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                                                                   EXHIBIT 10.32

                         CONFIDENTIAL LICENSE AGREEMENT
                              FOR GAME BOY ADVANCE
                              (Western Hemisphere)

     THIS LICENSE AGREEMENT ("Agreement") is entered into between NINTENDO OF
AMERICA INC. ("NOA"), at 4820 150th Avenue N.E., Redmond, WA 98052 Attn:
General Counsel (Fax: 425-882-3585) and BAM Entertainment, Inc., ("LICENSEE")
at 333 West Santa Clara Street, Suite 930, San Jose, CA 95113, Attn: Ray Musci
(Fax: (408) 298-9600). NOA and LICENSEE agree as follows:

1.   RECITALS

     1.1  NOA markets and sells advanced design, high-quality video game
systems, including the GAME BOY(R) ADVANCE system.

     1.2  LICENSEE desires a license to use highly proprietary programming
specifications, development tools, trademarks and other valuable intellectual
property rights of NOA and its parent company, Nintendo Co., Ltd. (collectively
"Nintendo"), to develop, have manufactured, advertise, market and sell video
game software for play on the GAME BOY ADVANCE system.

     1.3  NOA is willing to grant a license to LICENSEE on the terms and
conditions set forth in this Agreement.

2.   DEFINITIONS

     2.1  "Artwork" means the design specifications for the Game Cartridge
label and Printed Materials in the format specified by NOA in the Guidelines.

     2.2  "Development Tools" means the development kits, programming tools,
emulators, and other materials that may be used in the development of Games
under this Agreement.

     2.3  "Effective Date" means the last date on which all parties shall have
signed this Agreement.

     2.4  "Finished Product(s)" means the fully assembled and shrink-wrapped
Licensed Products, each including a Game Cartridge, Game Cartridge label and
Printed Materials.

     2.5  "Game Cartridges(s)" means custom cartridges specifically
manufactured under the terms of this Agreement for play on the GAME BOY ADVANCE
system, incorporating semiconductor components in which a Game has been stored.

     2.6  "Game(s)" means interactive video game programs (including source and
object/binary code) developed for play on the GAME BOY ADVANCE system.

     2.7  "Guidelines" means the current version or any future revision of the
"Game Boy Packaging Guidelines", "Nintendo Trademark Guidelines", "Game Boy
Advance Development Manual" and related guidelines.

     2.8  "Independent Contractor" means any individual or entity that is not
an employee of LICENSEE, including any independent programmer, consultant,
contractor, board member or advisor.

     2.9  "Intellectual Property Rights" means individually, collectively or in
any combination, Proprietary Rights owned, licensed or otherwise held by
Nintendo that are associated with the development, manufacturing, advertising,
marketing or sale of the Licensed Products, including, without limitation, (a)
registered and unregistered trademarks and trademark applications used in
connection with video games for play on the GAME BOY ADVANCE system including
"Nintendo(R)", "GAME BOY(R) ADVANCE," "AGB" and the "Official Nintendo Seal of
Quality(R)", (b) select trade dress associated with the

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GAME BOY ADVANCE system and licensed video games for play thereon, (c)
Proprietary Rights in the Security Technology incorporated into the Game
Cartridges, (d) rights in the Development Tools for use in developing the
Games, (e) patents or design registrations associated with the Game Cartridges,
(f) copyrights in the Guidelines, and (g) other Proprietary Rights of Nintendo
in Confidential Information.

      2.10  "Licensed Products" means (a) Finished Products, or (b) Stripped
Products when fully assembled and shrink-wrapped with the Printed Materials.

      2.11  "Marketing Materials" means marketing, advertising or promotional
materials developed by or for LICENSEE (or subject to LICENSEE's approval) to
promote the sale of the Licensed Products, including, but not limited to,
television, radio and on-line advertising, point-of-sale materials (e.g.
posters, counter-cards), package advertising and print media or materials.

      2.12  "NDA" means the non-disclosure agreement providing for the
protection of Confidential Information related to the GAME BOY ADVANCE system
previously entered into between NOA and LICENSEE.

      2.13  "Notice" means any notice permitted or required under this
Agreement. All notices shall be sufficiently given when (a) personally served
or delivered, or (b) transmitted by facsimile, with an original sent
concurrently by first class U.S. mail, or (c) deposited, postage prepaid, with
a guaranteed air courier service, in each case addressed as stated herein, or
addressed to such other person or address either party may designate in a
Notice. Notice shall be deemed effective upon the earlier of actual receipt or
two (2) business days after transmittal.

      2.14  "Price Schedule" means the current version or any future revision
of NOA's schedule of purchase prices and minimum order quantities for the
Licensed Products.

      2.15  "Printed Materials" means the box, user instruction booklet,
poster, warranty card and LICENSEE inserts incorporating the Artwork, together
with a precautions booklet as specified by NOA.

      2.16  "Proprietary Rights" means any rights or applications for rights
owned, licensed or otherwise held in patents, trademarks, service marks,
copyrights, mask works, trade secrets, trade dress, moral rights and publicity
rights, together with all inventions, discoveries, ideas, technology, know-how,
data, information, processes, formulas, drawings and designs, licenses,
computer programs, software source code and object code, and all amendments,
modifications, and improvements thereto for which such patent, trademark,
service mark, copyright, mask work, trade secrets, trade dress, moral rights or
publicity rights may exist or may be sought and obtained in the future.

      2.17  "Reverse Engineer(ing)" means, without limitation, (a) the x-ray,
electronic scanning or physical or chemical stripping of semiconductor
components, (b) the disassembly, decompilation, decryption or simulation of
object code or executable code, or (c) any other technique designed to extract
source code or facilitate the duplication of a program or product.

      2.18  "Security Technology" means, without limitation, any security
signature, bios, data scrambling, password, hardware security apparatus,
watermark, hologram, copyright management information system or any feature
which facilitates or limits compatibility with other hardware or software
outside of the Territory or on a different video game system.

      2.19  "Stripped Product(s)" means the Game Cartridges with Game Cartridge
labels affixed.

      2.20  "Term" means three (3) years from the Effective Date.

      2.21  "Territory" means all countries within the Western Hemisphere and
their respective territories and possessions.

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3.   GRANT OF LICENSE; LICENSEE RESTRICTIONS

     3.1  Limited License Grant. For the Term and for the Territory, NOA grants
to LICENSEE a nonexclusive, nontransferable, limited license to use the
Intellectual Property Rights to develop Games for manufacture, advertising,
marketing and sale as Licensed Products, subject to the terms and conditions of
this Agreement. Except as permitted under a separate written authorization from
Nintendo, LICENSEE shall not use the Intellectual Property Rights for any other
purpose.

     3.2  LICENSEE Acknowledgement. LICENSEE acknowledges (a) the value of the
Intellectual Property Rights, (b) the right, title, and interest of Nintendo in
and to the Intellectual Property Rights, and (c) the right, title and interest
of Nintendo in and to the Proprietary Rights associated with all aspects of the
GAME BOY ADVANCE system. LICENSEE recognizes that the Games, Game Cartridges
and Licensed Products will embody valuable rights of Nintendo and Nintendo's
licensors. LICENSEE represents and warrants that it will not undertake any act
or thing which in any way impairs or is intended to impair any part of the
right, title, interest or goodwill of Nintendo in the Intellectual Property
Rights. LICENSEE's use of the Intellectual Property Rights shall not create any
right, title or interest of LICENSEE therein.

     3.3  LICENSEE Restrictions and Prohibitions. LICENSEE represents and
warrants that it will not at any time, directly or indirectly, do or cause to
be done any of the following:

          (a)  grant access to, distribute, transmit or broadcast a Game by
electronic means or by any other means known or hereafter devised, including,
without limitation, by wireless, cable, fiber optic, telephone lines,
microwave, radiowave, computer or other device network; provided, however, that
limited transmissions may be made for the sole purpose of facilitating
development under the terms of this Agreement, but no right of retransmission
shall attach to any such authorized transmission and, reasonable security
measures, customary within the high technology industry, shall be utilized to
reduce the risk of unauthorized interception or retransmission of any such
authorized transmission,

          (b)  authorize or permit any online activities involving a Game,
including, without limitation, multiplayer, peer-to-peer or online play,

          (c)  modify, install or operate a Game on any server or computing
device for the purpose of or resulting in the rental, lease, loan or other
grant of remote access to the Game,

          (d)  emulate, interoperate, interface or link a Game for operation or
use with any hardware or software platform, accessory, computer language,
computer environment, chip instruction set, consumer electronics device or
device other than the GAME BOY ADVANCE system or the Development Tools,

          (e)  embed, incorporate, or store a Game in any media or format
except the cartridge format utilized by the GAME BOY ADVANCE system, except as
may be necessary as a part of the Game development process under this Agreement,

          (f)  design, implement or undertake any process, procedure, program
or act designed to circumvent the Security Technology,

          (g)  utilize the Intellectual Property Rights to design or develop
any interactive video game program, except as authorized under this Agreement,

          (h)  manufacture or reproduce a Game developed under this Agreement,
except through Nintendo, or

          (i)  Reverse Engineer or assist in the Reverse Engineering of all or
any part of the GAME BOY ADVANCE system, including the hardware or software
(whether embedded or otherwise), or the Security Technology.

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     3.4  Development Tools. Nintendo may lease, loan or sell Development Tools
to LICENSEE to assist in the development of Games under this Agreement.
Ownership and use of any Development Tools provided to LICENSEE by Nintendo
shall be subject to the terms of this Agreement. LICENSEE acknowledges the
exclusive interest of Nintendo in and to the Proprietary Rights associated with
the Development Tools. LICENSEE's use of the Development Tools shall not create
any right, title or interest of LICENSEE therein. LICENSEE shall not, directly
or indirectly, (a) use the Development Tools for any purpose except the design
and development of Games under this Agreement, (b) reproduce or create
derivatives of the Development Tools, except in association with the
development of Games under this Agreement, (c) Reverse Engineer the Development
Tools, or (d) sell, lease, assign, lend, license, encumber or otherwise
transfer the Development Tools. Any tools developed or derived by LICENSEE as a
result of a study of the performance, design or operation of the Development
Tools shall be considered derivative works of the Intellectual Property Rights,
but may be retained and utilized by LICENSEE in connection with this Agreement.
In no event shall LICENSEE (i) seek, claim or file for any patent, copyright or
other Proprietary Right with regard to any such derivative work, (ii) make
available any such derivative work to any third party, or (iii) use any such
derivative work except in connection with the design and development of Games
under this Agreement.

4.   SUBMISSION OF GAME AND ARTWORK FOR APPROVAL

     4.1  Development and Sale of the Games. LICENSEE may develop Games and
have manufactured, advertise, market and sell Licensed Products for play on the
GAME BOY ADVANCE system only in accordance with this Agreement.

     4.2  Third Party Developers. LICENSEE shall not disclose the Confidential
Information, the Guidelines or the Intellectual Property Rights to any
Independent Contractor, nor permit any Independent Contractor to perform or
assist in development work for a Game, unless and until such Independent
Contractor has been approved by NOA and has executed a written confidentiality
agreement with NOA relating to the GAME BOY ADVANCE system.

     4.3  Delivery of Completed Game. Upon completion of a Game, LICENSEE shall
deliver a prototype of the Game to NOA in a format specified in the Guidelines,
together with written user instructions, a complete description of any security
holes, backdoors, time bombs, cheats, "easter eggs" or other hidden features or
characters in the Game and a complete screen text script. NOA shall promptly
evaluate the Game with regard to (a) its technical compatibility with and
error-free operation on the GAME BOY ADVANCE system, and (b) its compliance
with the game content guidelines of the Entertainment Software Ratings Board
("ESRB"). LICENSEE shall provide NOA with a certificate of a rating for the
Game from the ESRB other than "AO" or "ADULTS ONLY".

     4.4  Approval of Completed Game. NOA shall, within a reasonable period of
time after receipt, approve or disapprove each submitted Game. If a Game is
disapproved, NOA shall specify in writing the reasons for such disapproval and
state what corrections or improvements are necessary. After making the
necessary corrections or improvements, LICENSEE shall submit a revised Game to
NOA for approval. NOA shall not unreasonably withhold or delay its approval of
any Game. The approval of a Game by NOA shall not relieve LICENSEE of its sole
responsibility for the development, quality and operation of the Game or in any
way create any warranty for a Game or a Licensed Product by NOA.

     4.5  Submission of Artwork. Upon submission of a completed Game to NOA,
LICENSEE shall prepare and submit to NOA the Artwork for the proposed Licensed
Product. Within ten (10) business days of receipt, NOA shall approve or
disapprove the Artwork. If any Artwork is disapproved, NOA shall specify in
writing the reasons for such disapproval and state what corrections or
improvements are necessary. After making the necessary corrections or
improvements, LICENSEE shall submit revised Artwork to NOA for approval. NOA
shall not unreasonably withhold or delay its approval of any Artwork. The
approval of the Artwork by NOA shall not relieve LICENSEE of its sole
responsibility for the development and quality of the Artwork or in any way
create any warranty for the Artwork or the Licensed product by NOA.

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     4.6  Artwork for Stripped Product. If LICENSEE submits an order for
Stripped Product, all Artwork shall be submitted to NOA in advance of NOA's
acceptance of the order and no production of Printed Materials shall occur
until such Artwork has been approved by NOA under Section 4.5 herein.

5.   ORDER PROCESS, PURCHASE PRICE, PAYMENT AND DELIVERY

     5.1  Submission of Order by LICENSEE. LICENSEE may at any time submit
written purchase orders to NOA for any approved Licensed Product title. The
purchase order shall specify whether it is for Finished Product or Stripped
Product. The terms and conditions of this Agreement shall control over any
contrary terms of such purchase order or any other written documents submitted
by LICENSEE. All orders are subject to acceptance by NOA in Redmond, WA.

     5.2  Purchase Price and Minimum Order Quantities. The purchase price and
minimum order quantities for the Licensed Products shall be set forth in NOA's
then current Price Schedule. The purchase price includes the cost of
manufacturing together with a royalty for the use of the Intellectual Property
Rights. No taxes, duties, import fees and other tariffs related to the
development, manufacture, import, marketing or sale of the Licensed Products
are included in the purchase price and all such taxes are the responsibility of
LICENSEE (except for taxes imposed on NOA's income). The Price Schedule is
subject to change by NOA at any time without Notice.

     5.3  Payment. Upon placement of an order with NOA, LICENSEE shall pay the
full purchase price to NOA either (a) by placement of an irrevocable letter of
credit in favor of NOA and payable at sight, issued by a bank acceptable to NOA
and confirmed, if requested by NOA, at LICENSEE's expense, or (b) in cash, by
wire transfer to NOA's designated account. All associated banking charges shall
be for LICENSEE's account.

     5.4  Shipment and Delivery. The Licensed Products shall be delivered
F.O.B. Japan or such other delivery point specified by NOA, with shipment at
LICENSEE's direction and expense. Orders may be delivered by NOA in partial
shipments, each directed to not more than two (2) destinations designated by
LICENSEE within the Territory. Title to the Licensed Products shall vest in
accordance with the terms of the applicable letter of credit or, in the absence
thereof, at the point of delivery.

6.   MANUFACTURE OF THE LICENSED PRODUCT

     6.1  Manufacturing. Nintendo Co., Ltd. shall be the exclusive source for
the manufacture of the Game Cartridges, with responsibility for all aspects of
the manufacturing process, including the selection of the locations and
specifications for any manufacturing facilities, determination of materials and
processes, appointment of suppliers and subcontractors and management of all
work-in-progress.

     6.2  Manufacture of the Licensed Products. Upon acceptance by NOA of a
purchase order for an approved Licensed Product title and payment as provided
for under Section 5.3 herein, NOA (through Nintendo Co., Inc., and/or its
subcontractors), will arrange for the manufacture of Finished Product or
Stripped Product, as specified in LICENSEE's purchase order.

     6.3  Security Features. The final release version of the Game, Game
Cartridges and Printed Materials shall include such Security Technology as
Nintendo, in its sole discretion, may deem necessary or appropriate.

     6.4  Production of Stripped Product Printed Materials. For Stripped
Product, LICENSEE shall arrange and pay for the production of the Printed
Materials using the Artwork. Upon receipt of an order of Stripped Product,
LICENSEE shall assemble the Game Cartridges and Printed Materials into the
Licensed Products. Licensed Products may be sold or otherwise distributed by
LICENSEE only in fully assembled and shrink-wrapped condition.

     6.5  Prior Approval of LICENSEE's Independent Contractor. Prior to the
placement of a purchase order for Stripped Product, LICENSEE shall obtain
NOA's approval of any independent

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Contractors selected to perform the production and assembly operations. LICENSEE
shall provide NOA with the names, addresses and all business documentation
reasonably requested by NOA for such Independent Contractors. NOA may, prior to
approval and at reasonable intervals thereafter, (a) require submission of
additional business or financial information regarding the Independent
Contractors, (b) inspect the facilities of the Independent Contractors, and (c)
be present to supervise any work on the Licensed Products to be done by the
Independent Contractors. If at any time NOA deems an Independent Contractor to
be unable to meet quality, security or performance standards reasonably
established by NOA, NOA may refuse to grant its approval or withdraw its
approval upon Notice to LICENSEE. LICENSEE may not proceed with the production
of the Printed Materials or assembly of the Licensed Product until NOA's
concerns have been resolved to its satisfaction or until LICENSEE has selected
and received NOA's approval of another Independent Contractor.

     6.6  NOA Inserts for Stripped Product. NOA, at its option, may provide
LICENSEE with NOA produced promotional materials (as provided for at Section
7.7(a) herein), which LICENSEE agrees to include in the assembly of the Licensed
Products.

     6.7  Sample Printed Materials and Stripped Product. Within a reasonable
period of time after LICENSEE's assembly of the initial order for a Stripped
Product title, LICENSEE shall provide NOA with (a) one (1) sample of the fully
assembled shrink-wrapped Licensed Product, and (b) fifty (50) samples of
LICENSEE produced Printed Materials for such Licensed Product.

     6.8  Retention of Sample Licensed Products by Nintendo. Nintendo may, at
its own expense, manufacture reasonable quantities of the Game Cartridges or the
Licensed Products to be used for archival purposes, legal proceedings against
infringers of the Intellectual Property Rights or for other lawful purposes.

7.   MARKETING AND ADVERTISING

     7.1  Approval of Marketing Materials. LICENSEE represents and warrants that
the Marketing Materials shall (a) be of high quality and comply with the
Guidelines, (b) comply with all voluntary ESRB advertising, marketing or
merchandising guidelines, and (c) comply with all applicable laws and
regulations in those jurisdictions in the Territory where they will be used or
distributed. Prior to actual use or distribution, LICENSEE shall submit to NOA
for review samples of all proposed Marketing Materials. NOA shall, within ten
(10) business days of receipt, approve or disapprove the quality of such
samples. If any of the samples are disapproved, NOA shall specify the reasons
for such disapproval and state what corrections and/or improvements are
necessary. After making the necessary corrections and/or improvements, LICENSEE
shall submit revised samples for approval by NOA. No Marketing Materials shall
be used or distributed by LICENSEE without NOA's prior written approval. NOA
shall not unreasonably withhold or delay its approval of any proposed Marketing
Materials.

     7.2  No Bundling. LICENSEE shall not market or distribute any Finished
Product or Stripped Product that has been bundled with (a) any peripheral
designed for use with the GAME BOY ADVANCE system which has not been licensed or
approved in writing by NOA, or (b) any other product or service where NOA's
sponsorship, association, approval or endorsement might be suggested by the
bundling of the products or services.

     7.3  Warranty and Repair. LICENSEE shall provide the original consumer with
a minimum ninety (90) day limited warranty on all Licensed Products. LICENSEE
shall also provide reasonable product service, including out-of-warranty
service, for all Licensed Products.

     7.4  Business Facilities. LICENSEE agrees to develop and maintain (a)
suitable office facilities within the United States, adequately staffed to
enable LICENSEE to fulfill all responsibilities under this Agreement, (b)
necessary warehouse, distribution, marketing, sales, collection and credit
operations to facilitate proper handling of the Licensed Products, and (c)
customer service and game counseling, including telephone service, to adequately
support the Licensed Products.

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     7.5  No Sales Outside the Territory. LICENSEE represents and warrants that
it shall not market, sell, offer to sell, import or distribute the Licensed
Products outside the Territory, or within the Territory when with actual or
constructive knowledge that a subsequent destination of the Licensed Product is
outside the Territory.

     7.6  Defects and Recall. In the event of a material programming defect in
a Licensed Product that would, in NOA's reasonable judgment, significantly
impair the ability of a consumer to play the Game, NOA may, after consultation
with LICENSEE, require the LICENSEE to recall the Licensed Product and
undertake suitable repairs or replacements.

     7.7  NOA Promotional Materials, Publications and Events. At its option,
NOA may (a) insert in the Printed Materials for the Licensed Products
promotional materials concerning Nintendo Power magazine or other NOA products,
services or programs, (b) utilize screen shots, Artwork and Information
regarding the Licensed Products in Nintendo Power, Nintendo Power Source or
other advertising, promotional or marketing media which promotes Nintendo
products, services or programs, and (c) exercise public performance rights in
the Games and use related trademarks and Artwork in connection with NOA
sponsored contests, tours, conventions, trade shows, press briefings and
similar events which promote the GAME BOY ADVANCE system.

     7.8  Nintendo Gateway System. To promote and increase demand for games on
Nintendo video game systems, NOA licenses a system (the "Nintendo Gateway
System") in various non-coin activated commercial settings such as commercial
airlines, cruise ships, rail systems and hotels, where customers play games on
specially adapted Nintendo video game systems. If NOA identifies a Game for
possible license on the Nintendo Gateway System, the parties agree to conduct
good faith negotiations toward including the Game in the Nintendo Gateway
System.

8.   CONFIDENTIAL INFORMATION

     8.1  Definition. "Confidential Information" means information provided to
LICENSEE by Nintendo or any third party working with Nintendo relating to the
hardware and software for the GAME BOY ADVANCE system or the Development Tools,
including, but not limited to, (a) all current or future information, know-how,
techniques, methods, information, tools, emulator hardware or software,
software development specifications, and/or trade secrets, (b) any patents or
patent applications, (c) any business, marketing or sales data or information,
and (d) any other information or data relating to development, design,
operation, manufacturing, marketing or sales. Confidential Information shall
include all confidential information disclosed, whether in writing, orally,
visually, or in the form of drawings, technical specifications, software,
samples, pictures, models, recordings, or other tangible items which contain or
manifest, in any form, the above listed information. Confidential Information
shall not include (i) data and information which was in the public domain prior
to LICENSEE's receipt of the same hereunder, or which subsequently becomes part
of the public domain by publication or otherwise, except by LICENSEE's wrongful
act or omission, (ii) data and information which LICENSEE can demonstrate,
through written records kept in the ordinary course of business, was in its
possession without restriction or use or disclosure, prior to its receipt of
the same hereunder and was not acquired directly or indirectly from Nintendo
under an obligation of confidentiality which is still in force, and (iii) data
and information which LICENSEE can show was received by it from a third party
who did not acquire the same directly or indirectly from Nintendo and to whom
LICENSEE has no obligation of confidentiality.

     8.2  Disclosures Required by Law. LICENSEE shall be permitted to disclose
Confidential Information if such disclosure is required by an authorized
governmental or judicial entity, provided that NOA is given Notice thereof at
least thirty (30) days prior to such disclosure. LICENSEE shall use its best
efforts to limit the disclosure to the greatest extent possible consistent with
LICENSEE's legal obligations, and if required by NOA, shall cooperate in the
preparation and entry of appropriate protective orders.

     8.3  Disclosure and Use. NOA may provide LICENSEE with highly confidential
development information, Guidelines, Development Tools, systems, specifications
and related resources and information constituting and incorporating the
Confidential Information to assist LICENSEE in the

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development of Games. LICENSEE agrees to maintain all Confidential Information
as strictly confidential and to use such Confidential Information only in
accordance with this Agreement. LICENSEE shall limit access to the Confidential
Information to LICENSEE's employees having a strict need to know and shall
advise such employees of their obligation of confidentiality as provided
herein. LICENSEE shall require each such employee to retain in confidence the
Confidential Information pursuant to a written non-disclosure agreement between
LICENSEE and such employee. LICENSEE shall use its best efforts to ensure that
its employees working with or otherwise having access to Confidential
Information shall not disclose or make any unauthorized use of the Confidential
Information.

     8.4  No Disclosure to Independent Contractors. LICENSEE shall not disclose
the Confidential Information to any Independent Contractor without the prior
written consent of NOA. Any Independent Contractor seeking access to
Confidential Information shall be required to enter into a written
non-disclosure agreement with NOA prior to receiving any access to or
disclosure of the Confidential Information from either LICENSEE or NOA.

     8.5  Agreement Confidentiality. LICENSEE agrees that the terms, conditions
and contents of this Agreement shall be treated as Confidential Information.
Any public announcement or press release regarding this Agreement or the
release dates for Games developed by LICENSEE under this Agreement shall be
subject to NOA's prior written approval. The parties may disclose this
Agreement (a) to accountants, banks, financing sources, lawyers, parent
companies and related parties under substantially equivalent confidentiality
obligations, (b) in connection with any formal legal proceeding for the
enforcement of this Agreement, (c) as required by the regulations of the
Securities and Exchange Commission ("SEC"), provided that all Confidential
Information regarding NOA shall be redacted from such disclosures to the
maximum extent allowed by the SEC, and (d) in response to lawful process,
subject to a written protective order approved in advance by NOA.

     8.6  Notification Obligations. LICENSEE shall promptly notify NOA of the
unauthorized use or disclosure of any Confidential Information and shall
promptly act to recover any such information and prevent further breach of the
obligations herein. The obligations of LICENSEE set forth herein are in
addition to and not in lieu of any other legal remedy that may be available to
NOA under this Agreement or applicable law.

     8.7  Continuing Effect of the NDA. The terms of this Section 8 supplement
the terms of the NDA, which shall remain in effect. In the event of a conflict
between the terms of the NDA and this Agreement, the terms of this Agreement
shall control.

9.   REPRESENTATIONS AND WARRANTIES

     9.1  LICENSEE's Representations and Warranties. LICENSEE represents and
warrants that:

          (a)  it is a duly organized and validly existing corporation and has
full authority to enter into this Agreement and to carry out the provisions
hereof,

          (b)  the execution, delivery and performance of this Agreement by
LICENSEE does not conflict with any agreement or understanding to which
LICENSEE may be bound, and

          (c)  excluding the Intellectual Property Rights, LICENSEE is either
(i) the sole owner of all right, title and interest in and to the trademarks,
copyrights and other intellectual property rights used on or in association with
the development, advertising, marketing and sale of the Licensed Products and
the Marketing Materials, or (ii) the holder of such rights to the trademarks,
copyrights and other intellectual property rights which have been licensed from
a third party as are necessary for the development, advertising, marketing and
sale of the Licensed Products and the Marketing Materials under this Agreement.

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     9.2  NOA'S Representations and Warranties. NOA represents and warrants
that:
          (a) it is a duly organized and validly existing corporation and has
full authority to enter into this Agreement and to carry out the provisions
hereof, and

          (b) the execution, delivery and performance of this Agreement by NOA
does not conflict with any agreement or understanding to which NOA may be bound.

     9.3  INTELLECTUAL PROPERTY RIGHTS DISCLAIMER BY NOA. NOA MAKES NO
REPRESENTATION OR WARRANTY CONCERNING THE SCOPE OR VALIDITY OF THE
INTELLECTUAL PROPERTY RIGHTS. NOA DOES NOT WARRANT THAT THE DESIGN,
DEVELOPMENT, ADVERTISING, MARKETING OR SALE OF THE LICENSED PRODUCTS OR THE USE
OF THE INTELLECTUAL PROPERTY RIGHTS BY LICENSEE WILL NOT INFRINGE UPON PATENT,
COPYRIGHT, TRADEMARK OR OTHER PROPRIETARY RIGHTS OF A THIRD PARTY. ANY
WARRANTY THAT MAY BE PROVIDED IN ANY APPLICABLE PROVISION OF THE UNIFORM
COMMERCIAL CODE OR ANY OTHER COMPARABLE LAW OR STATUTE IS EXPRESSLY DISCLAIMED.
LICENSEE HEREBY ASSUMES THE RISK OF INFRINGEMENT.

     9.4  GENERAL DISCLAIMER BY NOA. NOA DISCLAIMS ANY AND ALL WARRANTIES WITH
RESPECT TO THE LICENSED PRODUCTS, INCLUDING, WITHOUT LIMITATION, THE SECURITY
TECHNOLOGY. LICENSEE PURCHASES AND ACCEPTS ALL LICENSED PRODUCTS ON AN "AS IS"
AND "WHERE IS" BASIS. NOA DISCLAIMS ALL WARRANTIES UNDER THE APPLICABLE LAWS OF
ANY COUNTRY, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A GENERAL OR PARTICULAR PURPOSE.

     9.5  LIMITATION OF LIABILITY. TO THE MAXIMUM EXTENT PERMITTED BY LAW,
NEITHER NOA NOR NINTENDO CO., LTD. (OR THEIR RESPECTIVE AFFILIATES, LICENSORS
OR SUPPLIERS) SHALL BE LIABLE FOR LOSS OF PROFITS, OR FOR ANY SPECIAL,
PUNITIVE, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF LICENSEE OR ITS CUSTOMERS
ARISING OUT OF OR RELATED TO THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE
BREACH OF THIS AGREEMENT BY NOA, THE MANUFACTURE OF THE LICENSED PRODUCTS OR
THE USE OF THE LICENSED PRODUCTS ON ANY NINTENDO VIDEO GAME SYSTEM BY LICENSEE
OR ANY END USER.

10.  INDEMNIFICATION

     10.1 LICENSEE'S Indemnification. LICENSEE shall indemnify and hold
harmless NOA and Nintendo Co., Ltd. (and any of their respective affiliates,
subsidiaries, licensors, suppliers, officers, directors, employees or agents)
from any claims, losses, liabilities, damages, expenses and costs, including,
without limitation, reasonable attorney's fees and costs and any expenses
incurred in the settlement or avoidance of any such claim, which result from or
are in connection with:

          (a) a breach of any of the provisions, representations or warranties,
undertaken by LICENSEE in this Agreement,

          (b) any infringement of a third party's Proprietary Rights as a
result of the design, development, advertising, marketing, sale or use of the
Licensed Products or the Marketing Materials.

          (c) any claims alleging a defect, failure to warn, bodily injury
(including death) or other personal or property damage arising out of, or in
connection with, the design, development, advertising, marketing, sale or use
of any of the Licensed Products, and

          (d) any federal, state or foreign civil or criminal actions relating
to the design, development, advertising, marketing, sale or use of the Licensed
Products or the Marketing Materials.

                                                                         PAGE 9

<PAGE>   10

NOA and LICENSEE shall give prompt Notice to the other of any indemnified claim
under this Section 10.1. With respect to any third party claim subject to this
indemnity clause, LICENSEE, as indemnitor, shall have the right to select
counsel and to control the defense and/or settlement thereof. NOA may, at its
own expense, participate in such action or proceeding with counsel of its own
choice. LICENSEE shall not enter into any settlement of any such claim in which
(i) NOA or Nintendo Co., Ltd. has been named as a party, or (ii) claims
relating to the Intellectual Property Rights have been asserted, without NOA's
prior written consent. NOA shall provide reasonable assistance to LICENSEE in
its defense of any such claim.

      10.2  LICENSEE's Insurance. LICENSEE shall, at its own expense, obtain a
comprehensive policy of general liability insurance (including coverage for
advertising injury and product liability claims) from a recognized insurance
company. Such policy of insurance shall be in an amount of not less than Five
Million Dollars ($5,000,000 US) on a per occurrence basis and shall provide for
adequate protection against any suits, claims, loss or damage by the Licensed
Products. Such policy shall name NOA and Nintendo Co., Ltd. as additional
insureds and shall specify that it may not be canceled without thirty (30)
days' prior written Notice to NOA. A Certificate of Insurance shall be provided
to NOA's Licensing Department not later than the date of the initial order of
Licensed Products under this Agreement. If LICENSEE fails to maintain such
insurance at any time during the Term and for a period of two (2) years
thereafter, NOA may secure such insurance at LICENSEE's expense.

      10.3  Suspension of Production. In the event NOA deems itself at risk
with respect to any claim, action or proceeding under this Section 10, NOA may,
at its sole option, suspend production, delivery or order acceptance for any
Licensed Products, in whole or in part, pending resolution of such claim,
action or proceeding.

11.   PROTECTION OF PROPRIETARY RIGHTS

      11.1  Joint Actions Against Infringers. LICENSEE and NOA may agree to
jointly pursue cases of infringement involving of the Licensed Products, as
such Licensed Products will contain Proprietary Rights owned by each of them.
Unless the parties otherwise agree, or unless the recovery is expressly
allocated between them by the court, in the event of such an action, any
recovery shall be used first to reimburse LICENSEE and NOA for their respective
reasonable attorneys' fees and costs incurred in bringing such action, pro
rata, and any remaining recovery shall be distributed to LICENSEE and NOA, pro
rata, based upon the fees and costs incurred in bringing such action.

      11.2  Actions by LICENSEE. LICENSEE, without the consent of NOA, may
bring any action or proceeding relating to an infringement or potential
infringement of LICENSEE's Proprietary Rights in the Licensed Products.
LICENSEE shall make reasonable efforts to inform NOA of 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.

      11.3  Actions by NOA. NOA, without the consent of LICENSEE, may bring any
action or proceeding relating to an infringement or potential infringement of
NOA's Intellectual Property Rights in the Licensed Products. NOA shall make
reasonable efforts to inform LICENSEE of such actions in a timely manner. NOA
will have the right to retain all proceeds it may derive from any recovery in
connection with such actions.

12.   ASSIGNMENT

      12.1  No Assignment by LICENSEE. This Agreement is personal to LICENSEE
and may not be sold, assigned, delegated, sublicensed or otherwise transferred
or encumbered, in whole or in part, without NOA's prior written consent, which
consent may be withheld by NOA in its sole discretion. In the event of an
assignment or other transfer in violation of this Agreement, NOA shall have the
unqualified right to immediately terminate this Agreement without further
obligation to LICENSEE.

      12.2  Assignment by Operation of Law. In the event of an assignment of
this Agreement by operation of law, LICENSEE shall, not later than thirty (30)
days thereafter, give Notice and seek consent

                                                                         PAGE 10

<PAGE>   11
thereto from NOA. Such Notice shall disclose the name of the assignee, the
effective date and the nature and extent of the assignment. An assignment by
operation of law includes, but is not limited to (a) a merger of LICENSEE into
another business entity or a merger of another business entity into LICENSEE,
(b) the sale, assignment or transfer of all or substantially all of the assets
of LICENSEE to a third party, (c) the sale, assignment or transfer to a third
party of any of LICENSEE's intellectual property rights which are used in the
development of or are otherwise incorporated into any Licensed Products, or (d)
the sale, assignment or transfer of any of LICENSEE's stock resulting in the
acquirer having management power over or voting control of LICENSEE. Following
the later of (i) such an assignment by operation of law, or (ii) receipt of
Notice therefor, NOA shall have the unqualified right for a period of ninety
(90) days to immediately terminate this Agreement without further obligation to
LICENSEE.

     12.3 Non-Disclosure Obligation. In no event shall LICENSEE disclose or
allow access to NOA's Confidential Information prior to or upon the occurrence
of an assignment, whether by operation of law or otherwise, unless and until
NOA gives its written consent to such disclosure.

13.  TERM AND TERMINATION

     13.1 Term. This Agreement shall commence on the Effective Date and
continue for the Term, unless earlier terminated as provided for herein.

     13.2 Default or Breach. In the event that either party is in default or
commits a breach of this Agreement, which is not cured within thirty (30) days
after Notice thereof, then this Agreement shall automatically terminate on the
date specified in such Notice.

     13.3 Bankruptcy. At NOA's option, this Agreement may be terminated
immediately and without Notice in the event that LICENSEE (a) makes an
assignment for the benefit of creditors, (b) becomes insolvent, (c) files a
voluntary petition for bankruptcy, (d) acquiesces to any involuntary bankruptcy
petition, (e) is adjudicated as a bankrupt, or (f) ceases to do business.

     13.4 Termination Other Than by Breach. Upon the expiration of this
Agreement or its termination other than by LICENSEE's breach, LICENSEE shall
have a period of one hundred eighty (180) days to sell any unsold Licensed
Products. All Licensed Products in LICENSEE's control following the expiration
of such sell-off period shall be destroyed by LICENSEE within ten (10) days and
proof of such destruction (certified by an officer of LICENSEE) shall be
provided to NOA.

     13.5 Termination by LICENSEE's Breach. If this Agreement is terminated by
NOA as a result of a breach of its terms and conditions by LICENSEE, LICENSEE
shall immediately cease all distribution, advertising, marketing or sale of any
Licensed Products. All Licensed Products in LICENSEE's control as of the date
of such termination shall be destroyed by LICENSEE within ten (10) days and
proof of such destruction (certified by an officer of LICENSEE) shall be
provided to NOA.

     13.6 Breach of NDA or Other NOA License Agreements. At NOA's option, any
breach by LICENSEE of (a) the NDA, or (b) any other license agreement between
NOA and LICENSEE relating to the development of games for any Nintendo video
game system which is not cured within the time period for cure allowed under
the applicable agreement, shall be considered a material breach of this
Agreement entitling NOA to terminate this Agreement in accordance with Section
13.5 herein.

     13.7 No Further Use of the Intellectual Property Rights. Upon expiration
and/or termination of this Agreement, LICENSEE shall cease all use of the
Intellectual Property Rights for any purpose, except as may be required in
connection with the sale of Licensed Products authorized under Section 13.4
herein. LICENSEE shall, within thirty (30) days thereafter, return or destroy
all Guidelines, writings, drawings, models, data, tools and other materials and
things in LICENSEE's possession or in the possession of any past or present
employee, agent or contractor receiving the information through LICENSEE, which
constitute or relate to or disclose any Confidential Information, without
making copies or otherwise retaining any such information. Proof of any
destruction shall be certified by an officer of LICENSEE and promptly provided
to NOA.

                                                                         PAGE 11
<PAGE>   12
     13.8  Termination by NOA's Breach. If this Agreement is terminated by
LICENSEE as a result of a breach of its terms or conditions by NOA, LICENSEE
may continue to sell the Licensed Products in the Territory until the
expiration of the Term, at which time the provisions of Section 13.4 shall
apply.

14.  GENERAL PROVISIONS

     14.1  Export Control. LICENSEE agrees to comply with the export laws and
regulations of the United States and any other country with jurisdiction over
the Licensed Products and/or either party.

     14.2  Force Majeure. Neither party shall be liable for any breach of this
Agreement occasioned by any cause beyond the reasonable control of such party,
including governmental action, war, riot or civil commotion, fire, natural
disaster, labor disputes, restraints affecting shipping or credit, delay of
carriers, inadequate supply of suitable materials or any other cause which
could not with reasonable diligence be controlled or prevented by the parties.
In the event of material shortages, including shortages of materials or
production facilities necessary for production of the Licensed Products, NOA
reserves the right to allocate such resources among itself and its licensees.

     14.3  Records and Audit. During the Term and for a period of two (2) years
thereafter, LICENSEE agrees to keep accurate, complete and detailed records
related to the development and sale of the Licensed Products and the Marketing
Materials. Upon reasonable Notice to LICENSEE, NOA may, at its expense, audit
LICENSEE's records, reports and other information related to LICENSEE's
compliance with this Agreement.

     14.4  Waiver, Severability, Integration, and Amendment. The failure of a
party to enforce any provision of this Agreement shall not be construed to be a
waiver of such provision or of the right of such party to thereafter enforce
such provision. In the event that any term, cause or provision of this
Agreement shall be construed to be or adjudged invalid, void or unenforceable,
such term, clause or provision shall be construed as severed from this
Agreement, and the remaining terms, clauses and provisions shall remain in
effect. Together with the NDA, this Agreement constitutes the entire agreement
between the parties relating to the subject matter hereof. All prior
negotiations, representations, agreements and understandings are merged into,
extinguished by and completely expressed by this Agreement and the NDA. Any
amendment to this Agreement shall be in writing, signed by both parties.

     14.5  Survival. In addition to those rights specified elsewhere in this
Agreement, the rights and obligations set forth in Sections 3, 8, 9, 10 and 13
shall survive any expiration or termination of this Agreement to the degree
necessary to permit their complete fulfillment of discharge.

     14.6  Governing Law and Venue. This agreement shall be governed by the
laws of the State of Washington, without regard to its conflict of laws
principles. Any legal action (including judicial and administrative
proceedings) with respect to any matter arising under or growing out of this
Agreement, shall be brought in a court of competent jurisdiction in King
County, Washington. Each party hereby consents to the jurisdiction and venue of
such courts for such purposes.

     14.7  Equitable Relief. LICENSEE acknowledges that in the event of its
breach of this Agreement, no adequate remedy at law may be available to NOA and
that NOA shall be entitled to seek injunctive or other equitable relief in
addition to any relief available at law.

     14.8  Attorneys' Fees. In the event it is necessary for either party to
this Agreement to undertake legal action to enforce or defend any action
arising out of or relating to this Agreement, the prevailing party in such
action shall be entitled to recover from the other party all reasonable
attorneys' fees, costs and expenses relating to such legal action or any appeal
therefrom.

     14.9  Counterparts and Signature by Facsimile. This Agreement may be
signed in counterparts, which shall together constitute a complete Agreement. A
signature transmitted by facsimile shall be considered an original for purposes
of this Agreement.

                                                                         PAGE 12

<PAGE>   13

IN WITNESS WHEREOF, the parties have entered into this Agreement on the dates
set forth below.

NOA:                                       LICENSEE:

NINTENDO OF AMERICA INC.                   BAM ENTERTAINMENT, INC.

By:    /s/ John Bauer                      By:    /s/ Raymond C. Musci
       ----------------------------               -------------------------
Title: Executive VP, Administration        Title: President
       ----------------------------               -------------------------
Date:  05/29/01                            Date:  May 21, 2001
       ----------------------------               -------------------------

                                                                      PAGE 13<PAGE>   1
                                                                  EXHIBIT 10.33

                                               Consumer Group Contract No. 19355

                        (Confidential Portions Omitted)

                             MICROSOFT CORPORATION
                      XBOX(TM) PUBLISHER LICENSE AGREEMENT

This License Agreement (the "Agreement") is entered into and effective as of
Nov. 28, 2000 (the "Effective Date") by and between MICROSOFT CORPORATION, a
Washington corporation ("Microsoft"), and BAY AREA MULTI MEDIA, INC., a Delaware
corporation ("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, as well as all 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).

     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.

     1.5  "Finished Product Unit" shall mean a DVD-9 copy, in software object
code only, of a Software Title, in whole or in part.

     1.6  "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).

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                                               Consumer Group Contract No. 19355

     1.7  "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.

     1.8  "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.

     1.9  "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.

     1.10 "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 development
schedule set forth in the applicable Exhibit A-n. 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 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 either correct the problems that contributed to the lack of
approval or, if Microsoft gives Licensee written notice to cease development,
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.

          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

                                       2
<PAGE>   3
                                               Consumer Group Contract No. 19355

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 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 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 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.

          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.

     2.2  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

                                       3
<PAGE>   4
                                               Consumer Group Contract No. 19355

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 licensee(s)
(each an "XDK License") pursuant to which Microsoft would license 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.

     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 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.

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

                                       4

<PAGE>   5

                                               Consumer Group Contract No. 19355

prohibitions of this section, Licensee shall promptly remedy such
non-conformance and notify Microsoft of the non-conformance and remedial steps
taken.

          3.14 Certification Requirements. Licensee may use the Licensed
Trademarks only in connection with the copies of the Software Title that meet
the Certificate 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 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.
Licensee shall be reimbursed by Microsoft for all reasonable expenses incurred
by Licensee in connection with the foregoing. 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 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, nor shall Licensee knowingly
permit or assist any third party in such bundling, without Microsoft's prior
written consent.

     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 authorizer or permit any online
activities involving the Software Title, including without 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.

                                       5

<PAGE>   6
                                               Consumer Group Contract No. 19355

     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 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;

                                       6

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                                               Consumer Group Contract No. 19355

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

          4.2.4     as between Licensee and Microsoft, Licensee shall 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     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 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.

     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 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.

                                       7

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<PAGE>   8
                                               Consumer Group Contract No. 19355

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. 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).

     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. Microsoft shall also entertain in good faith any proposals by Licensee of
additional or alternative remedial measures to effectively address such
situation.

     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; and (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.

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:

<TABLE>
<CAPTION>
     FINISHED PRODUCT UNITS MANUFACTURED     ROYALTY PER APPLICABLE FINISHED PRODUCT UNIT
     -----------------------------------     --------------------------------------------
                                                             US DOLLARS
                                                             ----------
                                                                YEN
                                                                ---
                                                               EUROS
                                                               -----

             <S>                                              <C>
             Units [*]                                          [*]
                                                                [*]
                                                                [*]
</TABLE>

                                       8

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<PAGE>   9
                                               Consumer Group Contract No. 19355

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

     Units [*]                                               [*]
                                                             [*]
                                                             [*]

       Units [*]                                             [*]
                                                             [*]
                                                             [*]
</TABLE>

Notwithstanding the foregoing, no royalties will be payable hereunder with
respect to any Demo Finished Product Units. For the purposes hereof, a "Demo
Finished Product Unit" will mean a Finished Product Unit that (i) contains only
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, which approval Microsoft agrees not to unreasonably withhold, and
(iv) is distributed free or with a suggested retail price of not more than
US$[*].

     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.

                                       9

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<PAGE>   10

                                               Consumer Group Contract No. 19355

<TABLE>
<CAPTION>
                     YEN/EURO TO US DOLLAR TRADING RANGE

                                       MINIMUM         MAXIMUM
                                       -------         -------
<S>                                    <C>             <C>
Yen                                       [*]             [*]
Euros                                     [*]             [*]
</TABLE>

                 [ ]        Worldwide            (initials)
                                      -----------

                 [X]        Regional  [INITIALED] (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 Licensee's compliance with the terms of
this Agreement and for a period of two (2) years thereafter. Any such audit
shall be made by Microsoft's internal audit team or any Microsoft designee, and
shall be conducted during regular business hours at the Licensee's (or any
applicable subcontractor's) offices. 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 12% 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 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

                                       10

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<PAGE>   11
                                               Consumer Group Contract No. 19355

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.

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 three
(3) years after Commercial Release of Xbox.

      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 fifteen (15) 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 fifteen-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

                                       11
<PAGE>   12
                                               Consumer Group Contract No. 19355

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  Termination for Creative Reasons. In the event that Microsoft
determines, at any time prior to the Commercial Release of a Software Title,
that such Software Title does not comply with the requirements set forth in the
Xbox Guide, and Licensee fails to remedy the noncompliance within fifteen (15)
days after the receipt of notice to that effect, 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 six (6) months 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 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;

          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,

                                       12
<PAGE>   13
                                               Consumer Group Contract No. 19355

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.

        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 $5,000,000 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.

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                                               Consumer Group Contract No. 19355

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 then to reimburse Licensee and Microsoft pro rata for the respective
damages incurred by each party as a result of the infringement. If the parties
can not agree in good faith within a reasonable period of time on the proper
parties' respective damages and the proper allocation of proceeds therefor, then
any remaining recovery shall also be given to Licensee and Microsoft pro rata
based upon the fees and expenses incurred in bringing such action.

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 employes 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:

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                                              Consumer Group Contract No. 19355

                         Licensee:      Bay Area Multimedia, Inc.
                                        333 West Santa Clara St., Ste 930
                                        San Jose, CA 95113

                         Attention:     Mr. Ray Musci, President
                         Fax:           (408) 298-9600
                         Phone:         (408) 298-7500

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

                         Attention:     Xbox Business Development

                         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. Licensee may not assign this Agreement or any portion
thereof, to any third party unless Microsoft expressly consents to such
assignment in writing. Microsoft will have the right to assign this Agreement
and/or any portion thereof as Microsoft may deem appropriate. 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
stock, or of all or substantially all of its assets shall be deemed to be an
assignment. 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.

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                                              Consumer Group Contract No. 19355

     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 statement 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                  BAY AREA MULTIMEDIA, INC.

/s/  J. ALLARP                         /s/  RAYMOND MUSCI
----------------------                 -------------------------
By (sign)                              By (sign)

     J. Allarp                              Raymond Musci
----------------------                 -------------------------
Name (Print)                           Name (Print)

     GEN MGR                                  President
----------------------                 -------------------------
Title                                  Title

     11/20/00                                 10/18/2000
----------------------                 -------------------------
Date                                   Date

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                                              Consumer Group Contract No. 19355

                                  EXHIBIT A-1
                         DESCRIPTION OF SOFTWARE TITLE

                                       17
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                                              Consumer Group Contract No. 19355

                                   EXHIBIT B
                              LICENSED TRADEMARKS

                           [insert Xbox design here]

                                       18
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                                               Consumer Group Contract No. 19355

                                   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 areas 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".

     -    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 genetic 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 by abbreviated. Do not use "X" by itself
          to represent "Xbox."

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                                               Consumer Group Contract No. 19355

                                   EXHIBIT D

                            NON-DISCLOSURE AGREEMENT

                                       20

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