Document:

Exhibit
10.1

 

 

GLOBAL PLAYSTATION®3 FORMAT

 

LICENSED PUBLISHER AGREEMENT

 

THQ INC.

 

	
  Sony Computer
  Entertainment Europe

  	
  REDACTED

  	
   

  
	
  GLPA

  	
   

  	
   

  
	
   

  	
   

  	
  CONFIDENTIAL

  

 

 

TABLE OF
CONTENTS

 

	
  SECTION:

  	
   

  	
  PAGE:

  
	
   

  	
   

  	
   

  
	
  1.

  	
  DEFINITION
  OF TERMS

  	
  2

  
	
   

  	
   

  	
   

  
	
  2.

  	
  LICENSE

  	
  5

  
	
   

  	
   

  	
   

  
	
  3.

  	
  DEVELOPMENT
  AND DISTRIBUTION OF LICENSED PRODUCTS

  	
  5

  
	
   

  	
   

  	
   

  
	
  4.

  	
  ONLINE
  GAMEPLAY

  	
  7

  
	
   

  	
   

  	
   

  
	
  5.

  	
  LIMITATIONS
  ON LICENSES; RESERVATION OF RIGHTS

  	
  7

  
	
   

  	
   

  	
   

  
	
  6.

  	
  QUALITY
  STANDARDS FOR LICENSED PRODUCTS

  	
  9

  
	
   

  	
   

  	
   

  
	
  7.

  	
  MANUFACTURE
  OF DISC PRODUCTS

  	
  10

  
	
   

  	
   

  	
   

  
	
  8.

  	
  MARKETING
  OF LICENSED PRODUCTS

  	
  12

  
	
   

  	
   

  	
   

  
	
  9.

  	
  PAYMENTS

  	
  13

  
	
   

  	
   

  	
   

  
	
  10.

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
  14

  
	
   

  	
   

  	
   

  
	
  11.

  	
  INDEMNITIES;
  LIMITED LIABILITY

  	
  16

  
	
   

  	
   

  	
   

  
	
  12.

  	
  INFRINGEMENT
  OF SCE INTELLECTUAL PROPERTY RIGHTS BY THIRD PARTIES

  	
  18

  
	
   

  	
   

  	
   

  
	
  13.

  	
  CONFIDENTIALITY

  	
  18

  
	
   

  	
   

  	
   

  
	
  14.

  	
  TERM
  RENEWAL AND TERMINATION

  	
  22

  
	
   

  	
   

  	
   

  
	
  15.

  	
  EFFECT OF
  EXPIRATION OR TERMINATION

  	
  24

  
	
   

  	
   

  	
   

  
	
  16.

  	
  MISCELLANEOUS
  PROVISIONS

  	
  26

  

 

 

GLOBAL PLAYSTATION® 3 FORMAT

LICENSED PUBLISHER AGREEMENT

 

This Global PlayStation®3 Format Licensed Publisher
Agreement (the “Agreement”) is entered into on
                                    by and between SONY COMPUTER ENTERTAINMENT
EUROPE LIMITED, with offices at 10 Great Marlborough Street, London W1F 7LP (
“the SCE Company”) and THQ INC., with offices at 29903 Agoura Road, Agoura
Hills, CA 91301, USA (“Publisher”).

 

The SCE Company’s parent
company, Sony Computer Entertainment Inc. (“SCEI”), has designed and developed
certain core technology of or concerning the System.

 

The SCE Company has the
right to grant non-exclusive licenses to qualified entities regarding certain
intellectual property rights with respect to the System.

 

Publisher desires to be
granted a non-exclusive license to publish, develop, have manufactured, market,
advertise, distribute and sell Licensed Products in accordance with the
provisions of this Agreement and the provisions of the Regional Rider that is
attached hereto and incorporated herein by reference, and the SCE Company is
willing, in accordance with the terms and subject to the conditions of this
Agreement and the Regional Rider, to grant Publisher such a license.

 

In consideration of the
representations, warranties and covenants contained herein and in the Regional
Rider, and other good and valuable consideration, Publisher and the SCE Company
hereby agree as follows:

 

1.              Definition of Terms.

 

1.1  “Advertising
Materials” means any advertising, marketing, merchandising, promotional,
contest-related, public relations (including press releases), display, point of
sale or website materials regarding or relating to the Licensed Products or
depicting any of the Licensed Trademarks. 
Advertising Materials include any advertisements in which the System is
displayed, referred to, or used, including giving away any unit(s) of the
System as prizes in contests or sweepstakes and the public display of the
System in product placement opportunities.

 

1.2  “Affiliate”
means, as applicable, either Sony Computer Entertainment America Inc. (“SCEA”),
Sony Computer Entertainment Inc. (“SCEI”) and Sony Computer Entertainment
Europe Ltd. (“SCEE”), any subsidiary of the foregoing, or any other entity as
may be established from time to time and becomes a part of the Sony Computer
Entertainment Group.

 

1.3  “Attribution
Line” means the legal attribution line used on Advertising Materials, which
shall be substantially similar to the following: “Product copyright and
trademarks are the property of the respective publisher or its licensors.”

 

1.4  “Designated
Manufacturing Facility” means a manufacturing facility that is designated by
the SCE Company, in its sole discretion, to manufacture Disc Products or any of
their component parts.

 

1.5  “Development
System Agreement” means an agreement entered into between the SCE Company and a
Licensed Publisher or other licensee regarding the sale, lease, loan or license
of Development Tools.

 

2

 

1.6  “Development
Tools” means the PlayStation 3 development tools sold, leased, loaned or
licensed solely for use in the development of Executable Software.

 

1.7  “Disc Products”
means the Executable Software on PS3 Format Discs, Advertising Materials,
Packaging, Printed Materials and Product Information relating to any individual
title which shall consist of one application software product per Unit. Disc
Products may, but need not, be designed to allow Online Gameplay.

 

1.8  “Effective
Date” is the date specified in the preamble of this Agreement.

 

1.9  “Executable
Software” means software in final object code form that is designed for use and
operation exclusively on the System which consists of Publisher Software and
any SCE Materials and constitutes a complete, standalone videogame.

 

1.10 “Guidelines” means any
guidelines or specifications of the SCE Company with respect to the
development, manufacture and publishing of Licensed Products, including any
requirements regarding the development of Executable Software, the display of
the Licensed Trademarks in any Licensed Products and related Advertising
Materials, or the protection of any of the SCE Intellectual Property Rights,
which may be set forth in the Technical Requirements Checklist, Corporate
Identity Guidelines or in any other documentation provided to Publisher by the
SCE Company. Guidelines shall be comparable to the guidelines and
specifications applied by the SCE Company to its own software products for the
System. All Guidelines may be modified, supplemented or amended by any
Affiliate from time to time upon reasonable notice to Publisher. Guidelines are
incorporated into and form a part of this Agreement.

 

1.11 “Licensed Developer” means
an entity that has signed a Licensed Developer Agreement with any Affiliate.

 

1.12 “Licensed Developer
Agreement” or “LDA” means a valid and current license agreement authorizing the
development of software for the System, fully executed between a Licensed
Developer and an Affiliate.

 

1.13 “Licensed Products” means
Disc Products and Online Products, including any Publisher demonstration discs.

 

1.14 “Licensed Publisher” means
an entity that has signed a Licensed Publisher Agreement with an Affiliate.

 

1.15 “Licensed Publisher
Agreement” or “LPA” means a valid and current license agreement for the
publishing, development, manufacture, marketing, advertising, distribution and
sale of Licensed Products, fully executed between a Licensed Publisher and an
Affiliate.

 

1.16  “Licensed Trademarks” means the trademarks,
service marks, trade dress, logos, icons and other indicia designated in the
Guidelines or otherwise for use on, in or otherwise in connection with Licensed
Products. The Licensed Trademarks (or any part thereof) are subject to change
during the term of this Agreement and may be modified, supplemented or amended
by any Affiliate (as applicable) from time to time upon reasonable notice to
Publisher.

 

1.17  “Master Disc” means a recordable Blu-Ray disc
in the form requested by the SCE Company containing final pre-production
Executable Software.

 

1.18  “Online Gameplay” means the capability to
operate and interact with the Executable Software associated with a Licensed
Product used on a System that is connected to the Internet or any other network
and which may allow an end user to participate in a game or gameplay with
another end user (or other end users) across the Internet or any other network.

 

1.19  “Online Products” means
(i) enhancements, improvements, additions, patches, and updates, including
characters, artifacts, scripts, levels, modifications, player statistics and
gameplay data, used in conjunction

 

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with a related Disc Product
or the Executable Software referred to in paragraph (ii) below and
distributed electronically to any end users after sale or distribution of a
Unit of such Disc Product, or such Executable Software; and
(ii) Executable Software distributed electronically to end-users.  Online Products may, but need not, be
designed to allow Online Gameplay.

 

1.20 
“Packaging” means, with respect to each Disc Product, the carton,
containers, cases, edge labels, wrapping materials, security seals and other
proprietary labels and trade dress elements and wrapping materials of or
concerning the Disc Products (and all parts of any of the foregoing) but
specifically excluding Printed Materials and PlayStation 3 Format Discs.

 

1.21 
“PlayStation 3 Format Disc” means the disc media formatted for use with
the System.

 

1.22 
“Printed Materials” means all artwork and mechanicals for the disc label
for each PlayStation 3 Format Disc and for the Packaging relating to any of the
Disc Products, and all instructional manuals, liners, inserts, and any other
materials and user information within or attached to the Packaging and
distributed as part of the Disc Products.

 

1.23 
“Product Information” means any information owned or licensed by
Publisher relating to any of the Licensed Products, including demos, videos,
hints and tips, artwork, depictions of Disc Product cover art and videotaped
interviews.

 

1.24 
“Product Proposal” means a written proposal prepared by a Licensed
Publisher and submitted to the SCE Company under the Guidelines regarding the concept
and design for a Licensed Product.

 

1.25 
“Publisher Software” means any software including incorporated audio and
visual material developed by Publisher under this Agreement or an LDA, and does
not include any SCE Materials.

 

1.26 
“Publisher Intellectual Property Rights” means those worldwide
intellectual property rights, current or future, that are owned and controlled
by Publisher, including rights in or related to patents, inventions, designs,
copyrights, databases, trademarks, service marks, trade names, trade dress,
mask work rights, utility model rights, trade secret rights, technical
information, know-how, and the equivalents of the foregoing under the laws of
any jurisdiction and any other intellectual property rights recognized in the
Territory (including all registrations, applications to register and rights to
apply for registration of same), that relate to the Publisher Software,
Packaging, Product Information, Printed Materials, Advertising Materials or
other materials.

 

1.27 
“Purchase Order” means a written purchase order issued by Publisher
pursuant to Section 7.8.1, regarding the purchase of Disc Products that
conform to the Guidelines and other terms and conditions imposed by the SCE
Company or any Designated Manufacturing Facility.

 

1.28 
“Regional Rider” means the additional set of binding terms and which are
appended to and form part of this Agreement, and which are applicable to the
Territory.

 

1.29 “SCE Confidential Information” means the term
as defined in Section 13.1.1.

 

1.30  “SCE
Intellectual Property Rights” means those worldwide intellectual property
rights, current or future, including rights in or related to patents,
inventions, designs, copyrights, databases, trademarks (including the Licensed
Trademarks), service marks, trade names, trade dress, mask work rights, utility
model rights, trade secret rights, technical information, know-how, and the
equivalents of the foregoing under the laws of any jurisdiction, and any other
intellectual property rights recognized in the Territory (including all
registrations, applications to register and rights to apply for registration of
the same), for their full term including all renewals and extensions, that
relate to the SCE Materials,

 

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the System, the design and
development of Licensed Products compatible with the System, and any SCE
Confidential Information.

 

1.31 “SCE Materials” means any data, object code,
source code, firmware, documentation (or any part(s) of any of the
foregoing) or information relating to the System or the development of
interactive entertainment products compatible with the System, selected in the
sole judgment of the SCE Company, which are directly or indirectly provided or
supplied by any Affiliate to Publisher. SCE Materials shall not include any
hardware portions of the Development Tools, but shall include firmware in such
hardware.

 

1.32  “System” means
the PLAYSTATION®3 computer entertainment system.

 

1.33  “Term” means
the period from the Effective Date until March 31, 2012.

 

1.34  “Territory”
means the term as defined in the Regional Rider.

 

1.35  “Unit” means an
individual copy of a specific Disc Product regardless of the number of
PlayStation 3 Format Discs that are contained within and are part of such Disc
Product.

 

2.              License.

 

2.1  License
Grant. The SCE Company grants to Publisher, for the Term
and throughout the Territory, and in accordance with the other terms,
limitations and conditions referenced herein, a non-exclusive, non-transferable
license under the SCE Intellectual Property Rights, without the right to
sublicense (except as specifically provided herein), to use SCE Materials as
follows: (i) to develop and publish Licensed Products and to enter into
agreements with Licensed Developers and other approved third parties, where the
SCE Company requires such approval, subject to Section 3.2, to develop
Licensed Products; (ii) to have Disc Products manufactured by Designated
Manufacturing Facilities; (iii) to market, advertise, promote, sell and distribute
Disc Products directly to end users or to third parties for distribution to end
users; (iv) to market, advertise and promote, and, pursuant to a separate
online distribution agreement(s) with the SCE Company or any Affiliate, to
distribute Online Products to end users over the PlayStation®Network;
(v) to use the Licensed Trademarks only in connection with the
manufacturing, marketing, packaging, advertising, promotion, sale and
distribution of the Licensed Products; and (vi) to sublicense end-user
customers the right to use the Licensed Products for personal, noncommercial
purposes in conjunction with the System only, and not with other devices or for
public performance.

 

2.2  Separate
PlayStation Agreements. Unless specifically set
forth in this Agreement, all terms used herein are specific to the System and
the attendant SCE Company licensing program. 
Licenses relating to the original PlayStation, PS One, PlayStation 2 or
PlayStation Portable game consoles are subject to separate agreements with the
SCE Company (or any Affiliate, as applicable), and any license of rights to
Publisher under such separate agreements shall not confer on Publisher any
rights with respect to the System and vice versa.

 

3.     Development and
Distribution of Licensed Products.

 

3.1  Right to Develop. The SCE Company grants
Publisher the right to purchase, lease or borrow, as applicable, certain
hardware devices and license certain software tools and utilities that comprise
the Development Tools, as is appropriate, from the SCE Company or its designee,
pursuant to a separate Development System Agreement with the SCE Company or a
separate rider to this Agreement, which hardware and software components may be
used by Publisher only in connection with the development of Licensed Products
pursuant to Section 2.1. In developing Executable Software (or portions
thereof), Publisher and any third-party Licensed Developers with whom Publisher
contracts shall fully comply in all respects with all Guidelines, including
technical specifications.  In the event
that Publisher uses any third-party tools to develop Executable Software or any
portion thereof, Publisher shall

 

5

 

be responsible at
Publisher’s sole risk and expense for ensuring that it has obtained all
necessary licenses for any such use.

 

3.2  Subcontractors.  Publisher may retain subcontractors who
provide services which do not require access to SCE Materials or SCE
Confidential Information without prior approval. Otherwise, Publisher may
retain subcontractor(s) to assist with the development, publication and
marketing of Licensed Products (or portions thereof) which have signed
(i) an LPA or LDA with the SCE Company (the “PlayStation 3 Agreement”) in
full force and effect throughout the term of such development, publishing and
marketing services or (ii) if required by the SCE Company, an SCE
Company-approved subcontractor agreement (“Subcontractor Agreement”), and the
SCE Company has approved such subcontractor in writing (which approval shall be
in the SCE Company’s sole discretion). 
Publisher shall not disclose to any subcontractor any of the SCE
Confidential Information, including any SCE Materials, unless and until either
a PlayStation 3 Agreement or any required Subcontractor Agreement has been
executed and approved by the SCE Company. 
Publisher shall be solely responsible for verifying that all third
parties that contribute to the development of any Licensed Product, or
component thereof, satisfy the requirements of clause (i) or (ii) of
this Section 3.2. Notwithstanding any consent which may be granted by the
SCE Company for Publisher to employ any such permitted subcontractor(s), or any
such separate agreement(s) that may be entered into by Publisher with any
such permitted subcontractor, Publisher shall remain fully liable for its
compliance with all of the provisions of this Agreement and for the compliance
of any and all permitted subcontractors with the provisions of any agreements
entered into by such subcontractors in accordance with this Section. Publisher
shall use best efforts to cause all subcontractors that it retains in
furtherance of this Agreement to comply in all respects with the terms and conditions
of this Agreement, and hereby unconditionally guarantees all obligations of its
subcontractors. The SCE Company may subcontract any of its rights or
obligations hereunder.

 

3.3 Form of Distribution.  Executable
Software distributed physically to end users and demonstration discs shall be
in the form of PlayStation 3 Format Discs only. 
Publisher shall not, directly or indirectly, incorporate more than one
Disc Product in a single Unit, or package or bundle Units of any Disc Product
with any other goods or services, without the SCE Company’s prior written
consent.  Online Products, Online
Gameplay and any services associated with Online Gameplay, including
subscriptions, shall be distributed or made available electronically, including
by wireless distribution, to end users over the PlayStation®Network only,
unless the SCE Company gives express written consent to another manner of
distribution on SCE Company standard terms or otherwise as agreed.
Notwithstanding this limitation, Publisher may electronically transmit
Executable Software from site to site, or from machine to machine over a
computer network, for the sole purposes of facilitating development and for
testing to be carried out under Section 6; provided that no right of
retransmission shall attach to any such transmission, and provided further that
Publisher shall use reasonable security measures customary within the high
technology industry to reduce the risk of unauthorized interception or
retransmission of such transmissions.

 

3.4 Distribution Channels for Disc Products.  Publisher may use such distribution channels
to distribute Disc Products as Publisher deems appropriate, including the use
of third-party distributors, resellers, dealers and sales representatives.  In the event that the SCE Company permits
Publisher to have any of its Disc Products published by another Licensed
Publisher, Publisher must, in addition to complying with Section 3.2,
provide the SCE Company with advance written notice of such arrangement,
including the name of the Licensed Publisher and any additional information
requested by the SCE Company regarding the nature of the distribution services
that would be

 

6

 

provided by such third-party
Licensed Publisher prior to manufacture of the Disc Product.

 

4.              Online Gameplay.

 

4.1 Access to and Maintenance of Online  Gameplay. Publisher shall maintain servers
hosting Online Gameplay for the periods specified in the Guidelines. Publisher,
or, at the SCE Company’s option, the SCE Company or its Affiliate, shall
provide notice to consumers in a clear and conspicuous manner via one of the
methods listed in Section 4.3 any permanent shutdown to a server hosting
or supporting Online Gameplay no later than three (3) months prior to any
shutdown.

 

4.2 Publisher Online Designee.  Publisher shall appoint a dedicated contact
person for its Licensed Products designed to allow Online Gameplay, who shall
act as a liaison between the SCE Company and Publisher for all online matters
relating to Licensed Products designed to allow Online Gameplay. Publisher’s
designee shall also be responsible for ensuring that all terms and conditions
relating to the online elements of the Licensed Products are complied with.
Publisher shall give the SCE Company ten (10) days’ written notice prior
to any change in designee.

 

4.3  Online Legal
Compliance.  Licensed
Products designed for Online Gameplay must include a legal disclosure
enumerating end user, privacy and moderation policies and age rating
(collectively, “Online Terms”) prior to allowing any end users to engage in
Online Gameplay for the first time for a particular user or as otherwise
required by law.  The SCE Company
reserves the right to review Publisher’s Online Terms, but shall have no
liability for content of Publisher’s Online Terms.  Online Terms shall either be coded into the
applicable Licensed Product or available on the server hosting Online Gameplay in
such a way that an end user must agree to it prior to accessing and engaging in
Online Gameplay.  Online Terms must
comply with the Guidelines.  Publisher
must inform all end users engaging in or accessing Online Gameplay if any
personally identifying information will be collected, how it will be collected,
and how it will be used.

 

4.4  Publisher
Liability for Online Gameplay.  Publisher shall bear exclusively all
responsibility and liability for any features or capability of Licensed
Products related to Online Gameplay, including Online Gameplay between
territories using different television standards, whether PAL, NTSC or
otherwise.

 

5.     Limitations
on Licenses; Reservation of Rights.

 

5.1 Application of Council Directive 91/250/EEC.  The limitations set forth in
Section 5 shall be subject to Council Directive 91/250/EEC in a Territory
or any part thereof in which that Directive has been implemented.

 

5.2 Reverse Engineering Prohibited. Publisher
shall not directly or indirectly disassemble, decrypt, electronically scan,
peel semiconductor components, decompile, or otherwise reverse engineer in any
manner or attempt to reverse engineer or otherwise derive any source code from,
all or any portion of the SCE Materials, or permit, assist or encourage any
third party to do so.

 

5.3  Limitation
on Creation of Derivative  Works. 
Publisher shall not use, modify, reproduce, sublicense, distribute,
create derivative works from, or otherwise provide to third parties, the SCE
Materials, in whole or in part, other than as expressly set forth herein
without the SCE Company’s prior written consent.

 

5.4  Limitation
on Examination and Study of Tools. Publisher may study the
performance, design and operation of the Development Tools solely for the
limited purposes of developing and testing Publisher Software, or to develop
tools to assist Publisher with the development and testing of Publisher
Software.  Any tools developed or derived
by Publisher as a result of studying the performance, design or operation of
the Development Tools shall be considered derivative works of the SCE Materials
and shall

 

7

 

be owned by the SCE Company,
but may be treated as trade secrets of Publisher.  This section shall govern any conflict with a
similar provision in any separate agreement.

 

5.5 Limitations Regarding Content of Licensed Products.
No rights are granted under this Agreement with respect to non-game
products or products which contain significant elements of, or are a hybrid
with, audio or video profile products. 
No rights are granted under this Agreement with respect to serving or
providing in-game dynamic advertisements. Licensed Products may contain in-game
static advertisements, subject to the Guidelines.

 

5.6 Reservation of SCE Company’s Rights.

 

5.6.1 Limitations on Use of SCE Materials and SCE
Intellectual Property Rights. This Agreement
does not grant any right or license under, and Publisher shall not use, any SCE
Confidential Information, the SCE Materials, or any of the SCE Intellectual
Property Rights except as expressly authorized hereunder and in strict
compliance with the terms and conditions of this Agreement.  No other right or license is to be implied by
or inferred from any provision of this Agreement or the conduct of the
parties.  In particular, Publisher shall
not use the Executable Software, SCE Materials or SCE Confidential Information
(or any portion of any of the foregoing) in connection with the development of
any software for any emulator or other computer hardware or software system. In
no event shall Publisher patent any tools, methods, or applications, created,
developed or derived from SCE Materials. 
Publisher shall not make available to any third party any tools
developed or derived from the study of the Development Tools without the SCE
Company’s express written permission. 
Use of such tools shall be strictly limited to the creation or testing
of Licensed Products and any other use, direct or indirect, of such tools is
strictly prohibited. Moreover, Publisher shall bear all risks arising from
incompatibility of its Licensed Product and the System resulting from use of
Publisher-created tools.  The burden of
proof under this Section shall be on Publisher, and the SCE Company
reserves the right to require Publisher to furnish evidence satisfactory to the
SCE Company that Publisher has complied with this Section.

 

5.6.2 Ownership and Protection of SCE Materials and SCE
Intellectual Property Rights.  All rights with respect to the SCE Materials
and the System, including all of the SCE Intellectual Property Rights, are the
exclusive property of the SCE Company or its Affiliates. Publisher shall not do
or cause to be done any act or thing in any way impairing or tending to impair
any of the SCE Company’s rights, title or interests in or to the SCE Materials
or the SCE Intellectual Property Rights. Publisher shall take all steps as the
SCE Company may reasonably require for the protection and maintenance of the
SCE Intellectual Property Rights, including executing licenses or obtaining
registrations.  Publisher shall not
register any trademark in its own name or in any other person’s name, or use,
or obtain rights to use Internet domain names or addresses, which are identical
or similar to, or are likely to be confused with any of the Licensed Trademarks
or any other trademarks of the SCE Company. 
All goodwill associated with the Licensed Trademarks, including any
goodwill generated or arising by or through Publisher’s or its sub-licensees’
activities under this Agreement, accrues to the benefit of and belongs
exclusively to the SCE Company. Nothing contained in this Agreement shall be
deemed to grant Publisher the right to use the trademark “SONY” in any manner
or for any purpose.

 

5.6.3 Authentication. 
The SCE Company reserves the right to require Publisher to utilize an
authentication or authorization system to be provided, licensed or designated
by the SCE Company to authenticate and verify all Licensed Products and units
of the System. The SCE Company reserves the right to insert serial numbers on
all PlayStation 3 Format Discs for security or authentication purposes.

 

5.7 Acknowledgment of Publisher’s Ownership Rights.  Separate and

 

8

 

apart from the SCE Materials
and other rights licensed to Publisher by the SCE Company hereunder, as between
Publisher and the SCE Company, Publisher retains all rights, title and interest
in and to the Publisher Software, the Product Proposals, and related Product
Information, including Publisher Intellectual Property Rights therein, as well
as Publisher’s rights in any source code and other underlying material such as
artwork and music (but specifically excluding the SCE Materials and any
software provided directly or indirectly by the SCE Company) and any names used
as titles for Licensed Products and other trademarks used by Publisher.  Nothing in this Agreement shall restrict the
right of Publisher to develop, distribute or transmit products incorporating
the Publisher Software and underlying material, which do not contain or were
not developed through use of the SCE Materials or the SCE Intellectual Property
Rights, for any hardware platform or service other than the System, or to use
Printed Materials or Advertising Materials approved by the SCE Company
(excepting Printed Materials or Advertising Materials that contain any Licensed
Trademarks) as Publisher determines for such other platforms.

 

5.8 Guidelines Requirement. The licenses
granted to Publisher are expressly conditioned on Publisher’s compliance with
all provisions of the SCE Company’s Guidelines, as and when published or within
a commercially reasonable time following its receipt of a publication expressly
referencing such provisions, and any and all such provisions are incorporated
herein by this reference.  To the extent
that the Guidelines change with respect to any Licensed Product materials that
Publisher submits to the SCE Company under Section 6.1, Publisher shall
only be required to implement any such revised Guidelines in subsequent orders
of corresponding Disc Product or subsequent publications of corresponding
Online Product. Publisher shall not be required to recall or destroy previously
manufactured Disc Products, unless such Disc Products do not comply with the
original standards, requirements and conditions set forth in the Guidelines or
unless explicitly required to do so in writing by the SCE Company.

 

6.     Quality
Standards for Licensed Products.

 

6.1 Product Assessment, Format Quality Assurance and
Printed and Advertising Materials.  Publisher shall comply with the process and
requirements for assessment and format quality assurance of Licensed Products
and Advertising Materials, on a product-by-product basis as specified in the
Guidelines. The SCE Company will not approve Licensed Products that are outside
the PlayStation®3 format specifications in the Guidelines.

 

6.2 Rating Requirements. No Licensed
Product may be published, sold, distributed, marketed, advertised or promoted
unless each Licensed Product bears a consumer advisory age rating, consisting
of a rating code and product descriptors, either as required by local law or as
issued by, and following the rating display requirements of, a consumer
advisory ratings system designated by the SCE Company. Any and all costs and
expenses incurred in connection with obtaining such rating shall be borne solely
by Publisher.  No Licensed Product,
Printed Materials or Advertising Materials may bear more than one consumer
advisory rating code. Any Online Product that can be used with a Disc Product
must bear a rating that is the same as or lower than the rating issued to the
Disc Product, unless the SCE Company gives express written consent.

 

6.3 Compatibility of Licensed Products with Peripherals.  Publisher shall be solely responsible for
functionality and operational compatibility of its Licensed Products with any
third-party peripherals (e.g., controllers, memory storage devices, etc.).
The SCE Company shall have no responsibility to test or otherwise evaluate the
compatibility of Publisher’s Licensed Products with any third-party
peripherals.  The SCE Company shall not
be held responsible for any actual, incidental or consequential damages that
may result from any use or inability to use any third-party peripherals with
any Licensed Products or the System.  If

 

9

 

the SCE Company elects, at
its sole discretion, to test or otherwise evaluate the compatibility of
Publisher’s Licensed Products with any third-party peripheral device then,
(i) any such testing or evaluation shall not obligate the SCE Company to
test or evaluate any other third-party peripherals; (ii) any such testing
or evaluation shall not shift to the SCE Company any responsibility to ensure
or assess the functionality or compatibility of any third-party peripheral or
require the SCE Company to report any third-party peripheral incompatibilities;
and (iii) Publisher shall provide the SCE Company, upon request and at no
additional cost or expense to the SCE Company, with a reasonable number of
samples of any such third-party peripheral products for testing and review in a
timely manner.  In the event that any
Licensed Product fails to perform to the SCE Company’s satisfaction with any
third-party peripheral that it is intended to support, the SCE Company shall have
the right to require that Publisher modify or remove such portions of the
Executable Software as are intended to support the affected third-party
peripheral.

 

6.4 Publisher’s Additional Quality Assurance Obligations.
If at any time or times subsequent to the approval of any part of a
Licensed Product, the SCE Company identifies any material defects (such
materiality to be determined by the SCE Company in its sole discretion) with
respect to the Licensed Product, or in the event that the SCE Company
identifies any improper use of its Licensed Trademarks or the SCE Materials, or
any material defects or improper use are brought to the attention of the SCE
Company, Publisher shall, at no cost to the SCE Company, promptly correct any
such material defects, or improper use, to the SCE Company’s commercially
reasonable satisfaction, which may include, in the SCE Company’s judgment, the
recall and re-release of Units of the affected Disc Product or publication of
an update, upgrade or technical fix to an Online Product.  In the event any Licensed Products create any
risk of loss or damage to any property or injury to any person, Publisher shall
immediately take effective steps, at Publisher’s sole liability and expense, to
recall and remove such Licensed Products from any affected channels of
distribution; provided, however, that if Publisher is not acting as the
distributor or seller for the Licensed Products, its obligation shall be to use
its best efforts to arrange removal of all affected Licensed Products from the
relevant distribution channels. Publisher shall provide all end-user support
for Licensed Products.  Publisher and the
SCE Group Company may enter into a separate agreement to have Publisher provide
all end-user support for Online Gameplay of Publisher’s Licensed Products that
is provided through the PlayStation®Network. 
The SCE Company expressly disclaims any obligations or liability to
provide end-user support with respect to Licensed Products.

 

7.              Manufacture of Disc Products.

 

7.1 Manufacture of Units. Upon approval of
Executable Software and associated Printed Materials pursuant to
Section 6, and subject to Sections 7.4 – 7.7, the Designated Manufacturing
Facility will, in accordance with the terms and conditions set forth in this
Section 7, and at Publisher’s request and sole expense (a) manufacture
PlayStation 3 Format Discs for Publisher; (b) manufacture Publisher’s
Packaging and Printed Materials; and (c) assemble the PlayStation 3 Format
Discs with the related Printed Materials and Packaging. Publisher shall comply
with all Guidelines relating to the production of Units of Disc Products. The
SCE Company reserves the right to insert or require Publisher to make
arrangements for the insertion of certain Printed Materials relating to the
System into each Unit.

 

7.2 Designated Manufacturing Facilities. To insure
compatibility of PlayStation 3 Format Discs with the System, consistent quality
of the Disc Products and incorporation of anti-piracy security measures, the
SCE Company shall designate and license a Designated Manufacturing Facility or
Facilities to reproduce PlayStation 3 Format Discs.  Publisher shall purchase [*] for PlayStation
3 Format Discs, including demonstration discs, from such Designated
Manufacturing Facility.  Any

 

10

 

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

 

 

Designated Manufacturing
Facility shall be entitled to enforce the terms of this Agreement.

 

7.3 Creation of Master PlayStation 3 Format Disc. Using one of the
fully approved Master Discs provided by Publisher under the Guidelines, the SCE
Company or the Designated Manufacturing Facility shall create an encrypted,
reproducible master of the Executable Software (formatted as a PlayStation 3
Format Disc) from which all other copies of the Executable Software for the
corresponding Disc Product are to be replicated.  Publisher shall be responsible for the costs,
as determined by the SCE Company or the Designated Manufacturing Facility, of
producing the reproducible masters of any and all Executable Software.

 

7.4 Manufacture of Printed Materials by Designated
Manufacturing Facility.  If Publisher
elects to order Printed Materials from a Designated Manufacturing Facility,
Publisher shall deliver all SCE Company-approved Printed Materials to that
Designated Manufacturing Facility, at Publisher’s sole risk and expense, and
the Designated Manufacturing Facility will manufacture such Printed Materials
in accordance with this Section 7. 
In order to insure against loss or damage to the copies of the Printed
Materials furnished to the SCE Company, Publisher shall retain duplicates of
all Printed Materials, and neither the SCE Company nor any Designated
Manufacturing Facility shall be liable for any loss of or damage to any Printed
Materials.

 

7.5 Manufacture of Printed Materials by Alternate Source.  Subject to the Guidelines,
Publisher may elect to be responsible for manufacturing its own Printed
Materials (other than artwork which is to be reproduced or otherwise displayed on
any PlayStation 3 Format Discs, which Publisher will supply to the Designated
Manufacturing Facility for incorporation within the Disc Products), at Publisher’s
sole risk and expense.  The SCE Company
shall have the right to disapprove any Printed Materials that do not comply
with the applicable Guidelines.  If
Publisher elects to supply its own Printed Materials, neither the SCE Company
nor any Designated Manufacturing Facility shall be responsible for any delays
arising from use of Publisher’s own Printed Materials.

 

7.6 Manufacture of Packaging by Designated Manufacturing
Facility.  To ensure
consistent quality of the Disc Products, the SCE Company may designate and
license a Designated Manufacturing Facility to reproduce [*]of the proprietary
Packaging for the Disc Products.  If so,
then Publisher shall purchase [*] for such Packaging from a Designated
Manufacturing Facility during the Term.

 

7.7 Assembly Services.  Publisher may either procure assembly
services from a Designated Manufacturing Facility or, with the SCE Company’s
prior written consent, from an alternate source.  If Publisher elects to be responsible for
assembling the Disc Products, then the Designated Manufacturing Facility shall
ship the component parts of the Disc Product to a destination designated by
Publisher, at Publisher’s sole risk and expense.  The SCE Company shall have the right to
inspect any assembly facilities that Publisher proposes to use in order to
determine if the component parts of the Disc Products are being assembled in
accordance with the SCE Company’s quality standards.  The SCE Company may require Publisher to
recall any Units of any Disc Products that fail to comply with the Guidelines.
If Publisher elects to use alternate assembly facilities, neither the SCE
Company nor any Designated Manufacturing Facility shall be responsible for any
delays or other production issues, including missing component parts, arising
from use of alternate assembly facilities. Publisher shall comply with all
applicable labor laws and, in accordance with the provisions of
Section 16.8, shall not employ child labor, slave labor or forced labor in
connection with the assembly of the Licensed Products.

 

7.8       Orders and Delivery.

 

7.8.1 Orders. Publisher shall issue Purchase
Order(s) to a Designated Manufacturing Facility in the form set forth and

 

11

 

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

 

 

containing the information
required in the Guidelines, with a copy to the SCE Company. No Purchase Orders
will be processed for any Disc Product unless that Disc Product is fully
compliant with the Guidelines.  All Purchase
Orders shall be subject to approval by the SCE Company not to be unreasonably
withheld and to acceptance by the Designated Manufacturing Facility pursuant to
the Guidelines.  Purchase Orders issued
by Publisher to a Designated Manufacturing Facility for each Licensed Product
approved by the SCE Company shall be non-cancelable and are subject to the
order requirements of the Designated Manufacturing Facility.

 

7.8.2  General
Terms.  Neither the SCE Company nor any Designated Manufacturing
Facility shall be responsible for shortage or breakage with respect to any
order if component parts or assembly services are obtained from alternate
sources.

 

7.9 Delivery of Disc Products.  The Designated Manufacturing Facility will
deliver Disc Products to Publisher at Publisher’s sole expense, except where
otherwise provided under this Agreement. Publisher shall have no right to have
completed Units of Disc Products stored after manufacture.

 

7.10  Ownership of
Original Master Discs.  Due to the proprietary and confidential
nature of the mastering and encryption process, neither the SCE Company nor any
Designated Manufacturing Facility shall under any circumstances release any
original Master Discs, reproducible masters created under section 7.3 or other
in-process materials to Publisher.  All
such materials shall be and remain the sole property of the SCE Company or the
Designated Manufacturing Facility (as applicable). Notwithstanding the
foregoing, the Publisher Intellectual Property Rights contained in the
Publisher Software that is contained in any such in-process materials is, as
between the SCE Company and Publisher, the sole and exclusive property of
Publisher or its licensors.

 

8.     Marketing
of Licensed Products.

 

8.1 Marketing Generally.  At no expense to the SCE Company, Publisher
shall, and shall direct its distributors to, diligently market, sell and
distribute the Licensed Products, and shall use commercially reasonable efforts
to stimulate demand for such Licensed Products throughout the Territory and to
supply any resulting demand.  Publisher shall
use reasonable efforts to protect the Licensed Products from and against
illegal reproduction or copying by end users or by any other persons.

 

8.2 Samples.  Publisher shall provide sample Units of each
Disc Product to the SCE Company in the quantities and per the terms specified
in the Guidelines.  In the event that
Publisher assembles any Disc Product using an alternate source, Publisher shall
be responsible for shipping such sample Units to the SCE Company, at
Publisher’s cost and expense, promptly following the commercial release of such
Disc Product. Units shall not be shipped to the SCE Company prior to the
commercial release of such Disc Product. 
The SCE Company assumes no liability for release of samples prior to
commercial release. The SCE Company shall not directly or indirectly resell any
such sample Units of the Disc Products without Publisher’s prior written
consent.  The SCE Company may distribute
sample Units to its employees, provided that it uses its reasonable efforts to
ensure that such Units are not sold into the retail market.  In addition, subject to availability,
Publisher shall sell to the SCE Company additional Units at cost.

 

8.3 Marketing Programs.  From time to time, the SCE Company may invite
Publisher to participate in promotional or advertising opportunities that may
feature one or more Licensed Products from one or more Licensed Publishers.
Participation shall be voluntary and subject to terms to be determined at the
time of the opportunity. In the event Publisher elects to participate, all
materials submitted by Publisher to the SCE Company shall be submitted subject
to the Guidelines and delivery of such materials to the SCE Company shall
constitute acceptance by Publisher of the terms of the offer.  Each Affiliate shall be entitled to display
and otherwise use the Attribution Line on its multi-

 

12

 

product marketing materials,
unless otherwise agreed in writing.

 

8.4  PlayStation
Website.  Publisher
shall provide the SCE Company with Product Information for a web page for
each of its Licensed Products for display on the PlayStation promotional
website, or other website(s) operated by the SCE Company from time to time
in connection with the promotion of the PlayStation brand.  Specifications for Product Information for
such web pages shall be as provided in the Guidelines.  Publisher shall provide the SCE Company with
such Product Information for each Licensed Product upon submission of Printed
Materials to the SCE Company for approval pursuant to the Guidelines. Publisher
shall also provide updates for any such web page in a timely manner as may
be required in the Guidelines.

 

8.5 Demonstration Disc Programs.  The SCE Company may, from time to time,
provide opportunities for Publisher to contribute Licensed Product content for
distribution as part of a demonstration disc published by any Affiliate, or
permit Publisher to publish its own demonstration disc pursuant to a third
party demonstration disc program. The specifications with respect to the
approval, creation, manufacture, marketing, distribution and sale of any such
demo disc programs shall be set forth in the Guidelines. The SCE Company
reserves the right to choose from products submitted from other Licensed
Publishers and first party products to determine the specific products that
will be included in any SCE Company demonstration discs, and Publisher’s
Licensed Products will not be guaranteed prominence or preferential treatment
on any SCE demonstration disc.  The SCE
Company has no obligation to publish, advertise or promote any demonstration
disc.

 

8.6 Contests and Sweepstakes of Publisher.  Publisher may conduct contests, sweepstakes,
competitions and promotions, as permitted by law (collectively, “Contest” or
“Contests”), to promote Licensed Products. The SCE Company shall permit
Publisher to include Contest materials in Printed Materials and Advertising
Materials, subject to compliance with the provisions of Sections 10.2 and 11.2,
and subject to the Guidelines.

 

9.              Payments.

 

9.1 Payments for Licensed Products. Publisher
shall pay the SCE Company either directly or through its designee, for Licensed
Products, including Licensed Products in any “Greatest Hits,” “Platinum” or any
other program, and demonstration discs, at the rates and in the manner
specified in the Regional Riders and the terms of this Section 9.
Publisher shall be required in all cases to make payments to the SCE Company,
in accordance with this Section 9 and the Regional Rider, with respect to
any and all of Publisher’s products that are developed utilizing any SCE
Materials or SCE Intellectual Property Rights or any derivative works based on
or otherwise derived from the same.  The
burden of proof under this Section shall be on Publisher.  The SCE Company reserves the right to require
Publisher to furnish evidence satisfactory to the SCE Company that Publisher
has complied with any or all of its obligations pursuant to this Section.  Payment terms are subject to change in the
SCE Company’s discretion upon reasonable notice to Publisher.

 

9.2 Payment for Units of Disc Products. Payments shall
be made to the SCE Company through its Designated Manufacturing Facility
concurrent with the placement of any Purchase Order for Units of any Disc
Product in accordance with the terms and conditions set forth in this Agreement
unless otherwise agreed in writing with the SCE Company.  Payment shall be made prior to manufacture
unless the SCE Company has agreed in writing to extend credit terms to
Publisher under Section 9.3.

 

9.3 Credit Terms. The SCE Company is not
required to extend any credit terms to Publisher, but may do so in the SCE
Company’s sole discretion. Credit terms and limits shall be subject to
revocation or extension at the SCE Company’s sole discretion.  If credit terms are extended to Publisher,
Purchase Orders will be invoiced upon shipment of Disc Products and

 

13

 

each invoice will be payable
within 30 days of the date of the invoice. Publisher shall be additionally
liable for all costs and expenses of collection, including without limitation,
reasonable fees for lawyers and court costs.

 

9.4  Charges and
Deductions.    The amounts that Publisher must pay under this
Agreement are exclusive of all taxes, duties, charges or assessments which the
SCE Company or the Designated Manufacturing Facility may have to collect or pay
and for which Publisher is solely responsible. 
No costs incurred in the development, manufacture, marketing, sale or
distribution of any Licensed Products shall be deducted from any amounts
payable under this Agreement.  Similarly,
there shall be no deduction from any amounts owed hereunder as a result of any
uncollectible accounts owed to Publisher, or for any credits, discounts, allowances
or returns which Publisher may credit or otherwise grant to any third-party
customer of any Licensed Products, or for any taxes, fees, assessments or
expenses of any kind which may be incurred by Publisher in connection with its
sale or distribution of any Licensed Products or arising with respect to the
payment of royalties. Publisher may not assert any credit, set-off or
counterclaim to justify withholding payment under this Agreement. Publisher
shall be solely responsible for and bear any costs relating to any withholding
taxes or other such assessments which may be imposed by any governmental
authority with respect to the payments to the SCE Company. Publisher shall
provide the SCE Company with official tax receipts or other such documentary evidence
issued by the applicable tax authorities sufficient to substantiate that any
such taxes or assessments have in fact been timely paid. Deductions may only be
made after issuance of an approved credit memo from the SCE Company or a
Designated Manufacturing Facility.

 

9.5  General Terms.  Each shipment to Publisher shall constitute a
separate sale, whether said shipment constitutes the whole or partial
fulfillment of any Purchase Order. Title to Units shall pass to Publisher only
upon payment in full of the amounts due under this Agreement for those
Units.  The receipt and deposit by the
SCE Company of any moneys payable under this Agreement shall be without
prejudice to any rights or remedies the SCE Company has and shall not restrict
or prevent the SCE Company from challenging the basis for calculation or
payment accuracy. Nothing in this Agreement shall excuse or be construed as a
waiver of Publisher’s obligation to timely provide any and all payments owed to
the SCE Company or any Designated Manufacturing Facility.

 

10.  Representations
and Warranties.

 

10.1  Representations
and Warranties of SCE Company.  The SCE Company represents and warrants
solely for the benefit of Publisher that the SCE Company has the right, power
and authority to enter into this Agreement and to fully perform its obligations
hereunder.

 

10.2  Representations
and Warranties of Publisher. Publisher represents and
warrants that:

 

(i) There
is no threatened or pending action, suit, claim or proceeding alleging that the
use or possession by Publisher or its affiliates of all or any part of the
Publisher Software, Product Proposals, Product Information, Printed Materials,
Advertising Materials, Packaging not provided by the Designated Manufacturing
Facility, or any underlying work or content embodied in any of the foregoing,
including any name, designation or trademark used in conjunction with any of
the Licensed Products, infringes or otherwise violates any intellectual property
right or other right or interest of any kind whatsoever anywhere in the world
of any third party, or otherwise contesting any right, title or interest of
Publisher in or to the Publisher Software, Product Proposals, Product
Information, Printed Materials, Advertising Materials, Packaging not provided
by the Designated Manufacturing Facility, or any underlying work or content
embodied in any of the foregoing, including any name, designation or trademark
used in conjunction with any of the Licensed Products;

 

14

 

(ii) The
Publisher Software, Product Proposals, Product Information, Printed Materials,
Advertising Materials, Packaging not provided by the Designated Manufacturing
Facility, and their contemplated disclosure or use under this Agreement do not
and shall not infringe any person’s rights including patents, copyrights
(including rights in a joint work), trademarks, trade dress, trade secret,
rights of publicity, privacy, performance, moral rights, literary rights or any
other right or interest anywhere in the world of any third party. Publisher has
obtained the consent of all holders of intellectual property rights necessary
for the SCE Company’s or its Affiliates’ use of any Publisher Software, Product
Proposals, Product Information, Printed Materials, Advertising Materials and
Packaging not provided by the Designated Manufacturing Facility provided by
Publisher, which may be reproduced, published, publicly displayed, publicly
performed, marketed, sold and otherwise distributed by the SCE Company and any
Affiliates in accordance with this Agreement. 
Publisher has made all payments required to any person having any legal
rights arising from such disclosure or use so that the SCE Company will not
incur any obligation to pay any royalty, residual, union, guild or other fees
or expenses;

 

(iii) Publisher
has the right, power and authority to enter into this Agreement, to grant the
SCE Company the rights granted hereunder and to fully perform its obligations
hereunder;

 

(iv)The
making of this Agreement by Publisher does not violate any separate agreement,
rights or obligations existing between Publisher and any other person, and,
throughout the Term, Publisher shall not make any separate agreement with any
third party that is inconsistent with any of the provisions of this Agreement;

 

(v) Publisher
has not previously taken any action that could be interpreted as having sold,
assigned, leased, licensed or in any other way disposed of or encumbered any of
the rights granted to Publisher hereunder. 
Publisher will not sell, assign, lease, license or in any other way
dispose of or encumber any of such rights except as expressly consented to by
the SCE Company in writing;

 

(vi) Neither
Publisher nor its affiliates shall make any representation or give any warranty
to any person or entity expressly or on the SCE Company’s behalf, or to the
effect that the Licensed Products are connected in any way with the SCE Company
other than that the Executable Software and Licensed Products have been
developed, marketed, sold and distributed under license from the SCE Company;

 

(vii) In
the event that any Executable Software is delivered by Publisher to any other
Licensed Publishers or Licensed Developers in source code form, Publisher will
take all precautions consistent with the protection of valuable trade secrets
by companies in high technology industries to ensure that such third parties
protect and maintain the confidentiality of such source code;

 

(viii)The
Executable Software, excepting any SCE Materials, and any Product Information
shall be in a commercially acceptable form, free of significant bugs, defects,
time bombs or viruses or unauthorized content that is inconsistent with the age
rating applicable to the corresponding Licensed Product, which could disrupt,
delay, or destroy the Executable Software or System, or render any of such
items less than fully useful, or that could cause the SCE Company to suffer
public disrepute, contempt, scandal or ridicule, or which insults or offends
the community or any substantial organized group thereof or which could tend to
adversely affect the SCE Company’s name, reputation or goodwill associated with
the System, and shall be fully compatible with the System and all peripherals
listed on the Printed Materials as compatible with the Licensed Product;

 

(ix) Each
of the Licensed Products shall be developed, marketed, sold and distributed by
or at the direction of Publisher in an ethical manner and in a responsible
manner with respect to the protection of children in the online environment,
and in full compliance with all applicable laws,

 

15

 

including federal, state,
provincial, local and foreign laws, and any rules, regulations and standards
promulgated thereunder, including lottery laws and labor laws, and will not
contain content that violates applicable laws, including those relating to
privacy or any obscene or defamatory matter;

 

(x) Publisher’s
policies and practices with respect to the development, marketing, sale, and
distribution of the Licensed Products shall in no manner reflect adversely upon
the name, reputation or goodwill of the SCE Company or any Affiliate;

 

(xi) To
the extent Publisher wishes to utilize a Licensed Developer to assist in
development of Licensed Products, Publisher has contracted, or will contract,
with a Licensed Developer for the technical expertise and resources necessary
to fulfill its obligations under this Agreement; and

 

(xii) Publisher
shall make no false, misleading or inconsistent representations or claims with respect
to the System, any Licensed Products, or the SCE Company or any Affiliate.

 

11.  Indemnities;
Limited Liability.

 

11.1        Indemnification
by SCE Company. The SCE Company shall indemnify and hold Publisher
harmless from and against any and all third-party claims, demands, losses,
liabilities, damages, expenses and costs, including reasonable fees for
lawyers, expert witnesses and litigation costs, and costs incurred in the
settlement or avoidance of any such claim, in connection with or which result
from a breach of any of the SCE Company’s representations or warranties set
forth in Section 10.1 (collectively, “SCE-Indemnified Claim(s)”); provided
that: (i) Publisher shall give prompt written notice to the SCE Company of
the assertion of any SCE-Indemnified Claim; (ii) the SCE Company shall have
the right to select counsel and control the defense and settlement of any
SCE-Indemnified Claim and Publisher shall not agree to the settlement of any
SCE-Indemnified Claim without the SCE Company’s prior written consent; and
(iii) Publisher shall provide the SCE Company reasonable assistance and
cooperation concerning any SCE-Indemnified Claim, except that Publisher need
not incur any out-of-pocket costs in rendering such assistance and cooperation.
The SCE Company shall have the exclusive right, at its discretion, to commence
and prosecute at its own expense any lawsuit or to take such other action with
respect to SCE-Indemnified Claims as shall be deemed appropriate by the SCE
Company.

 

11.2        Indemnification
By Publisher. Publisher shall indemnify and hold the SCE Company
harmless from and against any and all claims, demands, losses, liabilities,
damages, expenses and costs, including reasonable fees for lawyers, expert
witnesses and litigation costs, and costs incurred in the settlement or
avoidance of any such claim, in connection with or which result from (i) a
breach of any of the provisions of this Agreement; (ii) any claim of
infringement of a third party’s intellectual property rights or any consumer
claim, with respect to Publisher’s Licensed Products, including claims related
to Publisher’s support of unauthorized or unlicensed peripherals or software
that are not part of the PlayStation 3 format specifications as set forth in
the Guidelines; (iii) any claim related to any Licensed Product features
or capability related to cross-regional Online Gameplay; (iv) any claims
of or in connection with any personal or bodily injury (including death or
disability) or property damage arising out of, in whole or in part, the
development, marketing, advertising, sale, distribution or use of any of the
Licensed Products (or portions thereof) unless due directly and solely to the
breach of the SCE Company in performing any of the specific duties or providing
any of the specific services required of it hereunder; or (v) any federal,
state or foreign civil or criminal investigations or actions relating to the
development, marketing, advertising, sale or distribution of Licensed Products
(all subsections collectively, “Publisher-Indemnified Claim(s)”), provided that
(a) the SCE Company shall give prompt written notice to Publisher of the
assertion of any Publisher-Indemnified Claim; (b) Publisher shall have the
right to select counsel and control

 

16

 

the defense and settlement
of any Publisher-Indemnified Claim, except that with respect to any
Publisher-Indemnified Claims made by a third party against the SCE Company, the
SCE Company shall have the right to select counsel for the SCE Company and
reasonably control the defense and settlement of the Publisher-Indemnified
Claim against the SCE Company; and (c) the SCE Company shall provide
Publisher with reasonable assistance and cooperation concerning any
Publisher-Indemnified Claim, except that the SCE Company need not incur any
out-of-pocket costs in rendering such assistance and cooperation. Subject to
the foregoing, Publisher shall have the exclusive right, at its discretion, to
commence and prosecute at its own expense any lawsuit or to take such other
action with respect to Publisher-Indemnified Claims as shall be deemed
appropriate by Publisher.

 

11.3             LIMITATIONS
OF LIABILITY.

 

11.3.1 SCE Limitation of Liability for Financial Losses.  In no event shall the SCE
Company or any Affiliates, or the officers, directors, employees, agents,
licensors or suppliers of any of such entities, be liable for loss of revenue,
loss of actual or prospective profits, loss of contracts, loss of anticipated
savings, loss of business opportunity, reputation or goodwill or loss of,
damage to or corruption of data (whether such loss or damages are direct,
indirect, special, incidental or consequential) arising out of, relating to, or
in connection with this Agreement or  any
collateral contract (including the breach of this Agreement by the SCE Group
Company), whether known, foreseen or foreseeable and whether in contract, tort
(including negligence), product liability, under indemnity, or otherwise.

 

11.3.2  SCE Limitation of Liability for Other Consequential
Losses. In no event shall the SCE Company, its Affiliates or the
officers, directors, employees, agents, licensors or suppliers of any of such
entities, be liable for any indirect, special, incidental or consequential loss
or damage of any kind arising out of or in connection with this Agreement or
any collateral contract (including the breach of this Agreement by the SCE
Group Company), whether known, foreseen or foreseeable and whether in contract,
tort (including negligence), product liability, under an indemnity or
otherwise.

 

11.3.3  SCE Limitation of Liability for Representations.  Publisher shall have no remedy
with respect to any representation made to it upon which it relied in entering
into this Agreement and the SCE Company and its Affiliates and the officers,
directors, employees, agents, licensors or suppliers of any of such entities
shall have no liability to Publisher other than under the express terms of this
Agreement. In this Section 11.3.3, “representation” means any undertaking,
promise, assurance, statement, representation, warranty or understanding,
whether in writing or otherwise, of any person (whether a party to this
Agreement or not), relating to the subject matter of this Agreement.

 

11.3.4  SCE Limitation of Liability for SCE Materials and
Publisher’s Materials. Except as expressly set forth herein, neither
the SCE Company, nor its Affiliates, nor the officers, directors, employees,
agents, licensors or suppliers of any of such entities, shall bear any risk, or
have any responsibility or liability of any kind to Publisher or to any third
parties with respect to the quality, functionality, operation or performance
of, or the use or inability to use, all or any part of the SCE Materials, the
System, the Licensed Products or Units of Disc Products, or for any software
errors or “bugs” in Product Information included on SCE Company demonstration
discs.

 

11.3.5  SCE Limitation of Financial  Liability. In no event shall the SCE
Company’s liability arising under, relating to, or in connection with this
Agreement, or any collateral contract, exceed the total amount paid by
Publisher under Section 9 within the 48 month period immediately prior to
the date of the first occurrence of the event or circumstances giving rise to
the claimed liability.

 

11.3.6  Publisher Limitation of Liability. In no
event shall Publisher, its officers,

 

17

 

directors, employees,
agents, licensors or suppliers be liable to the SCE Company for loss of
revenue, loss of actual or prospective profits, loss of contracts, loss of
anticipated savings, loss of business opportunity, reputation or goodwill or
loss of, damage to or corruption of data (whether such loss or damage is
direct, indirect, special, incidental or consequential), arising out of or in
connection with this Agreement or any collateral contract (including the breach
of this Agreement by Publisher) provided that such limitations shall not apply
to damages resulting from Publisher’s breach of Sections 2, 3, 5, 11.2, or 13
of this Agreement, or to any amounts which Publisher may be required to pay
pursuant to Sections 11.2 or 16.10.

 

11.3.7 Disclaimer of Warranty. Except as expressly
provided in Section 10.1, neither the SCE Company, nor any of its
officers, directors, employees, agents or suppliers, make, nor does Publisher
receive, any warranties (express, implied or statutory) regarding all or part
of the SCE Materials, the SCE Confidential Information, the SCE Intellectual
Property Rights, the System, Units manufactured hereunder or Product
Information included on demonstration discs. 
Without limiting the generality of the foregoing, the SCE Company disclaims
any warranties, conditions or other terms implied by any law (including as to
merchantability, satisfactory quality or fitness for a particular purpose and
warranties against infringement, and the equivalents thereof under the laws of
any jurisdiction) to the fullest extent permitted by applicable law.

 

11.3.8  Law Applicable to Liabilities. Nothing in
this Agreement shall exclude or limit any liability of either party which may
not be excluded or limited under applicable law.

 

12.
Infringement of SCE Intellectual Property Rights By Third Parties.

 

In the event that Publisher
discovers or otherwise becomes aware that any of the SCE Intellectual Property
Rights have been or are being infringed by any third party, Publisher shall
promptly notify the SCE Company.  The SCE
Company shall have the sole right, in its discretion, to institute and
prosecute lawsuits against third parties regarding infringement of SCE
Intellectual Property Rights.  Any
lawsuit shall be prosecuted solely at the cost and expense of the SCE Company
and all sums recovered in any such lawsuits, whether by judgment, settlement or
otherwise, shall belong solely to the SCE Company.  Upon the SCE Company’s request, Publisher
shall execute all papers, testify on all matters and otherwise cooperate in
every way necessary or desirable for the prosecution of any such lawsuit.  The SCE Company shall reimburse Publisher for
the reasonable expenses incurred as a result of such cooperation, but unless
authorized by other provisions of this Agreement, not costs and expenses
attributable to any cross-claim, counterclaim or third party action.

 

13.       Confidentiality.

 

13.1             SCE Confidential Information.

 

13.1.1         Definition
of SCE Confidential Information.  “SCE Confidential
Information” shall mean:

 

(i)    the SCE Materials, the
Development Tools, the Guidelines, the Regional Riders and this Agreement,
including all exhibits and schedules attached to any of the foregoing and all
information related to these items;

 

(ii)   other information,
documents and materials developed, owned, licensed or under the control of the
SCE Company or any Affiliate, including all processes, data, hardware,
software, inventions, trade secrets, ideas, creations, improvements, designs,
discoveries, developments, research and know-how, including SCE Intellectual
Property Rights relating to the SCE Materials and the Development Tools; and

 

(iii)  information, documents and
other materials regarding the SCE Company’s or any Affiliate’s finances,
business and business methods, marketing and technical plans, and development
and production plans; and

 

18

 

(iv)     third-party information
and documents licensed to or under the control of the SCE Company or any
Affiliate.

 

The SCE Confidential Information
consists of information in any medium, whether oral, printed, in
machine-readable form or otherwise, provided to Publisher before or during the
Term, including information subsequently reduced to tangible or written form.  In addition, the existence of a relationship
between Publisher and the SCE Company shall be deemed to be the SCE
Confidential Information unless otherwise agreed to in writing by the parties
or until publicly announced by the SCE Company or any Affiliate.

 

13.1.2         Term
of Protection of the SCE Confidential Information.  The term for the protection
of the SCE Confidential Information shall commence on the Effective Date and
shall continue in full force and effect for as long as any of the SCE
Confidential Information continues to be maintained as confidential and
proprietary by the SCE Company or any Affiliate.

 

13.1.3         Preservation
of SCE Confidential Information.  Publisher
shall, with respect to the SCE Confidential Information:

 

(i)        not disclose SCE
Confidential Information to any person, other than those employees, directors
or officers of the Publisher or subcontractors expressly approved under Section 3.2,
whose duties justify a “need-to-know” and who have executed a confidentiality
agreement in which such employees, directors, officers or subcontractors have
agreed not to disclose and to protect and maintain the confidentiality of all
confidential information and materials inclusive of those of third parties
which may be disclosed to them or to which they may have access during the
course of their duties.  At the SCE
Company’s request, Publisher shall provide the SCE Company with a copy of such
confidentiality agreement between Publisher and its employees, directors,
officers, or subcontractors and shall also provide the SCE Company with a list
of employee, director, officer, and subcontractor signatories. Publisher shall
not disclose any of the SCE Confidential Information to third parties, other
than expressly approved subcontractors under section 3.2, including to
consultants or agents without the SCE Company’s prior written consent.  Any employees, directors, officers,
subcontractors, authorized consultants and agents who obtain access to or
copies of the SCE Confidential Information shall be advised by Publisher of the
confidential or proprietary nature of the SCE Confidential Information, and
Publisher shall be responsible for any breach of this Agreement by all such
persons.

 

(ii) hold
all of the SCE Confidential Information in confidence and take all measures
necessary to preserve the confidentiality of the SCE Confidential Information
in order to avoid disclosure, publication, or dissemination, using as high a
degree of care and scrutiny, but at least reasonable care, as is consistent
with the protection of valuable trade secrets by companies in high technology
industries.

 

(iii) ensure
that all written materials relating to or containing the SCE Confidential
Information be maintained in a restricted access area and plainly marked to
indicate the proprietary and confidential nature thereof.

 

(iv) at
the SCE Company’s request, return promptly to the SCE Company any and all portions
of the SCE Confidential Information, together with all copies thereof.

 

(v) not
use, copy, reproduce, modify, create derivative works from, sublicense,
distribute, or otherwise disseminate the SCE Confidential Information, or any
portion thereof, except as expressly authorized, nor shall Publisher remove any
proprietary legend set forth on or contained within any of the SCE Confidential
Information.

 

13.1.4         Exceptions.  The foregoing restrictions
shall not apply to any portion of the SCE Confidential Information which:

 

19

 

(i) was
previously known by Publisher without restriction on disclosure or use, as
proven by written documentation of Publisher;

 

(ii) is
or legitimately becomes part of the public domain through no fault of Publisher
or any of its employees, directors, officers, consultants or agents;

 

(iii) is
independently developed by Publisher’s employees or consultants who have not
had access to or otherwise used the SCE Confidential Information (or any
portion thereof), as proven by written documentation of Publisher;

 

(iv) is
required to be disclosed by court, administrative or governmental order;
provided that Publisher must use all reasonable efforts prior to issuance of
any such order to maintain the confidentiality of the SCE Confidential
Information, including asserting in any action or investigation the
restrictions set forth in this Agreement, and, immediately after receiving
notice of any such action, investigation, or threatened action or
investigation, Publisher must notify the SCE Company of such action,
investigation, or threatened action or investigation, unless Publisher is
ordered by a court not to so notify; or

 

(v) is
approved for release by written authorization of the SCE Company.

 

13.1.5         No
Obligation to License.  Disclosure of
the SCE Confidential Information to Publisher shall not (i) constitute any
option, grant or license from the SCE Company to Publisher under any SCE
Intellectual Property Rights now or after owned or controlled by the SCE
Company; (ii) result in any obligation on the part of the SCE Company to
approve any materials of Publisher; (iii) give Publisher any right to,
directly or indirectly, develop, manufacture, sell or otherwise distribute any
product derived from or which uses or was developed with the use of the SCE
Confidential Information (or any portion thereof), other than as expressly set
forth in this Agreement.

 

13.1.6         Publisher’s
Obligations Upon Unauthorized Disclosure. If at any time Publisher
becomes aware of any unauthorized duplication, access, use, possession or
knowledge of any of the SCE Confidential Information, it shall notify the SCE
Company as soon as reasonably practicable, and shall promptly act to recover
any such information and prevent further breach of the confidentiality
obligations herein. Publisher shall provide any and all reasonable assistance
to the SCE Company to protect the SCE Company’s proprietary rights in any of
the SCE Confidential Information that Publisher or its employees, directors,
officers, or permitted subcontractors, consultants, or agents may have directly
or indirectly disclosed or made available, and that may be duplicated,
accessed, used, possessed or known in any manner or for any purpose not
expressly authorized by this Agreement, including enforcement of
confidentiality agreements, commencement and prosecution in good faith (alone
or with the SCE Company) of legal action, and reimbursement for all reasonable
lawyers’ fees, costs and expenses incurred by the SCE Company to protect the
SCE Company’s proprietary rights in the SCE Confidential Information.  Publisher shall take all steps requested by
the SCE Company to prevent the recurrence of any unauthorized duplication,
access, use, possession or knowledge of the SCE Confidential Information.

 

13.2     Publisher’s
Confidential Information.

 

13.2.1         Definition
of Publisher’s Confidential Information.  “Publisher’s Confidential Information” shall
mean:

 

(i) any
Publisher Software provided to the SCE Company pursuant to this Agreement and
all documentation and information relating thereto, including Product
Proposals, Printed Materials and Advertising Materials (other than
documentation and information intended for release to and use by end users, the
general public or the trade);

 

20

 

(ii) other
documents and materials developed, owned, licensed or under the control of Publisher,
including all processes, data, hardware, software, inventions, trade secrets,
ideas, creations, improvements, designs, discoveries, developments, research
and know-how; and

 

(iii) information
and documents regarding Publisher’s finances, business, marketing and technical
plans, business methods and production plans. 

 

Publisher’s Confidential
Information may consist of information in any medium, whether oral, printed, in
machine-readable form or otherwise, provided to the SCE Company before or
during the Term, including information subsequently reduced to tangible or
written form.

 

13.2.2         Term
of Protection of Publisher’s Confidential Information.  The term for the protection
of Publisher’s Confidential Information shall commence on the Effective Date
and shall continue in full force and effect for as long as any of Publisher’s
Confidential Information continues to be maintained as confidential and
proprietary by Publisher.

 

13.2.3         Preservation
of Confidential Information of Publisher.  The SCE Company shall, with respect to
Publisher’s Confidential Information:

 

(i) hold
all Publisher’s Confidential Information in confidence and take all reasonable
steps to preserve the confidentiality of Publisher’s Confidential Information,
and to prevent it from falling into the public domain or into the possession of
persons other than those persons to whom disclosure is authorized hereunder.

 

(ii) not
disclose Publisher’s Confidential Information to any person other than the SCE
Company’s or a Designated Manufacturing Facility’s employees, directors,
agents, consultants and subcontractors who need to know or have access to
Publisher’s Confidential Information for the purposes of this Agreement, and
only to the extent necessary for such purposes.

 

(iii) ensure
that all written materials relating to or containing Publisher’s Confidential
Information be maintained in a secure area and plainly marked to indicate the
proprietary and confidential nature thereof.

 

(iv) at
Publisher’s request, return promptly to Publisher any and all portions of
Publisher’s Confidential Information, together with all copies thereof.

 

(v) not
use Publisher’s Confidential Information, or any portion thereof, except as
provided herein, nor shall the SCE Company remove any proprietary legend set forth
on or contained within any of Publisher’s Confidential Information.

 

13.2.4         Exceptions.  The foregoing restrictions
shall not apply to any portion of Publisher’s Confidential Information which:

 

(i) was
previously known by the SCE Company without restriction on disclosure or use,
as proven by written documentation of the SCE Company;

 

(ii) comes
into the possession of the SCE Company from a third party which is not under
any obligation to maintain the confidentiality of such information;

 

(iii) is
or legitimately becomes part of information in the public domain through no
fault of the SCE Company, or any of its employees, directors, agents,
consultants or subcontractors;

 

(iv) is
independently developed by the SCE Company’s employees, consultants or subcontractors
who have not had access to or otherwise used Publisher’s Confidential
Information (or any portion thereof), as proven by written documentation of the
SCE Company;

 

21

 

(v) is
required to be disclosed by court, administrative, or governmental order;
provided that the SCE Company attempts, prior to the issuance of any such
order, to maintain the confidentiality of Publisher’s Confidential Information,
including asserting in any action or investigation the restrictions set forth
in this Agreement, and immediately after receiving notice of any such action,
investigation, or threatened action or investigation, notifies Publisher of
such action, investigation, or threatened action or investigation, unless the
SCE Company is ordered by a court not to so notify; or

 

(vi) is
approved for release by written authorization of Publisher.

 

13.2.5     SCE
Company’s Obligations Upon Unauthorized Disclosure. If at any time
the SCE Company becomes aware of any unauthorized duplication, access, use,
possession or knowledge of Publisher’s Confidential Information, it shall
notify Publisher as soon as is reasonably practicable.  The SCE Company shall provide any and all
reasonable assistance to Publisher to protect Publisher’s proprietary rights in
any of Publisher’s Confidential Information that it or its employees or
permitted subcontractors may have directly or indirectly disclosed or made
available and that may be duplicated, accessed, used, possessed or known in a
manner or for a purpose not expressly authorized by this Agreement, including
enforcement of confidentiality agreements, commencement and prosecution in good
faith (alone or with Publisher) of legal action, and reimbursement for all
reasonable lawyers’ fees, costs and expenses incurred by Publisher to protect
Publisher’s proprietary rights in Publisher’s Confidential Information. The SCE
Company shall take all reasonable steps requested by Publisher to prevent the
recurrence of any unauthorized duplication, access, use, possession or
knowledge of Publisher’s Confidential Information.

 

13.3     Confidentiality
of Agreement. While the terms of this Agreement and the Regional
Rider shall be treated as SCE Confidential Information, Publisher may disclose
their terms and conditions:

 

(i)    to legal counsel;

 

(ii)   in confidence, to
accountants, banks and financing sources and their advisors;

 

(iii)  in confidence, in
connection with the enforcement of this Agreement or rights arising under or
relating to this Agreement; and

 

(iv) if required, in the opinion of its counsel, to file publicly
or otherwise disclose the terms of this Agreement under applicable securities
or other laws, Publisher shall promptly notify the SCE Company of such
obligation so that the SCE Company has a reasonable opportunity to contest or
limit the scope of such required disclosure, and Publisher shall request, and
shall use best efforts to obtain, confidential treatment for such sections of
this Agreement as the SCE Company may designate.

 

14.       Term Renewal and Termination.

 

14.1     Term
Renewal. The Term shall be automatically extended for
additional one-year terms, unless either party provides the other with written
notice of its election not to extend on or before January 31 of the year
in which the Term would renew. 
Notwithstanding the foregoing, the term for the protection of SCE
Confidential Information and Publisher’s Confidential Information shall be as
set forth in Sections 13.1.2 and 13.2.2 respectively.

 

14.2     Termination
by SCE Company. The SCE Company shall have the right to terminate
the Agreement immediately, on written notice to Publisher, upon the occurrence
of any of the following:

 

(i) If
Publisher is in material breach of any of its obligations under the Agreement
or under any other agreement entered into between the SCE Company or any
Affiliate, on the one hand, and Publisher on the other hand;

 

(ii) A
statement of intent by Publisher to no longer exercise any of the rights
granted by the 

 

22

 

SCE Company to Publisher
hereunder or Publisher failing to submit materials under section 6.1 or failing
to issue any Purchase Orders during any period of twelve consecutive calendar
months;

 

(iii) If
Publisher (a) is unable to pay its debts when due; (b) makes an
assignment for the benefit of any of its creditors; (c) files or has filed
against it a petition, or an order of bankruptcy or insolvency is made, under
the bankruptcy or insolvency laws of any jurisdiction (and such petition is not
discharged within 60 days) or becomes or is adjudicated bankrupt or insolvent;
(d) is the subject of an order for, or applies for or notices its intent
to apply for, the appointment of an administrator, receiver, administrative
receiver, manager, liquidator, trustee or similar officer to be appointed over
any of its business or property; (e) ceases to do business or enters into
liquidation; or (f) takes or suffers any similar or analogous action in
any jurisdiction as a consequence of debt;

 

(iv) If
a controlling interest in Publisher or in an entity which directly or
indirectly has a controlling interest in Publisher is transferred to a party  that (a) is in breach of any
agreement with the SCE Company or any Affiliate; (b) directly or
indirectly holds or acquires a controlling interest in a third party which
designs, develops or markets any of the core components for an interactive
device or product which is directly or indirectly competitive with the System,
or itself develops any product that is directly or indirectly competitive with
the System; or (c) is in litigation or in an adversarial administrative
proceeding with the SCE Company or any Affiliate concerning the SCE
Confidential Information or any SCE Intellectual Property Rights, including
challenging validity of any SCE Intellectual Property Rights;

 

(v) If
Publisher or any entity that directly or indirectly has a controlling interest
in Publisher (a) enters into a business relationship with a third party
related to the design or development of any core components for an interactive
device or product which is directly or indirectly competitive with the System;
or (b) acquires an interest in or otherwise forms a strategic business
relationship with any third party which has developed or owns or acquires
intellectual property rights in any such device or product;

 

(vi) If
Publisher or any of its affiliates initiates any legal or administrative action
against the SCE Company or any Affiliate or challenges the validity of any SCE
Intellectual Property Rights;

 

(vii) If
Publisher fails to pay any sums owed to the SCE Company on the date due and
such default is not fully corrected or cured within ten (10) business days
of the date on which such payment was originally due; or

 

(viii) If
Publisher or any of its officers or employees engage in “hacking” of any
software for any PlayStation format or in activities which facilitate the same
by any third party.

 

As used hereinabove,
“controlling interest” means, with respect to any form of entity, sufficient
power to control the decisions of such entity. 
Publisher shall immediately notify the SCE Company in writing in the
event that any of the events or circumstances specified in this Section 14.2
occur. In the event of termination under 14.2(viii), the SCE Company shall have
the right to terminate any other agreements entered into between the SCE
Company and Publisher.

 

14.3     Product-by-Product
Termination.  In addition to
the events of termination described in Section 14.2, the SCE Company, at
its option, shall be entitled to terminate, with respect to a particular
Licensed Product, the licenses and related rights herein granted to Publisher
immediately on written notice to Publisher, in the event that (a) Publisher
fails to notify the SCE Company promptly in writing of any material change to
any materials previously approved by the SCE Company in accordance with
Sections 6 and the relevant Guidelines, and such breach is not corrected or
cured within 30 days after receipt of written notice of such breach; (b) Publisher
uses a third party that fails

 

23

 

to comply with the
requirements of Section 3.2 in connection with the development of any
Licensed Product; (c) any third party with whom Publisher has contracted
for the development of Licensed Products breaches any of its material
obligations to the SCE Company pursuant to such third party’s agreement with
the SCE Company with respect to any such Licensed Product; (d) Publisher
cancels a Licensed Product or fails to provide the SCE Company, in accordance
with the provisions of Section 6 and the relevant Guidelines, with the
final version of the Executable Software for any Licensed Product within three
months of the scheduled release date (as referenced in the Product Proposal or
as otherwise mutually agreed by the parties in writing), fails to provide work
in progress to the SCE Company in strict compliance with the review process set
forth in the Guidelines, fails to provide fully tested final Executable
Software in strict conformance with the Guidelines; or (e) Publisher
otherwise fails materially to conform to the Guidelines with respect to any
particular Licensed Product.

 

14.4     Options
in Lieu of Termination. As alternatives to
terminating the Agreement or all licensed rights with respect to a particular
Licensed Product as set forth in Sections 14.2 and 14.3, the SCE Company may,
at its option and upon written notice to Publisher, suspend this Agreement,
entirely or with respect to a particular Licensed Product or program, for a set
period of time which shall be specified in writing to Publisher upon the
occurrence of any breach of this Agreement. Election of suspension shall not
constitute a waiver of or compromise with respect to any of the SCE Company’s
rights under this Agreement and the SCE Company may elect to terminate this
Agreement with respect to any breach.

 

14.5             No
Refunds.  In the event
that this Agreement expires or is terminated under any of Sections 14.2 through
14.4, no portion of any payments of any kind whatsoever previously provided
hereunder shall be owed or be repayable or refunded to Publisher.

 

15.       Effect of
Expiration or Termination.

 

15.1     Inventory
Statement.  Within 30
days of the date of expiration or the effective date of termination with
respect to any or all Licensed Products or this Agreement, Publisher shall
provide the SCE Company with an itemized statement, certified to be accurate by
an officer of Publisher, specifying the number of unsold Units of the Licensed
Products as to which such termination applies, on a title-by-title basis, which
remain in its inventory or under its control at the time of expiration or the
effective date of termination.  The SCE
Company shall be entitled to conduct at its expense a physical inspection of
Publisher’s inventory and work in process upon reasonable written notice during
normal business hours in order to ascertain or verify such inventory and
inventory statement.

 

15.2     Reversion
of Rights.  Upon
expiration or termination and subject to Section 15.3, the licenses and related
rights herein granted to Publisher shall immediately revert to the SCE Company,
and Publisher shall cease from any further use of the SCE Confidential
Information, Licensed Trademarks and the SCE Materials and any SCE Intellectual
Property Rights therein, and, subject to the provisions of Section 15.3,
Publisher shall have no further right to continue the development, publication,
manufacture, marketing, advertising, sale or other distribution of any Licensed
Products, or to continue to use any Licensed Trademarks; provided, however,
that for a period of one year after the effective date of termination, and
subject to all the terms of Section 13, and provided this Agreement is not
terminated due to any breach or default by Publisher, Publisher may retain such
portions of the SCE Materials and the SCE Confidential Information as the SCE
Company in its sole discretion agrees are required to support end users who
possess Licensed Products but must return all these materials at the end of
such one year period. Upon expiration or termination, the licenses and related
rights herein granted to the SCE Company by Publisher shall immediately revert
to Publisher, and the SCE Company shall cease from any further use of Product
Information and any Publisher Intellectual Property Rights

 

24

 

therein; provided that the
SCE Company may continue the manufacture, marketing, advertising, sale and
other such distribution of any SCE Company demonstration discs containing
Publisher’s Product Information which Publisher had previously approved.

 

15.3     Disposal
of Unsold Units Upon Termination. In the event of termination
of this Agreement under sections 14.2(ii), (iv), or (v), Publisher may sell off
existing inventories of Units of the Disc Products, on a non-exclusive basis,
and strictly in accordance with this Agreement, for a period of 90 days from
the date of expiration or effective date of termination of this Agreement, and
provided such inventories have not been manufactured solely or principally for
sale during such period.  Subsequent to
the expiration of such 90 day period, or in the event this Agreement is
terminated under Sections 14.2(i), (iii), (vi), (vii), or (viii), any and all Units
of the Disc Products remaining in Publisher’s inventory or otherwise under its
control shall be destroyed by Publisher within five (5) business days of
such expiration or termination date. Within five (5) business days after
such destruction, Publisher shall provide the SCE Company with an itemized
statement, certified to be accurate by an officer of Publisher, indicating the
number of Units of the Licensed Products which have been destroyed (on a
title-by-title basis), the location and date of such destruction, and the
disposition of the remains of such destroyed materials.

 

15.4     Disposal
of Unsold Units Upon Non-Renewal. In the event that the Term
expires and this Agreement is not renewed, Publisher may continue to publish
those Licensed Products containing Executable Software whose development was
completed before or during the Term, and to use the Licensed Trademarks
strictly, only and directly in connection with such publication, until the Term
expires or, if later, until the second anniversary of the 31 January next
following such completion. Upon expiration of the Term or, the extended period for
publishing Licensed Products, Publisher may sell off existing inventories of
such Licensed Products on a non-exclusive basis for a period of 180 days from
the applicable expiration date; provided that such inventory is not
manufactured solely or principally for sale within such sell-off period.

 

15.5     Return
of the SCE Materials and the SCE Confidential Information.  Upon the expiration or earlier termination of
this Agreement or following either the 180 day period or the 90 day period
referenced in Sections 15.4 and 15.3 and subject to Section 15.2,
Publisher shall immediately deliver to the SCE Company, or if and to the extent
requested by the SCE Company, destroy, all SCE Materials and any and all copies
thereof, and Publisher and the SCE Company shall, upon the request of the other
party, immediately deliver to the other party, or to the extent requested by
such party destroy, all Confidential Information of the other party, including
any and all copies thereof, which the other party previously furnished to it in
furtherance of this Agreement. Within five (5) working days after any such
destruction, Publisher or the SCE Company, as appropriate, shall provide the
other party with a certificate of destruction and an itemized statement, each
certified to be accurate by an officer of Publisher, indicating the number of
copies or units of the SCE Materials or SCE Confidential Information which have
been destroyed, the location and date of such destruction and the disposition
of the remains of such destroyed materials. 
In the event that Publisher fails to return or certify the destruction
of the SCE Materials or SCE Confidential Information and the SCE Company must
resort to legal means (including any use of lawyers) to recover the SCE
Materials or SCE Confidential Information or the value thereof, all costs,
including the SCE Company’s reasonable lawyers’ fees, shall be borne by
Publisher, and the SCE Company may, in addition to the SCE Company’s other remedies,
withhold such amounts from any payment otherwise due from the SCE Company to
Publisher under any agreement between the SCE Company and Publisher.

 

15.6     Extension
of this Agreement; Termination Without Prejudice.  The SCE

 

25

 

Company
shall be under no obligation to extend this Agreement notwithstanding any
actions taken by either of the parties prior to the expiration of this
Agreement.  Upon the expiration of this
Agreement, neither party shall be liable to the other for any damages (whether
direct, indirect, consequential or incidental, and including any expenditures,
loss of profits or prospective profits) sustained or arising out of or alleged
to have been sustained or to have arisen out of such expiration.  The expiration or termination of this
Agreement shall be without prejudice to any rights or remedies which one party
may otherwise have against the other party, and shall not excuse either party
from liability with respect to any events occurring prior to expiration or the
effective date of termination.

 

16.       Miscellaneous
Provisions.

 

16.1     Notices.  All notices or other communications required
or desired to be sent to either of the parties shall be in writing and shall be
sent by registered or certified mail, postage prepaid, or sent by recognized
international courier service, or facsimile, with charges prepaid.  The address for all notices or other
communications required to be sent to the SCE Company or Publisher,
respectively, shall be the mailing address stated in the preamble hereof, or
such other address as may be provided by written notice from one party to the
other on at least ten (10) days’ prior written notice.  Any such notice shall be effective upon the
date of actual receipt, as confirmed by the receiving party.

 

16.2     Audit
Provisions.  Publisher
shall keep full, complete, and accurate books of accounts and records covering
all transactions relating to this Agreement. 
Publisher shall preserve such books of accounts, records, documents, and
materials for a period of [*] after the expiration or earlier termination of
this Agreement.  Acceptance by the SCE
Company of any accounting statement, purchase order, or payment hereunder will
not preclude the SCE Company from challenging or questioning the accuracy
thereof at a later time. In the event that the SCE Company reasonably believes
that the pricing information provided by Publisher with respect to any Licensed
Product is not accurate, the SCE Company shall be entitled to request
additional documentation from Publisher to support the pricing information
provided for such Licensed Product. In addition, during the Term and for a
period of [*] thereafter and upon the giving of reasonable prior written notice
to Publisher, at the SCE Company’s expense, representatives of the SCE Company
shall be given access to, and the right to inspect, audit, and make copies and
summaries of and take extracts from, such portions of all books and records of
Publisher, and Publisher’s affiliates and branch offices, as pertain to the
Licensed Products and any payments due or credits received hereunder. Any such
audit shall take place during normal business hours and shall, at the SCE
Company’s sole election, be conducted either by an independent certified
accountant or by an appropriately professionally qualified SCE Company
employee.  In the event that such
inspection reveals any under-reporting of any payment due to the SCE Company,
Publisher shall immediately pay the SCE Company such amount.  In the event that any audit conducted by the
SCE Company reveals that Publisher has under-reported any payment due to the
SCE Company hereunder by [*] or more for the relevant audit period, then in
addition to the payment of the appropriate amount due to the SCE Company, Publisher
shall reimburse the SCE Company for all reasonable audit costs for that audit
and any and all collection costs to recover any unpaid amounts.

 

16.3     Force
Majeure.  Neither the
SCE Company nor Publisher shall be liable for any loss or damage or be deemed
to be in breach of this Agreement if its failure to perform or failure to cure
any of its obligations under this Agreement results from any event or
circumstance beyond its reasonable control, including any natural disaster,
fire, flood, earthquake or other Act of God; shortage of equipment, materials,
supplies or transportation facilities; strike or other industrial dispute; war
or rebellion; shutdown or delay in power, telephone or other essential service
due to the

 

26

 

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

 

 

failure of computer or
communications equipment or otherwise; provided, however, that the party
interfered with gives the other party written notice thereof promptly, and, in
any event, within fifteen (15) business days of discovery of any such Force
Majeure condition. If notice of the existence of any Force Majeure condition is
provided within such period, the time for performance or cure shall be extended
for a period equal to the duration of the Force Majeure event or circumstance
described in such notice, except that any such cause shall not excuse the
payment of any sums owed to the SCE Company prior to, during or after the occurrence
of any such Force Majeure condition.  In
the event that the Force Majeure condition continues for more than 60 days, the
SCE Company may terminate this Agreement for cause by providing written notice
to Publisher to such effect.

 

16.4     No
Agency, Partnership or Joint Venture.  The relationship between the SCE Company and
Publisher, respectively, is that of licensor and licensee.  Both parties are independent contractors and
neither party is the legal representative, agent, joint venturer, partner or employee
of the other party for any purpose whatsoever. Neither party has any right or
authority to assume or create any obligations of any kind or to make any
representation or warranty on behalf of the other party, whether express or
implied, or to bind the other party in any respect whatsoever.

 

16.5     Assignment.
The SCE Company has entered into this Agreement based upon the
particular reputation, capabilities and experience of Publisher and its
officers, directors and employees. 
Except as provided in this Agreement, Publisher may not assign,
sublicense, subcontract, encumber or otherwise transfer this Agreement or any
of its rights hereunder, nor delegate or otherwise transfer any of its
obligations hereunder, to any third party unless the prior written consent of
the SCE Company shall first be obtained. Any attempted or purported assignment,
delegation or other such transfer, directly or indirectly, without the required
consent of the SCE Company shall be void and a material breach of this
Agreement. Subject to the foregoing, this Agreement shall inure to the benefit
of the parties and their respective successors and permitted assigns (other
than in connection with any of the events referenced in Section 14.2(iv).)  The SCE Company shall have the right to assign
any and all of its rights and obligations hereunder to any Affiliate(s) or
to any company in the Sony family group of companies.

 

16.6     Non-solicitation.  Neither Publisher nor any of its affilates,
by itself, its officers, employees or agents, or indirectly, shall during the
Term, induce or seek to induce, on an individually targeted basis, the
employment or the engagement of the services of, any employee of the SCE
Company or any of its Affiliates, whose services are (a) specifically
engaged in product development or directly related functions or (b) otherwise
reasonably deemed by his or her employer to be of material importance to the
protection of its legitimate business interests, and (c) with whom
Publisher or any of its affiliates shall have had contact or dealings during
the Term. The foregoing provisions shall continue to apply for a period of 12
months after this Agreement expires or is terminated.

 

16.7     Compliance
with Applicable Laws.  The parties
shall at all times comply with all applicable laws and regulations and all
conventions and treaties to which their countries are a party or relating to or
in any way affecting this Agreement and the performance by the parties of this
Agreement, including the US Children’s Online Privacy Protection Act and all
other laws and regulations relating to the gathering, handling and
dissemination of all data from or concerning end users of Online Products. Each
party, at its own expense, shall negotiate and obtain any approval, license or
permit required in the performance of its obligations, and shall declare,
record or take such steps to render this Agreement binding, including the
recording of this Agreement with any appropriate governmental authorities (if
required).

 

16.8     Legal
Costs and Expenses.  In
the event it is necessary for either party to retain the services of a lawyer
to enforce the provisions of

 

27

 

this Agreement or to file or
defend any action arising out of this Agreement, then the prevailing party in
any such action shall be entitled, in addition to any other rights and remedies
available to it at law or in equity, to recover from the other party its
reasonable fees for lawyers and expert witnesses, plus such court costs and
expenses as may be fixed by any court of competent jurisdiction. The term
“prevailing party” for the purposes of this Section shall include a
defendant who has by motion, judgment, verdict or dismissal by the court,
successfully defended against any claim that has been asserted against it.

 

16.9     Remedies.
Unless expressly set forth to the contrary, either party’s election of
any remedies provided for in this Agreement shall not be exclusive of any other
remedies at law or equity, and all such remedies shall be deemed to be cumulative.
Any breach of Sections 2, 3, 5, 6, 7.1 – 7.7, 13 or 15 of this Agreement would
cause significant and irreparable harm to the SCE Company, the extent of which
would be difficult to ascertain and for which damages might not be an adequate
remedy. Accordingly, in addition to any other remedies, including damages to
which the SCE Company may be entitled, in the event of a breach or threatened
breach by Publisher, or any of its directors, officers, employees, agents or
permitted consultants or subcontractors, of any such Section or Sections
of this Agreement, the SCE Company shall be entitled to the immediate issuance
without bond or other security, of ex parte equitable relief, including
injunctive relief, or, if a bond is required under applicable law, on the
posting of a bond in an amount not to exceed USD [*], enjoining any breach or
threatened breach of any or all of such provisions.  In addition, if Publisher fails to comply
with any of its obligations as set forth herein, the SCE Company shall be
entitled to an accounting and repayment of all forms of compensation,
commissions, remuneration or benefits which Publisher directly or indirectly
realizes as a result of or arising in connection with any such failure to
comply.  Such remedy shall be in addition
to and not in limitation of any injunctive relief or other remedies to which
the SCE Company may be entitled under this Agreement or otherwise at law or in
equity.

 

16.10  Severability.  In the event that any provision of this
Agreement or portion thereof is determined by a court of competent jurisdiction
to be invalid or otherwise unenforceable, such provision or portion shall be
enforced to the extent possible consistent with the stated intention of the
parties, or, if incapable of such enforcement, shall be deemed to be deleted
from this Agreement, while the remainder of this Agreement shall continue in
full force and remain in effect according to its stated terms and conditions.

 

16.11  Sections
Surviving Expiration or Termination.  The following Sections shall survive the
expiration or earlier termination of this Agreement for any reason: 5, 6.2,
6.3, 6.4, 7.10, 9, 10, 11, 13, 14.5, 15 and 16 and any terms in any Regional
Rider that are expressly designated as surviving termination.

 

16.12  Waiver.
No failure or delay by either party in exercising any right, power or
remedy under this Agreement shall operate as a waiver of any such right, power
or remedy. No waiver of any provision of this Agreement shall be effective
unless in writing and signed by the party against whom such waiver is sought to
be enforced.  Any waiver by either party
of any provision of this Agreement shall not be construed as a waiver of any
other provision of this Agreement, nor shall such waiver operate or be
construed as a waiver of such provision respecting any future event or
circumstance.

 

16.13  Modification
and Amendment. The SCE Company reserves the right, at any time upon
reasonable notice to Publisher, to amend the relevant provisions of this
Agreement or the Guidelines, to take account of or in response to any decision,
order, or objection of any court or governmental or other competition authority
of competent jurisdiction, or any statutory or similar measures that give
effect to any such decision (from which this Agreement and the Guidelines are
not exempt) or to reflect any undertaking by the SCE Company to any such
authority.  Any such amendment shall be
of

 

28

 

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

 

 

prospective application only
and shall not be applied to any Licensed Products submitted to the SCE Company
pursuant to Section 6 prior to the date of the SCE Company’s notice of
amendment.  In the event that Publisher
is unwilling to accept any such amendment, then Publisher shall have the right
to terminate this Agreement by providing written notice to the SCE Company no
more than 90 days following the date of the SCE Company’s notice of amendment.  The provisions of Section 15.3 shall
come into effect upon any such termination by Publisher. Subject to the
remainder of this Section 16.13 and except as otherwise provided in this
Agreement, no modification or amendment of any provision of this Agreement
shall be effective unless in writing and signed by both of the parties.

 

16.14  Interpretation.
The section headings used in this Agreement are intended primarily for
reference and shall not by themselves determine the construction or
interpretation of this Agreement or any portion hereof.  Any reference to section numbers are to the
sections of this Agreement.  Any
reference to persons includes natural persons as well as organizations, including
firms, partnerships, companies and corporations.  Any phrase introduced by the terms
“including,” “include,” “in particular,” or any similar expression shall be
construed as illustrative and shall not limit the category preceding those
terms.

 

16.15  Integration.  This Agreement, together with the Guidelines,
constitutes the entire agreement between the SCE Company and Publisher and
supersedes all prior or contemporaneous agreements, proposals, representations,
understandings and communications between the SCE Company and Publisher,
whether oral or written, with respect to the subject matter hereof, including
any PlayStation 3 Confidentiality and Nondisclosure Agreement between the SCE
Company and Publisher.  Publisher is not
relying upon any statement, representation, warranty or understanding, whether
negligently or innocently made, of any person other than as expressly set out
in this Agreement.

 

16.16  Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original, and together shall
constitute one and the same instrument.

 

16.17  Construction.  This Agreement shall be fairly interpreted in
accordance with its terms and without any strict construction in favor of or
against either of the parties.

 

THIS
AGREEMENT HAS BEEN ENTERED INTO ON THE DATE STATED AT THE BEGINNING OF IT.

 

	
  SONY
  COMPUTER ENTERTAINMENT

  	
   

  	
  THQ INC.

  
	
  EUROPE
  LIMITED

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Jim Ryan

  	
   

  	
  By:

  	
  /s/ Ian Curran

  
	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Jim Ryan

  	
   

  	
  Print Name:

  	
  Ian Curran

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  EVP & Co-COO

  	
   

  	
  Title:

  	
  EVP Global Publishing

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  8 July 2010

  	
   

  	
  Date:

  	
  6-24-10

  
	
   

  	
   

  	
   

  
	
  NOT AN
  AGREEMENT UNTIL

  	
   

  	
   

  
	
  EXECUTED
  BY BOTH PARTIES

  	
   

  	
   

  
										

 

29

 

GLOBAL PLAYSTATION®3 FORMAT

 

LICENSED PUBLISHER AGREEMENT

 

Sony Computer Entertainment Europe Limited

Regional Rider

 

1.        Incorporation

 

This Rider’s terms and
conditions are incorporated into and read in conjunction with the terms and
conditions of the Global PlayStation 3 Format Licensed Publisher’s Agreement
signed by Publisher (“Global Terms”).

 

2.        Definitions
and Interpretation

 

All capitalized words and
phrases referenced in this Rider that are not expressly defined herein shall
have the meanings set forth in the Definitions section of the Global Terms.

 

3.        Territory

 

3.1      The Territory is expressly limited to the
countries and territories specified in the Schedule to this Rider.

 

3.2                 SCEE shall be entitled to
modify and amend the Territory from time to time during the Term by providing
written notice of any such changes to Publisher. In the event a country is
excluded from the Territory, SCEE shall deliver to Publisher a written notice
stating the number of days within which Publisher must cease the marketing,
sale or distribution of Licensed Products there (or authorizing others to do
so) and any further use of the SCE Materials or any SCE Intellectual Property
Rights.

 

4.                        License

 

4.1                 The rights
granted to Publisher under Section 2 of the Global Terms shall not be
exercised in respect of any Executable Software or Licensed Products outside of
the Territory unless and until Publisher shall be authorized to do so pursuant
to a current LPA with the applicable Affiliate.

 

4.2                 All sums paid
by Publisher after the Effective Date under any Development System Agreement
entered into by Publisher shall be treated as license fees and SCEE shall have
no obligation to refund all or any portion of any such sums.

 

5.                        SCEE Intellectual Property Rights

 

Nothing
in Section 5 of the Global Terms shall be taken to prevent Publisher from
challenging the validity of the SCE Intellectual Property Rights.

 

6.                        Quality Standards for Licensed Products

 

6.1                 The testing and
verification for conformity to the Guidelines under Section 6.1 of the
Global Terms may be conducted, at Publisher’s election, by an independent
external testing service (if and when such service becomes available). In those
cases, the parties acknowledge and agree that Publisher will require each such
independent external testing service to conduct such testing and verification
in place of SCEE and will assume all the obligations of SCEE under Section 6.1
of the Global Terms, including responsibility for advising Publisher of the
results of such reviews, specifying the reasons for any

 

30

 

failure and stating what revisions are required, re-testing and for
providing written confirmation that any software or materials submitted conform
to the Guidelines. The timeframes within which an independent external testing
service must carry out each stage of any testing or verification shall be
agreed between such service and Publisher and SCEE shall have no responsibility
or liability whatsoever arising from a failure by such service to meet such
timeframes. Where Publisher elects to use an independent external testing
service to test Executable Software that service shall be responsible for
delivering Master Discs to SCEE or the Designated Manufacturing Facility.

 

6.2                 Where any
software or materials submitted under Section 6.1 of the Global Terms are
not approved, as an alternative to making required corrections or improvements,
or to providing any additional information requested by SCEE, or in the event
that Publisher wishes to contest the outcome of SCEE’s testing or verification
in relation to any specific product, Publisher may have recourse to the appeals
process specified in the Guidelines.

 

7.                        Manufacture of Disc Products

 

7.1                 In no
circumstances shall SCEE or the Designated Manufacturing Facility treat any of
Publisher’s Licensed Products in any way more or less favourably, in terms of
production turnaround times or otherwise, than the Licensed Products of any
other Licensed Publisher of SCEE or than Executable Software games published by
SCEE itself.

 

7.2                 Publisher shall
purchase [*] for the following items and services from the Designated
Manufacturing Facility (and the terms of Section 7 of the Global Terms
shall be construed accordingly):

 

(i)                      PlayStation 3 Format Discs
(including demo discs);

(ii)                   Artwork of mechanicals to be reproduced or
otherwise displayed on any PlayStation 3 Format Discs;

(iii)                Cases for all Disc Products; and

(iv)               Assembly of all components of Disc Products.

 

8.                        Delivery of Disc Products

 

8.1                 Delivery of Disc Products shall be made
ex-factory the Designated Manufacturing Facility and the Designated
Manufacturing Facility shall use reasonable endeavours, subject to available
manufacturing capacity, to fulfil Publisher’s Purchase Orders by the
Publisher’s requested ex-factory delivery date but does not, in any event,
guarantee to do so. All risk of loss or damage in transit to any and all Disc
Products manufactured pursuant to the Publisher’s Purchase Orders shall pass to
Publisher immediately upon first handling by Publisher’s carrier.

 

8.2                 SCEE offers free delivery to EEA countries
(only) by regular road (and/or, where applicable, sea) services, with
airfreight or other expedited delivery available but the incremental costs
thereof for Publisher’s account. The minimum quantity per game per drop is [*]
Units.

 

9.                        Charges Applicable to Licensed Products

 

9.1                 In accordance with Section 9 of the
Global Terms, Publisher shall pay the Designated Manufacturing Facility the
following charge for each finished Unit (“Platform Charge”):

 

	
  For Units distributed on
  Blu-ray Disc [*]GB

  	
   

  	
  [*]

  
	
  For Units distributed on
  Blu-ray Disc [*]GB

  	
   

  	
  [*]

  

 

31

 

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

 

 

Where
the Publisher has a direct distribution presence in any country, “Price to
Trade” means Publisher’s average net price to trade weighted by revenue across
those countries within the Territory where Publisher has a direct distribution
presence. Price is defined as gross invoice value to retail net of on-invoice
trade margins and net of volume rebates properly attributable to sales of
Units, but prior to any credit, deduction, or rebate for co-op advertising or
other marketing or merchandising support. Allowances, credits or discounts for
returns, price protection and prompt payment are specifically excluded. Barter,
or other offsets, are not permissible as deductions.

 

A
Publisher shall be deemed to have a direct distribution presence in any country
where [*]% or more of Publisher’s Unit turnover is transacted direct by either
Publisher or Publisher’s wholly owned subsidiaries with retail customers, and
the trade price in each case is the price to retail.

 

Where
the Publisher has an indirect distribution presence in any country, “Price to
Trade” means Publisher’s average net price to trade weighted by revenue across
those countries within the Territory where Publisher has an indirect
distribution presence, [*]. Price is defined as gross invoice value to retail
(where Publisher makes any sales direct to retail in a country where it has an
indirect distribution presence) and/or distributor (as applicable) net of
on-invoice trade margins and net of volume rebates properly attributable to
sales of Units, but prior to any credit, deduction, or rebate for co-op
advertising or other marketing or merchandising support, divided by [*]. Where
Publisher does not have responsibility for marketing costs, then an agreed
uplift to “Price to Trade” for the marketing cost is to be agreed with SCEE and
added. Allowances, credits or discounts for returns, price protection and
prompt payment are specifically excluded. Barter, or other offsets, are not
permissible as deductions.

 

A
Publisher shall be deemed to have an indirect distribution presence in any
country where [*]% or more of Publisher’s Unit turnover is transacted via
non-wholly owned or third party distributors, and the trade price in each case
is the Publisher’s price to its distributor. Accordingly, for the purpose of
computing the Platform Charge, Publisher’s Price to Trade for indirect
distribution shall be [*].

 

The
Platform Charge is calculated, for each Disc Product, in each year of the Term
(for the period 1 April to 31 March) by reference to Publisher’s average
net weighted Price to Trade as at day one launch of the relevant Disc Product.
For the first year in which Units of a particular Disc Product are sold, the
Price to Trade calculation will be made by reference to the Publisher’s
projected day one prices to trade and annual sales to trade for the relevant
Disc Product For each subsequent year (for the period 1 April to 31
March), Price to Trade will be calculated in accordance with Publisher’s actual
day one prices to trade and actual sales to trade in the prior annual period.

 

Where
the SCE Company grants consent to bundling Units pursuant to Section 3.3
of the Global Terms, then any Units incorporated into any such bundle shall be
excluded from both the units and the Price to Trade calculations detailed
above.

 

The
Price to Trade for each Disc Product shall be independently verified on
signature of this Agreement and thereafter on an annual basis (on, or as soon
as possible after, 1 April in each year in which Units of the Disc Product
are sold) for the purpose of calculating the correct Platform Charge.

 

The
base currency for the Platform Charge is the Euro, based on revenue-weighted
averages of all relevant currencies in the Territory. For non-Euro currencies,
the FT mid day spot-rate as of January 31 in each year of the Term will be
used. In the event at the end of any calendar quarter any non-Euro

 

32

 

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

 

 

currency has moved against the Euro by more than [*] from the January 31
base rate, the base rate will reset from the first of the following quarter.

 

The exercise of agreeing Publisher’s calculation for the Platform
Charge will be independently conducted.

 

There will be no retrospective adjustment of Platform Charges, notwithstanding
SCEE’s right to audit under the Global Terms.

 

9.2                 The Platform Charge assumes a standard 1-disc
product and covers mastering, disc, 4-colour disc label, standard box and
automated assembly of all components, but excludes the cost of Printed Materials
other than disc label.  Platform Charge
is €[*]/unit for publisher promotional discs. Publisher promotional discs will
have a standard 4-colour disc label and be supplied in a jewel case (included
in Platform Charge). An inlay may be provided as Printed Materials. The charge
for manual insertion of inlays for promotional discs shall be as individually
quoted in each case. Shrink Wrap is available as an option subject to
incremental charges (in addition to the otherwise applicable Platform Charge
specified above) of €[*]/unit (or as individually quoted in each case for
products in non-standard packaging). The Platform Charge and minimum order and
reorder quantities for other “non-standard” products and/or production
processes (subject to availability) shall be as individually quoted in each
case. Further details relating to the Platform Charge, including minimum order
quantities, will be specified in Guidelines.

 

9.3                 Migration. Subject to
all the terms and conditions of this paragraph 9.3, from 1 September 2008,
Publisher may opt to migrate the Price to Trade of a particular Disc Product to
any nominated Price to Trade for the purposes of calculating the Platform
Charge for the relevant Units of such Disc Product under this paragraph 9. The
option permits only a single new nominated Price to Trade in respect of each
Disc Product and may only take effect nine months after submission of the first
order for the relevant Units. For the purposes of calculating the Platform
Charge only, the nominated new Price to Trade is deemed to be no lower than €[*].
There is no requirement for Publisher to migrate the Price to Trade in every
country in which it sells Units for the relevant Disc Product, or to do so at
the same time, subject to SCEE’s prior approval in each case and to any
conditions imposed by SCEE from time to time in respect of such arrangements.

 

9.4                 Platinum. From 1 August 2008,
Units of a particular Disc Product may carry Platinum branding (as specified in
the Guidelines) provided that publisher has ordered more than [*] Units of the
relevant Disc Product, the original Price to Trade for the Disc Product was in
excess of €[*], and that Publisher has opted to migrate the Price to Trade for
that Disc Product, in accordance with paragraph 9.3 of this Rider, to a sum not
exceeding €[*]. SCEE reserves the right to change the qualifying criteria for
Platinum branding from time to time.

 

9.5                 In addition to the Platform Charge, Publisher
shall also pay to SCEE:

 

9.5.1                     Indirect
Income. [*] of all direct or indirect revenue, income or other monetary value
earned, recognized or otherwise derived from Licensed Products, including in
connection with the online distribution and Online Gameplay of Licensed
Products, and all websites or networks on which they are published or may be
played, including revenue sharing or advertising revenue; and

 

33

 

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

 

 

9.5.2                     Publishing off
PLAYSTATION Network. Where SCEE consents, pursuant to Section 3.3 of the
Global Terms, to Publisher distributing Online Products, Online Gameplay or any
services associated with Online Gameplay other than over the
PlayStation®Network, Publisher shall also pay to SCEE [*] of all direct or indirect
revenue, income or other monetary value earned, recognized or otherwise derived
from any such distribution of Online Products, Online Gameplay or services
associated with Online Gameplay, including one-off payments and subscription
income (comprising total value of receipts from subscriptions and the total
value of retail sales of vouchers for Online Gameplay).

 

Publisher
shall provide SCEE with reports of the gross revenues actually received by
Publisher (or otherwise credited to its benefit), and shall make all payments
due to SCEE, pursuant to this paragraph 9.3, in accordance with the Guidelines
or as otherwise notified to Publisher. SCEE shall have the right to adopt and
implement online revenue accounting verification mechanisms at its sole discretion.

 

9.6                 The Platform
Charge for products developed utilising SCE Materials and/or SCE Intellectual
Property Rights and/or, subject to Council Directive 91/250/EEC (“the
Directive”), SCE Confidential Information, but manufactured in reliance on
Article 6 of the Directive, shall be the otherwise applicable Platform
Charge less only such sum as represents from time to time the costs of raw
materials and for production services (including for utilisation of Sony’s
proprietary disc mastering technology) for the products concerned which would
otherwise have been deducted from SCEE’s receipts from the Designated
Manufacturing Facility (“the Article 6 Platform Charge”). If Publisher has
products so manufactured in reliance on Article 6 of the Directive, then Publisher
shall furnish SCEE, within 28 days following the close of each calendar month:
(i) a written reporting of the number of inventory units (by product
title) of products so manufactured during such calendar month; (ii) an
external auditor’s certificate (or similar independent certificate reasonably
acceptable to SCEE) confirming the completeness and accuracy of such reporting;
(iii) Publisher’s remittance for the Article 6 Platform Charge
multiplied by the number of inventory units reflected in such reporting. Any
failure fully and promptly to comply with the foregoing reporting and payment
obligations shall constitute a breach of this Agreement not capable of remedy,
entitling SCEE forthwith to terminate this Agreement, and upon termination by
SCEE for such cause, the provisions of Section 15.2 of the Global Terms
shall come into effect. SCEE shall upon reasonable written request provide
Publisher with details of the aforementioned costs of raw materials and
production services if Publisher has legitimately exercised its rights under
Article 6 of the Directive or genuinely intends to exercise and rely upon
such rights. However, SCEE reserves the right to require Publisher to execute a
separate Non-Disclosure Agreement before making such information available.

 

9.7                 No claim for
credit due to shortage of Disc Products as delivered to carrier will be allowed
unless it is made within four working days from the date of receipt at
Publisher’s receiving destination.

 

9.8                 If Publisher
fails to pay any amount payable by it under this Agreement, SCEE may charge
Publisher interest on the overdue amount. Publisher shall pay the interest
immediately on demand, from the due date up to the date of actual payment,
after as well as before judgment, at the rate of [*] per annum above the base
rate for the time being of National Westminster Bank Plc.

 

10.                 Representations
and Warranties

 

SCEE warrants that all
PlayStation 3 Format Discs manufactured by the Designated Manufacturing
Facility for Publisher pursuant to Section 7 of the Global Terms shall be
free from defects in materials and workmanship under normal use and service at
time of delivery in accordance with Section 7.9 of the Global Terms. The
sole obligation of SCEE under this warranty shall be, for a period of 90 days
from the date of

 

34

 

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

 

 

delivery of such PlayStation
3 Format Discs in accordance with Section 7.9 of the Global Terms, at
SCEE’s election, either (i) to replace such defective PlayStation 3 Format
Discs or (ii) to issue credit for, or to refund to Publisher the Platform
Charge of such defective PlayStation 3 Format Discs and to reimburse Publisher
its reasonable return shipping costs. 
Such warranty is the only warranty applicable to Licensed Products
manufactured by the Designated Manufacturing Facility for Publisher pursuant to
Section 7 of the Global Terms. This warranty shall not apply to damage
resulting from accident, fair wear and tear, wilful damage, alteration,
negligence, abnormal conditions of use, failure to follow directions for use
(whether given in instruction manuals or otherwise howsoever) or misuse of
Licensed Products, or to PlayStation 3 Format Discs comprising less than [*] in
the aggregate of the total number of Disc Products manufactured by the
Designated Manufacturing Facility for Publisher per Purchase Order of any
Executable Software game.  If, during such
90 (ninety) day period, defects appear as aforesaid, Publisher shall notify
SCEE and, upon request by SCEE (but not otherwise), return such defective
PlayStation 3 Format Discs, with a written description of the defect claimed,
to such location as SCEE shall designate. SCEE shall not accept for
replacement, credit or refund as aforesaid any Licensed Products except factory
defective PlayStation 3 Format Discs (i.e. PlayStation 3 Format Discs that are
not free from defects in materials and workmanship under normal use and
service). All returns of defective PlayStation 3 Format Discs shall be subject
to prior written authorisation by SCEE, not unreasonably to be withheld. If no
defect exists or the defect is not such as to be covered under the above warranty,
Publisher shall reimburse SCEE for expenses incurred in processing and
analysing the PlayStation 3 Format Discs.

 

11.      Limitations
of Liability

 

Nothing in this Agreement
shall exclude or limit SCEE’s liability in relation to claims arising from
deceit, fraud, the injury or death of any person resulting from the proven
negligence of SCEE.

 

12.      Notices

 

All notices sent to SCEE
under Section 16.1 of the Global Terms shall be directed to its Senior
Vice President, Third Party Relations & Business Affairs.

 

13.      Governing
Law

 

This Agreement shall be
governed by and interpreted in accordance with English Law. The parties
irrevocably agree for the exclusive benefit of SCEE that the English Courts
shall have jurisdiction to adjudicate any proceeding, suit or action arising
out of or in connection with this Agreement. However, nothing contained in this
paragraph 13 shall limit the right of SCEE to take any such proceeding, suit or
action against Publisher in any other court of competent jurisdiction, nor
shall the taking of any such proceeding, suit or action in one or more
jurisdictions preclude the taking of any other such proceeding, suit or action
in any other jurisdiction, whether concurrently or not, to the extent permitted
by the law of such other jurisdiction. Publisher shall have the right to take
any such proceeding, suit or action against SCEE only in the English Courts.

 

35

 

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

 

 

SCHEDULE

 

Territory

 

	
  Albania

  	
   

  	
  Algeria

  	
   

  	
  Andorra

  
	
  Angola

  	
   

  	
  Armenia

  	
   

  	
  Australia

  
	
  Austria

  	
   

  	
  Azerbaijan

  	
   

  	
  Bahrain

  
	
  Bangladesh

  	
   

  	
  Belgium

  	
   

  	
  Belorussia

  
	
  Bosnia Herzegovina

  	
   

  	
  Botswana

  	
   

  	
  Bulgaria

  
	
  Cameroon

  	
   

  	
  Croatia

  	
   

  	
  Cyprus

  
	
  Czech Republic

  	
   

  	
  Denmark

  	
   

  	
  Djibouti

  
	
  Egypt

  	
   

  	
  Estonia

  	
   

  	
  Ethiopia

  
	
  Fiji

  	
   

  	
  Finland

  	
   

  	
  France

  
	
  Georgia

  	
   

  	
  Germany

  	
   

  	
  Ghana

  
	
  Gibraltar

  	
   

  	
  Greece

  	
   

  	
  Hungary

  
	
  Iceland

  	
   

  	
  India

  	
   

  	
  Italy

  
	
  Ireland

  	
   

  	
  Israel

  	
   

  	
  Kenya

  
	
  Jordan

  	
   

  	
  Kazakhstan

  	
   

  	
  Kyrgyzstan

  
	
  Kosovo

  	
   

  	
  Kuwait

  	
   

  	
  Liechtenstein

  
	
  Latvia

  	
   

  	
  Lebanon

  	
   

  	
  Macedonia

  
	
  Lithuania

  	
   

  	
  Luxembourg

  	
   

  	
  Malta & Gozo

  
	
  Madagascar

  	
   

  	
  Malawi

  	
   

  	
  Monaco

  
	
  Mauritius

  	
   

  	
  Moldova

  	
   

  	
  Mozambique

  
	
  Montenegro

  	
   

  	
  Morocco

  	
   

  	
  New Zealand

  
	
  Namibia

  	
   

  	
  Netherlands

  	
   

  	
  Oman

  
	
  Nigeria

  	
   

  	
  Norway

  	
   

  	
  Poland

  
	
  Pakistan

  	
   

  	
  Papua New Guinea

  	
   

  	
  Romania

  
	
  Portugal

  	
   

  	
  Qatar

  	
   

  	
  Saudi Arabia

  
	
  Russian Federation

  	
   

  	
  San Marino

  	
   

  	
  Slovenia

  
	
  Senegal

  	
   

  	
  Slovakia

  	
   

  	
  Spain

  
	
  Somalia

  	
   

  	
  South Africa

  	
   

  	
  Switzerland

  
	
  Swaziland (South Africa)

  	
   

  	
  Sweden

  	
   

  	
  Tunisia

  
	
  Tajikistan

  	
   

  	
  Tanzania

  	
   

  	
  Uganda

  
	
  Turkey

  	
   

  	
  Turkmenistan

  	
   

  	
  United Kingdom

  
	
  Ukraine

  	
   

  	
  United Arab Emirates

  	
   

  	
  Yemen

  
	
  Uzbekistan

  	
   

  	
  Vatican

  	
   

  	
  Zimbabwe

  
	
  Zaire

  	
   

  	
  Zambia

  	
   

  	
   

  

 

Such countries in addition
to those specified above in which the PAL television standard obtains and which
SCEE, in its sole discretion as representative of Sony Computer Entertainment
worldwide, determines from time to time to include within the Territory by
notice to Publisher.

 

36elreexh1015salepurchagmt0811.htm - Generated by SEC Publisher for SEC Filing

 

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]