EXHIBIT 10.48

 

[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH
CONFIDENTIAL TREATMENT REQUEST.

 

AMENDMENT TO THE
XBOX ONE PUBLISHER LICENSE AGREEMENT
(European Sales Territory, Demos, Trials, Software Title Parity, Platform
Royalties, and Xbox Live Incentive Program)

 

This Amendment to the Xbox One Publisher License Agreement (this “Amendment”) is
effective as of [***] (the “Amendment Effective Date”) by and between Microsoft
Corporation, a Washington corporation (“Microsoft”), and Take-Two Interactive
Software, Inc. (“Publisher”), and supplements that certain Xbox One Publisher
License Agreement between the parties dated as of [***], as amended (the “Xbox
One PLA”).

 

RECITALS

 

A.                                    Microsoft and Publisher entered into the
Xbox One PLA to establish the terms under which Publisher may publish video
games for Microsoft’s Xbox One video game system.

 

B.                                    The parties now wish to amend certain
terms of the Xbox One PLA as set forth below.

 

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 Publisher agree as follows:

 

1.                                      European Sales Territory.  Israel, Saudi
Arabia, and Turkey are added to the definition of European Sales Territory.
Section 2.25 of the Xbox One PLA shall be deleted in its entirety and replaced
with the following:

 

2.25                        “European Sales Territory” means the territory for
sales distribution comprising Austria, Belgium, Czech Republic, Denmark,
Finland, France, Germany, Greece, Hungary, Israel, Italy, Ireland, Netherlands,
Norway, Poland, Portugal, Russia, Saudi Arabia, Slovakia, South Africa, Spain,
Sweden, Switzerland, Turkey, the United Arab Emirates, the United Kingdom, and
any other countries so identified by Microsoft in the Publisher Guide.

 

2.                                      Demos.  Publishers are no longer
required to obtain Microsoft’s approval to distribute a Demo.  Section 7.8 of
the Xbox One PLA shall be deleted in its entirety and replaced with:

 

7.8                               Demos.  Subject to the Publisher Guide,
Demo(s) may be distributed digitally or placed on a single disc, either as a
stand-alone or with other Demos, and the suggested price of such units must be
[***] or at a suggested retail price that does not exceed [***] or its
equivalent in local currency.  All rights, obligations, and approvals in this
Agreement that apply to Software Titles will separately apply to any Demo. [***]

 

3.                                      Trials.  Publishers are no longer
required to obtain Microsoft’s approval to distribute a Trial.  Section 7.9 of
the Xbox One PLA shall be deleted in its entirety and replaced with:

 

7.9.                            Trials.  Subject to the Publisher Guide,
Trial(s) may be distributed only digitally and the suggested price of such units
must be [***].  All rights, obligations, and approvals in this

 

1

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[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH
CONFIDENTIAL TREATMENT REQUEST.

 

Agreement that apply to Software Titles will separately apply to any Trial.  No
royalties will be payable to Microsoft for any Trial.

 

4.                                      Software Title Parity.  Section 9 of the
Xbox One PLA (Software Title parity) shall be deleted in its entirety and
replaced with the following:

 

9.                                      Software Title parity. Each Software
Title is subject to the following requirements:

 

9.1                               Base Game FPU and DFU simship.

 

9.1.1                     For each FPU of a Base Game Commercially Released in a
given Sales Territory, a DFU of the same Base Game must be made available for
distribution in that same Sales Territory, on a country-by-country basis, via
Xbox Games Store simultaneously. For purposes of this Section 9.1 only,
“simultaneously” means within [***], or;

 

9.1.2                     Publisher may elect to Commercially Release a Base
Game in digital format only.

 

9.2                               Features and content parity.

 

9.2.1                     [***], Publisher subscriptions, and pack-in content
from Publisher, subject to platform limitations. The parties will work together
in good faith to address any platform limitations that may impact feature and
content parity for the Xbox One version.

 

9.2.2                     [***]. In the event that Publisher is unable to comply
with this Section 9.2.2, the parties will work together in good faith to
determine a mutually acceptable alternative.

 

9.3                               Simship [***]

 

9.3.1                     If Publisher Commercially Releases a Base Game in both
retail and digital format, then Publisher will Commercially Release the FPU and
DFU of the Base Game(s), including Publisher subscriptions and Online Game
Features that are included as part of each such Base Game, [***].

 

9.3.2                     If Publisher elects to Commercially Release a Base
Game in digital format only, which may be an Xbox Live Arcade game or a DFU,
then Publisher will Commercially Release each Base Game(s), including Publisher
subscriptions and Online Game Features that are included as part of each such
Base Game, [***].

 

9.3.3                     Publisher will Commercially Release each Premium
Downloadable Content, Demo and additional downloadable content [***].  In the
event that Publisher is unable to comply with this Section 9.3.3, the parties
will work together in good faith to determine a mutually acceptable alternative.

 

9.4                               Gameplay record, share and streaming
features.  At Publisher’s discretion on Software Title by Software Title basis
and subject to any rights clearance issues or other license restrictions,
Publisher will support gameplay record, share, and streaming features (see
Sections

 

2

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[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH
CONFIDENTIAL TREATMENT REQUEST.

 

11.4 and 11.5) in each Software Title. Publisher retains the right to disable
gameplay record, share and streaming features at any time post-Commercial
Release of such Software Title. However, Publisher agrees, that subject to
Microsoft policy, Microsoft technical, and Microsoft rights limitations, [***].

 

5.                                      Platform Royalty.  Section 1 of
Exhibit 1 of the Xbox One PLA shall be deleted in its entirety and replaced with
the following:

 

1.                                      Platform royalty.  For each FPU
manufactured during the Term, Publisher will pay Microsoft nonrefundable
royalties as per Table 1, Table 2, and Table 3 of this Exhibit 1, and based on
the Threshold Price and Sales Territory where FPUs are sold. To determine the
applicable royalty rate, first determine the royalty tier (“Royalty Tier”) based
on the Threshold Price and Sales Territory from Table 1 below. The royalty rate
is set forth at the intersection of the Sales Territory and Royalty Tier in
Table 2 below. For example, if the Wholesale Price of a Software Title sold in
the North American Sales Territory is [***], Table 1 provides that Tier 1
royalty rates apply, which, according to Table 2, are [***] per FPU.

 

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Table 2: Royalty Rate

 

 

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6.                                      Exhibit 1, Section 1.  For purposes of
clarity, Microsoft confirms that Sections 1.1 (Standard Software Titles), 1.2
(Cross Sales Territory sales), 1.3 (Unit Discounts), and 1.4 (Royalty Tier
migration) of Exhibit 1 shall remain unchanged.

 

7.                                      Exhibits.  Exhibits 2 and 6 of the Xbox
One PLA are hereby amended and restated in their entirety as attached hereto.

 

3

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[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH
CONFIDENTIAL TREATMENT REQUEST.

 

8.                                      Except and to the extent expressly
modified by this Amendment, the Xbox One PLA shall remain in full force and
effect and is hereby ratified and confirmed. In the event of any conflict
between this Amendment and the Xbox One PLA the terms of this Amendment shall
control.

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
as of the Amendment Effective Date.

 

Mohammad Shafagat

 

Microsoft Corporation
D51B6CF2A1B9446

Take-Two Interactive Software, Inc.
DocuSigned By

Signature:

Mohammad Shafagat

Docusigned By: Mohammed Shafagat

Signature:

Dan Emerson

238DEE6BF4834F0

Name:

Mohammad Shafagat

Name:

Dan Emerson

Title:

Xbox Program Manager

Title:

EVP & GC

Date:

April 21, 2015

Date:

April 20, 2015

 

4

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[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH
CONFIDENTIAL TREATMENT REQUEST.

 

EXHIBIT 2 — XBOX ONE ROYALTY TIER SELECTION FORM

 

Please complete and sign the form, and submit via email to 3PPOPS@microsoft.com
with CC to your Account Manager or submit electronically. If more information on
electronic submission is needed, please contact your Account Manager.

 

A.                                    This form must be submitted at least [***]
prior to the first manufacturing order being placed for the Software Title for
each respective Sales Territory. If this form is not submitted on time or is
rejected by Microsoft, the royalty rate will default to [***] for the applicable
Sales Territory.

 

B.                                    A separate form must be submitted for each
Sales Territory.

 

C.                                    Initial order must meet MOQ for the Sales
Territory listed in Section 7.10, Table 1 of the Agreement and the Publisher
Guide.

 

D.                                    If a Base Game edition and a non-standard
edition (such as GOTY, Special, Limited, Collectors’ Editions or Compilations)
will both be commercially available, the “Xbox One Royalty Tier Selection
Form for Non-Standard or Bundle Editions” must also be submitted.

 

1.                                      Publisher Name:

 

2.                                      Xbox One Software Title Name:

 

3.                                      Date of First Commercial Release
(mm/dd/yy):

 

4.                                      Sales Territory or Program (check one):

 

o North
American

o European

o Australian

o South
American

o Asian

o Japan

 

5.                                      Final Certification Date(mm/dd/yy):

 

6.                                      [***]

 

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The undersigned represents that he/she has authority to submit this form on
behalf of the above Publisher, and that the information contained herein is true
and accurate.

 

To avoid manufacturing delays at your Authorized Replicator, your disc
manufacturing order must include the intended Sales Territory or Program as
indicated above.

 

 

 

By (sign)

 

 

 

 

 

Name, Title (Print)

 

 

 

 

 

E-Mail Address (for confirmation of receipt)

 

5

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[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH
CONFIDENTIAL TREATMENT REQUEST.

 

EXHIBIT 6 — XBOX LIVE INCENTIVE PROGRAM

 

1.                                      Xbox Live Incentive Program

 

In order to encourage Publisher to support Xbox Live functionality and drive
increased usage of Xbox Live, Publisher may qualify for certain [***] incentive
payments based on the amount of Xbox Live Share generated by Publisher’s
Multiplayer Software Titles.

 

[***]

 

2.                                      Definitions

 

2.1                               “Accounting Period” means each Microsoft [***]
within the Program Term, provided that if the Program Term ends within such a
[***], then the applicable payment calculation set forth below shall be made for
a partial Accounting Period.

 

2.2                               “Day” means a period of twenty-four hours,
commencing at midnight and continuing until midnight the following day using
Coordinated Universal Time (UTC).

 

2.3                               “Guest(s)” means an individual who accesses
Xbox Live and is not a Multiplayer Subscriber or a Subscriber.

 

2.4                               “Multiplayer Game Session” means [***].

 

2.5                               [***]

 

2.6                               [***]

 

2.7                               [***]

 

2.8                               [***]

 

2.9                               [***]

 

3.                                      [***]

 

[***]

 

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[***]

 

[***]

 

4.                                   Incentive Payment.  The incentive payments
shall be determined pursuant to Table 1 below and paid [***]

 

6

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[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH
CONFIDENTIAL TREATMENT REQUEST.

 

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Example. [***]

 

·            [***]

·            [***]

·            [***]

·            [***]

 

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·            [***]

·            [***]

·            [***]

·            [***]

 

[***]

 

a.              [***]

b.              [***]

c.               [***]

 

[***]

 

5.                                   Payments.  In the event Publisher qualifies
for an incentive payment under the Xbox Live Incentive Program during [***],
Microsoft will provide payment for any amount due to Publisher [***].

 

6.                                   Other Xbox Live Incentive Program
Requirements

 

6.1                               Multiplayer Software Title simship, feature
and content parity.  Any Multiplayer Software Title that does not meet the
following simship, feature and content parity requirements [***]

 

7

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[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH
CONFIDENTIAL TREATMENT REQUEST.

 

6.1.1                                             In every country where Xbox
360 and/or Xbox One are available, Publisher must Commercially Release an Xbox
360 and/or Xbox One version of a Multiplayer Software Title on a
country-by-country [***]

 

6.1.2                                             All Digital Content, Betas,
Demos, and Trials for each Multiplayer Software Title must be shipped [***]; and

 

6.1.3                                             [***].

 

6.2                               [***]

 

6.3                               [***]

 

6.3.1                                             [***]

 

(i)                                                [***]

 

(ii)                                            [***]

 

6.3.2                                             [***]

 

6.4                               [***]

 

7.                                   Program Term, Termination, and Changes. 
This Xbox Live Incentive Program will commence on [***], and will be available
until [***], unless earlier terminated by Microsoft upon written notice to
Publisher (“Program Term”). Microsoft may change or discontinue the Xbox Live
Incentive Program by providing Publisher with [***] advance written notice.

 

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