Xbox Publisher License Agreement - Microsoft Corp. and Bay Area Multimedia Inc.


                                               Consumer Group Contract No. 19355

                        (Confidential Portions Omitted)

                             MICROSOFT CORPORATION
                      XBOX(TM) PUBLISHER LICENSE AGREEMENT

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

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

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

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

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

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

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

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

     1.4  "Commercial Release" shall mean (a) with respect to Xbox, the first
distribution of an Xbox to the public for payment, and (b) with respect to a
Software Title, the earlier of the first distribution of the Software Title for
payment or distribution of Finished Product Units that are not designated as
beta or prerelease versions.

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

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

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

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

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

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

2.   DEVELOPMENT; DELIVERY; APPROVAL

     2.1  Software Title Development. Licensee's development activities with 
respect to each Software Title shall be in accordance with the development 
schedule set forth in the applicable Exhibit A-n. Furthermore, Licensee agrees 
to be bound by all provisions contained in the then-applicable version of the 
"Xbox Guide", the current version of which Microsoft or its affiliate will 
deliver to Licensee when it is completed, after the execution of this 
Agreement. Licensee understands and agrees that Microsoft may, in its 
discretion, supplement, revise and update the Xbox Guide from time to time and 
that upon Licensee's receipt of the applicable supplement, revision or updated 
version, Licensee automatically shall be bound by all provisions of the 
then-current Xbox Guide; Microsoft will specify in each such supplement, 
revision or updated version a reasonable effective date of each change if such 
change or revision is not required to be effective immediately. If Licensee 
proceeds with the development of a Software Title, Licensee shall deliver each 
milestone (as described in this Section 2.1) to Microsoft for approval in 
writing. All certification and playtesting (and applicable fees therefor, if 
any) will be in accordance with the then-applicable version of the Xbox Guide. 
If Microsoft does not approve Licensee's submission for a given milestone then 
Licensee shall either correct the problems that contributed to the lack of 
approval or, if Microsoft gives Licensee written notice to cease development, 
Licensee shall immediately cease all development activities for the applicable 
Software Title's subsequent milestones. Each successive milestone shall comply 
in all material respects with the characteristics of previously approved 
milestones. Each software milestone shall be delivered in compiled object code 
form.

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


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marketing commitment (if any); (iii) suitability to the target demographic; and 
(iv) overall fit with the Xbox certified software products portfolio.

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

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

          2.1.4  Final Release Version. Licensee shall deliver to Microsoft, 
Licensee's proposed final release version of the applicable Software Title that 
is complete and ready for manufacture and commercial distribution, with the 
final content rating certification, with identified program errors corrected, 
and with any and all changes previously requested by Microsoft implemented. 
However, nothing herein will be deemed to relieve Licensee of its obligation to 
correct program bugs and errors, whenever discovered (including without 
limitation after Commercial Release), and Licensee agrees to correct such bugs 
and errors as soon as possible after discovery (provided that, with respect to 
bugs or errors discovered after Commercial Release of the applicable Software 
Title, Licensee will use commercially reasonable efforts to correct the 
bug/error in all Finished Product Units manufactured after discovery). In 
addition, Licensee will comply with all certification procedures, guidelines 
and standards set forth in the then-applicable version of the Xbox Guide. 
Licensee shall not distribute the Software Title, nor manufacture any Finished 
Product Units intended for distribution, unless and until Microsoft shall have 
given its final certification and approval of the final release version of the 
Software Title, and Microsoft shall have provided the code for the final 
release version to the applicable Authorized Replicator(s).

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

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

     2.2  Content Rating. Licensee understands and agrees that, without 
limitation, Microsoft will not give final certification and approval of a 
Software Title unless and until Licensee shall have obtained, at Licensee's 
sole cost, a rating of no higher than "Mature (17+)" or its equivalent from the 
appropriate rating bodies for the applicable Territory (such as, ESRB, ELSPA, 
etc.) and/or any and all other independent content rating authority/authorities 
reasonably designated by Microsoft. Licensee shall make any changes to the 
Software Title required to obtain a rating of no higher than "Mature (17+)" (or 
its equivalent). In no


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event shall Licensee distribute any Software Title under an "Adults Only" or 
higher rating (or equivalent rating). Licensee shall include the applicable 
rating(s) prominently on Finished Product Units, in accordance with the 
applicable rating body guidelines.

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

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

     2.5 Changes of Requirements by Microsoft. Unless otherwise reasonably 
specified by Microsoft at the respective time: (a) after approval by Microsoft 
of the Beta Version of a Software Title, Licensee will not be obligated to 
comply, with respect to such Software Title only, with any subsequent changes 
made by Microsoft to the technical or content requirements for Software Titles 
generally in the Xbox Guide; and (b) subject to the immediately preceding 
clause (a), any changes made by Microsoft in Branding Specifications or other 
requirements after final certification of a Software Title by Microsoft will be 
effective as to such Software Title only on a "going forward" basis (i.e., only 
to such Art & Marketing Materials and/or Finished Product Units as are 
manufactured after Microsoft notifies Licensee of the change), unless (i) the 
change can be accommodated by Licensee with insignificant added expense, or 
(ii) Microsoft pays for Licensee's direct, out-of-pocket expenses necessarily 
incurred as a result of its retrospective compliance with the change.

3.   RIGHTS AND RESTRICTIONS

     3.1  Trademarks.


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

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

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



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

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

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

          3.1.6 Ownership. Licensee acknowledges Microsoft's ownership of all 
Licensed Trademarks, and all goodwill associated with the Licensed Trademarks. 
Use of the Licensed Trademarks shall inure solely to the benefit of Microsoft.

          3.1.7 No Bundling with Unapproved Peripherals, Products or Software. 
Licensee shall not market or distribute any Finished Product Unit bundled with 
a peripheral product software or other products, nor shall Licensee knowingly 
permit or assist any third party in such bundling, without Microsoft's prior 
written consent.

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

     3.3  No Electronic Transmission; No Online Activities. Licensee shall 
distribute the Software Title only as embodied in Finished Product Units; 
specifically, but without limitation, Licensee shall not distribute the 
Software Title by any means of electronic transmission without the prior 
written approval of Microsoft, which Microsoft may grant or withhold in its 
discretion. Furthermore, Licensee will not authorizer or permit any online 
activities involving the Software Title, including without limitation 
multiplayer, peer-to-peer and/or online play, without the prior written 
approval of Microsoft, which Microsoft may grant or withhold in its discretion.


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

     3.5  No Reproduction of Finished Product Units Except by Microsoft or 
Authorized Replicators. Licensee acknowledges that this Agreement does not 
grant Licensee the right to reproduce or otherwise manufacture Finished Product 
Units itself, or on its behalf, other than with Microsoft or an Authorized 
Replicator. Licensee must use Microsoft or an Authorized Replicator to produce 
Finished Product Units, pursuant to Section 4.

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

     3.7  Reservation of Rights. Microsoft reserves all rights not explicitly 
granted herein.

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

4.   MANUFACTURING

     4.1  Approved Replicators.  Licensee shall retain only an Authorized 
Replicator to manufacture all Finished Product Units.

     4.2  Terms of Use of Authorized Replicator. Licensee will notify Microsoft 
in writing of the identity of the applicable Authorized Replicator and unless 
Microsoft agrees otherwise, the Agreement for such manufacturing/replication 
services shall be as negotiated by Licensee and the applicable Authorized 
Replicator, subject to the following requirements:

          4.2.1  Microsoft, and not Licensee, will provide to the single
applicable Authorized Replicator the final release version of the Software Title
and all specifications required by Microsoft for the manufacture of the Finished
Product Units (including without limitation the Security Technology (as defined
in Section 4.4 below); Licensee will be responsible for preparing and delivering
to the Authorized Replicator all other items required for manufacturing Finished
Product Units; and Licensee agrees that all Finished Product Units must be
replicated in conformity with all of the quality standards and manufacturing
specifications, policies and procedures that Microsoft requires of its
Authorized Replicators, and that all so-called "adders" must be approved by
Microsoft prior to packaging (in accoreway 
System.

8.   CONFIDENTIAL INFORMATION

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

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

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


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

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

     8.5  Agreement Confidentiality. LICENSEE agrees that the terms, conditions 
and contents of this Agreement shall be treated as Confidential Information. 
Any public announcement or press release regarding this Agreement or the 
release dates for Games developed by LICENSEE under this Agreement shall be 
subject to NOA's prior written approval. The parties may disclose this 
Agreement (a) to accountants, banks, financing sources, lawyers, parent 
companies and related parties under substantially equivalent confidentiality 
obligations, (b) in connection with any formal legal proceeding for the 
enforcement of this Agreement, (c) as required by the regulations of the 
Securities and Exchange Commission ("SEC"), provided that all Confidential 
Information regarding NOA shall be redacted from such disclosures to the 
maximum extent allowed by the SEC, and (d) in response to lawful process, 
subject to a written protective order approved in advance by  Software Titles contact 
information (including without limitation Licensee's street address and 
telephone number, and the applicable individual/group responsible for customer 
support). Such end user support will be consistent with the then-applicable 
console game industry standards. Licensee acknowledges and agrees that 
Microsoft will have no support responsibilities whatsoever to end users of the 
Software Title or with Respect to Finished Product Units.

     5.2  Art & Marketing Materials.  In accordance with Section 2.1.6 above, 
Licensee shall submit all Art & Marketing Materials to Microsoft, and Licensee 
shall not distribute such Art & Marketing Materials unless and until Microsoft 
has approved them in writing. Prior to publication of any Art & Marketing 
Materials, Licensee agrees to incorporate all changes relating to use of the 
Licensed Trademarks that Microsoft may request, and will use its commercially 
reasonable efforts to incorporate other changes reasonably suggested by 
Microsoft (provided, however, that Licensee shall at all times comply with the 
requirements set forth in the Branding Specifications and/or the Xbox Guide).

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

     5.4  Recall.  Notwithstanding anything to the contrary contained in this 
Agreement (including without limitation Section 2.1.4), in the event of a 
material defect in a Software Title and/or any Finished Product Units, which 
defect in the reasonable judgement of Microsoft would significantly impair the 
ability of an end user to play such Software Title or Finished Product Unit, 
Microsoft may require Licensee to recall Finished Product Units and undertake 
prompt repair or replacement of such Software Title and/or Finished Product 
Units. Microsoft shall also entertain in good faith any proposals by Licensee of
additional or alternative remedial measures to effectively address such 
situation.

     5.5  Software Title License.  Subject to third party rights of which 
Licensee shall have informed Microsoft in writing at the time of delivery of 
the feature-complete version of the applicable Software Title, Licensee hereby 
grants to Microsoft a fully-paid, royalty-free, non-exclusive license (i) to 
publicly perform the Software Titles at conventions, events, trade shows, press 
briefings, and the like; and (ii) to use the title of the Software Title, and 
screen shots from the Software Title, in advertising and promotional material 
relating to Xbox and related Microsoft products and services, as Microsoft may 
reasonably deem appropriate.

6.   PAYMENTS

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

FINISHED PRODUCT UNITS MANUFACTURED ROYALTY PER APPLICABLE FINISHED PRODUCT UNIT ----------------------------------- -------------------------------------------- US DOLLARS ---------- YEN --- EUROS ----- Units [*] [*] [*] [*]
8 * Confidential Portions Omitted and Filed Separately with the Commission. 9 Consumer Group Contract No. 19355
FINISHED PRODUCT UNITS MANUFACTURED ROYALTY PER APPLICABLE FINISHED PRODUCT UNIT ----------------------------------- -------------------------------------------- US DOLLARS ---------- YEN --- EUROS ----- Units [*] [*] [*] [*] Units [*] [*] [*] [*] Units [*] [*] [*] [*]
Notwithstanding the foregoing, no royalties will be payable hereunder with respect to any Demo Finished Product Units. For the purposes hereof, a "Demo Finished Product Unit" will mean a Finished Product Unit that (i) contains only a small portion of the applicable Software Title, (ii) is provided to end users only to advertise or promote the applicable Software Title (although it may include demonstration versions of other games for Xbox published by Licensee), (iii) is manufactured in a number of units that has been approved in advance by Microsoft, which approval Microsoft agrees not to unreasonably withhold, and (iv) is distributed free or with a suggested retail price of not more than US$[*]. 6.2 Royalty Payments. Licensee shall have the option of paying the above royalties in US Dollars, Japanese Yen or Euros, according to the terms of this Section. By designating the appropriate box below, Licensee may choose to pay royalties on either a "Worldwide" or "Regional" basis. Such designation shall be binding throughout the term of this Agreement for all of Licensee's Software Titles. If Licensee elects to pay on a Worldwide basis, it shall pay royalties in US Dollars regardless of where the Finished Product Units are distributed or manufactured. If Licensee elects to pay on a Regional basis, it shall pay royalties in US Dollars, Japanese Yen or Euros in accordance with the table set forth in Section 6.1 but subject to the rest of this Section 6.2: (i) If the Authorized Replicator manufacturing the Finished Product Units is located in Japan, Singapore, Malaysia or Taiwan, Licensee shall pay its royalty denominated in Japanese Yen for such Finished Product Units. (ii) If the Authorized Replicator manufacturing the Finished Product Units is located in a member country of the European Union, Licensee shall pay its royalty denominated in Euros for such Finished Product Units. (iii) If the Authorized Replicator manufacturing the Finished Product Units is located in any other country or region of the world, Licensee shall pay its royalty denominated in US Dollars for such Finished Product Units. Notwithstanding the foregoing, in the event the conversion ratio for either Yen or Euros to Dollars, as described in the US edition of the Wall Street Journal, falls outside the foreign exchange trading range as set forth in the chart below, for a period of time greater than 30 consecutive days, Microsoft may then readjust the royalty amounts set forth in Section 6.1 for that currency. Such readjustments shall be made in Microsoft's good faith discretion according to its normal practices. 9 * Confidential Portions Omitted and Filed Separately with the Commission. 10 Consumer Group Contract No. 19355
YEN/EURO TO US DOLLAR TRADING RANGE MINIMUM MAXIMUM ------- ------- Yen [*] [*] Euros [*] [*]
[ ] Worldwide (initials) ----------- [X] Regional [INITIALED] (initials) ----------- 6.3 Payment Process. After its receipt from the applicable Authorized Replicator(s) of each monthly statement of Finished Product Units manufactured, Microsoft will invoice Licensee for the amount owed to Microsoft pursuant to Section 6.1 above based upon the applicable statement. Licensee shall pay to Microsoft the full amount invoiced within thirty (30) calendar days after the date of the respective invoice. Payment will be made by wire transfer, in immediately available funds, to an account, and in accordance with a reasonable procedure, to be specified in writing by Microsoft. 6.4 Audit. Licensee shall keep all usual and proper records related to its performance (and any subcontractor's performance) under this Agreement, including support for any cost borne by or income due to Microsoft, for a minimum period of three (3) years from the date they are created. Such records, books of account, and entries shall be kept in accordance with generally accepted accounting principles. Microsoft reserves the right, upon twenty-four (24) hours' notice, to audit Licensee's records and consult with Licensee's accountants for the purpose of verifying Licensee's compliance with the terms of this Agreement and for a period of two (2) years thereafter. Any such audit shall be made by Microsoft's internal audit team or any Microsoft designee, and shall be conducted during regular business hours at the Licensee's (or any applicable subcontractor's) offices. Any such audit shall be paid for by Microsoft unless material discrepancies are disclosed. "Material" shall mean [*] of the royalties due to Microsoft within the audit period. If material discrepancies are disclosed, Licensee agrees to pay Microsoft for the costs associated with the audit, as well as reimburse Microsoft for all over-charged amounts, plus interest at a rate of 12% per annum. 6.5 Taxes. 6.5.1 The royalties to be paid by Licensee to Microsoft herein do not include any foreign, U.S. federal, state, local, municipal or other governmental taxes, customs and other duties, levies, fees, excises or tariffs, arising as a result of or in connection with the transactions contemplated under this Agreement including, without limitation, any state or local sales or use taxes or consumption tax or any value added tax or business transfer tax now or hereafter imposed on the provision of goods and services to Licensee by Microsoft under this Agreement, regardless of whether the same are separately stated by Microsoft (all such taxes and other charges being referred to herein as "Taxes"). All Taxes (and any penalties, interest, or other additions to any Taxes), with the exception of taxes imposed on Microsoft's net income or with respect to Microsoft's property ownership, shall be the financial responsibility of Licensee. Licensee agrees to indemnify, defend and hold Microsoft harmless from any such Taxes or claims, causes of action, costs (including without limitation, reasonable attorneys' fees) and any other liabilities of any nature whatsoever related to such Taxes. 6.5.2 Licensee will pay all applicable value added, sales and use taxes and other taxes levied on it by a duly constituted and authorized taxing authority on the XDKs or any transaction related thereto in each country in which the services and/or property are being provided or in which the transactions contemplated hereunder are otherwise subject to tax, regardless of the method of delivery. Any taxes that are owed by Licensee, (i) as a result of entering into this Agreement and the payment of the fees hereunder, (ii) are required or permitted to be collected from Licensee by Microsoft under applicable law, and (iii) are based upon the amounts payable under this Agreement (such taxes described in (i), (ii), and (iii) above the "Collected Taxes"), shall be remitted by Licensee to Microsoft, whereupon, upon request, Microsoft shall 10 * Confidential Portions Omitted and Filed Separately with the Commission. 11 Consumer Group Contract No. 19355 provide to Licensee tax receipts or other evidence indicating that such Collected Taxes have been collected by Microsoft and remitted to the appropriate taxing authority. Licensee may provide to Microsoft an exemption certificate acceptable to Microsoft and to the relevant taxing authority (including without limitation a resale certificate) in which case, after the date upon which such certificate is received in proper form, Microsoft shall not collect the taxes covered by such certificate. 6.5.3 If, after a determination by foreign tax authorities, any taxes are required to be withheld, on payments made by Licensee to Microsoft, Licensee may deduct such taxes from the amount owed Microsoft and pay them to the appropriate taxing authority; provided however, that Licensee shall promptly secure and deliver to Microsoft an official receipt for any such taxes withheld or other documents necessary to enable Microsoft to claim a U.S. Foreign Tax Credit. Licensee will make certain that any taxes withheld are minimized to the extent possible under applicable law. 6.5.4 This tax Section 6.5 shall govern the treatment of all taxes arising as a result of or in connection with this Agreement notwithstanding any other section of this Agreement. 7. NON-DISCLOSURE; ANNOUNCEMENTS 7.1 Non-Disclosure Agreement. The information, materials and software exchanged by the parties hereunder or under an XDK License, including the terms and conditions hereof and of the XDK License, shall be subject to the Non-Disclosure Agreement between the parties attached hereto and incorporated herein by reference as Exhibit D. 7.2 Public Announcements. The parties contemplate that they will coordinate the issuance of initial press releases, or a joint press release, announcing the relationship established by the execution of this Agreement. However, neither party shall issue any such press release or make any such public announcement(s) without the express prior consent of the other party, which consent will not be unreasonably withheld or delayed. Furthermore, the parties agree to use their commercially reasonable efforts to coordinate in the same manner any subsequent press releases and public announcements relating to their relationship hereunder prior to the issuance of the same. Nothing contained in this Section 7.2 will relieve Licensee of any other obligations it may have under this Agreement, including without limitation its obligations to seek and obtain Microsoft approval of Art & Marketing Materials. 7.3 Required Public Filings. Notwithstanding Sections 7.1 and 7.2, the parties acknowledge that this Agreement, or portions thereof, may be required under applicable law to be disclosed, as part of or an exhibit to a party's required public disclosure documents. If either party is advised by its legal counsel that such disclosure is required, it will notify the other in writing and the parties will jointly seek confidential treatment of this Agreement to the maximum extent reasonably possible, in documents approved by both parties and filed with the applicable governmental or regulatory authorities, and/or Microsoft will prepare a redacted version of this Agreement for filing. 8. TERM AND TERMINATION 8.1 Term. The term of this Agreement shall commence on the Effective Date and unless terminated earlier as provided herein, shall continue until three (3) years after Commercial Release of Xbox. 8.2 Termination for Breach. In the event either party shall materially fail to perform or comply with this Agreement or any provision thereof, and fail to remedy the default within fifteen (15) days after the receipt of notice to that effect, then the other party shall have the right, at its sole option and upon written notice to the defaulting party, to terminate this Agreement upon written notice. Any notice of default hereunder shall be prominently labeled "NOTICE OF DEFAULT"; provided, however, that if the default is of Section 3 or 7.1 above, or an XDK License, then the non-defaulting party may terminate this Agreement immediately upon written notice, without being obligated to provide a fifteen-day cure period. The rights and remedies provided in this Section shall not be exclusive and are in addition to any other rights and remedies provided by law or this Agreement. If the uncured default is related to a particular 11 12 Consumer Group Contract No. 19355 Software Title, then the party not in default will have the right, in its discretion, to terminate this Agreement in its entirety or with respect to the applicable Software Title. 8.3 Termination for Creative Reasons. In the event that Microsoft determines, at any time prior to the Commercial Release of a Software Title, that such Software Title does not comply with the requirements set forth in the Xbox Guide, and Licensee fails to remedy the noncompliance within fifteen (15) days after the receipt of notice to that effect, then Microsoft will have the right to terminate this Agreement, without cost or penalty, upon written notice to Licensee solely with respect to such Software Title, in Microsoft's sole discretion and notwithstanding any prior approvals given by Microsoft pursuant to Section 2 above. 8.4 Effect of Termination; Sell-off Rights. Upon termination or expiration of this Agreement, Licensee shall have no further right to exercise the rights licensed hereunder or otherwise acquired in relation to this Agreement and shall promptly return any and all copies of the Licensed Trademarks. Licensee shall have a period of six (6) months following expiration of this Agreement, or termination for a reason other than Licensee's breach, to sell-off its inventory of Finished Product Units existing as of the date of termination or expiration, after which sell-off period Licensee immediately shall destroy all Finished Product Units then in its possession or under its control. All of Licensee's obligations under this Agreement shall continue to apply during such six-month sell-off period. If this Agreement is terminated due to Licensee's breach, Licensee shall immediately destroy all Finished Product Units not yet distributed to Licensee's distributors, dealers and/or end users. If requested by Microsoft in writing, Licensee will deliver to Microsoft the written certification by an officer of Licensee confirming the destruction of Finished Product Units required hereunder. 8.5 Survival. The following provisions shall survive termination of this Agreement: 1, 3.6, 5.1, 5.3, 5.4, 6, 7, 8.4, 8.5, 9, 10, 11 and 12. 9. WARRANTIES 9.1 Licensee. Licensee warrants and represents that: 9.1.1 It has the full power to enter into this Agreement; 9.1.2 It has not previously and will not grant any rights to any third party that are inconsistent with the rights granted to Microsoft herein; and 9.1.3 The Software Title, Finished Product Units, Art & Marketing Materials (excluding those portions that consist of the Licensed Material, Licensed Trademarks, and redistributable components of the so-called "XDK" in the form as delivered to Licensee by Microsoft pursuant to an XDK License) do not and will not infringe upon or misappropriate any third party trade secrets, copyrights, trademarks, patents, publicity, privacy or other proprietary rights. 9.2 Microsoft. Microsoft warrants and represents that: 9.2.1 It has the full power to enter into this Agreement; and 9.2.2 It has not previously and will not grant any rights to any third party that are inconsistent with the rights granted to Licensee herein. 9.3 DISCLAIMER. EXCEPT AS EXPRESSLY STATED IN THIS SECTION 9, MICROSOFT PROVIDES ALL MATERIALS (INCLUDING WITHOUT LIMITATION THE SECURITY TECHNOLOGY) AND SERVICES HEREUNDER ON AN "AS IS" BASIS, AND MICROSOFT DISCLAIMS ALL OTHER WARRANTIES UNDER THE APPLICABLE LAWS OF ANY COUNTRY, EXPRESS OR IMPLIED, REGARDING THE MATERIALS AND SERVICES IT PROVIDES HEREUNDER, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, 12 13 Consumer Group Contract No. 19355 FITNESS FOR A PARTICULAR PURPOSE, OR WARRANTY OF FREEDOM FROM COMPUTER VIRUSES. WITHOUT LIMITATION, MICROSOFT PROVIDES NO WARRANTY OF NON-INFRINGEMENT. 9.4 LIMITATION OF LIABILITY. THE MAXIMUM LIABILITY OF MICROSOFT TO LICENSEE OR ANY THIRD PARTY ARISING OUT OF THIS AGREEMENT SHALL BE THE TOTAL AMOUNTS RECEIVED BY MICROSOFT HEREUNDER. FURTHERMORE, UNDER NO CIRCUMSTANCES SHALL MICROSOFT BE LIABLE TO LICENSEE FOR ANY DAMAGES WHATSOEVER WITH RESPECT TO ANY CLAIMS RELATING TO THE SECURITY TECHNOLOGY AND/OR ITS AFFECT ON ANY SOFTWARE TITLE. 10. INDEMNITY 10.1 Indemnification. A claim for which indemnity may be sought hereunder shall be referred to as a "Claim." 10.1.1 Mutual Indemnification. Each party hereby agrees to indemnify, defend and hold the other party harmless from any and all claims, demands, costs, liabilities, losses, expenses and damages (including reasonable attorneys' fees, costs, and expert witnesses' fees) arising out of or in connection with any claim that, taking the claimant's allegations to be true, would result in a breach by the indemnifying party of any of its warranties and covenants set forth in Section 9. 10.1.2 Additional Licensee Indemnification Obligation. Licensee further agrees to indemnify, defend and hold Microsoft harmless from any and all claims, demands, costs, liabilities, losses, expenses and damages (including reasonable attorneys' fees, costs, and expert witnesses' fees) arising out of or in connection with any claim regarding any Software Title or Finished Product Unit, including without limitation any claim relating to quality, performance, safety or conformance with the Certification Requirements, or arising out of Licensee's use of the Licensed Trademarks in breach of this Agreement. 10.2 Notice and Assistance. The indemnified party shall: (i) provide the indemnifying party reasonably prompt notice in writing of any Claim and permit the indemnifying party to answer and defend such Claim through counsel chosen and paid by the indemnifying party; and (ii) provide information, assistance and authority to help the indemnifying party defend such Claim. The indemnified party may participate in the defense of any Claim at its own expense. The indemnifying party will not be responsible for any settlement made by the indemnified party without the indemnifying party's written permission, which will not be unreasonably withheld or delayed. In the event the indemnifying party and the indemnified party agree to settle a Claim, the indemnified party agrees not to publicize the settlement without first obtaining the indemnifying party's written permission. 10.3 Insurance. Prior to distribution of any Software Title, Licensee at its sole cost and expense shall have endorsed Microsoft as an additional insured on Licensee's media perils errors and omissions liability policy for claims arising in connection with production, development and distribution of each Software title in an amount no less than $5,000,000 on a per occurrence or per incident basis. Coverage provided to Microsoft under the policy shall be primary to and not contributory with any insurance maintained by Microsoft. Upon request, Licensee agrees to furnish copies of the additional insured endorsement and/or a certificate of insurance evidencing compliance with this requirement. 13 14 Consumer Group Contract No. 19355 11. PROTECTION OF PROPRIETARY RIGHTS 11.1 Microsoft Intellectual Property. In the event Licensee learns of any infringement or imitation of the Licensed Trademarks, the Software Title or the Finished Product Units, or the proprietary rights in or related to any of them, it will promptly notify Microsoft thereof. Microsoft may take such action as it deems advisable for the protection of its rights in and to such proprietary rights, and Licensee shall, if requested by Microsoft, cooperate in all reasonable respects therein at Microsoft's expense. In no event, however, shall Microsoft be required to take any action if it deems it inadvisable to do so. Microsoft will have the right to retain all proceeds it may derive from any recovery in connection with such actions. 11.2 Licensee Intellectual Property. Licensee, without the express written permission of Microsoft, may bring any action or proceeding relating to this infringement or potential infringement, to the extent such infringement involves any proprietary rights of Licensee (provided that Licensee will not have the right to bring any such action or proceeding involving Microsoft's intellectual property). Licensee shall make reasonable efforts to inform Microsoft regarding such actions in a timely manner. Licensee will have the right to retain all proceeds it may derive from any recovery in connection with such actions. Licensee agrees to use all commercially reasonable efforts to protect and enforce its proprietary rights in the Software Title. 11.3 Joint Actions. Licensee and Microsoft may agree to jointly pursue cases of infringement involving the Software Titles (since such products will contain intellectual property owned by each of them). Unless the parties otherwise agree, or unless the recovery is expressly allocated between them by the court (in which case the terms of Sections 11.1 and 11.2 will apply), in the event Licensee and Microsoft jointly prosecute an infringement lawsuit under this provision, any recovery shall be used first to reimburse Licensee and Microsoft for their respective reasonable attorneys' fees and expenses, pro rata, and then to reimburse Licensee and Microsoft pro rata for the respective damages incurred by each party as a result of the infringement. If the parties can not agree in good faith within a reasonable period of time on the proper parties' respective damages and the proper allocation of proceeds therefor, then any remaining recovery shall also be given to Licensee and Microsoft pro rata based upon the fees and expenses incurred in bringing such action. 12. GENERAL 12.1 Governing Law; Venue; Attorneys Fees. This Agreement shall be construed and controlled by the laws of the State of Washington, U.S.A., and Licensee consents to exclusive jurisdiction and venue in the federal courts sitting in King County, Washington, U.S.A., unless no federal jurisdiction exists, in which case Licensee consents to exclusive jurisdiction and venue in the Superior Court of King County, Washington, U.S.A. Licensee waives all defenses of lack of personal jurisdiction and forum non conveniens. Process may be served on either party in the manner authorized by applicable law or court rule. If either party employes attorneys to enforce any rights arising out of or relating to this Agreement, the prevailing party shall be entitled to recover its reasonable attorneys' fees, costs and other expenses. This choice of jurisdiction provision does not prevent Microsoft from seeking injunctive relief with respect to a violation of intellectual property rights or confidentiality obligations in any appropriate jurisdiction. 12.2 Notices; Requests. All notices and requests in connection with this Agreement shall be deemed given as of the day they are (i) deposited in the U.S. mails, postage prepaid, certified or registered, return receipt requested; or (ii) sent by overnight courier, charges prepaid, with a confirming fax; and addressed as follows: 14 15 Consumer Group Contract No. 19355 Licensee: Bay Area Multimedia, Inc. 333 West Santa Clara St., Ste 930 San Jose, CA 95113 Attention: Mr. Ray Musci, President Fax: (408) 298-9600 Phone: (408) 298-7500 Microsoft: MICROSOFT CORPORATION One Microsoft Way Redmond, WA 98052-6399 Attention: Xbox Business Development with a cc to: MICROSOFT CORPORATION One Microsoft Way Redmond, WA 98052-6399 Attention: Law & Corporate Affairs Department Product Development & Marketing Fax: (425) 936-7329 or to such other address as the party to receive the notice or request so designates by written notice to the other. 12.3 Assignment. Licensee may not assign this Agreement or any portion thereof, to any third party unless Microsoft expressly consents to such assignment in writing. Microsoft will have the right to assign this Agreement and/or any portion thereof as Microsoft may deem appropriate. For the purposes of this Agreement, a merger, consolidation, or other corporate reorganization, or a transfer or sale of a controlling interest in a party's stock, or of all or substantially all of its assets shall be deemed to be an assignment. This Agreement will inure to the benefit of and be binding upon the parties, their successors, administrators, heirs, and permitted assigns. 12.4 No Partnership. Microsoft and Licensee are entering into a license pursuant to this Agreement and nothing in this Agreement shall be construed as creating an employer-employee relationship, a partnership, or a joint venture between the parties. 12.5 Severability. In the event that any provision of this Agreement is found invalid or unenforceable pursuant to judicial decree or decision, the remainder of this Agreement shall remain valid and enforceable according to its terms. The parties intend that the provisions of this Agreement be enforced to the fullest extent permitted by applicable law. Accordingly, the parties agree that if any provisions are deemed not enforceable, they shall be deemed modified to the extent necessary to make them enforceable. 12.6 Injunctive Relief. The parties agree that Licensee's threatened or actual unauthorized use of the Licensed Trademarks whether in whole or in part, may result in immediate and irreparable damage to Microsoft for which there is no adequate remedy at law, and that either party's threatened or actual breach of the confidentiality provisions may cause like damage to the nonbreaching party, and in such event the nonbreaching party shall be entitled to appropriate injunctive relief, without the necessity of posting bond or other security. 15 16 Consumer Group Contract No. 19355 12.7 Entire Agreement; Modification; No Offer. The parties hereto agree that this Agreement (including all Exhibits hereto, and the Microsoft Non-Disclosure Agreement to the extent incorporated herein) and the Xbox Guide (as applicable from time to time) constitute the entire agreement between the parties with respect to the subject matter hereof and merges all prior and contemporaneous communications. It shall not be modified except by a written agreement dated subsequent hereto signed on behalf of Licensee and Microsoft by their duly authorized representatives. Neither this Agreement nor any written or oral statement related hereto constitute an offer, and this Agreement shall not be legally binding until executed by both parties hereto. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the Effective Date on the dates indicated below. MICROSOFT CORPORATION BAY AREA MULTIMEDIA, INC. /s/ J. ALLARP /s/ RAYMOND MUSCI ---------------------- ------------------------- By (sign) By (sign) J. Allarp Raymond Musci ---------------------- ------------------------- Name (Print) Name (Print) GEN MGR President ---------------------- ------------------------- Title Title 11/20/00 10/18/2000 ---------------------- ------------------------- Date Date 16 17 Consumer Group Contract No. 19355 EXHIBIT A-1 DESCRIPTION OF SOFTWARE TITLE 17 18 Consumer Group Contract No. 19355 EXHIBIT B LICENSED TRADEMARKS [insert Xbox design here] 18 19 Consumer Group Contract No. 19355 EXHIBIT C BRANDING SPECIFICATIONS The following guidelines apply whenever Licensee places a copy of any Licensed Trademark on the Software Title, or related collateral materials. - Licensee may use the Licensed Trademarks solely on the retail box, documentation, and Art & Marketing Materials for the Software Title, and in no other manner. - Licensee's name, logo, or trademark must appear on any materials where the Licensed Trademarks are used, and must be larger and more prominent than the Licensed Trademarks. - The Licensed Trademarks may not be used in any manner that expresses or might imply Microsoft's affiliation, sponsorship, endorsement, certification, or approval, other than as contemplated by this Agreement. - The Licensed Trademarks may not be included in any non-Microsoft trade name, business name, domain name, product or service name, logo, trade dress, design, slogan, or other trademark. - Licensee may use the Licensed Trademarks only as provided by Microsoft electronically or in hard copy form. Except for size subject to the restrictions herein, the Licensed Trademarks may not be altered in any manner, including proportions, colors, elements, etc., or animated, morphed, or otherwise distorted in perspective or dimensional appearance. - The Licensed Trademarks may not be combined with any other symbols, including words, logos, icons, graphics, photos, slogans, numbers, or other design elements. - The Licensed Trademarks (including but not limited to Microsoft's logos, logotypes, trade dress, and other elements of product packaging and web sites) may not be imitated. - The Licensed Trademarks may not be used as a design feature in any materials. - The Licensed Trademarks must stand alone. A minimum amount of empty space must surround the Licensed Trademarks separating it from any other object, such as type, photography, borders, edges, and so on. The required areas of empty space around the Licensed Trademarks must be 1/2x, where x equals the height of the Licensed Trademarks. - Each use of the Licensed Trademarks must include the notice: "Xbox is a trademark of Microsoft Corporation in the United States and/or other countries and is used under license from Microsoft". ADDITIONAL GUIDELINES FOR PROPER USE OF THE "XBOX" WORD MARK: - Use the trademark symbol ("(TM)") at the upper right corner or baseline immediately following the name "Xbox". This symbol should be used at the first or most prominent mention. Please be sure to spell Xbox as one word, with no hyphen and with no space between "X" and "box". - Include the following notice on materials referencing Xbox: "Xbox is a trademark of Microsoft Corporation." - Trademarks identify a company's goods or services. Xbox is not a generic thing, but rather a brand of game system from Microsoft. A trademark is a proper adjective that modifies the genetic name or descriptor of a product or service. The descriptor for Xbox is "game system," i.e., "Xbox(TM) game system." Use the descriptor immediately after mention of "Xbox". You should not combine the Xbox trademark with an improper generic name or descriptor. For example, game programs designed to run on the Xbox game system are not "Xbox games," but rather "games for the Xbox system" or "Xbox certified games." - The Xbox trademark may never by abbreviated. Do not use "X" by itself to represent "Xbox." 19 20 Consumer Group Contract No. 19355 EXHIBIT D NON-DISCLOSURE AGREEMENT 20