Document:

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                                  EXHIBIT 10.1

   DVD Video and DVD ROM Disc Patent License Agreement dated August 9, 2002,
  between Koninklijke Philips Electronics N.V. and Metatec International, Inc.

This Agreement is entered into this 9th day of August, 2002 by and between

KONINKLIJKE PHILIPS ELECTRONICS N.V., having its registered office in Eindhoven,
The Netherlands, (hereinafter referred to as "Philips")

and

METATEC INTERNATIONAL, INC., having its registered office in 7001 Metatec Blvd.,
Dublin, Ohio 43017 (hereinafter referred to as "Licensee")

WHEREAS, Philips, Sony Corporation of Japan ("Sony"), Pioneer Corporation of
Japan ("Pioneer"), Hitachi Ltd. of Japan, Matsushita Electric Industrial Co.
Ltd. of Japan, Mitsubishi Electric Corporation of Japan, Thomson Multimedia of
France, Time Warner Entertainment Company L.P. of the USA, Toshiba Corporation
of Japan, and Victor Company of Japan Ltd. of Japan, have defined a new system,
which has been presented under the name DVD-Video System, as well as a system,
which has been presented under the name DVD-ROM System, said systems hereinafter
defined, and collectively referred to as the "DVD Systems";

WHEREAS, the DVD Systems result from research and development efforts of each of
the companies mentioned above;

WHEREAS, the DVD Systems specifications and the right to use the DVD logo can be
obtained from the entity known as the DVD Format/Logo Licensing Corporation,
based in Tokyo, Japan;

WHEREAS, Philips, Sony and Pioneer each own certain patents relating to the DVD
Systems;

WHEREAS, Philips has been authorized by Sony and Pioneer to grant licenses under
certain patents relating to the DVD Systems, which are owned or controlled by
Sony and its Associated Companies (as hereinafter defined) and by Pioneer and
its Associated Companies respectively, as well as such patents relating to the
DVD Systems which are jointly owned by Pioneer, Sony and/or Philips, while Sony
and Pioneer each retain the right also to license their respective patents
relating to the DVD Systems separately so that interested manufacturers may opt
to take out individual licenses under the relevant patents of each of Philips,
Sony and Pioneer instead of a combined license;

WHEREAS, Licensee has requested from Philips a license under the relevant
patents of Philips, Sony and Pioneer relating to DVD-Discs and wishes such
DVD-Discs to be compatible with devices conforming to the DVD Standard
Specifications for any of the relevant DVD Systems; and

WHEREAS, Philips is willing to grant Licensee a license under the relevant
patents on the conditions set forth herein;

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NOW, THEREFORE, in consideration of the mutual obligations and covenants
hereinafter set forth, the parties hereto have agreed as follows:

                             ARTICLE 1 - DEFINITIONS
                             -----------------------

The following terms used in this Agreement shall have the meanings set out
below:

1.01     "DISC" shall mean a non-recordable reflective disc-shaped information
         carrier comprising any kind of information including, but not limited
         to, audio, video, text and/or data related information, which is
         irreversibly stored in one or more information layers during and as an
         integral part of the manufacturing process of the disc in a form which
         is optically readable by playback devices using a laser-beam.

1.02     "DVD-VIDEO DISC" shall mean a replicated Disc comprising any kind of
         information including, but not limited to, audio, video, text, and/or
         data related information, encoded in digital form, which is optically
         readable by a DVD-Video Player and by a DVD-ROM Player (as hereinafter
         defined) and which conforms to the DVD-Video Standard Specifications
         and the DVD-ROM Standard Specifications, parts 1, 2 and 3 (as
         hereinafter defined).

1.03     "DVD-ROM DISC" shall mean a replicated Disc comprising any kind of
         information including, but not limited to, audio, video, text, and/or
         data related information, encoded in digital form, which is optically
         readable by a DVD-ROM Player (as hereinafter defined) and which
         conforms to the DVD-ROM Standard Specifications (as hereinafter
         defined).

         The DVD-Video Disc and DVD-ROM Disc together are referred to as
         "DVD-Disc".

1.04     "DVD-VIDEO SYSTEM" shall mean the Digital Versatile Disc Video System
         which is capable of storing and reproducing video and sound signals in
         digital form on DVD-Video Discs.

1.05     "DVD-ROM SYSTEM" shall mean the Digital Versatile Disc ROM System which
         is capable of storing and reproducing data signals in digital form on
         DVD-ROM Discs.

1.06     "DVD-ROM STANDARD SPECIFICATIONS" shall mean the specifications for the
         DVD-ROM System, as specified in the document "DVD Specification for
         Read-Only Disc, version 1.0 (parts 1 and 2)" of August 1996, or any
         updated version thereof, as issued by the DVD Format/Logo Licensing
         Corporation.

1.07     "DVD-VIDEO STANDARD SPECIFICATIONS" shall mean the specifications for
         the DVD-Video System, as specified in the document "DVD Specification
         for Read-Only Disc, version 1.0 (part 3)" of August 1996, or any
         updated version thereof, as issued by the DVD Format/Logo Licensing
         Corporation.

         The DVD-ROM Standard Specifications and the DVD-Video Standard
         Specifications together are referred to as the "DVD Standard
         Specifications".

1.08     "PLAYER" shall mean a playback device for optically reading information
         stored on a Disc and converting such information into electrical
         signals for reproduction purposes.

1.09     "DVD-VIDEO PLAYER" shall mean a Player capable of reproducing
         information stored on a DVD-Video Disc and converting such information
         into electrical signals, in accordance with

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         the DVD Standard Specifications, which electrical signals are directly
         capable and intended to be used for visual reproduction through
         standard television receivers and/or video monitors. Such DVD-Video
         Player may, in addition to reproducing information on a DVD-Video Disc,
         also be capable of reproducing information stored on a CD-Audio Disc.

1.10     "DVD-ROM PLAYER" shall mean a Player capable of reproducing information
         stored on a DVD-ROM Disc and/or a DVD-Video Disc and converting such
         information into electrical signals, in accordance with the DVD-ROM
         Standard Specifications or the DVD Standard Specifications, which
         electrical signals are directly capable and intended to be used for
         reproduction of video, text and data-related information through data
         handling and/or data processing equipment. Such DVD-ROM Player may, in
         addition to reproducing information stored on a DVD-Disc, also be
         capable of reproducing information stored on a CD-Audio Disc and/or a
         CD-ROM Disc.

         The DVD-Video Player and DVD-ROM Player together referred to as
         "DVD-Player".

1.11     "LICENSED PRODUCT(S)" shall mean a DVD-Video Disc and/or a DVD-ROM
         Disc, having either a single or dual information layer(s) (which is/are
         readable from one side of the disc) or two single or dual information
         layers (which are readable from opposite sides of the disc),
         manufactured and/or sold in accordance with the provisions hereof,
         which has been duly reported and on which the royalties due hereunder
         are paid in accordance with the provisions of this Agreement.

1.12     "LICENSED PATENTS" shall mean the patents listed in the relevant
         Exhibits as selected by Licensee pursuant to Option A and B below.

         OPTION A: Licensee chooses the essential patents listed in Exhibit I,
         for the use of any one or more of these patents, exclusively for the
         manufacture and/or sale of DVD-ROM Discs.

         OPTION B: Licensee chooses the essential patents listed in Exhibit II,
         for the use of any one or more of these patents, exclusively for the
         manufacture and/or sale of DVD-Video Discs.

         Option(s):    o A    o B   o A and B    (please tick as appropriate)

                  Initial: __________________

                  The term "ESSENTIAL" as used in relation to patents in this
                  Agreement shall refer to patents, the use of which is
                  necessary (either directly or as a practical matter) for
                  compliance with the Standard Specifications defining the
                  relevant DVD Systems.

         Philips will commission an independent patent expert to review the
         European, Japanese and US patents listed as essential in Exhibits I and
         II in order to confirm the essentiality of such patents. In the event
         that said independent expert would find that any of the patents would
         not qualify as essential as defined in this Agreement, Philips shall
         delete such patent (as well as the equivalent national patents) from
         the relevant Exhibit and such patent will be put on the relevant
         Exhibit of non-essential patents. Any such finding and deletion
         however, shall not affect the obligation of Licensee to pay the royalty
         on each Licensed Product as specified in Article 4.02, provided that,
         in the event that none of the Licensed Patents would be infringed

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         by the manufacture of Licensed Products within the Territory, Licensee
         shall have no obligation to pay royalties in respect of Licensed
         Products manufactured within the Territory and which are directly sold
         for final use within the Territory or directly exported for final use
         to a country in which no Licensed Patents subsist. Notwithstanding such
         deletion, Licensee shall retain the right to continue the use of such
         deleted patent(s) in accordance with this Agreement, without any
         additional payment, unless Licensee explicitly notifies Philips in
         writing of its decision to waive such right.

         In the event that Philips or Sony or Pioneer (or any of their
         Associated Companies) would have additional patents (other than patents
         acquired from third parties after the date of January 1, 1997) in their
         respective patent portfolio which are essential to the manufacture,
         sale or other disposal of Licensed Products and which have a filing
         date or are entitled to a so-called priority date prior to January 1,
         1997, but which have not been listed as essential patents in the
         respective Exhibits hereto, Philips will notify Licensee accordingly
         and such additional patents will be added to the Licensed Patents. Any
         patents as may be added as essential patents to any of the respective
         Exhibits hereto, will similarly be subject to the review by the
         independent patent expert in accordance with the preceding paragraph.

         THE PATENT LISTS PROVIDED TO LICENSEE UPON EXECUTION OF THE AGREEMENT
         ARE SUBJECT TO CHANGE IN ACCORDANCE WITH THE PROVISIONS OF THIS
         AGREEMENT. WITH REGARD TO THE RIGHTS GRANTED TO LICENSEE HEREUNDER, THE
         PATENT LISTS PUBLISHED BY PHILIPS ON ITS WEBSITE
         (www.licensing.philips.com) OR OTHERWISE COMMUNICATED BY PHILIPS TO
         LICENSEE AFTER THE DATE OF EXECUTION HEREOF SHALL PREVAIL OVER THE
         LISTS PROVIDED TO LICENSEE UPON EXECUTION OF THIS AGREEMENT.

1.13     "Associated Company" shall mean any one or more business entities (1)
         owned or controlled by Philips, Sony, Pioneer or Licensee, (2) owning
         or controlling Philips, Sony, Pioneer or Licensee, or (3) owned or
         controlled by the business entity owning or controlling Philips, Sony,
         Pioneer or Licensee at the material time. For the purposes of this
         definition a business entity shall be deemed to own and/or to control
         another business entity if more than 50% (fifty per cent) of the voting
         stock of the latter business entity, ordinarily entitled to vote in the
         election of directors, (or, if there is no such stock, more than 50%
         (fifty per cent) of the ownership of or control in the latter business
         entity) is held by the owning and/or controlling business entity.

         For the purpose of this Agreement, Discovision Associates shall not be
         deemed an Associated Company of Pioneer.

1.14     "Territory" shall mean the geographic area known as the United States
         of America, its territories and possessions.

                           ARTICLE 2 - GRANT OF RIGHTS
                           ---------------------------

Subject to the conditions of this Agreement:

2.01     For the term of this Agreement, Philips hereby grants to Licensee a
         non-exclusive, non-transferable license under the Licensed Patents
         selected by Licensee pursuant to Article 1.12 to manufacture Licensed
         Products within the Territory in accordance with the relevant DVD
         Standard Specifications and to sell or otherwise dispose of Licensed
         Products so manufactured in all countries of the world.

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2.02     Philips, also on behalf of Sony and Pioneer, further agrees, for as
         long as this Agreement is in force and effect and Licensee is in full
         compliance with its obligations hereunder, to grant Licensee upon
         Licensee's request a non-exclusive, non-transferable license, either by
         means of a sub-license arrangement or by means of individual licenses
         from Philips, Sony and/or Pioneer respectively, on reasonable,
         non-discriminatory conditions, to manufacture Licensed Products in the
         Territory and to sell or otherwise dispose of Licensed Products so
         manufactured in all countries of the world, under any patents not yet
         licensed hereunder and which are essential to the manufacture, sale or
         other disposal of Licensed Products, for which Philips, Sony and
         Pioneer and their respective Associated Companies have or may hereafter
         acquire from third parties the free right to grant licenses. It is
         acknowledged and agreed that in respect of the patents as may be
         licensed pursuant to this Article 2.02, additional royalties may have
         to be paid over and above the royalties specified in Article 4.02.

2.03     Philips, also on behalf of Sony and Pioneer, further agrees, for as
         long as this Agreement is in force and effect and Licensee is in full
         compliance with its obligations hereunder, to grant Licensee upon
         Licensee's request as well as to those of Licensee's Associated
         Companies who so request, a non-exclusive, non-transferable license, on
         reasonable, non-discriminatory conditions, either by means of a
         sub-license arrangement or by means of individual licenses from
         Philips, Sony and/or Pioneer respectively, to manufacture DVD-Players
         and to sell or otherwise dispose of such DVD-Players so manufactured in
         all countries of the world, under any and all present and future
         patents essential to the manufacture, sale or other disposal of
         DVD-Players for which Philips, Sony and/or Pioneer and their respective
         Associated Companies have or may hereafter acquire the free right to
         grant licenses.

2.04     In consideration of the undertakings set forth in Articles 2.01, 2.02
         and 2.03 and similar undertakings by third party licensees of Philips
         and without prejudice to the provisions of Article 10, for a period of
         ten years from the Effective Date (as hereinafter defined) Licensee
         agrees to grant to Philips, Sony, Pioneer and their respective
         Associated Companies and to other third parties who have entered or
         will enter into a license agreement with Philips or an Associated
         Company of Philips concerning DVD-Discs, non-exclusive,
         non-transferable licenses, on reasonable, non-discriminatory conditions
         comparable to those set forth herein, to manufacture, sell or otherwise
         dispose of DVD-Discs, under any and all present and future patents, for
         which Licensee or its Associated Companies have or may hereafter
         acquire the right to grant licenses and which are essential to the
         manufacture, sale or other disposal of such DVD-Discs as correspond
         with the Licensed Patents selected by Licensee pursuant to Article 1.12
         and which patents were first filed in any country of the world prior to
         the date of termination of this Agreement. For the avoidance of doubt,
         the undertaking set out in the preceding sentence shall only apply to
         those companies which have made the same selection pursuant to Article
         1.12 as Licensee and which in that respect accept or have accepted a
         similar undertaking as contained in this Article 2.04.

2.05     In addition, in consideration of the undertakings set forth in Articles
         2.01, 2.02 and 2.03 and similar undertakings by third party licensees
         of Philips or any of its Associated Companies and without prejudice to
         the provisions of Article 10, for a period of ten years from the
         Effective Date, Licensee agrees to grant to Philips, Sony, Pioneer and
         their respective Associated Companies and to other third parties who
         have entered or will enter into a license agreement with Philips or an
         Associated Company of Philips concerning DVD-Players, non-exclusive,
         non-transferable licenses, on reasonable, non-discriminatory
         conditions, to manufacture, sell or otherwise dispose of such
         DVD-Players under any and all present and future patents, for which
         Licensee or its Associated Companies have or may hereafter acquire

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         the right to grant licenses and which are essential to the manufacture,
         sale or other disposal of such DVD-Players and which patents were first
         filed in any country of the world prior to the date of termination of
         this Agreement. For the avoidance of doubt, the undertaking set out in
         the preceding sentence shall only apply to those companies which accept
         or have accepted a similar undertaking as contained in this Article
         2.05.

2.06     Philips undertakes that it will offer, at the request of any of
         Licensee's Associated Companies to any such Associated Company, a
         non-exclusive and non-transferable license under the Licensed Patents
         on reasonable and non-discriminatory conditions comparable to those set
         forth herein, to manufacture, sell or otherwise dispose of DVD-Discs.

         In consideration of Philips' undertaking as set out in the preceding
         paragraph, Licensee undertakes that all of its Associated Companies
         which have or may hereafter acquire patents essential to the
         manufacture, sale or other disposal of DVD-Discs and which patents were
         first filed in any country of the world prior to the date of
         termination of this Agreement, shall make available licenses under such
         patents, on reasonable, non-discriminatory conditions comparable to
         those set forth herein to Philips, any of Philips' Associated Companies
         and to other third parties who have entered or will enter into a
         license agreement with Philips or an Associated Company of Philips in
         respect of DVD-Discs.

2.07     IT IS EXPRESSLY ACKNOWLEDGED AND AGREED THAT:

         (I)      THE LICENSES AND LICENSE UNDERTAKINGS HEREIN CONTAINED WITH
                  RESPECT TO THE MANUFACTURE OF LICENSED PRODUCTS DO NOT EXTEND
                  TO METHODS OR THE MANUFACTURE OR SALE OF EQUIPMENT FOR
                  COMPRESSION AND/OR DECOMPRESSION OF AUDIO SIGNALS (INCLUDING
                  BUT NOT LIMITED TO THE SYSTEM KNOWN AS MPEG-2 AUDIO) OR FOR
                  THE COMPRESSION OR DECOMPRESSION OF VIDEO SIGNALS IN
                  ACCORDANCE WITH THE SYSTEM KNOWN UNDER THE NAME MPEG-2 VIDEO,
                  NOR TO MASTER RECORDING MACHINES, MACHINES, EQUIPMENT OR
                  METHODS FOR THE REPLICATION OF DISCS, NOR TO THE MANUFACTURE
                  OF MATERIALS OR REPRODUCTION RIGHTS FOR INFORMATION (SUCH AS
                  AUDIO, VIDEO, TEXT AND/OR DATA-RELATED INFORMATION), CONTAINED
                  ON DISCS TO BE PLAYED BACK ON A PLAYER/RECORDER. FURTHER, THE
                  LICENSE UNDERTAKINGS WITH RESPECT TO THE MANUFACTURE OF
                  RECORDING/PLAYBACK DEVICES DO NOT EXTEND TO THE MANUFACTURE OF
                  COMPONENTS FOR RECORDING/PLAYBACK DEVICES (INCLUDING BUT NOT
                  LIMITED TO SEMICONDUCTOR DEVICES, INTEGRATED CIRCUITS, LASERS,
                  MOTORS AND LENSES), EXCEPT FOR PATENTS RELATING TO CIRCUITRY
                  AND/OR SYSTEM ASPECTS SPECIFIC TO THE DVD SYSTEMS;

         (II)     THE RIGHTS AND LICENSES GRANTED UNDER THIS AGREEMENT APPLY
                  ONLY TO SUCH PART OF A COMBINATION OF ONE OR MORE LICENSED
                  PRODUCTS OR DVD PLAYERS WITH ANY OTHER ELEMENTS, PRODUCTS,
                  SYSTEMS, EQUIPMENT OR SOFTWARE WHICH IS IN COMPLIANCE WITH THE
                  DVD STANDARD SPECIFICATIONS.

                              ARTICLE 3 - HAVE MADE
                              ---------------------

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3.01     The rights granted to Licensee pursuant to Article 2 include the right
         for Licensee to have Licensed Products made for it by third party
         manufacturers, duly licensed by Philips under an agreement similar to
         this Agreement, provided that Licensee will properly identify such
         third party manufacturer in the royalty reporting forms to be submitted
         to Philips hereunder, together with the quantities of Licensed Products
         so purchased.
         Conversely, Licensee shall refrain from purchasing or selling DVD-Video
         Discs and/or DVD-ROM Discs manufactured by any third party not licensed
         by Philips, where such purchase or sale would constitute an act of
         infringement of any of the Licensed Patents.

                   ARTICLE 4 - ROYALTIES, REPORTS AND PAYMENTS
                   -------------------------------------------

4.01     In consideration of the rights granted by Philips, Licensee shall, upon
         execution of this Agreement, make a non-refundable payment of US$
         10,000 (ten thousand US Dollars) to Philips. From this amount of US$
         10,000, an amount of US$ 5,000 (five thousand US Dollars) shall be
         regarded as an advance payment against royalties payable pursuant to
         Article 4.02.

4.02     In further consideration of the rights granted hereunder by Philips to
         Licensee, Licensee agrees to pay to Philips a royalty on each Licensed
         Product sold by Licensee in which any one or more of the Licensed
         Patent(s) is (are) used, irrespective of whether such Licensed
         Patent(s) is (are) used in the country of manufacture, sale or other
         disposal.

         This royalty shall amount to US$ 0.05 (five US Dollar cents) for each
         such Licensed Product.

         Provided that Licensee is in full compliance with its obligations under
         this Agreement, and subject to Article 5.01, the royalty applicable to
         Licensed Products sold after July 1, 2002 shall amount to US$ 0.0375
         (three and three quarters of a US Dollar cent) instead of the
         aforementioned rate of US$ 0.05 for each Licensed Product. In the event
         that Licensee fails to comply at any time with any of its obligations
         hereunder, a royalty rate of US$ 0.05 shall apply to Licensee's
         manufacture and sale of Licensed Products instead of the royalty rate
         of US$ 0.0375, with immediate effect from the moment of such
         non-compliance until such moment that Licensee's non-compliance will
         have been remedied in full.

         A Licensed Product shall be considered sold when invoiced or, if not
         invoiced, when delivered to a party other than Licensee.

         No royalties shall be payable on Licensed Products purchased by
         Licensee on a "have made" basis in accordance with Article 3 from third
         party manufacturers, duly licensed by Philips, provided that Licensee
         can demonstrate to Philips' satisfaction, that such third party
         manufacturer has paid to Philips the royalties due in respect of such
         Licensed Products.

         For the avoidance of doubt, in the event that the manufacture by
         Licensee of Licensed Products within the Territory would not infringe
         any of the Licensed Patents, Licensee shall have no obligation to pay
         royalties in respect of Licensed Products manufactured within the
         Territory and which are directly sold for final use within the
         Territory or directly exported for final use to a country in which no
         Licensed Patents subsist.

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4.03     Within 30 days following 31 March, 30 June, 30 September and 31
         December of each year during the term of this Agreement, Licensee shall
         submit to Philips (even in the event that no sales have been made) a
         written statement in the form as attached hereto as Exhibit C3 (Royalty
         Reporting Form), signed by a duly authorized officer on behalf of
         Licensee, setting forth with respect to the preceding quarterly period:

         (1)      the quantities of DVD-Discs manufactured by Licensee specified
                  per individual type of DVD-Disc;

         (2)      the quantities of DVD-Discs purchased from other licensed
                  manufacturers in accordance with the provisions of Article 3,
                  specified per individual type of DVD-Disc;

         (3)      on a per-country basis, specifying for each individual type of
                  DVD-Disc:

                  (a)      the quantities of DVD-Discs sold or otherwise
                           disposed of, specifying the identity of the buyers
                           and the trademarks used on or in connection with the
                           DVD-Discs;

                  (b)      the quantities of DVD-Discs sold to other
                           manufacturers, duly licensed by Philips, specifying
                           the identity of such other manufacturers and the
                           trademarks used on or in connection with the
                           DVD-Discs;

         (4)      a computation of the royalties due under this Agreement.

         Licensee shall pay the royalties due to Philips within 30 days after
         the end of each quarterly period, in US Dollars.

4.04     In the event that Licensee fails to submit to Philips a Royalty
         Reporting Form for any royalty reporting period within 30 days from the
         end of the relevant reporting period in accordance with the provisions
         of Article 4.03, Licensee shall be obliged to pay to Philips within 30
         days after the end of the relevant quarterly period for which the
         Royalty Reporting Form was not submitted, an estimated royalty
         (hereinafter referred to as an "Advance"), being an amount equal to the
         highest amount of royalties due for any royalty reporting period over
         the preceding eight royalty reporting periods (or over all preceding
         royalty reporting periods if fewer than eight). Such payment shall be
         treated as a non-refundable advance, primarily against the royalties
         and interest for the relevant royalty reporting period and then, if any
         sum remains, against any future royalties or other payments payable by
         Licensee hereunder. Licensee acknowledges and agrees that any Advance
         shall not be due by way of penalty but that such payment shall
         constitute a non-refundable advance as aforesaid. For the avoidance of
         doubt: such payment shall be payable without any further notice or
         action by Philips, legal or otherwise, and shall take effect by virtue
         of the failure to submit a Royalty Reporting Form on time; the payment
         by Licensee of an Advance shall not affect Licensee's obligation to
         submit a Royalty Reporting Form; the payment by Licensee of an Advance
         shall be without prejudice to any other rights or remedies of Philips,
         including, without limitation, Philips' right to charge 2% interest per
         month on overdue payments (including overdue payments of the Advance),
         and Philips' right to terminate this Agreement in accordance with its
         provisions. The Advance will not be set off against other sums due to
         Philips until a Royalty Reporting Form has been submitted in respect of
         the relevant royalty reporting period. In respect of any royalty
         reporting period for which an Advance has been paid and the Royalty

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         Reporting Form subsequently submitted, Philips will first set off
         against the Advance all royalties and interest due for that period.
         Any remaining sum from the Advance will be set off against further
         royalty, interest or Advance payments due to Philips hereunder
         (if any).

4.05     Licensee shall submit to Philips, once per calendar year, an audit
         statement by its external auditors, who shall be public certified
         auditors, confirming that the quarterly royalty statements as submitted
         by Licensee to Philips for the last four quarterly periods, are true,
         complete and accurate in every respect. Such statement must meet
         Philips' requirements as specified in the Audit Guidelines attached
         hereto as Exhibit C1 and shall be submitted to Philips within 90 days
         following the end of Licensee's financial year. The correctness of this
         audit statement shall be verified by Philips by means of a work paper
         review, conducted by one of the public certified auditors selected by
         Philips. Notwithstanding this audit statement, Philips reserves the
         right to inspect the books and records of Licensee from time to time in
         accordance with Article 4.10.

4.06     Within 30 days following the expiration or termination of this
         Agreement, Licensee shall submit to Philips a certified report on the
         number of Licensed Products in stock at the time of expiration or
         termination of this Agreement. Royalties, calculated in accordance with
         Article 4.02, shall be due and payable on all Licensed Products
         manufactured prior to, but remaining in stock with Licensee on the date
         of expiration or termination of this Agreement. For the avoidance of
         doubt, this Article 4.06 shall be without prejudice to the provisions
         of Article 10.06.

4.07     Any payment under this Agreement which is not made on the date(s)
         specified herein, shall accrue interest at the rate of 2% (two per
         cent) per month (or part thereof) or the maximum amount permitted by
         law, whichever is lower.

4.08     All payments to Philips under this Agreement shall be made by transfer
         in such currency, convertible in the sense of Articles VIII and XIX of
         the Articles of Agreement of the International Monetary Fund, as
         designated by Philips. The rate of exchange for converting the currency
         of the Territory shall be the telegraphic transfer selling rate of the
         designated currency as officially quoted in the Territory by the
         officially authorized foreign exchange bank for payment of currency
         transactions on the day that the amount is due and payable.

4.09     All costs, stamp duties, taxes and other similar levies arising from or
         in connection with the conclusion of this Agreement shall be borne by
         Licensee. However, in the event that the government of a country
         imposes any income taxes on payments made by Licensee to Philips
         hereunder and requires Licensee to withhold such tax from such
         payments, Licensee may deduct such tax from such payments. In such
         event, Licensee shall promptly provide Philips with tax receipts issued
         by the relevant tax authorities so as to enable Philips to support a
         claim for credit against income taxes which may be payable by Philips
         and/or its Associated Companies in The Netherlands and to enable
         Philips to document, if necessary, its compliance with tax obligations
         in any jurisdiction outside The Netherlands.

4.10     In order that the royalty statements provided for in this Article 4 may
         be verified, Licensee shall keep complete and accurate books and
         records and shall keep the books and records available for a period of
         5 years following the manufacture, sale or other disposal of each
         Licensed Product.

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         In order to verify the correctness of the aforementioned royalty
         statements, Philips shall have the right to inspect the books and
         records of Licensee from time to time. Any such inspection shall take
         place no more than once per calendar year and shall be conducted by a
         public certified auditor appointed by Philips. Philips shall give
         Licensee written notice of such inspection at least 7 days prior to the
         inspection. Licensee shall willingly co-operate and provide all such
         assistance in connection with such inspection as Philips and/or the
         auditor may require. The inspection shall be conducted at Philips' own
         expense, provided that in the event that Licensee has failed to submit
         royalty statements and/or yearly written statement(s) by its external
         auditors, as provided for in Article 4.03 and Article 4.05, in respect
         of the period to which the inspection relates or in the event that any
         discrepancy or error exceeding 3% (three per cent) of the monies
         actually due is established, the cost of the inspection shall be borne
         by Licensee, without prejudice to any other claim or remedy as Philips
         may have under this Agreement or under applicable law.

         Philips' right of inspection as set out in this Article 4.10 shall
         survive termination or expiration of this Agreement.

4.11     Without prejudice to the provisions of Article 4.10, Licensee shall
         provide all relevant additional information as Philips may reasonably
         request from time to time, so as to enable Philips to ascertain which
         products manufactured, sold or otherwise disposed of by Licensee are
         subject to the payment of royalties to Philips hereunder, the patents
         which have been used in connection with such products, and the amount
         of royalties payable.

4.12     As a condition precedent to the entry into force of this Agreement,
         Licensee shall submit to Philips a royalty statement in respect of
         DVD-Discs manufactured and sold or otherwise disposed of by Licensee
         before the Effective Date of this Agreement in accordance with the
         provisions of Article 4.03. Within 7 days following the execution of
         this Agreement, Licensee shall pay to Philips the royalties on such
         DVD-Discs, calculated by applying the royalty rate of US$ 0.05 for each
         such DVD-Disc. The royalty statement shall similarly be subject to
         Philips' right of audit as set out in Article 4.10. Within 45 days
         following the execution of this Agreement, Licensee shall submit to
         Philips an audit statement by its external auditors, who shall be
         public certified auditors, confirming that this royalty statement is
         true, complete and accurate in every respect.

                                   ARTICLE 5
                  MANUFACTURING EQUIPMENT IDENTIFICATION SYSTEM
                  ---------------------------------------------

5.01     Upon signing of the Agreement, Licensee shall submit to Philips an
         overview of its manufacturing equipment used for the manufacture of
         Licensed Products. Further, upon any acquisition, transfer or disposal
         of manufacturing equipment used for the manufacture of Licensed
         Products, Licensee shall submit to Philips details of any such
         adjustment(s) to its manufacturing equipment. Further, Licensee shall
         submit to Philips an overview containing all adjustments to its
         manufacturing equipment during the preceding year, together with and
         confirmed by the audit statement referred to in Article 4.05. Such
         overview shall be in the form as attached hereto as Exhibit C2
         (Manufacturing Equipment List), signed by a duly authorized officer on
         behalf of Licensee. The royalty rate of US$ 0.0375 referred to in
         Article 4.02 shall only apply to Licensed Products manufactured by
         Licensee using manufacturing equipment properly identified in the
         Manufacturing Equipment List and shall be conditional upon Licensee
         submitting to Philips the audit statement meeting Philips' requirements
         as set out in the Audit Guidelines, in accordance with the provisions
         in Article 4.05. In the event

<PAGE>

         that Licensee puts into use newly acquired manufacturing equipment
         (i.e. manufacturing equipment acquired after May 6, 2002) which has
         been used for the manufacture of Licensed Products prior to the
         acquisition by Licensee, the royalty rate of US$ 0.0375 shall only
         apply if Licensee can demonstrate to Philips' full satisfaction, that
         the newly acquired manufacturing equipment originates from and has been
         used by a company which was properly licensed by Philips for the
         manufacture of Licensed Products and in full compliance with its
         obligations under its license agreement at the time of the acquisition
         of the newly acquired manufacturing equipment by Licensee. In the event
         that Licensee is unable to comply with the requirements under this
         Article 5.01, a royalty rate of US$ 0.05 shall apply to Licensee's
         manufacture and sale of Licensed Products instead of the royalty rate
         of US$ 0.0375.

                     ARTICLE 6 - MOST FAVOURABLE CONDITIONS
                     --------------------------------------

6.01     In the event that licenses under the patents referred to in Article 2
         are granted by Philips for Licensed Products to a third party under
         substantially similar conditions, but at a royalty rate more favourable
         than the rate payable by Licensee under this Agreement, Licensee shall
         be entitled to the same royalty rate as applicable to such third party,
         provided always that this right of Licensee shall not apply in respect
         of cross-license agreements or other agreements providing for a
         consideration which is not exclusively based on payment of royalties
         and further provided that this right of Licensee shall not apply in
         respect of licenses or other arrangements made pursuant to a court
         decision or the settlement of a dispute between Philips and a third
         party, irrespective of the nature of such dispute, the terms of the
         court decision or the settlement terms.

                   ARTICLE 7 - NO WARRANTY AND INDEMNIFICATION
                   -------------------------------------------

7.01     Philips makes no representation or warranty as to the ability of
         Licensee to achieve interchangeability with respect to Licensed
         Products. Philips makes no warranty whatsoever that the use of
         information supplied by Philips does not infringe or may not cause
         infringement of any industrial or intellectual property rights owned or
         controlled by third parties, or any industrial or intellectual property
         rights owned or controlled by Philips, Sony, Pioneer or their
         respective Associated Companies not licensed pursuant to Article 2.

7.02     It is acknowledged by Licensee that third parties may own industrial
         and/or intellectual property rights in the field of DVD-Discs. Licensee
         acknowledges and agrees that Philips, Sony, Pioneer and their
         respective Associated Companies make no warranty whatsoever that the
         manufacture, sale or other disposal of any Licensed Product does not
         infringe or will not cause infringement of any industrial and/or
         intellectual property rights other than the Licensed Patents. Philips,
         Sony, Pioneer and their respective Associated Companies shall be fully
         indemnified and held harmless by Licensee from and against any and all
         third party claims in connection with DVD-Discs manufactured, sold or
         otherwise disposed of by Licensee.

                           ARTICLE 8 - CONFIDENTIALITY
                           ---------------------------

8.01     Licensee shall, during the term of this Agreement as specified in
         Article 10.01 and for a period of 3 years thereafter, not disclose to
         any third party any information acquired from Philips or any of
         Philips' Associated Companies in connection with this Agreement, or use
         such information for

<PAGE>

         any other purpose than the manufacture or disposal of Licensed Products
         in accordance with this Agreement. This obligation shall not apply to
         the extent information so acquired:

         (a)      was known to Licensee prior to the date on which such
                  information was acquired from Philips or any of Philips'
                  Associated Companies, as shown by records of Licensee or
                  otherwise demonstrated to Philips' satisfaction;

         (b)      is or has become available to the public through no fault of
                  Licensee;

         (c)      was or is received from a third party who was under no
                  confidentiality obligation in respect of such information.

8.02     PHILIPS SHALL, DURING THE TERM OF THIS AGREEMENT AS SPECIFIED IN
         ARTICLE 10.01 AND FOR A PERIOD OF 3 YEARS THEREAFTER, NOT DISCLOSE TO
         ANY THIRD PARTY ANY CONFIDENTIAL INFORMATION OBTAINED IN CONNECTION
         WITH ARTICLE 4.03, ARTICLE 4.05 AND/OR ARTICLE 5, EXCEPT THAT PHILIPS
         MAY DISCLOSE SUCH INFORMATION TO ITS EXTERNAL AUDITORS, LEGAL
         REPRESENTATIVES AND TO THE COMPETENT COURTS TO THE EXTENT THIS IS
         NECESSARY FOR PHILIPS IN CONNECTION WITH THE ENFORCEMENT OF ITS RIGHTS
         HEREUNDER. FURTHER, PHILIPS SHALL NOT USE SUCH INFORMATION FOR OTHER
         PURPOSES THAN TO VERIFY LICENSEE'S COMPLIANCE WITH ITS ROYALTY
         REPORTING AND PAYMENT OBLIGATIONS AS PROVIDED IN THIS AGREEMENT AND TO
         ENFORCE PHILIPS' RIGHTS HEREUNDER. PHILIPS' OBLIGATIONS SET OUT IN THIS
         PARAGRAPH SHALL NOT APPLY TO INFORMATION REFERRED TO IN SECTIONS A, B
         AND/OR C OF ARTICLE 8.01.

                            ARTICLE 9 - NO ASSIGNMENT
                            -------------------------

9.01     This Agreement shall inure to the benefit of and be binding upon each
         of the parties hereto and their respective assignees. It may not be
         assigned in whole or in part by Licensee without the prior written
         consent of Philips.

                        ARTICLE 10 - TERM AND TERMINATION
                        ---------------------------------

10.01    This Agreement shall enter into force on the "Effective Date", being
         the date first written above. In the event that validation of this
         Agreement is required by the competent governmental authorities, the
         Effective Date shall be the date of such validation. This Agreement
         shall remain in force for a period of 10 years from the Effective Date,
         unless terminated earlier in accordance with the provisions of this
         Article 10.

10.02    Without prejudice to the provisions of Article 10.03 through 10.06,
         each party may terminate this Agreement at any time by means of written
         notice to the other party in the event that the other party fails to
         perform any obligation under this Agreement and such failure is not
         remedied within 30 days after receipt of a notice specifying the nature
         of such failure and requiring it to be remedied. Such right of
         termination shall not be exclusive of any other remedies or means of
         redress to which the non-defaulting party may be lawfully entitled and
         all such remedies shall be cumulative. Any such termination shall not
         affect any royalties or other payment obligations under this Agreement
         accrued prior to such termination.

10.03    Philips may terminate this Agreement forthwith by means of notice in
         writing to Licensee in the event that a creditor or other claimant
         takes possession of, or a receiver, administrator or similar officer is
         appointed over any of the assets of Licensee or in the event that
         Licensee

<PAGE>

         makes any voluntary arrangement with its creditors or becomes subject
         to any court or administration order pursuant to any bankruptcy or
         insolvency law.

10.04    Additionally, insofar as legally permitted, Philips may terminate this
         Agreement at any time by means of written notice to Licensee in case
         Licensee or an Associated Company of Licensee has been found liable by
         a competent court or administrative authority to have committed a
         serious act of piracy with respect to copyrights of third parties.

10.05    Philips shall have the right to terminate this Agreement forthwith or
         to revoke the license granted under any of Philips', Sony's or
         Pioneer's respective patents in the event that Licensee or any of its
         Associated Companies brings a claim for infringement of any of its
         essential patents relating to DVD-Discs or DVD Players against Philips,
         Sony, Pioneer or any of their respective Associated Companies and
         Licensee refuses to license such patents on fair and reasonable
         conditions.

10.06    Upon the termination of this Agreement by Philips for any reason
         pursuant to Article 10.02 through 10.05, Licensee shall immediately
         cease the manufacture, sale or other disposal of DVD-Discs in which any
         one or more of the Licensed Patents are used. Further, upon such
         termination, any and all amounts outstanding hereunder shall become
         immediately due and payable.

10.07    All provisions of this Agreement which are intended to survive (whether
         express or implied) the expiry or termination of this Agreement, shall
         so survive.

                           ARTICLE 11 - MISCELLANEOUS
                           --------------------------

11.01    Any notice required under this Agreement to be sent by either party
         shall be given in writing by means of a letter or facsimile directed:

         in respect of Licensee, to:

         Metatec International, Inc.
         7001 Metatec Blvd.,
         Dublin, Ohio 43017
         Fax: (614) 766-3163

         in respect of Philips, to:

         Koninklijke Philips Electronics N.V.
         c/o Philips International B.V.
         Intellectual Property & Standards - Legal Department
         P.O. Box 80002, Building SFF-8
         5600 JB Eindhoven
         The Netherlands
         Fax.+31 40 2734131

         with a copy to:

         U.S. Philips Corporation

<PAGE>

         580 White Plains Road
         Tarrytown, New York 10591

         or such other address as may have been previously specified in writing
         by either party to the other.

11.02    This Agreement sets forth the entire understanding and agreement
         between the parties as to the subject matter hereof and supersedes and
         replaces all prior arrangements, discussions and understandings between
         the parties relating thereto. Neither party shall be bound by any
         obligation, warranty, waiver, release or representation, except as
         expressly provided herein, or as may subsequently be agreed in writing
         between the parties.

11.03    Nothing contained in this Agreement shall be construed:

         (a)      as imposing on either party any obligation to instigate any
                  suit or action for infringement of any of the patents licensed
                  hereunder or to defend any suit or action brought by a third
                  party which challenges or relates to the validity of any such
                  patents. Licensee shall have no right to instigate any such
                  suit or action for infringement of any of the patents licensed
                  by Philips hereunder, nor the right to defend any such suit or
                  action which challenges or relates to the validity of any such
                  patent licensed by Philips hereunder;

         (b)      as imposing any obligation to file any patent application or
                  to secure any patent or to maintain any patent in force;

         (c)      as conferring any license or right to copy or imitate the
                  appearance and/or design of any product of Philips, Sony,
                  Pioneer or any of their Associated Companies;

         (d)      as conferring any license to manufacture, sell or otherwise
                  dispose of any product or device other than a Licensed
                  Product.

11.04    Neither the failure nor the delay of either party to enforce any
         provision of this Agreement shall constitute a waiver of such provision
         or of the right of either party to enforce each and every provision of
         this Agreement.

11.05    Should any provision of this Agreement be finally determined void or
         unenforceable in any judicial proceeding, such determination shall not
         affect the operation of the remaining provisions hereof, provided that,
         in such event, Philips shall have the right to terminate this Agreement
         by written notice to Licensee.

11.06    This Agreement shall be governed by and construed in accordance with
         the laws of The State of New York.

         Any dispute between the parties hereto in connection with this
         Agreement (including any question regarding its existence, validity or
         termination) shall be submitted to any state or federal courts in The
         State of New York, provided always that, in case Philips is the
         plaintiff, Philips may at its sole discretion submit any such dispute
         either to the state or federal courts in the venue of Licensee's
         registered office, or to any of the state or federal courts in the
         Territory having jurisdiction. Licensee hereby irrevocably waives any
         objection to the jurisdiction, process and venue of any such court and
         to the effectiveness, execution and

<PAGE>

         enforcement of any order or judgment (including, but not limited to, a
         default judgment) of any such court in relation to this Agreement, to
         the maximum extent permitted by the law of any jurisdiction, the laws
         of which might be claimed to be applicable regarding the effectiveness,
         enforcement or execution of such order or judgment.

AS WITNESS, the parties hereto have caused this Agreement to be signed on the
date first written above.

KONINKLIJKE PHILIPS ELECTRONICS                  METATEC INTERNATIONAL, INC.
N.V.

/s/ B. Mache                                       /s/ Gary W. Qualmann
-------------------------------                  -----------------------------
Name:  Bernd Mache                               Name:  Gary W. Qualmann

Title:  Chief Financial Officer                  Title: Chief Financial Officer
      -------------------------                        -----------------------
Date:   August 13, 2002                          Date:  August 9, 2002
     --------------------------                       ------------------------<PAGE>

                                  EXHIBIT 10.2

                  Patent License Agreement for the Use of AC-3 Technology in the
                  Manufacture of DVD-Video Discs dated August 9, 2002, between
                  Koninklijke Philips Electronics N.V. and Metatec
                  International, Inc.

This Agreement is entered into this 9th day of  August, 2002 by and between

KONINKLIJKE PHILIPS ELECTRONICS N.V., having its registered offices in
Eindhoven, The Netherlands, (hereinafter referred to as "Philips")

and

METATEC INTERNATIONAL, INC., having its registered office in 7001 Metatec Blvd.,
Dublin, Ohio 43017 (hereinafter referred to as "Licensee")

WHEREAS, Licensee is engaged in the manufacture of DVD-Video Discs and, in the
process of such manufacture, is making use of the technology developed by Dolby
Laboratories Inc. and known as AC-3;

WHEREAS, Philips, Institut fur Rundfunk Technik G.m.b.H. of Munchen, Germany,
(IRT) and France Telecom R&D of Issy Les Moulineaux, France (France Telecom) own
certain patents relating to the AC-3 technology, these patents (hereinafter
referred to as "Licensed Patents") are listed in Exhibit I hereto;

WHEREAS, Philips has been authorized by IRT and France Telecom to grant licenses
for the use of the Licensed Patents in connection with the manufacture of
DVD-Video Discs making use of the AC-3 technology, while IRT and France Telecom
each retain the right also to license their respective patents relating to the
AC-3 technology separately so that interested manufacturers may opt to take out
individual licenses under the relevant patents of Philips, IRT and France
Telecom instead of a combined license;

WHEREAS, Licensee has requested from Philips a license under the Licensed
Patents in connection with the manufacture of DVD-Video Discs making use of AC-3
and Philips is willing to grant such license on the conditions set forth herein;

IT IS HEREBY AGREED AS FOLLOWS:

                             ARTICLE 1 - DEFINITIONS
                             -----------------------

1.01     "DISC" shall mean a non-recordable reflective disc-shaped information
         carrier comprising any kind of information including, but not limited
         to, audio, video, text and/or data related information, which is
         irreversibly stored in one or more layers during and as an integral
         part of the manufacturing process of the disc in a form which is
         optically readable by playback devices using a laser-beam.

1.02     "PLAYER" shall mean a playback device for optically reading information
         stored on a Disc and converting such information into electrical
         signals for reproduction purposes.

<PAGE>

1.03     "DVD-VIDEO DISC" shall mean a replicated Disc comprising any kind of
         information including, but not limited to, audio, video, text, and/or
         data related information, encoded in digital form, which is optically
         readable by a DVD-Video Player (as hereinafter defined).

1.04     "DVD-VIDEO PLAYER" shall mean a Player capable of reproducing
         information stored on a DVD-Video Disc and converting such information
         into electrical signals, in accordance with the DVD-Video and DVD-ROM
         Standard Specifications (as hereinafter defined), which electrical
         signals are directly capable and intended to be used for visual
         reproduction through standard television receivers and/or video
         monitors.

1.05     "DVD-VIDEO AND DVD-ROM STANDARD SPECIFICATIONS" shall mean the
         specifications for the DVD Systems, as specified in the document "DVD
         Specifications for Read-Only Disc, version 1.0 (parts 1, 2 and 3)" of
         August 1996, or any updated version thereof, as issued by the DVD
         Format/Logo Licensing Corporation.

1.06     "LICENSED PRODUCT(S)" shall mean DVD-Video Discs incorporating the AC-3
         technology, manufactured and/or sold in accordance with the provisions
         hereof, which have been duly reported and on which the royalties due
         hereunder are paid in accordance with the provisions of this Agreement.

1.07     "LICENSED PATENTS" shall mean the patents as listed in Exhibit I
         hereto.

         The term "ESSENTIAL" as used in relation to patents in this Agreement
         shall refer to patents, the use of which is necessary (either directly
         or as a practical matter) for the use of the AC-3 technology in
         connection with the Licensed Products.

         Philips will commission an independent patent expert to review the
         European, Japanese and US patents listed as essential in Exhibit I in
         order to confirm the essentiality of such patents. In the event that
         said independent expert would find that any of the patents would not
         qualify as essential as defined in this Agreement, Philips shall delete
         such patent (as well as the equivalent national patents) from the
         relevant Exhibit and such patent will be put on the relevant Exhibit of
         non-essential patents. Any such finding and deletion however, shall not
         affect the obligation of Licensee to pay the royalty on each Licensed
         Product as specified in Article 3.01, provided that, in the event that
         none of the Licensed Patents would be infringed by the manufacture of
         Licensed Products within the Territory, Licensee shall have no
         obligation to pay royalties in respect of Licensed Products
         manufactured within the Territory and which are directly sold for final
         use within the Territory or directly exported for final use to a
         country in which no Licensed Patents subsist. Notwithstanding such
         deletion, Licensee shall retain the right to continue the use of such
         deleted patent(s) in accordance with this Agreement, without any
         additional payment, unless Licensee explicitly notifies Philips in
         writing of its decision to waive such right.

         In the event that Philips or IRT or France Telecom (or any of their
         Associated Companies, as hereinafter defined) would have additional
         patents (other than patents acquired from third parties after the date
         of January 1, 1997) in its patent portfolio which are essential to the
         manufacture, sale or other disposal of Licensed Products and which have
         a filing date or are entitled to a so-called priority date prior to
         January 1, 1997, but which have not been listed as essential patents in
         the Exhibit hereto, Philips will notify Licensee accordingly and such
         additional patents will be added to the Licensed Patents. Any patents
         as may be added as

<PAGE>

         essential patents to the Exhibit, will similarly be subject to the
         review by the independent patent expert in accordance with the
         preceding paragraph.

         The patent lists provided to Licensee upon execution of the Agreement
         are subject to change in accordance with the provisions of this
         Agreement. With regard to the rights granted to Licensee hereunder, the
         patent lists published by Philips on its website
         (www.licensing.philips.com) or otherwise communicated by Philips to
         Licensee after the date of execution hereof shall prevail over the
         lists provided to Licensee upon execution of this Agreement.

1.08     "Associated Company" shall mean any one or more business entities (1)
         owned or controlled by Philips, IRT, France Telecom or Licensee, (2)
         owning or controlling Philips, IRT, France Telecom or Licensee, or (3)
         owned or controlled by the business entity owning or controlling
         Philips, IRT, France Telecom or Licensee at the material time. For the
         purposes of this definition a business entity shall be deemed to own
         and/or to control another business entity if more than 50% (fifty per
         cent) of the voting stock of the latter business entity, ordinarily
         entitled to vote in the election of directors, (or, if there is no such
         stock, more than 50% (fifty per cent) of the ownership of or control in
         the latter business entity) is held by the owning and/or controlling
         business entity.

1.09     "Territory" shall mean the geographic area known as the United States
         of America, its territories and possessions.

                           ARTICLE 2 - GRANT OF RIGHTS
                           ---------------------------

2.01     For the term of this Agreement, Philips hereby grants to Licensee a
         non-exclusive, non-transferable license under the Licensed Patents to
         use the AC-3 technology in the manufacture of Licensed Products within
         the Territory and to sell or otherwise dispose of Licensed Products so
         manufactured in all countries of the world.

2.02     In consideration of the undertakings set forth in Articles 2.01, 202
         and 2.04 and similar undertakings by third party licensees of Philips
         and without prejudice of the provisions of Article 5, for a period of
         ten years from the Effective Date (as hereinafter defined) Licensee
         agrees to grant to Philips, IRT, France Telecom and their respective
         Associated Companies in respect of the use of the AC-3 technology in
         the manufacture of DVD-Video Discs, non-exclusive, non-transferable
         licenses, on reasonable, non-discriminatory conditions comparable to
         those set forth herein, to use the AC-3 technology in the manufacture
         of DVD-Video Discs and to sell or otherwise dispose of DVD-Video Discs,
         under any and all present and future patents, for which Licensee or its
         Associated Companies have or may hereafter acquire the right to grant
         licenses and which are essential to the use of AC-3 technology in the
         manufacture of DVD-Video Discs and the subsequent sale or other
         disposal thereof, and which patents were first filed in any country of
         the world prior to the date of termination of this Agreement.

2.03     Philips undertakes that it will offer, at the request of any of
         Licensee's Associated Companies, which has concluded a DVD Video Disc
         and DVD ROM Disc Patent License Agreement, to any such Associated
         Company, a non-exclusive and non- transferable license under the
         Licensed Patents to use the AC-3 technology in the manufacture of
         DVD-Video Discs on reasonable and non-discriminatory conditions
         comparable to those set forth herein, to manufacture, sell or otherwise
         dispose of DVD-Video Discs incorporating the

<PAGE>

         AC-3 technology.

         In consideration of Philips' undertaking as set out in the preceding
         paragraph, Licensee undertakes that all of its Associated Companies
         which have or may hereafter acquire patents essential to the
         manufacture, sale or other disposal of DVD-Video Discs incorporating
         the AC-3 technology and which patents were first filed in any country
         of the world prior to the date of termination of this Agreement, shall
         make available licenses under such patents, on reasonable,
         non-discriminatory conditions comparable to those set forth herein to
         Philips, any of Philips' Associated Companies and to other third
         parties who have entered or will enter into a license agreement with
         Philips or an Associated Company of Philips in respect of DVD-Video
         Discs incorporating the AC-3 technology.

                   ARTICLE 3 - ROYALTIES, REPORTS AND PAYMENTS
                   -------------------------------------------

3.01     In consideration of the rights granted hereunder by Philips to
         Licensee, Licensee agrees to pay to Philips a royalty of US$ 0.003
         (three tenths of a US dollar cent) on each Licensed Product sold by
         Licensee, in which any one or more of the Licensed Patent(s) is (are)
         used, irrespective of whether such Licensed Patent(s) is (are) used in
         the country of manufacture, sale or other disposal.

         A Licensed Product shall be considered sold when invoiced or, if not
         invoiced, when delivered to a party other than Licensee.

         For the avoidance of doubt, in the event the manufacture by Licensee of
         Licensed Products within the Territory would not infringe any of the
         Licensed Patents, Licensee shall have no obligation to pay the
         royalties due on the basis of this Agreement in respect of Licensed
         Products manufactured within the Territory and which are directly sold
         for final use within the Territory or directly exported for final use
         to a country in which no Licensed Patents subsist.

3.02     Within 30 days following 31 March, 30 June, 30 September and 31
         December of each year during the term of this Agreement, Licensee shall
         submit to Philips (even in the event that no sales have been made) a
         written statement, signed by a duly authorized officer on behalf of
         Licensee, setting forth with respect to the preceding quarterly period:

         (1)      the quantities of DVD-Video Discs incorporating the AC-3
                  technology manufactured by Licensee;

         (2)      a computation of the royalties due under this Agreement.

         Licensee shall pay the royalties due to Philips within 30 days after
         the end of each quarterly period, in US Dollars.

         Licensee shall submit to Philips, once per calendar year, an audit
         statement by its external auditors, who shall be public certified
         auditors, confirming that the quarterly royalty statements as submitted
         by Licensee to Philips for the last four quarterly periods, are true,
         complete and accurate in every respect. Such statement shall be
         submitted within 90 days following the end of Licensee's financial
         year.

 3.03    Within 30 days following the expiration or termination of this
         Agreement, Licensee shall submit to Philips a certified report on the
         number of Licensed Products in stock at the time of

<PAGE>

         expiration or termination of this Agreement. Royalties, calculated in
         accordance with Article 3.01, shall be due and payable on all Licensed
         Products manufactured prior to, but remaining in stock with Licensee on
         the date of expiration or termination of this Agreement. For the
         avoidance of doubt, this Article 3.03 shall be without prejudice to the
         provisions of Article 5.06.

3.04     Any payment under this Agreement which is not made on the date(s)
         specified herein, shall accrue interest at the rate of 2% (two per
         cent) per month (or part thereof) or the maximum amount permitted by
         law, whichever is lower.

3.05     All payments to Philips under this Agreement shall be made by transfer
         in such currency, convertible in the sense of Articles VIII and XIX of
         the Articles of Agreement of the International Monetary Fund, as
         designated by Philips. The rate of exchange for converting the currency
         of the Territory shall be the telegraphic transfer selling rate of the
         designated currency as officially quoted in the Territory by the
         officially authorized foreign exchange bank for payment of currency
         transactions on the day that the amount is due and payable.

3.06     All costs, stamp duties, taxes and other similar levies arising from or
         in connection with the conclusion of this Agreement shall be borne by
         Licensee. However, in the event that the government of a country
         imposes any income taxes on payments made by Licensee to Philips
         hereunder and requires Licensee to withhold such tax from such
         payments, Licensee may deduct such tax from such payments. In such
         event, Licensee shall promptly provide Philips with tax receipts issued
         by the relevant tax authorities so as to enable Philips to support a
         claim for credit against income taxes which may be payable by Philips
         and/or its Associated Companies in The Netherlands and to enable
         Philips to document, if necessary, its compliance with tax obligations
         in any jurisdiction outside The Netherlands.

3.07     In order that the royalty statements provided for in this Article 3 may
         be verified, Licensee shall keep complete and accurate books and
         records and shall keep the books and records available for a period of
         5 years following the manufacture, sale or other disposal of each
         Licensed Product.

         In order to verify the correctness of the aforementioned royalty
         statements, Philips shall have the right to inspect the books and
         records of Licensee from time to time. Any such inspection shall take
         place no more than once per calendar year and shall be conducted by a
         public certified auditor appointed by Philips. Philips shall give
         Licensee written notice of such inspection at least 7 days prior to the
         inspection. Licensee shall willingly co-operate and provide all such
         assistance in connection with such inspection as Philips and/or the
         auditor may require. The inspection shall be conducted at Philips' own
         expense, provided that in the event that Licensee has failed to submit
         royalty statements and/or yearly written statement(s) by its external
         auditors, as provided for in Article 3.02, in respect of the period to
         which the inspection relates or in the event that any discrepancy or
         error exceeding 3% (three per cent) of the monies actually due is
         established, the cost of the inspection shall be borne by Licensee,
         without prejudice to any other claim or remedy as Philips may have
         under this Agreement or under applicable law.

         Philips' right of inspection as set out in this Article 3.07 shall
         survive termination or expiration of this Agreement.

3.08     Without prejudice to the provisions of Article 3.07, Licensee shall
         provide all relevant additional information as Philips may reasonably
         request from time to time, so as to enable

<PAGE>

         Philips to ascertain which products manufactured, sold or otherwise
         disposed of by Licensee are subject to the payment of royalties to
         Philips hereunder, the patents which have been used in connection with
         such products, and the amount of royalties payable.

3.09     As a condition precedent to the entry into force of this Agreement,
         Licensee shall submit to Philips a royalty statement in respect of
         DVD-Video Discs incorporating the AC-3 technology manufactured and sold
         or otherwise disposed of by Licensee before the Effective Date of this
         Agreement in accordance with the provisions of Article 3.02. Within 7
         days following the execution of this Agreement, Licensee shall pay to
         Philips the royalties on such DVD-Video Discs incorporating the AC-3
         technology, calculated by applying the royalty rate of US$ 0.003 for
         each such DVD-Video Disc incorporating the AC-3 technology. The royalty
         statement shall similarly be subject to Philips' right of audit as set
         out in Article 3.07. Within 45 days following the execution of this
         Agreement, Licensee shall submit to Philips an audit statement by its
         external auditors, who shall be public certified auditors, confirming
         that this royalty statement is true, complete and accurate in every
         respect.

                   ARTICLE 4 - NO WARRANTY AND INDEMNIFICATION
                   -------------------------------------------

4.01     It is acknowledged by Licensee that third parties may own industrial
         and/or intellectual property rights in the field of the AC-3
         technology. Licensee acknowledges and agrees that Philips, IRT and
         France Telecom and their respective Associated Companies make no
         warranty whatsoever that the use of the AC-3 technology or the
         manufacture, sale or other disposal of any Licensed Product does not
         infringe or will not cause infringement of any industrial and/or
         intellectual property rights other than the Licensed Patents.

                        ARTICLE 5 - TERM AND TERMINATION
                        --------------------------------

5.01     This Agreement shall enter into force on the "Effective Date", being
         the date first written above. In the event that validation of this
         Agreement is required by the competent governmental authorities, the
         Effective Date shall be the date of such validation. This Agreement
         shall remain in force for a period of 10 years from the Effective Date,
         unless terminated earlier in accordance with the provisions of this
         Article 5.

5.02     Without prejudice to the provisions of Article 5.03 through 5.06, each
         party may terminate this Agreement at any time by means of written
         notice to the other party in the event that the other party fails to
         perform any obligation under this Agreement and such failure is not
         remedied within 30 days after receipt of a notice specifying the nature
         of such failure and requiring it to be remedied. Such right of
         termination shall not be exclusive of any other remedies or means of
         redress to which the non-defaulting party may be lawfully entitled and
         all such remedies shall be cumulative. Any such termination shall not
         affect any royalties or other payment obligations under this Agreement
         accrued prior to such termination.

5.03     Philips may terminate this Agreement forthwith by means of notice in
         writing to Licensee in the event that a creditor or other claimant
         takes possession of, or a receiver, administrator or similar officer is
         appointed over any of the assets of Licensee or in the event that
         Licensee makes any voluntary arrangement with its creditors or becomes
         subject to any court or administration order pursuant to any bankruptcy
         or insolvency law.

5.04     Additionally, insofar as legally permitted, Philips may terminate this
         Agreement at any time by means of written notice to Licensee in case
         Licensee or an Associated Company of Licensee has

<PAGE>

         been found liable by a competent court or administrative authority to
         have committed a serious act of piracy with respect to copyrights of
         third parties.

5.05     Philips shall have the right to terminate this Agreement forthwith or
         to revoke the license granted under any of Philips', IRT's or France
         Telecom's respective patents in the event that Licensee or any of its
         Associated Companies brings a claim for infringement of any of its
         patents essential for the use of the AC-3 technology in the manufacture
         of DVD-Video Discs and/or the sale or other disposal thereof against
         Philips, IRT or France Telecom and/or any of their respective
         Associated Companies and Licensee refuses to license such patents on
         fair and reasonable conditions to Philips, IRT and France Telecom
         respectively.

5.06     Upon the termination of this Agreement by Philips for any reason
         pursuant to Article 5.02 through 5.05, Licensee shall immediately cease
         the manufacture, sale or other disposal of DVD-Video Discs
         incorporating the AC-3 technology in which any one or more of the
         Licensed Patents are used. Further, upon such termination, any and all
         amounts outstanding hereunder shall become immediately due and payable.

5.07     All provisions of this Agreement which are intended to survive (whether
         express or implied) the expiry or termination of this Agreement, shall
         so survive.

                            ARTICLE 6 - MISCELLANEOUS
                            -------------------------

6.01     Any notice required under this Agreement to be sent by either party
         shall be given in writing by means of a letter or facsimile directed:

         in respect of Licensee, to:

         Metatec International, Inc.
         7001 Metatec Blvd.,
         Dublin, Ohio 43017
         Fax: (614) 798-5847

         in respect of Philips, to:

         Koninklijke Philips Electronics N.V.
         c/o Philips International B.V.
         Intellectual Property & Standards - Legal Department
         P.O. Box 80002, Building SFF-8
         5600 JB Eindhoven
         The Netherlands
         Fax. +31 40 2734131

         with a copy to:

         U.S. Philips Corporation
         580 White Plains Road
         Tarrytown, New York 10591
         Fax: (914) 332-0615

<PAGE>

         or to such other address as may have been previously specified in
         writing by either party to the other.

6.02     This Agreement sets forth the entire understanding and agreement
         between the parties as to the subject matter hereof and supersedes and
         replaces all prior arrangements, discussions and understandings between
         the parties relating thereto. Neither party shall be bound by any
         obligation, warranty, waiver, release or representation, except as
         expressly provided herein, or as may subsequently be agreed in writing
         between the parties.

6.03     Nothing contained in this Agreement shall be construed:

         (a)      as imposing on either party any obligation to instigate any
                  suit or action for infringement of any of the patents licensed
                  hereunder or to defend any suit or action brought by a third
                  party which challenges or relates to the validity of any of
                  such patents. Licensee shall have no right to instigate any
                  such suit or action for infringement of any of the patents
                  licensed by Philips hereunder, nor the right to defend any
                  such suit or action which challenges or relates to the
                  validity of any such patent licensed by Philips hereunder;

         (b)      as imposing any obligation to file any patent application or
                  to secure any patent or to maintain any patent in force;

         (c)      as conferring any license or right to copy or imitate the
                  appearance and/or design of any product of Philips, IRT,
                  France Telecom or any of their Associated Companies;

         (d)      as conferring any license to manufacture, use, sell or
                  otherwise dispose of any product or device other than a
                  Licensed Product.

6.04     Neither the failure nor the delay of either party to enforce any
         provisions of this Agreement shall constitute a waiver of such
         provision or of the right of either party to enforce each and every
         provision of this Agreement.

6.05     Should any provision of this Agreement be finally determined void or
         unenforceable in any judicial proceeding, such determination shall not
         affect the operation of the remaining provisions hereof, provided that,
         in such event, Philips shall have the right to terminate this Agreement
         by written notice to Licensee.

6.06     This Agreement shall be governed by and construed in accordance with
         the laws of The State of New York.

         Any dispute between the parties hereto in connection with this
         Agreement (including any question regarding its existence, validity or
         termination) shall be submitted to any state or federal courts in The
         State of New York, provided always that, in case Philips is the
         plaintiff, Philips may at its sole discretion submit any such dispute
         to either the state or federal courts in the venue of Licensee's
         registered office, or to any of the state or federal courts in the
         Territory having jurisdiction. Licensee hereby irrevocably waives any
         objection to the jurisdiction, process and venue of any such court and
         to the effectiveness, execution and enforcement of any order or
         judgment (including, but not limited to, a default judgment) of any
         such court in relation to this Agreement, to the maximum extent
         permitted by the law of

<PAGE>

         any jurisdiction, the laws of which might be claimed to be applicable
         regarding the effectiveness, enforcement or execution of such order or
         judgment.

AS WITNESS, the parties hereto have caused this Agreement to be signed on the
date first written above.

KONINKLIJKE PHILIPS ELECTRONICS                  METATEC INTERNATIONAL, INC.
N.V.

/s/ B. Mache                                       /s/ Gary W. Qualmann
-------------------------------                  -----------------------------
Name:  Bernd Mache                               Name:  Gary W. Qualmann

Title:  Chief Financial Officer                  Title: Chief Financial Officer
      -------------------------                        -----------------------
Date:   August 13, 2002                          Date:  August 9, 2002
     --------------------------                       ------------------------

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