Document:

Exhibit 10.68

[***] DENOTES CONFIDENTIAL MATERIALS OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT

DP#349485

AMENDMENT TO THE

XBOX 360 PUBLISHER LICENSING AGREEMENT

(Platinum/Classic
Hits Program)

This Amendment to the Xbox 360 Publisher License
Agreement (this “Amendment”) is entered into and effective as of October 1,
2006 (the “Amendment Effective Date”) by and between Microsoft Licensing, GP, a
Nevada general partnership (“Microsoft”), and ACTIVISION
INC. (“Publisher”), and supplements that certain Xbox 360 Publisher
License Agreement between the parties dated as of December 1, 2006, as amended
(the “Xbox 360 PLA”).

RECITALS

A.            Microsoft
and Publisher entered into the Xbox 360 PLA to establish the terms under which
Publisher may publish video games for Microsoft’s Xbox 360 video game system.

B.            The
parties now wish to amend certain terms of the Xbox 360 PLA for Publisher’s
continued manufacture and distribution of video games for the Xbox 360.

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

1.             Definitions;
Interpretation

1.1           “Standard FPU” means an
FPU of a Software Title which is not a Hits FPU (defined below in Section 2.1).

1.2           Except as expressly
provided otherwise in this Amendment, capitalized terms shall have the same
meanings ascribed to them in the Xbox 360 PLA or its amendments.

1.3           The terms of the Xbox
360 PLA are incorporated by reference, and except and to the extent expressly
modified by this Amendment or any previous amendments, the Xbox 360 PLA shall
remain in full force and effect and is hereby ratified and confirmed.  In the event of any conflict between this
Amendment and the Xbox 360 PLA or any prior amendments thereto, the terms of
this Amendment shall control.  In the
event of any conflict between this Amendment and the Xbox 360 Publisher Guide,
the terms of this Amendment shall control.

2.             Hits Programs

2.1           Publisher may elect to
participate in certain Xbox 360 Platinum or Classic Hits or Platinum or Classic
Family Hits programs (collectively referred to herein as “Hits Programs”) for
qualified Software Titles (each unit of such Software Title qualified and
participating in a Hits Program is referred to herein as a “Hit FPU”).  If Publisher elects to participate in a Hits
Program, Publisher must provide Microsoft a) at least [***] days notice of its
intent to have a certain Software Title participate in the Hits Program; and b)
a completed and signed Hits Programs Election Form in the form attached hereto
as Exhibit 1 no later than [***] business days days prior to the
targeted Commercial Release of the Hit FPU. 
If a Software Title meets the applicable participation criteria in a
particular Sales Territory at the time of the targeted Commercial Release date
of the Hit FPU and Microsoft receives the Hits Programs Election Form on time,
Publisher is authorized to manufacture and distribute Hit FPUs in such Sales
Territory and at the royalty rate in Table 2 of Section 3 of this Amendment
applicable to “Hit FPUs.”  In order for a
Software Title to qualify as a Hits FPU in a Sales Territory, the following
conditions, as applicable per Hits Program, must be satisfied:

2.1.1        For all Hits Programs, the
Software Title must have been commercially available as a Standard FPU in the
applicable Sales Territory for at least [***] continuous months but not more
than [***] months.  Notwithstanding the
foregoing, a Software Title intended to qualify as Hit FPU in the Japan or
Asian Sales Territories during the period starting on the Amendment Effective
Date until June 30, 2007 may qualify after [***] months.

 1
 

2.1.2        To qualify as a Platinum
or Classic Family Hit, the Software Title must (i) have received an “E,”
or, in the event such rating is officially adopted by the ESRB, an “E10” rating
from the ESRB; a “PEGI 3+” or “PEGI 7+” rating in Europe, an “A: All Ages”
rating from CERO in Japan and/or an equivalent rating in the applicable Sales
Territory (to the extent Software Titles are rated by regulatory boards within
the applicable Sales Territory); and (ii) be character based and/or
appeal, as determined by Microsoft in its sole good faith discretion, to
children 12 years of age and younger. 
Notwithstanding the foregoing, annual sports titles will not qualify for
the Platinum Family Hits program.

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

2.1.4        As of the date Publisher
wishes to Commercially Release the Software Title as a Hits FPU, Publisher must
have manufactured the following minimum quantities of Standard FPUs of the
Software Title for the applicable time period, Sales Territory and Hits
Program.

Table 1: Manufacturing Requirements

From the Amendment Effective Date
to March 31, 2008

 

	
   

  	
   

  	
  NA

  	
   

  	
  EU

  	
   

  	
  Japan

  	
   

  	
  Asia

  	
   

  
	
  Platinum
  or Classic Hits

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Platinum or Classic Family Hits

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

From April 1, 2008 to the
end of the term of the Xbox 360 PLA

 

	
  Platinum
  or Classic Hits

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Platinum or Classic Family Hits

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

2.1.5        Software Titles in the
European Sales Region that had an original Commercial Release date on Xbox 360
before December 31, 2005 may qualify to join the launch of the Classics Program
in Europe if they manufactured in excess of [***] units as opposed to the [***]
listed above.  This is a one time only
choice and the Publisher must confirm its intent to participate by submitting
an Exhibit 1 form no later than September 15, 2006.

2.2           All Marketing Materials
for a Hit FPU must comply with all Microsoft branding requirements as may be
required in each Sales Territory and Publisher shall submit all such Marketing
Materials to Microsoft for its approval in accordance with the Xbox 360 PLA.  Notwithstanding the foregoing, all Hit FPUs
must comply with the basic branding and other requirements for Marketing
Materials set forth in the Xbox 360 Publisher Guide.

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

2.4           Publisher acknowledges
that Microsoft may change any of the qualifications for participation in a Hit Program
upon forty-five (45) days advanced written notice to Publisher.

3.             New Royalty Tables

3.1           The royalty rate tables
in Section 1 of Exhibit A of the Xbox PLA are hereby replaced by the following:

Table 1: Threshold Price per Sales
Territory

 

	
  

  	
   

  	
  North America WSP

  	
   

  	
  Europe WSP

  	
   

  	
  Japan SRP

  	
   

  	
  Asia WSP (US$)*

  	
   

  
	
  Tier A

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Tier B

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Hits
  FPU

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

*This is the U.S. dollar equivalent of local currency
in the Asian Sales Territory.

 

 2
 

Table 2: Royalty Rate per Manufacturing
Region

 

	
  

  	
   

  	
  North America

  	
   

  	
  Europe

  	
   

  	
  Asia

  	
   

  
	
  Tier A

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Tier B

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Hits
  FPU

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

For purposes of clarification, none of the other
royalty provisions of the Xbox 360 PLA are changed by this Amendment.  The addition of the “Hits FPU” row in Table 1
above establishes the allowed Wholesale Price for each Sales Territory (except
Japan, which has a Suggested Retail Price) at which the Publisher may sell a
Hit FPU.  If Publisher desires to sell a
Hit FPU for a higher Wholesale or Suggested Retail Price, then that Software
Title will not qualify as a Hit FPU and the Publisher must choose Tier A or
Tier B royalty rate.  The addition of the
“Hits FPU” row in Table 2 above establishes the royalty rate for hit FPUs
manufactured in the three Manufacturing Regions.

4.             Asia Simship Program

Section 4 of Exhibit 1 to the Xbox 360 PLA is hereby
deleted in its entirety and replaced by the following:

The
purpose of this program is to encourage Publisher to release Japanese, North
American or European 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, European 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, European 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 the applicable
tier based on the Suggested Retail Price set forth in the Japan Sales Territory.  In this example, Publisher would also receive
a [***] Discount on [***] units for having exceed 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 ten
(10) days 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.             North American Sales
Territory

Chile is hereby added to the definition of the North
American Sales Territory.

6.             Selling FPUs Across
Sales Territories

For the purpose of clarification, Publisher may not
sell FPUs in a certain Sales Territory that were manufactured and paid for at a
different royalty tier than the royalty tier selected for that Sales
Territory.  For example, if Publisher
were to manufacture FPUs for sale in the Asian Sales Territory, where it has
selected and paid Tier B royalties, Publisher could not sell those FPUs in the
European Sales Territory where it had selected a Tier A royalty rate.  In other words, a Publisher may only sell
FPUs in a Sales Territory for which it paid the royalty rate that was selected
for that Sales Territory.

 3
 

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

	
  MICROSOFT LICENSING, GP

  	
   

  	
  ACTIVISION

  
	
   

  	
   

  	
   

  
	
  /s/ Roxanne V.
  Spring

  	
   

  	
  /s/ Greg Deutsch

  
	
  By (sign)

  	
   

  	
  By (sign)

  
	
   

  	
   

  	
   

  
	
  Roxanne V.
  Spring

  	
   

  	
  Greg Deutsch

  
	
  Name (print)

  	
   

  	
  Name (print)

  
	
   

  	
   

  	
   

  
	
  Sr. Xbox Manager

  	
   

  	
  Vice President, Business and Legal Affairs

  
	
  Title

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
  12-8-06

  	
   

  	
  12-1-06

  
	
  Date (print
  mm/dd/yy)

  	
   

  	
  Date (print mm/dd/yy)

  

 4
 

DP#349485

EXHIBIT
1

XBOX
360 HITS PROGRAMS ELECTION FORM

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

NOTES:

·      THIS FORM
MUST BE SUBMITTED BY A PUBLISHER AT LEAST TEN (10) BUSINESS DAYS PRIOR TO THE
TARGET COMMERCIAL RELEASE DATE FOR A SOFTWARE TITLE IN A HITS PROGRAM IN ANY
SALES TERRITORY.

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

	
  1)

  	
  Publisher Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2)

  	
  Xbox 360 Software Title Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3)

  	
  XMID Number:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4)

  	
  Hits Program (circle one)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
             Platinum
  Hits

  	
             Platinum
  Family Hits

  	
   

  	
   

  	
   

  
	
   

  	
             Classic
  Hits

  	
             Classic
  Family Hits

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5)

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

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  _____ North
  American Sales Territory

  	
  _____ Japan Sales Territory

  	
   

  	
   

  	
   

  
	
   

  	
  _____ European
  Sales Territory

  	
  _____ Asian Sales Territory

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6)

  	
  Date of Commercial Release of Software Title in
  applicable Sales Territory_________________

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7)

  	
  Number of Standard FPUs manufactured to date for the
  Software Title in the applicable Sales Territory: ___________

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8)

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

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9)

  	
  Manufacturing Region for Hit FPUs (circle one):

  	
  North American

  	
  European

  	
  Asian

  
													

 

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

	
  

  	
   

  
	
   

  	
  By (sign)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name, Title
  (Print)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  E-Mail Address
  (for confirmation of receipt)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date (Print
  mm/dd/yy)

  

 

 5Exhibit
10.69

XBOX LIVE SERVER PLATFORM ADDENDUM

TO THE XBOX 360 PUBLISHER LICENSING AGREEMENT

This Xbox Live Server Platform Addendum to the Xbox
360 Publisher Licensing Agreement (this “XLSP Addendum”) 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 Activision Publishing, Inc. (“Publisher”), and supplements the Xbox 360
Publisher License Agreement between the parties dated as of 10/25/05 (the “Xbox
360 PLA”).  Except as expressly provided
otherwise in this XLSP Addendum, capitalized terms have the same meanings
ascribed to them in the Xbox 360 PLA. 
The terms of the Xbox 360 PLA are incorporated by reference, and except
to the extent expressly modified by this XLSP Addendum, the Xbox 360 PLA
remains in full force and effect and is hereby ratified and confirmed.

RECITALS

A.                                   Under
the Xbox 360 PLA, Publisher may
may include in its Xbox 360 Software Titles certain Online Features accessible
via Xbox Live.  Generally, Xbox Live is a closed online network accessible
only by servers owned and operated by Microsoft.

B.                                     Publisher
wishes to host on Publisher’s servers some or all of the Online Content for its  Xbox 360 Software Titles in accordance with 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                                         Definitions

1.1                                 “Publisher Hosted Online
Content” any content,
including without limitation any Online Content that is hosted and served
through the Publisher Hosting Services under the terms of this XLSP Addendum.

1.2                                 “Publisher Hosting Services”  means Publisher’s hosting of Publisher’s
hosting of Publisher Hosted Online Content pursuant to the terms and conditions
of this XLSP Addendum, whether performed by Publisher or a Third Party Host,
including operating, maintaining and controlling the servers necessary for the
provision of Publisher Hosted Online Content.

1.3                                 “Third Party Host” means a third party
providing Publisher Hosting Services on behalf of Publisher.

1.4                                 “Xbox Life Server Platform” or “XLSP” means Microsoft’s platform and/or
server architecture which enables the Publisher Hosting Services to function as
an expansion to the features available from the Xbox Live service.

1.5                                 Xbox Live User Content” means any content that originates from Xbox
Live Users in any format and that is published through or as part of any
Publisher Hosted Online Content, but excluding Xbox Live User Communications.

1.6                                 “Xbox Live User Communications” means
transient voice and text communications sent from an Xbox Live User to one or
more Xbox Live Users (e.g., voice chat).

CONFIDENTIAL

 1
 

2                                         Approval
and Certification

All proposed Publisher Hosting Services and Publisher
Hosted Online Content must go through the same approval process as set forth in
the Xbox 360 PLA (i.e, the stages for Concept approval, pre-Certification,
Certification and Marketing Materials approvals that apply to all aspects of
the Software Title).  All Publisher
Hosting Services and Publisher Hosted Online Content is subject to the same
terms to which any Software Title and/or Online Content is subject per the Xbox
360 PLA.  In order to pass a Software
Title using XLSP through Certification, Publisher may be required to submit
additional information about its server architecture and access to its server
environment sufficient to enable Microsoft to conduct resting of the Publisher
Hosting Services.  In addition to the
requirements under this XLSP Addendum, Publisher acknowledges and agrees that
it will be bound by all XLSP policies set forth in the Xbox 360 Publisher Guide.

3                                         Privacy

As a condition for Certification, Microsoft may
require Publisher to have a separate terms of use or privacy policy under
Publisher’s name and implemented in a manner that is acceptable to
Microsoft.  Microsoft must expressly consent
to any collection of Xbox Live User personally identifiable information and in
such event, Publisher may collect only what user data that is legitimately
necessary for the intended purpose and may not use any such user data relating
to the Xbox 360 and the Xbox Live service in any manner outside of the
Publisher Hosting Services. In the event Microsoft requires that Publisher use
a separate terms of use or privacy policy for the Publisher Hosting Services,
then such policies will clearly state that (i) that the Xbox Live User’s
personal information will be shared with Microsoft, and (ii) that the Xbox Live
User will be subject to the terms and conditions of the Microsoft Privacy
Statement and the Xbox Terms of Use. Such notice must contain hyperlinks to the
Xbox Live terms of use, privacy statement, and code of conduct currently
located at http://www.xbox.com/en-US/xboxlive. 
Publisher agrees that any separate terms of use or privacy policy will
be in addition to and not conflicting with the Xbox Live terms of use, privacy
statement and code of conduct.

4                                         Beta
Trials

At any time prior to Certification of the Software
Title, Microsoft may require that internal or public beta testing be conducted
by or on behalf of Microsoft (the “Beta Trials”).  Microsoft’s prior written approval, which may
be withheld in Microsoft’s sole discretion, is required for any Beta
Trials.  All feedback provided by
Microsoft to Publisher as a result of the Beta Trials is advisory in nature,
and satisfactory feedback from the Beta Trials is not an indication that the
Publisher Hosted Online Content will be approved following the Certification
submission.  Likewise, Beta Trial
feedback may include information regarding violations of technical Certification
requirements that could, if not addressed by Publisher, result in Certification
failure.

5                                         Publisher
Hosting Services

5.1                                 Publisher Responsibility.  Publisher is responsible for
hosting the Publisher Hosted Online Content and providing the Publisher Hosting
Services.  Publisher shall operate the
Publisher Hosting Services in a manner that meets or exceeds standards of
quality, performance, stability, and security generally accepted in the
industry, and those specific requirements set forth below in this section and
in the Xbox 360 Publisher Guide.

5.2                                 Third Party Host. 
If Publisher is using a Third Party Host to provide the
Publisher Hosting Services, Publisher may provide to the Third Party Host
access to only those portions of the XDK that are necessary for the Third Party
Host to perform Publisher’s Hosting Services. 
Prior to using the services of any Third Party Host, the Third Party
Host and Publisher must sign a Third Party Hosting Agreement substantially and
materially in the form set forth in Exhibit A, and Microsoft must accept
and approve such agreement in writing. 
Publisher hereby unconditionally and irrevocably guarantees the Third
Party Host’s performance of the applicable obligations and restrictions imposed
by this XLSP Addendum and the Third Party Hosting Agreement.

 2
 

5.3                                 Publisher Hosting Service Requirements.  Publisher shall adhere to the
following requirements and upon request from Microsoft, Publisher shall provide
Microsoft with sufficient information to verify compliance with these
requirements:

5.3.1                        Operation.  Publisher shall monitor the
operation and performance of the Publisher Hosting Services, respond to
technical and Xbox Live User inquiries, and have rules, policies, and
procedures for the Publisher Hosting Services that are consistent with the
standards defined below or as otherwise provided by Microsoft from time to time
in the event Microsoft reasonably determines that the standards need to be
updated in light of industry standards.

5.3.2                        Reporting and Technical Policies.  The parties shall follow the communication
processes for sharing and updating each other’s technical teams set forth in
the Xbox 360 Publisher Guide. In addition, Publisher shall follow the
technical processes, policies, rules, and detailed procedures for notification,
escalation and reporting of scheduled and unscheduled maintenance and problems
that might occur with the Publisher Hosting Services as set forth in the Xbox
360 Publisher Guide.  Each party is
responsible for notifying the other in the event that it discovers a technical
problem with the service of the other party.  Publisher shall provide Microsoft
five (5) business days advanced written notice of Publisher’s scheduled
downtimes, and Publisher shall use commercially reasonable efforts to schedule
maintenance downtimes for the Publisher Hosting Services at the same time as
Microsoft’s scheduled downtimes for Xbox Live. Upon notification of a scheduled
downtime for the Publisher Hosting Services, Microsoft may at its option
request an alternate time for such scheduled maintenance and Publisher shall
use commercially reasonable efforts to accommodate Microsoft’s request.

5.3.3                        Server Capacity and Load. 
Publisher shall use commercially reasonable efforts to support all users
of its Publisher Hosting Services, including operating sufficient computing
resources for user traffic, and shall immediately inform Microsoft of the
failure of relevant Publisher Hosting Services. 
Publisher shall ensure that load on the Publisher Hosting Services system
does not exceed 75% of the measured capacity of the system, where “capacity” is
defined as the maximum load which can be sustained by the system.  Publisher must describe in writing the tools
and techniques to be used in measuring system capacity and load, which tools
and techniques must be recognizable as industry standard practices and which
must be agreed to in advance by Microsoft. 
Publisher shall measure the load on the Publisher Hosting Services at
intervals of no more than five (5) minutes. 
Publisher shall retain records of load measurements for no less than one
week, and shall make such records accessible to Microsoft upon request. Should
changes to the system occur which necessitate changes in the tools and
techniques used to measure capacity and load, or should the capacity of the system
materially increase or decrease, Publisher shall inform Microsoft within five
(5)business days.

5.3.4                        Uptime. 
The Publisher Hosting Services shall have uptime of 99.5% per month,
where uptime is defined as the portion of time when the system is accessible
and available to Xbox Live Users.  Uptime
will be calculated on a monthly basis assuming conformance with the industry
standard of monitoring uptime every five (5) minutes.  Publisher will report the uptime statistics
to Microsoft upon request.  Scheduled
maintenance done pursuant to Section 5.3.2 above may be deducted when
calculating uptime.

5.3.5                        Service Location. 
Publisher must locate all servers used to operate the
Publisher Hosting Services in approved territories as provided for in the Xbox Publisher
Guide.

5.3.6                        Troubleshooting; Notice to Users.  If the Publisher Hosting Services
are unable to establish a connection to Xbox Live, then Publisher will work
with Microsoft to troubleshoot the

 3
 

cause of the problem and
diligently work to fix any such problem. 
During any time in which a Software Title or any Publisher Hosted Online
Content using the Publisher Hosting Services are unable to establish a
connection to the Publisher Hosting Services, then Publisher will display the
appropriate message to the Xbox Live User in accordance with the Xbox 360
Publisher Guide.

5.4                                 Customer Support. 
As set forth in the Xbox 360 PLA, as between Microsoft and
Publisher, Publisher is solely responsible for providing customer support to
Xbox Live Users for Publisher Hosted Online Content and Publisher Hosting
Services.  Except as expressly set forth
herein, Publisher acknowledges and agrees that Microsoft has no support
responsibilities whatsoever to Xbox Live Users for the Publisher Hosted Online
Content and Publisher Hosting Services.

5.5                                 Xbox Live Family Settings Features.  Publisher Hosting Services and
Publisher Hosted Online Content shall at all times comply with the requirements
of the Xbox 360 Publisher Guide and the technical Certification requirements related
to the family settings features of the Xbox 360 and Xbox Live..

5.6                                 Law Enforcement and Regulatory Requirements.  Publisher is responsible for
ensuring that the Publisher Hosting Services and Publisher Hosted Online
Content comply with all legal and regulatory requirements that apply in the
jurisdictions in which such services or content are made available.  Publisher may be required to provide
Microsoft with information including legal opinions to verify that the
Publisher Hosting Services and Publisher Hosted Online Content comply with
applicable laws.  In addition, Publisher
agrees that it will promptly reply to and comply with any requests by any law
enforcement officials regarding the Publisher Hosting Services or Publisher
Hosted Online Content.

5.7                                 Publisher Contact. 
As provided in the Xbox 360 Publisher Guide, Publisher shall
designate at least one full-time employee as a product or program manager to
the services contemplated under this XLSP Addendum, responsible for serving as
Microsoft’s liaison, performing Publisher’s obligations under this Agreement,
and serving as primary contact to Microsoft.

6                                         Xbox
Live User Content

6.1                                 Microsoft Approval. 
Publisher may not allow Xbox Live Users to create, share or
otherwise provide Xbox Live User Content in connection with a Software Title
without Microsoft’s express approval.  If
Publisher wants to make Xbox Live User Content available as part of Publisher
Hosted Online Content, Publisher will provide to Microsoft a detailed
description of the process and procedures Publisher will have in place
regarding such Xbox Live User Content.

6.2                                 Claim of Infringement. 
If Microsoft has approved Publisher allowing Xbox Live User
Content, Publisher shall maintain a procedure for removing Xbox Live User
Content in the event of a claim of infringement, which procedure shall comply
with all applicable laws and regulations. 
Microsoft may notify Publisher of any complaints Microsoft receives
related to Xbox Live User Content. 
Publisher shall remove allegedly infringing Xbox Live User Content upon
receipt of a third party claim or notice from Microsoft, but in any event no
later than forty-eight (48) hours after receipt of such claim.  Publisher agrees to notify Microsoft as soon as
commercially reasonable (and in any event no later than forty-eight (48) hours
after receipt) of any such claims of infringement and to update Microsoft as to
steps taken in response thereto.  In
order to mitigate escalation of any such claims, Microsoft may in its good
faith discretion take control over any such claim and be the sole source of
communications to the claimant.

6.3                                 Additional Circumstances for Removal of Xbox Live User
Content.  Microsoft may in its
discretion request that Xbox Live User Content be removed by Publisher pursuant
to the procedures described above for Xbox Live User violations of the Xbox
Terms of Use and/or Code of Conduct.

 4
 

7                                         Action
by Microsoft

In the event Publisher fails to perform any of its
obligations under this XLSP Addendum, including failure to conform to the
approved Concept for the Software Title and/or Publisher Hosting Services,
Microsoft has the right, without limiting any of its other rights and remedies
under the Agreement, to restrict access to the Publisher Hosted Online Content
and disconnect Publisher Hosting Services from Xbox Live.  Microsoft, in its discretion, may restrict
the uploading of Xbox Live User Content to, or require Publisher to remove Xbox
Live User Content from, Xbox Live in accordance with the Xbox Live Terms of
Use, the Xbox Live Privacy Policy and the Xbox Live Code of Conduct.

8                                         Term
and Termination

8.1                                 Term.  The
Term of this XLSP Addendum is the same as set forth in the Xbox 360 PLA.

8.2                                 Effect of Termination. 
Upon termination or expiration of the Xbox 360 PLA and/or
this XLSP Addendum, Publisher shall continue to support existing Publisher
Hosted Online Content until the earlier of (1) the end of the Finished Product
Unit sell-off period as set forth in the Xbox 360 PLA, or (2) the end of the
Minimum Commitment term for Online Content (as defined in the Xbox 360
PLA).  Additionally, Publisher shall
continue to support any event-based Publisher Hosted Online Content that
started before termination or expiration. 
To the extent Publisher has support obligations pursuant to this Section
8.2 following termination or expiration, all of Publisher’s obligations under
this XLSP Addendum will continue to apply. 
If this XLSP Addendum is terminated due to Publisher’s breach, then
Microsoft has the right to immediately terminate the availability of the
Publisher Hosted Online Content and require that the operation of Publisher
Hosting Services immediately cease, and all Microsoft software or materials be
immediately returned to Microsoft.

8.3                                 Survival. 
The following Sections of this XLSP Addendum shall survive expiration or
termination of this XLSP Addendum:  9 and
10.  Other sections shall survive in
accordance with their terms.

9                                         Warranties

In addition to the warranties set forth in the Xbox
360 PLA, Publisher additionally warrants and represents that:

9.1                                 Any  and all information, data, logos, software
or other materials provided to Microsoft and/or made available to Xbox Live
Users via Publisher Hosted Online Content or the Publisher Hosting Services
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.

9.2                                 The
Publisher Hosted Online Content and the Publisher Hosting Services do not and
will not contain any messages, data, images or programs which are, by law,
defamatory, obscene or pornographic, or in any way violate any applicable laws
(including without limitation laws of privacy) of the territory where the
Publisher Hosted Online Content is distributed or hosted.

9.3                                 The
Publisher Hosted Online Content and the Publisher Hosting Services do not
harvest or otherwise collect information about Xbox Live Users, including
e-mail addresses, and the Publisher Hosted Online Content and the Publisher
Hosting Services do not link to any unsolicited communication sent to any third
party.

9.4                                 Publisher
will not serve any Publisher Hosted Online Content that is not approved in the
Software Title’s Concept.

 5
 

9.5                                 Publisher
has obtained all necessary rights and permissions for its and Microsoft’s use
of the Xbox Live User Content and the Xbox Live User Content does not infringe
the intellectual property rights of any third party.

10                                  Indemnification

The indemnification obligations of the parties under
the Xbox 360 PLA extends to any breach by either party of its warranties,
representations or covenants set forth in this XLSP Addendum.  With regard to the Publisher Hosting
Services, Publisher’s warranties, representation, covenants and indemnification
obligations apply regardless of whether or not Publisher has engaged a Third
Party Host to perform all or any of the Publisher Hosting Services.  Publisher’s indemnity obligation applies to
any third party claims arising out of Microsoft’s use of the Xbox Live User
Content.

11                                  Sub-Publishing

Publisher may enter into sub-publishing arrangements
as provided for in the Xbox 360 PLA with respect to Software Titles subject to
this XLSP Addendum, provided that Publisher remains in control of and
responsible for the operations of all Publisher Hosted Online Content and
Publisher Online Services.  If Publisher
desires to transfer the ownership and operation of Publisher Online Services to
its sub-publishing partner, then the sub-publisher must be treated as a Third Party
Host hereunder or Publisher must get confirmation in writing that the
sub-publisher has its own XLSP Addendum in place with Microsoft.

12                                  Written
Amendment and Approvals

Approvals under this XLSP Addendum that are required
to be in writing require the exchange of written signatures by authorized
individuals of each party.  Email or oral
approvals will not be valid.  This XLSP
Addendum may not be modified except by written agreement dated after the date
of this XLSP Addendum and signed by Publisher and Microsoft.

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

	
  “Microsoft”

  	
   

  	
  “Publisher”

  
	
  MICROSOFT
  LICENSING, GP

  	
   

  	
  ACTIVISION PUBLISHING, INC.

  
	
   

  	
   

  	
   

  
	
  /s/ Brian
  Russell

  	
   

  	
  /s/ Greg Deutsch

  
	
  By (sign)

  	
   

  	
  By (sign)

  
	
   

  	
   

  	
   

  
	
  Brian Russell

  	
   

  	
  Greg Deutsch

  
	
  Name (Print)

  	
   

  	
  Name (Print)

  
	
   

  	
   

  	
   

  
	
  Group Program
  Manager

  	
   

  	
  Vice President, Business and Legal Affairs

  
	
  Title

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
  2-6-07

  	
   

  	
  January 29, 2007

  
	
  Date

  	
   

  	
  Date

  

 

 6
 

EXHIBIT A

THIRD PARTY HOST AGREEMENT

For good and valuable consideration, ____________________,
a corporation of ______________________ (“Third Party Host”) hereby covenants
and agrees with Microsoft Licensing, GP (“Microsoft”), a Nevada General
Partnership, and ___________________ (“Publisher”), a ______________ that Third
Party Host shall comply with all obligations and terms and conditions of
Publisher related to the XDK License and the Publisher Hosting Services as
defined in and pursuant to the Xbox 360 Publisher License Agreement between
Microsoft and Publisher dated ___________ and the Xbox Live Server Platform
Addendum to the Xbox 360 Publisher Licensing Agreement between Microsoft and
Publisher dated ____________ (collectively the “Agreement”).

It is a condition precedent to the effectiveness of
this Third Party Host Agreement that the Third Party Host execute and return to
Microsoft a signed XDK License, including Nondisclosure Agreement.

Except as provided below, this Third Party Host
Agreement commences on the Effective Date set forth above and continues until
the earlier of termination or expiration of the Agreement.

Nothing contained herein limits Publisher’s ability to
exercise any rights and/or to assert any claims and/or liabilities against
Third Party Host under any separate agreement between Publisher and Third Party
Host.

IN WITNESS WHEREOF, the undersigned parties have
executed this agreement as of the date set forth below.  All signed copies of this Third Party Host
Agreement are to be deemed originals.

	
  “THIRD PARTY HOST”

  	
   

  	
  “PUBLISHER”

  
	
   

  	
   

  	
   

  
	
            

  	
   

  	
            

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
                  

  	
   

  	
                  

  
	
  Name (please
  print)

  	
   

  	
  Name (please print)

  
	
   

  	
   

  	
   

  
	
                  

  	
   

  	
                  

  
	
  Title

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
                  

  	
   

  	
                  

  
	
  Date

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “Microsoft”

  	
   

  	
   

  
	
  MICROSOFT
  LICENSING, GP

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
            

  	
   

  	
   

  
	
  Name (please
  print)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
            

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
            

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  

 

 7

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