relating to Proprietary Rights assigned to RSS hereunder, then IGS
hereby irrevocably designates and appoints RSS and its duly authorized officers
and agents as its agent and attorney-in-fact, with full power of substitution,
to act for and in its behalf and stead to execute and file any such applications
and to do all other lawfully permitted acts to further the prosecution and
issuance of letters, patent or copyright registrations or other intellectual
property protection thereon with the same legal force and effect as if executed
by IGS.

          7.2  The foregoing ownership provision in Section 7.1 shall not be
construed to Emit either party's right to independently develop or acquire
similar products or technology without use of the other party's Confidential
Information (as defined in Section 16 below), products or technology; provided
that, except for the licenses expressly granted in this Agreement, nothing in
this Section 7.2 shall be deemed to grant either party a license under the other
party's Proprietary Rights.

          7.3  In the course of marketing the CyberPro3000 Products and
Unencrypted Verilog Based Products, IGS will use the then current names and
designations used by RSS therefor ("Marks") but will not represent or imply
that it is RSS or a part of RSS. However, all advertisements, promotional
materials, packaging and anything else bearing a Mark, including, without
limitation, any product based on or incorporating *** Technology or Derivative
Works thereof, shall identify RSS as the Mark owner and shall be subject to
the prior written approval of RSS, which approval shall not be unreasonably
withheld. IGS also agrees not to use or contest, during or after the term of
this Agreement, any name, mark or designation used by RSS

*** CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

                                       6
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advertisements, promotional materials, packaging and anything else bearing a
Mark, including, without limitation, any product based on or incorporating ***
Technology or Derivative Works thereof, shall identify RSS as the Mark owner and
shall be subject to the prior written approval of RSS, which approval shall not
be unreasonably withheld. IGS also agrees not to use or contest, during or after
the term of this Agreement, any name, mark or designation used by RSS anywhere
in the world (or any name, mark or designation similar thereto). IGS
acknowledges and agrees that all use of Marks by IGS shall inure to the benefit
of RSS.

     8.   Delivery of RSS Software.
          ------------------------

          8.1  RSS will use its diligent commercial efforts to deliver to IGS
the RSS Software and encrypted Verilog Source Code in accordance with the
milestones set forth in Attachment D hereto.

          8.2  IGS may perform acceptance tests on the RSS Software and
encrypted Verilog Source Code for a period of thirty (30) days following IGS'
receipt thereof for conformance with RSS' specifications therefor as set forth
in Attachment A. If IGS discovers material non-conformance in conducting such
acceptance tests and provides RSS with sufficient written instructions,
equipment, machines and documentation ("Nonconformance Materials") to allow RSS
to readily reproduce the problems at its facility, RSS shall, at its cost, use
reasonable efforts to make corrections or develop workarounds within thirty (30)
days after receipt of the required Nonconformance Materials or such longer
period as the parties agree in writing after conferring in good faith. The RSS
Software and encrypted Verilog Source Code will be deemed accepted upon the
earliest of the following: (i) IGS provides written notice of acceptance, (ii)
thirty (30) days after IGS commercially ships or licenses CyberPro3000 Products,
or (iii) thirty (30) days after delivery to IGS of the RSS Software or encrypted
Verilog Source Code or a correction thereto if IGS has not first provided the
necessary Nonconformance Materials. IGS shall have the right to terminate this
Agreement if RSS has not corrected any material non- conformance in the RSS
Software or encrypted Verilog Source Code in connection with this Section 8.2
within one hundred twenty (120) days of IGS' delivery to RSS of Nonconformance
Materials therefor.

     9.   Protection of the *** Technology.
          --------------------------------

          9.1  In addition to its obligations under Section 16 below, IGS shall
restrict access to and shall not disclose any *** Technology to any person or
entity except to a limited number (but in no event more than ten (10)) of IGS'
employees and independent contractors (i) located at 4001 Burton Drive, Santa
Clara, CA. 95054, and (ii) who have a need to access the *** Technology to
enable IGS to exercise its rights and perform its obligations under this
Agreement. Within thirty (30) days after request from RSS but not more than
three (3) times each year, IGS shall provide RSS with a list of the names of any
and all individuals (employees, independent contractors, employees of
independent contractors, and any other individuals) who then have or have had,
at any time since IGS last provided such a list, access to the *** Technology.
IGS shall inform all persons who are given access to the *** Technology that the
*** Technology contains confidential trade secrets of RSS and is the
Confidential Information (as defined in Section 16 below) of RSS. IGS shall
employ its best efforts to prevent unauthorized physical or electronic access,
use, reproduction, transmission, display, disclosure and

*** CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

                                       7
<PAGE>

at RSS' request, but no more than three (3) times each calendar year, for the
purpose of (i) confirming that it is protecting the *** Technology in accordance
with this Agreement, and (ii) reminding its employees and independent
contractors of the limited rights and obligations of IGS and each employee and
independent contractor pertaining to the *** Technology. Following each review,
IGS will notify RSS in writing that IGS conducted the review and (a) that no
violations were discovered, or (b) that violations were discovered, a
description of the nature and extent of the violations, and a description of the
actions taken by IGS to correct the violations. IGS shall take all actions
reasonably required to recover and prevent further use, reproduction and
disclosure of the *** Technology in the event of loss or misappropriation;
provided that if IGS fails to enforce any confidentiality obligations of its
employees or independent contractors or fails to recover and prevent further use
of the *** Technology, then RSS may take all necessary steps, including, without
limitation, initiating legal action, to enforce such agreements to protect its
interests in the *** Technology. IGS shall be fully responsible for the conduct
of all of its employees, independent contractors, agents and representatives who
may in any way breach this Section 9 or Section 16 below and shall indemnify RSS
for any damages relating to or arising from such breach.

     9.3  IGS expressly agrees to keep the *** Technology and Derivative Works
thereof and any portions or copies of the foregoing at IGS' offices located at
4001 Burton Drive, Santa Clara, CA. 95054, and not to move, transmit, view,
access, store, situate or otherwise transfer, distribute, display or relocate
for any period of time whatsoever, physically, electronically or otherwise, or
allow any third party to do any of the foregoing, any *** Technology or
Derivative Works thereof or any portions or copies of the foregoing without the
prior written approval of RSS.

     10.  License Fees: Royalties.
          -----------------------

          10.1  Initial Payments.  In consideration of the licenses granted to
                ----------------
IGS by RSS herein, upon execution of this Agreement, IGS shall pay RSS a non-
refundable, non-recoupable, non-creditable RSS Software license fee in the
amount of *** Dollars ($***) and a non-refundable, non-recoupable, non-
creditable encrypted Verilog Source Code license fee in the amount *** Dollars
($***).

          10.2  Milestone Payments.  In consideration of RSS' development of
                ------------------
the *** Technology for use in CyberPro3000 Products, IGS shall pay RSS the
following non-refundable, non-recoupable, non-creditable milestone payments upon
RSS' completion of the milestones below and further specified in Attachment D:

                (a)  *** Dollars ($***) upon sign-off by IGS of a test sample of
the IGS Chip;

                (b)  *** Dollars ($***) upon the commercial production release
of the IGS Chip; and

                (c)  *** Dollars ($***) upon the commercial production release
of the RSS Software.

*** CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

                                       8
<PAGE>

     Notwithstanding anything else in this Agreement, the first commercial sale
of a CyberPro3000 Product shall conclusively be deemed to satisfy each and every
milestone requirement in this Section 10.2 and IGS shall immediately pay to RSS
any milestone payment(s) not yet paid hereunder.

          10.3  Royalties.
                ---------

                (a)  Each party shall pay royalties to the other party for each
unit of CyberPro3000 Product sold, distributed or otherwise transferred under
this Agreement by or for such selling party as follows:

               Number of Units                 Royalty Per Unit
               ---------------                 ----------------

               1-20,000                            $***
               20,001- 750,000                     $***
               750,001- 1,500,000                  $***
               1,500,001+                          $***

                (b)  Each party shall pay royalties to the other party for each
unit of Unencrypted Verilog Based Product sold, distributed or otherwise
transferred under this Agreement by or for such selling party in the amount of
*** ($***) for each unit of the first *** (***) units of Unencrypted Verilog
Based Products, licensed, distributed or otherwise transferred.

                (c)  All royalties shall be due and paid at the same time as the
quarterly reports are provided under Section 10.5 below. No royalties shall
accrue with respect to either party after January 1, 2001, provided all
royalties accrued prior to January 1, 2001 have been paid in full on or before
January 31, 2001. Royalties shall continue to accrue after January 1, 2001 with
respect to a party which has not paid royalties as provided in this paragraph
(c) until such time as that party has paid all outstanding and accrued royalties
in full. No royalties shall be payable for (i) units of CyberPro3000 Products
and Unencrypted Verilog Based Products that are returned and for which a credit
has been made to a customer or (ii) commercially reasonable quantities of
CyberPro3000 Products and Unencrypted Verilog Based Products used for testing,
demonstration and similar purposes provided a party is not paid for such use.

          10.4  New Markets. In the event the parties agree in writing to amend
                -----------
either the IGS Market or RSS Market to add any additional platform or territory,
all royalties for units of CyberPro3000 Products sold in such new market shall
be calculated based only on the unit sales applicable to such additional
platform(s) or territory(ies), as the case may be.

          10.5  Payments; Reports; Audit. Each party shall bear its own
                ------------------------
manufacturing, marketing, sales and distribution costs including, without
limitation, taxes, duties and other government assessments. All late payments
will be assessed a service fee of one and one-half percent (1.5%) per month or
the maximum rate allowed under applicable law, whichever is less. Each party
shall provide to the other party, within thirty (30) days after the end of each
calendar quarter, quarterly written reports of the total number of units of
CyberPro3000 Products and

      *** CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.

                                       9
<PAGE>

Unencrypted Verilog Based Products distributed by or for such party and the
royalties payable, if any, which have accrued under Section 10.3 above. Each
party shall keep complete and accurate books and records of its sales and
distribution of CyberPro3000 Products and Unencrypted Verilog Based Products
all other transactions relating thereto in sufficient detail to enable any
payments due hereunder to be determined and verified. Each party shall have
the right (at its expense, upon reasonable notice and during the audited
party's normal business hours) to have an independent certified public
accountant inspect and audit the books and records of the other party for the
purpose of verifying any reports, information or payments provided or due
hereunder. Such accountant shall be bound in confidence not to use or disclose
any information except to the extent necessary to inform the auditing party of
any non-compliance with the reports, information or payments provisions of
this Agreement. All underpayments revealed by such audit shall be paid within
thirty (30) days of the audit results. If such audit reveals an underpayment
in excess of five percent (5%), the underpaying party shall bear the expense
of the audit. Each party may exercise its right to audit no more than once per
year unless an underpayment of over five percent (5%) has been discovered in
the prior audit. In such event, the underpaid party shall have the right to
audit once every three (3) months until the results of the three (3) most
recent audits show less than a five percent (5%) underpayment.

     11.  Training and Support.
          --------------------

          11.1  The parties agree to cooperate in the development and support of
the *** Technology, IGS Software, IGS Chip and CyberPro3000 Products.
Accordingly, each party shall provide, at the other party's request and expense,
up to eighty (80) man hours of training and technical support during the
providing party's normal business hours. A party may request additional training
and technical support at the providing party's then current consulting fee,
which request shall not unreasonably be denied.

          11.2  The parties shall together and in good faith negotiate with
third parties for the right to bundle mutually acceptable third party products
with the CyberPro3000 Products and Unencrypted Verilog Based Products.

     12.  Representations and Warranties.
          ------------------------------

          12.1  Each party represents and warrants that:

                (a)  it has the corporate power and authority to enter into and
to fulfil its obligations under this Agreement;

               (b)   it will use its diligent commercial efforts to successfully
market, distribute and support the CyberPro3000 Products in the IGS Market (in
the case of IGS) and the RSS Market (in the case of RSS) on a continuing basis
and to comply with good business practices and all laws and regulations relevant
to this Agreement or the subject matter hereof;

               (c)   it is fully responsible for the satisfaction and support of
its customers. Each party will be responsible for, and shall indemnify, defend
and hold the other party harmless from, all claims, damages, settlements,
expenses and attorneys' fees incurred by a party

*** CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

                                      10
<PAGE>

with respect to the other party's customers and their claims; and

               (d)  to keep for three (3) years after termination of this
Agreement records of all CyberPro3000 Product and Unencrypted Verilog Based
Product sales and customers sufficient to adequately administer a recall of
any such products and to fully cooperate in any decision by RSS or IGS to
recall, retrieve and/or replace any such products.

          12.2 IGS represents and warrants that:

               (a)  it has the right to grant RSS the licenses in Section 3
including, without limitation, the license to the AGP Technology;

               (b)  IGS shall not enter into any manufacturing, fabrication or
foundry agreement with any third party for the CyberPro3000 Products,
Unencrypted Verilog Based Products or IGS Chips which does not expressly grant
RSS the irrevocable right to obtain manufacturing, fabrication or foundry
services for CyberPro3000 Products, Unencrypted Verilog Based Products or IGS
Chips from such third party on the same terms as IGS and grant RSS discounts,
credits or other favorable terms (including, without limitation, price) based
on the number of units thereof produced by such third party manufacturer for
IGS; and

               (c)  the deliverables provided by it hereunder shall be the same
in every respect as the products shipped by IGS to its customers and that it
will, without charge, provide to RSS for the term of this Agreement, all
improvement, upgrades, updates, bug fixes and other enhancements which IGS makes
generally available to its customers.

          13.  Warranty; Disclaimer. RSS represents and warrants that (i) the
               --------------------
*** Technology, as delivered by RSS hereunder, will conform substantially to
RSS' specifications therefor, provided that IGS' sole remedy for breach of the
warranty in this clause (i) shall be IGS' rights under Section 8.2; and (ii) to
the best of RSS' knowledge, the RSS Software does not infringe any United States
Proprietary Rights of any third party, provided that IGS' sole remedy for breach
of the warranty in this clause (ii) shall be IGS' rights under Section 15.
EXCEPT AS EXPRESSLY AND UNAMBIGUOUSLY SET FORTH IN TIES SECTION 13, RSS MAKES NO
WARRANTIES TO ANY PERSON OR ENTITY WITH RESPECT TO ANY PRODUCTS, *** TECHNOLOGY
OR DOCUMENTATION OR ANY PORTION OR DERIVATIVE WORK THEREOF OR ANY SERVICES OR
LICENSES AND HEREBY DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE AND NONINFRINGEMENT.

          14.  Limited Liability. NOTWITHSTANDING ANYTHING ELSE IN THIS
               -----------------
AGREEMENT OR OTHERWISE (EXCEPT SECTION 15 BELOW), NEITHER PARTY WILL BE LIABLE
WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT,
NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR (I) ANY
SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES OR LOST DATA, (II) COST OF
PROCUREMENT OF SUBSTITUTE GOODS, TECHNOLOGY OR SERVICES, (III) ANY AMOUNTS IN
EXCESS IN THE AGGREGATE OF

*** CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

                                      11
<PAGE>

THE MILESTONE PAYMENTS ACTUALLY PAID TO RSS BY IGS PURSUANT TO SECTION 10.2
ABOVE, OR (IV) ANY MATTER BEYOND ITS REASONABLE CONTROL.

          15.  Indemnification.  Each party shall indemnify, defend and hold
               ---------------
the other party and its officers, directors, agents and employees harmless from
liability, damages, costs, and attorneys' fees, if any, finally awarded in any
suit or the amount of the settlement thereof resulting from any third party
claim that the *** Technology or Derivative Works thereof created by or for RSS
(in the case of RSS) or IGS Chip, IGS Software or Derivative Works thereof or
other deliverable created by or for IGS (in the case of IGS) infringes any
United States patent, copyright or trademark or misappropriates any trade
secret, provided that: (i) the indemnifying party is promptly notified of any
and all threats, claims and proceedings related thereto, (ii) the indemnifying
party shall have sole control of the defense and/or settlement thereof, (iii)
the indemnified party furnishes to the indemnifying party upon the indemnifying
party's request and expense, information reasonably available to the indemnified
party for such defense, and (iv) the indemnified party provides the indemnifying
party with reasonable assistance. Neither party shall admit any such claim
without prior written consent of the other party. Neither party shall have any
obligation under this Section 15 with respect to any *** Technology, IGS Chip,
IGS Software or any portion, component or Derivative Works of the foregoing (a)
not supplied by the indemnifying party, (b) made in whole or in part in
accordance with the indemnified party's specifications, (c) that are modified
after delivery by the indemnifying party, if the alleged infringement relates to
such modification, (d) combined with other products, processes or materials
where the alleged infringement relates to such combination, (e) where the
indemnified party continues allegedly infringing activity after being notified
thereof or after being informed of modifications that would have avoided the
alleged infringement and such modifications are not fully implemented, or (f)
where the indemnified party's use of the *** Technology, IGS Chip, IGS Software
or Derivative Work thereof is not strictly in accordance with the licenses
granted herein.

          16.  Confidentiality.
               ---------------

               16.1  Each party ("disclosing party") may, from time to time, in
connection with performance under this Agreement, disclose confidential
information ("Confidential Information") to the other party ("receiving party").
Each recipient party agrees not to use (other than for purposes contemplated by
this Agreement), and will use reasonable efforts to prevent the disclosure to
third parties of, any of the disclosing party's Confidential Information that is
identified as confidential at the time of disclosure and is provided in tangible
form marked "confidential" or "proprietary" (or is reduced to such form within
thirty (30) days after oral disclosure). All RSS Software, Source Code, Verilog
Source Code and Derivative Works of any of the foregoing provided by RSS is
hereby identified and marked as RSS' Confidential Information. The IGS Chip, IGS
Software and Derivative Works provided by IGS are hereby identified as IGS'
Confidential Information. The recipient party's confidentiality obligation
hereunder shall not apply to information that the recipient party can document:

                     (i)  was in the recipient party's possession or known by it
prior to receipt from the disclosing party;

*** CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

                                      12
<PAGE>

               (ii)   is or (through no fault of the recipient party or any of
its employees, contractors, agents or licensees) becomes generally available to
the public;

               (iii)  is rightfully disclosed to the recipient party by a third
party having no obligations of confidentiality to the disclosing party, provided
the recipient party complies with any restrictions imposed by the third party;

               (iv)   is independently developed by the recipient party without
use of or reference to the disclosing party's Confidential Information; or

               (v)    is required by law or regulation to be disclosed
(including, without limitation, in connection with SEC filings), provided that
the recipient party uses reasonable efforts to restrict disclosure and to obtain
confidential treatment therefor.

          16.2 Each recipient party acknowledges and agrees that due to the
unique nature of the disclosing party's Confidential Information, there can be
no adequate remedy at law for any breach of its obligations hereunder, that any
such breach may allow the recipient party or third parties to unfairly compete
with the disclosing party resulting in irreparable harm to the disclosing party
and, therefore, that upon any such breach or threat thereof, the disclosing
party shall be entitled to injunctive relief and other appropriate equitable
relief in addition to whatever remedies it may have at law, and to be
indemnified by the recipient party from any loss or harm (including, without
limitation, attorneys' fees) in connection with any breach or enforcement of the
recipient party's obligations hereunder or the unauthorized use or release of
any Confidential Information. The recipient party will notify the disclosing
party in writing immediately upon the occurrence of any such unauthorized
release or other breach of which it is aware.

     17.  Term and Termination.
          --------------------

          17.1  This Agreement shall commence on the Effective Date and shall
remain in effect until terminated.

          17.2  This Agreement will terminate:

                (a)  upon thirty (30) days (ten (10) days in the case of
nonpayment) prior written notice if IGS shall be in breach or default of any
material obligation under this Agreement; provided however, IGS may avoid such
termination if, before the end of such notice period, it cures such breach;

                (b)  immediately if IGS ceases to do business, or otherwise
terminates its business operations;

               (c)  immediately if IGS seeks protection under any bankruptcy,
receivership, trust deed, creditors arrangement, composition or comparable
proceeding, or if any such proceeding is instituted against IGS (and not
dismissed within sixty (60) days); or

               (d)  immediately if IGS is unable to grant RSS the AGP Technology

                                      13
<PAGE>

license specified in Section 3.1(a).

          17.3  Neither party shall incur any liability whatsoever for any
damage, loss or expenses of any kind suffered or incurred by the other (or for
any compensation to the other) arising from or incident to any termination of
this Agreement by such party which complies with the terms of the Agreement
whether or not such party is aware of any such damage, loss or expenses.

          17.4  Upon termination of this Agreement by either party: (i) all
rights and licenses granted hereunder shall immediately terminate, except that
licenses to end user customers for the use of the RSS Software, Documentation,
IGS Chip and IGS Software pursuant to this Agreement shall continue in
accordance with the applicable end user agreements therefor; (ii) IGS will
immediately return to RSS all *** Technology and all materials relating to ***
Technology or portion(s) thereof and all RSS Confidential Information in IGS'
possession, custody or control in whatever form held (including all copies or
embodiments thereof), except that IGS may maintain one (1) copy of the RSS
Software solely to the extent necessary to support its installed base of
customers for the CyberPro3000 Products and Unencrypted Verilog Based Products;
and (iii) except to the extent expressly provided to the contrary in this
Agreement, all rights to payment (including, without limitation, milestone
payments and royalties) and the following provisions shall survive the
termination of this Agreement: Sections 4, 7, 9.1, 9.3, 10.5, 12.1(a), (c) &
(d), 12.2(a) and 13 through 20, inclusive.

          17.5  Termination is not the sole remedy under this Agreement and,
whether or not termination is effected, all other remedies will remain
available.

     18.  Export Requirements. IGS agrees to comply with the U.S. Foreign
          -------------------
Corrupt Practices Act (regarding, among other things, payments to government
officials) and all export laws, restrictions, national security controls and
regulations of the United States and all other applicable foreign agencies and
authorities, and not to export or re-export, or allow the export or re-export
of, any CyberPro3000 Product, Unencrypted Verilog Based Product, *** Technology
or Documentation or any copy or direct product thereof (a) in violation of any
such restrictions, laws or regulations or (b) without all required licenses and
proper authorizations, to Cuba, Libya, North Korea, Iran, Iraq or Rwanda or to
any Group D or E country (or any national of such country) specified in the then
current Supplement No. 1 to part 740 of the U.S. Export Administration
Regulations (or any successor supplement or regulations). IGS shall promptly
execute any documents required by U.S. export requirements and demonstrate upon
demand to RSS its compliance with such requirements. IGS shall obtain and bear
all expenses relating to any licenses, exemptions and other requirements with
respect to the export from the U.S. of any and all CyberPro3000 Products,
Unencrypted Verilog Based Products, *** Technology, Documentation, information,
materials or items deliverable by RSS hereunder to any location and shall
demonstrate to RSS compliance with all applicable laws and regulations prior to
export thereof.

     19.  Assignment. Neither this Agreement nor any rights, licenses or
          ----------
obligations hereunder, may be assigned by either party without the prior written
approval of the non-assigning party. Notwithstanding the foregoing, either party
may assign this Agreement (with no rights or obligations retained by the
assignor) to any acquiror of all or substantially all of such party's stock

*** CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

                                      14
<PAGE>

assets or business to which this Agreement relates. The provisions of this
Agreement shall inure to the benefit of, and be binding upon, RSS and IGS and
their respective successors and permitted assigns.

     20.  Miscellaneous.
          -------------

          20.1  Entire Agreement: Amendment.  This Agreement (and all
                ---------------------------
Attachments hereto) constitutes the entire and only agreement between the
parties relating to the subject matter hereof, and supersedes all other prior
negotiations, representations, understandings and agreements. No agreements
amending, modifying or supplementing the terms hereof shall be effective except
by means of a written document signed by the duly authorized representatives of
both parties.

          20.2  Notices. All notices, consents, or approvals required by this
                -------
Agreement shall be in writing and shall be deemed given five (5) days after
being sent by certified or registered air mail, postage prepaid, or when
received after being sent by facsimile (confirmed by such certified or
registered mail) or by commercial overnight courier service with tracking
capabilities, to the parties at the addresses below or such other addresses as
may be designated in writing by the respective parties pursuant to the terms of
this notice provision:

     To RSS:

          Reality Simulation Systems Acquisition Corporation
          1020 Ashbury St.
          San Jose, CA 95126
          Attn:  Sandeep Gupta

     To IGS:

          InteGraphics Systems, Inc.
          4001 Burton Drive
          Santa Clara, CA 95054
          Attn:  Kenny Liu

          20.3  Governing Law and Legal Accounts.  This Agreement shall be
                --------------------------------
governed by and construed under the laws of the State of California and the
United States, without regard to the conflicts of laws provisions thereof and
without regard to the United Nations Convention on the International Sale of
Goods. In any action or proceeding to enforce rights under this Agreement, the
prevailing party shall be entitled to recover its costs and attorneys' fees.

          20.4  Arbitration.  Except that either party may seek equitable or
                -----------
similar relief from a court, any dispute, controversy or claim arising out of or
in relation to this Agreement or at law, or the breach, termination or
invalidity thereof, that cannot be settled amicably by agreement of the parties
hereto, shall be finally settled by arbitration in accordance with the
arbitration rules of the American Arbitration Association ("AAA"), then in force
by one or more qualified, independent arbitrators appointed in accordance with
said rules; provided, however, that arbitration proceedings

                                      15
<PAGE>

may not be instituted until the party alleging breach of this Agreement by the
other party has given the other party not less than thirty (30) days to remedy
any alleged breach and the other party has failed to do so. The arbitration will
take place in San Jose, California. The award rendered shall be final and
binding upon both parties. Judgment upon the award may be entered in any court
having jurisdiction, or application may be made to such court for judicial
acceptance of the award and/or an order of enforcement as the case may be.

     20.5  Waiver.  The failure of a party to enforce a right under this
           ------
Agreement shall not act as a waiver of that right or the ability to assert that
right relative to the particular situation involved. The waiver by either party
of a breach of any provisions contained in this Agreement shall be effective
only if set forth in a writing signed by both parties and shall in no way be
construed as a waiver of any succeeding breach of such provision or the waiver
of the provision itself.

     20.6  Headings.  Headings included herein are for convenience only and
           --------
shall not used to interpret or construe this Agreement.

     20.7  Severability.  If any provision of this Agreement shall be held void,
           ------------
invalid, illegal or unenforceable, that provision shall be limited or eliminated
to the minimum extent necessary so that this Agreement shall otherwise remain in
full force and effect and enforceable.

     20.8  Remedies; Injunctive Relief. Except as otherwise expressly provided,
           ---------------------------
rights and remedies of a party set forth herein with respect to failure of the
other party to comply with the terms of this Agreement are not exclusive, the
exercise thereof shall not constitute an election of remedies and the aggrieved
party shall in all events be entitled to seek whatever additional remedies may
be available in law or in equity (including, without limitation, appropriate
injunctive relief).

     20.9  Nonsolicitation.  During the term of this Agreement and for a
           ---------------
period of one (1) year after the termination or expiration of the Agreement,
neither party shall, directly or indirectly, solicit the employment or services
of any employee of the other party, or encourage employees to leave the employ
of the other party.

     20.10 No Joint Venture.  Nothing in this Agreement shall be deemed or
           ----------------
construed as creating a joint venture or partnership between the parties. Except
as expressly set forth, no party is by virtue of this Agreement authorized as an
agent, employee or legal representative of any other party, and the relationship
of the parties is, and at all times shall continue to be, that of independent
contractors.

     20.11 Further Assurances. Each party agrees to cooperate fully with the
           ------------------
other party and to execute such further instruments, documents and agreements
and to give such further written assurances, as may be reasonably requested by
the other party, to better evidence and reflect the transactions described in
and contemplated by this Agreement, and to carry into effect the intents and
purposes of this Agreement.

                                      16
<PAGE>

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

            IN WITNESS WHEREOF, the parties have caused their duly authorized
representatives to execute this Agreement as of the Effective Date.

REALITY SIMULATION SYSTEMS ACQUISITION          INTEGRAPHICS SYSTEMS, INC.
CORPORATION

By: /s/ Sandeep Gupta                           By  /s/ Kenny Liu
    -----------------------------------            -----------------------------
Name:  Sandeep Gupta                            Name: Kenny Liu
      ---------------------------------               --------------------------
Title: President                                Title: CEO/President
       --------------------------------                -------------------------

                                      17
<PAGE>

                                 ATTACHMENT A

AGP Technology Specification:
[to be provided]

IGS Chip Specification:
[to be provided]

IGS Software Specification:
[to be provided]

RSS Software Specification:
[to be provided]

                                      18
<PAGE>

                                 ATTACHMENT B

                             CYPERPRO3000 PRODUCTS

                               [to be provided]

                                      19
<PAGE>

ATTACHMENT B                                                      [***(TM) Logo]
------------
                                                   2D/3D/Video Graphics Chip
PRELIMINARY

<TABLE>
<CAPTION>
Features                                     High Performance 3D Rendering Engine
<S>                                          <C>
3-D Rendering Engine                         The 30 Rendering Engine is based on the ***(TM) which performs many of the 3D operation
                                             such as polygon setup, rasterization, and texturing on chip resulting in minimal
 .  On-chip polygon setup                     overhead on the host processor to deliver outstanding texture mapped graphics. The
 .  16-bit Z visibility                       patented rendering engine utilizes and takes advantage at a no Z-buffer memory
 .  Bilinear filtering                        architecture, increasing the resolution and amount of textures that can be stored in
 .  RGB lighting                              any given memory configuration.
 .  Gouraud Color Interpolation
 .  Per Pixel Fog and Depth Cues              Superb 2D 64-bit Graphics Accelerator
 .  Perspective-correct Interpolation
 .  100 million textured pixels/sec,           ***(TM) includes a glueless solution for simple, efficient, cost effective high
   bilinear MIP-mapped*                       performance graphics subsystem design for PCI bus systems. The integrated 230 MHz 24-
 .  800 thousand polygons/sec,                 bit true color DAC dual programmable clocks, write FIFO and dual command FIFO's reduce
   10 pixel-polygons. RGB lighting,           system cost while optimizing memory bandwidth for maximum graphics performance.
   alpha, floating point (API natural)
   input*                                     Flicker-Free TV Direct(TM) Output

2D 64-bit Accelerator                         The ***(TM) incorporates a flicker-free technology, vertical scaling and an integrated
                                              TV encoder on-chip for true TV quality output.
 .  64-bit GUI engine
 .  230MHz RAMDAC, dual clock                  Since the TV screen does not display as many vertical lines as a VGA monitor, scaling
 .  Supports up to 1600x1200x256               is implemented to avoid losing information when lines are dropped. The data from the
   colors, True color & 90Hz up to            lines which are eliminated during scaling is incorporated into adjacent lines, thus
   1280x1024                                  avoiding a loss of data.
 .  VESA DDC28, DPMS support
 .  WINBench97 @ 1024x768                      Fig. 1 - ***(TM) Chip Block Diagram
   Pentium 200MHz: 90 (est.)*

TVDirect(TM) Output                                                              [GRAPHIC OMITTED]

 .  Low cost Accelerator with
   on-chip digital NTSC/PAL
   encoder
 .  Proprietary non-linear 3 line
   flicker-free filtering.
 .  Enhanced TV text & video quality
   with 9-bit DAC
 .  NTSC (800x600/640x480x60Hz),
   PAL (800x600/640x480x60Hz)
 .  Underscan, overscan, positioning,
   & TV auto-detect
 .  Requires only a single crystal for
   NTSC/PAL output.
 .  Support for SCART output.
 .  S-video/Composite direct TV
   output
 .  Simultaneous & different
   resolution/color/refresh rate VGA
   & TV outputs
 .  Supports Macrovision(TM) 7.01

* Mileage might vary depending on
  actual system implementation
</TABLE>

                                 CONFIDENTIAL

*** CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

                                       20
<PAGE>

                                                                  [***(TM) Logo]
                                                   2D/3D/Video Graphics Chip

<TABLE>
<CAPTION>
PRELIMINARY
<S>                                                    <C>
Video Editing/Conferencing                             Better Video Capture Quality

 .  3 scaleable video, windows plus                     Video phone and video conferencing can capture very high quality video
   PIP                                                 through the video port and the hardware filter. The filter averages the
 .  High Quality multi-tap filtering                    scaled down video for better quality before minifying for capture. The
   during video capture.                               ***(TM) will support both CCIR601 RGB and YUV formats as well as CCIR656 8
 .  H/V Interpolation with edge                         and 16-bit interfaces.
   smoothing
 .  Mirror/upside down support for                      Enhanced Triple Video Windows
   Video Conferencing
 .  Filtering during down scaling &                     The ***(TM) supports hardware assisted three independently scaleable video
   video capture                                       windows enabling video phone and video conferencing applications.

Flexible Video Inputs                                  Where necessary, the video is scaled with interpolation and displayed for
                                                       better video quality. This multimedia chip provides excellent video and
 .  VBI, Intercast Teletext & closed                    playback when scaling from 32x32 icon size to full screen because it supports
   caption support                                     both horizontal and vertical interpolation along with edge smoothing
 .  Support for CCIR601/656, YUV                        technologies for jagged edges, In addition, it eliminates the combing effect
   411/420/422                                         of rapid movement. When video is scaled down, the video is filtered and
 .  Direct Interface for popular                        either captured or displayed at a much higher quality.
   NTSC/PAL decoders

Multiplatform Support
                                                       Table 1 - Supported 3D Resolutions*
 .  Intel(TM), Cyrix(TM), and
   AMD (TM)                                                                     [GRAPHIC OMITTED]
 .  PowerPC(TM)
                                                                       FB           2MB                4MB                8MB
Drivers & Software                                                                    Texture             Texture            Texture
                                                       Resolutions    bpp   Supported   MEM     Supported   MEM   Supported    MEM
 .  Microsoft DirectX(TM)                               -----------------------------------------------------------------------------
 .  Apple QuickDraw3D(TM) RAVE                          640x480        18       X        848        X       2,896      X       6,992
 .  BIOS                                                               24       X        248        X       2,296      X       6,392
                                                                      32                           X       1,696      X       5,792
Documentation                                          -----------------------------------------------------------------------------
                                                       800x600        18       X        173        X       2,221      X       6,317
 .  Technical Manual                                                   24                           X       1,284      X       5,380
                                                                      32                           X         346      X       4,442
Reference Board                                        -----------------------------------------------------------------------------
                                                       1024x768       18                           X       1,024      X       5,120
 .  Reference Design Board                                             24                                              X       3,584
                                                                      32                                              X       2,048
RSSI                                                   -----------------------------------------------------------------------------
2355 Old Oakland Road, Suite #4                        1280x1024      18                                              X       3,072
SAN JOSE, CA 95131                                                    24                                              X         512
PH: 408-955-9663                                                      32
FX 408-955-9671
                                                       * Includes single-butter, double-buffer, z -butter with remaining texture map
http://www.simsys.com                                  storage as shown above (kB).
                                                       x Not supported by traditional 2D/3D chips.
RSSI assumes no responsibility or liability
for any errors or errors contained in this
document. This includes any claim for
\copyright or patent infringement or direct,
indirect, special or consequential damages.
The information herein is subject to
change without notice from RSSI.

AD trademark and registered trademarks
are property of their respective owners.

Glossy rev. 004 06/97 - EH01
</TABLE>

                                 CONFIDENTIAL

*** CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

                                       21
<PAGE>

                                 ATTACHMENT C

                           PLATFORMS AND TERRITORIES

As used herein, "Network Computer" and "Settop" shall mean consumer information
appliances based on Java or a real time operating system using embedded central
processing units and a television as a primary display.

IGS market:
--------------------------------------------------------------------------------
Platform                                Territories
--------------------------------------------------------------------------------

Settop                                  Europe
Network Computer                        Hong Kong
Laptop Computer                         Japan
                                        Malaysia
                                        Singapore
                                        Taiwan
                                        PRC
                                        Korea
--------------------------------------------------------------------------------
RSS Market:
--------------------------------------------------------------------------------
Platform                                Territories
--------------------------------------------------------------------------------
All MAC OS accounts                     N. American PC desktop accounts
--------------------------------------------------------------------------------

                                       22
<PAGE>

                                 ATTACHMENT D

                              MILESTONE SCHEDULE

           ------------------------------------------------------
                  Milestone                      Target Date
           ------------------------------------------------------
            Execution of Agreement               June 1, 1997
            Test Sample sign-off                 July 31, 1997
            Commercial Production Release       October 31, 1997
           ------------------------------------------------------

                                       23
<PAGE>

                                 ATTACHMENT E

                                *** TECHNOLOGY

<TABLE>
<S>                                            <C>
 .  Triangle, Line, Point rendering             Input display list can include all basic 3D primitives.
 .  Setup from floating point coordinates       No driver overhead for reformatting data
 .  Perspective correct interpolation           All values, including Z
 .  RGB per-pixel lighting                      Allows colored lights
 .  STMA interpolation per-pixel                Texture plus MIP-map level and alpha-transparency
 .  Specular Lighting                           Best quality lighting enabled by API's
 .  Point/Linear/Bilinear filtering             Fast and High-quality texturing modes
 .  24-bit Z buffer                             Flexible Z-outputs for apps that read Z buffer
 .  Alpha channel mixing (translucency)         No front-back sorting required
 .  Oversampling anti-aliasing                  Reduces "jaggies" on edges of triangles and lines
 .  Anisotropic texturing                       Better filtering than tri-linear
 .  Sub-pixel accuracy                          No texture jitter
 .  Source color keying                         For textures with transparent texels
 .  Multiple texture palettes                   Compact high quality textures
</TABLE>

*** CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

                                       24The Tirex Corporation Stock Plan

                                    Article I
                                    The Plan

     1.1.   NAME. This plan shall be known as "The Tirex Corporation Stock
Plan."

     1.2.   PURPOSE. The purpose of the Plan is to advance the interests of the
Company and its shareholders by affording to key personnel of the Company,
consultants and other persons who have made substantial contributions to the
Company an opportunity to acquire or increase their proprietary interest in the
Company by the issuance to such individuals of Awards, Options or Grants under
the terms set forth herein. By thus encouraging such individuals to become
owners of Company shares, the Company seeks to motivate, retain, and attract
those highly competent individuals upon whose judgment, initiative, leadership,
and continued efforts the success of the Company in large part depends.

     1.3.   EFFECTIVE DATE. The Plan shall become effective upon approval by the
Board.

                                   Article II
                                   Definitions

     As used herein, the following terms have the meanings hereinafter set forth
unless the context clearly indicates to the contrary:

     (A) "Company" shall mean The Tirex Corporation.

     (B) "Plan" shall mean The Tirex Corporation Stock Plan, the terms of which
are set forth herein.

     (C) "Stock" shall mean the Common Stock of the Company or, in the event
that the outstanding shares of Stock are hereafter changed into or exchanged for
shares of a different class of securities of the Company or some other
corporation, such other stock or securities.

     (D) "Board" shall mean the Board of Directors of the Company.

     (E) "Committee" shall mean the Compensation Committee of the Company.

     (F) "Award(s)" shall mean an award or awards of Stock pursuant to the
provisions of Article VI hereof.

     (G) "Awardee" shall mean an individual to whom an Award has been granted
hereunder.

     (H) "Option(s)" shall mean an option or options to purchase Stock pursuant
to the provisions of Article VII hereof.

     (I) "Optionee" shall mean an individual to whom an Option has been granted
hereunder.

     (J) "Grant(s)" shall mean a grant or grants of Stock pursuant to the
provisions of Article VIII hereof.

     (K) "Grantee" shall mean an individual to whom a Grant has been made
hereunder.

                                       1
<PAGE>
                                  Article III
                                  Participants

     3.1. ELIGIBILITY. Subject to the express provisions of the Plan, any
permanent salaried employee, officer, director or consultant and any other
individual designated pursuant to this Plan, who renders financial, legal,
managerial, technical or professional services to or for the benefit of the
Company shall be eligible to participate in the Plan. While all such individuals
are eligible to participate in the Plan, it is contemplated that only the
individuals who perform special or extraordinary services to the Corporation
will receive Awards, Options or Grants under this Plan.

                                   Article IV
                                 Administration

     4.1. DUTIES AND POWERS OF THE BOARD. The Plan shall be administered by the
Board unless delegated as provided for herein to the Compensation Committee.
Subject to the express provisions of the Plan, the Board shall have the
authority to determine from among eligible individuals those to whom, and the
time or times at which, Awards, Options or Grants may be issued and the number
of shares of Stock to be subject to each Award, Option or Grant. Subject to the
express provisions of the Plan, the Board shall also have authority to interpret
the Plan, to prescribe, amend, and rescind rules and regulations relating to it,
and to make all other determinations necessary or advisable in the
administration of the Plan.

     4.2. MAJORITY RULE. A majority of the members of the Board shall constitute
a quorum, and any action taken by a majority present at a meeting at which a
quorum is present, or any action taken without a meeting evidenced by a writing
executed by a majority of the whole Board, shall constitute the action of the
Board.

     4.3 COMPENSATION COMMITTEE. The Board of Directors may form a committee of
no less than three (3) of its members to exercise its right and assume all of
its duties proscribed hereunder including the awarding of grants awards and
options.

                                    Article V
                         Shares of Stock Subject to Plan

     5.1. LIMITATIONS. The maximum number of shares of Stock that may be issued
as an Award under Article VI herein is seven million (7,000,000), the maximum
number of shares of Stock that may be subject to an Option under Article VII
herein is seven million (7,000,000) and the maximum number of shares of Stock
that may be issued as a Grant under Article VIII herein is seven million
(7,000,000), subject to adjustment pursuant to the provisions of Article V,
Section 5.3 herein. Such shares of Stock may be either authorized and unissued
Stock or Stock issued and thereafter reacquired by the Company.

                                       2
<PAGE>

     5.2. AWARDS AND OPTIONS ISSUED UNDER PLAN. If Stock issued as an Award is
reacquired by the Company, or if an Option terminates for any reason without
being wholly exercised, new Awards or Options may be issued hereunder covering
the number of shares of Stock to which such reacquisition or termination
relates.

     5.3. ANTI-DILUTION. In the event that the outstanding shares of Stock are
hereinafter changed into or exchanged for a different number or kind of shares
or other securities of the Company or of another corporation by reason of
merger, consolidation, other reorganization, recapitalization, reclassification,
combination of shares, stock split up, or stock dividend:

          (A) The aggregate number and kind of shares of Stock subject to
Awards, Options and Grants which may be issued hereunder shall be adjusted
appropriately;

          (B) Rights under outstanding Options granted hereunder, both as to the
number of subject shares of Stock and the Option price, shall be adjusted
appropriately;

          (C) Where dissolution or liquidation of the Company or any merger or
combination in which the Company is not a surviving corporation is involved,
each outstanding Option granted hereunder shall terminate, but the Optionee
shall have the right, immediately prior to such dissolution, liquidation,
merger, or combination, to exercise his/her Option in whole or in part, to the
extent that it shall not have been exercised;

          (D) Such new, additional or different shares or securities which are
distributed to an Awardee, in his/her capacity as the owner of Stock issued as
an Award under Article VI herein, or to an Optionee, in his/her capacity as the
owner of Stock acquired by exercise of an Option under Article VII herein, shall
be subject to all the conditions and restrictions applicable to Stock as herein
provided; and

          (E) The foregoing adjustments and the manner of application of the
foregoing provisions shall be determined solely by the Board or Compensation
Committee and any such adjustment may provide for the elimination of fractional
share interests.

                                   Article VI
                                     Awards

     6.1. AWARD. Each Award granted hereunder shall be evidenced by minutes of a
meeting or the written consent of the Board.

     6.2. PARTICIPATION LIMITS. An Awardee must be in the employ of the Company
as an officer or director of, or consultant to, the Company for at least six (6)
months prior to receiving an Award hereunder.

                                       3
<PAGE>

     6.3. FORFEITABILITY OF STOCK. All shares of Stock issued as an Award under
the provisions of this Article VI are subject to being forfeited, with
one-twelfth (1/12) vesting at the end of each quarter from the date of the
award. All unvested shares of Stock issued as an Award shall be forfeited and
returned to the Company upon the termination of employment of the Awardee with
the Company. With respect to shares of Stock issued as an Award to a consultant
who is not an employee, the Board, at the time of the Award, shall establish a
performance index directly related to the services to be performed by the
consultant. The unvested shares of Stock issued as an Award to an Awardee who is
a consultant shall be forfeited and immediately returned to the Company upon the
failure to satisfy or the violation of such performance index.

     6.4. TRANSFER OF STOCK. All unvested shares of Stock issued as an Award
under this Article VI may not be sold, transferred, assigned, alienated or
hypothecated.

     6.5. CERTIFICATES. Stock certificates evidencing shares of Stock shall be
issued in the sole name of the Awardee and delivered to him, and each such
certificate shall bear the following legend:

     "The shares of The Tirex Corporation common stock evidenced by
     this certificate are subject to the terms and provisions of The
     Tirex Corporation Stock Plan and may not be sold or transferred
     except pursuant to the provisions therein."

     6.6. RIGHTS AS SHAREHOLDER. Subject to the provisions of Section 6.3
herein, upon issuance of a certificate for an Award of Stock hereunder, the
Awardee shall have the rights of a shareholder with respect to such Stock,
including the right to vote the shares of Stock and receive all dividends and
other distributions paid or made with respect thereto.

     6.8 FORFEITABILITY. In the event an Awardee is dismissed for cause or
resigns prior to the expiration of holding period set forth in Section 6.3
hereof, such award, or part thereof, will become null and void and will be
cancelled on the books of the Company, and all certificates and documents shall
be returned by the Awardee to the Company.

                                       4
<PAGE>

                                   Article VII
                                     Options

     7.1. OPTION GRANT AND AGREEMENT. Each option granted hereunder shall be
evidenced by minutes of a meeting or the written consent of the Board or
Compensation Committee and by a written Stock Option Agreement dated as of the
date of grant and executed by the Company and the Optionee, which Agreement
shall set forth such terms and conditions as may be determined by the Board or
Committee consistent with the Plan.

     7.2. PARTICIPATION LIMITS. An Optionee must be in the employ of the Company
as an employee, officer or director of, or consultant to the Company for at
least six (6) months prior to the grant of an Option to acquire Stock hereunder.

     7.3. EXERCISE PRICE. The Option exercise price per share of Stock
underlying each Option shall be determined by the Board or Committee. The
exercise price shall be paid in cash, or on such other terms as the Board
otherwise determines. The Optionee shall pay all withholding tax liability with
respect to the exercise of any Option hereunder, if any.

     7.4. OPTION PERIOD. The period for the exercise of each Option shall
commence immediately upon the date of the grant of the Option and the expiration
date of each Option shall be two (2) years from the date of the grant of the
Option.

     7.5. OPTION EXERCISE. An Option shall be deemed exercised upon the delivery
to the Company at its principal office, of the Optionee's written notice of
intent to exercise the Option, which notice shall specify the number of shares
to which the exercise relates, accompanied by payment in full for all shares of
Stock.

     7.6. NONTRANSFERABILITY OF OPTION. No Option shall be transferred by an
Optionee other than by will or the laws of descent and distribution, subject to
Section 7.7 below. During the lifetime of an Optionee the Option shall be
exercisable only by him.

     7.7. EFFECT OF DEATH. Notwithstanding anything contained herein to the
contrary, if the Optionee shall die prior to the date the Option is exercised,
then within sixty (60) days of the date of the Optionee's death, the Optionee's
estate shall have the right to exercise the decedent's unexercised Option for
that number of shares of Stock which bears the same ratio as the number of whole
calendar months from the date of the grant of the Option to the date of the
Optionee's death bears to twenty_four (24).

     7.8. RIGHTS AS SHAREHOLDER. An Optionee or his/her estate, as the case may
be, shall have no rights as a shareholder with respect to any shares of Stock
underlying an Option until the Option is exercised as provided herein.

                                        5

<PAGE>

     7.9. FORFEITABILITY. In the event of termination of employment with the
Company of an Optionee prior to expiration of the Option, all unexercised
Options as of the date of termination shall be forfeited and immediately
returned to the Company.

                                  Article VIII
                                     Grants

     8.1. GRANT. Each Grant of Stock made hereunder shall be evidenced by
minutes of a meeting or the written consent of the Board or Committee, approving
of said grant.

     8.2. PARTICIPATION LIMITS. A Grantee must have made substantial
contributions and shown loyal dedication to the Company.

                                   Article IX
                Termination, Amendment and Modifications of Plan

     9.1. TERMINATION, AMENDMENT AND MODIFICATIONS OF THE PLAN. The Board may at
any time and from time to time terminate, amend or modify the Plan; provided,
however, that any termination, amendment or modification of the Plan shall in no
manner affect any Award, Option or Grant theretofore issued under the Plan
without the consent of the respective Awardee, Optionee or Grantee.

                                    Article X
                                  Miscellaneous

     10.1. EMPLOYMENT. Nothing in the Plan or in any Award, Option or Grant
issued hereunder or in any Stock Option or other related Agreement shall confer
upon any individual the right to be employed by, or continue in the employ of,
the Company.

     10.2. OTHER COMPENSATION PLANS. The adoption of the Plan shall not affect
any other stock option, incentive or other compensation plans of the Company,
nor shall the Plan preclude the Company from establishing any other forms of
incentive or other compensation for employees of the Company or other
individuals.

     10.3. PLAN BINDING ON SUCCESSORS. The Plan shall be binding upon the
successors and assigns_of the Company.

     10.4. SINGULAR, PLURAL, GENDER. Whenever used herein, nouns in the singular
shall include the plural, and the masculine pronoun shall include the feminine
gender.

     10.5. HEADINGS. The headings of Articles and Sections hereof are inserted
for convenience and do not constitute a part of the Plan.

                                        6

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