Document:

Exhibit 10.27

 

AMENDMENT TO THE

XBOX PUBLISHER LICENSING AGREEMENT

(Term, Tier ****, Limited Tier Migration, Super Hits Program,

Minimum Order Quantities, Samples, Demo Versions, Billing Addresses)

 

This Amendment to the Xbox Publisher License Agreement (this “Amendment”)
is entered into and effective as of March 1, 2005 (the “Amendment Effective
Date”) by and between Microsoft Licensing, GP, a
Nevada general partnership (“Microsoft”), and                                                       
(“Licensee” or “Publisher”), and supplements that certain XboxÔ Publisher License
Agreement between the parties dated as of                          ,
as amended (the “PLA”).

 

RECITALS

 

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

 

B.                                     The
parties now wish to extend the Term of the PLA and amend certain provisions thereof
for Publisher’s continued manufacture and distribution of video games for the
Xbox.

 

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.                                      Definitions; Interpretation

 

1.1                                 “Asian Sales Territory” means the territory
comprising Taiwan, Hong Kong, Singapore and Korea, and any other countries that
are listed by Microsoft from time to time as set forth in the Xbox Guide.  The Asian Sales Territory does not include
Japan.

 

1.2                                 “Base Royalty” means the licensing fee to be
paid to Microsoft as defined in this Amendment.

 

1.3                                 “Demo Versions” means a small portion of a Software Title
that is provided to end users at no or minimal cost to advertise or promote the
Software Title.

 

1.4                                 “Standard
FPU” means an FPU of a Software Title which is not a Hits FPU.  The Commercial Release of a Software Title
may only consist of Standard FPUs.

 

1.5                                 Except as expressly provided otherwise in
this Amendment, capitalized terms shall have the same meanings ascribed to them
in the PLA or its amendments.

 

1.6                                 The terms of the PLA are incorporated by
reference, and except and to the extent expressly modified by this Amendment or
any previous amendments, the 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 PLA or any prior
amendments thereto, the terms of this Amendment shall control.  In the event of any conflict between this
Amendment and the Xbox Guide, the terms of this Amendment shall control.  The parties specifically acknowledge that
except as expressly set forth herein, this Amendment supersedes any prior
amendments to the PLA related to manufactured FPU royalty rates and/or payments.

 

2.                                      Term

 

The term of the PLA is hereby extended until November 15,
2007 (the “Current Term”).  Unless one
party gives the other notice within **** prior to the end of the Current Term,
this Agreement shall automatically renew for a single renewal term of ****.  The period of time since the Effective Date of
the PLA through the Current Term and any extensions or renewals thereto shall
constitute the “Term” as referred to in the PLA and this Amendment.

 

* Confidential
portion omitted and filed separately with the Securities and Exchange
Commission.

 

MICROSOFT
CONFIDENTIAL

 

1

 

3.                                      New Royalty ****

 

3.1                                 The royalty rate tables and provisions in
Sections 7.1.4 and 7.1.5 (or Sections 6.1.4 and 6.1.5) of the PLA describing
how royalty rates are calculated are hereby replaced by the provisions of this
Amendment.  Notwithstanding the
foregoing, the **** described below will only be available to Publisher after
****.

 

3.2                                 Royalty Fee

 

3.2.1                        For each FPU manufactured
during the Term of the PLA, Publisher shall pay Microsoft nonrefundable
royalties in accordance with the royalty tables set forth below (Tables 1 and
2) and the “Unit Discount” table set forth in Section 3.4 of this
Amendment (Table 3).

 

3.2.2                        The Base Royalty rate is determined
by the “Threshold Price” (which is the Wholesale Price (WSP) or Suggested
Retail Price (SRP) at which Publisher intends to sell the Software Title in the
applicable Sales Territory) and the Publisher’s billing election per the PLA (“worldwide”
or “regional”).  To determine the applicable
Base Royalty for a particular Software Title in a particular Sales Territory,
the applicable Threshold Price from Table 1 below will determine the correct royalty
“Tier.”  The Base Royalty is then as set
forth in Table 2 based on the billing option selected by Publisher under the
PLA and the Manufacturing Region in which the FPUs will be manufactured.  For
example, assume the Wholesale Price of a Software Title to be sold in the
European Sales Territory is ****.  According to Table 1, Tier 2 royalty rates
will apply to that Software Title.  If the Publisher has chosen a worldwide
billing election, then the Base Royalty is **** per Table 2.  If Publisher has chosen a regional billing
option, the Base Royalty is determined in Table 2 by the Manufacturing
Region.  If the Software Title were
manufactured in the European Manufacturing Region, the Base Royalty would be
**** per FPU.  If the Software Title were manufactured in Asian Manufacturing Region, the Base Royalty
would be **** per FPU.

 

Table 1: Threshold Price per Sales Territory

 

	
   

  	
   

  	
  North
  America WSP

  	
   

  	
  European WSP

  	
   

  	
  Japan SRP

  	
   

  	
  Asia WSP (US$)*

  
	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  

 

*This is the US dollar equivalent of local currency
in the Asia Sales Territory.

 

Table 2: Royalty Rates

 

	
   

  	
   

  	
  Worldwide
  Billing

  Option

  	
   

  	
  Royalty
  Rate per Manufacturing Region for Regional

  Billing Option

  
	
   

  	
   

  	
   

  	
  North American

  	
   

  	
  European

  	
   

  	
  Asian

  
	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  

 

3.3                                 Setting the Base Royalty. 
Publisher shall submit to Microsoft, at least **** before placing the
first manufacturing order for a Software Title, a completed and signed “Royalty
Tier Selection Form” in the form attached hereto as Exhibit 1 for
each Sales Territory.  The selection
indicated in the form will only be effective once the form has been

 

* Confidential
portion omitted and filed separately with the Securities and Exchange
Commission.

 

2

 

accepted by Microsoft.  If Publisher does not submit a Royalty Tier
Selection Form as required hereunder, the Base Royalty for such Software
Title will default to Tier 1, regardless of the actual Threshold Price.  Except for as provided for under Section 4
of this Amendment, the selection of a Base Royalty for a Software Title in a
Sales Territory is binding for **** even if the Threshold Price is reduced
following the Software Title’s Commercial Release.  Microsoft may change the fees and royalty
rates set forth herein upon written notice to Publisher in ****, which new fees
and royalty rates will become effective ****.

 

3.4                                 Unit
Discounts.   Publisher is eligible for a discount to the Base
Royalty applicable to FPUs manufactured for a particular Sales Territory (a “Unit
Discount”) based on the number of Standard FPUs that have been manufactured for
sale in that Sales Territory as described in Table 3 below.   Note that units manufactured for sale in a
Sales Territory are aggregated only towards a discount on FPUs manufactured for
that Sales Territory; there is no worldwide or cross-territorial aggregation of
units.  The discount will be rounded up to the nearest Cent, Yen or
hundredth of a Euro.  Microsoft may revise the discount schedule upon written notice to Publisher ****, which
revised discount schedule will become effective ****.

 

Table 3: Unit Discounts

 

	
  Unit

  Discount

  	
   

  	
  North American Sales

  Territory

  	
   

  	
  European Sales

  Territory

  	
   

  	
  Japan Sales

  Territory

  	
   

  	
  Asian Sales Territory

  
	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  

 

Example 1 (under worldwide
billing election):   Publisher manufactures a Software Title for
sale in the North American Sales Territory with a wholesale price between ****
and an initial order quantity of **** Standard FPUs.  Publisher manufactures the same Software
Title for sale in the European Sales Territory with a wholesale price between
**** and an initial order
quantity of **** Standard FPUs.   The actual applied royalty rates
for this Software Title would be:

 

i.              For North American Sales Territory:

a.    **** for
units **** (****% discount)

b.    **** for
units **** (****% discount)

 

ii.             For
European Sales Territory:

a.    **** for
units **** (****% discount)

 

Example 2 (under regional billing
election):   Publisher manufactures **** Standard FPUs of
a Software Title in the North American Manufacturing Region for sale in the
North American Sales Territory with a wholesale price between ****.  Publisher then manufactures **** Standard
FPUs in the European Manufacturing Region for sale in the North American Sales
Territory with that same wholesale price (total FPUs for North American Sales
Territory: ****).  Finally, Publisher
manufactures **** Standard FPUs of the same Software Title in the European
Manufacturing Region for sale in the Japan Sales Territory at a suggested
retail price below ****.   The actual applied royalty rates
for this Software Title would be:

 

i.              For North American Sales Territory:

a.     **** for
units **** (****% discount)

b.     **** for
units **** (****% discount)

c.     ***** (i.e., ****) for units ***** (****% discount)

 

ii.             For
Japan Sales Territory:

a.    **** for
units **** (****% discount)

 

4.                                      Limited Royalty Tier Migration

 

4.1                                 Under the conditions described in this Section 4,
Publisher may change the previously elected Base Royalty

 

* Confidential
portion omitted and filed separately with the Securities and Exchange
Commission.

 

3

 

rate for a Software Title in a specific Sales
Territory ****.  In order for the new
Base Royalty to be applied to Publisher’s FPUs, Publisher shall submit to
Microsoft, at least **** before placing a manufacturing order for the Software Title
to which Publisher desires the new Base Royalty to apply, a completed and
signed “Royalty Tier Change Form” in the form attached hereto as Exhibit 2
for each Sales Territory.

 

4.2                                 The
Royalty Tier Change Form must be received and acknowledged by Microsoft no
sooner than **** and no later than **** the date that the Software Title was Commerically
Released in the applicable Sales Territory, which Commercial Release date must occur
on or after ****.  No change to a Base Royalty will be effective
before ****.

 

4.3                                 The
change in Base Royalty represented by the Royalty Tier Change Form will
only apply prospectively to manufacturing orders placed after the form has been
accepted by Microsoft.

 

4.4                                 Publisher
may only submit a single Royalty Tier Change Form per Software Title per
Sales Territory.

 

4.5                                 Publisher
may only change from Tier **** to Tier ****.

 

4.6                                 If
Publisher submits a Royalty Tier Change Form for a Software Title in a
particular Sales Territory, the Software Title is thereafter not eligible to
participate in any Hits Program for that Sales Territory.

 

5.                                      Hits Programs

 

5.1                                 Publisher may elect to participate in certain
Platinum or Classic Hits, Platinum or Classic Family Hits or Super Hits programs
(collectively referred to herein as “Hits Programs”) for qualified Software
Titles (a “Hit FPU”).  If Publisher
elects to participate in a Hits Program, Publisher must provide Microsoft with
a completed and signed Hits Programs Election Form in the form attached
hereto as Exhibit 3 no later than **** prior to the targeted
Commercial Release of the Hit FPU.  If a
Software Title meets the applicable participation criteria in a particular
Sales Territory and Microsoft receives the Hits Programs Election Form on
time, Publisher is authorized to manufacture and distribute Hit FPUs in such
Sales Territory and at the Base Royalty rate in Table 2 of Section 3.2.2
of this Amendment applicable to “Hit FPUs” or “Super Hit FPUs,” as applicable  In
order for a Software Title to qualify as a Hits FPU in a Sales Territory, the
following conditions, applicable per Hits Program, must be satisfied:

 

5.1.1                        For all Hits Programs, the
Software Title must have been commercially available as a Standard FPU in the
applicable Sales Territory for at least **** but not more than ****.  Notwithstanding the foregoing, a Software
Title may qualify as a Hit FPU in the European or Japan Sales Territory ****.

 

5.1.2                        To qualify as a Platinum Family
Hit, the Software Title must (i) have received an “E,” or, in the event
such rating is officially adopted by the ESRB, an “E10” rating, from the ESRB
and/or a “PEGI 3+” rating in Europe and/or an equivalent rating in the
applicable Sales Territory (to the extent Software Titles are rated by
regulatory boards within the applicable Sales Territory); and (ii) be
character based and/or appeal, as determined by Microsoft in its sole good
faith discretion, to children 12 years of age and younger.

 

5.1.3                        In any **** in a Sales
Territory, Publisher may not publish more than **** Software Titles as part of
the Platinum or Classic Hits Family Program.

 

5.1.4                        To qualify as a “Super Hit,” a
Software Title must have been a Hits FPU for at least ****.  The manufacturing requirements are different
depending on whether a potential Super Hit started out as a Platinum or Classic
Hit or Platinum or Classic Family Hit.  No
Software Title may be released as a Super Hit prior to ****.

 

* Confidential
portion omitted and filed separately with the Securities and Exchange
Commission.

 

4

 

5.1.5                        Publisher must have
manufactured the following minimum quantities of Standard and/or Hit FPUs (as
indicated below) for the applicable Sales Territory and Hits Program.

 

Table 4: Hits Manufacturing Requirements

 

	
   

  	
   

  	
  NA

  	
   

  	
  EU

  	
   

  	
  Japan

  	
   

  	
  Asia

  
	
  Platinum
  or Classic Hits

  - Must be Standard FPUs

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  Super
  Hits from Platinum or Classic Hits

  - Must be Standard, Platinum or Classics Hit FPUs

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  Platinum
  or Classic Family Hits

  - Must be Standard FPUs

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  Super
  Hits from Platinum or Classic Family Hits

  - Must be Standard, Platinum or Classic Family Hit FPUs

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  	
   

  	
  ****

  

 

5.1.6                        The Wholesale Price per Hit FPU
other than Super Hits must not exceed **** in the North American Sales
Territory, the equivalent of **** in local currency for the Asian Sales
Territory, **** in the European Sales Territory; and the suggested retail price
must be less than **** in the Japan Sales Territory.  The Wholesale Price per Super Hits FPU must
not exceed **** in the North American Sales Territory, the equivalent of ****
in local currency for the Asia Sales Territory and **** in the European Sales
Territory.

 

5.2                                 All Marketing Materials for a Hit FPU must
clearly comply with all Microsoft branding requirements as may be required in
each Sales Territory and Publisher shall submit all such Marketing Materials to
Microsoft for its approval in accordance with the PLA.  Notwithstanding the foregoing, all Hit FPUs
must comply with the basic branding and other requirements for Marketing
Materials set forth in the Xbox Guide.

 

5.3                                 The Hit FPU version must be the same or
substantially equivalent to the Standard FPU version of the Software
Title.  Publisher may modify or add
additional content or features to the Hit FPU version of the Software Title
(e.g., demos or game play changes) subject to Microsoft’s review and approval,
which approval shall not be unreasonably withheld, and Publisher acknowledges
that any such modifications or additions may require the Software Title to be
re-Certified at Publisher’s expense.

 

6.                                      Minimum Order Quantities

 

6.1                                 Within **** after the date on which both
Microsoft and Publisher have authorized the Authorized Replicator to begin
replication of FPUs for distribution to a specified Sales Territory, (receipt
of both approvals is referred to as “Release to Manufacture”), Publisher must
place orders to manufacture the minimum order quantities (“MOQs”) as described
in the Xbox Guide, which MOQ’s may be updated and revised **** and will be
effective starting ****.  Currently, the
MOQs are as follows:

 

	
   

  	
   

  	
  Per Software Title

  	
   

  	
  Per Disc

  
	
  North American
  Sales Territory

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  European Sales
  Territory

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  Japan Sales
  Territory

  	
   

  	
  ****

  	
   

  	
  ****

  
	
  Asian Sales
  Territory

  	
   

  	
  ****

  	
   

  	
  ****

  

 

6.2                                 For the purposes of this Section, a “Disc”
shall mean an FPU that is signed for use on a certain defined range of Xbox
hardware, regardless of the number of languages or product SKUs contained
thereon.   The MOQs per Software Title
are cumulative per Sales Territory.  For
example, if an FPU is released in both the North American Sales

 

* Confidential
portion omitted and filed separately with the Securities and Exchange
Commission.

 

5

 

Territory and the European Sales Territory, the
cumulative MOQ per Software Title would be ****.  The MOQ per Software Title and the MOQ per
Disc, however, are not cumulative.  For
example, a single Disc FPU released only in the North America Sales Territory
will have a total minimum order quantity of ****, which would cover the ****
MOQ per Software Title and the **** MOQ per Disc (rather than **** which would
have been the total minimum order quantity if the MOQ per Software Title and
the MOQ per Disc were cumulative).

 

6.3                                 If Publisher fails to place orders to meet
any applicable minimum order quantity within **** of Release to Manufacture, Publisher
shall immediately pay Microsoft the applicable Base Royalty for the number of
FPUs represented by the difference between the applicable minimum order quantity
and the number of FPUs of the Software Title actually ordered by Publisher.

 

7.                                      Samples

 

For each Software Title published under the PLA, as
soon as possible following Microsoft’s request and at Publisher’s cost, Publisher
shall provide Microsoft with **** FPUs and accompanying Marketing Materials per
Sales Territory in which the FPU will be released.  Such units may be used in marketing, as
product samples, for customer support, testing and for archival purposes. Publisher
will not have to pay a Base Royalty for such samples nor will such samples
count towards the Unit Discount in Section 3 of this Amendment.

 

8.                                      Demo Versions

 

If Publisher wishes to distribute a Demo Version,
Publisher must obtain Microsoft’s approval and Microsoft may charge a
reasonable fee to offset costs of the Certification.  Subject to the terms of the Xbox Guide, Demo
Version(s) may be placed on a single disc, either as a stand-alone or with other Demo Versions and the
suggested price of such units must be free or at a suggested retail price that
does not exceed **** or its equivalent in local currency.  Unless separately addressed in the Xbox
Guide, all rights, obligations and approvals set forth in the PLA as applying
to Software Titles shall separately apply to any Demo Version.  No royalties will be payable to Microsoft
with respect to any Demo Versions.

 

9.                                      Billing
Addresses

 

Publisher may have up to three “bill to” addresses for
the payment of royalties, one for the North American Manufacturing Region, one
for the European Manufacturing Region and one for the Asian Manufacturing
Region.  If Publisher elects to have a
billing address within a European union member country after ****, Publisher
must submit a completed and signed enrollment form with Microsoft Ireland
Operations Ltd. (“MIOL”) attached hereto as Exhibit 4 prior to ****.  If Publisher does not sign the MIOL
enrollment form by ****, then all billing to any previously established
European address will default to Publisher’s “sold-to” address on file with
Microsoft.  If the Publisher has not
signed the MIOL Enrollment form by **** and has no address on file with
Microsoft that is not within a European union member country, all manufacturing
under the PLA will cease until a properly executed MIOL enrollment form is
received.

 

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

 

	
  MICROSOFT
  LICENSING, GP

  	
   

  	
  [PUBLISHER]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By (sign)

  	
   

  	
   

  	
  By (sign)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name (Print)

  	
   

  	
   

  	
  Name (Print)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date (Print mm/dd/yy)

  	
   

  	
   

  	
  Date (Print mm/dd/yy)

  	
   

  

 

* Confidential
portion omitted and filed separately with the Securities and Exchange
Commission.

 

6

 

EXHIBIT 1

ROYALTY TIER SELECTION FORM

 

PLEASE
COMPLETE THE BELOW INFORMATION, SIGN THE FORM, AND FAX IT TO MICROSOFT AT +1
(425) 708-2300 TO THE ATTENTION OF MICROSOFT LICENSING, GP (MSLI) AND YOUR
ACCOUNT MANAGER.

 

NOTES:

•                  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,
THE ROYALTY RATE WILL DEFAULT TO TIER 1 FOR THE APPLICABLE SALES TERRITORY.

•                  A SEPARATE FORM MUST
BE SUBMITTED FOR EACH SALES TERRITORY.

 

	
  1.

  	
   

  	
  Publisher Name:

  	
   

  	
   

  
	
   

  
	
  2.

  	
   

  	
  Xbox Software Title Name:

  	
   

  	
   

  
	
   

  
	
  3.

  	
   

  	
  XMID Number:

  	
   

  	
  4.

  	
  Manufacturing Region (check one):

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  North America

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Europe

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Asia

  
	
   

  
	
  5.

  	
   

  	
  Sales Territory (check one):

  	
   

  	
  6.

  	
  Final Certification Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  North American Sales Territory

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Japan Sales Territory

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  European Sales Territory

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Asian Sales Territory

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Select Royalty Tier: (check one): 
  ****:

  	
   

  	
  ****:

  	
   

  	
  *   ****:

  	
   

  	
  ****:

  	
   

  	
   

  
																				

 

*Available
only for manufacturing orders ****.

 

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.

 

	
   

  	
   

  	
   

  
	
   

  	
  By (sign)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name, Title
  (Print)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  E-Mail Address
  (for confirmation of receipt)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date (Print mm/dd/yy)

  	
   

  

 

* Confidential
portion omitted and filed separately with the Securities and Exchange
Commission.

 

 

EXHIBIT 2

ROYALTY TIER CHANGE FORM

 

PLEASE
COMPLETE THE BELOW INFORMATION, SIGN THE FORM, AND FAX IT TO MICROSOFT AT +1
(425) 708-2300 TO THE ATTENTION OF MICROSOFT LICENSING, GP (MSLI) AND YOUR
ACCOUNT MANAGER.

 

NOTES:

•                  THIS FORM MUST BE
SUBMITTED AT LEAST **** PRIOR TO THE FIRST MANUFACTURING ORDER TO WHICH
PUBLISHER DESIRES THE NEW BASE ROYALTY TO APPLY FOR EACH RESPECTIVE SALES
TERRITORY.

•                  PUBLISHER UNDERSTANDS THAT
BY SUBMITTING THIS FORM, THE SOFTWARE TITLE WILL NO LONGER BE ELIGIBLE TO
PARTICIPATE IN ANY HITS PROGRAM.

•                  A SEPARATE FORM MUST
BE SUBMITTED FOR EACH SALES TERRITORY IN WHICH PUBLISHER DESIRES TO CHANGE THE
APPLICABLE BASE ROYALTY.

 

	
  1.

  	
   

  	
  Publisher Name:

  	
   

  	
   

  
	
   

  
	
  2.

  	
   

  	
  Xbox Software Title Name:

  	
   

  	
   

  
	
   

  
	
  3.

  	
   

  	
  XMID Number:

  	
   

  	
  4.

  	
  Manufacturing Region (check one):

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  North America

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Europe

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Asia

  
	
   

  
	
  5.

  	
   

  	
  Sales Territory (check one):

  	
   

  	
  6.

  	
  First Commercial Release (must be on or after ****):

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  North American Sales Territory

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Japan Sales Territory

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  European Sales Territory

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Asian Sales Territory

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Current royalty
  tier:  ****:

  	
   

  	
   

  	
  ****:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Select Royalty Tier: (check one): 
  ****:

  	
   

  	
  *   ****:

  	
   

  	
   

  	
   

  	
   

  
																						

 

*Available
only for manufacturing orders ****.

 

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.

 

	
   

  	
   

  	
   

  
	
   

  	
  By (sign)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name, Title
  (Print)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  E-Mail Address
  (for confirmation of receipt)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date (Print mm/dd/yy)

  	
   

  

 

* Confidential
portion omitted and filed separately with the Securities and Exchange
Commission.

 

 

EXHIBIT 3

HITS PROGRAMS  ELECTION FORM

 

PLEASE
COMPLETE THE BELOW INFORMATION, SIGN THE FORM, AND FAX IT TO MICROSOFT AT +1 (425)
708-2300 TO THE ATTENTION OF MICROSOFT LICENSING, GP (MSLI) AND YOUR ACCOUNT
MANAGER.

 

NOTES:

•                  THIS FORM MUST BE
SUBMITTED BY A PUBLISHER AT LEAST **** PRIOR TO THE TARGET COMMERCIAL RELEASE
DATE FOR A SOFTWARE TITLE IN A HITS PROGRAM IN ANY SALES TERRITORY.

•                  A SEPARATE FORM MUST
BE SUBMITTED FOR EACH SALES TERRITORY IN WHICH THE PUBLISHER WISHES TO PUBLISH
A SOFTWARE TITLE AS PART OF A HITS PROGRAM AND FOR EACH HITS PROGRAM.

 

	
  1)

  	
   

  	
  Publisher Name:

  	
   

  	
   

  
	
   

  
	
  2)

  	
   

  	
  Xbox Software Title Name:

  	
   

  	
   

  
	
   

  
	
  3)

  	
   

  	
  XMID Number:

  	
   

  	
   

  
	
   

  
	
  4)

  	
   

  	
  (circle one)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Platinum Hits

  	
   

  	
  Platinum Family Hits

  
	
   

  	
   

  	
  Classic Hits

  	
   

  	
  Classic Family Hits

  
	
   

  	
   

  	
  Super Hits from Platinum or Classic Hits

  	
   

  	
  Super Hits from Platinum or Classic Family Hits  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5)

  	
   

  	
  Sales Territory for which Publisher wants to publish the Software Title
  as a Hit FPU (check one):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  North American Sales
  Territory

  	
   

  	
  Japan Sales Territory
  (Platinum Hits only)

  
	
   

  	
   

  	
   

  	
   

  	
  European Sales Territory

  	
   

  	
  Asian Sales Territory

  
	
   

  	
   

  	
   

  
	
  6)

  	
   

  	
  Date of Commercial Release of Software Title in applicable Sales
  Territory:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  7)

  	
   

  	
  Number of FPUs  manufactured to
  date for the Software Title in the applicable Sales Territory (include Hits
  FPUs for Super Hits 

  
	
   

  	
   

  	
  program):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  8)

  	
   

  	
  Projected Commercial Release date of Software Title in the applicable
  Sales Territory as part of Hits Program:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  9)

  	
   

  	
  Manufacturing Region for Hit FPUs (circle one):

  	
  North American

  	
  European

  	
  Asian

  
																						

 

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.

 

	
   

  	
   

  	
   

  
	
   

  	
  By (sign)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name, Title
  (Print)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  E-Mail Address
  (for confirmation of receipt)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date (Print mm/dd/yy)

  	
   

  

 

* Confidential
portion omitted and filed separately with the Securities and Exchange
Commission.

 

 

EXHIBIT 4

XBOX PUBLISHER ENROLLMENT FORM

 

PLEASE COMPLETE THE FORM ABOVE,
SIGN IT, AND FAX IT TO MICROSOFT AT +1 (425) 708-2300 TO THE ATTENTION OF
YOUR ACCOUNT MANAGER.

 

NOTE:  PUBLISHER MUST COMPLETE, SIGN AND SUBMIT THIS
ENROLLMENT FORM PRIOR TO **** TO HAVE A BILLING ADDRESS WITHIN A EUROPEAN
UNION MEMBER COUNTRY (INCLUDING PREVIOUSLY ESTABLISHED ADDRESSES).

 

This
Xbox Publisher License Enrollment (“Enrollment”) is entered into between Microsoft
Ireland Operations Ltd. (“MIOL”) and                   
(“Publisher”), and effective as of the latter of the two signatures identified
below.   The terms of that certain
Publisher License Agreement signed by Microsoft Licensing GP and                     dated on or about                     (the “PLA”) are incorporated herein by
reference.

 

1.                                       Term.  This Enrollment will expire on the date on
which the PLA expires, unless it is terminated earlier as provided for in that agreement.

 

3.                                       Representations
and warranties.  By signing this Enrollment,
the parties agree to be bound by the terms of this Enrollment and Publisher represents
and warrants that: (i) it has read and understood the PLA, including any
amendments thereto, and agree to be bound by those; (ii) it is either the
entity that signed the PLA or its affiliate; and (iii) the information
that provided herein is accurate.

 

4.                                       Notices;
Requests.  All notices and requests
in connection with this Agreement are deemed given on the third day after they
are deposited in the applicable country’s mail system (7 days if sent
internationally), postage prepaid, certified or registered, return receipt
requested; or the day after they are sent by overnight courier, charges
prepaid, with a confirming fax; and addressed as follows:

 

 

	
  Publisher:

  	
   

  	
   

  	
   

  	
  Microsoft:

  	
  MICROSOFT
  IRELAND OPERATIONS LTD.

  
	
   

  	
   

  	
   

  	
   

  	
  Microsoft
  European Operations Centre,

  
	
  Attention:

  	
   

  	
   

  	
   

  	
   

  	
  Atrium Building
  Block B,

  
	
   

  	
   

  	
   

  	
   

  	
  Carmenhall Road,

  
	
  Fax:

  	
   

  	
   

  	
   

  	
   

  	
  Sandyford
  Industrial Estate

  
	
   

  	
   

  	
   

  	
   

  	
  Dublin 18

  
	
  Phone:

  	
   

  	
   

  	
   

  	
   

  	
  Ireland

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Email:

  	
   

  	
   

  	
   

  	
   

  	
  Fax: 353 1 706 4110

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a cc to:

  	
  MICROSOFT
  CORPORATION

  
	
   

  	
   

  	
   

  	
  One Microsoft
  Way

  
	
   

  	
   

  	
   

  	
  Redmond, WA  98052-6399

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Law &
  Corporate Affairs Department

  
	
   

  	
   

  	
   

  	
  Consumer

  
	
   

  	
   

  	
   

  	
  Legal Group,
  H&ED (Xbox)

  
	
   

  	
   

  	
   

  	
  Fax:  +1 (425) 706-7329

  
										

 

or to such other address
as the party to receive the notice or request so designates by written notice
to the other.

 

[remainder of page intentionally left blank]

 

* Confidential
portion omitted and filed separately with the Securities and Exchange
Commission.

 

 

5.                                       Billing
Address.          Publisher’s billing
address for the European Manufacturing Region is as follows:

 

	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  VAT number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attention:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Email address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Fax:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Phone:

  	
   

  	
   

  

 

 

	
  MICROSOFT
  IRELAND OPERATIONS LTD.

  	
   

  	
  PUBLISHER:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By (sign)

  	
   

  	
   

  	
  By (sign)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name (Print)

  	
   

  	
   

  	
  Name (Print)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date (Print mm/dd/yy)

  	
   

  	
   

  	
  Date (Print mm/dd/yy)Exhibit 10.32

 

CONFIDENTIAL LICENSE AGREEMENT

FOR NINTENDO DS (Western Hemisphere)

 

THIS
LICENSE AGREEMENT (“Agreement”) is entered into between NINTENDO OF AMERICA
INC. (“NOA”), at 4820 150th Avenue N.E., Redmond, WA  98052 Attn: General Counsel (Fax:  425-882-3585)
and THQ Inc. (“LICENSEE”) at 27001 Agoura Road, Suite 325, Calabasas
Hills, CA 91301 Attn:  Brian J. Farrell
(Fax: (818) 871-7400).  NOA and
LICENSEE agree as follows:

 

1.                                      RECITALS

 

1.1                                 NOA
markets and sells advanced design, high-quality video game systems, including
the Nintendo DS system.

 

1.2                                 LICENSEE
desires a license to use highly proprietary programming specifications,
development tools, trademarks and other valuable intellectual property rights
of NOA and its parent company, Nintendo Co., Ltd. (collectively “Nintendo”), to
develop, have developed (subject to Section 4.2 below), have manufactured,
advertise, market and sell video game software for play on the Nintendo DS
system.

 

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

 

2.                                      DEFINITIONS

 

2.1                                 “Artwork”
means the design specifications for the Game Card label and Printed Materials
in the format specified by NOA in the Guidelines.

 

2.2                                 “Bulk
Goods” means the Game Cards with Game Card labels affixed.

 

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

 

2.4                                 “Effective
Date” means November 1, 2004.

 

2.5                                 “Finished
Product(s)” means the fully assembled and shrink-wrapped Licensed Products,
each including a Game Card, Game Card label and Printed Materials.

 

2.6                                 “Game
Card(s)” means custom card media specifically manufactured under the terms of
this Agreement for play on the Nintendo DS system, incorporating semiconductor
components in which a Game has been stored.

 

2.7                                 “Game(s)”
means the Nintendo DS version of an interactive video game program, or other
applications approved by Nintendo (including source and object/binary code)
developed for the Nintendo DS system.

 

2.8                                 “Guidelines”
means the current version or any future revision of the “Nintendo DS Packaging
Guidelines”, “Nintendo DS Development Manual” and related guidelines provided
by NOA to LICENSEE.

 

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

 

2.10                           “Intellectual
Property Rights” means individually, collectively or in any combination,
Proprietary Rights owned, licensed or otherwise held by Nintendo that are
associated with the development, manufacturing, advertising, marketing or sale
of the Licensed Products, including, without limitation, (a) registered
and unregistered trademarks and trademark applications used in connection with

 

1

 

Games for the Nintendo DS system
including “Nintendo®”, “Nintendo DSTM”, “DSTM”, and the “Official Nintendo Seal®”,
(b) select trade dress associated with the Nintendo DS system and licensed
Games for play thereon, (c) Proprietary Rights in the Security Technology
incorporated into the Game Cards, (d) rights in the Development Tools for
use in developing the Games, (e) patents or design registrations
associated with the Game Cards, (f) copyrights in the Guidelines, and (g) other
Proprietary Rights of Nintendo in the Confidential Information (as defined in Section 8.1).

 

2.11                           “Licensed
Products” means (a) Finished Products, or (b) Bulk Goods when fully
assembled and shrink-wrapped with the Printed Materials.

 

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

 

2.13                          “NDA”
means the non-disclosure agreement providing for the protection of Confidential
Information related to the Nintendo DS system previously entered into between
NOA and LICENSEE.

 

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

 

2.15                          “Price
Schedule” means the current version or any future revision of NOA’s schedule of
purchase prices and minimum order quantities for Finished Products and Bulk
Goods.

 

2.16                          “Printed
Materials” means the Game Card label and title sheet, user instruction booklet,
poster, warranty card and LICENSEE inserts incorporating the Artwork, together
with a precautions booklet as specified by NOA.

 

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

 

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

 

2.19                          “Security
Technology” means, without limitation, any security signature, bios, data
scrambling, password, hardware security apparatus, watermark, hologram,
encryption, Digital Rights management system, copyright management information
system or any feature that facilitates or limits compatibility with other
hardware, software, or accessories or other peripherals outside of the
Territory or on a different video game system.

 

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

 

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

 

2

 

3.                                      GRANT
OF LICENSE; LICENSEE RESTRICTIONS

 

3.1                                 Limited
License Grant.  For the Term and for
the Territory, NOA grants to LICENSEE a nonexclusive, nontransferable, limited
license to use the Intellectual Property Rights to develop, and have developed
(subject to Section 4.2 below), Games for manufacture, advertising,
marketing and sale as Licensed Products, subject to the terms and conditions of
this Agreement.  Except as permitted
under a separate written authorization from Nintendo, LICENSEE shall not use
the Intellectual Property Rights for any other purpose.

 

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

 

3.3                                 LICENSEE
Restrictions and Prohibitions. 
LICENSEE is not licensed to, and covenants that, without the express
written consent of Nintendo, it will not at any time, directly or indirectly,
do or cause to be done any of the following:

 

(a)                                  grant
access to, distribute, transmit or broadcast a Game by electronic means or by
any other means known or hereafter devised, including, without limitation, by
wireless, cable, fiber optic, telephone lines, microwave, radiowave, computer
or other device network, except (a) as a part of wireless Game play on and
among Nintendo DS systems, (b) for the purpose of facilitating Game
development under the terms of this Agreement, or (c) as otherwise
approved in writing by Nintendo. LICENSEE shall use reasonable security
measures, customary within the high technology industry, to reduce the risk of
unauthorized interception or retransmission of any Game transmission. No right
of retransmission shall attach to any authorized transmission of a Game,

 

(b)                                 modify,
install or operate a Game on any server or other device for the purpose of or
resulting in the rental, lease, loan or sale of rights of access to the Game,

 

(c)                                  emulate,
interoperate, interface or link a Game for operation or use with any hardware
platform, software program, accessory, computer language, computer environment,
chip instruction set, consumer electronics device, telephone, cellphone, PDA,
or other device, including for purposes of data interchange, password usage or
interactive video game play, other than a Nintendo DS system, an application
approved by Nintendo, or the Development Tools,

 

(d)                                 emulate
any past, current or future Nintendo brand video game system, or any portion
thereof, in software or hardware or any combination thereof,

 

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

 

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

 

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

 

* Confidential portion
omitted and filed separately with the Securities and Exchange Commission.

 

3

 

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

 

(i)                                     Reverse Engineer or assist in the Reverse
Engineering of all or any part of the Nintendo DS system, including the
hardware or software (whether embedded or otherwise), the Development Tools or
the Security Technology.

 

****

 

3.4                                 No
Free-Riding; No Co-Publishing Arrangements. 
To protect Nintendo’s valuable Intellectual Property Rights, to prevent
the dilution of Nintendo’s trademarks and to preclude free-riding by third
parties on the goodwill associated with Nintendo’s trademarks, the license
granted under this Agreement is limited to LICENSEE and may not be delegated or
contracted out for the benefit of a third party, or to a division, affiliate,
or subsidiary of LICENSEE.  This
Agreement, together with all submissions, representations, undertakings and
approvals contemplated of LICENSEE by this Agreement, is and shall remain the
right and obligation only of LICENSEE. 
All Printed Materials and Marketing Materials for a Game shall
prominently and accurately identify LICENSEE as NOA’s licensee.  NOA does not permit the designation or
identification of any third party co-publisher for a Game on any Licensed
Product Game Card case or Game Card label, however, LICENSEE may identify a
third party as a co-publisher, licensor, developer or other partner of LICENSEE
in those Printed Materials (other than the Game Card label), Marketing
Materials or Game credits, as authorized under the Guidelines. For purposes of
clarification, LICENSEE’s name, or logo, will appear on the Licensed Product
Game Card case and Game Card label as it appears in the preamble of this
Agreement.

 

3.5                                 Development
Tools.  Nintendo may lease, loan or
sell Development Tools to LICENSEE to assist in the development of Games under
this Agreement.  Ownership and use of any
Development Tools provided to LICENSEE by Nintendo shall be subject to the
terms of this Agreement and any separate license or purchase agreement required
by Nintendo.  LICENSEE acknowledges the
exclusive interest of Nintendo in and to the Proprietary Rights associated with
the Development Tools.  LICENSEE’s use of
the Development Tools shall not create any right, title or interest of LICENSEE
therein.  LICENSEE shall not, directly or
indirectly, (a) use the Development Tools for any purpose except the
design and development of Games under this Agreement, (b) reproduce or
create derivatives of the Development Tools, except in association with the
development of Games under this Agreement, (c) Reverse Engineer the
Development Tools, or (d) without NOA’s prior written approval, sell,
lease, assign, lend, license, encumber or otherwise transfer the Development
Tools.  Any tools developed or derived by
LICENSEE as a result of a study of the performance, design or operation of the
Development Tools shall be considered derivative works of the Intellectual
Property Rights and shall belong to Nintendo, but may be retained and utilized
by LICENSEE in connection with this Agreement. 
In no event shall LICENSEE (i) seek, claim or file for any patent,
copyright or other Proprietary Right with regard to any such derivative work, (ii) make
available any such derivative work to any third party, or (iii) use any
such derivative work except in connection with the design and development of
Games under this Agreement.

 

4.                                      SUBMISSION
OF GAME AND ARTWORK FOR APPROVAL

 

4.1                                 Development
and Sale of the Games.  LICENSEE may
develop, or have developed (subject to Section 4.2 below), Games and have
manufactured, advertise, market and sell Licensed Products for play on the
Nintendo DS system only in accordance with this Agreement.

 

4.2                                 Third
Party Developers.  LICENSEE shall not
disclose the Confidential Information (as defined in Section 8 below), the
Guidelines or the Intellectual Property Rights to any Independent Contractor,
nor permit any Independent Contractor to perform or assist in development work
for a Game, unless and until such Independent Contractor has been approved by
NOA and has executed a written confidentiality agreement with NOA relating to
the Nintendo DS system. ****

 

* Confidential portion
omitted and filed separately with the Securities and Exchange Commission.

 

4

 

4.3                                 Delivery
of Completed Game.  Upon completion
of a Game, LICENSEE shall deliver a prototype of the Game to NOA in a format
specified in the Guidelines, together with written user instructions, a
complete description of any security holes, backdoors, time bombs, cheats, “easter
eggs” or other hidden features or characters in the Game ****, and a complete
screen text script.  NOA shall promptly
evaluate the Game with regard to its technical compatibility with and
error-free operation on the Nintendo DS system. 
LICENSEE is responsible for ensuring that the Game and any other content
to be included on the Game Card complies with the Advertising Code of Conduct
of the Entertainment Software Ratings Board (“ESRB”) and that the Game has been
rated EC, E, M or T by the ESRB.  LICENSEE
shall provide NOA with a related certificate of rating for the Game from the
ESRB.

 

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

 

4.5                                 Submission
of Artwork.  Upon submission of a
completed Game to NOA, LICENSEE shall prepare and submit to NOA the Artwork for
the proposed Licensed Product.  Within
seven (7) business days of receipt, NOA shall approve or disapprove the
Artwork ****.  If any Artwork is
disapproved, NOA shall specify in writing the reasons for such disapproval and
state what corrections or improvements are necessary ****.  After making the necessary corrections or
improvements, LICENSEE shall submit revised Artwork to NOA for approval.  NOA shall not unreasonably withhold or delay
its approval of any Artwork.  The
approval of the Artwork by NOA shall not relieve LICENSEE of its sole
responsibility for the development and quality of the Artwork or in any way
create any warranty for the Artwork or any Licensed Product by NOA.

 

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

 

5.                                      ORDER
PROCESS, PURCHASE PRICE, PAYMENT AND DELIVERY 

 

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

 

5.2                                 Purchase
Price and Minimum Order Quantities. 
The purchase price and minimum order quantities for Finished Products
and Bulk Goods shall be set forth in NOA’s then current written Price
Schedule.  The purchase price includes
the cost of manufacturing together with a royalty for the use of the
Intellectual Property Rights.  No taxes, duties,
import fees or other tariffs related to the development, manufacture, import,
marketing or sale of the Licensed Products are included in the purchase price
and all such taxes are the responsibility of LICENSEE (except for taxes imposed
on NOA’s income).  The Price Schedule is
subject to change by NOA at any time, provided, however, that any price
increase shall be applicable only to purchase orders submitted, paid for, and
accepted by NOA after the effective date of the price increase.

 

* Confidential portion
omitted and filed separately with the Securities and Exchange Commission.

 

5

 

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

 

5.4                                 Shipment
and Delivery.  All Licensed Products
shall be delivered to LICENSEE EXW Ex works Japan (as defined by Incoterms
2000), or such other delivery point specified by NOA, with shipment at LICENSEE’s
direction and expense.  Orders may be
delivered by NOA in partial shipments, each directed to not more than two (2) destinations
designated by LICENSEE within the Territory. 
Title to the Licensed Products shall vest in accordance with the terms
of the applicable letter of credit or, in the absence thereof, at the point of
delivery.

 

6.                                      MANUFACTURE
OF THE LICENSED PRODUCT

 

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

 

6.2                                 Manufacture
of the Licensed Products.  Upon
acceptance by NOA of a purchase order for an approved Licensed Product title
and payment as provided for under Section 5.3 herein, NOA will arrange for
the manufacture of Finished Product or Bulk Goods, as specified in LICENSEE’s
purchase order.

 

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

 

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

 

6.5                                 Prior
Approval of LICENSEE’s Independent Contractor.  Prior to the placement of a purchase order
for Bulk Goods, LICENSEE shall obtain NOA’s approval of any Independent
Contractors selected to perform LICENSEE’s production and assembly
operations.  LICENSEE shall provide NOA
with the names, addresses and all business documentation reasonably requested
by NOA for such Independent Contractors. 
NOA may, prior to approval and at reasonable intervals thereafter, (a) require
submission of additional business or financial information regarding the
Independent Contractors, (b) inspect the facilities of the Independent
Contractors ****, and (c) be present to supervise any work on the Licensed
Products to be done by any Independent Contractors.  If at any time NOA **** deems an Independent
Contractor to be unable to meet quality, security or performance standards
reasonably established by NOA, NOA may refuse to grant its approval or withdraw
its approval upon Notice to LICENSEE. 
LICENSEE may not proceed with the production of the Printed Materials or
assembly of the Licensed Product by such Independent Contractor until NOA’s
concerns have been resolved to its satisfaction or until LICENSEE has selected
and received NOA’s approval of another Independent Contractor. NOA may
establish preferred or required supply sources for the Game Card case, or
select components of the Printed Materials, which sources shall be deemed
pre-approved in accordance with this Section 6.5.  LICENSEE shall comply with all **** sourcing
requirements established by NOA.

 

* Confidential portion
omitted and filed separately with the Securities and Exchange Commission.

 

6

 

6.6                                 NOA
Inserts for Bulk Goods.  NOA, at its
option and at its sole expense, may provide LICENSEE with NOA produced
promotional materials (as provided for at Section 7.7(a) herein),
that LICENSEE agrees to include in the assembly of the Licensed Products.

 

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

 

6.8                                 Retention
of Sample Licensed Products by Nintendo. 
Nintendo may, at its own expense, manufacture reasonable quantities of
the Game Cards or the Licensed Products to be used for archival purposes, legal
proceedings against infringers of the Intellectual Property Rights or for other
lawful purposes (but not for resale).

 

6.9                                 Retention
of User Instruction Booklet by NOA. 
For use in training consumer support personnel, product orientation and
other consumer support activities, as well as for archival purposes, NOA may (a) retain
(or request that LICENSEE provide to NOA) a reasonable number of copies of the
user instruction booklet for each Licensed Product, and (b) make a
reasonable number of copies of the user instruction booklet for each Licensed
Product.

 

7.                                      MARKETING
AND ADVERTISING

 

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

 

7.2                                 No
Bundling.  To protect Nintendo’s
valuable Intellectual Property Rights, to prevent the dilution of Nintendo’s
trademarks and to preclude free-riding by non-licensed products on the goodwill
associated with Nintendo’s trademarks, LICENSEE shall not market or distribute
any Licensed Products that are bundled with (a) any peripheral designed
for use with the Nintendo DS system that has not been licensed or approved in
writing by NOA, or (b) any other product or service where Nintendo’s
sponsorship, association, approval or endorsement might be suggested by the
bundling of the products or services, ****.

 

7.3                                 Warranty
and Repair.  LICENSEE shall provide
the original consumer with a minimum ninety (90) day limited warranty on all
Licensed Products.  LICENSEE shall also
provide reasonable product service, including out-of-warranty service, for all
Licensed Products; provided that the exact nature of such warranties and
services shall be determined by LICENSEE in its discretion.

 

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

 

* Confidential portion
omitted and filed separately with the Securities and Exchange Commission.

 

7

 

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

 

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

 

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

 

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

 

8.                                      CONFIDENTIAL
INFORMATION

 

8.1                                 Definition.  “Confidential Information” means information
provided to LICENSEE by Nintendo or any third party working with Nintendo
relating to the hardware and software for the Nintendo DS 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 that was in the public domain prior to LICENSEE’s receipt of
the same hereunder, or that subsequently becomes part of the public domain by
publication or otherwise, except by LICENSEE’s wrongful act or omission, (ii) data
and information that LICENSEE can demonstrate, through written records kept in
the ordinary course of business, was in its possession without restriction on
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 that is still in force, and (iii) data and information
that 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 **** business days prior to such disclosure, or such
lesser period if required.  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.

 

* Confidential portion
omitted and filed separately with the Securities and Exchange Commission.

 

8

 

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 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
commercial 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, (d) in response to
lawful process, subject to a written protective order approved in advance by
NOA, **** and (e) to a third party proposing to enter into a business
transaction with LICENSEE or with NOA, but only to the extent reasonably
necessary for carrying out the proposed transaction and only under terms of
mutual confidentiality.

 

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

 

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

 

9.                                      REPRESENTATIONS
AND WARRANTIES

 

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

 

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

 

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

 

* Confidential portion
omitted and filed separately with the Securities and Exchange Commission.

 

9

 

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

 

9.2                                 NOA’s
Representations and Warranties.  NOA
represents and warrants that:

 

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

 

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

 

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

 

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

 

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

 

10.                               INDEMNIFICATION

 

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

 

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

 

* Confidential portion
omitted and filed separately with the Securities and Exchange Commission.

 

10

 

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

 

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

 

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

 

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

 

10.2                           LICENSEE’s
Insurance.  LICENSEE shall, at its
own expense, obtain a commercial general liability insurance policy (including
coverage for advertising injury and product liability claims) from an insurance
company rated at least B+ by A.M. Best. 
Such policy of insurance shall be in an amount of not less than **** on
a per occurrence basis (not claims made) **** and shall provide for adequate
protection against any suits, claims, loss or damage arising out of or relating
to the Licensed Products.  Such policy
shall name NOA and Nintendo Co., Ltd. as additional insureds and shall specify
that it may not be canceled without thirty (30) days’ prior written Notice to
NOA.  A Certificate of Insurance shall be
provided to NOA’s Licensing Department not later than the date of the initial
order of Licensed Products under this Agreement.  If LICENSEE fails to maintain such insurance
at any time during the Term and for a period of two (2) years thereafter, ****,
NOA, in its sole discretion may 1) terminate this Agreement in accordance with Section 13.2
herein; or 2) secure comparable insurance for the benefit of NOA and Nintendo
Co., Ltd. only, and not for LICENSEE, at LICENSEE’s expense.

 

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

 

11.                               PROTECTION
OF PROPRIETARY RIGHTS

 

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

 

11.2                           Actions
by LICENSEE.  LICENSEE, without the
consent of NOA, may bring any action or proceeding relating to an infringement
or potential infringement of LICENSEE’s Proprietary Rights in the Licensed
Products.  LICENSEE will have the right
to retain all proceeds it may derive from any recovery in connection with such
actions.

 

* Confidential portion
omitted and filed separately with the Securities and Exchange Commission.

 

11

 

11.3                           Actions
by NOA.  NOA, without the consent of
LICENSEE, may bring any action or proceeding relating to an infringement or
potential infringement of the Intellectual Property Rights.  NOA will have the right to retain all
proceeds it may derive from any recovery in connection with such actions.

 

12.                               ASSIGNMENT

 

12.1                           Definition.  “Assignment” means every type and form of
assignment, transfer, sale, sublicense, delegation, encumbrance, pledge and/or
hypothecation of LICENSEE’s rights or obligations under this Agreement, including,
but not limited to, (a) a voluntary assignment, transfer, sale,
sublicense, delegation, encumbrance, pledge and/or hypothecation by LICENSEE of
all or any portion of its rights or obligations under this Agreement, (b) the
assignment, transfer, sale, sublicense, delegation, encumbrance, pledge and/or
hypothecation of all or any portion of LICENSEE’s rights or obligations under
this Agreement to or by LICENSEE’s trustee in bankruptcy, receiver, or other
individual or entity appointed to control or direct the business and affairs of
LICENSEE, (c) an involuntary assignment, transfer, sale, sublicense,
delegation, encumbrance, pledge or hypothecation of all or a portion of
LICENSEE’s rights or obligations under this Agreement, including but not
limited to a foreclosure by a third party upon assets of LICENSEE, (d) the
merger or consolidation of LICENSEE if LICENSEE is a corporation, and (e) any
other means or method whereby rights or obligations of LICENSEE under this
Agreement are sold, assigned or transferred to another individual or entity for
any reason.  Assignment also includes the
sale, assignment, transfer or other event affecting a change in the controlling
interest of LICENSEE, whether by sale, transfer or assignment of shares in
LICENSEE, or by sale, transfer or assignment of partnership interests in
LICENSEE, or otherwise.

 

12.2                           No
Assignment by LICENSEE.  This
Agreement and the subject matter hereof are 
personal to LICENSEE.  No
Assignment of LICENSEE’s rights or obligations hereunder shall be valid or
effective without NOA’s prior written consent, ****.  In the event of an attempted Assignment in
violation of this provision, NOA shall have the right at any time, at its sole
option, to immediately terminate this Agreement.  Upon such termination, NOA shall have no
further obligation under this Agreement to LICENSEE or to LICENSEE’s intended
or purported assignee.

 

12.3                           Proposed
Assignment.  Prior to any proposed
Assignment of this Agreement, LICENSEE shall give NOA not less than thirty (30)
days prior written Notice thereof, which Notice shall disclose the name of the
proposed assignee, the proposed effective date of the Assignment and the nature
and extent of the rights and obligations that LICENSEE proposes to assign.  Unless written consent is given by NOA to a
proposed Assignment ****, any attempted or purported Assignment shall be deemed
disapproved and NOA shall have the unqualified right, in its sole discretion,
to terminate this Agreement at any time. 
Upon termination, NOA shall have no further obligation under this
Agreement to LICENSEE or to LICENSEE’s intended or purported assignee.

 

12.4                           LICENSEE’s
Obligation of Non-Disclosure. 
LICENSEE shall not (a) disclose Nintendo’s Confidential Information
to any proposed assignee of LICENSEE, or (b) permit access to Nintendo’s
Confidential Information by any proposed assignee or other third party, without
the prior written consent of NOA to such disclosure.

 

13.                               TERM
AND TERMINATION

 

13.1                           Term.  This Agreement shall commence on the
Effective Date and shall continue for the Term, unless earlier terminated as
provided for herein, or extended by a written amendment to this Agreement.

 

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

 

* Confidential portion
omitted and filed separately with the Securities and Exchange Commission.

 

12

 

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

 

13.4                           Termination
Other Than by Breach.  Upon (a) the
expiration of this Agreement, (b) its termination other than by LICENSEE’s
breach, or (c) termination of this Agreement by NOA after one hundred
twenty days (120) Notice to LICENSEE in the event that LICENSEE has developed,
marketed, or sold a product that infringes any intellectual property rights of
NOA or its parent company, Nintendo Co., Ltd., anywhere in the world (provided
that if the parties are able to resolve such alleged infringement within such
120 day period, such termination shall not take effect), LICENSEE shall have a
period of one hundred eighty (180) days to sell any unsold Licensed Products in
inventory or in process.  All Licensed
Products in LICENSEE’s control following the expiration of such sell-off period
shall be destroyed by LICENSEE within ten (10) days and proof of such
destruction (certified by an officer of LICENSEE) shall be provided to NOA.

 

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

 

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

 

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

 

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

 

14.                               GENERAL
PROVISIONS

 

14.1                           Export
Control.  LICENSEE agrees to comply
with the export laws and regulations of the United States and any other country
with jurisdiction over the Licensed Products, Confidential Information,
Intellectual Property Rights, or Development Tools of either party.

 

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

 

13

 

right to allocate such
resources among itself and its licensees, ****.

 

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

 

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

 

14.5                           Survival.  In addition to those rights specified elsewhere in this Agreement that
may reasonably be interpreted or construed as surviving, the rights and
obligations set forth in Sections 3, 8, 9, 10, 13 and 14 shall survive any
expiration or termination of this Agreement to the degree necessary to permit
their complete fulfilment or discharge.

 

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

 

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

 

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

 

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

 

* Confidential portion
omitted and filed separately with the Securities and Exchange Commission.

 

14

 

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

 

	
  NOA:

  	
  LICENSEE:

  
	
  NINTENDO
  OF AMERICA INC.

  	
  THQ
  INC.

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
  James R.
  Cannataro

  	
   

  	
  Name:

  	
   

  	
   

  
	
  Title:

  	
  Executive VP,
  Administration

  	
   

  	
  Title:

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
										

 

15

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