Document:

Exhibit 10.1

Exhibit 10.1

CONTRACT PURCHASE AGREEMENT

This Contract Purchase Agreement is entered into as of September 13, 2011 by and between World
Energy Solutions, Inc., a Delaware corporation (the “Buyer”), and Co-eXprise, Inc., a
Delaware corporation (the “Seller”).

This Agreement contemplates a transaction in which the Buyer will purchase certain contracts
from the Seller and perform the Seller’s obligations under those contracts.

Upon and subject to the terms and conditions of this Agreement, and in consideration of the
representations, warranties and covenants in this Agreement contained, the Parties agree as follows
(capitalized terms used in this Agreement will have the meanings ascribed to them in Article IX):

ARTICLE I

THE CONTRACT PURCHASE

1.1 Purchase and Sale of Contracts. The Buyer will purchase the Assigned Contracts
listed on Schedule 1.1 from the Seller, and the Seller will sell, assign and deliver all of
its right, title and interest in the Assigned Contracts to the Buyer, for the consideration
specified in Section 1.3.

1.2 Assumption of Obligations. The Buyer will assume and become responsible for, from
and after the Closing, only the Assumed Obligations.

1.3 Purchase Price. The Purchase Price to be paid by the Buyer for the Assigned
Contracts will consist of $4,000,000 in cash.

1.4 The Closing.

(a) The Closing will take place remotely concurrently with the execution and delivery of this
Agreement on the Closing Date. All transactions at the Closing will be deemed to take place
simultaneously, and no transaction will be deemed to have been completed and no documents or
certificates will be deemed to have been delivered until all other transactions are completed and
all other documents and certificates are delivered.

(b) At the Closing:

(a) the Seller will deliver to the Buyer:

(1) an assignment and assumption agreement, substantially the form of the agreement attached
as Exhibit A, and such other instruments of conveyance as the Buyer may reasonably request
in order to effect the sale, transfer, conveyance and assignment to the Buyer of valid ownership of
the Assigned Contracts;

(2) copies of all of the waivers, permits, consents, approvals, authorizations, registrations,
filings and notices, which are required on the part of the Seller;

 

 

 

(3) documents evidencing the release or termination of all Security Interests on the Assigned
Contracts, and copies of filed UCC termination statements with respect to all UCC financing
statements evidencing Security Interests; and

(4) such other certificates and instruments (including certificates of good standing of the
Seller in its jurisdiction of organization and the various foreign jurisdictions in which it is
qualified, certificates of registration as an energy broker and/or aggregator in those
jurisdictions, and a certificate as to the incumbency of officers and the adoption of authorizing
resolutions) as Buyer will reasonably request in connection with the Closing.

(c) the Buyer will deliver to the Seller:

(1) such certificates and instruments (including a certificate of good standing of the Buyer
in its jurisdiction of organization and a certificate as to the incumbency of officers and the
adoption of authorizing resolutions) as Seller will reasonably request in connection with the
Closing; and

(2) the Purchase Price, by (i) wire transfer or other delivery of $3,775,000 in immediately
available funds to an account designated by the Seller, (ii) deposit of $150,000 in escrow pursuant
to the Escrow Agreement attached as Exhibit B pending receipt of a consent by Allegheny
County to the assignment of the Marketplace Sourcing Agreement: Energy between the Seller and
Allegheny County, and (iii) deposit of $75,000 in escrow pursuant to the Escrow Agreement and
subject to the terms of Section 1.6(b).

1.5 Allocation. The Buyer and the Seller agree to allocate the Purchase Price among
the Assigned Contracts and the non-competition covenants set forth in Section 6.3 for all purposes
(including financial accounting and tax purposes) in accordance with the allocation schedule
attached as Schedule 1.5. Buyer and Seller agree to use the allocations determined
pursuant to this Section 1.5 for all tax purposes, including without limitation, those matters
subject to Section 1060 of the Code, and the Treasury regulations promulgated thereunder.

1.6 Post Closing Reimbursement and Adjustment.

(a) Reimbursement. The Seller will reimburse the Buyer in an amount equal to $129,775
in respect of invoices generated from September 1, 2011 to September 30, 2011. Seller shall remit
such amount to Buyer by October 31, 2011.

(b) True-Up.

(i) The calculation of the Purchase Price was based, in part, on backlog associated with the
Supplier Agreements calculated as set forth on Schedule 1.6 (“Backlog”). Backlog
relates to contracts in force as of September 1, 2011 representing transactions between energy
suppliers and end users of energy (customers) as outlined on Schedule 1.6 related to
commodity brokerage assuming end users consume energy at projected levels. Within thirty (30) days
following October 31, 2012 (the “True Up Date”), Buyer shall prepare and deliver to Seller a final
determination of the Backlog as of the True Up Date (“Final Backlog”) and, based thereon,
calculate the amount payable, if any, pursuant to this Section
1.6(b) (the “True Up Amount”), accompanied by such schedules as it has prepared to
support each such determination. Seller shall be entitled to review any working papers, trial
balances and similar materials relating to such statements prepared by or on behalf of Buyer.

 

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(ii) Within thirty (30) days after receipt of such statements and schedules (the
“Objection Period”), Seller must notify Buyer of any objections to Buyer’s determinations
of the Final Backlog and True Up Amount, providing in reasonable detail the basis for such
objections. In the event that Seller does not timely or properly notify Buyer within the Objection
Period that Seller has any objections to such statements or Buyer’s calculation of the final True
Up Amount, then the Final Backlog and True Up Amount shall be final and binding hereunder. In the
event that Seller does notify Buyer, within the Objection Period, that Seller has any such
objection, then Buyer and Seller shall attempt to resolve such disputed items. In the event Seller
and Buyer are unable to resolve the disputed items within thirty (30) days after receipt by Buyer
of Seller’s notice of dispute, the parties’ respective independent certified public accountants
shall attempt to resolve the disputed items. In the event that such accounting firms are unable to
resolve such disputed items within sixty (60) days of Seller’s notice of dispute, such disputed
items shall be referred to such independent accounting firm as mutually agreed upon by Buyer and
Seller or, in the absence of such agreement such independent accounting firm as Seller and Buyer’s
respective accounting firms jointly appoint to finally resolve such disputed items (provided that
such firm has not within the preceding thirty-six (36) months had a, and does not have a current or
prospective, business relationship with Buyer or Seller, or any of their respective Affiliates.
The determination of such accounting firm shall be made as promptly as possible and shall be final
and binding upon the parties absent demonstrable error acknowledged by such accounting firm.
Seller and Buyer each shall be permitted to submit such data and information to such accounting
firm as such party deems appropriate. The parties shall share responsibility for the
out-of-pocket expenses and fees incurred in connection with resolving such disputed items as
follows: (A) if the accounting firm resolves the objections substantially in favor of Buyer’s
position, Seller will be responsible for all of the fees and expenses of the accounting firm, (B)
if the accounting firm resolves the objections substantially in favor of Seller’s position, Buyer
will be responsible for all of the fees and expenses of the accounting firm; and (C) if the
accounting firm neither resolves the objections in favor of Buyer’s position nor resolves the
objections in favor of the Seller’s position, the fees and expenses of the accounting firm shall be
allocated between, and paid fifty percent (50%) by Buyer and fifty percent (50%) by Seller.

(iii) If the actual Backlog received by the Buyer for the period beginning on October 1, 2011
and ending on September 30, 2012 is at least 95% but not more than 105% of the expected Backlog as
reflected in Schedule 1.6, then the $75,000 deposited in escrow pursuant to Section
1.4(c)(2)(iii) will be released to Seller. For example: total Backlog from October 1, 2011 through
September 30, 2012 is represented to be $1,483,545. If actual cash received from the customers
listed on Schedule 1.6 for contracts in force as of the Closing Date is equal to or greater than
$1,409,367 but less than $1,557,722, then the $75,000 deposited in escrow would be released to
Seller. If actual Backlog received is less than 95% of expected Backlog, then the Seller will be
responsible to refund the difference between the actual percentage achieved and 95% to the Buyer.
Any amounts to be refunded by Seller to Buyer will first be deducted from the $75,000 amount in
escrow. To the extent the amount to be refunded to Buyer is greater than the amount in escrow,
Seller will make an additional payment to Buyer in
the amount greater than $75,000. If actual Backlog received is greater than 105% of expected
Backlog, then the Buyer will remit the difference to Seller for the amount actual backlog received
exceeds 105%. For example, if actual Backlog received is $1,261,013, or 85% of expected Backlog,
then Seller would owe the Buyer $148,354, representing the difference between the amount actually
collected and $1,409,367. This amount due would first be satisfied out of the amount in escrow of
$75,000, with the Seller making a payment of $73,354 to Buyer for the incremental difference. If
actual Backlog received is $1,631,900, or 110% of expected Backlog, then Buyer would remit to
Seller $74,178, and the full amount in escrow would be released to Seller. All calculations and
amounts due hereunder will be made by November 30, 2012.

 

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1.7 Further Assurances. At any time and from time to time after the Closing, at the
request of the Buyer and without further consideration, the Seller will execute and deliver such
other instruments of sale, transfer, conveyance and assignment and take such actions as the Buyer
may reasonably require to more effectively transfer, convey and assign to the Buyer, and to confirm
the Buyer’s rights to, title in and ownership of, the Assigned Contracts and to place the Buyer in
actual possession and operating control thereof.

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE SELLER

The Seller represents and warrants to the Buyer that, except as set forth in the Disclosure
Schedule, the statements contained in this Article II are true and correct as of the date of this
Agreement. The Disclosure Schedule will be arranged in sections and subsections corresponding to
the numbered and lettered sections and subsections contained in this Article II.

2.1 Organization, Qualification and Corporate Power. The Seller is a corporation duly
organized, validly existing and in corporate and tax good standing under the laws of the State of
Delaware. The Seller is duly qualified to conduct business and is in good standing (including tax
good standing) under the laws of each jurisdiction listed in Section 2.1 of the Disclosure
Schedule, which jurisdictions constitute the only jurisdictions in which the nature of the Seller’s
businesses or the ownership or leasing of its properties requires such qualification. The Seller
has all requisite power and authority to carry on the businesses in which it is engaged and to own
and use the properties owned and used by it. Seller is not in default under or in violation of any
provision of its organizational documents and agreements.

2.2 Authorization of Transaction.

(a) The Seller has all requisite power and authority to execute and deliver this Agreement and
the Ancillary Agreements and to perform its obligations under this Agreement and the Ancillary
Agreements. The execution, delivery, performance, and consummation by the Seller of the
transactions contemplated in this Agreement and the Ancillary Agreements have been duly and validly
authorized by all necessary action on the part of the Seller.

(b) This Agreement has been duly and validly executed and delivered by the Seller and
constitutes, and each of the Ancillary Agreements, upon its execution and delivery by
the Seller will constitute, a valid and binding obligation of the Seller, enforceable against
the Seller in accordance with its terms.

 

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2.3 Noncontravention. Except as disclosed on Section 2.3 of the Disclosure Schedule,
neither the execution and delivery by the Seller of this Agreement or the Ancillary Agreements, nor
the consummation by the Seller of the transactions contemplated hereby or thereby, will (a)
conflict with or violate any provision of the organizational and operational documents of the
Seller, (b) require on the part of the Seller any notice to or filing with, or any permit,
authorization, consent or approval of, any Governmental Entity, (c) conflict with, result in a
breach of, constitute (with or without due notice or lapse of time or both) a default under, result
in the acceleration of obligations under, create in any party the right to terminate, modify or
cancel, or require any notice, consent or waiver under, any contract or instrument to which the
Seller is a party or by which the Seller is bound or to which any of its assets are subject, (d)
result in the imposition of any Security Interest upon any assets of the Seller or (e) violate any
order, writ, injunction, decree, statute, rule or regulation applicable to the Seller or any of its
properties or assets.

2.4 Absence of Certain Changes. Since August 15, 2011, (a) there has occurred no
event or development which, individually or in the aggregate, has had, or could reasonably be
expected to have in the future, a Seller Material Adverse Effect, and (b) the Seller has not:

(a) mortgaged or pledged an Assigned Contract or subjected an Assigned Contract to any
Security Interest;

(b) amended its organizational or operating documents or agreements in a manner that could
have an adverse effect on the transactions contemplated by this Agreement;

(c) entered into, amended, terminated, taken or omitted to take any action that would
constitute a violation of or default under, or waive any rights under, any Assigned Contract; or

(d) instituted or settled any Legal Proceeding with respect to an Assigned Contract.

2.5 Tax Matters.

(a) The Seller has properly filed on a timely basis all material Tax Returns that it is and
was required to file, and all such Tax Returns were true, correct and complete in all material
respects. The Seller has properly paid on a timely basis all material Taxes that were due and
payable, whether or not shown on its Tax Returns, except (i) for Taxes being contested in good
faith for which the Seller has set aside adequate reserves or (ii) where an improper payment or
non-payment would not have a Seller Material Adverse Effect. All material Taxes that the Seller is
or was required by law to withhold or collect have been withheld or collected and, to the extent
required, have been properly paid on a timely basis to the appropriate Governmental Entity except
where failure to withhold or collect would not have a Seller Material Adverse Effect.

 

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(b) No examination or audit of any Tax Return of the Seller by any Governmental Entity is
currently in progress or, to the knowledge of the Seller, threatened or contemplated. The Seller
has not been informed by any jurisdiction that the jurisdiction believes that the Seller was
required to file any Tax Return that was not filed.

(c) The Seller is not a party to any litigation regarding Taxes.

(d) There are no Security Interests with respect to Taxes upon any of the Assigned Contracts,
other than with respect to Taxes not yet due and payable. There is no basis for the assertion of
any claim relating or attributable to Taxes with respect to any of the Assigned Contracts.

2.6 Ownership and Condition of Assigned Contracts. The Seller is the true and lawful
owner, and has good title to, all of the Assigned Contracts, free and clear of all Security
Interests (except for Security Interests in favor of S&T Bank to be released in connection with the
Closing). Upon the Closing, the Buyer will become the true and lawful owner of, and will receive
good title to, the Assigned Contracts, free and clear of all Security Interests.

2.7 Litigation. There is no Legal Proceeding which is pending or has been threatened
in writing against the Seller which (a) seeks either damages or equitable relief in any way
relating to the Business or the Assigned Contracts or (b) in any manner challenges or seeks to
prevent, enjoin, alter or delay the transactions contemplated by this Agreement. There are no
judgments, orders or decrees outstanding against the Seller.

2.8 Employees. Each current or past employee of the Seller that performs services for
the Business has entered into a confidentiality and assignment of inventions agreement with the
Seller, a copy or form of which has previously been delivered to the Buyer. Section 2.8 of the
Disclosure Schedule contains a list of all employees of the Seller that perform services for the
Business who are a party to a non-competition agreement with the Seller. Copies of such agreements
have previously been delivered to the Buyer. Each such agreement referenced in the two preceding
sentences to which the Seller is a party will continue to be legal, valid, binding and enforceable
and in full force and effect immediately following the Closing in accordance with its terms as in
effect immediately prior to the Closing. For the avoidance of doubt, the non-competition
agreements referred to herein are not being assigned to Buyer as a part of this Agreement; rather,
Seller will enforce any such agreement on Buyer’s behalf upon request pursuant to Section 6.3.

2.9 Legal Compliance. The Seller has, at all times, conducted its business in
compliance in all material respects with each applicable material law (including rules and
regulations thereunder) of any federal, state, local or foreign government, or any Governmental
Entity. The Seller has not received any written notice or written communication from any
Governmental Entity alleging noncompliance with any applicable law, rule or regulation.

2.10 Permits. Section 2.10 of the Disclosure Schedule sets forth a list of all
Permits issued to or held by the Seller with respect to the Business. The listed Permits are the
only Permits that are required for the Seller to conduct the Business as presently conducted or as
proposed to be conducted. Each Permit is in full force and effect; the Seller is in compliance in
all material respects with the terms of each Permit; and, to the knowledge of the Seller, no
suspension or cancellation of any Permit is threatened and there is no basis for believing that any
Permit will not be renewable upon expiration. Each Permit is assignable by the Seller to the Buyer
without the consent or approval of any party and will continue in full force and effect immediately
following the Closing.

 

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2.11 Brokers’ Fees. The Seller has no liability or obligation to pay any fees or
commissions to any broker, finder or agent with respect to the transactions contemplated by this
Agreement.

2.12 Disclosure. No representation, warranty, or statement made by the Seller in this
Agreement or the Disclosure Schedule omits to state a material fact necessary to make the
statements in this Agreement or the Disclosure Schedule, in light of the circumstances in which
they were made, not misleading.

2.13 Government Contracts.

(a) The Seller has not been suspended or debarred from bidding on contracts or subcontracts
with any Governmental Entity; to the Knowledge of Seller, no such suspension or debarment has been
threatened or initiated; and the consummation of the transactions contemplated by this Agreement
will not result in any such suspension or debarment of the Seller. The Seller has not been or is
now being audited or investigated by the United States Government Accounting Office, the United
States Department of Defense or any of its agencies, the Defense Contract Audit Agency, the
contracting or auditing function of any Governmental Entity with which it is contracting, the
United States Department of Justice, the Inspector General of the United States Governmental
Entity, or any prime contractor with a Governmental Entity; nor, to the Knowledge of the Seller,
has any such audit or investigation been threatened. To the Knowledge of the Seller, there is no
valid basis for (i) the suspension or debarment of the Seller from bidding on contracts or
subcontracts with any Governmental Entity or (ii) any claim (including any claim for return of
funds to the Government) pursuant to an audit or investigation by any of the entities named in the
foregoing sentence. The Seller has no agreements, contracts or commitments which require it to
obtain or maintain a security clearance with any Governmental Entity.

(b) To the Knowledge of the Seller, no basis exists for any of the following with respect to
any of its contracts or subcontracts with any Governmental Entity: (i) a Termination for Default
(as provided in 48 C.F.R. Ch.1 §52.249-8, 52.249-9 or similar sections), (ii) a Termination for
Convenience (as provided in 48 C.F.R. Ch.1 §52.241-1, 52.249-2 or similar sections), or a Stop Work
Order (as provided in 48 C.F.R. Ch.1 §52.212-13 or similar sections); and the Seller has no reason
to believe that funding may not be provided under any contract or subcontract with any Governmental
Entity in the upcoming federal fiscal year.

 

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ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE BUYER

The Buyer represents and warrants to the Seller that the statements contained in this Article
III are true and correct as of the date of this Agreement.

3.1 Organization and Corporate Power. The Buyer is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware. The Buyer has all
requisite corporate power and authority to carry on the businesses in which it is engaged and to
own and use the properties owned and used by it.

3.2 Authorization of the Transaction. The Buyer has all requisite power and authority
to execute, deliver, and perform its obligations under this Agreement and the Ancillary Agreements.
The execution, delivery, and consummation by the Buyer of the transactions contemplated by this
Agreement and the Ancillary Agreements have been duly and validly authorized by all necessary
corporate action on the part of the Buyer. This Agreement has been duly and validly executed and
delivered by the Buyer and constitutes, and each of the Ancillary Agreements, upon its execution
and delivery by the Buyer will constitute, a valid and binding obligation of the Seller,
enforceable against the Buyer in accordance with its terms.

3.3 Noncontravention. Neither the execution and delivery by the Buyer of this
Agreement or the Ancillary Agreements, nor the consummation by the Buyer of the transactions
contemplated hereby or thereby, will (a) conflict with or violate any provision of the Certificate
of Incorporation or by-laws of the Buyer, (b) require on the part of the Buyer any filing with, or
permit, authorization, consent or approval of, any Governmental Entity, (c) conflict with, result
in breach of, constitute (with or without due notice or lapse of time or both) a default under,
result in the acceleration of obligations under, create in any party any right to terminate, modify
or cancel, or require any notice, consent or waiver under, any contract or instrument to which the
Buyer is a party or by which it is bound or to which any of its assets is subject, or (d) violate
any order, writ, injunction, decree, statute, rule or regulation applicable to the Buyer or any of
its properties or assets.

ARTICLE IV

[RESERVED]

ARTICLE V

[RESERVED]

 

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ARTICLE VI

POST-CLOSING COVENANTS

6.1 Benefits. If (i) any of the Assigned Contracts or other assets or rights
constituting Assigned Contracts may not be assigned and transferred by the Seller to the Buyer (as
a result of either the provisions thereof or applicable law) without the consent or approval of a
third party, (ii) the Seller has not obtained such consent or approval prior to the Closing and
(iii) the Closing occurs nevertheless, then (A) such Assigned Contracts and/or other assets or
rights will not be assigned and transferred by the Seller to the Buyer at the Closing and the Buyer
will not assume the Seller’s liabilities or obligations with respect thereto at the Closing, (B)
the Seller will use its Reasonable Best Efforts to obtain the necessary consent or approval as soon
as practicable after the Closing, (C) upon the obtaining of such consent or approval, the Buyer and
the Seller will execute such further instruments of conveyance (in substantially the form executed
at the Closing) as may be necessary to assign and transfer such Assigned Contracts and/or other
assets or rights (and the associated liabilities and obligations of the Seller) to the Buyer, and
(D) from and after the Closing until the assignment of each such Assigned Contract pursuant to
clause (C) above, Seller and Buyer will cooperate in a commercially reasonable manner to reach a
mutually agreeable arrangement under which Buyer will obtain the full rights and benefits and
assume the obligations of each of the Assigned Contracts until such required consents are obtained.

6.2 Proprietary Information. From and after the Closing, the Seller will not disclose
or make use of (except to pursue its rights, under this Agreement or the Ancillary Agreements), and
will use its Reasonable Best Efforts to cause all of its Affiliates not to disclose or make use of,
any knowledge, information or documents of a confidential nature or not generally known to the
public with respect to Assigned Contracts, the Business or the Buyer or its business (including the
financial information, technical information or data relating to the Seller’s products and names of
customers of the Seller), as well as filings and testimony (if any) presented in the course of any
arbitration of a Dispute pursuant to Section 7.3 and the arbitral award and the Arbitrator’s
reasons therefor relating to the same), except to the extent that such knowledge, information or
documents with respect to Assigned Contracts or the Business (i) are currently used in the retained
businesses of the Seller in a manner that will not breach Section 6.3(a), or (ii) will have become
public knowledge other than through improper disclosure by any of the Seller or an Affiliate. Upon
the request of the Buyer, the Seller will use Reasonable Best Efforts to enforce, for the benefit
of the Buyer, all confidentiality, invention assignments and similar agreements between the Seller
and any other party relating to the Assigned Contracts or the Business that are not Assigned
Contracts.

6.3 Non-Competition.

(a) For a period of five (5) years after the Closing Date, the Seller will not, either
directly or indirectly as an owner, partner, employer, investor, lender, consultant, or otherwise,
(i) design, develop, manufacture, market, sell or license any product or provide any service
anywhere in the world which is competitive with any product designed, developed (or under
development), manufactured, sold or licensed or any service used solely with respect to the
Business by the Seller within the three-year period prior to the Closing Date or (ii) engage
anywhere in the world in any business competitive with the Business as conducted as of the
Closing Date or during the three-year period prior to the Closing Date. Upon the request of
the Buyer, and at Buyer’s sole cost and expense, the Seller will use Reasonable Best Efforts to
enforce, for the benefit of the Buyer, all non-competition and similar agreements between the
Seller and any other party that are not Assigned Contracts. For the avoidance of doubt, the
conduct of the business of the mineral rights division of the Co-eXprise Energy MarketPlace and the
use and sale of software that contains an energy procurement module and services supporting such
module in connection therewith will not be deemed to be competitive with the Business, so long as
energy procurement modules are sold as a part of a multi-module package and not individually.

 

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(b) The Seller agrees that the duration and geographic scope of the non-competition provision
set forth in this Section 6.2 are reasonable. If any court determines that the duration or the
geographic scope, or both, are unreasonable and that such provision is to that extent
unenforceable, the Parties agree that the provision will remain in full force and effect for the
greatest time period and in the greatest area that would not render it unenforceable. The Parties
intend that this non-competition provision will be deemed to be a series of separate covenants, one
for each and every county of each and every state of the United States of America and each and
every political subdivision of each and every country outside the United States of America where
this provision is intended to be effective.

(c) The Seller will, and will use its Reasonable Best Efforts to cause its Affiliates to,
refer all inquiries regarding the Business and the products and services related thereto to the
Buyer.

6.4 Collection of Assigned Contract Revenues.

(a) None of the Supplier Agreements are being assigned to the Buyer. Instead, the Seller will
use its reasonable Best Efforts to collect any and all amounts due the Seller pursuant to the
Supplier Agreements. The Seller will direct all suppliers making payments pursuant to the Supplier
Agreements to remit payment directly to a lockbox that will be established with Silicon Valley Bank
pursuant to a lockbox agreement. The Seller agrees that it will forward promptly to the lockbox
any monies, checks or instruments received by the Seller after the Closing Date (a) pursuant to
Supplier Agreements with respect to the Assigned Contracts and (b) related to items invoiced or to
be invoiced after October 1, 2011, as reflected in Schedule 1.6. The Seller hereby grants
to the Buyer a power of attorney to endorse and cash any checks or instruments payable or endorsed
to the Seller or its order which are received by the Buyer pursuant to Supplier Agreements and
which relate solely to the Assigned Contracts.

(b) If and to the extent that after the Closing Date, Buyer collects revenue pursuant to the
Assigned Contracts that relates to an invoice generated prior to September 1, 2011, Buyer shall
remit such amounts to Seller within thirty days after the end of the calendar month in which such
amounts were received along with such schedules it has prepared to support the determination of
such amount. Seller shall have the right at its expense to examine those financial records of
Buyer as may be reasonably necessary to confirm the accuracy of the schedules provided to Seller
and any calculations or payments made by Buyer hereunder. The Buyer will afford Seller access to
the records during normal business hours, upon reasonable
advance notice given by the Seller, and subject to such reasonable limitations as the Buyer
may impose to delete competitively sensitive or privileged information.

 

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6.5 Availability of Records. Seller and Buyer will each make available to the other
any records in the nonrequesting party’s custody or control for the purpose of preparing any
financial statement or tax return or preparing for or defending any tax-related examination of the
requesting party by any governmental body. The party requesting the records will reimburse the
nonrequesting party for the reasonable out-of-pocket costs and expenses incurred by the
nonrequesting party. The nonrequesting party will afford access to the records during normal
business hours, upon reasonable advance notice given by the requesting party, and subject to such
reasonable limitations as the nonrequesting party may impose to delete competitively sensitive or
privileged information. Notwithstanding the foregoing, in no event shall either party have any
obligation to retain records after the second anniversary of the Closing Date unless an
Indemnification Claim has been made pursuant to Section 7.1 with respect to the subject matter of
such records.

ARTICLE VII

INDEMNIFICATION

7.1 Indemnification by the Seller. The Seller will indemnify Buyer (and its officers,
directors, employees, and Affiliates) in respect of, and hold the Buyer (and its officers,
directors, employees, and Affiliates) harmless against, Damages incurred or suffered by the Buyer
or any Affiliate thereof resulting from, relating to or constituting:

(a) any breach, as of the date of this Agreement or as of the Closing Date, of any
representation or warranty of the Seller contained in this Agreement, any Ancillary Agreement or
any other agreement or instrument furnished by the Seller to the Buyer pursuant to this Agreement;
or

(b) any failure of the Seller to perform any covenant or agreement contained in this
Agreement, any Ancillary Agreement or any agreement or instrument furnished by the Seller to the
Buyer pursuant to this Agreement.

7.2 Indemnification by the Buyer. The Buyer will indemnify the Seller (and its
officers, directors, employees, and Affiliates) in respect of, and hold the Seller (and its
officers, directors, employees, and Affiliates) harmless against, any and all Damages incurred or
suffered by the Seller or any Affiliate resulting from, relating to or constituting:

(a) any breach, as of the date of this Agreement or as of the Closing Date, of any
representation or warranty of the Buyer contained in this Agreement, any Ancillary Agreement or any
other agreement or instrument furnished by the Buyer to the Seller pursuant to this Agreement; or

(b) any failure of the Buyer to perform any covenant or agreement contained in this Agreement,
any Ancillary Agreement or any other agreement or instrument furnished by the Buyer to the Seller
pursuant to this Agreement.

 

- 11 -

 

7.3 Indemnification Claims.

(a) An Indemnified Party will give written notification to the Indemnifying Party of the
commencement of any Third Party Action. Such notification will be given within 20 days after
receipt by the Indemnified Party of notice of such Third Party Action, and will describe in
reasonable detail (to the extent known by the Indemnified Party) the facts constituting the basis
for such Third Party Action and the amount of the claimed damages. No delay or failure on the part
of the Indemnified Party in so notifying the Indemnifying Party will relieve the Indemnifying Party
of any liability or obligation under this Agreement except to the extent of any damage or liability
caused by or arising out of such failure. Within 20 days after delivery of such notification, the
Indemnifying Party may, upon written notice thereof to the Indemnified Party, assume control of the
defense of such Third Party Action with counsel reasonably satisfactory to the Indemnified Party;
provided that (i) the Indemnifying Party may only assume control of such defense if (A) it
acknowledges in writing to the Indemnified Party that any damages, fines, costs or other
liabilities that may be assessed against the Indemnified Party in connection with such Third Party
Action constitute Damages for which the Indemnified Party will be indemnified pursuant to this
Article VII and (B) the amount of damages claimed is less than or equal to the amount of Damages
for which the Indemnifying Party is liable under this Article VII and (ii) the Indemnifying Party
may not assume control of the defense of Third Party Action involving criminal liability or in
which equitable relief is sought against the Indemnified Party. If the Indemnifying Party does
not, or is not permitted under the terms of this Agreement to, so assume control of the defense of
a Third Party Action, the Indemnified Party will control such defense. The Non-controlling Party
may participate in such defense at its own expense. The Controlling Party will keep the
Non-controlling Party advised of the status of such Third Party Action and the defense thereof and
will consider in good faith recommendations made by the Non-controlling Party with respect thereto.
The Non-controlling Party will furnish the Controlling Party with such information as it may have
with respect to such Third Party Action (including copies of any summons, complaint or other
pleading which may have been served on such party and any written claim, demand, invoice, billing
or other document evidencing or asserting the same) and will otherwise cooperate with and assist
the Controlling Party in the defense of such Third Party Action. The fees and expenses of counsel
to the Indemnified Party with respect to a Third Party Action will be considered Damages for
purposes of this Agreement if (i) the Indemnified Party controls the defense of such Third Party
Action pursuant to the terms of this Section 7.3(a) or (ii) the Indemnifying Party assumes control
of such defense and the Indemnified Party reasonably concludes that the Indemnifying Party and the
Indemnified Party have conflicting interests or different defenses available with respect to such
Third Party Action. The Indemnifying Party will not agree to any settlement of, or the entry of
any judgment arising from, any Third Party Action without the prior written consent of the
Indemnified Party, which will not be unreasonably withheld, conditioned or delayed. The
Indemnified Party will not agree to any settlement of, or the entry of any judgment arising from,
any such Third Party Action without the prior written consent of the Indemnifying Party, which will
not be unreasonably withheld, conditioned or delayed.

(b) In order to seek indemnification under this Article VII, an Indemnified Party will deliver
a Claim Notice to the Indemnifying Party.

 

- 12 -

 

(c) Within 20 days after delivery of a Claim Notice, the Indemnifying Party will deliver to
the Indemnified Party a Response, in which the Indemnifying Party will: (i) agree that the
Indemnified Party is entitled to receive all of the Claimed Amount and arrange for immediate
payment of the Claimed Amount to the Indemnified Party by check or by wire transfer, (ii) agree
that the Indemnified Party is entitled to receive the Agreed Amount (if during the 20-day period
following the delivery of a Claim Notice the Indemnifying Party and the Indemnified Party have
negotiated an Agreed Amount) and arrange for immediate payment of the Agreed Amount to the
Indemnified Party by check or by wire transfer; or (iii) dispute that the Indemnified Party is
entitled to receive any of the Claimed Amount.

(d) During the 30-day period following the delivery of a Response that reflects a Dispute, the
Indemnifying Party and the Indemnified Party will use good faith efforts to resolve the Dispute.
If the Dispute is not resolved within such 30-day period, the Indemnifying Party and the
Indemnified Party will discuss in good faith the submission of the Dispute to binding arbitration,
and if the Indemnifying Party and the Indemnified Party agree in writing to submit the Dispute to
such arbitration, then the provisions of Section 7.3(e) will become effective with respect to such
Dispute. The provisions of this Section 7.3(d) will not obligate the Indemnifying Party and the
Indemnified Party to submit to arbitration or any other alternative dispute resolution procedure
with respect to any Dispute, and in the absence of an agreement by the Indemnifying Party and the
Indemnified Party to arbitrate any Dispute, such Dispute will be resolved in a state or federal
court sitting in the Commonwealth of Massachusetts, in accordance with Section 10.12.

(e) If, as set forth in Section 7.3(d), the Indemnified Party and the Indemnifying Party agree
to submit any Dispute to binding arbitration, the arbitration will be conducted by the Arbitrator
in accordance with the Commercial Rules in effect from time to time and the following provisions.

(a) If there is a conflict between the Commercial Rules in effect from time to time and the
provisions of this Agreement, the provisions of this Agreement will prevail and be controlling.

(b) The parties will commence the arbitration by jointly filing a written submission with the
office of the AAA having responsibility for matters to be arbitrated in Boston, Massachusetts, in
accordance with Commercial Rule 5 (or any successor provision).

(c) No depositions or other discovery will be conducted in connection with the arbitration.

(d) Not later than 30 days after the conclusion of the arbitration hearing, the Arbitrator
will prepare and distribute to the parties a writing setting forth the arbitral award and the
Arbitrator’s reasons therefor. Any award rendered by the Arbitrator will be final, conclusive and
binding upon the parties, and judgment thereon may be entered and enforced in any court of
competent jurisdiction (subject to Section 10.12), provided that the Arbitrator will have no power
or authority to grant injunctive relief, specific performance or other equitable relief.

 

- 13 -

 

(e) The Arbitrator will have no power or authority, under the Commercial Rules or otherwise,
to (x) modify or disregard any provision of this Agreement, including the provisions of this
Section 7.3(e), or (y) address or resolve any issue not submitted by the parties.

(f) In connection with any arbitration proceeding pursuant to this Agreement, each party will
bear its own costs and expenses, except that the fees and costs of the AAA and the Arbitrator, the
costs and expenses of obtaining the facility where the arbitration hearing is held, and such other
costs and expenses as the Arbitrator may determine to be directly related to the conduct of the
arbitration and appropriately borne jointly by the parties (which will not include any party’s
attorneys’ fees or costs, witness fees (if any), costs of investigation and similar expenses) will
be shared equally by the Indemnified Party and the Indemnifying Party.

(f) Notwithstanding the other provisions of this Section 7.3, if a third party asserts (other
than by means of a lawsuit) that an Indemnified Party is liable to such third party for a monetary
or other obligation which may constitute or result in Damages for which such Indemnified Party may
be entitled to indemnification pursuant to this Article VII, and such Indemnified Party reasonably
determines that it has a valid business reason to fulfill such obligation, then (i) such
Indemnified Party will be entitled to satisfy such obligation, without prior notice to or consent
from the Indemnifying Party, (ii) such Indemnified Party may subsequently make a claim for
indemnification in accordance with the provisions of this Article VII, and (iii) such Indemnified
Party will be reimbursed, in accordance with the provisions of this Article VII, for any such
Damages for which it is entitled to indemnification pursuant to this Article VII (subject to the
right of the Indemnifying Party to dispute the Indemnified Party’s entitlement to indemnification,
or the amount for which it is entitled to indemnification, under the terms of this Article VII).

7.4 Survival of Representations and Warranties. The representations and warranties of
the Parties will survive the Closing of this Agreement. No party will be entitled to assert any
claim against the other party for misrepresentations, or breaches of warranties, under this
Agreement unless the applicable Indemnified Party asserting such claim notifies the Indemnifying
Party in writing of such claim on or prior to the first anniversary of the Closing Date; provided,
that the one-year limitation on claims will not apply to any representation or warranty in this
Agreement or in any Ancillary Agreement, as the case may be, in respect of or pursuant to any of
Sections 2.1, 2.2 and 2.5 (the “Specified Representations”), which will survive without
limitation. The rights to indemnification set forth in this Article VII will not be affected by (i)
any investigation conducted by or on behalf of an Indemnified Party or any knowledge acquired (or
capable of being acquired) by an Indemnified Party, whether before or after the Closing Date, with
respect to the inaccuracy or noncompliance with any representation, warranty, covenant or
obligation which is the subject of indemnification under this Agreement or (ii) any waiver by an
Indemnified Party of any closing condition relating to the accuracy of any representations and
warranties or the performance of or compliance with agreements and covenants.

 

- 14 -

 

7.5 Exclusive Remedy. Except with respect to claims based on fraud, after the
Closing, the rights of the Indemnified Parties under this Article VII will be the exclusive remedy
of the Indemnified Parties with respect to claims resulting from or relating to any
misrepresentation, breach of warranty or failure to perform any covenant or agreement
contained in this Agreement. Notwithstanding the foregoing, neither Seller, on the one hand, nor
Buyer, on the other hand, will have any liabilities under or pursuant to this Agreement for any
misrepresentations or breaches of warranties under this Agreement until such liabilities exceed in
the aggregate One Hundred Seventy-Five Thousand US Dollars (US$175,000) (the “Basket
Amount”), at which time such indemnifying party(ies) will be fully liable for all such
liabilities in excess of the Basket Amount. The maximum aggregate indemnification obligation of
Seller under this Agreement will not, except in the case of fraud or intentional misrepresentation,
exceed (i) an amount equal to 50% of the Purchase Price or (ii) in connection with breaches of the
Specified Representations, the aggregate Purchase Price. In no event will the indemnification
obligations of the Seller under this Agreement exceed one hundred percent (100%) of the Purchase
Price actually received by the Seller.

7.6 Treatment of Indemnity Payments. Any payments made to an Indemnified Party
pursuant to this Article VII will be treated as an adjustment to the Purchase Price for tax
purposes.

ARTICLE VIII

[RESERVED]

ARTICLE IX

DEFINITIONS

For purposes of this Agreement, each of the following terms will have the meaning set forth
below.

“AAA” will mean the American Arbitration Association.

“Affiliate” will mean any affiliate, as defined in Rule 12b-2 under the Securities
Exchange Act of 1934.

“Agreed Amount” will mean part, but not all, of the Claimed Amount, as negotiated and
agreed between the Indemnifying Party and the Indemnified Party in accordance with Section 7.3(c).

“Ancillary Agreements” will mean the bill of sale and other instruments of conveyance
referred to in Section 1.5(b)(iii), and the instrument of assumption and other instruments referred
to in Section 1.5(b)(iv).

“Arbitrator” will mean a single arbitrator selected by the Buyer and the Seller in
accordance with the Commercial Rules.

“Assigned Contracts” will mean the customer contracts listed on Schedule 1.1.

 

- 15 -

 

“Assumed Obligations” will mean all obligations of the Seller arising after the
Closing under the Assigned Contracts, other than any liabilities for any breach, act or omission by
the Seller prior to the Closing under any Assigned Contract.

“Business” means the Seller’s energy procurement division of the Co-eXprise Energy
MarketPlace business. For the avoidance of doubt, the Business will not include Seller’s mineral
rights division of the Co-eXprise Energy MarketPlace business or the software business of
Co-eXprise.

“Buyer” will have the meaning set forth in the first paragraph of this Agreement.

“Claim Notice” will mean written notification which contains (i) a description of the
Damages incurred or reasonably expected to be incurred by the Indemnified Party and the Claimed
Amount of such Damages, to the extent then known, (ii) a statement that the Indemnified Party is
entitled to indemnification under Article VII for such Damages and a reasonable explanation of the
basis therefor, and (iii) a demand for payment in the amount of such Damages.

“Claimed Amount” will mean the amount of any Damages incurred or reasonably expected
to be incurred by the Indemnified Party.

“Closing” will mean the closing of the transactions contemplated by this Agreement.

“Closing Date” will mean September 13, 2011.

“Commercial Rules” will mean the Commercial Arbitration Rules of the AAA.

“Controlling Party” will mean the party controlling the defense of any Third Party
Action.

“Damages” will mean any and all debts, obligations and other liabilities (whether
absolute, accrued, contingent, fixed or otherwise, or whether known or unknown, or due or to become
due or otherwise), diminution in value, monetary damages, fines, fees, penalties, interest
obligations, deficiencies, losses and expenses (including amounts paid in settlement, interest,
court costs, reasonable costs of investigators, reasonable fees and expenses of attorneys,
accountants, financial advisors and other experts, and other reasonable expenses of litigation),
other than those costs and expenses of arbitration of a Dispute which are to be shared equally by
the Indemnified Party and the Indemnifying Party as set forth in Section 7.3(e)(vi).

“Disclosure Schedule” will mean the disclosure schedule provided by the Seller to the
Buyer on the date of this Agreement and accepted in writing by the Buyer.

“Dispute” will mean the dispute resulting if the Indemnifying Party in a Response
disputes its liability for all or part of the Claimed Amount.

“Governmental Entity” will mean any court, arbitrational tribunal, administrative
agency or commission or other governmental or regulatory authority or agency.

 

- 16 -

 

“Indemnified Party” will mean a party entitled, or seeking to assert rights, to
indemnification under Article VII of this Agreement.

“Indemnifying Party” will mean the party from whom indemnification is sought by the
Indemnified Party.

“Known” or “Knowledge” — an individual will be deemed to have Knowledge of
a particular fact or other matter if:

	 	(i)	 	that individual is actually aware of that fact or matter; or

	 	(ii)	 	a prudent individual could be expected to discover or otherwise become aware of
that fact or matter in the course of conducting a reasonably comprehensive
investigation regarding the accuracy of any representation or warranty in this
Agreement.

As it relates to the Seller, “Knowledge” will mean the Knowledge of William Blair, Joseph Funtal,
Greg Anderson, and Nicholas Seitanakis.

“Legal Proceeding” will mean any action, suit, proceeding, claim, arbitration or
investigation before any Governmental Entity or before any arbitrator.

“Non-controlling Party” will mean the party not controlling the defense of any Third
Party Action.

“Ordinary Course of Business” will mean the ordinary course of business consistent
with past custom and practice (including with respect to frequency and amount).

“Parties” will mean the Buyer and the Seller.

“Permits” will mean all permits, broker’s licenses, registrations, certificates,
orders, approvals, franchises, variances and similar rights issued by or obtained from any
Governmental Entity necessary for the Seller to perform under the Assigned Contracts.

“Purchase Price” will mean the purchase price to be paid by the Buyer for the Assigned
Contracts.

“Reasonable Best Efforts” will mean best efforts, to the extent commercially
reasonable.

“Response” will mean a written response containing the information provided for in
Section 7.3(c).

“Security Interest” will mean any mortgage, pledge, security interest, encumbrance,
charge or other lien (whether arising by contract or by operation of law), other than (i)
mechanic’s, materialmen’s, and similar liens, (ii) liens arising under worker’s compensation,
unemployment insurance, social security, retirement, and similar legislation and (iii) liens on
goods in transit incurred pursuant to documentary letters of credit, in each case arising in the
Ordinary Course of Business of the Seller and not material to the Seller.

 

- 17 -

 

“Seller” will have the meaning set forth in the first paragraph of this Agreement.

“Seller Material Adverse Effect” will means any adverse change, event, circumstance or
development with respect to the Seller that, (i) individually or in the aggregate is or would
reasonably be expected to be materially adverse to the Business or the Assigned Contracts, (ii)
does, or would reasonably be expected to, prevent or materially delay the ability of the Seller to
perform its obligations under this Agreement or the Ancillary Agreements, or (iii) does, or would
reasonably be expected to, prevent or materially delay the ability of the Buyer to receive the
benefits of and perform under the Assigned Contracts immediately after the Closing. For the
avoidance of doubt, the parties agree that the terms “material”, “materially” or “materiality” as
used in this Agreement with an initial lower case “m” will have their respective customary and
ordinary meanings, without regard to the meaning ascribed to Seller Material Adverse Effect.

“Supplier Agreements” will mean all of the agreements Seller has with suppliers with
respect to the payment of broker or aggregator fees pursuant to the Assigned Contracts.

“Taxes” will mean any and all taxes, charges, fees, duties, contributions, levies or
other similar assessments or liabilities in the nature of a tax, including, without limitation,
income, gross receipts, corporation, ad valorem, premium, value-added, net worth, capital stock,
capital gains, documentary, recapture, alternative or add-on minimum, disability, estimated,
registration, recording, excise, real property, personal property, sales, use, license, lease,
service, service use, transfer, withholding, employment, unemployment, insurance, social security,
national insurance, business license, business organization, environmental, workers compensation,
payroll, profits, severance, stamp, occupation, windfall profits, customs duties, franchise and
other taxes of any kind whatsoever imposed by the United States of America or any state, local or
foreign government, or any agency or political subdivision thereof, and any interest, fines,
penalties, assessments or additions to tax imposed with respect to such items or any contest or
dispute thereof.

“Tax Returns” will mean any and all reports, returns, declarations, or statements
relating to Taxes, including any schedule or attachment thereto and any related or supporting work
papers or information with respect to any of the foregoing, including any amendment thereof.

“Third Party Action” will mean any suit or proceeding by a person or entity other than
a Party for which indemnification may be sought by a Party under Article VII.

ARTICLE X

MISCELLANEOUS

10.1 Press Releases and Announcements. No Party will issue any press release or
public announcement relating to the subject matter of this Agreement without the prior written
approval of the other Party. However, either Party may make any public disclosure it believes in
good faith is required by applicable law, regulation or stock market rule.

10.2 No Third Party Beneficiaries. This Agreement will not confer any rights or
remedies upon any person other than the Parties and their respective successors and permitted
assigns.

 

- 18 -

 

10.3 Entire Agreement. This Agreement (including the documents referred to in this
Agreement) constitutes the entire agreement between the Parties and, with the exception of the
Confidentiality Agreement dated April 14, 2011 between the Buyer and the Seller, supersedes any
prior understandings, agreements, or representations by or between the Parties, written or oral,
with respect to the subject matter of this Agreement. The Confidentiality Agreement will remain in
effect in accordance with its terms.

10.4 Succession and Assignment. This Agreement will be binding upon and inure to the
benefit of the Parties named in this Agreement and their respective successors and permitted
assigns. The Seller may not assign either this Agreement or any of its rights, interests, or
obligations under this Agreement without the prior written approval of the Buyer. Any attempted
assignment in contravention of this provision will be void.

10.5 Counterparts and Facsimile Signature. This Agreement may be executed in two or
more counterparts, each of which will be deemed an original but all of which together will
constitute one and the same instrument. This Agreement may be executed by facsimile signature or
electronic signature.

10.6 Headings. The section headings contained in this Agreement are inserted for
convenience only and will not affect in any way the meaning or interpretation of this Agreement.

10.7 Notices. All notices, requests, demands, claims, and other communications under
this Agreement will be in writing. Any notice, request, demand, claim, or other communication
under this Agreement will be deemed duly delivered four business days after it is sent by
registered or certified mail, return receipt requested, postage prepaid, or one business day after
it is sent for next business day delivery via a reputable nationwide overnight courier service, in
each case to the intended recipient as set forth below:

	 	 	 
	If to the Seller:

	 	Copy to:
	 
	 	 
	Co-eXprise, Inc.

	 	Schnader, Harrison, Segal & Lewis LLP
	6021 Wallace Road Extension

	 	120 Fifth Avenue
	Suite 300

	 	Suite 270
	Wexford, PA 15090

	 	Pittsburgh, PA 15222
	Attn: General Counsel

	 	Attn: Adam F. Kelson, Esq.
	 
	 	 
	If to the Buyer:

	 	Copy to:
	 
	 	 
	World Energy Solutions, Inc.

	 	Jeffrey L. Donaldson, Esq.
	446 Main Street

	 	Mirick O’Connell
	Worcester, MA 01608

	 	100 Front Street
	Attn: General Counsel

	 	Worcester, MA 01608

Any Party may give any notice, request, demand, claim, or other communication under this
Agreement using any other means (including personal delivery, expedited courier, messenger service,
telecopy, telex, ordinary mail, or electronic mail), but no such notice, request,
demand, claim, or other communication will be deemed to have been duly given unless and until
it actually is received by the party for whom it is intended. Each Party may change the address to
which notices, requests, demands, claims, and other communications under this Agreement are to be
delivered by giving the other Parties notice in the manner set forth in this Agreement.

 

- 19 -

 

10.8 Governing Law. This Agreement (including the validity and applicability of the
arbitration provisions of this Agreement, the conduct of any arbitration of a Dispute, the
enforcement of any arbitral award made under this Agreement and any other questions of arbitration
law or procedure arising under this Agreement) will be governed by and construed in accordance with
the internal laws of the Commonwealth of Massachusetts, without giving effect to any choice or
conflict of law provision or rule (whether of the Commonwealth of Massachusetts or any other
jurisdiction) that would cause the application of laws of any jurisdictions other than those of
the Commonwealth of Massachusetts.

10.9 Amendments and Waivers. The Buyer and the Seller may mutually amend any
provision of this Agreement at any time prior to the Closing. No amendment of any provision of
this Agreement will be valid unless the same will be in writing and signed by each of the Buyer and
the Seller. No waiver by any Party of any right or remedy under this Agreement will be valid
unless the same will be in writing and signed by the Party giving such waiver. No waiver by any
Party with respect to any default, misrepresentation, or breach of warranty or covenant under this
Agreement will be deemed to extend to any prior or subsequent default, misrepresentation, or breach
of warranty or covenant under this Agreement or affect in any way any rights arising by virtue of
any prior or subsequent such occurrence.

10.10 Severability. Any term or provision of this Agreement that is invalid or
unenforceable in any situation in any jurisdiction will not affect the validity or enforceability
of the remaining terms and provisions of this Agreement or the validity or enforceability of the
offending term or provision in any other situation or in any other jurisdiction. If the final
judgment of a court of competent jurisdiction declares that any term or provision of this Agreement
is invalid or unenforceable, the Parties agree that the court making the determination of
invalidity or unenforceability will have the power to limit the term or provision, to delete
specific words or phrases, or to replace any invalid or unenforceable term or provision with a term
or provision that is valid and enforceable and that comes closest to expressing the intention of
the invalid or unenforceable term or provision, and this Agreement will be enforceable as so
modified.

10.11 Expenses. Except as set forth in Article VII, each Party will bear its own
costs and expenses (including legal fees and expenses) incurred in connection with this Agreement
and the transactions contemplated hereby.

10.12 Specific Performance. Each Party acknowledges and agrees that the other Party
would be damaged irreparably in the event any of the provisions of this Agreement (including
Sections 6.1 and 6.2) are not performed in accordance with their specific terms or otherwise are
breached. Accordingly, each Party agrees that each other Party will be entitled to an injunction
or other equitable relief to prevent breaches of the provisions of this Agreement and to enforce
specifically this Agreement and the terms and provisions of this Agreement in any action instituted
in any court of the United States or any state thereof having jurisdiction over the
Parties and the matter, in addition to any other remedy to which it may be entitled, at law or
in equity. Notwithstanding the foregoing, the Parties agree that if a Dispute is submitted to
arbitration in accordance with Section 7.3(d) and Section 7.3(e), then the foregoing provisions of
this Section 10.13 will not apply to such Dispute, and the provisions of Section 7.3(d) and Section
7.3(e) will govern availability of injunctive relief, specific performance or other equitable
relief with respect to such Dispute.

 

- 20 -

 

10.13 Construction.

(a) The language used in this Agreement will be deemed to be the language chosen by the
Parties to express their mutual intent, and no rule of strict construction will be applied against
either Party.

(b) Any reference to any federal, state, local, or foreign statute or law will be deemed also
to refer to all rules and regulations promulgated thereunder, unless the context requires
otherwise.

(c) Any reference to any Article, Section or paragraph will be deemed to refer to an Article,
Section or paragraph of this Agreement, unless the context clearly indicates otherwise.

EXECUTED under seal as of the date first above written.

	 	 	 	 	 	 	 
	 	 	Buyer:	 	 
	 
	 	 	 	 	 	 
	 	 	World Energy Solutions, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James F. Parslow, CFO
 

	 	 
	 
	 	 	 	 	 	 
	 	 	Seller:	 	 
	 
	 	 	 	 	 	 
	 	 	Co-eXprise, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William R. Blair, CEO
 

	 	 

 

- 21 -

 

Exhibits

	 	 	 
	Exhibit A

	 	Assignment and Assumption Agreement
	Exhibit B

	 	Escrow Agreement

Schedules

	 	 	 
	1.1

	 	Assigned Contracts
	1.5

	 	Allocation of Purchase Price
	1.6

	 	Calculation of Guaranteed Revenues
	Article II

	 	Disclosure Schedule

 

- 22 -

 

EXHIBIT A

ASSIGNMENT AND ASSUMPTION OF CONTRACTS

This Assignment and Assumption of Contracts (this “Assignment”) dated as of September 13, 2011
(the “Effective Date”) is by and between Co-eXprise, Inc. (“Assignor”) and World Energy Solutions,
Inc. (“Assignee”).

RECITALS

Assignor, as Seller, and Assignee, as Buyer, are parties to a Contract Purchase Agreement
dated as of September 13, 2011 (the “P&S”). Capitalized terms used but not defined in this
Assignment have the meanings ascribed in the P&S.

Assignor desires to assign all of its right, title and interest in and to all of the Assigned
Contracts set forth on Schedule 1.1 attached to the P&S to Assignee and Assignee desires to acquire
all of Assignor’s right, title and interest in and to the Assigned Contracts.

TERMS OF AGREEMENT

For and in consideration of the recitals set forth above, and the covenants and agreements set
forth below and other valuable consideration, the receipt of which is hereby acknowledged, Assignor
and Assignee agree as follows:

1. Assignment. Assignor hereby assigns, sets over and transfers to Assignee all of
Assignor’s right, title and interest in the Assigned Contracts. Assignor hereby represents that
the Assigned Contracts previously delivered to Assignee are complete, accurate and true copies of
the Assigned Contracts, including all amendments.

2. Assumption. Assignee hereby assumes and agrees to perform, fulfill and observe all
of the covenants, agreements, obligations and liabilities of Assignor under the Assigned Contracts
arising on and after the Effective Date. Assignor agrees to pay, perform, fulfill and observe all
of the covenants, agreements, obligations and liabilities prior to the Effective Date.

3. Terms of the Purchase Agreement. The terms of the P&S are incorporated herein by
this reference. Assignor and Assignee acknowledge and agree that the representations, warranties,
covenants, agreements and indemnities contained in the P&S shall not be superseded hereby but shall
remain in full force and effect to the full extent provided therein, and subject to all limitations
contained in the P&S. In the event of any conflict or inconsistency between the terms of the P&S
and the terms hereof, the terms of the P&S shall govern.

4. Notices. All notices, demands, requests and other communications necessary or
desirable under this Assignment shall be in writing and shall be deemed properly served if sent in
accordance with Section 10.7 of the P&S.

 

 

 

5. Binding Effect. The provisions of this Assignment are binding on and inure to the
benefit of Assignor, its successors and assigns, and Assignee, its successors and assigns.

6. Headings. The section headings used in this Assignment are for reference and
convenience only and shall not be used in the interpretation of this Assignment.

7. Counterparts. This Assignment may be signed in several counterparts, each of which
is an original, but all of which constitute a single instrument.

EXECUTED under seal as of the date first written above.

	 	 	 	 	 
	 	Assignor:

Co-eXprise, Inc.

 	 
	 	By:  	
 	 
	 	 	William Blair, CEO 	 

	 	 	 	 	 
	 	Assignee:

World Energy Solutions, Inc.

 	 
	 	By:  	
 	 
	 	 	James F. Parslow, CFO 	 

 

2

 

Exhibit B

	 	 	 
	

	 	Escrow Agreement

(Single Depositor)

Depositor: World Energy Solutions, Inc.

Beneficiary: Co-eXprise, Inc.

This Escrow Agreement (“Agreement”) is entered into among Silicon Valley Bank (“Escrow Agent”),
having its principal place of business at 3003 Tasman Drive, Santa Clara, CA 95054, Depositor and
Beneficiary, collectively referred to herein as Parties.

Escrow Account #:                                                        

(Assigned upon receipt of signed escrow agreement)

Purpose of Escrow (the Transaction):

(Please provide a brief description of transaction (e.g.) asset purchase agreement dated MM/DD/YY)

Contract purchase agreement dated September 13, 2011, as further described in sections 1.4 (c) (2)
and 1.6 (b) (iii)

Depositor and Beneficiary desire to establish this Agreement for the purpose of facilitating and
regularizing the receipt of monies due, and disbursement of those monies in connection with the
Transaction (as described above). The Escrow Agent will receive funds due and disburse the funds
per instructions described in this Escrow Agreement.

The parties hereby agree as follows:

	1.	 	Appointment of the Escrow Agent. Depositor and Beneficiary do hereby appoint,
constitute and designate Silicon Valley Bank as their Escrow Agent for the purposes set forth
herein, and the Escrow Agent accepts the agency created under this Agreement and agrees to
perform the obligations as stated herein.

	2. 	 	Conflict with Other Agreements. Depositor and Beneficiary agree that this Agreement
supersedes any conflicting terms contained in any other agreement or understanding pertaining
to the monies.

	3.	 	Deliveries to Escrow Agent. The Depositor shall deliver to the Escrow Agent via wire
transfer or book transfer an initial deposit in the sum of $225,000.00. Depositor and
Beneficiary agree that additional funds may be deposited into the Escrow account during the
term of the Escrow agreement. Escrow Agent shall acknowledge receipt of such amount(s) and
agrees to hold and disburse said amount(s) (collectively, the Escrow Amount) in accordance
with the terms and conditions of this Escrow Agreement and for the uses and purposes stated
herein. Such amount(s) shall be delivered into escrow in accordance with the instructions in
Exhibit B.

	4.	 	Investment of Funds. All such funds will be deposited to the Escrow Account, which
shall be a non-interest bearing account.

	5.	 	Responsibilities of Escrow Agent. The duties and responsibilities of the Escrow
Agent shall be those expressly set forth in this Agreement. No implied duties of the Escrow
Agent shall be read into this Agreement and the Escrow Agent shall not be subject to, or
obligated to recognize any other agreement between or direction or instruction of, any or all
of the parties hereto. The Escrow Agent shall also not be responsible for the duties of
Depositor and Beneficiary to each other.

	 
	6. 	 	Disbursements.

6.1 Depositor and Beneficiary agree that from time to time they shall deliver to the Escrow
Agent joint written instructions, substantially in the form of
Exhibit C hereto executed by
both the Depositor and Beneficiary (“Disbursement Instructions”) requesting disbursement of any
or all portion of funds to the Depositor and/or Beneficiary. Escrow Agent shall release
requested amount, less any fees payable in connection with this Escrow, to the Depositor and/or
Beneficiary in accordance with wire instructions contained therein. Depositor and Beneficiary
anticipate all funds will be disbursed by November 30, 2012. Any funds remaining in the
Escrow Account after such date shall be returned to the Depositor.

 

 

 

	 	 	 
	

	 	Escrow Agreement

(Single Depositor)

6.2 Any requests to extend the date noted in Section 6.1 require the written consent of both
Depositor and Beneficiary. Such request is not effective until confirmed in writing by Escrow
Agent.

	7.	 	Fees. The fees of the Escrow Agent for services rendered in connection with this
Escrow Agreement are outlined in Exhibit A. It is the responsibility of the Designated Party
(Exhibit A) to pay the required fees to the Escrow Agent. Any fees not paid by the Designated
Party will be deducted from the Escrow Amount prior to disbursement of the funds.

	8.	 	Instructions and Directions to Agent. The Escrow Agent is authorized, in its sole
discretion, to disregard any and all notices or instructions given by any person or entity,
except notices or instructions as provided for in this Agreement (Disbursement Instructions)
and orders or process of any court entered or issued with or without jurisdiction. If any
property subject hereto is at any time attached, garnished, or levied upon under any court
order, or in case the payment, assignment, transfer, conveyance or delivery of any such
property shall be stayed or enjoined by any court order, or in case any order, judgment, or
decree shall be made or entered by any court affecting such property or any party hereto, then
in any such events, the Escrow Agent is authorized, in its sole discretion, to rely upon and
comply with any such order, writ, judgment or decree with which it is advised by legal counsel
of its own choosing, and if it complies with any such order, writ, judgment or decree it shall
not be liable to any other party hereto or to any other person, firm or corporation by reason
of such compliance even though such order, writ, judgment or decree may be subsequently
reversed, modified, annulled, set aside, or vacated.

	9.	 	Agent’s Right to Rely on Genuineness of Instrument. The Escrow Agent may rely, and
shall be protected in acting or refraining from acting, upon any instrument furnished to it
hereunder and believed by it to be genuine and believed by it to have been signed or presented
by the appropriate party or parties described in this Agreement. The Escrow Agent shall not be
responsible nor liable in any respect on account of the lack of authority, or lack of right of
any such person executing, or delivering or purporting to execute, deposit or deliver any such
document, funds or endorsement of this Agreement or on account of or by reason of forgeries,
or false representations.

	10.	 	Indemnity and Hold Harmless of Bank. Depositor and Beneficiary hereby agree to
indemnify and hold harmless Escrow Agent, its affiliates and their respective directors, officers,
agents and employees (“Indemnified Persons”) against any and all claims, causes of action,
liabilities, lawsuits, demands and damages (each, a “Claim”) arising from this Agreement, including
without limitation, any and all court costs and reasonable attorneys’ fees, in any way related to
or arising out of or in connection with this Agreement or any action taken or not taken pursuant
hereto, including, but not limited to, any Claims arising as a result of Escrow Agent’s adherence
to instructions from Depositor and Beneficiary; provided that no Indemnified Person shall be
entitled to be indemnified to the extent that such Claims result from an Indemnified Person’s gross
negligence or willful misconduct. This provision shall survive the termination of this Agreement.

	11.	 	Disagreements. In the event of any disagreement between the parties and/or any other
person, resulting in an adverse claim or demand being made in connection with this Agreement,
Escrow Agent shall not become liable to the parties for damages or interest for Escrow Agent’s
failure or refusal to comply with conflicting or adverse demands, and Escrow Agent may continue to
refuse to act until the disagreement is resolved by the parties or by the court in which the Escrow
Agent files a request for interpleader.

	12.	 	Relationship of the Parties. Other than the escrow agency described herein, nothing in
this Agreement shall create any other agency or fiduciary relationship between Depositor,
Beneficiary and Escrow Agent.

	13.	 	Waiver. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT OR
ANYWHERE ELSE, DEPOSITOR AND BENEFICIARY EACH WAIVE, AND THEY AGREE THAT THEY SHALL NOT SEEK
FROM ESCROW AGENT UNDER ANY THEORY OF LIABILITY (INCLUDING WITHOUT
LIMITATION ANY THEORY IN TORT), ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES
ARISING IN CONNECTION WITH THIS AGREEMENT.

 

 

 

	 	 	 
	

	 	Escrow Agreement

(Single Depositor)

	14.	 	Jury Trial Waiver. DEPOSITOR, BENEFICIARY AND ESCROW AGENT EACH WAIVE THEIR RIGHT TO A
JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, OR ANY
CONTEMPLATED TRANSACTION HEREIN, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS.
THIS WAIVER IS A MATERIAL INDUCEMENT FOR ALL PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS
REVIEWED THIS WAIVER WITH ITS COUNSEL.

	 
	15.	 	Governing Law and Jurisdiction. The parties hereto agree that this Agreement shall be
governed exclusively under and in accordance with the laws of the State of California. All parties
hereto each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara
County, California.

	 
	16.	 	Attorneys Fees, Costs and Expenses. In any action or proceeding between Escrow Agent
and any other party to this Agreement, the prevailing party will be entitled to recover its
reasonable attorneys fees and other reasonable costs and expenses incurred, in addition to any
other relief to which it may be entitled.

	 
	17.	 	Term and Termination. Unless terminated earlier, this Agreement shall remain in effect
until all amounts received by the Escrow Agent have been disbursed as provided herein above. In no
case will the termination of this Agreement relieve the parties of their responsibility to pay any
fees due to the Escrow Agent and payable under this Agreement.

	 
	18.	 	Resignation of the Agent. The Agent reserves the right to resign as Escrow Agent at any
time by giving thirty days advance written notice to Depositor and Beneficiary. Within thirty days
after receipt of said notice of resignation, Depositor and Beneficiary shall inform the Escrow
Agent of a successor escrow agent to which the Escrow Agent shall distribute the property then held
hereunder, less its fees, costs and expenses (including counsel fees and expenses). If Depositor
and Beneficiary are unable to appoint a successor escrow agent within thirty days and there is
property held under this Agreement, then Depositor and Beneficiary shall cause the property to be
disbursed in accordance with Section 6.

	 
	19.	 	Amendment. The provisions of this Agreement may only be altered, modified or amended by
instrument in writing duly executed by all of the Parties hereto.

	 
	20.	 	Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed as original of one and the same document.

	 
	21.	 	Notices. Any notice or other communication shall be in writing and shall be sent by
United States mail, overnight courier or facsimile to the noted addresses set forth below the
parties signatures. For all purposes hereof any notice so mailed shall be as effectual as though
served upon the person of the party to whom it was mailed at the time of the deposit in the United
States mail or faxed.

	 
	22.	 	Business Days. Unless otherwise specified herein, all “days” referred to in this
Agreement shall be business days. Whenever under the terms hereof the time giving a notice or
performing an act falls upon a Saturday, Sunday or federal holiday, such time shall be extended to
the next following business day.

THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK

 

 

 

	 	 	 
	

	 	Escrow Agreement

(Single Depositor)

The Depositor and Beneficiary each state that they have read the foregoing Agreement, understand
and agree to it, and acknowledge receipt of a copy of the same. The Depositor and the Beneficiary
further acknowledge that this Agreement shall not be effective until signed by the Escrow Agent.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year of the
last signature below.

	 	 	 	 	 	 	 	 	 	 	 
	Depositor: World Energy Solutions, Inc.	 	 	 	Beneficiary: Co-eXprise, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name & Title: James Parslow, CFO	 	 	 	Name & Title: William R. Blair	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:                                         	 	 	 	Date:                                         	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Address for Notices:	 	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Attn:

	 	James Parslow
	 	 	 	Attn:
	 	Joseph M. Funtal	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	446 Main St.
	 	 	 	 	 	6021 Wallace Rd. Ext. Suite 300	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Worcester, MA 01608
	 	 	 	 	 	Wexford, PA 15090	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Tel: 508-459-8106	 	 	 	Tel: 724-933-1180	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Fax: 508-459-8101	 	 	 	Fax: 724-933-1150	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Email: _jparslow@worldenergy.com____	 	 	 	Email: jfuntal@co-exprise.com___________	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Escrow Agent:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Silicon Valley Bank	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name & Title: Arlene D. Clifton, Operations Advisor III	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:                                         	 	 	 	 	 	 	 	 

Address for Notices:

Attn: Deposit Escrow Services

Silicon Valley Bank

3003 Tasman Drive

Santa Clara, CA 95054

Tel: (408) 654-6324

Fax: (408) 496-2417

Toll Free Fax: (877)546-9413

Email: escrowservices@svbank.com

 

 

 

			
	 	 	 
	
	 	Escrow Agreement

(Single Depositor)

Exhibit A

Fees Schedule

In accordance with Section 7 of this Agreement, the following fees are due to the Escrow Agent:

	 	 	 	 	 	 	 
	Type of Fee:	 	Amount	 	Due:	 	Responsible Party:
	 
	 	 	 	 	 	 
	Escrow Fee*:

	 	$2,500 (non-refundable)
	 	Payable at the time the escrow account is established
	 	Depositor
	 
	 	 	 	 	 	 
	Renewal Fee:

(if applicable)

	 	$1,250 (non-refundable)
	 	Payable on the first and subsequent anniversaries of the escrow account
	 	Depositor
	 
	 	 	 	 	 	 
	Disbursement Fees:

	 	•     $25.00 — wire transfers to SVB accounts

	 	Per disbursement per payee.
	 	Depositor
	 
	 	 	 	 	 	 
	 

	 	•     $65.00 — wire transfers to U.S. banks

	 	Payable at the time of the disbursement.	 	 
	 
	 	 	 	 	 	 
	 

	 	•     $80.00 — wire transfer to non U.S. banks
	 	 	 	 

	 	 	 
	*	 	An additional fee of up to $500 may be charged if revisions to the agreement are requested
(you will be notified if the additional fee applies at the time of the request).

 

 

 

			
	 	 	 
	
	 	Escrow Agreement

(Single Depositor)

Exhibit B

Delivery Instructions

In accordance with Section 3 of this Agreement, all funds to be deposited to the Escrow Account
should be delivered as follows:

Remittance Via Wire Transfer:

Account Name: World Energy Solutions, Inc / Co-eXprise, Inc Escrow Account

	 	 	 	 	 

	Bank:

	 	Silicon Valley Bank	 	 
	Account #:
	 	 	 	 
	 

	 	 

	 	 
	ABA #:

	 	 

121140399
	 	 
	 
	 	 	 	 
	Address:

	 	Silicon Valley Bank 

3003 Tasman Drive 

Santa Clara, CA 95054	 	 

 

 

 

			
	 	 	 
	
	 	Escrow Agreement

(Single Depositor)

Exhibit C

Escrow Account Disbursement Instructions

Silicon Valley Bank

Deposit Escrow Services

3003 Tasman Drive 
Santa
Clara, CA 95054

Fax: (408) 496-2516

Escrow Agreement dated:                                         

Depositor:   World Energy Solutions, Inc

Beneficiary: Co-eXprise, Inc

This letter is delivered pursuant to Section 6 of the Escrow Agreement, by and among the
Depositor, Beneficiary and Silicon Valley Bank as Escrow Agent. The Depositor and Beneficiary
hereby instruct Escrow Agent to release funds from the Escrow Account to the party/parties via wire
per below.

$                                        

	 	 	 	 	 

	Name on Account:
	 	 	 	 
	Bank Name:

	 	 

	 	 
	Account Number:

	 	 

	 	 
	Bank ABA/Routing Number:

	 	 

	 	 
	Reference:

	 	 

	 	 
	 

	 	 

	 	 

$                                        

	 	 	 	 	 

	Name on Account:
	 	 	 	 
	Bank Name:

	 	 

	 	 
	Account Number:

	 	 

	 	 
	Bank ABA/Routing Number:

	 	 

	 	 
	Reference:

	 	 

	 	 

The undersigned has caused its duly authorized representative to execute this letter as of the date
hereof.

Sincerely,

	 	 	 	 	 	 	 	 	 	 	 	 	 

	DEPOSITOR: World Energy Solutions, Inc	 	BENEFICIARY: Co-eXprise, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Name & Title:	 	 	 	Name & Title:	 		 	 
	 

	 	 	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:exv10w1

Exhibit 10.1

XBOX 360 PUBLISHER LICENSE AGREEMENT

     This Xbox 360 Publisher License Agreement (“Agreement”) is entered into and effective as of
the later of the two signature dates below (the “Effective Date”) by and between Microsoft
Licensing, GP, a Nevada general partnership (“Microsoft”), and Majesco Entertainment
Company, a Delaware corporation (“Publisher”).

RECITALS

     A. Microsoft and its affiliated companies develop and license a computer game system known as
the Xbox 360 game system and a proprietary online service accessible via the Xbox 360 game system
known as Xbox Live.

     B. Publisher wishes to develop and/or publish one or more software products running on the
Xbox 360 game system, which software products may also be made available to subscribers of Xbox
Live, and to license proprietary materials from Microsoft on the terms and conditions set forth
herein.

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

1. Exhibits

The following exhibits are hereby incorporated to this Agreement (some require completion and/or
execution by one or both parties):

Exhibit 1: Payments

Exhibit 2: Xbox 360 Royalty Tier Selection Form

Exhibit 3: Xbox 360 Publisher Enrollment Form

Exhibit 4: Authorized Subsidiaries

Exhibit 5: Non-Disclosure Agreement

Exhibit 6: Japan/Asian Royalty Incentive Program

Exhibit 7: Xbox Live Incentive Program

2. Definitions

As further described in this Agreement and the Xbox 360 Publisher Guide (defined below), the
following terms have the following respective meanings:

     2.1 “Asian Manufacturing Region” means the region for manufacturing comprising Taiwan, Hong
Kong, Singapore, Korea, Japan and any other countries that are included by Microsoft from time to
time as set forth in the Xbox 360 Publisher Guide.

     2.2 “Asian Sales Territory” means the territory for sales distribution comprising Taiwan, Hong
Kong, Singapore, Korea, and any other countries that are included by Microsoft from time to time as
set forth in the Xbox 360 Publisher Guide. The Asian Sales Territory does not include Japan.

     2.3 “Authorized Replicator” means a software replicator certified and approved by Microsoft
for replication of FPUs (defined below) that run on the Xbox 360.

     2.4 “Branding Specifications” means the specifications as provided by Microsoft from time to
time for using the Licensed Trademarks in connection with a Software Title and/or Online Content
and on Marketing Materials as set forth in the Xbox 360 Publisher Guide.

     2.5 “BTS” means a Microsoft designed break-the-seal sticker that will be issued to the
Authorized Replicator for placement on the Packaging Materials (defined below) as specified in the
Xbox 360 Publisher Guide.

     2.6 “Certification” means the final stage of the approval process by which Microsoft approves
or disapproves of a Software Title or Online Content for manufacture and/or distribution.
Certification is further defined in this Agreement and the Xbox 360 Publisher Guide.

Microsoft
Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

1

 

     2.7 “Commercial Release” with respect to a Software Title means the first commercial
distribution of an FPU that is not designated as a Demo Version. With respect to Online Content,
Commercial Release means its first availability via Xbox Live to Xbox Live Users.

     2.8 “Concept” means the detailed description of Publisher’s proposed Software Title and/or
Online Content in each case including such information as may be requested by Microsoft.

     2.9 “Demo Versions” means a small portion of an applicable Software Title that is provided to
end users to advertise or promote a Software Title.

     2.10 “European Sales Territory” means the territory for sales distribution comprising the
United Kingdom, France, Germany, Spain, Italy, Netherlands, Belgium, Sweden, Denmark, Norway,
Finland, Austria, Switzerland, Ireland, Portugal, Greece, Australia, New Zealand and any other
countries that are included by Microsoft from time to time as set forth in the Xbox 360 Publisher
Guide

     2.11 “European Manufacturing Region” means the region for manufacturing comprising the United
Kingdom, France, Germany, Spain, Italy, Netherlands, Belgium, Sweden, Denmark, Norway, Finland,
Austria, Switzerland, Ireland, Portugal, Greece, Australia, New Zealand and any other countries
that are included by Microsoft from time to time as set forth in the Xbox 360 Publisher Guide.

     2.12 “FPU” or “Finished Product Unit” means a copy of a Software Title in object code form
that has passed Certification, has been affixed to a DVD disk and approved by Microsoft for release
and manufacturing. Once the Packaging Materials have been added, and the BTS has been assigned or
affixed to the FPU or its packaging, the FPU also includes its accompanying BTS and Packaging
Materials.

     2.13 “Japan Sales Territory” means the territory for sales distribution comprising the
country of Japan.

     2.14 “Licensed Trademarks” means the Microsoft trademarks identified in the Xbox 360
Publisher Guide.

     2.15 “Marketing Materials” collectively means the Packaging Materials and all press releases,
marketing, advertising or promotional materials related to the Software Title, FPUs and/or Online
Content (including without limitation Web advertising and Publisher’s Web pages to the extent they
refer to the Software Title(s), FPU(s) and/or Online Content) that will be used and distributed by
Publisher in the marketing of the Software Title(s), FPU(s) and/or Online Content.

     2.16 “Manufacturing Region” means the Asian Manufacturing Region, European Manufacturing
Region, and/or North American Manufacturing Region.

     2.17 “North American Sales Territory” means the territory for sales distribution comprising
the United States, Canada, Mexico, Colombia and any other countries that may be included by
Microsoft from time to time as set forth in the Xbox 360 Publisher Guide

     2.18 “North American Manufacturing Region” means the region for manufacturing comprising the
United States, Canada, Mexico, Colombia and any other countries that may be included by Microsoft
from time to time as set forth in the Xbox 360 Publisher Guide

     2.19 “Online Content” means any content, feature, or access to software or online service that
is distributed by Microsoft pursuant to this Agreement. Online Content includes, but is not limited
to, Online Game Features, Title Updates, Demo Versions, trailers, “themes,” “gamer pictures” or any
other category of online content or service approved by Microsoft from time to time. Trailers,
“themes,” “gamer pictures” and any other approved Online Content will be further described in the
Xbox 360 Publisher Guide.

     2.20 “Online Game Features” means a Software Title’s content, features and/or services that
are available to Xbox Live Users via Xbox Live, whether included in the Software Title’s FPU or
otherwise distributed via Xbox Live.

     2.21 “Packaging Materials” means art and mechanical formats for a Software Title including the
retail packaging, end user instruction manual with end user license agreement and warranties, end
user warnings, FPU media label, and any promotional inserts and other materials that are to be
included in the retail packaging.

Microsoft
Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

2

 

     2.22 “Pre-Certification” means the first stage of the approval process wherein Microsoft tests
to provide feedback and/or identify any issues that may prevent the Software Title from being
approved during the Certification phase. Pre-Certification is further described in this Agreement
and the Xbox 360 Publisher Guide.

     2.23 “Sales Territory” means the Asian Sales Territory, European Sales Territory, Japan Sales
Territory, and/or North American Sales Territory.

     2.24 “Software Title” means the single software product as approved by Microsoft for use on
Xbox 360, including any Title Updates thereto (if and to the extent approved by Microsoft) and all
Online Game Features for such Software Title. If Microsoft approves one or more additional single
software product(s) proposed by Publisher to run on Xbox 360, this Agreement, and the term
“Software Title,” will be broadened automatically to cover the respective new software product(s)
as additional Software Title(s) under this Agreement.

     2.25 “Subscriber” means an Xbox Live User that establishes an account with Xbox Live.

     2.26 “Sub-Publisher” means an entity that has a valid Xbox 360 publisher license agreement
with Microsoft or a Microsoft affiliate and with whom Publisher has entered an agreement to allow
such entity to publish a Software Title or Online Content in specific Sales Territories.

     2.27 “Suggested Retail Price” means the highest per unit price that Publisher or its agent
recommends the FPU be made commercially available to end-users in a particular Sales Territory. If
the Suggested Retail Price of a particular Software Title varies among the countries in a single
Sales Territory, then the highest Suggested Retail Price established for any of the countries will
be used to determine the appropriate royalty fees for the entire Sales Territory.

     2.28 “Title Update” means an update, upgrade, or technical fix to a Software Title
that Xbox Live Users can automatically download to the Xbox Live User’s Xbox 360.

     2.29 “Wholesale Price” means the highest per unit price that Publisher charges retailers
and/or distributors in bona fide third party transactions for the right to distribute and sell the
Software Title within a Sales Territory, it being agreed that (i) any transactions involving
affiliates of Publisher (entities controlling, controlled by or under common control of, Publisher)
are not to be considered in determining the Wholesale Price; (ii) if Publisher enters into an
agreement with a third party (such as a Sub-Publisher) providing the third party with the exclusive
right to distribute the Software Title in a Sales Territory, the Wholesale Price is governed by the
price charged by the third party rather than the terms of the exclusive distribution agreement
between Publisher and such third party; and (iii) if the Wholesale Price varies among countries in
a single Sales Territory, the highest Wholesale Price used in the Sales Territory will be used to
determine the appropriate royalty fees for the entire Sales Territory.

     2.30 “Xbox 360” means the second version of Microsoft’s proprietary game system, successor to
the Xbox game system, including operating system software and hardware design specifications.

     2.31 “Xbox 360 Publisher Guide” means a document (in physical, electronic or Web site form)
created by Microsoft that supplements this Agreement and provides detailed requirements regarding
the Pre-Certification and Certification approval process, Branding Specifications, replication
requirements, royalty payment process, marketing guidelines, technical specifications and
certification requirements, Demo Version requirements, packaging requirements and other operational
aspects of the Xbox 360 and Xbox Live. Microsoft may supplement, revise or update the Xbox 360
Publisher Guide from time to time in its reasonable discretion as set forth in this Agreement.

     2.32 “Xbox Live” means the proprietary online service offered by Microsoft to Xbox Live
Users.

     2.33 “Xbox Live User” means any individual that accesses and uses Xbox Live.

     2.34 Other Terms. All other capitalized terms have the definitions set forth with the first
use of such term as described in this Agreement.

3. Xbox 360 Development Kit License

Publisher shall enter into one or more development kit license(s) for the applicable territory(ies)
to which Xbox 360 game development kits will be shipped for use by Publisher (each an “XDK
License”) pursuant to which Microsoft or its affiliate may license to Publisher software
development tools and hardware to assist Publisher in the development and testing of

Microsoft
Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

3

 

Software Titles, including redistributable code that Publisher must incorporate into Software
Titles pursuant to the terms and conditions contained in the XDK License.

4. Approval Process

     4.1 Standard Approval Process. The standard approval process for a Software Title is divided
into four phases comprised of Concept approval, Pre-Certification, Certification, and Marketing
Materials approval. Unless Publisher elects the EU Approval Option for a European FPU (described
below), Publisher is required to submit its Software Title to Microsoft for evaluation at all four
phases. Each phase is identified below and further described in the Xbox 360 Publisher Guide.
Additional or alternate approval processes for Online Content may be further described in the Xbox
360 Publisher Guide

          4.1.1 Concept. For each Software Title, Publisher shall deliver to Microsoft a completed
Concept submission form (in the form provided by Microsoft to Publisher) that describes the
Software Title. In the event that Publisher desires to host or have a third party host or provide
to Xbox Live Users any of Publisher’s Online Game Features, Publisher shall so indicate on the
Concept submission form and must execute an addendum to this Agreement, which addendum is available
upon request and will be incorporated into this Agreement upon execution. Following evaluation of
Publisher’s Concept submission, Microsoft will notify Publisher of whether the Concept is approved
or rejected. If approved, the Concept submission form, in the form submitted and approved by
Microsoft, is incorporated herein by reference and adherence to its terms is a requirement for
Certification. Publisher may propose Online Content at any time after a Concept has been approved,
in which case Publisher shall deliver to Microsoft a separate Concept submission for each proposed
piece of Online Content.

          4.1.2 Pre-Certification. If the Concept is approved, Publisher shall deliver to Microsoft a
code-complete version of the Software Title or Online Content that includes all current features of
the Software Title and such other content as may be required under the Xbox 360 Publisher Guide.
Upon receipt, Microsoft shall conduct technical screen and/or other testing of the Software Title
or Online Content consistent with the Xbox 360 Publisher Guide and will subsequently provide
Publisher with advisory feedback regarding such testing.

          4.1.3 Certification. Following Pre-Certification, Publisher shall deliver to Microsoft the
proposed final release version of the applicable Software Title that is complete, ready for access
via Xbox Live (if applicable), release, manufacture, and commercial distribution. Such version must
include the final content rating certification required by Section 4.4, have identified program
errors corrected, and have any and all changes previously required by Microsoft implemented.
Microsoft shall conduct compliance, compatibility, functional and other testing consistent with the
Xbox 360 Publisher Guide (“Certification Testing”) and shall subsequently provide Publisher with
the results of such testing, including any required fixes required prior to achieving
Certification. Release from Certification for a Software Title (and for Online Content as
applicable) is based on (1) passing the Certification Testing; (2) conformance with the approved
Concept and any required submission materials as stated in the Xbox 360 Publisher Guide; (3)
Packaging Materials approval; (4) consistency with the goals and objectives of the Xbox 360 console
platform and Xbox Live; and (5) continuing and ongoing compliance with all Certification
requirements and other requirements as set forth in the Xbox 360 Publisher Guide and this
Agreement.

          4.1.4 Marketing Materials Approval. Publisher shall submit all Marketing Materials to
Microsoft and shall not distribute such Marketing Materials unless and until Microsoft has approved
them in writing. Prior to use or publication of any Marketing Materials, Publisher agrees to
incorporate all changes relating to use of the Licensed Trademarks that Microsoft may request and
will use its commercially reasonable efforts to incorporate other changes reasonably suggested by
Microsoft (provided, however, that in any event Publisher shall at all times comply with the
Branding Specifications).

     4.2 EU Approval Option. For a Software Title that Publisher intends to distribute solely in
the European Sales Territory (a “European FPU”), Publisher may choose to forego Concept approval
(Section 4.1.1), Pre-Certification (Section 4.1.2) and/or Marketing Materials approval (Section
4.1.4) and submit such Software Title to Microsoft only for Certification approval. This option is
referred to herein as
the “EU Approval Option.” The EU Approval Option applies solely to distribution of European
FPUs, and is not available for Online Content intended to be available in the European Sales
Territory. If Publisher chooses the EU Approval Option, Publisher shall not use the Licensed
Trademarks on the European FPU and the license grant set forth in Section 12.1 is withdrawn as to
such European FPU. In addition, Publisher shall make no statements in advertising, marketing
materials, packaging, Web sites or otherwise that the European FPU is approved or otherwise
sanctioned by Microsoft or is an official Xbox 360 Software Title. The European FPU may not be
distributed outside the European Sales Territory without complying with all terms of this Agreement
concerning approvals and the release of the FPU as deemed relevant by Microsoft. Microsoft may
provide additional information in the Xbox 360

Microsoft Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

4

 

Publisher Guide regarding the European Approval Option. Notwithstanding Publisher’s choice of the
EU Approval Option, all other portions of this Agreement other than those specifically identified
above shall remain in effect.

     4.3 Resubmissions and Additional Review. If a Software Title or Online Content fails
Certification, and if Publisher has made good faith efforts to address any issues raised by
Microsoft, Microsoft will give Publisher the opportunity to resubmit such Software Title or Online
Content for Certification. Microsoft may charge Publisher a reasonable fee designed to offset the
costs associated with testing upon resubmission. Publisher may request the ability to submit
versions of the Software Title or Online Content at stages of development other than as identified
above for review and feedback by Microsoft. Such review is within the discretion of Microsoft and
may require the payment of reasonable fees by Publisher to offset the costs associated with the
review of such Software Titles or Online Content.

     4.4 Content Rating. For those Sales Territories that utilize a content rating system,
Microsoft will not accept submission of a Software Title for Certification approval unless and
until Publisher has obtained, at Publisher’s sole cost, a rating not higher than “Mature (17+)” or
its equivalent from the appropriate rating bodies and/or any and all other independent content
rating authority/authorities for the applicable Sales Territory(ies) reasonably designated by
Microsoft (such as ESRB, ELSPA, CERO, etc.). Publisher shall include the applicable rating(s)
prominently on FPUs and Marketing Materials, in accordance with the applicable rating body
guidelines, and shall include the applicable rating in a header file of the Software Title and in
Online Content, as described in the Xbox 360 Publisher Guide. For those Sales Territories that do
not utilize a content rating system, Microsoft will not approve any Software Title or Online
Content that, in its opinion, contains excessive sexual content or violence, inappropriate language
or other elements deemed unsuitable for the Xbox 360 platform. If, after Commercial Release, a
Software Title is determined as suitable for adults only or otherwise as indecent, obscene or
otherwise prohibited by law, the Publisher shall at its own costs recall all FPUs. Publisher hereby
represents and warrants that any Online Game Features and other game-related Online Content not
included in the initial Software Title FPU will not be inconsistent with the content rating (or, in
those countries that do not utilize a content rating system, with the overall nature of the
content) of the underlying Software Title. Content rating information and requirements may be
further described in the Xbox 360 Publisher Guide.

     4.5 Publisher Testing. Publisher shall perform its own testing of the Software Title and FPUs
and shall keep written or electronic records of such testing during the term of this Agreement and
for no less than [***] thereafter (“Test Records”). Upon Microsoft’s request, Publisher shall
provide Microsoft with copies of, or reasonable access to inspect, the Test Records, FPUs and
Software Title (either in pre-Commercial Release or Commercial Release versions, as Microsoft may
request).

     4.6 Mutual Approval Required. Publisher shall not distribute the Software Title, nor
manufacture any FPU intended for distribution, unless and until Microsoft has given its final
approval and release from Certification version of the Software Title and both parties have
approved the FPU in writing.

     4.7 Title Updates

          4.7.1 All Title Updates for Software Titles are subject to approval by Microsoft. Publisher
may release one Title Update per Software Title free of charge. Any additional Title Updates
proposed by Publisher may be subject to a reasonable charge.

          4.7.2 Microsoft may require Publisher to develop and provide a Title Update if (a) a Software
Title or Online Content adversely affects Xbox Live, (b) if a change to the Xbox 360 Publisher
Guide requires a Title Update, (c) if Certification is revoked for Online Content, or (d) for any
other reason at Microsoft’s reasonable discretion. Microsoft will not charge Publisher for the
Certification, hosting, and distribution of Title Updates to Xbox Live Users for the first Title
Update (if any) per Software Title or Online Content required by a specific change in the Xbox 360
Publisher Guide or for any other reason at Microsoft’s reasonable discretion. Microsoft reserves
the right to charge Publisher a reasonable fee to offset the costs associated with the
Certification, hosting, and distribution of Title Updates to Xbox Live Users
that are required because of revocation of Certification or a Software Title or Online Content
adversely affecting Xbox Live.

5. Xbox 360 Publisher Guide

Publisher acknowledges that the Xbox 360 Publisher Guide is an evolving document and subject to
change during the term of this Agreement. Publisher agrees to be bound by all provisions contained
in the then-applicable version of the Xbox 360 Publisher Guide. Publisher agrees that upon
Publisher’s receipt of notice of availability of the applicable supplement, revision, or updated
version of the Xbox 360 Publisher Guide (which may be via a publisher newsletter or other
electronic notification), Publisher automatically is bound by all provisions of the Xbox 360
Publisher Guide as supplemented, revised,

Microsoft Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

5

 

or updated. Publisher’s continued distribution of FPUs after a notice of supplement, revision or
update is included in the Xbox 360 Publisher Guide or made available to Publisher constitutes
Publisher’s agreement to the then-current Xbox 360 Publisher Guide as supplemented, revised or
updated. Microsoft will specify in each such supplement, revision or update a reasonable effective
date of each change if such change is not required to be effective immediately. Only with respect
to a Software Title that has passed Pre-Certification prior to the applicable revision or update,
Publisher will not be obligated to comply with any changes made to the technical or content
requirements for Software Titles in the Xbox 360 Publisher Guide, except in circumstances where
such change is deemed by Microsoft to be vitally important to the success of the Xbox 360 platform
(e.g. changes due to piracy, technical failure) or will not add significant expense to the Software
Title’s development. In addition, changes made in Branding Specifications or other Marketing
Materials requirements will be effective as to a Software Title that has passed Certification only
on a “going forward” basis (i.e., only to such Marketing Materials and/or FPUs as are manufactured
after Microsoft notifies Publisher of the change). Notwithstanding the foregoing, Publisher shall
comply with such changes to the Xbox 360 Publisher Guide related to Branding Specifications or
other Marketing Materials requirements retroactively if Microsoft agrees to pay for Publisher’s
direct, out-of-pocket expenses necessarily incurred as a result of its retrospective compliance
with the change.

6. Post-Release Compliance

     6.1 Correction of Bugs or Errors. Notwithstanding Microsoft’s Certification, all Software
Titles must remain in compliance with all Certification requirements and requirements set forth in
the Xbox 360 Publisher Guide on a continuing and ongoing basis. Publisher must correct any material
program bugs or errors in conformance with the Xbox 360 Publisher Guide whenever discovered and
Publisher agrees to correct such material bugs and errors as soon as possible after discovery. With
respect to bugs or errors discovered after Commercial Release of the applicable Software Title,
Publisher will, at Microsoft’s request or allowance, correct the bug or error in all FPUs
manufactured after discovery and Microsoft may charge a reasonable amount to cover the costs of
Certifying the Software Title again.

     6.2 Online Content; Minimum Commitment

          6.2.1 Publisher agrees that each Online Game Feature of a Software Title will be made
available via Xbox Live for at least [***] following the respective Commercial Release of the FPUs
of the Software Title in each Sales Territory in which Xbox Live is available (the “Minimum
Commitment”). Publisher is obligated to provide all necessary support for such Online Game Feature
during its availability and for [***] after discontinuation . Following the Minimum Commitment
period, Publisher may terminate Microsoft’s license associated with such Online Game Feature upon
[***] prior written notice to Microsoft; and/or Microsoft may discontinue the availability of any
or all such Online Game Feature via Xbox Live upon [***] prior written notice to Publisher.
Publisher is responsible for communicating the duration of Online Game Feature availability to Xbox
Live Users, and for providing reasonable advance notice to Xbox Live Users of any discontinuation
of such Online Game Feature.

          6.2.2 Subject to Section 10.3, Publisher agrees that Microsoft has the right to make Online
Content other than Online Games Features submitted by Publisher available to Xbox Live Users for
the Term of this Agreement. Publisher agrees to provide all necessary support for such Online
Content as long as such Online Content is made available to Xbox Live Users and for [***]
thereafter.

          6.2.3 Archive Copies. Publisher agrees to maintain, and to possess the ability to support,
copies in object code, source code and symbol format, of all Online Content available to Xbox Live
Users during the term of this Agreement and for no less than [***] thereafter.

7. Manufacturing

     7.1 Authorized Replicators. Publisher will use only an Authorized Replicator to produce FPUs.
Prior to placing an order with a replicator for FPUs, Publisher shall confirm with Microsoft that
such entity is an Authorized Replicator. Microsoft will endeavor to keep an up-to-date list of
Authorized Replicators in the Xbox 360 Publisher Guide. Publisher will notify Microsoft in writing
of the identity of
the applicable Authorized Replicator and the agreement for such replication services shall be
as negotiated by Publisher and the applicable Authorized Replicator, subject to the requirements in
this Agreement. Publisher acknowledges that Microsoft may charge the Authorized Replicator fees for
rights, services or products associated with the manufacture of FPUs and that the agreement with
the Authorized Replicator grants Microsoft the right to instruct the Authorized Replicator to cease
the manufacture or FPU and/or prohibit the release of FPU to Publisher or its agents in the event
Publisher is in breach of this Agreement or any credit arrangement entered into by Microsoft and
Publisher or Publisher affiliates. Microsoft does not guarantee any level of performance by the
Authorized Replicators, and Microsoft will have no liability to Publisher for any Authorized
Replicator’s failure to perform its

Microsoft Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

6

 

obligations under any applicable agreement between Microsoft and such Authorized Replicator and/or
between Publisher and such Authorized Replicator. Microsoft has no responsibility for ensuring that
FPUs are free of all defects.

     7.2 Submissions to the Authorized Replicator. Microsoft, and not Publisher, will provide to
the applicable Authorized Replicator the final release version of the Software Title and all
specifications required by Microsoft for the manufacture of the FPUs including, without limitation,
the Security Technology (as defined in Section 7.9 below). Publisher is responsible for preparing
and delivering to the Authorized Replicator all other items required for manufacturing FPUs
including approved Packaging Materials associated with the FPUs. Subject to the approval of
Publisher (which approval shall not be unreasonably withheld), Microsoft has the right to have
included in the packaging of FPUs such promotional materials for Xbox, Xbox 360, Xbox Live, and/or
other Xbox or Xbox 360 products or services as Microsoft may determine in its reasonable
discretion. Microsoft will be responsible for delivering to the Authorized Replicator all such
promotional materials as it desires to include with FPUs, and, unless otherwise agreed by the
parties, any incremental insertion costs relating to such marketing materials will be borne by
Microsoft.

     7.3 Verification Versions. Publisher shall cause the Authorized Replicator to create several
test versions of each FPU (“Verification Version(s)”) that will be provided to both Microsoft and
Publisher for evaluation. Prior to full manufacture of a FPU by the Authorized Replicator, both
Publisher and Microsoft must approve the applicable Verification Version. Throughout the
manufacturing process and upon the request of Microsoft, Publisher shall cause the Authorized
Replicator to provide additional Verification Versions of the FPU for evaluation by Microsoft.
Microsoft’s approval is a condition precedent to manufacture, however Publisher shall grant the
final approval and shall work directly with the Authorized Replicator regarding the production run.
Publisher agrees that all FPUs must be replicated in conformity with all of the quality standards
and manufacturing specifications, policies and procedures that Microsoft requires of its Authorized
Replicators, and that all Packaging Materials must be approved by Microsoft prior to packaging.
Publisher shall cause the Authorized Replicator to include the BTS on each FPU.

     7.4 Samples. For each Software Title sku, 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 royalty fee for such samples nor will
such samples count towards the Unit Discounts under Exhibit 1.

     7.5 Minimum Order Quantities

          7.5.1 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 360 Publisher Guide.
Microsoft may update and revise the MOQs [***] which will be effective starting the following [***]. Currently, the MOQs are as follows:

     [***]

          7.5.2 For the purposes of this section, a “Disc” shall mean an FPU that is signed for use on a
certain defined range of Xbox 360 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 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 had been cumulative).

          7.5.3 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 royalty
fee for the number of FPUs represented by the difference between the applicable MOQ and the number
of FPUs of the Software Title actually ordered by Publisher.

     7.6 Manufacturing Reports. For purposes of assisting in the scheduling of manufacturing
resources, on a [***] basis, or as otherwise requested by Microsoft in its reasonable discretion,
Publisher shall provide Microsoft with forecasts showing manufacturing projections by Sales
Territory [***] out for each Software Title. Publisher will use commercially reasonable efforts to
cause the Authorized Replicator to deliver to Microsoft true and accurate [***] statements of FPUs
manufactured in each [***], on a Software Title-by-Software Title basis and in sufficient detail to
satisfy Microsoft,

Microsoft Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

7

 

within [***]. Microsoft will have reasonable audit rights to examine the records of the Authorized
Replicator regarding the number of FPUs manufactured.

     7.7 New Authorized Replicator. If Publisher requests that Microsoft certify and approve a
third party replicator that is not then an Authorized Replicator, Microsoft will consider such
request in good faith. Publisher acknowledges and agrees that Microsoft may condition certification
and approval of such third party on the execution of an agreement in a form satisfactory to
Microsoft pursuant to which such third party agrees to strict quality standards, non-disclosure
requirements, license fees for use of Microsoft intellectual property and trade secrets, and
procedures to protect Microsoft’s intellectual property and trade secrets. Notwithstanding anything
contained herein, Publisher acknowledges that Microsoft is not required to certify, maintain the
certification or approve any particular third party as an Authorized Replicator, and that the
certification and approval process may be time-consuming.

     7.8 Alternate Manufacturing in Europe. Publisher may, solely with respect to FPUs manufactured
for distribution in the European Sales Territory, utilize a different process or company for the
combination of a FPU with Packaging Materials provided that such packaging process incorporates the
BTS and otherwise complies with the Xbox 360 Publisher Guide. Publisher shall notify Microsoft
regarding its use of such process or company so that the parties may properly coordinate their
activities and approvals. To the extent that Microsoft is unable to accommodate such processes or
company, Publisher shall modify its operations to comply with Microsoft’s requirements.

     7.9 Security. Microsoft has the right to add to the final release version of the Software
Title delivered by Publisher to Microsoft, and to all FPUs, such digital signature technology and
other security technology and copyright management information (collectively, “Security
Technology”) as Microsoft may determine to be necessary, and/or Microsoft may modify the signature
included in any Security Technology included in the Software Title by Publisher at Microsoft’s
discretion. Additionally, Microsoft may add Security Technology that prohibits the play of Software
Titles on Xbox 360 units manufactured in a region or country different from the location of
manufacture of the respective FPUs or that have been modified in any manner not authorized by
Microsoft.

     7.10 Demo Versions. If Publisher wishes to distribute a Demo Version in FPU format, Publisher
must obtain Microsoft’s prior written approval and Microsoft may charge a reasonable fee to offset
costs of the Certification. Subject to the terms of the Xbox 360 Publisher Guide, such Demo
Version(s) may be placed on a single disc, either as a stand-alone or with other Demo Versions and
the price of such units must be [***] or its equivalent in local currency. Unless separately
addressed in the Xbox 360 Publisher Guide, all rights, obligations and approvals set forth in this
Agreement as applying to Software Titles shall separately apply to any Demo Version. [***]. If
Publishers wishes to distribute a Demo Versions in an online downloadable format, such downloadable
Demo Version shall be distributed via by Microsoft Xbox Live in accordance with Section 10.3, and
such downloadable Demo Version will be subject to all other terms and policies applicable to Online
Content set forth herein and in the Xbox 360 Publisher Guide.

8. Payments

The
Parties shall make payments to each other under the terms of
Exhibit 1.

9. Marketing, Sales and Support

     9.1 Publisher Responsible. As between Microsoft and Publisher, Publisher is solely responsible
for the marketing and sales of the Software Title. Publisher is also solely responsible for
providing technical and all other support relating to the FPUs (including for Xbox Live Users of
Online Content). Publisher shall provide all appropriate contact information (including without
limitation Publisher’s address and telephone number, and the applicable individual/group
responsible for customer support), and shall also provide all such information to Microsoft for
posting on http://www.xbox.com, or such successor or related Web site identified by Microsoft or in
Xbox Live. Customer support shall at all times conform to the Customer Service Requirements set
forth in the Xbox 360 Publisher Guide and industry standards in the console game industry.

     9.2 Warranty. Publisher shall provide the original end user of any FPU a minimum warranty in
accordance with local laws and industry practices. For example, in the United States, Publisher
shall, as of the Effective Date, provide a minimum [***] limited warranty that the FPU will perform
in accordance with its user documentation or Publisher will refund the purchase price or provide a
replacement FPU at no charge. Publisher may offer additional warranty coverage consistent with the
traditions and practices of video game console game publishers within the applicable Sales
Territory or as otherwise required by local law.

Microsoft Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

8

 

     9.3 Recall. Notwithstanding anything to the contrary contained in this Agreement, if there is
a material defect in a Software Title and/or any FPUs, which defect in the reasonable judgment of
Microsoft would significantly impair the ability of an end user to play such Software Title or FPU
or would adversely affect the gameplay of the Xbox 360 or Xbox Live, Microsoft may require
Publisher to recall FPUs and undertake prompt repair or replacement of such Software Title and/or
FPUs.

     9.4 No Bundling with Unapproved Peripherals, Products or Software. Except as expressly stated
in this section, Publisher shall not market or distribute a FPU bundled with any other product or
service, nor shall Publisher knowingly permit or assist any third party in such bundling, without
Microsoft’s prior written consent. Publisher may market or distribute (i) FPU bundled with a
Software Title(s) that has been previously certified and released by Microsoft for manufacturing;
or (ii) FPU bundled with a peripheral product (e.g. game pads) that has been previously licensed as
an “Xbox 360 Licensed Peripheral” by Microsoft, without obtaining the written permission of
Microsoft. Publisher shall contact Microsoft in advance to confirm that the peripheral or Software
Title to be bundled has previously been approved by Microsoft pursuant to a valid license.

     9.5 Software Title License. Publisher grants Microsoft a fully-paid, royalty-free, worldwide,
non-exclusive license (i) to publicly perform the Software Titles at conventions, events, trade
shows, press briefings, public interactive displays and the like; (ii) to use the title of the
Software Title, and screen shots from the Software Title, in advertising and promotional material
relating to Xbox 360 and related Microsoft products and services, as Microsoft may reasonably deem
appropriate; (iii) distribute Demo Versions with the Official Xbox Magazine, as a standalone
product with other demo software; and (iv) distribute Software Title trailers via xbox.com.
Publisher may also select Online Content for inclusion in public interactive displays and/or
compilation demo discs published by Microsoft, in which case Publisher grants Microsoft a
fully-paid, royalty-free, worldwide, transferable, sublicenseable license to broadcast, transmit,
distribute, host, publicly display, reproduce and manufacture such selected Online Content as part
of public interactive displays and compilation demo discs, and to distribute and permit end users
to download and store (and, at Publisher’s discretion, to make further copies) such Online Content
via public interactive displays, The rights granted in the preceding sentence are in addition to
any rights that Microsoft may have for uses of Publisher Software Titles under the applicable law,
such as uses that are “referential,” “fair use” or “reasonable use.”

10. Grant of Distribution License, Limitations

     10.1 Distribution License. Upon Certification of the Software Title, approval of the Marketing
Materials and the FPU test version of the Software Title by Microsoft, and subject to the terms and
conditions contained within this Agreement, Microsoft grants Publisher a non-exclusive,
non-transferable, license to distribute FPUs containing Redistributable and Sample Code (as defined
in the XDK License) and Security Technology (as defined above) within the Sales Territories
approved in the Software Title’s Concept in FPU form to third parties for distribution to end users
and/or directly to end users. The license to distribute the FPUs is personal to Publisher and
except for transfers of FPU through normal channels of distribution (e.g. wholesalers, retailers),
absent the written approval of Microsoft, Publisher may not
sublicense or assign its rights under this license to other parties. For the avoidance of
doubt, without the written approval of Microsoft, Publisher may not sublicense, transfer or assign
its right to distribute Software Titles or FPU to another entity that will brand, co-brand or
otherwise assume control over such products as a “publisher” as that concept is typically
understood in the console game industry. Publisher may only grant end users the right to make
personal, non-commercial use of Software Titles and may not grant end users any of the other rights
reserved to a copyright holder under US Copyright Law, Japanese Copyright Law, or its international
equivalent. Publisher’s license rights do not include any license, right, power or authority to
subject Microsoft’s software or derivative works thereof or intellectual property associated
therewith in whole or in part to any of the terms of an Excluded License. “Excluded License” means
any license that requires as a condition of use, modification and/or distribution of software
subject to the Excluded License, that such software or other software combined and/or distributed
with such software be (a) disclosed or distributed in source code form; (b) licensed for the
purpose of making derivative works; or (c) redistributable at no charge.

     10.2 No Distribution Outside the Sales Territory. Publisher shall distribute FPUs only in
Sales Territories for which the Software Title has been approved by Microsoft. Publisher shall not
directly or indirectly export any FPUs from an authorized Sales Territory to an unauthorized
territory nor shall Publisher knowingly permit or assist any third party in doing so, nor shall
Publisher distribute FPUs to any person or entity that it has reason to believe may re-distribute
or sell such FPUs outside authorized Sales Territories.

     10.3 Online Features. In consideration of the royalty payments as described in Exhibit 1,
Publisher grants to Microsoft (i) a worldwide, transferable, sublicensable license to broadcast,
transmit, distribute, host, publicly display, reproduce, and license Online Content for use on Xbox
360s, and (ii) a worldwide, transferable license solely to distribute to

Microsoft Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

9

 

end users and permit end users to download and store Online Content (and, at Publisher’s
discretion, to make further copies). Publisher agrees that the license grants set forth in this
section applicable to Online Content are exclusive, meaning that except as expressly permitted
under this Agreement, the Xbox 360 Publisher Guide and/or as agreed by the Parties, Publisher shall
not directly or indirectly permit or enable access to Online Content by any means, methods,
platforms or services other than through Xbox Live, or as otherwise set forth in this Agreement.
Notwithstanding the foregoing, this Section 10.3 does not prevent Publisher from making other
platform versions of its Software Titles or Online Content available via other platform-specific
online services. This Section 10.3 shall survive expiration or termination of this Agreement solely
to the extent and for the duration necessary to effectuate Section 17.3 below.

     10.4 No Reverse Engineering. Publisher may utilize and study the design, performance and
operation of Xbox 360 or Xbox Live solely for the purposes of developing the Software Title or
Online Content. Notwithstanding the foregoing, Publisher shall not, directly or indirectly, reverse
engineer or aid or assist in the reverse engineering of all or any part of Xbox 360 or Xbox Live
except and only to the extent that such activity is expressly permitted by applicable law
notwithstanding this limitation. In the event applicable law grants Publisher the right to reverse
engineer the Xbox 360 or Xbox Live notwithstanding this limitation, Publisher shall provide
Microsoft with written notice prior to such reverse engineering activity, information regarding
Publisher’s intended method of reverse engineering, its purpose and the legal authority for such
activity and shall afford Microsoft a reasonable period of time before initiating such activity in
order to evaluate the activity and/or challenge the reverse engineering activity with the
appropriate legal authorities. Publisher shall refrain from such reverse engineering activity until
such time as any legal challenge is resolved in Publisher’s favor. Reverse engineering includes,
without limitation, decompiling, disassembly, sniffing, peeling semiconductor components, or
otherwise deriving source code. In addition to any other rights and remedies that Microsoft may
have under the circumstances, Publisher shall be required in all cases to pay royalties to
Microsoft in accordance with Exhibit 1 with respect to any games or other products that are
developed, marketed or distributed by Publisher, and derived in whole or in part from the reverse
engineering of Xbox 360, Xbox Live or any Microsoft data, code or other material.

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

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

     10.7 Sub-Publishing. Notwithstanding Section 10.1, Publisher may enter into independent
agreements with other publishers to distribute Software Titles in multiple approved Sales
Territories (a “Sub-Publishing Relationship”), so long as:

          10.7.1 Publisher provides written notice to Microsoft, at least [***] prior to authorizing a
Sub-Publisher to manufacture any Software Title(s), of the Sub-Publishing relationship, along with
(i) a summary of the scope and nature of the Sub-Publishing relationship including, without
limitation, as between Publisher and Sub-Publisher, (ii) which party will be responsible for
Certification of the Software Title(s) and/or any Online Content, (iii) a list of the Software
Title(s) for which Sub-Publisher has acquired publishing rights, (iv) the geographic territory(ies)
for which such rights were granted, and (v) the term of Publisher’s agreement with Sub-Publisher;
and

          10.7.2 The Sub-Publisher has signed an Xbox 360 publisher license agreement (“Xbox 360 PLA”)
and both Publisher and Sub-Publisher are and remain at all times in good standing under each of
their respective Xbox 360 PLAs. Publisher is responsible for making applicable royalty payments for
the FPUs for which it places manufacturing orders, and Sub-Publisher is responsible for making
royalty payments for the FPUs for which it places manufacturing orders.

     10.8 Authorized Affiliates. If Publisher and an affiliate execute the “Publisher Affiliate
Agreement” provided in Exhibit 4, then Publisher’s authorized affiliate may exercise the rights
granted to Publisher under this Agreement. The foregoing shall not apply to any Publisher affiliate
which pays or intends to pay royalties from a European billing address. Any such European affiliate
shall instead execute an Xbox 360 Publisher Enrollment with MIOL, a copy of which is attached
hereto as Exhibit 3.

11. Usage Data

Publisher acknowledges that the operation of the Xbox Live service requires that Microsoft collect
and store Xbox Live User usage data, including, without limitation, Xbox Live User statistics,
scores, ratings, and rankings (collectively, “Xbox Live User Data”), as well as
personally-identifiable Xbox Live User data (e.g., name, email address) (“Personal Data”).
Microsoft

Microsoft
Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

10

 

reserves the right, in its discretion, to use such Xbox Live User Data for any purpose, including
without limitation, posting the Xbox Live User Data on Xbox.com or other Microsoft Web sites.
Microsoft agrees to use commercially reasonable efforts to periodically make certain Xbox Live User
Data and Personal Data available to Publisher; provided that Publisher’s use of such data is in
accordance with the then-current Xbox Live Privacy Statement and such other reasonable restrictions
as Microsoft may require. Without limiting the foregoing, Publisher agrees that any disclosure of
Personal Data to Publisher is only used by Publisher and may not be shared with any other third
parties, and any permitted email communications with Xbox Live Users includes instructions for
opting out of receiving any further communications from Publisher.

12. Trademark Rights and Restrictions

     12.1 Licensed Trademarks License. In each Software Title, FPU, Online Content and on all
Marketing Materials, Publisher shall incorporate the Licensed Trademarks and include credit and
acknowledgement to Microsoft as set forth in the Xbox 360 Publisher Guide. Microsoft grants to
Publisher a non-exclusive, non-transferable, personal license to use the Licensed Trademarks in
connection with Software Titles, FPUs, Online Content and Marketing Materials according to the Xbox
360 Publisher Guide and other conditions herein, and solely in connection with marketing, sale, and
distribution in the approved Sales Territories or via Xbox Live.

     12.2 Limitations. Publisher is granted no right, and shall not purport, to permit any third
party to use the Licensed Trademarks in any manner without Microsoft’s prior written consent.
Publisher’s license to use Licensed Trademarks in connection with the Software Title, FPUs and/or
Online Content does not extend to the merchandising or sale of related or promotional products.

     12.3 Branding Specifications. Publisher’s use of the Licensed Trademarks (including without
limitation in FPUs, Online Content and Marketing Materials) must comply with the Branding
Specifications set forth in the Xbox 360 Publisher Guide. Publisher shall not use Licensed
Trademarks in association with any third party trademarks in a manner that might suggest
co-branding or otherwise create potential confusion as to source or sponsorship of the Software
Title, Online Content or FPUs or ownership of the Licensed Trademarks, unless Microsoft has
otherwise approved such use in writing. Upon notice or other discovery of any non-conformance with
the requirements or prohibitions of this section, Publisher shall promptly remedy such
non-conformance and notify Microsoft of the non-conformance and remedial steps taken.

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

     12.5 Ownership and Goodwill. Publisher acknowledges Microsoft’s ownership of all Licensed
Trademarks, and all goodwill associated with the Licensed Trademarks. Use of the Licensed
Trademarks shall not create any right, title or interest therein in Publisher’s favor. Publisher’s
use of the Licensed Trademarks shall inure solely to the benefit of
Microsoft.

13. Non-Disclosure; Announcements

     13.1 Non-Disclosure Agreement. The information, materials and software exchanged by the
parties hereunder or under an XDK License, including the terms and conditions hereof and of the XDK
License, are subject to the Non-Disclosure Agreement between the parties attached hereto as Exhibit
5 (the “Non-Disclosure Agreement”), which is incorporated herein by reference; provided, however,
that for purposes of the foregoing, Section 2(a)(i) of the Non-Disclosure Agreement shall
hereinafter read, “The Receiving Party shall: (i)] Refrain from disclosing Confidential Information
of the Disclosing Party to any third parties for as long as such remains undisclosed under 1(b)
above except as expressly provided in Sections 2(b) and 2(c) of this [Non-Disclosure] Agreement.”
In this way, all Confidential Information provided hereunder or by way of the XDK License in
whatever form (e.g. information, materials, tools and/or software exchanged by the parties
hereunder or under an XDK License), including the terms and conditions hereof and of the XDK
License, unless otherwise specifically stated, will be protected from disclosure for as long as it
remains Confidential.

Microsoft
Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

11

 

     13.2 Public Announcements. Neither party shall issue any such press release or make any
such public announcement(s) related to the subject matter of this Agreement or any XDK License
without the express prior consent of the other party, which consent will not be unreasonably
withheld or delayed. Nothing contained in this Section 13.2 will relieve Publisher of any other
obligations it may have under this Agreement, including without limitation its obligations to seek
and obtain Microsoft approval of Marketing Materials.

     13.3 Required Public Filings. Notwithstanding Sections 13.1 and 13.2, the parties acknowledge
that this Agreement, or portions thereof, may be required under applicable law to be disclosed, as
part of or an exhibit to a party’s required public disclosure documents. If either party is advised
by its legal counsel that such disclosure is required, it will notify the other in writing and the
parties will jointly seek confidential treatment of this Agreement to the maximum extent reasonably
possible, in documents approved by both parties and filed with the applicable governmental or
regulatory authorities, and/or Microsoft will prepare a redacted version of this Agreement for
filing.

14. Protection of Proprietary Rights

     14.1 Microsoft Intellectual Property. If Publisher learns of any infringement or imitation of
the Licensed Trademarks, a Software Title, Online Content or FPU, or the proprietary rights in or
related to any of them, it will promptly notify Microsoft thereof. Microsoft may take such action
as it deems advisable for the protection of its rights in and to such proprietary rights, and
Publisher shall, if requested by Microsoft, cooperate in all reasonable respects therein at
Microsoft’s expense. In no event, however, shall Microsoft be required to take any action if it
deems it inadvisable to do so. Microsoft will have the right to retain all proceeds it may derive
from any recovery in connection with such actions.

     14.2 Publisher Intellectual Property. Publisher, without the express written permission of
Microsoft, may bring any action or proceeding relating to infringement or potential infringement of
a Software Title, Online Content or FPU, to the extent such infringement involves any proprietary
rights of Publisher (provided that Publisher will not have the right to bring any such action or
proceeding involving Microsoft’s intellectual property). Publisher shall make reasonable efforts to
inform Microsoft regarding such actions in a timely manner. Publisher will have the right to retain
all proceeds it may derive from any recovery in connection with such actions. Publisher agrees to
use all commercially reasonable efforts to protect and enforce its proprietary rights in the
Software Title or Online Content.

     14.3 Joint Actions. Publisher and Microsoft may agree to jointly pursue cases of infringement
involving the Software Titles or Online Content (since such products will contain intellectual
property owned by each of them). Unless the parties otherwise agree, or unless the recovery is
expressly allocated between them by the court (in which case the terms of Sections 14.1 and 14.2
will apply), in the event Publisher and Microsoft jointly prosecute an infringement lawsuit under
this provision, any recovery will be used first to reimburse Publisher and Microsoft for their
respective reasonable attorneys’ fees and expenses, pro rata, and any remaining recovery shall also
be given to Publisher and Microsoft pro rata based upon the fees and expenses incurred in bringing
such action.

15. Warranties

     15.1 Publisher. Publisher warrants and represents that:

          15.1.1 It has the full power to enter into this Agreement;

          15.1.2 It has obtained and will maintain all necessary rights and permissions for its and
Microsoft’s use of the Software Title, FPUs, Marketing Materials, Online Content, all information,
data, logos, and software or other materials provided to Microsoft and/or made available to Xbox
Live Users via Xbox Live (excluding those portions that consist of the Licensed Trademarks,
Security Technology and redistributable components of the so-called “XDK” in the form as delivered
to Publisher by Microsoft pursuant to an XDK License) (collectively, the “Publisher Content”), and
that all Publisher Content complies with all laws and regulations, and does not and will not
infringe upon or misappropriate any third party trade secrets, copyrights, trademarks, patents,
publicity, privacy or other proprietary rights.

          15.1.3 It shall comply with all laws, regulations, industry content rating requirements and
administrative orders and requirements within any applicable Sales Territory relating to the
distribution, sale and marketing of the Software Title, and shall keep in force all necessary
licenses, permits, registrations, approvals and/or exemptions throughout the term of this Agreement and for so
long as it is distributing, selling or marketing the Software Title in any applicable Sales
Territory.

Microsoft
Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

12

 

          15.1.4 The Software Title, Online Content and/or information, data, logos and software or
other materials provided to Microsoft and /or made available to Xbox Live Users via Xbox Live, do
not and shall not contain any messages, data, images or programs that are, by law, defamatory,
obscene or pornographic, or in any way violate any applicable laws or industry content rating
requirements (including without limitation laws of privacy) of the applicable Sales Territory(ies)
where the Software Title is marketed and/or distributed.

          15.1.5 The Online Content shall not harvest or otherwise collect information about Xbox Live
Users, including e-mail addresses, without the Xbox Live Users’ express consent; and the Online
Content shall not link to any unsolicited communication sent to any third party.

     15.2 Microsoft. Microsoft warrants and represents that it has the full power to enter into
this Agreement and it has not previously and will not grant any rights to any third party that are
inconsistent with the rights granted to Publisher herein.

     15.3 DISCLAIMER. EXCEPT AS EXPRESSLY STATED IN THIS SECTION 15, MICROSOFT PROVIDES ALL
MATERIALS (INCLUDING WITHOUT LIMITATION THE SECURITY TECHNOLOGY) AND SERVICES HEREUNDER ON AN “AS
IS” BASIS, AND MICROSOFT DISCLAIMS ALL OTHER WARRANTIES UNDER THE APPLICABLE LAWS OF ANY COUNTRY,
EXPRESS OR IMPLIED, REGARDING THE MATERIALS AND SERVICES IT PROVIDES HEREUNDER, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, OR WARRANTY OF FREEDOM FROM COMPUTER VIRUSES. WITHOUT LIMITATION,
MICROSOFT PROVIDES NO WARRANTY OF NON-INFRINGEMENT.

     15.4 EXCLUSION OF INCIDENTAL, CONSEQUENTIAL AND CERTAIN OTHER DAMAGES. TO THE MAXIMUM EXTENT
PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL MICROSOFT, ITS AFFILIATES, LICENSORS OR ITS
SUPPLIERS BE LIABLE FOR ANY SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES OF ANY KIND OR
NATURE WHATSOEVER, RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, INCLUDING
WITHOUT LIMITATION, LOST PROFITS OR LOST GOODWILL AND WHETHER BASED ON BREACH OF ANY EXPRESS OR IMPLIED
WARRANTY, BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR STRICT LIABILITY, REGARDLESS OF
WHETHER SUCH PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGE OR IF SUCH DAMAGE COULD HAVE BEEN REASONABLY FORESEEN.

     15.5 LIMITATION OF LIABILITY. THE MAXIMUM LIABILITY OF MICROSOFT TO PUBLISHER OR TO ANY THIRD
PARTY ARISING OUT OF THIS AGREEMENT WILL BE [***]. FURTHERMORE, UNDER NO CIRCUMSTANCES SHALL
MICROSOFT BE LIABLE TO PUBLISHER FOR ANY DAMAGES WHATSOEVER WITH RESPECT TO ANY CLAIMS RELATING TO
THE SECURITY TECHNOLOGY AND/OR ITS EFFECT ON ANY SOFTWARE TITLE OR FOR ANY STATEMENTS OR CLAIMS
MADE BY PUBLISHER, WHETHER IN PUBLISHER’S MARKETING MATERIALS OR OTHERWISE, REGARDING THE
AVAILABILITY OR OPERATION OF ANY ONLINE FEATURES.

16. Indemnity; Insurance. A claim for which indemnity may be sought hereunder is referred to as a
“Claim.”

     16.1 Mutual Indemnification. Each party hereby agrees to indemnify, defend, and hold the other
party harmless from any and all third party claims, demands, costs, liabilities, losses, expenses
and damages (including reasonable attorneys’ fees, costs, and expert witnesses’ fees) arising out
of or in connection with any claim that, taking the claimant’s allegations to be true, would result
in a breach by the indemnifying party of any of its representations, warranties or covenants set
forth in Section 15.

     16.2 Additional Publisher Indemnification Obligation. Publisher further agrees to indemnify,
defend, and hold Microsoft harmless from any and all third party claims, demands, costs,
liabilities, losses, expenses and damages (including reasonable attorneys’ fees, costs, and expert
witnesses’ fees) arising out of or in connection with any claim regarding any Software Title or FPU
including without limitation any claim relating to quality, performance, safety thereof, or arising
out of Publisher’s use of the Licensed Trademarks in breach of this Agreement.

     16.3 Notice and Assistance. The indemnified party shall: (i) provide the indemnifying party
reasonably prompt notice in writing of any Claim and permit the indemnifying party to answer and
defend such Claim through counsel chosen and paid by the indemnifying party; and (ii) provide
information, assistance and authority to help the indemnifying party defend such Claim. The
indemnified party may participate in the defense of any Claim at its own expense. The

Microsoft
Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

13

 

indemnifying party will not be responsible for any settlement made by the indemnified party without
the indemnifying party’s written permission, which will not be unreasonably withheld or delayed. In
the event the indemnifying party and the indemnified party agree to settle a Claim, the indemnified
party agrees not to publicize the settlement without first obtaining the indemnifying party’s
written permission.

     16.4 Insurance. Publisher shall maintain sufficient and appropriate insurance coverage to
enable it to meet its obligations under this Agreement and by law (whether Products Liability,
General Liability or some other type of insurance). For FPUs distributed in the Japan Sales
Territory, Publisher’s coverage will have minimum limits of the Japanese yen equivalent of [***]
per occurrence, with a deductible of not more than the Japanese yen equivalent of [***]. For FPUs
distributed in the Asian Sales Territory, Publisher’s coverage will have minimum limits of [***]
per occurrence (or its equivalent value in local currency as of the date of issuance), with a
deductible of not more than [***] (or its equivalent value in local currency as of the date of
issuance). For FPUs distributed outside of Japan and the Asian Sales Territories, Publisher shall
maintain Professional Liability and Errors & Omissions Liability Insurance (E&O) with policy limits
of not less than [***] per occurrence (or its equivalent value in local currency as of the date of
issuance), each claim with a deductible of not more than [***] (or its equivalent value in local
currency as of the date of issuance). Such insurance shall include coverage for infringement of any
proprietary right of any third party, including without limitation copyright and trademark
infringement as related to Publisher’s performance under this Agreement. The E&O insurance
retroactive coverage date will be no later than [***]. Publisher shall maintain an active policy,
or purchase an extended reporting period providing coverage for claims first made and reported to
the insurance company within [***] after [***]. Upon request, Publisher shall deliver to Microsoft
proof of such coverage. In the event that Publisher’s proof evidences coverage that Microsoft
reasonably determines to be less than that required to meet Publisher’s obligations created by this
Agreement, then Publisher agrees that it shall promptly acquire such coverage and notify Microsoft
in writing thereof.

17. Term and Termination

     17.1 Term. The term of this Agreement shall commence on the Effective Date and shall continue
until [***]. Unless one party gives the other notice of non-renewal within [***] of the end of the
then-current term, this Agreement shall automatically renew for successive [***] terms.

     17.2 Termination for Breach. If either party materially fails to perform or comply with this
Agreement or any provision thereof, and fails to remedy the default within [***] after the receipt
of notice to that effect, then the other party has the right, at its sole option and upon written
notice to the defaulting party, to terminate this Agreement upon written notice; provided that if
Publisher is the party that has materially failed to perform or comply with this Agreement, then
Microsoft has the right, but not the obligation, to suspend availability of the Online Content
during such [***] period. Any notice of default hereunder must be prominently labeled “NOTICE OF
DEFAULT”; provided, however, that if the default is of Sections 10, 12 or Sections 1 or 2 of
Exhibit 1, the Non-Disclosure Agreement, or an XDK License, then the non-defaulting party may
terminate this Agreement immediately upon written notice, without being obligated to provide a
[***] cure period. The rights and remedies provided in this section are not exclusive and are in
addition to any other rights and remedies provided by law or this Agreement. If the uncured default
is related to a particular Software Title or particular Online Content, then the party not in
default has the right, in its discretion, to terminate this Agreement its entirety or with respect
to the applicable Software Title or the particular Online Content. If Microsoft determines, at any
time prior to the Commercial Release of a Software Title or Online Content, that such Software
Title or Online Content does not materially comply with the requirements set forth in the Xbox 360
Publisher Guide or to any applicable laws, then Microsoft has the right, in Microsoft’s sole
discretion and notwithstanding any prior approvals given by Microsoft, to terminate this Agreement
without cost or penalty, as a whole or on a Software Title by Software Title, or Sales Territory by
Sales Territory basis upon written notice to Publisher with respect to such Software Title or Sales
Territory.

     17.3 Effect of Termination; Sell-off Rights. Upon termination or expiration of this Agreement,
Publisher has no further right to exercise the rights licensed hereunder or within the XDK License
and shall promptly cease all manufacturing of FPU through its Authorized Replicators and, other
than as provided below, cease use of the Licensed Trademarks. Publisher shall have a period of [***] , to
sell-off its inventory of FPUs existing as of the date of termination or expiration, after which
sell-off period Publisher shall immediately return all FPUs to an Authorized Replicator for
destruction. Publisher shall cause the Authorized Replicator to destroy all FPUs and issue to
Microsoft written certification by an authorized representative of the Authorized Replicator
confirming the destruction of FPUs required hereunder. All of Publisher’s obligations under this
Agreement shall continue to apply during such [***] sell-off period. If this Agreement is
terminated due to Publisher’s breach, at Microsoft’s option, Microsoft may require Publisher to
immediately destroy all FPUs not yet distributed to Publisher’s distributors, dealers and/or end
users and shall require all those distributing the FPU over which it has control to cease
distribution. Upon termination or expiration of this Agreement, Publisher shall continue to

Microsoft
Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

14

 

support existing Online Game Features for FPUs that have already been sold until the end of the
Minimum Commitment term.

     17.4 Cross-Default. If Microsoft has the right to terminate this Agreement, then Microsoft
may, at its sole discretion also terminate the XDK License. If Microsoft terminates the XDK License
due to a breach by Publisher, then Microsoft may, at its sole discretion also terminate this
Agreement.

     17.5 Survival. The following provisions shall survive expiration or termination of this
Agreement: Sections 2, 6.2.2 (as to the Minimum Commitment), 6.2.3, 8 and Sections 1, 2 and 5 of
Exhibit 1, 9.1-9.3, 10.3, 10.4, 11, 13.1, 14, 15, 16, 17.3, 17.5 and 18.

18. General

     18.1 Governing Law; Venue; Attorneys Fees. This Agreement is to be construed and controlled by
the laws of the State of Washington, U.S.A., and Publisher consents to exclusive jurisdiction and
venue in the federal courts sitting in King County, Washington, U.S.A., unless no federal
jurisdiction exists, in which case Publisher consents to exclusive jurisdiction and venue in the
Superior Court of King County, Washington, U.S.A. Publisher waives all defenses of lack of personal
jurisdiction and forum non conveniens. Process may be served on either party in the manner
authorized by applicable law or court rule. The English version of this Agreement is determinative
over any translations thereof. If either party employs attorneys to enforce any rights arising out
of or relating to this Agreement, the prevailing party is entitled to recover its reasonable
attorneys’ fees, costs and other expenses. This choice of jurisdiction provision does not prevent
Microsoft from seeking injunctive relief with respect to a violation of intellectual property
rights or confidentiality obligations in any appropriate jurisdiction.

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

	 	 	 	 	 	 	 

	Publisher:	 	MAJESCO ENTERTAINMENT COMPANY	 	Microsoft:	 	MICROSOFT LICENSING, GP
	

	 	160 Raritan Center Parkway
Edison, NJ 08837	 	 	 	6100 Neil Road, Suite 100
Reno, NV 89511-1137
	 
	 	 	 	 	 	 
	Attention:
	 	Catherine Biebelberg	 	 	 	 
	 

	 	 	 	 	 	 
	Fax:

	 	732-225-5451	 	Attention:
	 	Xbox Accounting Services
	 

	 	 	 	 	 	 
	Phone:

	 	732-225-8910	 	with a cc to:
	 	MICROSOFT CORPORATION
	 

	 	 	 	 	 	 
	Email:

	 	catherineb@majescoentertainment.com	 	 	 	One Microsoft Way
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Redmond, WA 98052-6399
	 
	 	 	 	 	 	 
	 

	 	 	 	Attention:
	 	Law & Corporate Affairs Department
	 

	 	 	 	 	 	Assoc. General Counsel,Consumer Legal
	 

	 	 	 	 	 	Group (H&ED)
	 

	 	 	 	 	 	Fax: (425) 936-7329

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

     18.3 No Delay or Waiver. No delay or failure of either party at any time to exercise or
enforce any right or remedy available to it under this Agreement, and no course of dealing or
performance with respect thereto, will constitute a waiver of any such right or remedy with respect
to any other breach or failure by the other party. The express waiver by a party of any right or
remedy in a particular instance will not constitute a waiver of any such right or remedy in any
other instance. All rights and remedies will be cumulative and not exclusive of any other rights or
remedies.

     18.4 Assignment. Publisher may not assign this Agreement or any portion thereof, to any third
party unless Microsoft expressly consents to such assignment in writing. Microsoft will have the
right to assign this Agreement and/or any portion thereof as Microsoft may deem appropriate and/or
authorize its affiliates or partners to perform this Agreement in whole or part on its behalf. For
the purposes of this
Agreement, a merger, consolidation, or other corporate reorganization, or a transfer or sale
of a controlling interest in a party’s stock, or of all or substantially all of its assets is to be
deemed to be an

Microsoft
Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

15

 

assignment. This Agreement will inure to the benefit of and be binding upon the parties, their
successors, administrators, heirs, and permitted assigns.

     18.5 No Partnership. Microsoft and Publisher are entering into a license pursuant to this
Agreement and nothing in this Agreement is to be construed as creating an employer-employee
relationship, a partnership, a franchise, or a joint venture between the parties.

     18.6 Severability. if any provision of this Agreement is found invalid or unenforceable
pursuant to judicial decree or decision, the remainder of this Agreement shall remain valid and
enforceable according to its terms. The parties intend that the provisions of this Agreement be
enforced to the fullest extent permitted by applicable law. Accordingly, the parties agree that if
any provisions are deemed not enforceable, they are to be deemed modified to the extent necessary
to make them enforceable.

     18.7 Injunctive Relief. The parties agree that Publisher’s threatened or actual unauthorized
use of the Licensed Trademarks or other Microsoft proprietary rights whether in whole or in part,
may result in immediate and irreparable damage to Microsoft for which there is no adequate remedy
at law. Either party’s threatened or actual breach of the confidentiality provisions may cause
damage to the non-breaching party, and in such event the non-breaching party is entitled to
appropriate injunctive relief from any court of competent jurisdiction without the necessity of
posting bond or other security.

     18.8 Entire Agreement; Modification; No Offer. This Agreement (including the Concept, the
Non-Disclosure Agreement, the Xbox 360 Publisher Guide, written amendments thereto, and other
incorporated documents) and the XDK License constitute the entire agreement between the parties
with respect to the subject matter hereof and merges all prior and contemporaneous communications.
This Agreement shall not be modified except by a written agreement dated subsequent hereto signed
on behalf of Publisher and Microsoft by their duly authorized representatives. Neither this
Agreement nor any written or oral statements related hereto constitute an offer, and this Agreement
is not legally binding until executed by both parties hereto.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
Effective Date on the dates indicated below.

	 	 	 
	MICROSOFT LICENSING, GP	 	MAJESCO ENTERTAINMENT COMPANY
	/s/ Roxanne V. Spring
	 	/s/ Jesse Sutton
	 

	 	 
	By (sign)

	 	By (sign)
	Roxanne V. Spring
	 	Jesse Sutton
	 

	 	 
	Name (Print)

	 	Name (Print)
	 
	 	President
	 

	 	 
	Title

	 	Title
	September 13, 2005
	 	September 8, 2005
	 

	 	 
	Date

	 	Date

Microsoft
Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

16

 

EXHIBIT 1

PAYMENTS

1. Platform Royalty

     a. For each FPU manufactured during the term of this Agreement, 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 1.d of this Exhibit 1 (Table 3).

     b. The royalty fee 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). To determine the applicable royalty rate 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 royalty fee is then as set forth in Table 2 based on 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, [***] royalty rates will apply to that Software Title and the royalty rate is determined in
Table 2 by the Manufacturing Region. If the Software Title were manufactured in the European
Manufacturing Region, the royalty fee would be [***] per FPU. If the Software Title were
manufactured in Asian Manufacturing Region, the royalty fee would be [***] per FPU.

     [***]

     c. [***] submit to Microsoft, at least [***] for a Software Title, a completed and signed
“Royalty Tier Selection Form” in the form attached to this Agreement as Exhibit 2 for each Sales
Territory. The selection indicated in the Royalty Tier Selection Form will only be effective once
the Royalty Tier Selection Form has been accepted by Microsoft. If Publisher does not submit a
Royalty Tier Selection Form as required hereunder, the royalty fee for such Software Title will
default to [***], regardless of the actual Threshold Price. The selection of a royalty tier for a
Software Title in a Sales Territory is binding for the life of that Software Title even if the
Threshold Price is reduced following the Software Title’s Commercial Release.

     d. Unit Discounts. Publisher is eligible for a discount to FPUs manufactured for a particular
Sales Territory (a “Unit Discount”) based on the number of FPUs that have been manufactured for
sale in that Sales Territory as described in Table 3 below. Except as provided in Section 4 below,
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 for a particular Software Title. The discount will be rounded up to the nearest Cent, Yen or
hundredth of a Euro.

     [***]

               i. For North American Sales Territory:

                    [***]

               ii. For Japan Sales Territory:

                    [***]

2. Payment Process

     a. [***]. Publisher shall not authorize its Authorized Replicators to begin production until
such time as [***]. Depending upon Publisher’s credit worthiness, Microsoft may, but is not
obligated to, offer Publisher credit terms for the payment of royalties due under this Agreement
within [***] of receipt of invoice. All payments will be made by wire transfer only, in accordance
with the payment instructions set forth in the Xbox 360 Publisher Guide.

     b. Publisher will pay royalties for FPUs manufactured in the North American Manufacturing
Region in US Dollars, for FPUs manufactured in the Asian Manufacturing Region in Japanese Yen and
for FPUs manufactured in the European Manufacturing Region in Euros.

Microsoft
Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

1

 

3. Billing Address

     a. Publisher may have only two “bill to” addresses for the payment of royalties under this
Agreement, one for the North American Manufacturing Region and one for the Asian Manufacturing
Region. If Publisher desires to have a “bill-to” address in a European country, Publisher (or a
Publisher Affiliate) must execute an MIOL Enrollment Form in the form attached to this Agreement as
Exhibit 3.

Publisher’s billing address(es) is as follows:

							

	North America Manufacturing Region:
	 	 	 	Asian Manufacturing Region (if different):
	 
	Name:

	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 
	Address:

	 	 	 	Address:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Attention:

	 	 	 	Attention:	 	 
	 

	 	 
	 	 	 	 
	Email address:

	 	 	 	Email address:	 	 
	 

	 	 
	 	 	 	 
	Fax:

	 	 	 	Fax:	 	 
	 

	 	 
	 	 	 	 
	Phone:

	 	 	 	Phone:	 	 
	 

	 	 
	 	 	 	 

4. Asia Simship Program

The purpose of this program is to encourage Publisher to release Japanese FPUs or North American
FPUs, that have been multi-region signed to run on NTSC-J boxes (hereinafter collectively referred
to as “Simship Titles”), in Hong Kong, Singapore and Taiwan (referred to as “Simship Territory”) at
the same time as Publisher releases the Software Title in the Japan and/or North American Sales
Territories. In order for a Software Title to qualify as a Simship Title, Publisher must release
the Software Title in the Simship Territory on the same date as the Commercial Release date of such
Software Title in the Japan and/or North American Sales Territories, wherever the Software Title
was first Commercially Released (referred to as “Original Territory”). To the extent that a
Software Title qualifies as a Simship Title, the applicable royalty tier (under Section 1.b of this
Exhibit 1 above) and Unit Discount (under Section 1.d of this Exhibit 1 above) is determined as if
all FPUs of such Software Title manufactured for distribution in both the Original Territory and
the Simship Territory were manufactured for distribution in the Original Territory. For example, if
a Publisher initially manufactures [***] FPUs of a Software Title for the Japan Sales Territory and
simships [***] of those units to the Simship Territory, the royalty fee for all of the FPUs is
determined by [***]. In this example, Publisher would also receive a [***] Unit Discount on [***]
units for having exceeded the Unit Discount level specified in Section 1. d of this Exhibit 1 above
applicable to the Japan Sales Territory. Publisher must provide Microsoft with written notice of
its intention to participate in the Asian Simship Program with respect to a particular Software
Title at least [***] prior to manufacturing any FPUs it intends to qualify for the program. In its
notice, Publisher shall provide all relevant information, including total number of FPUs to be
manufactured, number of FPUs to be simshipped into the Simship Territory, date of simship, etc.
Publisher remains responsible for complying with all relevant import, distribution and packaging
requirements as well as any other applicable requirements set forth in the Xbox 360 Publisher
Guide.

5. Online Content

     a. For the purpose of this Section 5, the following capitalized terms have the
following meanings:

     [***]

     b. Publisher may, from time to time, submit Online Content to Microsoft for Microsoft to
distribute via Xbox Live. [***]

     c. [***]

	     d.	 	[***]

     e. Within [***] after the end of [***] with respect to which Microsoft owes Publisher any
Royalty Fees, Microsoft shall furnish Publisher with a statement, together with payment for any
amount shown thereby to be due to Publisher. The statement will contain information sufficient to
discern how the Royalty Fees were computed.

Microsoft
Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

2

 

6. Xbox Live Billing and Collection

Microsoft is responsible for billing and collecting all fees associated with Xbox Live, including
fees for subscriptions and/or any Online Content for which a Xbox Live User may be charged. [***].

7. Taxes

     a. The amounts to be paid by either party to the other do not include any foreign, U.S.
federal, state, local, municipal or other governmental taxes, duties, levies, fees, excises or
tariffs, arising as a result of or in connection with the transactions contemplated under this
Agreement including, without limitation, (i) any state or local sales or use taxes or any value
added tax or business transfer tax now or hereafter imposed on the provision of any services to the
other party under this Agreement, (ii) taxes imposed or based on or with respect to or measured by
any net or gross income or receipts of either party, (iii) any franchise taxes, taxes on doing
business, gross receipts taxes or capital stock taxes (including any minimum taxes and taxes
measured by any item of tax preference), (iv) any taxes imposed or assessed after the date upon
which this Agreement is terminated, (v) taxes based upon or imposed with reference to either
parties’ real and/or personal property ownership and (vi) any taxes similar to or in the nature of
those taxes described in (i), (ii), (iii), (iv) or (v) above, now or hereafter imposed on either
party (or any third parties with which either party is permitted to enter into agreements relating
to its undertakings hereunder) (all such amounts, together with any penalties, interest or any
additions thereto, collectively “Taxes”). Neither party is liable for any of the other party’s
Taxes incurred in connection with or related to the sale of goods and services under this
Agreement, and all such Taxes are the financial responsibility of the party obligated to pay such
taxes as determined by the applicable law, provided that both parties shall pay to the other the
appropriate Collected Taxes in accordance with subsection 6.b below. Each party agrees to
indemnify, defend and hold the other party harmless from any Taxes (other than Collected Taxes,
defined below) or claims, causes of action, costs (including, without limitation, reasonable
attorneys’ fees) and any other liabilities of any nature whatsoever related to such Taxes to the
extent such Taxes relate to amounts paid under this Amendment.

     b. Any sales or use taxes described in 6.a above that (i) are owed by either party solely as a
result of entering into this Agreement and the payment of the fees hereunder, (ii) are required to
be collected from that party under applicable law, and (iii) are based solely upon the amounts
payable under this Agreement (such taxes the “Collected Taxes”), will be stated separately as
applicable on payee’s invoices and will be remitted by the other party to the payee, upon request
payee shall remit to the other party official tax receipts indicating that such Collected Taxes
have been collected and paid by the payee. Either party may provide the other party an exemption
certificate acceptable to the relevant taxing authority
(including without limitation a resale certificate) in which case payee shall not collect the taxes
covered by such certificate. Each party agrees to take such commercially reasonable steps as are
requested by the other party to minimize such Collected Taxes in accordance with all relevant laws
and to cooperate with and assist the other party, in challenging the validity of any Collected
Taxes or taxes otherwise paid by the payor party. Each party shall indemnify and hold the other
party harmless from any Collected Taxes, penalties, interest, or additions to tax arising from
amounts paid by one party to the other under this Agreement, that are asserted or assessed against
one party to the extent such amounts relate to amounts that are paid to or collected by one party
from the other under this section. If any taxing authority refunds any tax to a party that the
other party originally paid, or a party otherwise becomes aware that any tax was incorrectly and/or
erroneously collected from the other party, then that party shall promptly remit to the other party
an amount equal to such refund, or incorrect collection as the case may be plus any interest
thereon.

     c. If taxes are required to be withheld on any amounts otherwise to be paid by one party to
the other, the paying party shall deduct such taxes from the amount otherwise owed and pay them to
the appropriate taxing authority. At a party’s written request and expense, the parties shall use
reasonable efforts to cooperate with and assist each other in obtaining tax certificates or other
appropriate documentation evidencing such payment, provided, however, that the responsibility for
such documentation shall remain with the payee party. If Publisher is required by any non-U.S.A.
government to withhold income taxes on payments to Microsoft, then Publisher may deduct such taxes
from the amount owed Microsoft and shall pay them to the appropriate tax authority, provided that
within [***] of such
payment, Publisher delivers to Microsoft an official receipt for any such taxes withheld or
other documents necessary to enable Microsoft to claim a U.S.A. Foreign Tax Credit.

     d. This Section 7 shall govern the treatment of all taxes arising as a result of or in
connection with this Agreement notwithstanding any other section of this Agreement.

8. Audit

During the term of this Agreement and for [***] each party shall keep all usual and proper records
related to its performance under this Agreement, including but not limited to audited financial
statements and support for all transactions related to the

Microsoft
Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

3

 

ordering, production, inventory, distribution and billing/invoicing information. Such records,
books of account, and entries will be kept in accordance with generally accepted accounting
principles. Either party (the “Auditing Party”) may audit and/or inspect the other party’s (the
“Audited Party”) records no more than [***] in any [***] period in order to verify compliance with
the terms of this Agreement. The Auditing Party may, upon reasonable advance notice, audit the
Audited Party’s records and consult with the Audited Party’s accountants for the purpose of
verifying the Audited Party’s compliance with the terms of this Agreement and for a period of
[***]. Any such audit will be conducted during regular business hours at the Audited Party’s
offices. Any such audit will be paid for by Auditing Party unless Material discrepancies are
disclosed. As used in this section, “Material” means [***]. If Material discrepancies are
disclosed, the Audited Party agrees to pay the Auditing Party for [***].

Microsoft
Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

4

 

EXHIBIT 2

XBOX 360 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:

	1.	 	THIS FORM MUST BE SUBMITTED AT LEAST [***]. IF THIS FORM IS NOT SUBMITTED ON TIME,
THE ROYALTY RATE WILL DEFAULT TO [***] FOR THE APPLICABLE SALES TERRITORY.
	 
	2.	 	A SEPARATE FORM MUST BE SUBMITTED FOR EACH SALES TERRITORY.

	1.	 	Publisher Name:_____________________________
	 
	2.	 	Xbox 360 Software Title Name: _____________________________

3.
    XeMID Number: _____________________________ 

4.    Manufacturing Region (check one):

——  North American

——  European

——  Asian

5. Sales Territory (check one):

——  North American Sales Territory

——  Japan Sales Territory

——  European Sales Territory

——  Asian Sales Territory

6. Final
Certification Date: _____________________________

7. Select Royalty Tier: (check one): [***]

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)

 	 
	 	 	 
	 	 	 
	 	 	 
	 

Microsoft Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

1

 

EXHIBIT 3

XBOX 360 PUBLISHER ENROLLMENT FORM

PLEASE COMPLETE THIS FORM, 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 [***].

     This Xbox 360 Publisher License Enrollment (“Enrollment”) is entered into between Microsoft
Ireland Operations Ltd. (“MIOL”) and Majesco Entertainment Company (“Publisher”), and is effective
as of the latter of the two signatures identified below. The terms of that certain Xbox 360
Publisher License Agreement signed by Microsoft Licensing GP and Majesco Entertainment Company,
dated on or about _________________ (the “Xbox 360 PLA”) are incorporated herein by reference.

     1. Term. This Enrollment will expire on the date on which the Xbox 360 PLA expires, unless it
is terminated earlier as provided for in that agreement.

     2. 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 Xbox 360 PLA, including any amendments thereto, and agree to be bound by those; (ii)
it is either the entity that signed the Xbox 360 PLA or its affiliate; and (iii) the information
that provided herein is accurate.

     3. Notices; Requests. All notices and requests in connection with this
Enrollment are deemed given on (i) the
[***] after they are deposited in the applicable country’s mail system
([***] if sent internationally), postage prepaid, certified or registered,
return receipt requested; or (ii) [***] 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,	 	 
	Address:

	 	 	 	 	 	 	 	Atrium Building Block B,	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Carmenhall Road,	 	 
	 

	 	 	 	 	 	 	 	Sandyford Industrial Estate	 	 
	 

	 	 	 	 	 	 	 	Dublin 18	 	 
	Attention:

	 	 	 	 	 	 	 	Ireland	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	Fax:

	 	 	 	 	 	 	 	Fax: 353 1 706 4110	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	Phone:

	 	 	 	 	 	Attention:
	 	MIOL Xbox Accounting Services	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	Email:

	 	 	 	 	 	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]

Microsoft Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

1

 

     4. Billing Address. For purposes of the Xbox 360 PLA, Exhibit 1, Section 3, 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.

	 	MAJESCO ENTERTAINMENT COMPANY
	 
	 	 
	 

	 	 
	By (sign)

	 	By (sign)
	 
	 	 
	 

	 	 
	Name (Print)

	 	Name (Print)
	 
	 	 
	 

	 	 
	Title

	 	Title
	 
	 	 
	 

	 	 
	Date (Print mm/dd/yy)

	 	Date (Print mm/dd/yy)

Microsoft Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

2

 

EXHIBIT 4

AUTHORIZED AFFILIATES

Publisher affiliates authorized to perform the rights and obligations under this Agreement are:

	 	 	 	 	 	 	 	 	 	 	 

	I.

	 	Name:
	 	 
	 	
	II. 	Name:	 	 
	 

	 	 	 	 
	 	 	 	 	 	 
	 

	 	Address:
	 	 	 	 	 	Address:	 	 
	 

	 	 	 	 
	 	 	 	 	 	 
	 
	 

	 	 	 	 
	 	 	 	 	 	 
	 

	 	Telephone:
	 	 	 	 	 	Telephone:	 	 
	 

	 	 	 	 
	 	 	 	 	 	 
	 

	 	Fax:
	 	 	 	 	 	Fax:	 	 
	 

	 	 	 	 
	 	 	 	 	 	 

Publisher will provide Microsoft at least [***] written notice of the name and address of each
additional Publisher affiliate that Publisher wishes to add to this Exhibit 4. Any additional
Publisher affiliate may not perform any rights or obligations under this Agreement until it has
signed and submitted a Publisher Affiliate Agreement (attached below) to Microsoft

PUBLISHER AFFILIATE AGREEMENT

For good and valuable consideration, ______________________, a corporation of
______________________
(“Publisher Affiliate”) hereby covenants and agrees with Microsoft
Licensing, GP, a Nevada general partnership that Publisher Affiliate will comply
with all obligations of ________________________(“Publisher”) pursuant to that certain Xbox 360
Publisher License Agreement between Microsoft and Publisher dated ______________, 200___ (the “Xbox
360 PLA”) and to be bound by the terms and conditions of this Publisher Affiliate Agreement.
Capitalized terms used herein and not otherwise defined will have the same meaning as in the
Agreement.

Publisher Affiliate acknowledges that its agreement herein is a condition for Publisher Affiliate
to exercise the rights and perform the obligations established by the terms of the Xbox 360 PLA.
Publisher Affiliate and Publisher will be jointly and severally liable to Microsoft for all
obligations related to Publisher Affiliate’s exercise of the rights, performance of obligations, or
receipt of Confidential Information under the Xbox 360 PLA. This Publisher Affiliate Agreement may
be terminated in the manner set forth in the Xbox 360 PLA. Termination of this Publisher Affiliate
Agreement does not terminate the Xbox 360 PLA with respect to Publisher or any other Publisher
Affiliates.

IN WITNESS WHEREOF, Publisher Affiliate has executed this agreement as of the date set forth below.
All signed copies of this Publisher Affiliate Agreement will be deemed originals.

___________________________

Signature

___________________________
Title

___________________________

Name (Print)

___________________________

Date

Microsoft Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

1

 

EXHIBIT 5

NON-DISCLOSURE AGREEMENT

Microsoft Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

1

 

EXHIBIT 6

JAPAN AND ASIA ROYALTY INCENTIVE PROGRAM

1. Overview

To encourage Publisher to release localized Software Titles in the Japan and Asian Sales
Territories during [***], Publisher may qualify for a special incentive payment equal to [***]
according to the terms of this Exhibit 6 (the “Royalty Incentive Program”).

2. Qualified FPUs

In order to qualify for the Royalty Incentive Program, the following requirements must be met.

     a. Approved Concept Submission Form. Publisher must send Microsoft a completed Concept
submission form (in a format to be provided by Microsoft) for any Software Titles Publisher intends
to qualify for the Royalty Incentive Program no later than [***]. In order for FPUs to qualify for
the Royalty Incentive Program, Publisher’s Concept for the Software Title must be received on time
and approved by Microsoft.

     b. J-signed. Only FPUs that are “J-signed” (as defined in the Xbox 360 Publisher Guide) to
technically restrict their operation to Xbox consoles made for the Japan and Asian Sales
Territories will qualify for the Royalty Incentive Program.

     c. [***]

     d. [***]

     e, Public Relations. In order to qualify for the Royalty Incentive Program, Publisher must
allow Microsoft to publicly disclose that the Software Title will be released on Xbox 360 in the
Japan or Asian Sales Territories.

     f. Timely Payment. Publisher must pay royalty fees on time in accordance with this Agreement
or its credit arrangement with Microsoft in order to qualify for the Royalty Incentive Program.

3. Payment

     a. Manufacturing Periods. The Royalty Incentive Program will only apply to qualified FPUs
manufactured [***] (as applicable for the FPU).

     b. Incentive Payments. Microsoft will make royalty incentive payments within [***] in which
qualified FPUs were manufactured.

     c. Limit. Subject to the terms of this Exhibit 6, Publisher’s royalty incentive payment will
equal [***]. Publisher acknowledges that the Royalty Incentive Payment will only apply to [***].

Microsoft
Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

1

 

EXHIBIT 7

XBOX 360 LIVE INCENTIVE PROGRAM

1. Xbox 360 Live Incentive Program

To encourage Publisher to support functionality for Xbox Live in its Xbox 360 Software Titles and
to drive increased usage of Xbox Live via Xbox 360, Publisher may qualify for certain payments
based on the amount of Xbox Live Market Share (defined in Section 2.a. of this Exhibit 7 below)
created by Publisher’s Multiplayer Software Titles (defined in Section 2.c. of this Exhibit 7
below). Each Accounting Period (defined in Section 3.c. of this exhibit below), Microsoft will
calculate Publisher’s Xbox Live Market Share. If it is above [***], then Microsoft will pay
Publisher an amount [***]. The basic equation for calculating the Publisher’s payment under this
program is:

[***]

The following sections define the elements of this basic equation.

Notwithstanding anything herein to the contrary, use of or revenue derived from online games for
which an end user pays a subscription separate from any account established for basic use of Xbox
Live, are excluded from this Xbox 360 Live Incentive Program.

2. Xbox Live Market Share a.

     a.“Xbox Live Market Share” = [***].

     b.

“Unique User Market Share” means [***].

     c. “Multiplayer Software Titles” means a Software Title for Xbox 360 that supports real-time
multiplayer game play.

     d.

  “[***] Unique Users” means [***].

     e.
“Paying Subscriber” means [***].

     f.

“[***] Unique User Market Share” means [***].

     g.

“[***] Unique Users” means the [***].

     h.

  “New Subscriber Market Share” means [***].

     i. “New Subscriber” means a Paying Subscriber who pays for an Xbox Live account for the first
time. A New Subscriber is attributed to the first Multiplayer Software Title he or she plays, even
if such play was during a free-trial period which was later converted into a paying subscription.
Each Paying Subscriber can only be counted as a New Subscriber once.

3. Participation Pool

     
a.

  “Participation Pool” means [***].

     
b. “Subscription Revenue” means
[***].

     c. “Accounting Period” means a [***], within the Term (defined below); provided that if the
Effective Date of this Agreement or the expiration date of this program falls within such [***],
then the applicable payment calculation set forth below shall be made for a partial Accounting
Period, as appropriate.

Microsoft Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

1

 

4. Example

[***]

5. Term

This Xbox 360 Live Incentive Program will be available for [***]. Microsoft reserves the right to
change the weights for averaging set forth in Section 2.a. of this exhibit upon written notice to
Publisher, but no more frequently than [***].

6. Payments

In the event Publisher qualifies for a payment under this program during an Accounting Period,
Microsoft shall furnish Publisher with a statement, together with payment for any amount shown
thereby to be due to Publisher within [***].

Microsoft
Confidential

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the
Securities Exchange Act of 1934.

2

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