Document:

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                                                                    EXHIBIT 10.8

                          JOINT DEVELOPMENT AGREEMENT

     This Joint Development Agreement (the "Agreement") is made and entered into
as of the 29th day of October, 1999 (the "Effective Date"), by and between IGS
Technologies, Inc., a corporation organized and existing under the laws of
California, with its principal place of business at 4001 Burton Drive, Santa
Clara, CA 95054 ("IGS"), and Coreum Technology, Inc., a corporation organized
and existing under the laws of California, with its principal place of business
at 4030, Moorpark Avenue, Suite #125, San Jose, CA 95117 ("Coreum").

Whereas, Coreum has developed and is developing certain MPEG-2 macrocell core
designs;

     Whereas, Coreum and iGST are willing to jointly customize and port such
designs as well as add new designs for integration into iGST's Integrated
Circuits and for usage by Coreum for its Macrocell product offering;

     Now, Therefore, the parties, intending to be legally bound, hereby agree as
follows:

1.   DEFINITIONS

     1.1  "Core" shall have the meaning set forth in the Statement of Work.

     1.2  "Database" means the technical specifications described in the
Statement of Work, Verilog models and the Documentation.

     1.3  "Deliverables" means the items to be developed and/or provided by
Coreum to iGST under this Agreement in accordance with the Statement of Work and
the Specifications.

     1.4  "Device" means the embodiment or incorporation of the Core in a
semiconductor device or other product.

     1.5  "Documentation" means user manuals, training materials, help text,
sample documents and graphics and other written or graphic materials provided to
iGST by Coreum that describe the operation of the Core.

     1.6  "Error" shall mean a material nonconformity of the Core with the
Specifications.

     1.7  "Improvements" means any improvements, discoveries, developments,
modifications or derivative works whether or not patentable.

     1.8  "Intellectual Property Rights" means all current and future trade
secrets, copyrights, patents and other patent rights, trademark rights, service
mark rights, mask work rights and any and all other intellectual property or
proprietary rights now known or hereafter recognized in any jurisdiction.

     1.9  "Specifications" means the functional specifications of the Core set
forth in Attachment 1 to the Statement of Work (see Exhibit A).

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     1.10 "Statement of Work" means the document specifying the development work
to be performed by Coreum under this Agreement and the iGST's responsibilities
for the development (see paragraph 2.3), NRE and Payment per Chip. A copy of the
Statement of Work is attached hereto as Exhibit A. The Statement of Work may be
amended by the parties from time to time upon the mutual agreement, in writing,
of both parties.

     1.11 "Schedule" means the schedule set forth in the Attachment 2 to the
Statement of Work (Exhibit A).

2.   Development, Delivery And Acceptance

     2.1  Project Managers. Each party shall appoint a project manager who will
coordinate and act as liaison with the other party with respect to each project
under the Statement of Work. The parties' respective project managers shall
participate in project review meetings as set forth in a Statement of Work or as
otherwise mutually agreed. Either party may change its project manager from time
to time upon written notice to the other party.

     2.2  Modifications to the Statement of Work. From time to time during the
development process, either party may propose changes to the Specifications to
improve or add functionality to the Core. If Coreum generates such proposal, the
proposal will include an estimate of the effect on price and timing of the
development effort. If iGST makes such proposal, Coreum will notify iGST of
technical feasibility of the proposed change and the estimated effect on price
and timing of Coreum's development effort. The parties will then discuss in good
faith whether to adopt such change. To be effective, any such modification to a
Statement of Work must be agreed upon in writing by the parties. Absent such
written agreement, the Specifications and Statement of Work in existence at the
time of the proposal will remain in effect.

     2.3  iGST's Responsibilities. For Coreum to be able to perform its
development tasks, iGST must provide the information and mutually agreed upon
assistance described in the applicable Statement of Work.

     2.4  Delivery. Coreum shall use diligent efforts to deliver to iGST each of
the Deliverables in accordance with the delivery schedule set forth in the
applicable Statement of Work. Upon completion of each Deliverable set forth in
the Statement of Work, Coreum shall deliver such Deliverable to iGST. Such
delivery shall be ex works Coreum's facilities.

     2.5  Acceptance.

               (a)  Within thirty (30) days, or such other period of time as may
be set forth in the Statement of Work for a particular Deliverable, after
receipt by iGST of a Deliverable from Coreum, (the "Acceptance Period"), iGST
shall review, test, and evaluate such Deliverable for conformity with the
Specifications and in accordance with the test procedures described in the
Statement of Work and provide Coreum either (i) a written acceptance of the
Deliverable or (ii) a written statement of rejection indicating the non-
conformities to the Specification requiring correction. A Deliverable will be
deemed accepted by iGST if Coreum does not receive either written acceptance or
written rejection regarding such deliverable within the Acceptance Period.

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               (b)  If any Deliverable is rejected as set forth above, Coreum
shall use diligent efforts to remedy all identified, reproducible and material
non-conformities to the Specifications in such Deliverable and shall promptly
return the reworked Deliverable to iGST for re-testing, review, and
reevaluation. If Coreum believes in good faith that such remediation will take
longer than thirty (30) days, Coreum shall so notify iGST. iGST shall then,
within the Acceptance Period of such redelivery, use reasonable efforts to again
provide Coreum with a written statement indicating any further material non-
conformities requiring correction.

               (c)  The foregoing procedure shall be repeated until (i) final
written acceptance of the Deliverable by iGST, or (ii) the parties mutually
agree in writing to terminate this Agreement; provided, however, should Coreum
fail to remedy all material non-conformities to Specifications in any
Deliverable after iGST has rejected such Deliverable three (3) times, iGST may,
as its sole remedy, terminate this Agreement in accordance with Section 10.2
hereof.

3.   Joint Development

     3.1  Terms of the Joint Development.

               (a)  Subject to the terms and conditions of this Agreement,
Coreum and iGST will jointly develop new designs as well as customize and port
Coreum's existing integration into iGST's Integrated Circuits and for usage by
Coreum for its Macrocell product offering.

               (b)  iGST is not in the business of licensing its core and does
not intent to offer the jointly develop core as a standard Macrocell. After the
completion of this development and final acceptance of the core as specified
under this Agreement, iGST might, from time to time, license the core developed
during that first year to specific OEM partners.

               (c) Neither iGST nor Coreum shall make the jointly developed core
available in the public domain.

     3.2  Trademarks. Nothing in this Agreement shall be deemed to give Coreum
or iGST any rights to use any of the other party's trademarks or trade names,
including without limitation the respective company names without specific,
prior written consent.

     3.3  Ownership. The Core will be developed as a Joint development and
ownership will be according to paragraph 3.4 except for Customer Specific, non-
standard circuitry or features ("custom circuitry") that iGST has been requested
to implement for a specific customer and identified in writing at the time of
the discussion of this custom circuitry with Coreum.

     3.4  Jointly Developed Applications. For any joint conception, invention
and development of technology, the parties agree that all Intellectual Property
Rights conceived, created, made, or first fixed in a tangible medium of
expression during the term of and in the course of performance of any applicable
Statement of Work, shall be as follows: (i) Coreum's Intellectual Property
Rights when algorithms are conceived, invented or created by Coreum personnel
not for the purpose of this Joint Development Agreement; (ii) iGST Intellectual
Property Rights when algorithms are conceived, invented or created by iGST
personnel not for the purpose of this Joint Development Agreement; and (iii)
owned jointly by the parties (if not an Improvement to the Core), without right
of accounting, when algorithms are conceived, invented

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or created jointly by iGST and Coreum personnel for the purpose of this Joint
Development Agreement ("Joint Intellectual Property"). Coreum and iGST agree
that throughout the term of this Agreement they shall cooperate reasonably and
in good faith to decide jointly the manner in which their respective interests
in Joint Intellectual Property shall be perfected and enforced. Specifically,
for Joint Intellectual Property, Coreum and iGST shall jointly decide: (i) the
subject matter for which patent applications and applications for copyright
registrations will be prepared; (ii) the resources to be utilized in the
preparation and prosecution of such applications; (iii) the parties' rights to
review and/or approve such applications and other papers prior to filling in, or
submission to, the United States Patent and Trademark Office and/or with the
Registrar of Copyrights; (iv) the allocation of expenses incurred in the
preparation, prosecution and maintenance of patent applications, patents, and
copyright registrations and the like; (v) matters regarding the enforcement,
through litigation, licensing or otherwise of the Joint Intellectual Property
against third parties; and (vi) the manner in which revenue resulting from
enforcement of Joint Intellectual Property will be shared between Coreum and
iGST. Should a party choose not to participate in securing or protecting an
element of Joint Intellectual Property, the other party may secure or protect
its claims to such Joint Intellectual Property and shall be entitled to reap the
benefit of its efforts without accounting to the other party, including without
limitation retaining the full amount of any settlement or damage award from a
third party. If one party declines to participate in securing or protecting an
element of Joint Intellectual Property, and the other party secures Patents or
Copyrights, the declining party will maintain ownership as specified in this
Agreement. Moreover, the Patents or Copyrights obtained during and for the
purpose of this Joint Development between Coreum and iGST under this Agreement
will not be enforceable to either Coreum or iGST for the jointly developed
Intellectual Property.

     3.5  Infringement by Third Parties. If either party learns of any possible
infringement or misappropriation of either Party's Intellectual Property Rights,
it shall immediately give notice thereof to the other party. iGST agrees to
cooperate with Coreum's reasonable efforts to seek legal remedies for such
infringements and misappropriations.

4.   Payments

     4.1  Fees. iGST shall pay to Coreum the fees set forth in the Statement of
Work, including without limitation non-recurring engineering fees, milestone
payments and payment-per-device set forth therein.

     4.2  Payment-per-Device ("PPD"). iGST shall, within thirty (30) days after
the end of each calendar quarter:

               (a)  Send to Coreum a report detailing the number of Devices sold
during the quarter to which the payment set forth in Section 4.1 above applies,
the rates at which the PPD were computed, the amount of PPD due, and all
additional details necessary to show how these amounts were determined. iGST
will provide Coreum with a written, quarterly report, whether or not any PPD is
due; and

               (b)  Pay to Coreum all PPD to which Coreum is entitled, as stated
in the attached Statement of Work.

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     4.3  Books and Records. iGST shall keep true and accurate records and books
of account containing all the data reasonably required for the full computation
and verification of royalty payments due under this Agreement for each quarter
of each of iGST's fiscal years. Such materials shall be retained for a period of
at least five (5) years following the end of the fiscal year to which they
relate. iGST's books of account shall be maintained in accordance with generally
accepted accounting principles consistently applied. iGST shall permit the
auditing and copying of such records and books of account by Coreum's
representatives. Fees and expenses incurred in connection with such inspections
(such as professional fees and expenses paid to accountants or other examiners
retained by Coreum and the cost of copying records and books of account) shall
be borne by Coreum, unless such inspection shall reveal that an error of ten per
cent (10%) or more in any payment was made during any given quarter, in which
case the fees and expenses incurred in connection with the inspection during
which such error was discovered shall be borne by iGST.

     4.4  Late Payment. Any payment not made when due shall bear interest at a
rate equal to one percent (1%) per month, on the unpaid amounts from time to
time outstanding from the date on which portions of such amounts became due and
owing until payment thereof in full.

     4.5  No Set-Off. No part of any amount payable to either party hereunder
may be reduced due to any counterclaim, set-off, adjustment or other right which
the other party may have against such party.

     4.6  Taxes. iGST will be responsible for the payment of all export, excise,
sales, use, property and other taxes based on the transactions under this
Agreement or the fees paid hereunder, including without limitation NRE fees and
PPD. If iGST is required to withhold any taxes from amounts paid to Coreum under
this Agreement, it shall pay Coreum an additional amount so that the amount
actually received net of taxes by Coreum is the amount that Coreum would have
received had there been no withholding tax.

     4.7  Currency. All payments hereunder shall be in United States Dollars. In
the event of transactions giving rise to an obligation to make a payment
hereunder with respect to which iGST receives payment in a currency other than
currency which is legal tender in the United States of America, all payments
required to be made by iGST under Section 4.1 hereof shall be converted, prior
to payment, into United States Dollars at the applicable rate of exchange
published in the Western United States edition of the Wall Street Journal on the
last day of the month in which such transaction occurred.

5.   Maintenance

     5.1  Error Correction. For a period of ninety (90) days following
acceptance of the Core, Coreum shall, at no additional charge to iGST, use
reasonable efforts to fix any and all Errors, and provide technical support
relating to the Core. In the event that part of the Coreum team has moved to
iGST, then this team should be available to Coreum to support the error
correction effort. Upon each successful fix or correction of Errors, Coreum
shall deliver to iGST the Database comprising such fix or correction.

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     5.2  Ongoing Support. Following expiration of the period set forth in
Section 5.1, iGST may elect to purchase additional support and maintenance
services from Coreum at Coreum's then-current hourly rate plus reasonable
expenses. Alternatively, iGST may purchase annual support and maintenance
services at Coreum's then-current annual rates, payable in advance in quarterly
installments. iGST may cancel such services upon receipt of Coreum's invoice for
any semiannual installment or at any time upon ninety (90) days prior notice to
Coreum, and receive a pro rata refund of any prepayments for the cancelled
period. Coreum's rates are subject to change at Coreum's sole discretion upon
thirty (30) days' advance notice for any period not then currently paid for by
iGST.

6.   Warranties

     6.1  Limited Performance Warranty. Coreum represents and warrants that the
Core will conform in all material respects to the Specifications for a period of
ninety (90) days after acceptance of the Core in the initial iGST target Device
and in accordance with Section 2.5 and the applicable Statement of Work. The
warranty set forth above shall not apply if (A) the Devices are used in any
direct or active operations of any equipment in any nuclear, aviation, mass
transit, or medical applications, or in any other inherently dangerous
applications, or (B) the Core is not used in accordance with the Documentation
or is otherwise misused. The limited warranty set forth above shall also not
apply to modifications or Improvements made by any party other than Coreum to
the Core nor shall it apply to the Device as a whole except to the extent solely
attributable to the Core.

     6.2  Remedies. iGST's sole and exclusive remedy and Coreum's sole and
exclusive obligation for a breach of the warranty set forth in Section 6.1 shall
be the Error correction provided in accordance with Section 5.

     6.3  Commercialization. Both Coreum and iGST shall use commercially
reasonable efforts to manufacture, market, sell and warranty the Devices
integrating the Jointly Developed Core.

     6.4  Warranty Exclusion. Except as provided in Section 6.1, Coreum makes no
warranty of any kind with regard to the Deliverables, the Core, the Database,
the Documentation, or any Coreum Intellectual Property Rights. COREUM EXPRESSLY
DISCLAIMS ANY AND ALL OTHER WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING
WITHOUT LIMITATION WARRANTIES OF TITLE, NONINFRINGEMENT, MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE, WHETHER ARISING IN LAW, CUSTOM, CONDUCT OR
OTHERWISE. No person is authorized to make any warranty or representation
concerning the performance of the Core. Both Coreum and iGST agree that they
will make no warranty, express or implied, on behalf of the other party.

     7.   Indemnification.

          7.1  Coreum Indemnity. Coreum agrees at its expense to defend any
action, claim, suit or proceeding (a "Claim") that the Core infringes any third
party's United States patent or copyright or misappropriates any third party's
trade secret, and will indemnify iGST from and

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against any costs, liabilities and damages finally awarded against iGST by a
court of competition jurisdiction in such Claim, including without limitation
reasonable attorneys' fees; provided that (i) iGST promptly notifies Coreum of
the existence of such Claim, (ii) iGST provides Coreum reasonable assistance
upon Coreum's request and at Coreum's reasonable expense, and (iii) iGST gives
Coreum the sole control of the defense and settlement of such Claim. If an
injunction is obtained against iGST for use of the Core, or if Coreum reasonably
believes that such injunction is likely, Coreum will, at its option and its
expense, either (i) procure for iGST the right to continue using such Core, (ii)
replace or modify Core or the infringing portions thereof so that they become
non-infringing, or (iii) refund PPD and fees paid therefor depreciated on a
straight-line basis over three (3) years and terminate this Agreement. Coreum
will have no liability or obligation to defend or indemnify for any Claim
arising from (i) the combination of Core with iGST or third party materials or
intellectual property, unless it is determined by a court of competent
jurisdiction that the Core is the sole infringing element of such claim; (ii)
the modification or translation of Core or any portion of the Core by a party
other then Coreum; (iii) any use by iGST of the Core after iGST becomes aware
that the Core may be infringing; or (iv) use of an outmoded or superceded
version of the Core after Coreum has made available a revised, non-infringing
version.

     7.2  iGST Indemnity. Except as specifically provided in Section 7.1, iGST
agrees to defend, indemnify and hold Coreum harmless from and against any and
all Claims, brought by a third party and from and against any and all
liabilities, losses, costs, including without limitation reasonable attorneys'
fees and other court expenses related thereto, arising by reason of iGST's
exercise of its rights under this Agreement, including without limitation any
Claims that (i) the Devices infringe any third party's Intellectual Property
Rights, or (ii) relate to product liability claims from use of the Devices;
provided that (i) Coreum promptly notifies iGST of the existence of such Claim;
(ii) Coreum provides iGST reasonable assistance in the defense of such Claim at
iGST's request and at iGST's reasonable expenses; and (iii) Coreum gives iGST
the sole control of the defense and settlement for such Claim, except that iGST
may not settle or compromise any Claim without Coreum's prior written consent
unless such settlement or compromise unconditionally releases Coreum. iGST will
have no liability for any Claim of indemnity under this Section 7.2 if it is
determined by a court of competent jurisdiction that the Core, and not the
combination of the Core with iGST or third party material, is the infringing
element of such Claim.

     7.3  The foregoing provisions of this Section 7 state the entire liability
and obligations of each party and the exclusive remedy of each party with
respect to any alleged Intellectual Property Rights infringement by the Core,
the Database, the Documentation and the Devices.

8.   Limitation Of Liability

OTHER THAN FOR BREACHES OF SECTIONS 3 AND SECTION 9, OR FOR ANY AMOUNTS PAYABLE
PURSUANT TO SECTION 7, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY
LOST PROFITS, OR FOR ANY INCIDENTAL, CONSEQUENTIAL, SPECIAL, PUNITIVE, OR
EXEMPLARY DAMAGES OF ANY KIND, INCLUDING WITHOUT LIMITATION ANY LOSS OF USE OR
OTHER ECONOMIC DAMAGE, INCLUDING INJURY TO PROPERTY, AS A RESULT OF BREACH OF
ANY WARRANTY OR OTHER TERM OF THIS AGREEMENT,

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REGARDLESS OF WHETHER THE OTHER PARTY WAS ADVISED, HAD OTHER REASON TO KNOW, OR
IN FACT KNEW OF, THE POSSIBILITY THEREOF. IN NO EVENT SHALL COREUM'S AGGREGATE
LIABILITY EXCEED THE AMOUNTS RECEIVED BY COREUM FROM CUSTOMER UNDER THIS
AGREEMENT DURING THE TWELVE (12) MONTHS PRECEDING THE DATE OF THE INITIAL EVENT
RESULTING IN SUCH CLAIMS. THE EXISTENCE OF MULTIPLE CLAIMS SHALL NOT ENLARGE THE
FOREGOING LIMIT. THE PARTIES ACKNOWLEDGE THAT THE FOREGOING LIMITATION OF
LIABILITY IS A FUNDAMENTAL BASIS OF THE BARGAIN BETWEEN THE PARTIES AND THAT IN
ITS ABSENCE THE ECONOMIC TERMS WOULD BE SUBSTANTIALLY DIFFERENT.

9.   Confidentiality

     9.1  Nondisclosure and Non-Use. All confidential or proprietary information
disclosed by one party to the other and marked as confidential or proprietary
("Confidential Information") shall be treated as confidential and not disclosed
or transferred by the recipient to third parties, other than the recipient's
agents and employees who need to know such information to serve the recipient
and who are obligated to treat such information as confidential. For purposes
hereof, confidential or proprietary information disclosed orally shall also be
considered Confidential Information hereunder if identified at the time of
disclosure as confidential and thereafter summarized and reduced to writing,
marked as confidential.

     9.2  Exclusions. Notwithstanding any other provision of this Agreement,
neither party shall be restricted from using information received from the other
party which: (a) is or becomes public knowledge through no wrongful act of the
recipient; (b) is rightfully obtained by the recipient from a third party
without similar restriction and without breach of any obligation owed to the
disclosing party; (c) is approved for release by written authorization of the
disclosing party.

     9.3  Enforcement. Each party shall exert its reasonable and diligent
efforts, including, but not limited to the execution of proprietary non-
disclosure agreements with employees, consultants, and other third parties, and
legal action, to enforce compliance with the provisions of this Section 9 by its
directors, officers, employees, and any third party to whom it provided access
to Confidential Information of the other party.

10.  Term And Termination

     10.1  Term. Unless terminated earlier under the terms of this Section,
this Agreement shall commence upon the Effective Date and shall continue for a
period of 7 years or until terminated as provided below (the "Term").

     10.2  Termination for Breach. If either party materially defaults in
the performance of its obligations hereunder, the defaulting party agrees to use
its commercially reasonable efforts to correct the default within sixty (60)
days after written notice of default from the non-defaulting party; provided,
however, that the Acceptance of the Core has been in accordance with paragraph
2.5; period for a failure to make a payment when due shall be thirty (30) days.
If any such default

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is not corrected within the applicable cure period, then the non-defaulting
party at its option may, in addition to any other remedies it may have,
terminate this Agreement immediately.

     10.3  Survival. Sections 1, 3, 4, 6.4, 7, 8, 9, 10 and 11 shall survive any
termination or expiration of this Agreement.

11.  General Provisions

     11.1  Assignment. Either party may assign this Agreement in connection with
a corporate reorganization, acquisition, merger, or sale of all or substantially
all of its assets. Subject to the foregoing, neither party may assign or
otherwise transfer this Agreement nor any rights or obligations under this
Agreement, in whole or in part, without the other party's prior written consent.
Any attempt by a party to effect such an assignment or transfer without the
other party 's written consent will be void.

     11.2  Independent Contractors. The parties hereto are independent
contractors. Nothing contained herein or done in pursuance of this Agreement
shall constitute either party the agent of the other party for any purpose or in
any sense whatsoever, or constitute the parties as partners or joint venturers.

     11.3  Amendment. No alteration, amendment, waiver, cancellation or any
other change in any term or condition of this Agreement shall be valid or
binding on either party unless mutually assented to in writing by both parties.

     11.4  No Waiver. No waiver of any term or condition of this Agreement,
whether by conduct or otherwise, in any one or more instances, shall be deemed
to be a further or continuing waiver of that term or condition or a waiver of
any other term or condition.

     11.5  Severability. If for any reason a court of competent jurisdiction
finds any provision of this Agreement, or portion thereof, to be unenforceable,
that provision of the Agreement will be enforced to the maximum extent
permissible so as to effect the intent of the parties, and the remainder of this
Agreement will continue in full force and effect. The parties agree to negotiate
in good faith an enforceable substitute provision for any unenforceable
provision that most nearly achieves the intent and economic effect of the
unenforceable provision.

     11.6  Headings. The section headings used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this
Agreement.

     11.7  Notices. The addresses of the parties for this Agreement are as
detailed below, or any other address as to which a party will notify the other
fifteen days in advance. All notices and other communications delivered in
person shall be deemed received upon delivery, sent by registered mail shall be
deemed to have been received as of ten business days after sending thereof, and
given by facsimile shall be deemed received twenty-four (24) hours after
transmission with confirmed answer-back.

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          If to Coreum:  Coreum, Inc.
                         4030, Moorpark Avenue, Suite #125,
                         San Jose, CA 95117
                         Fax:  408-
                         Attn:  Fuad Abunofal

          If to iGST:    iGS Technologies
                                4001, Burton Drive
                                Santa Clara, CA 95054
                                Fax: 408-982-8951
                                Attn: Jack Guedj

     11.8  Export Compliance; Government End Users. IGST and Coreum will not
export, directly or indirectly, the Devices, or any portion of the Devices, or
the Core in any form, to any country or foreign national for which United States
laws or regulations require an export license or other governmental approval,
without first obtaining such license or approval. Both Parties hereby agree to
indemnify and hold the other Party harmless from and against any losses,
damages, penalties or causes of action resulting from a violation of this
Section.

     11.9  Force Majeure. Except for the payment of monies due under this
Agreement, neither party shall be deemed to be in default under this Agreement
as long as its failure to perform any of its obligations hereunder is occasioned
solely by fire, labor disturbance, acts of civil or military authorities, acts
of God, or any similar cause beyond such party's reasonable control. Upon the
occurrence of an event of force majeure, the party claiming force majeure shall
immediately notify the other of the nature and expected duration of the event of
force majeure.

     11.10  Venue; Jurisdiction. Coreum and iGST each hereby irrevocably: (i)
agree that upon the request of either part, any suit, action or other legal
proceeding arising from or relating to this Agreement shall be brought in a
court of competent jurisdiction in San Jose, California, which court shall have
exclusive jurisdiction over any controversy arising from or related to this
Agreement; (ii) consents to the jurisdiction of such court in any such suit,
action or proceeding; and (iii) waives any objection it may have to the laying
of venue of any such suit, action or proceeding in such court and waives any
claim that any such suit, action or proceeding has been brought in an
inconvenient forum. Service of process in any suit, action or proceeding may be
made in any manner permitted by law.

     11.11  Governing Law. This agreement shall be governed by and interpreted
in accordance with the laws of California as between California residents,
without reference to its conflict of laws principles. The parties expressly
agree that the United Nations Convention on Contracts for the International Sale
of Goods is specifically excluded from application to this Agreement.

     11.12  Entire Agreement. This Agreement and the referenced Exhibits which
are incorporated herein by this reference, constitute the entire agreement
between the parties with respect to the subject matter hereof and supersede all
previous and contemporaneous agreements and understandings, whether oral or
written, between the parties hereto with respect to the subject matter hereof.

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     In Witness Whereof, the parties hereto have caused this JOINT DEVELOPMENT
AGREEMENT to be signed in duplicate by duly authorized officers or
representatives as of the date first above written.

iGST                                              Coreum, Inc.

By       /s/ Jack Guedj                               By     /s/ Fuad Abunofal

Name       Jack Guedj                                 Name     Fuad Abunofal

Title        President                                Title      President

             10/29/99                                            10/29/99

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                                   EXHIBIT A

                               Statement Of Work

1. Purpose: Joint Development of MPEG HDTV/SDTV video, AC-3/MPEG Audio Layer 1 &
   2, Transport, Memory Interface Core meeting iGST's requirements.
2. Coreum will provide Behavioral Model, Verilog source code, simulation
   environment and synthesis scripts.
3. Coreum will manage the development as a separate team which comprises of 2 to
   4 Coreum engineers plus 2 to 4 engineers loaned from iGST. The Coreum
   dedicated team for iGST will join iGST within 6 months of the start of the
   program. The development program will take place approximately on an equal
   basis at the Coreum and iGST facilities.
4. Development fees
 .  NRE: $*** at contract signing with payment upon receipt of invoice from
   Coreum.
 .  Payment to Coreum per iGST chip sold to its customers for the first 5,000,000
   units or the first 5 years after signing of the final agreement whichever
   comes first:
   - first 500,000 units: $*** per chip
   - 500,000 to 1,000,000 units: $*** per chip
   - 1,000,000 to 2,000,000 units: $*** per chip
   - 2,000,000 to 5,000,000 units: $*** per chip
 .  Coreum will receive a compensation of $15K/month/employee assigned to the
   iGST project for up to 4 employees for the period of 6 months estimated to
   complete the deliverables. An amount of $3K per month will be retained by
   iGST and paid upon working prototypes of the first chip embedding the
   technology defined in paragraph 2. Invoices for monthly payments will be sent
   by Coreum the 3rd week of the first month and then on a monthly basis. iGST
   will make the payment within 15 calendar days after receipt of the monthly
   invoice.
 .  The specifications and development schedule have been mutually agreed upon by
   both parties and integrated as an attachments to this exhibit A: Attachment 1
   for the specifications and Attachment 2 for the development schedule. If
   Coreum completes the development in less than 6 months, then iGST will grant
   20,000 shares to be assigned at Coreum's discretion. Unless of no fault from
   Coreum, if Coreum completes the development more than 6 months, then there
   will be a 10% penalty on the payment per chip paid to Coreum.
 .  If at least one of the Coreum employees join iGST and stay with iGST for a
   period of 1 year, Coreum will received an additional NRE of 100,000 shares of
   iGST at the price per share at the start of the program. If all the employees
   terminate their employment with iGST, without cause, before the one-year
   period, then no incentive will be paid. Finally, if at least one of the
   Coreum employees working on the program do not join iGST or join iGST but
   terminate his employment, without cause in less that 6 months, then there
   will be a 30% penalty on the payments per chip paid to Coreum.
6.   iGST will review additional services at a mutually acceptable rate that
     Coreum can provide such as total chip integration, 0.18um conversion,
     design methodology or other design consulting services.
7.   Both iGST and Coreum will co-own the design and code for the modules
     defined in paragraph 1 and developed by Coreum for iGST. It is understood
     that whatever Coreum develops independently and separately from the team
     that it assigns for iGST will be

*** CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.
                                       12
<PAGE>

     solely owned by Coreum. Similarly, whatever iGST develops independently
     will be solely owned by iGST.
8.   The employees to be transferred from iGST to Coreum will be identified at
     the beginning of the program and interviewed by iGST. In turn, Coreum will
     also interview the 2 to 4 iGST engineers working on the program.

                                       13
<PAGE>

                           ATTACHMENT 1 TO EXHIBIT A

                                 SPECIFICATIONS

                       MPEG-2 Video Decoder and Transport

                        MPEG and AC-3 Audio Decoder Core

1.  DESCRIPTION OF WORK

Coreum Technology, Inc. "Coreum" and IGS Technologies "IGS" will integrate
several of their own IP blocks in addition to some jointly developed IP blocks
to build a Chip set for the Set Top Box market. Coreum IP blocks include
(CRM_MVD, CRM_MCT, CRM_MAD and CRM_TSPF) with IGS Chip IGST6000. The new chip
including the CPU will be called CRM6000.

NOTE:

 .  ONLY CRM_MVD, CRM_MCT, CRM_MAD and CRM_TSPF were included in the original
   contract, the two new blocks mentioned in the following pages (CRM_VSF and
   CRM_ASE) were added to simplify the interface between the new chip and the
   existing IGST chip. They are not very complex but they add to the complexity
   of the design

 .  The CPU block will be physically residing on the CRM6000 but it is the
   responsibility of IGS. As of 10/10/99 the CPU was not defined. This implies
   that the bus connected to the CPU is not defined yet.

 .  In addition to the CRM_VSF and CRM_ASE, IGS is requesting that the CRM_MVD be
   able to run two streams of SD MPEG2, in order to be able to do that, it was
   agreed that the speed of CRM_MVD be almost doubled. The new speed target is
   set to 243MHz. Also the memory system CRM_MCT should be modified to support
   the increased bandwidth, a 64 bit wide bus will be needed, it is possble that
   the memory subsystem (external SDRAM) should run at 162NMz. The internal bus
   cBus should run at the speed of CRM_MVD.

 .  IGS requested that the three copies of CRM_TSPF be used to enable reception
   of three simultanous bit streams. Though only one of these transports can be
   sent to the 8-bit parallel port. IGS has added the DVD and NRSS standards to
   the PID filter and removed MULTI2. IGS will provide all the specification of
   these Standards to Coreum.

 .  For a low end application, IGS's requested that 16Bit memory interface be

                                       14
<PAGE>

   added, and that 2Mbyte configuration be supported.

 .  IGS requested that a second CCIR656 port be added. Both ports will be
   identical and will connect to IGS6000

                                       15
<PAGE>

2. Full Chip Block Diagram:

[graphic]

CRM_6000

 .  The cBus will be build as a high speed bus to allow future scalability

 .  Specification for the iBus will be given by IGS, the external CPU will
   connect to this bus and will run synchronously with iBus.

 .  CRM_MAD, is a SW that runs on the internal CPU

 .  The CPU type is not know yet. It will be licensed by IGS.

 .  The ASE (Audio Streaming Engine) is a new block that was requested by IGS
   after the LOI

 .  The VSF (Video Scaller Formater) is a new block that was requested by IGS
   after the LOI

                                       16
<PAGE>

2.1.  CRM_MVD: High Definition MPEGI/Mpeg2 Video decoder:

  CRM_MVD is a high definition MPEG1 and MPEG2 video decoder compliant with
MailProfile@MainLevel and Main Profile @ High Level Functionality specified by
ISO/IEC13818-1 and ISO/IEC 13818-2 standards. The CRM-MVD meets the constraints
of the ATSC/Grand Alliance specification regarding High Leve.

The CRM-MVD is a Picture decoder; it decodes all layers of an elementary MPEG
Video Bitstream up to the picture layer. The CRM-MVD off loads the on board
embedded CPU from all the decoding functions; the CPU is required only at the
Picture header setup. All modes of the MPEG video specifications are handled,
including concealment motion vectors.

CRM_MVD can process the following video compressed formats and resolutions:

     .  720 x 480 @ 30 HZ
     .  720 x 576 @ 25 HZ
     .  352 x 240 @ 30 HZ
     .  352 x 288 @ 25 HZ

The CRM-MVD read the decompressed MPEG video elementary stream from a buffer in
the SDRAM, decompresses it, decodes it and stores it back into a different
buffer in the SDRAM as a frame or as a field.

The SW controlling CRM_MVD will be able to perform the following functions:

  1. Frame-store modes: 2, 2.5, 3 or more frames to allow scaling.

  2. Low delay decoding: The SW driver controling specially this decoder will
     pause if the channel buffer is empty and resume decoding process when data
     arrives. The decoder will repeat a suitable, previously decoded frame when
     this happens.

  3. CRM_MVD detects error in the input Video stream (MPEG2 syntax or grammar
     rules violations) With the help of the Host CPU these errors can be
     concealed.

  4. Trick modes (freeze, slow motion, fast forward, and fast reverse.

  5. Concatenated sequences. This IP is able to decode and present correct
     pictures at the boundary of two sequences which may include the sequence
     layer changes, such as:

     .  coding standard changes between MPEG-I and MPEG-2.
     .  frame size changes
     .  aspect ratio changes
     .  frame rate changes
     .  bit rate changes up to 15 (20) M bits/sec.
     .  VBV buffer size changes
     .  constrained parameters flag changes
     .  quantiser matrics changes

                                       17
<PAGE>

     .  profile and level indications
     .  progressive sequence
     .  chroma_format
     .  low delay
     .  missing sequence end

  6. will be able to display the last picture in a sequence even though there is
     no further data arrive.

  7. still picture decoding

  8. software controlled parameters: freeze frame/field, skip frame, manual
     setting of pan/scan vectors.

  9. Subpicture support for DVD

                                       18
<PAGE>

2.2.  CRM_MAD: MPEG1/Mpeg2 and AC3 Audio decoder:

CRM_MAD is programmable MPEGl/MPEG2 Audio decoder as well as AC3 Audio decoder.
IT reads the decompressed MPEG video elementary stream from a buffer in the
SDRAM, decompresses it, decodes it and stores back into a different buffer in
the SDRAM as a frame or as a field.

The CRM_MAD has the following features:

     .  Decodes ISO/IEC 11172-3 MPEG- 1 Layer 1&2 stream

          .  Sampling rate: 48K HZ, 44.1K HZ, 32K HZ

          .  Conformance: highest level (16 bit)

     .  Decodes Dolby AC-3 audio streams according to ATSC A/52

          .  Sampling frequency: 48 K HZ, 44.1 K HZ, 32 K HZ

          .  Code modes: 1+1, 1/0, 2/0, 3/0, 2/1, 3/1, 2/2, 3/2

          .  Multi-channel down-mixing

          .  Conformance: Group A (20 bit)

     .  PCM modes for non-compressed audio data

          .  Sampling frequency: 48 K HZ, 44.1 K HZ, 32 K HZ

          .  1/0: 16-24 bit input PCM, 16-bit output PCM

          .  modes: PCM pass, mono, mono-L, mono-R

                                       19
<PAGE>

2.3.  CRM_MCT: ProgramMable sdram controller:

The CRM_MCT is programmable SDRAM controller optimized to work with Coreum
CRM_MVD decoder to fully utilize the memory bandwidth. The CRM_MCT will support
the following DMA channels:

     .    CRM_MVD

     .    CRM_MAD

     .    CPU Requests coming through the bridge

     .    CRM_TSPF

     .    8 bit Parallel port requests

The CRM_MCT will support 32 bit external SDRAM bus in the following
configurations:

     .    4MBytes organized as 2 SDRAM chips of 16Mbitxl6

     .    8MBytes organized as 4 SDRAM chips of 16Mbit x8 (This configuration is
          not recommended )

     .    8MBytes organized as 1 SDRAM chip of 64Mbit x32

For future expansion, CRM_MCT will support 64 bit external SDRAM bus in the
following configurations:

     .    8MBytes organized as 4 SDRAM chips of 16Mbit x16

     .    16Mbytes organized as 2 SDRAM chips of 64Mbit x32

The speed of the memory sub system will be the same as the CPU/CRM_MVD for the
32bit version and can be 2:1 or 3:2 for the 64bit version

                                       20
<PAGE>

2.4.  CPU: ON Board CPU:

The ON board CPU will be used to decode the Audio Stream, reading the compressed
Audio stream from the local memory, decompresses the data and stores the
decompressed Audio into the local memory. It will be used to perform portions of
the Transport stream decoding and demultiplexing.

The CPU will interface to the iBus and will use one of the DMA channels of the
CRM_MCT.

The CPU can be a slave for an external HOST will can access the CPU internal
registers and give it the proper addressing and memory spaces.

     2.4.1. Memory space allocation:

     The memory space supported in this system will be allocated in the
following way:

                                   [graphic]

The on board CPU can access all the shaded memory spaces.

                                       21
<PAGE>

2.5.  CRM_TSPF: Transport:

[graphic]

Features OF CRM_TSPF:

     .  input rate: sustained input rate 80 M bits/sec serial and 9 M bytes/sec
        parallel

     .  32 PIDs supported

     .  extensive and programmable hardware section filter ( DVB, DSS, DMC )

     .  video clock recovery logic

     .  standard input interface for FEC/Error correction

                                       22
<PAGE>

     .  error handling capability at the transport level

     .  conditional access interface support: internal DVB, NDS (News Data
        Service) and external conditional access interface (support transport
        level and PES level decryption as well as up to 12 pairs of 64 bit keys)

     .  high speed input/output 8 bit parallel interface to allow different
        source of bit stream, i.e through a 1394 port on IGST6000 chip, to be
        filtered through CRM_TSPF .

                                       23
<PAGE>

2.6.  CRM_ASE: Audio streaming engine:

     The CRM_ASE was not part of the original proposal, IGST asked to add this
block to simplify the interface and to create a more natural separation between
Coreum's responsibilities and IGS's.

     The CRM_ASE will take the decoded audio data, residing in the Vmem after
the CRM_MAD decompressed and decoded the data, will format it and serialized and
send it to an external DAC.

     This block will support sampling frequency of: 48 K HZ, 44.1 K HZ, 32 K HZ

     It will read a decoded audio stream (originated from either MPEG or AC3)
and convert it into SPDIF stream.

     Supports TSC/A52 Annex B., IEC 1967

                                       24
<PAGE>

2.7.  CRM_VSE: Video Streaming and Scaling Engine:

     The CRM_VSE was not part of the original proposal, IGST asked to add this
block to simplify the interface and to create a more natural separation between
Coreum's responsibilities and IGS's.

     The CRM_ASE will take the decoded Video data, residing in the Vmem after
the CRM-MVD decompressed and decoded the data, will scale it, format it and send
it encoded according to the CCIR656 standard. This data will be send directly to
a CCIR656 input port in iGST6000.

                                       25
<PAGE>

2.8.  CRM_BRIDGE: Internal Bus bridge:

The bridge connects the internal high speed bus iBus with an external system
bus. The internal bus will allow DMA bursts between the various processing units
and the Vmem.

The speed of cBus will be a multiple of the Video speed and will be set to
135MHz for this generation, the system bus can run a different speed than the
cBus.

                                       26
<PAGE>

3.0  General:

     All the IP will be designed to allow reusability, some features will be
implemented to allow future expansion. Coreum cores will have a have a test
shadow registers around them to ensure to simplify isolation of the core and
testability during the manufacturing process.

     All Coreum designs will be scanable and will have fault coverage higher
than 96%.

     All Coreum designs will be based on a library supplied by IGS (from UMC)

     All memories will be supplied by the IGS which will have all library views.

     NOTE: for the design to be able to reach 243MHz, a true 0.15 library will
need to be supplied to Coreum at the beginning of the work.

                                       27
<PAGE>

                           ATTACHMENT 2 TO EXHIBIT A

                              MILESTONES SCHEDULE

                       MPEG-2 Video Decoder and Transport

                        MPEG and AC-3 Audio Decoder Core

3.  Tentative Project Schedule
    This Schedule takes into account the design of the following IP blocks,
    CR_MVD, CRM_MCT, CRM_MAD and CRM_TSPF

<TABLE>
<CAPTION>

Phase                          DURATION                 SCHEDULE       Dates           NOTES
----------------------------------------------------------------------------------------------------------------
                                 (WW)                     (WW)
<S>                            <C>                      <C>            <C>             <C>
----------------------------------------------------------------------------------------------------------------
    0.0  Contract Signed           0          S             0          01-Nov-99         1
----------------------------------------------------------------------------------------------------------------
    0.5  Final Spec                4          P             4          29-Nov-99
----------------------------------------------------------------------------------------------------------------
    1.0  RTL Design. Rev 1.0       6          S             6          13-Dec-99
----------------------------------------------------------------------------------------------------------------
    1.5  Initial C Models          2          P             8          27-Dec-99         2
----------------------------------------------------------------------------------------------------------------
    2.0  RTL Design. Rev 2.0       6          S            12          24-Jan-00
----------------------------------------------------------------------------------------------------------------
    3.0  RTL Design. Rev 3.0       6          S            18          06-Mar-00         3
----------------------------------------------------------------------------------------------------------------
    4.0  RTL Design. Rev 4.0       6          S            24          17-Apr-00
----------------------------------------------------------------------------------------------------------------
    4.5  Sign Off                  4          P            28          15-May-00
----------------------------------------------------------------------------------------------------------------
    5.0  Final Design              4          S            28          15-May-00         4
----------------------------------------------------------------------------------------------------------------
    6.0  Post Silicon              4          S        28+FAB+4        24-Jul-00         5
----------------------------------------------------------------------------------------------------------------
</TABLE>

Definition of "successful completion of phases" (Acceptance Criteria)

Phase 0.0: (Contract Signed)
  - Contract reviewed and signed.

Phase 0.5: (Final Spec)
  - All Specification agreed on
  - All block owners identified and assigned
  - Standard Cell library vendor identified.
  - Memory Generation tools/methods identified.

Phase 1.0: (RTL 1.0)
  - MVD will runs 10 bit streams
  -
Phase 1.5: (Initial C Models)
  - CPU Architecture finalized, C models ready for other SW development

                                       28
<PAGE>

Phase 2.0: (RTL 2.0)
  -  MVD will runs 100 bit streams, TSPF demuxes DVB and NDS, MAD block decodes
     basic MPEG1/2 streams

                                       29
<PAGE>

Phase 3.0: (RTL 3.0)
  -  External decryp I/F tested, 8 bit Parallel port tested, all modes of TSPF
     tested
  -  Basic Audio streams tested  for al formats

Phase 4.0: (RTL 4.0)
  - All Audio bit streams tested (100 streams?)
  - All Video bit streams tested (100 streams?)
  - All Modes of TSPF tested
  - All memory configurations tested
  - Floor plan release for chip integration

Phase 4.5: (Sign Off)
-  Identify all sign off criteria to be applied on Phase 5.0
-
Phase 5.0: (Final Design)
  - Same as Phase 4.0 plus
  - Timing goals met
  - Fits the area
  - Meets DfT goals

Phase 6.0: (post Silicon)
  - Assumes FAB time is 6 weeks, 4 weeks of debug time is allocated

NOTES:

     1)  Design officially starts when every one assigned to the program is 100%
         on board. It is assumed that, at lease 3 engineers (Full Time) will be
         assigned from Coreum and three other engineers (Full Time) will be
         assigned from IGS to work on this program. The program will be Managed
         By a Coreum Manager.

     2)  Initial C models will be provided as early as possible to allow other
         SW development to start in parallel to the HW design

     3)  Physical design will start as early as possible. This will allow quick
         feedback to the logic design and will ensure a smooth Tapeout.

     4)  Final chip integration done at IGS site.

     5)  Silicon Debug will be done as IGS site. Engineers from both companies
         will collaborate to ensure a smooth and quick transfer to Production.

                                       30<PAGE>

                                                                   Exhibit 10.11

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

                     AUDIO TECHNOLOGY LICENSING AGREEMENT

     This Audio Technology Licensing Agreement (the "Agreement") is made this
26th day of June, 1997 (the Effective Date") between T-Square Design, Inc., a
California corporation with its principal place of business at 4633 Old
Ironsides Drive, Ste. 290, Santa Clara, California 95054 ("T-Square") and
InteGraphics Systems, Inc., a California Corporation with its principal place of
business at 4001 Burton Drive, Santa Clara, California 95054, ("IGS").  (As used
herein, "party" or Parties" will refer to T-Square Design, Inc., InteGraphics
Systems, or both, as the case may be.)

RECITALS

     T-Square Design, Inc. has developed and is developing certain proprietary
semiconductor technology and products, including but not limited to PC Audio
Technology.

     IGS has developed and is developing certain graphics controller-based
products and technology targeting the Multimedia Technology Industry which
includes the integration of Graphics and Audio products, (Audio/Graphics
Integrated Circuit), and is in the business of manufacturing Graphics/Multimedia
Products, and marketing, selling and supporting these Graphics/Multimedia
Products.

     Both Parties desire that IGS be licensed to develop, manufacture, market
and sell integrated circuit based Audio/Graphics Products which incorporate T-
Square Design, Inc.'s PC Audio Technology implemented in the Audio Engine,
Software Drivers, Source Code, and technical/marketing support described herein.

TERMS AND CONDITIONS

1.   Definitions:

     The following terms when used in this Agreement shall have the meanings
ascribed to them in Section 1;

1.1  "PC Audio Technology" shall mean:

     The Audio Engine hardware, software specifications, and marketing/technical
support as more completely described in Section 4, that enables the
incorporation of the Audio function on to the Graphics Controller Chip,
including but not limited to the items defined below in Sections 1.2, 1.3, 1.4,
1.5, and 1.6

     All information, inventions, ideas, concepts, discoveries, algorithms,
procedures, techniques, solutions, technology, technical documentation, designs
(including circuit designs), simulation and other models, materials and know-how
associated with the design, development, testing, construction, use and
distribution of such PC Audio Technology with IGS Graphics Controller Designs as
part of Integrated Audio/Graphics Controller Chips, whether developed by IGS or
T-Square Design.

1.2  "T-Square Design, Inc. PC Audio Product Specification" shall mean the
hardware and software product specifications developed by T-Square Design, Inc.
for the IGS Graphics/Audio Integrated Circuit.
<PAGE>

1.3  "Compatible" or "Compatibility" shall mean that T-Square's Audio Engine
     hardware and all necessary supporting Software is compatible with IGS's
     Graphic Controller Integrated Circuit such that the resulting
     Audio/Graphics Integrated Circuit can perform both graphics and audio
     functions at a PC Marketplace level of acceptability in a Windows 3.1 and
     Windows 95 environment.

1.4  "Intellectual Property Rights" of a Party means any and all rights of the
     Party in and to all patents, patent applications, copyrights, trademarks,
     trade secrets and know-how, mask work rights, industrial design and other
     proprietary rights of any kind, recognised in any country of the world,
     whether or not perfected, owned (or licensed by the Party with the right to
     grant sub-licenses of the scope granted herein) as of the Effective Date or
     hereafter acquired (whether by creation, transfer, license with right of
     sub-license or by any other means) during the term of this Agreement.

1.5  "Unit Shipments" shall mean the gross number of Integrated Circuits using
     the T-Square PC Audio Technology, shipped to customers of IGS, less any
     returned units for which a refund or credit is given.

1.6  Licensed ICs or Licensed Technology. shall mean any and all of the PC Audio
     Technology hardware and software licensed by T-Square to IGS under this
     Agreement.

2.   Grant of Rights

2.1  Marketing Rights:  IGS shall have non-exclusive marketing rights of the T-
     Square PC Audio Technology as integrated with graphics controllers.

2.2  Integration Rights: Subject to the terms and conditions of this Agreement,
     T-Square Design, Inc. hereby grants to IGS a non-exclusive license to use
     this licensed Audio Technology for products other than Graphics/Audio
     integration after March 31, 1998.

2.3  Manufacturing and Distribution Rights: Subject to the terms and conditions
     of this Agreement, T-Square Design, Inc. hereby grants to IGS a non-
     exclusive, world-wide, non-transferable, non-assignable, royalty-bearing
     license to make, have made, manufacture, reproduce, use, market, distribute
     and sell the PC Audio Technology, solely in connection with making, having
     made, manufacturing, reproducing, using, marketing, distributing and
     selling licensed ICs.

2.4  Sub-licensing Rights:  Neither IGS nor its customers can sub-licensing the
     licensed audio technology.

2.5  Use of Documentation: T-Square Design, Inc. grants to IGS a non-exclusive,
     world-wide, fully paid-up, non-transferable, non-assignable license under
     T-Square Design. Inc. Intellectual Property Rights to use, copy, modify and
     distribute information other than Confidential Information as defined in
     Section 8 of this Agreement for IGS's internal use and for creating and
     publishing technical documentation to assist IGS's customers to use the
     Audio/Graphics Chips. Notwithstanding anything in this Agreement to the
     contrary, IGS will not disclose T-Square's Confidential Information without
     the prior written consent of T-Square Design, Inc.

2.6  Limitations: No license or right is granted, by implication or otherwise,
     to IGS, under any patents, confidential information or other intellectual
     property rights now or hereafter owned or controlled by T-Square Design,
     Inc. except for licenses and rights expressly granted in this Agreement.

2.7  Notification On Licensing: T-Square shall notify IGS if T-Square license
     this PC Audio Technology for purposes of integrating PC Audio Technology
     with Graphics Integrated Circuit technology to any newly licensed IC
     company, designer, developer, manufacturer, or technology entity, prior to
     March 31, 1998.
<PAGE>

2.8  Licensing And Distribution: IGS shall have the right to distribute the
     object code of the software for T-Square's PC Audio Technology only with
     the licensed IC. IGS may sub-license the software source code to OEM
     customers of IGS for use with the licensed IC only.

3.   Obligations

3.1  IGS Support. Notwithstanding the obligations of T-Square to provide
     adequate engineering human resources for the delivery of the PC Audio
     Technology as contained herein, IGS will provide additional necessary human
     resources and all financial resources necessary to promote and support this
     licensed technology.

3.2  Engineering Support.  IGS will supply reasonable resources and support to
     adapt the audio engine hardware and software core from T-Square.

3.3  Other Support.  IGS will provide all necessary equipment for layout, tape
     out, revisions and debug of the sample silicon.

3.4  Modifications or Improvements. T-Square agrees that any modifications or
     improvements it makes or receives, limited to changes of the existing logic
     and circuit design that are offered to other PC Audio Technology licensees
     at no charge, including those made by other Graphics Controller companies
     but exclusive of any similarly granted licensee-specific layout
     optimizations, process migrations, or improvements in technology covered by
     other patents or patent applications, which are now or hereafter owned or
     controlled by T-Square but not as yet made to the IGS Graphics/Audio chip,
     shall be made immediately available to IGS at no additional charge if those
     improvements will, in T-Square's and IGS's judgement, place IGS's products
     in a non-competitive or non-compatibility position. Any modifications or
     improvements for which T-Square must pay a license fee or royalty, and T-
     Square acquires sub-license rights to, will be made available to IGS at a
     similar license fee and royalty schedule.

4.   PC Audio Technology Delivery and Support

4.1  Hardware.  T-Square will deliver to IGS a complete package of PC Audio
     Technology which shall include but is not limited to the following:

     (a)  Complete Verilog, RTL level and behaviour model of the Audio Engine
     (b)  Low level schematics and/or netlist of the Audio Engine
     (c)  Test vectors for verifying the audio engine prior to tape out (which
          will be used for IC mass production.
     (d)  Debug the sample silicon and solve any problem relative to
          functionality, compatibility and stability of the Audio Engine.
     (e)  Provide demo board schematics and debugging assistance

4.2  Software.  T-Square shall provide the following software deliverables as
     part of the PC Audio Technology:

     (a)  Source code of DOS, Windows 3.1 and Windows 95 drivers
     (b)  Source code of audio chip level diagnostics and board testing software
     (c)  Complete set of wave sample for General MIDI compatible synthesizer
     (d)  Source code for General MIDI interpreter for DOS games (VirtualGM)
     (e)  Source code of OPL3 to wavetable converter for DOS games (VirtualFM)

4.3  Marketing Support.  T-Square shall supply the following:

     (a)  Product training for the Audio Market
     (b)  Product specification and comparison for Audio segment
<PAGE>

     (c)  Hardware and software compatibility testing on audio feature
     (d)  Customer support in the form of joint visits to IGS's customers with
          IGS's Sales, Marketing, and Engineering personnel.

5.   Royalties and Other Payment Terms

The royalty license fee schedule as enumerated below shall pertain to all chips
sold by IGS which are a derivative of the PC Audio Technology with audio engine
hardware and/or software licensed from T-Square under this Agreement.

5.1  Royalty Payments. Royalties as specified under this Agreement, shall be
     payable to T Square by IGS within 30 (thirty) days of the close of each
     fiscal quarter for all licensed ICs incorporating the PC Audio Technology
     licensed under this Agreement at $*** per unit.

5.2  Non-Recurring Expanse.  A total of $*** design transfer fee will be paid by
     IGS to T-Square upon the date of execution of this Agreement.

5.3  Software Source Code Sub-Licensees Fee: Each sub-licensee must sign a
     software license agreement with T-Square and pay a one-time software source
     code license fee of $***. Software source code license fees shall be waived
     by T-Square or refunded to any IGS customer when said fee has been paid in
     advance whenever such customer has purchased in excess of 100,000 licensed
     ICs in any given fiscal quarter. IGS will treat T-Square's source code with
     the same care and protective measures as it would treat it's own source
     code.

5.4  Fair Market Price Consideration. In the event IGS sells chips using the
     licensed technology at a price substantially lower than the fair market
     price, or in such event that the fair market price should fall below the
     level of sufficient margin to the extent that royalty payments to T-Square
     by IGS would cause a loss to IGS, T-Square is not obligated but will
     consider waive the royalty payment requirement or issue a credit to IGS as
     is mutually agreed upon.

6.   Confidential Information:

6.1  Definition. T-Square and IGS acknowledge that, in the course of performing
     their respective obligation hereunder, each may obtain information relating
     to the other and the other's products that is of a confidential and
     proprietary nature to such other Party("Confidential Information"). Such
     Confidential Information includes without limitation the Graphics
     Controller Technology, PC Audio Technology, trade secrets, know-how
     formulas, composition of matter, inventions, techniques, process, programs,
     diagrams, schematics, technical information, customer and financial
     information, sales and marketing plans and the terms of this Agreement.

6.2  Obligation.  Each of T-Square and IGS agrees, for itself and its
     subcontractors that it will

     (a)  use the other Party's Confidential Information only in connection with
          fulfilling its obligations under this Agreement;
     (b)  hold the other Parties Confidential Information in strict confidence
          and exercise due care with respect to its handling and protection,
          consistent with its own policies concerning protection of its own
          Confidential Information of like importance;
     (c)  not disclose, divulge or publish the other Party's Confidential
          information except to such of its responsible employees and
          subcontractors who have a bona fide need to know to the extent
          necessary to fulfil such Party's obligations under this Agreement; and
     (d)  instruct all such employees not to disclose the other Party's
          Confidential Information to third parties, including consultants,
          without the prior written permission of the other party.

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

6.3  Exceptions The obligations set forth in Section 8.2 above will not apply to
     either Party's Confidential Information which

     (a)  is or becomes public knowledge without the fault or action of the
          other Party;
     (b)  received by the other Party from a third party, without restriction as
          to use or disclosure;
     (c)  the other Party can document was independently developed by it;
     (d)  is required to be disclosed pursuant to law provided the other Party
          uses reasonable efforts to give the Party owning the Confidential
          Information reasonable notice of such required disclosure; or
     (e)  is or becomes available to the other Party on an unrestricted basis
          from the Party owning the Confidential Information.

6.4  Employer Non-Disclosure Agreement

     IGS represents that to the best of its knowledge, at the Effective Date,
all IGS employees with access to all or part of the T-Square's confidential
document have executed written IGS employee non-disclosure agreements or are
otherwise under written obligation of non-disclosure which, inter alia, require
such employees to maintain the confidentiality of confidential Information of
third parties received by IGS.  IGS agrees that during the Term of this
Agreement, it shall use reasonable efforts to assure that all additional IGS
employees will execute IGS employee non-disclosure agreements prior to having
access to the T-Square PC Audio Technology.  Signed employee non-disclosure
agreements are to be retained by IGS for a period of no less than three (3)
years from the date of the employee's termination.

     T-Square represents that to the best of its knowledge, at the Effective
Date, all T-Square employees with access to the IGS Graphics Controller
Technology have executed written T-Square employee non-disclosure agreements or
are otherwise under written obligation of non-disclosure agreements which, inter
alia, require such employees to maintain the confidentiality of Confidential
Information of third parties received by T-Square Design, Inc.  T-Square Design,
Inc. agrees that during the Term if this Agreement, it shall use reasonable
efforts to assure that all additional T-Square employees will execute T-Square
employee non-disclosure agreements prior to having access to the IGS Graphics
Controller Technology.  Signed employee non-disclosure agreements are to be
retained by T-Square for a period of no less than three (3) years from the date
of the employee's termination.

7.   Intellectual Property Rights

7.1  PC Audio Technology. The PC Audio Technology and all Intellectual Property
     Rights therein will be the sole and exclusive property of T-Square, and IGS
     hereby transfers and assigns to T-Square all right, title and interest that
     IGS may have in the PC Audio Technology and all Intellectual Property
     Rights therein based on the T-Square Audio Technology. IGS will provide
     reasonable assistance and co-operation to T-Square to acquire, transfer,
     maintain, perfect and enforce the Intellectual Property Rights in the PC
     Audio Technology including but not limited to execution of such documents
     as may reasonable be requested by T-Square

7.2  Intellectual Property Indemnification. T-Square will apply its best effort
     to defend IGS against any claim that the PC Audio Technology and/or
     supporting software source code, object code, or drivers, as supplied by T-
     Square infringes or misappropriates the intellectual Property Rights of any
     third party.

8.   Term and Termination

8.1  Both Parties are binding by this agreement which can only be terminated by
     mutual agreeable terms in written signed by both Parties' officers.

8.2  Return of Confidential Information. Each Party shall return or destroy all
     copies of the Confidential Information of the other Party within thirty
     (30) days after the effective date of the termination. At the
<PAGE>

      request of either Party, an officer of the other Party will certify in
      writing that such other Party has complied with this obligation.

9.    Warranties and Liability

9.1   Limited Warranty. T-Square warrants to IGS that the PC Audio Technology,
      Software Source Code and Object Code will perform in all material respects
      in accordance with T-Square's specifications as contained herein. IGS's
      sole remedy is that T-Square will, at no extra charge, correct any defect
      discovered in the Audio/Graphics chip design so that it performs in
      accordance with such specification in all material respects. In case the
      Audio/Graphics chip does not meet its functional specification, T-Square
      will apply its best effort to correct any defect.

9.2   Liability. Neither Party is liable to the other party for any damage or
      loss cost by the usual risks, delays and malfunction of the licensed
      products.

10.   Miscellaneous

10.1  Governing Law. This Agreement shall be governed by and interpreted in
      accordance with the substantive laws of the State of California or the
      United States, as applicable. Except for claims regarding either Party's
      Intellectual Property Rights or Confidential Information, all claims will
      be resolved through mediation by a mutually acceptable mediator to be
      chosen by the parties within 30 days after written notice by one Party to
      the other demanding mediation. Neither Party may unreasonably withhold
      consent to the selection of a mediator, and the parties will share the
      costs of mediation equally. Claims regarding Intellectual Property Rights
      or Confidential information may be brought immediately in the state or
      federal courts having personal jurisdiction over the Party defending the
      claim. Each of the parties acknowledges that unauthorised disclosure or
      use of the other Party's Confidential Information or infringement or
      misappropriation of the other Party's Intellectual Property Rights could
      cause irreparable harm and significant injury that would be difficult to
      ascertain and may not be compensated by damages alone. Accordingly, the
      parties agree that, in addition to any and all legal remedies, claims
      regarding Intellectual Property Rights or Confidential Information may be
      remedied by appropriate equitable relief.

10.2  Assignment. IGS shall not assign this Agreement and all of it's rights
      pertaining thereto to other party without prior written approval from T-
      Square's officer.

10.3  Modification and Waiver. No modification to this Agreement, nor any waiver
      of any rights, will be effective unless assented to in writing by the
      Party to be charged, and the waiver of any breach or default shall not
      constitute a waiver of any other right hereunder or any subsequent breach
      or default.

10.4  Notices. Any required or permitted notices hereunder must be given in
      writing at the address of each Party set forth below, or to such other
      address as either Party may substitute by written notice to the other in
      the manner contemplated herein, by one of the following methods: hand
      delivery; registered, express, or nationally-recognised private express
      courier; or facsimile. Notices will be deemed given on the date when hand
      delivered or transmitted by facsimile, one (1) day after being sent by
      express mail or nationally recognised private express courier, and five
      (5) days after being sent by registered or certified mail.

If to T-Square:

Tony Chu, President & CTO
T-Square Design, Inc.
4633 Old Ironsides Dr. Ste 290 Santa Clara, CA 95054

If to IGS
<PAGE>

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

10.5   Force Majeure. Nether Party shall be responsible for delay or failure in
       performance caused by any government act, law, regulation, order or
       decree, by communication line or power failures beyond its control, or by
       fire, flood or other natural disasters or by other causes beyond its
       reasonable control, nor shall any such delay or failure be considered to
       be a breach of this agreement. In any such event, performance shall take
       place as soon thereafter as is reasonably feasible.

10.6   Attorney's Fees. In the event of any dispute resolution proceeding
       between the parties hereunder, the prevailing party shall be entitled to
       recover its costs and reasonable attorney's fees therein. A "prevailing
       party" shall mean a party who receives all or substantially all of the
       relief sought by such party.

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

10.8   Independent Contractors. In performing their respective duties under this
       Agreement, each of the parties will be operating as an independent
       contractor. Nothing contained herein will in any way constitute any
       association, partnership, or joint venture between the parties hereto, or
       be construed to evidence the intention of the parties to establish any
       such relationship.

10.9   Severability. In the event that it is determined by a court of competent
       jurisdiction that any provision of this Agreement is invalid, illegal, or
       otherwise unenforceable, such provision will be enforced as nearly as
       possible in accordance with the stated intention of the parties, while
       the remainder of this Agreement will remain in full force and effect and
       bind the parties according to its terms. To the extent any provision
       cannot be enforced in accordance with the stated intentions of the
       parties, such provision will be deemed not to be a part of this Agreement

10.10  Headings.  The heading of the Sections and subsections of this Agreement
       are for convenience only and will not be of any effect in construing the
       meanings of the Section and subsections.

10.11  Entire Agreement. This Agreement and the exhibits attached hereto
       constitute the entire and exclusive agreement between the parties hereto
       with respect to the subject matter hereof.

Attachment

T-Square Game-Audio Engine Data Sheet

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective
Date.

T-Square Design, Inc.                                 InteGraphics Systems, Inc.
By:                                                   By:

/s/ Tony Chu                                          /s/ Kenny Liu
Tony Chu, President & CTO                             Kenny Liu, President
7/30/1997
<PAGE>

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

CONFIDENTIAL INTERNAL USE ONLY                                       T/2/ DESIGN
--------------------------------------------------------------------------------

1  Introduction:

Features:

 .  AC97 v2.0 interface
 .  CODEC Variable Sample Rate support
 .  Up to 96 Hz Double Sample Rate support
 .  32-voice wavetable synthesis
 .  3D positioning sound acceleration
 .  Legacy Sound Blaster compatible
 .  Virtual FM(R) OPL3 emulation
 .  Virtual GM(R) MIDI interpretation
 .  MIDI MPU-401 interface
 .  Enhanced digital joystick interface
 .  I.S receiver & transmitter
 .  S/PDIF transmitter
 .  Sample Bank resides in Main Memory or Local Memory
 .  Interface with PCI BIU or other Host BIU

1.1  Overview:
Powered with T-Square Wavetable Synthesizer engine TS9708, Cyber5050 is a
versatile audio processor which can be integrated in costumed CE product and
also can be utilized on PC platform.

(C) 1998, 1999 T Square Design, Inc.  All rights reserved.

                            Revision 0.1  06/26/98

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