Document:

Exhibit 10.46

 

SONY COMPUTER ENTERTAINMENT AMERICA INC.

 

AND

 

ACTIVISION INC.

 

[LOGO]

 

PLAYSTATION® PORTABLE (“PSP”)

 

PSP LICENSED PUBLISHER AGREEMENT

 

 

TABLE OF CONTENTS

 

	
  SECTION:

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  DEFINITION OF TERMS

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  LICENSE
  GRANT

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  DEVELOPMENT OF LICENSED PSP PRODUCTS

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  LIMITATIONS ON LICENSES; RESERVATION OF
  RIGHTS

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  QUALITY STANDARDS FOR THE LICENSED PSP
  PRODUCTS

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  MANUFACTURE OF THE LICENSED PSP PRODUCTS

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  MARKETING AND DISTRIBUTION

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  ROYALTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  INDEMNITIES. LIMITED LIABILITY

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  SCEA INTELLECTUAL PROPERTY RIGHTS

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  INFRINGEMENT OF SCEA INTELLECTUAL PROPERTY RIGHTS
  BY THIRD PARTIES 16

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  CONFIDENTIALITY

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  TERM AND TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  EFFECT OF EXPIRATION OR TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  MISCELLANEOUS PROVISIONS

  	
   

  

 

 

PLAYSTATION® PORTABLE (“PSP”)

 

LICENSED PSP PUBLISHER AGREEMENT

 

This LICENSED
PSP PUBLISHER AGREEMENT for the PlayStation Portable, (the “Agreement” or “ PSP LPA”), entered into as of the 15th day of September,
2004 (the “Effective Date”), by and between SONY COMPUTER ENTERTAINMENT AMERICA
INC., with offices at 919 E. Hillsdale Boulevard, Foster City, CA 94404
(hereinafter “SCEA”), and Activision Inc., with offices at 3100 Ocean Road,
Santa Monica, CA 90405 (hereinafter Publisher”).

 

WHEREAS, SCEA,
its parent company, Sony Computer Entertainment Inc., and certain of their
affiliates and companies within the group of companies of which any of them
form a part (collectively referred to herein as “SCE” or alternatively “Sony”)
are designing and developing, and licensing core components of, a portable,
handheld computer entertainment system known as the PlayStation® Portable or
the “PSP” computer entertainment system (hereinafter referred to as the “ PSP Player”).

 

WHEREAS, SCEA
has the right to grant licenses to certain SCEA Intellectual Property Rights
within its licensed territory (as defined below) in connection with the PSP
Player.

 

WHEREAS,
Publisher desires to be granted a non-exclusive license to publish, develop,
have manufactured, market, distribute and sell Licensed PSP Products (as
defined below) pursuant to the terms and conditions set forth in this
Agreement; and SCEA is willing, on the terms and subject to the conditions of
this Agreement, to grant Publisher such a license.

 

NOW, THEREFORE,
in consideration of the representations, warranties and covenants contained
herein, and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, Publisher and SCEA hereby agree as follows:

 

1.                                       Definition of Terms.

 

1.1                                 “Advertising
Materials” means any advertising, marketing, merchandising, promotional, public
relations (including press releases) and display materials relating to or
concerning Licensed PSP Products or proposed Licensed PSP Products, or any other
advertising, merchandising, promotional, public relations (including press
releases) and display materials depicting any of the Licensed Trademarks. For
purposes of this Agreement, Advertising Materials include any advertisements in
which the PSP Player is referred to or used in any way, including but not
limited to giving the PSP Player away as prizes in contests or sweepstakes and
the public display of the PSP Player in product placement opportunities.

 

1.2                                 “Affiliate
of SCEA” means, as applicable, other regional SCE companies, including but not
limited to, Sony Computer Entertainment Inc. in Japan, Sony Computer
Entertainment Europe Ltd. in the United Kingdom, Sony Computer Entertainment
Korea, Sony

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

1

 

Computer Entertainment Hong Kong, Sony Computer Entertainment China, or
such other Sony Computer Entertainment entity as may be established from time
to time.

 

1.3                                 “Designated
Manufacturing Facility” means a manufacturing facility or facilities which is
designated by SCEA in its sole discretion to manufacture Licensed PSP Products or
their component parts, which may include manufacturing facilities owned and
operated by affiliated companies of SCEA.

 

1.4                                 “Executable
Software” means software which includes Product Software and any software
provided directly or indirectly by SCEA or-an Affiliate of-SCEA designed for
execution exclusively on the PSP Player and which has the ability to
communicate with the software resident in the PSP Player.

 

1.5                                 “Fiscal
Year” means a year measured from April 1 to March 31.

 

1.6                                 “Guidelines”
shall mean any guidelines of SCEA or an Affiliate of SCEA with respect to SCEA
Intellectual Property Rights, which may be set forth in the PSP SourceBook or
in other documentation provided by SCEA or an Affiliate of SCEA to Publisher.

 

1.7                                 “Legal
Attribution Line” means the legal attribution line used on SCEA marketing or
other materials, which shall be substantially similar to the following:
“Product copyright and trademarks are the property of the respective publisher
or their licensors”.

 

1.8                                 “Legal
Copy” means any legal or contractual information required to be used in
connection with a Licensed PSP Product or Product Information, including but
not limited to copyright and trademark attributions, contractual credits and
developer or distribution credits.

 

1.9                                 “Licensed
PSP Developer Agreement” or “PSP LDA” means a valid and current license
agreement for the development of Licensed PSP Products for the PSP Player,
fully executed between a Licensed PSP Developer and SCEA or an Affiliate of
SCEA.

 

1.10                           “Licensed
PSP Products” means the Executable Software (which may be combined with
Executable Software of other Licensed PSP Publishers or Licensed PSP
Developers), which shall consist of one interactive entertainment game product
developed for the PSP Player per Unit, in final form developed exclusively for
the PSP Player. Publisher shall have no right to package or bundle more than
one product developed for the PSP Player in a single Unit unless separately
agreed with SCEA. The term “Licensed PSP Products” expressly excludes
traditional non-interactive entertainment products such as movies or music or
other interactive entertainment products that are not complete games.

 

1.11                           “Licensed
PSP Publisher” means any publisher that has signed a valid and then current
Licensed PSP Publisher Agreement.

 

1.12                           “Licensed
PSP Publisher Agreement” or “PSP LPA” means a valid and current license
agreement for the publication, development, manufacture, marketing,
distribution and sale of Licensed PSP Products for the PSP Player, fully executed
between a Licensed PSP Publisher and SCEA or an Affiliate of SCEA.

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

2

 

1.13                           “Licensed
Territory” means the United States (including its possessions and territories)
and Canada. The Licensed Territory may be modified or supplemented by SCEA from
time to time pursuant to Section 4.4 below.

 

1.14                           “Licensed
Trademarks” means the trademarks, service marks, trade dress, logos and other
icons or indicia designated by SCEA in the PSP SourceBook or other Guidelines
for use on or in connection with Licensed PSP Products. Nothing contained in
this Agreement shall in any way grant Publisher the right to use the trademark
“Sony” in any manner. SCEA may amend such Licensed Trademarks from time to time
in the PSP SourceBook or other Guidelines or upon written notice to Publisher.

 

1.15                           “Manufacturing
Specifications” means specifications setting forth terms relating to the
manufacture and assembly of PSP Format Discs, Packaging, Printed Materials and
each of their component parts, which shall be set forth in the PSP SourceBook
or other documentation provided by SCEA or a Designated Manufacturing Facility
to Publisher and which may be amended from time to time upon reasonable notice
to Publisher.

 

1.16                           “Master
Disc” means a recordable disc in the form requested by SCEA containing final
pre-production Executable Software for a Licensed PSP Product.

 

1.17                           “Packaging”
means, with respect to each Licensed PSP Product, the carton, containers,
packaging, edge labels and other proprietary labels, trade dress and wrapping
materials, including any jewel case (or other package or container) or parts
thereof, but excluding Printed-Materials and PSP Format Discs.

 

1.18                           “PSP
Format Discs” means the discs formatted for use with the PSP Player which, for
purposes of this Agreement, are manufactured on behalf of Publisher and contain
Licensed PSP Products or SCEA Demo Discs.

 

1.19                           “Printed
Materials” means all artwork and mechanicals set forth on the disc label of the
PSP Format Disc relating to any of the Licensed PSP Products and on or inside
any Packaging for the Licensed PSP Product, and all instructional manuals,
liners, inserts, trade dress and other user information to be inserted into the
Packaging.

 

1.20                           “Product
Information” means any information owned or licensed by Publisher relating in
any way to Licensed PSP Products, including but not limited to demos, videos,
hints and tips, artwork, depictions of Licensed PSP Product cover art and
videotaped interviews.

 

1.21                           “Product
Proposal” shall have the meaning set forth in Section 5.2.1 hereto.

 

1.22                           “Product
Software” means any software including audio and video material developed by a
Licensed PSP Publisher or licensed PSP Developer, which, either by itself or
combined with Product Software of other licensees„when integrated with software
provided by SCEA or an Affiliate of SCEA, creates Executable Software. It is
understood that Product Software contains no proprietary information of Sony or
any other rights of SCEA.

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

3

 

1.23                           “PSP
Development System Agreement” means an agreement entered into between SCEA and
a Licensed PSP Publisher, Licensed PSP Developer or other licensee for the sale
or license of Development Tools.

 

1.25                           “PSP
Development Tools” means the PSP development tools sold or licensed to a PSP
Publisher or Licensed PSP Developer for use in the development of Executable
Software for the PSP Player.

 

1.26                           “Publisher
Intellectual Property Rights” means those intellectual property rights,
including but not limited to patents and other patent rights, copyrights,
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 all other
proprietary or intellectual property rights throughout the universe, which
pertain to Product Software, Product Information, Printed Materials,
Advertising Materials or other rights of Publisher required or necessary under
this Agreement.

 

1.27                           “Purchase
Order” means a written purchase order processed in accordance with the terms of
Section 62.2 hereto, the Manufacturing Specifications or other terms
provided separately by SCEA or a Designated Manufacturing Facility to
Publisher.

 

1.28                           “SCEA
Demo Disc” means any demonstration disc developed by SCEA.

 

1.29                           “SCEA
Established Third Party Demo Disc Programs” means (i) any consumer or
trade demonstration disc program specified in the PSP SourceBook, and (ii) any
other third party demo disc program established by SCEA for Licensed PSP
Publishers.

 

1.30                           “SCEA
Intellectual Property Rights” means those intellectual property rights,
including but not limited to patents and other patent rights, copyrights,
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 all other
proprietary or intellectual property rights throughout the universe, which are
required to ensure compatibility with the PSP Player or which pertain to the
Licensed Trademarks.

 

1.31                           “SCEA
Product Code” means the product identification number assigned to each Licensed
PSP Product, which shall consist of separate product identification numbers for
multiple disc sets (i.e., SLUS-xxxxx). 
This SCEA Product Code is used on the Packaging and PSP Format Disc
relating to each Licensed PSP Product, as well as on most communications
between SCEA and Publisher as a mode of identifying the Licensed PSP Product
other than by title.

 

1.32                           “SCE
Materials” means any data, object code, source code, firmware, documentation
(or any pan(s) of any of the foregoing), related to the PSP Player, selected in
the sole judgment of SCEA, which are provided or supplied by SCEA or an
Affiliate of SCEA to Publisher or any Licensed PSP Developer and/or other
Licensed PSP Publisher. For purposes of this Agreement, SCE Materials shall not
include any hardware portions of the Development Tools, but shall include
firmware in such hardware.

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

4

 

1.33                           “PSP
SourceBook” means the PSP SourceBook (or any other reference guide containing
information similar to the PSP SourceBook but designated with a different name)
prepared by SCEA, which is provided separately to Publisher. The PSP
SourceBook is provided separately to Publisher. 
The PSP SourceBook is designed to serve as the first point of reference
by Publisher in every phase of the development, approval, manufacture and
marketing of Licensed PSP Products.

 

1.34                           “Standard
Rebate” shall mean the rebate offered by SCEA on titles of Licensed PSP
Products that achieve specified sales volumes as set forth in Section 8.4
of this Agreement.

 

1.35                           “Third
Party Demo Disc” means any demo disc developed and marketed by a Licensed PSP
Publisher, which complies with the terms of an SCEA Established Third Party
Demo Disc Program.

 

1.36                           “Unit”
means an individual copy of a Licensed PSP Product title regardless of-the
number of PSP Format Discs constituting such Licensed PSP Product title.

 

1.37                           “Wholesale
Price” or “WSP” shall mean the greater of (i) the published price of the
Licensed PSP Product offered to retailers by Publisher as evidenced by a sell
sheet or price list issued by Publisher no later than thirty (30) days before
first commercial shipment of the Licensed PSP Product, or (ii) the actual
price paid by retailers upon the first commercial shipment of a Licensed PSP
Product without offsets, rebates or deductions from invoices of any kind.

 

2.                                       License.

 

2.1                                 License Grant.  SCEA grants to Publisher, and Publisher
hereby accepts, for the term of this Agreement, within the Licensed Territory,
under SCEA Intellectual Property Rights owned, controlled or licensed by SCEA,
a non-exclusive, non-transferable license, without the right to sublicense
(except as specifically provided herein), to publish Licensed PSP Products
using SCE Materials, which right shall be limited to the following rights and
other rights-set forth in, and in accordance with the terms of, this PSP LPA: (i) to
produce or develop Licensed PSP Products and to enter into agreements with
Licensed PSP Developers and other third parties to develop Licensed PSP
Products; (ii) to have such Licensed PSP Products manufactured; (iii) to
market, distribute and sell such Licensed PSP Products and to authorize others
to do so within the licensed ( territory; (iv) to use the Licensed
Trademarks strictly and only in connection with the development, manufacturing,
marketing, packaging, advertising and promotion of the Licensed PSP Products,
and subject to SCEA’s right of approval as provided herein; and (v) to
sublicense to end users the right to use the Licensed PSP Products for noncommercial
purposes in conjunction with the PSP Player 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 PSP Player and the third
party licensing program related thereto and not to the original PlayStation,
PlayStation 2 entertainment systems. or third party
licensing program related thereto. Licenses relating to the original
PlayStation or PlayStation 2 entertainment systems are subject to separate
agreements via- SCE and any license

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

5

 

of rights to
Publisher under such separate agreements shall not confer on Publisher any
rights under the PSP Player and vice versa.

 

3.                                       Development of Licensed PSP Products.

 

3.1                                 Right to Develop.  This PSP LPA grants Publisher the right to
develop Licensed PSP Products and the right to purchase or license Development
Tools, as is appropriate, from SCEA or its designated agent, pursuant to a
separate Development System Agreement with SCEA.  In developing Executable Software (or
portions thereof), Publisher and its agents shall fully comply in all respects
with any and all technical specifications which may from time to time be issued
by SCEA. In the event that Publisher uses third party tools to develop
Executable Software, Publisher shall be responsible for ensuring that it has
obtained appropriate licenses for such use.

 

3.2                                 Development by Third Parties.  Except as otherwise set forth herein,
Publisher shall not provide SCE Materials or SCEA’s Confidential Information to
any third party. Publisher shall be responsible for determining that third
parties meet the criteria set forth herein. Publisher may contract with a third
party for development of Licensed PSP Products, provided that such third party
is: (i) a Licensed PSP Publisher, (ii) a Licensed PSP Developer, or (iii) an
SCEA-authorized subcontractor in compliance with the provisions of Section 16.6.
Publisher shall notify SCEA in writing of the identity of any such third party
within thirty (30) days of entering into an agreement or other arrangement with
the third party.

 

4.                                       Limitations on Licenses; Reservation of Rights.

 

4.1                                 Reverse Engineering Prohibited.  Other than as expressly permitted by SCEA in
writing, 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 derive source
code from, all or any portion of the SCE Materials, or permit, assist or
encourage any third party to do so. Other than as expressly permitted by SCEA
in writing, 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 permitted by SCEA. SCEA
shall permit Publisher to study the performance, design and operation of the
Development tools solely for the limited purposes of developing and testing
Publisher’s software applications, or to build tools to assist Publisher with
the development and testing of software applications for Licensed PSP Products.
Any tools developed or derived by Publisher resulting from the study of the
performance, design or operation of the Development Tools shall be considered
as derivative products of the SCE Materials for copyright purposes, but may be
treated as trade secrets of Publisher. In no event shall Publisher patent any
tools 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 express written permission of SCEA. Use of
such tools shall be strictly limited to the creation or testing of Licensed PSP
Products and any other use, direct or indirect of such tools is strictly
prohibited. Publisher shall be required in all cases to pay royalties in
accordance with Section 8 to SCEA on any of Publisher’s products utilizing
any SCE Materials or derivative works made therefrom. Moreover, Publisher shall
bear all risks arising from incompatibility of its Licensed PSP Product and the
PSP Player resulting from use of

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

6

 

Publisher-created tools.  The burden of proof under this Section shall
be on Publisher to show by clear and convincing evidence if a dispute arises,
and SCEA reserves the right to require Publisher to furnish evidence
satisfactory to SCEA that Publisher has complied with this Section.

 

4.2                                 Reservation of SCEA’s Rights.

 

4.2.1                        Limitation of Rights to Licenses Granted.
The licenses granted in this Agreement extend only to the publication,
development, manufacture, marketing, distribution and sale of Licensed PSP
Products for use on the PSP Player, in such formats as may be designated by
SCEA within the Licensed Territory and does not permit transshipment of the
Licensed PSP Products to unlicensed territories unless expressly approved in
writing by SCEA or the Affiliate of SCEA with responsibility for licensing
publishing rights in the region. Without limiting the generality of the
foregoing and except as otherwise provided herein, Publisher shall not
distribute or transmit the Executable Software or the Licensed PSP Products via
electronic means or any other means now known or hereafter devised, including
without limitation, via wireless, cable, fiber optic means, telephone lines, microwave
and/or radio waves, or over a network of computers or other devices.
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 purpose of facilitating development; 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. This Agreement does not
grant any right or license under any SCEA Intellectual Property Rights or
otherwise, except as expressly provided herein, and no other right or license
is to be implied by or inferred from any provision of this Agreement or the
conduct of the parties hereunder.

 

4.2.2                        Other Use of SCE Materials and SCEA Intellectual
Property Rights. Publisher shall not make use of any SCE
Materials or any SCEA Intellectual Property Rights (or any portion thereof)
except as authorized by and in compliance with the provisions of this
Agreement. Publisher shall not use the Executable Software, SCE Materials or
SCEA’s Confidential Information in connection with the development of any
software for any emulator or other computer hardware or software system. No
right, license or privilege has been granted to Publisher hereunder concerning
the development of any collateral product or other use or purpose of any kind
whatsoever which displays or depicts any of the Licensed Trademarks. The rights
set forth in Section 2.1(v) hereto are limited to the right to
sublicense such rights to end users for non-commercial use; any public
performance relating to the Licensed PSP Product or the PSP Player is prohibited
unless expressly authorized in writing by SCEA.

 

4.3                                 Reservation of Publisher’s Rights.
Separate and apart from SCE Materials and other rights licensed to Publisher by
SCEA hereunder, as between Publisher and SCEA, Publisher retains all rights, title
and interest in and to the Product Software, and the Product Proposals and
Product Information related thereto, including without limitation Publisher
Intellectual Property Rights therein, as well as Publisher’s rights in any
source code and other underlying material such as artwork and music related
thereto and any names used as titles for Licensed PSP Products and other
trademarks used by Publisher. Nothing in this Agreement shall be construed to
restrict the right of Publisher to develop, distribute or transmit products
incorporating the Product Software and such underlying material (separate and
apart from the

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

7

 

SCE Materials) for any hardware platform or service other than the PSP
Player, or to use Printed Materials or Advertising Materials approved by SCEA
as provided herein (provided that such Printed Materials and/or Advertising
Materials do not contain any Licensed Trademarks) as Publisher determines for
such other platforms. SCEA shall not do or cause to be done any act or thing in
any way impairing or tending to Impair or dilute any of Publisher’s rights,
title or interests hereunder. Notwithstanding the foregoing, Publisher shall
not distribute or transmit Product Software which is intended to be used with
the PSP Player via electronic means or any other means now known or hereafter
devised, including without limitation, via wireless, cable, fiber optic means,
telephone lines, microwave or radio waves, or a network of computers or other
devices, except as otherwise permitted in Section 4.2.1 hereto.

 

4.4                                 Additions to and Deletions from Licensed Territory.
SCEA may, from time to time, add one or more countries to the Licensed
Territory by providing written notice of such addition to Publisher. SCEA shall
also have the right to delete send intends to delete any countries from the
Licensed Territory if, in SCEA’s reasonable judgment, the laws or enforcement
of such laws in such countries do not protect SCEA Intellectual Property
Rights. In the event a country is deleted from the Licensed Territory, SCEA
shall deliver to Publisher a notice stating the number of days within which
Publisher shall cease distributing Licensed PSP Products and shall retrieve any
Development Tools located in any such deleted country. Publisher shall cease
distributing Licensed PSP Products, and retrieve any Development Tools,
directly or through subcontractors, by the end of the period stated in such
notice.

 

4.5                                 PSP SourceBook Requirement.  Publisher shall be required to comply with
all the provisions of the PSP SourceBook, including without limitation the
Technical Requirements Checklist therein, when published, or within a
commercially reasonable time following its publication to incorporate such
provisions, as if such provisions were set forth in this Agreement.

 

4.6                                 Covenant Not to Sue. Publisher, on behalf
of itself and its representatives, affiliates, and any other person or entity
acting on its behalf, hereby agrees not to file any action against and
covenants not to sue SCEA, its parent, affiliates, subsidiaries or related
companies on any and all claims, rights, charges, damages or causes of action
arising from the infringement or alleged infringement of any U.S. or
international patent owned by, assigned or exclusively licensed to Publisher.
This Section shall survive any termination or expiration of this
Agreement.

 

5.                                       Quality Standards for the Licensed PSP Products.

 

5.1                                 Quality Assurance Generally. The
Licensed PSP Products (and all portions thereof) and Publisher’s use of any
Licensed Trademarks shall be subject to SCEA’s prior written approval, which
shall not be unreasonably withheld or delayed and which shall be within SCEA’s
sole discretion as to acceptable standards of quality. SCEA shall have the
right at any stage of the development of a Licensed PSP Product to review such
Licensed PSP Product to ensure that it meets SCEA’s quality assurance
standards. All Licensed PSP Products will be developed to utilize substantially
the particular capabilities of the PSP Player’s proprietary hardware, software
and graphics. No approval by SCEA of any element or stage of development of any
Licensed PSP Product shall be deemed an approval of any other element or stage
of such Licensed PSP Product, nor shall any such approval be deemed to
constitute a waiver of any of SCEA’s rights under this Agreement. In addition,
SCEA’s approval of any element or any stage of development

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

8

 

of any Licensed
PSP Product shall not release Publisher from any of its representations and
warranties in Section 9.2 hereunder.

 

5.2                                 Product Proposals.

 

5.2.1                        Submission of Product Proposal. All
Product Proposal submissions shall be in conformance with the submissions
provisions as published in the PSP SourceBook as published or amended.
Publisher shall submit to SCEA for SCEA’s written approval or disapproval,
which shall not be unreasonably withheld or delayed, a written concept document
(the “Product Proposal”) prior to commencing development of a Licensed
Product.  Such Product Proposal most contain all information specified in the PSP SourceBook, as
well as any additional information that SCEA may deem to be useful in
evaluating the proposed Licensed PSP Product.

 

5.2.2                        Approval of Product Proposal. After
SCEA’s review of Publisher’s Product Proposal, Publisher will receive written
notice from SCEA of the status of the Product Proposal, which may range from
“Pass” to “Review” to “Fail.” Such conditions shall have the meanings ascribed
to them in the PSP SourceBook, and may be changed from time to time by SCEA. If
a Product Proposal receives a “Fail”, then neither Publisher nor any other
Licensed PSP Developer or Licensed PSP Publisher may re-submit such Product
Proposal without significant, substantive revisions. SCEA shall have no
obligation to approve any Product Proposal submitted by Publisher. Any
development conducted by or at the direction of Publisher and any legal
commitment relating to development work shall be at Publisher’s own financial
and commercial risk. Publisher shall not construe approval of a Product
Proposal as a commitment by SCEA to grant final approval to such Licensed PSP
Product. Nothing herein shall restrict SCEA from commercially exploiting any
coincidentally similar concept(s) and/or product(s), which have been
independently developed by SCEA, an Affiliate of SCEA or any third party.

 

5.2.3                        Changes to Product Proposal.  Publisher shall notify SCEA promptly in
writing in the event of any material proposed change in any portion of the
Product Proposal. SCEA’s approval of a Product Proposal shall not obligate
Publisher to continue with development or production of the proposed Licensed
PSP Product, provided that Publisher must immediately notify SCEA in writing if
it discontinues, cancels or otherwise delays past the original scheduled
delivery date the development of any proposed Licensed PSP Product. In the
event that Publisher licenses a proposed Licensed PSP Product from another
Licensed PSP Publisher or a Licensed PS? Developer, it shall immediately notify
SCEA of such change and must resubmit such Licensed PSP Product to SCEA for
approval in accordance with the provisions of Section 5.2.1 above.

 

5.3                                 Work-in-Progress.

 

5.3.1                        Submission and Review of Work-in-Progress.
SCEA shall require Publisher to submit to SCEA work-in-progress on Licensed PSP
Products at intervals to be defined in the PSP SourceBook, throughout the
development of the Licensed PSP Product, or if requested by SCEA on written
notice to Publisher, at any time during the development process. Publisher
shall be responsible for submitting work-in-progress to SCEA in accordance with
the product Review Process as determined by SCEA or otherwise set out in the
PSP SourceBook.

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

9

 

Failure to submit work-in-progress in accordance with any stage of the
Review Process may, at SCEA’s discretion, result in
revocation of approval of such Product Proposal.

 

5.3.2                        Approval of Work in Progress.  SCEA shall have the right to approve, reject
or require additional information with respect to each stage of the Review
Process.  Publisher shall make submission
of the Licensed Product at first playable, pre-alpha, alpha, beta and final, or
at such development stages to be more fully defined in the PSP SourceBook. SCEA
shall approve each development stage of the Licensed Product or otherwise
specify in writing the reasons for any rejection or request for additional
information and shall state what corrections or improvements are necessary to
obtain approval. if any stage of the Review Process is
not provided to SCEA or is not successfully met after a reasonable cure period
agreed to between SCEA and Publisher, SCEA shall have the right to revoke the
approval of Publisher’s Product Proposal.

 

5.3.3                        Cancellation or Delay; Conditions of Approval.  Licensed PSP Products which are canceled by
Publisher or are late in meeting the final Executable Software delivery date by
more than three (3) months (without agreeing with SCEA on a modified final
delivery date) shall be subject to the termination provisions set forth in Section 14.3
hereto. In addition, failure to make changes required by SCEA to the Licensed
PSP Product at any stage of the Review Process, or making material changes to
the Licensed PSP Product without SCEA’s approval, may subject Publisher to the
termination provisions set forth in Section 14.3 hereto.

 

5.4                                 Approval of Executable Software.  On or before the date specified in the
Product Proposal or as determined by SCEA pursuant to the Review Process,
Publisher shall deliver to SCEA for its inspection and evaluation, a final
version of the Executable Software for the proposed Licensed PSP Product. SCEA
will evaluate such Executable Software and notify Publisher in writing of its approval
or disapproval, which shall not be unreasonably withheld or delayed. If such
Executable Software is disapproved, SCEA shall specify in writing the reasons
for such disapproval and state what corrections and improvements are necessary.
After making the necessary corrections and improvements, Publisher shall submit
a new version of such Executable Software for SCEA’s approval. SCEA shall have
the right to disapprove Executable Software if it fails to comply with SCEA’s
corrections or improvements or one or more conditions as set forth in the PSP
SourceBook with no obligation to review all elements of any version of
Executable Software. All final versions of Executable software shall be
submitted in the format prescribed by SCEA and shall include such number of
Master Discs as SCEA may require from time is time. Publisher hereby (i) warrants
that all final versions of Executable Software are fully tested; (ii) shall
use its best efforts to ensure such Executable Software is fully debugged prior
to submission to SCEA; and (iii) warrants that all versions of Executable
Software comply or will comply with standards set forth in the PSP SourceBook
or other documentation provided by SCEA to Publisher. In addition, prior to
manufacture of Executable Software, Publisher must sign an accountability form
stating that (x) Publisher approves the release of such Executable Software for
manufacture in its current form and (y) Publisher shall be fully responsible
for any problems related to such Executable Software.

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

10

 

5.5                                 Printed Materials.

 

5.5.1                        Compliance with Guidelines.  For each proposed Licensed PSP Product,
Publisher shall be responsible, at Publisher’s expense, for creating and
developing Printed Materials. All Printed Materials shall comply with the
Guidelines, which may be amended from time to time, provided that Publisher
shall, except as otherwise provided herein, only. be required to implement
amended Guidelines in subsequent orders of Printed Materials and shall not be
required to recall or destroy previously manufactured Printed Materials, unless
such Printed Materials do not comply with the original requirements in the
Guidelines or unless explicitly required to do so in writing by SCEA.

 

5.5.2                        Submission and Approval of Printed Materials.  No later than submission of final Executable
Software for a proposed Licensed PSP Product, Publisher shall also deliver to
SCEA, for review and evaluation, the proposed final Printed Materials and a
form of limited warranty for the proposed Licensed PSP Product. Failure to meet
any scheduled release dates for a Licensed PSP Product is solely the risk and
responsibility of Publisher, and SCEA assumes no
responsibility for Publisher failing to meet such scheduled release dates due
to this submission process. The quality of such Printed Materials shall be of
the same quality as that associated with other commercially available high
quality software products.  If any of the
Printed Materials are disapproved, SCEA shall specify the reasons for such
disapproval and state what corrections are necessary. SCEA shall have no
liability to Publisher for costs incurred or irrevocably committed to by
Publisher for production of Printed Materials that are disapproved by SCEA.
After making the necessary corrections to any disapproved Printed Materials,
Publisher must submit new Printed Materials for approval by SCEA.  SCEA shall not unreasonably withhold or delay
its review of Printed Materials.

 

5.6                                 Advertising Materials.

 

5.6.1                        Submission and Approval of Advertising Materials.  Pre-production samples of all Advertising Materials
shall be submitted by Publisher to SCEA, at Publisher’s expense, prior to any
actual production, use or distribution of any such items by Publisher or on its
behalf. SCEA shall evaluate and approve such Advertising Materials, which
approval shall not be unreasonably withheld or delayed, as to the following
standards: (i) the content, quality, and style of the overall
advertisement; (ii) the quality, style, appearance and usage of any of the
Licensed Trademarks; (iii) appropriate references of any required notices;
and (iv) compliance with the Guidelines. if any
of the Advertising Materials are disapproved, SCEA shall specify the reasons
for such disapproval and state what corrections are necessary. SCEA may require
Publisher to immediately withdraw and reprint any Advertising Materials that
have been published but have not received the written approval of SCEA.  SCEA shall have no liability to Publisher for
costs incurred or irrevocably committed to by Publisher for production of
Advertising Materials that are disapproved by SCEA. For each Licensed PSP
Product, Publisher shall be required to deliver to SCEA an accountability form
stating that all Advertising Materials for such Licensed PSP Product comply or
will comply with the Guidelines for use of the Licensed Trademarks.  After making the necessary corrections to any
disapproved Advertising Materials, Publisher must submit new proposed
Advertising Materials for approval by SCEA.

 

5.6.2                        Failure to Comply: Three Strikes Program.  Publishers who fail to obtain SCEA’s approval
of Advertising Materials prior to broadcast or publication shall be subject to
the provisions of the “Three Strikes” program outlined in the PSP SourceBook.
Failure

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

11

 

to obtain SCEA’s approval of Advertising Materials could result in
termination of this PSP LPA or termination of approval of the Licensed PSP
Product, or could subject Publisher to the provisions of Section 14.4
hereto.  Failure to meet any scheduled
release dates for Advertising Materials is solely the risk and responsibility
of Publisher, and SCEA assumes no responsibility for
Publisher failing to meet such scheduled release dates due to approval
requirements as set forth in this Section.

 

5.6.3                        SCEA Materials.  Subject in each instance to the prior written
approval of SCEA, Publisher may use advertising materials owned by SCEA
pertaining to the PSP Player or to the Licensed Trademarks on such Advertising
Materials as may, in Publisher’s judgment, promote the
sale of Licensed PSP Products.

 

5.7                                 Rating Requirements.  If required by SCEA or any governmental
entity, Publisher shall submit each Licensed PSP Product to a consumer advisory
ratings system designated by SCEA or such governmental entity for the purpose
of obtaining rating code(s) for each Licensed PSP Product. Any and all costs
and expenses incurred in connection with obtaining such rating code(s) shall be
borne solely by Publisher. Any required consumer advisory rating code(s) shall
be displayed on the Licensed PSP Product and in the associated Printed
Materials and Advertising Materials, at Publisher’s cost and expense, in
accordance with the PSP SourceBook or other documentation provided by SCEA to
Publisher.

 

5.8                                 Publisher’s Additional Quality Assurance
Obligations.  If at any
time or times subsequent to the approval of Executable Software and Printed
Materials, SCEA identifies any material defects (such materiality to be
determined by SCEA in its sole discretion) with respect to the Licensed PSP
Product, or in the event that SCEA identifies any improper use of its Licensed
Trademarks or SCE Materials with respect to the Licensed PSP Product, or any
such material defects or improper use are brought to the attention of SCEA,
Publisher shall, at no cost to SCEA, promptly correct any such material
defects, or improper use of Licensed Trademarks or SCE Materials, to SCEA’s
commercially reasonable satisfaction, which may include, if necessary in SCEA’s
judgment, the recall and re-release of such Licensed PSP Product. In the event
any Units of Licensed PSP 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 or to remove such
defective Units from any affected channels of distribution, provided, however,
that if Publisher is not acting as the distributor and/or seller for the
Licensed PSP Products, its obligation hereunder shall be to use its best
efforts to arrange removal of such Licensed PSP Product from channels of
distribution. Publisher shall provide all end-user support for the Licensed PSP
Products and SCEA expressly disclaims any obligation to provide end-user
support on Publisher’s Licensed PSP Products.

 

6                                          Manufacture of the Licensed PSP Products.

 

6.1                                 Manufacture of Units. Upon approval
of Executable Software and associated Printed Materials pursuant to Section 5,
and subject to Sections 6.1.2, 0.1.3 and 6.1.4 below, the Designated
Manufacturing Facility will, in accordance with the terms and conditions set
forth in this Section 6, and at Publisher’s expense (a) manufacture
PSP Format Discs for Publisher; (b) manufacture Publisher’s Packaging
and/or Printed Materials; and/or (c) assemble the PSP Format Discs with
the Printed Materials and the packaging. 
Publisher shall comply with all

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

12

 

Manufacturing Specifications related to the particular terms set forth
herein. SCEA reserves the right to insert or require the Publisher to insert
certain Printed Materials relating to the PSP Player or Licensed Trademarks
into each Unit.

 

6.1.1                        Manufacture of PSP Format Discs.

 

6.1.1.1               Designated Manufacturing Facilities.  To insure compatibility of the PSP Format
Discs with the PSP Player, consistent quality of the Licensed PSP Product and
incorporation of anti-piracy security systems, SCEA shall designate and license
a Designated Manufacturing Facility to reproduce PSP Format Discs.  Publisher shall purchase all of its
requirements for PSP Format Discs from such Designated Manufacturing Facility
during the term of the Agreement. Any Designated Manufacturing Facility shall
be a third party beneficiary of this Agreement.

 

6.1.1.2               Creation of Master Licensed PSP Product.  Pursuant to Section 5.4 in connection
with final testing of Executable Software, Publisher shall provide SCEA with
the number of Master Discs specified in the PSP SourceBook. A Designated Manufacturing
Facility shall create from one of the fully approved Master Discs provided by
Publisher the original master of the Licensed PSP Product from which all other
copies of the Licensed PSP Product are to be replicated. Publisher shall be
responsible for the costs, as determined by the Designated Manufacturing
Facility, of producing such original master. 
In order to insure against loss or damage to the copies of the
Executable Software furnished to SCEA, Publisher will retain duplicates of all
Master Discs, and neither SCEA nor any Designated Manufacturing Facility shall
be liable for loss of or damage to any Master Discs or Executable Software.

 

6.1.2                        Manufacture of Printed Materials.

 

6.1.2.1               Manufacture by Designated Manufacturing Facility.  If Publisher elects to obtain Printed
Materials from a Designated Manufacturing Facility, Publisher shall deliver all
SCEA-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 6.
In order to insure against loss or damage to the copies of the Printed
Materials furnished to SCEA, Publisher will retain duplicates of all Printed
Materials, and neither SCEA nor any Designated Manufacturing Facility shall he
liable for loss of or damage to any such Printed Materials.

 

6.1.2.2               Manufacture by Alternate Source.  Subject to SCEA’s approval as provided in Section 5.5.2
hereto and in this Section, Publisher may elect to be responsible for
manufacturing its own Printed Materials (other than any Artwork which may be
placed directly upon the PlayStation Disc, which Publisher will supply to the
Designated Manufacturing Facility for placement), at Publisher’s sole risk and
expense. Prior to production of each order, Publisher shall be required to
supply SCEA with samples of any Printed Materials not produced or supplied by a
Designated Manufacturing Facility, at no charge to SCEA or Designated
Manufacturing Facility, for SCEA’s approval with respect to the quality
thereof.  SCEA shall have the right to
disapprove any Printed Materials that do not comply with the Manufacturing
Specifications. Manufacturing Specifications for Printed Materials shall be
comparable to manufacturing specifications applied by SCEA to its own software
products for the PSP Player.

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

13

 

If Publisher elects to supply its own Printed Materials, neither SCEA
nor any Designated Manufacturing Facility shall be responsible for any delays
arising from use of Publisher’s own Printed Materials.

 

6.1.3                        Manufacture of Packaging.

 

6.1.3.1               Manufacture by Designated Manufacturing Facility.  To ensure consistent quality of the Licensed
PSP Products, SCEA may designate and license a Designated Manufacturing
Facility to reproduce proprietary Packaging for the PSP Player. If SCEA creates
proprietary Packaging for the PSP Player, then Publisher shall purchase [***]
of its requirements for such proprietary Packaging from a Designated
Manufacturing Facility during the term of the Agreement, and the Designated
Manufacturing Facility will manufacture such Packaging in accordance with this Section 6.

 

6.1.3.2               Manufacture by Alternate Source.  If SCEA elects to use standard,
non-proprietary Packaging for the PSP Player, then Publisher may elect to be
responsible for manufacturing its own Packaging (other than any proprietary
labels and any portion of a container containing Licensed Trademarks, which
Publisher must purchase from a Designated Manufacturing Facility) Publisher
shall assume all responsibility for the creation of such Packaging at Publisher’s
sole risk and expense. Publisher shall be responsible for encoding and printing
proprietary edge labels provided by a Designated Manufacturing Facility with
information reasonably specified by SCEA from time to time and will apply such
labels to each Unit of the Licensed PSP Product as reasonably specified by
SCEA. Prior to production of each order, Publisher shall be required to supply
SCEA with samples of any Packaging not produced or supplied by a Designated
Manufacturing Facility, at no charge to SCEA or Designated Manufacturing
Facility, for SCEA’s approval with respect to the quality. SCEA shall have the
right to disapprove any Packaging that does not comply with the Manufacturing
Specifications. Manufacturing Specifications for Packaging shall be comparable
to manufacturing specifications applied by SCEA to its own software products
for the PSP Player. If Publisher procures Packaging from an alternate source,
then it must also procure assembly services from an alternate source. If
Publisher elects to supply its own Packaging, neither SCEA nor any Designated
Manufacturing Facility shall be responsible for any delays arising from use of
Publisher’s own Packaging.

 

6.1.4                        Assembly Services.  Publisher may either procure assembly
services from a Designated Manufacturing Facility or from an alternate source.
If Publisher elects to be responsible for assembling the Licensed PSP Products,
then the Designated Manufacturing Facility shall ship the component parts of the
Licensed PSP Product to a destination provided by Publisher, at Publisher’s
sole risk and expense. SCEA shall have the right to inspect any assembly
facilities utilized by Publisher in order to determine if the component parts
of the Licensed PSP Products are being assembled in accordance with SCEA’s
quality standards.  SCEA may require that
Publisher recall any Licensed PSP Products that do not contain proprietary
labels or other material component parts or that otherwise fail to comply with
the Manufacturing Specifications, If Publisher elects to use alternate assembly
facilities, neither SCEA nor any Designated Manufacturing Facility shall be
responsible for any delays or missing component parts arising from use of
alternate assembly facilities.

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

14

 

6.2                                 Price, Payment and Terms.

 

6.2.1                        Price.  The applicable price for manufacture of any
Units of Licensed PSP Products ordered hereunder shall be provided to Publisher
by the Designated Manufacturing Facility. 
Purchase shall be subject to the terms and conditions set out in any
purchase order form supplied to Publisher by the Designated Manufacturing
Facility.

 

6.2.2                        Orders.  Publisher shall issue to a Designated
Manufacturing Facility a written Purchase Order(s) in a form designated by SCEA
and containing the information required in the Manufacturing Specifications,
with a copy to SCEA. All orders shall be subject to approval by SCEA, which
shall not be unreasonably withheld or delayed. Purchase Orders issued by
Publisher to a Designated Manufacturing Facility for each Licensed PSP Product
approved by SCEA shall be non-cancelable and be subject to the order
requirements of the Designated Manufacturing Facility.

 

6.2.3                        Payment Terms.  Purchase Orders will be invoiced as soon as
reasonably practical after receipt, and such invoice
will include both manufacturing price and royalties payable pursuant to Section 8.1
or 8.2 below for each Unit of Licensed PSP Products ordered. Each invoice will
be payable either on a cash-in-advance basis or pursuant to a letter of credit,
or at SCEA’s sole discretion, on credit terms. Terms for cash-in-advance and
letter of credit payments shall be as set forth in the PSP SourceBook.  All amounts hereunder shall be payable in
United States dollars. All associated banking charges with respect to payments
of manufacturing costs and royalties shall be borne solely by Publisher.

 

6.2.3.1               Credit Terms. SCEA may at its sole
discretion extend credit terms and limits to Publisher.  SCEA may also revoke such credit terms and
limits at its sole discretion. If Publisher qualifies for credit terms, then
orders will be invoiced upon shipment of Licensed PSP Products and each invoice
will be payable within thirty (30) days of the date of the invoice. Any overdue
sums shall bear interest at the rate of [***]. Publisher shall be additionally
liable for all costs and expenses of collection, including without limitation,
reasonable fees for attorneys and court costs.

 

6.2.3.2               General Terms.  No deduction may be made from remittances
unless an approved credit memo has been issued by a Designated Manufacturing
Facility. Neither SCEA nor a 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.  Each shipment to Publisher shall constitute a
separate sale, whether whole or partial fulfillment of any order. 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 SCEA and Designated
Manufacturing Facility.

 

6.3                                 Delivery of Licensed PSP Products.  Neither SCEA nor any Designated Manufacturing
Facility shall have an obligation to store completed Units of Licensed PSP
Products. Publisher may either specify a mode of delivery or allow the Designated
Manufacturing Facility to select a mode of delivery.

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

15

 

6.4                                 Ownership of Master Discs.  Due to the proprietary nature of the
mastering process, neither SCEA nor a Designated Manufacturing Facility shall
under any circumstances release any original master, Master Discs or other in-process
materials to Publisher. All such materials shall be and remain the sole
property of SC1A or Designated Manufacturing Facility. Notwithstanding the
foregoing, Publisher Intellectual Property Rights contained in Product Software
that is contained in such in-process materials is, as between SCEA and
Publisher, the sole and exclusive property of Publisher or its licensors (other
than SCEA or its affiliates).

 

7.                                       Marketing and Distribution.

 

7.1                                 Marketing Generally.  In accordance with the provisions of this
Agreement and at no expense to SCEA, Publisher shall, and shall direct its
distributors to, diligently market, sell and distribute the Licensed PSP
Products, and shall use commercially reasonable efforts to stimulate demand for
such Licensed PSP Products in the Licensed Territory and to supply any
resulting demand. Publisher shall use its reasonable best efforts to protect
the Licensed PSP Products from and against illegal reproduction or copying by
end users or by any other persons or entities.

 

7.2                                 Samples.  Publisher shall provide to SCEA, at no
additional cost, for SCEA’s internal use, [***] sample copies of each Licensed
PSP Product. Publisher shall pay any manufacturing costs to the Designated
Manufacturing Facility in accordance with Section 6.2, but shall not be
obligated to pay royalties, in connection with such sample Units.  In the event that Publisher assembles any
Licensed PSP Product using an alternate source, Publisher shall be responsible
for shipping such sample Units to SCEA at Publisher’s cost and expense. SCEA
shall not directly or indirectly resell any such sample copies of the Licensed
PSP Products without Publisher’s prior written consent. SCEA may give sample
copies to its employees, provided that it uses reasonable efforts to ensure
that such copies are not sold into the retail market. In addition, subject to
availability, Publisher shall sell to SCEA additional quantities of Licensed
PSP Products at the Wholesale Price for such Licensed PSP Product. Any changes
to SCEA’s policy regarding sample Units shall be set forth in the PSP
SourceBook.

 

7.3                                 Marketing Programs of SCEA.  From time to time, SCEA may invite Publisher
to participate in promotional or advertising opportunities that may feature one
or more Licensed PSP Products from one or more Licensed PSP 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, al
materials submitted by Publisher to SCEA shall be submitted subject to Section 10.2
below and delivery of such materials to SCEA shall constitute acceptance by
Publisher of the terms of the offer. Moreover, SCEA may use the Legal
Attribution Line on all multi-product marketing materials, unless otherwise
agreed in writing.

 

7.4                                 Demonstration Disc Programs.  SCEA may, from time to time, provide
opportunities for Publisher to participate in SCEA Demo Disc programs. in addition, SCEA may, from time to time, grant to Publisher
the right to create Third Party Demo Discs pursuant to SCEA Established Third
Party Demo Disc Programs. 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 PSP SourceBook or in other documentation to
be provided by

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

16

 

SCEA to Publisher.
Except as otherwise specifically set forth herein, in the PSP SourceBook or in
other documentation, Third Party Demo Discs shall be considered “Licensed PSP
Products” and shall be subject in all respects to the terms and conditions of
this Agreement pertaining to Licensed PSP Products. in
addition, the following procedures shall also apply to SCEA Demo Discs:

 

7.4.1                        SCEA Demo Discs.

 

7.4.1.1               License.  SCEA may, but shall not be obligated to,
invite Licensed PSP Publishers to participate in any SCEA Demo Disc program.
Participation by Publisher in an SCEA Demo Disc program shall be optional, if
Publisher elects to participate in an SCEA Demo Disc program and provides
Product information to SCEA in connection thereto, Publisher shall thereby grant
to SCEA a royalty-free license during the term of this Agreement in the
Licensed Territory to manufacture, use, sell, distribute, market, advertise and
otherwise promote Publisher’s Product Information as part of such SCEA Demo
Disc program. In addition, Publisher shall grant SCEA the right to feature
Publisher and Licensed PSP Product names in SCEA Demo Disc Advertising
Materials and to use copies of screen displays generated by the code,
representative video samples or other Product Information in such SCEA Demo
Disc Advertising Materials.  All
decisions relating to the selection of first and third party Product
information and all other aspects of SCEA Demo Discs shall be in the sole
discretion of SCEA.

 

7.4.1.2               Submission and Approval of Product Information.
Upon receipt of written notice that SCEA has tentatively chosen Publisher’s
Product Information for inclusion in an SCEA Demo Disc, Publisher shall deliver
to SCEA such requested Product Information by no later than the deadline set
forth in such notice. Separate notice will be sent for each SCEA Demo Disc, and
Publisher must sign each notice prior to inclusion in such SCEA Demo Disc.
Publisher shall include its own Legal Copy on the
title screen or elsewhere in the Product Information submitted to SCEA. SCEA
shall only provide the Legal Attribution Line on the SCEA Demo Disc title
screen and packaging. Publisher’s Product Information shall comply with SCEA’s
technical specifications provided to Publisher. SCEA reserves the right to
review and test the Product Information provided and request revisions prior to
inclusion on the SCEA Demo Disc. If SCEA requests changes to the Product
Information and Publisher elects to continue to participate in such Demo Disc,
Publisher shall make such changes as soon as possible after receipt of written
notice of such requested changes from SCEA, but not later than the deadline for
receipt of Product Information. Failure to make such changes and provide the
modified Product Information to SCEA by the deadline shall result in the
Product Information being removed from the SCEA Demo Disc. Costs associated
with preparation of Product Information supplied to SCEA shall be borne solely
by Publisher. Except as otherwise provided in this Section,
SCEA shall not edit or modify Product Information provided to SCEA by Publisher
without Publisher’s consent, not to be unreasonably withheld. SCEA shall
have the right to use subcontractors to assist in the development of any SCEA
Demo Disc. With respect to Product Information provided by Publisher in demo
form, the demo delivered to SCEA shall not constitute the complete Licensed PSP
Product and shall be, at a minimum, an amount sufficient to demonstrate the
Licensed PSP Product’s core features and value, without providing so much information
as to give consumers a disincentive to purchase the complete Licensed PSP
Product.

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

17

 

7.4.1.3               No Obligation to Publish.  Acceptance of Product Information for test
and review shall not be deemed confirmation that SCEA shall include the Product
Information on an SCEA Demo Disc, nor shall it constitute approval of any other
element of the Licensed PSP Product. SCEA reserves the right to choose from
products submitted from other Licensed PSP Publishers and first party products
to determine the products to be included in SCEA Demo Discs, and Publisher’s
Licensed PSP Products will not be guaranteed prominence or preferential
treatment on any SCEA Demo Disc. Nothing herein shall be construed as creating
an obligation of SCEA to publish Product Information submitted by Publisher in
any SCEA Demo Disc, nor shall SCEA be obligated to publish, advertise or
promote any SCEA Demo Disc.

 

7.4.1.4               SCEA Demo Discs Sold at Retail.  Publisher is aware and acknowledges that
certain SCEA Demo Discs may be distributed and sold by SCEA in the retail market.
If Publisher elects to participate in any SCEA Demo Disc program which is sold
in the retail market, as notified by SCEA to Publisher, Publisher acknowledges
prior to participation in any such SCEA Demo Disc that it is aware of no
limitations regarding Product Information provided to SCEA pursuant to the
terms of this Agreement which would in any way restrict SCEA’s ability to
distribute or sell such SCEA Demo Disc at retail, nor does Publisher or its
licensors (other than SCEA and/or its affiliates) have any anticipation of
receiving any compensation from such retail sales. In the event that SCEA
institutes a SCEA Demo Disc in which a fee or royalty is charged to Publisher,
SCEA and Publisher will enter into a separate agreement regarding such SCEA Demo
Disc.

 

7.4.2                        Third Party Demo Discs.

 

7.4.2.1               License.  Publisher may participate in any SCEA
Established Third Party Demo Disc Program. 
Publisher shall notify SCEA of its intention to participate in any such
program, and upon receipt of such notice, SCEA shall grant to Publisher the
right and license to use Licensed PSP Products in Third Party Demo Discs and to
use, distribute, market, advertise and otherwise promote (and, if permitted in
accordance with the terms of any SCEA Established Third Party Program or
otherwise permitted by SCEA, to sell) such Third Party Demo Discs in accordance
with the PSP SourceBook, which may be modified from time to time at the sole
discretion of SCEA. Unless separately agreed in writing with SCEA, Third Party
Demo Discs shall not be used, distributed, promoted, bundled or sold in
conjunction with other products. In addition, SCEA hereby consents to the use
of the Licensed Trademarks in connection with Third Party Demo Discs, subject
to the approval procedures set forth in this Agreement.  If any SCEA Established Third Party Demo Disc
Program is specified by SCEA to be for promotional use only and not for resale,
and such Third Party Demo Disc is subsequently discovered to be for sale, Publisher’s
right to produce Third Party Demo Discs shall thereupon be automatically
revoked, and SCEA shall have the right to terminate any related Third Party
Demo Discs in accordance with the terms of Section 14.3 or 14.4 hereto.

 

7.4.2.2               Submission and Approval of Third Party Demo Discs.
Publisher shall deliver to SCEA, for SCEA’s prior approval, a final version of
each Third Party Demo Disc in a format prescribed by SCEA. Such Third Party
Demo Disc shall comply with all requirements provided to Publisher by SCEA in
the PSP SourceBook or otherwise. In addition, SCEA shall evaluate the Third
Party Demo Disc in accordance with the approval provisions for Executable
Software and Printed Materials set forth in Sections 5.4 and 5.5, respectively.

 

[***]  The portions of this document marked with three
asterisks represent confidential portions omitted and filed separately with the
Securities and Exchange Commission.

 

18

 

Furthermore, Publisher shall obtain the approval of SCEA in connection
with any Advertising Materials relating to the Third Party Demo Discs in
accordance with the approval provisions set forth in Section 5.6. Costs
associated with Third Party Demo Discs shall be borne solely by Publisher. No
approval by SCEA of any element of any Third Party Demo Disc shall be deemed an
approval of any other element thereto, nor does any such approval constitute
final approval for the related Licensed PSP Product. Unless otherwise permitted
by SCEA, Publisher shall clearly and conspicuously state on all Third Party
Demo Disc Packaging and Printed Materials that the Third Party Demo Disc is for
promotional purposes only and not for resale.

 

7.4.2.3               Manufacture and Royalty of Third Party Demo Discs.
Publisher shall comply with all Manufacturing Specifications with respect to
the manufacture and payment for manufacturing costs of Third Party Demo Discs,
and Publisher shall also comply with all terms and conditions of Section 6
hereto. No costs incurred in the development, manufacture, licensing,
production, marketing and/or distribution (and if permitted by SCEA, sale) of
the Third Party Demo Disc shall be deducted from any amounts payable to SCEA
hereunder.  Royalties on Third Party Demo
Discs shall be as provided in Section 8.2.

 

7.5                                 Contests and Sweepstakes of Publisher.  SCEA acknowledges that, from time to time,
Publisher may conduct contests and sweepstakes to promote Licensed PSP
Products. SCEA shall permit Publisher to include contest or sweepstakes
materials in Printed Materials and Advertising Materials, subject to compliance
with the approval provisions of Section 5.5 and 5.6 hereunder, Lvov lance
with the provisions of Section 9.2 and 10.2 hereunder, and subject to the
following additional terms and conditions:

 

(i)                                     Publisher
represents that it has retained the services of a fulfillment house to
administer the contest or sweepstakes and if it has not retained the services
of a fulfillment house, Publisher represents and warrants that it has the
expertise to conduct such contests or sweepstakes, and in any event, Publisher
shall assume full responsibility for all aspects of such contest or
sweepstakes;

 

(ii)                                  Publisher
warrants that each contest, sweepstakes, and promotion, comply with local,
state and federal laws or regulations;

 

(iii)                               Publisher
represents and warrants that it has obtained the consent of all holders of
intellectual property rights required to be obtained in connection with each
contest or sweepstakes including, but not limited to, the consent of any holder
of copyrights or trademarks relating to any Advertising Materials publicizing
the contest or sweepstakes, or the prizes being awarded to winners of the
contest or sweepstakes; and

 

(iv)                              Publisher
shall make available to SCEA all contest and sweepstakes material prior to
publication in accordance with the approval process set forth in Section 5.5
or 5.6.

 

Approval by
SCEA of contest or sweepstakes materials for use in the Printed Materials or
Advertising Materials (or any use of the PSP Player or Licensed PSP Products as
prizes in such contest or sweepstakes) shall not constitute an endorsement by
SCEA of such contest or sweepstakes, nor shall such acceptance be construed as
SCEA having reviewed and

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

19

 

approved such
materials for compliance with any federal or state law, statute, regulations,
order or the like, which shall be Publisher’s sole responsibility.

 

7.6                                 PlayStation Website. All
Licensed PSP Publishers shall be required to provide Product Information for a
web page for each of its Licensed PSP Products for display on the
PlayStation promotional website, or other website or websites as may be
operated by SCEA from time to time in connection with the promotion of the
PlayStation, PlayStation Portable, or PSP brands. Specifications for Product
Information for such web pages shall be as provided in the PSP SourceBook.
Publisher shall provide SCEA with such Product Information for each Licensed
PSP Product upon submission of Printed Materials to SCEA for approval in
accordance with Section 5.5.2 hereto. 
Publisher shall also provide updates to such web page in a timely
manner as required by SCEA in updates to the PSP SourceBook.

 

7.7                                 Distribution.

 

7.7.1                        Distribution Channels. Publisher
may use such distribution channels as Publisher deems appropriate, Including the use of third party distributors, resellers,
dealers and sales representatives. In the event that Publisher elects to have
one of its Licensed PSP Products distributed and sold by another Licensed PSP
Publisher, Publisher must provide SCEA with advance written notice of such
election, the name of the Licensed PSP Publisher and any additional information
requested by SCEA regarding the nature of the distribution services provided by
such Licensed PSP Publisher prior to manufacture of such Licensed PSP Product.

 

7.7.2                        Limitations on Distribution.  Notwithstanding any other provisions in this
Agreement, Publisher shall not, directly or indirectly, solicit orders from or
sell any Units of the Licensed PSP Products to any person or entity outside of
the Licensed Territory nor transship Licensed PSP Products between regional SCE
territories. In addition, Publisher shall not directly or indirectly solicit
orders for or sell any Units of the Licensed PSP Products in any situation
where Publisher knows or reasonably should know that such Licensed PSP Products
may be exported or resold outside of the Licensed Territory.

 

8.                                       Royalties.

 

8.1                                 Applicable Royalties on Licensed PSP Products.

 

8.1.1                        Initial Orders.  Publisher shall pay SCEA, either directly or
through its designee, a per title royalty in United States dollars for each
Unit of the Licensed PSP Products manufactured based on the initial Wholesale
Price of the Licensed PSP Product, as follows:

 

	
   

  	
   

  	
  Wholesale Price

  	
   

  	
  Per Title Royalty

  	
   

  
	
  Level 1

  	
   

  	
  [***] to [***]

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level 2

  	
   

  	
  [***] to [***]

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level 3

  	
   

  	
  [***]

  	
   

  	
  ([***] of WSP) - [***]

  	
   

  

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

20

 

In the absence
of satisfactory evidence to support the WSP, the royalty rate that shall apply
will be the greater of 
[***] per Unit or the Level 3 royalty applied to the highest
known WSP. Royalties may be subject to change in SCEA’s discretion upon sixty
(60) days notice to Publisher. Upon receipt of such notice, Publisher shall
have the option to terminate this Agreement upon written notice to SCEA rather
than having such revised royalty structure go into effect.

 

8.1.2                        Reorders and Other Programs.  Royalties on additional orders to manufacture
a specific Licensed PSP Product, regardless of which Publisher submits the
order, shall be the royalty determined by the initial Wholesale Price as
reported by initial Publisher for that Licensed PSP Product regardless of the
wholesale price of the Licensed PSP Product at the time of reorder, except in
the event that the Wholesale Price increases for such Licensed PSP Product, in
which case the royalty shall be adjusted upwards to reflect the higher Wholesale
Price. Licensed PSP Products qualifying for SCEA’s “Greatest Hits” programs or
other programs offered by SCEA shall be subject to the royalties applicable for
such programs. Publisher acknowledges that as of the date of execution of this
Agreement no “Greatest Hits” program exists for the PSP Third Party licensing
program.

 

8.2                                 Third Party Demo Disc Program Royalties:  Publisher shall pay SCEA a per Unit royalty
in United States dollars of [***] for each Third Party Demo Disc Unit
manufactured. The quantity of Units ordered shall comply with the terms of such
SCEA Established Third Party Demo Disc Program.

 

8.3                                 Payment For Licensed PSP
Product.  Payment of
royalties under Sections 8.1 and 8.2 shall be made to SCEA through its
Designated Manufacturing Facility concurrent with the placement of an order to
manufacture Licensed PSP Product and payment of manufacturing costs in
accordance with the terms and conditions set forth in Sections 6.2.3, unless
otherwise agreed in writing with SCEA. At the time of placing an order to
manufacture a Licensed PSP Product, Publisher shall submit to SCEA an accurate
accounting statement setting out the number of units of Licensed PSP Product to
be manufactured, projected initial wholesale price, applicable royalty, and total
amount due SCEA.  In addition, Publisher
shall submit to SCEA prior to placing the initial order for each Licensed PSP
Product a separate certification, in the form provided by SCEA in the PSP
SourceBook, signed by officers of Publisher that certifies that the Wholesale
Price provided to SCEA is accurate and attaching such documentation supporting
the WSP as requested by SCEA.  Payment
shall be made prior to manufacture unless SCEA has agreed to extend credit
terms to Publisher in writing pursuant to Section 6.2.3.1. Nothing herein
shall be construed as requiring SCEA to extend credit terms to Publisher. The
accounting statement due hereunder shall be subject to the audit and accounting
provisions set forth in paragraph 16.2 below. No costs incurred in the
development, manufacture, marketing, sale and/or distribution of the Licensed
PSP Products shall be deducted from any royalties payable to SCEA hereunder.
Similarly, there shall be no deduction from the royalties otherwise owed to
SCEA 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 Units of the Licensed PSP
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
Units of the Licensed PSP Products or arising with respect to the payment of
royalties. In addition to the royalty payments provided to SCEA, Publisher shall
be solely responsible for and bear any

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

21

 

cost relating to any withholding taxes or
Other such assessments which may be imposed by any governmental authority with
respect to the royalties paid to SCEA hereunder; provided, however, that SCEA
shall not manufacture Licensed PSP Products outside of the United States
without the prior consent of Publisher. Publisher shall provide SCEA 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 paid.

 

8.4                                 Rebates, Promotions or Discounts.
From time to time SCEA may, at its sole option, offer to Publisher programs
which result in rebates or other reduced royalties to Publisher. Eligibility to
participate in a program offered by SCEA shall be determined by the terms and
conditions set forth for participation at the time the program is offered. SCEA
reserves the right to alter, extend, or terminate program offerings upon notice
to Publishers. Nothing contained herein shall require SCEA to offer any rebate,
promotion, or discount program to Publisher during the term of this Agreement.

 

9.                                       Representations and Warranties.

 

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

 

9.2                                 Representation 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 by Publisher of all or any part of the Product Software, Product Proposals,
Product Information, Printed Materials, Advertising Materials or any underlying
work or content embodied therein, or any name, designation or trademark used in
conjunction with the Licensed PSP Products infringes or otherwise violates any
Intellectual Property Right or other right or interest of any kind whatsoever
of any third party, or otherwise contesting any right, title or interest of
Publisher in or to the Product Software, Product Proposals, Product
Information, Printed Materials, Advertising Materials or any underlying work or
content embodied therein, or any name, designation or trademark used in
conjunction with the Licensed PSP Products;

 

(ii)                                  The
Product Software, Product Proposals, Product Information, Printed Materials and
Advertising Materials and their contemplated use under this Agreement do not
and shall not infringe any person’s or entity’s rights including without
limitation, patents, copyrights (including rights in a joint work), trademarks,
trade dress, trade secret, rights of publicity, privacy, performance, moral
rights, literary rights and any other third party rights;

 

(iii)                               Publisher
has the right, power and authority to enter into this Agreement, to grant SCEA
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 or
entity, and, throughout the term of this Agreement, Publisher shall not make
any separate agreement with any person or entity that is inconsistent with any
of the provisions of this Agreement;

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

22

 

(v)                                 Publisher
has not sold, assigned, leased, licensed or in any other way disposed of or
encumbered the rights granted to Publisher hereunder, and Publisher will not
sell, assign, lease, license or in any other way, dispose of or encumber any of
such rights except as expressly permitted hereunder or as consented to by SCEA
in writing;

 

(vi)                              Publisher
has obtained the consent of all holders of intellectual property rights
required to be obtained in connection with use of any Product Information by
SCEA as licensed hereunder, and Product Information when provided to SCEA in
accordance with the terms of this Agreement may be published, marketed,
distributed and sold by SCEA in accordance with the terms and conditions of
this Agreement and without SCEA incurring any royalty, residual, union, guild
or other fees;

 

(vii)                           Publisher
shall not make any representation or give any warranty to any person or entity
expressly or implicitly on SCEA’s behalf, or to the effect that the Licensed
PSP Products are connected in any way with SCEA (other than that the Executable
Software and/or Licensed PSP Products have been developed, marketed, sold
and/or distributed under license from SCEA);

 

(viii)                        In the
event that Executable Software is delivered to other Licensed PSP Publishers or
Licensed PSP Developers by Publisher 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 the confidentiality of such
source code;

 

(ix)                                The
Executable Software and any Product Information delivered to SCEA shall be in a
commercially acceptable form, free of significant bugs, defects, time bombs or
viruses which could disrupt, delay, destroy the Executable Software or PSP
Player or render either of them less than fully useful, and shall be fully
compatible with the PSP Player and any peripherals listed on the Printed
Materials as compatible with the Licensed PSP Product;

 

(x)                                   Each
of the Licensed PSP Products, Executable Software, Printed Materials and
Advertising Materials shall be developed, marketed, sold and distributed by or
at the direction of Publisher in an ethical manner and in full compliance with
all applicable federal, state, provincial, local and foreign laws and any
regulations and standards promulgated thereunder (including but not limited to
federal and state lottery laws as currently interpreted and enforced) and will
not contain any obscene or defamatory matter;

 

(xi)                                Publisher’s
policies and practices with respect to the development, marketing, sale, and/or
distribution of the Licensed PSP Products shall in no manner reflect adversely
upon the name, reputation or goodwill of SCEA;

 

(xii)                             Publisher
has, or will contract with a Licensed PSP Developer for, the technical
expertise and resources necessary to fulfill its obligations under this
Agreement; and

 

(xiii)                          Publisher
shall make no false, misleading or inconsistent representations or claims with
respect to any Licensed PSP Products, the PSP Player or SCEA.

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

23

 

10.                                 Indemnities; Limited Liability.

 

10.1                           Indemnification by SCEA.  SCEA shall indemnify and hold Publisher
harmless from and against any and all third party claims, losses, liabilities,
damages, expenses and costs, including, without limitation, reasonable fees for
attorneys, expert witnesses and litigation costs, and including costs incurred
in the settlement or avoidance of any such claim which result from or are in
connection with a breach of any of the representations or warranties provided
by SCEA herein; provided, however, that Publisher shall give prompt written
notice to SCEA of the assertion of any such claim, and provided, further, that
SCEA shall have the right to select counsel and control the defense and
settlement thereof. SCEA 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 such matters as shall be deemed appropriate by SCEA.
Publisher shall provide SCEA, at no expense to Publisher, reasonable assistance
and cooperation concerning any such matter; and Publisher shall not agree to the
settlement of any such claim, action or proceeding without SCEA’s prior written
consent.

 

10.2                           Indemnification By
Publisher.  Publisher
shall indemnify and hold SCEA harmless from and against any and all claims,
losses, liabilities, damages, expenses and costs, including, without
limitation, reasonable fees for attorneys, expert witnesses and litigation
costs, and including costs incurred in the settlement or avoidance of any such
claim, which result from or are in connection with (i) a breach of any of
the provisions of this Agreement; or (ii) infringement of a third party’s
intellectual property rights by Publisher; or (iii) any claims of or in
connection with any personal or bodily injury (including death) or property
damage, by whomever such claim is made, arising out of, in whole or in part,
the development, marketing, sale, distribution or use of any of the Licensed
PSP Products (or portions thereof) unless due directly to the breach of SCEA in
performing any of the specific duties or providing any of the specific services
required; or (iv) any federal, state or foreign civil or criminal actions
relating to the development, marketing, sale or distribution of Licensed PSP
Products. SCEA shall give prompt written notice to Publisher of the assertion
of any such indemnified claim, and, with respect to third party claims, actions
or proceedings against SCEA, SCEA shall have the right to select counsel for
SCEA and reasonably control the defense and settlement thereof.  Subject to the above, Publisher shall have
the right, at its discretion, to select its own counsel, to commence and
prosecute at its own expense any lawsuit, to reasonably control the defense and
settlement thereof or to take such other action with respect to claims, actions
or proceedings by or against Publisher. SCEA shall retain the right to approve
any settlement. SCEA shall provide Publisher, at no expense to SCEA, reasonable
assistance and cooperation concerning any such claim, action or proceeding
(other than third party claims, actions or proceedings against SCEA) without
Publisher’s prior written consent.

 

10.3                           LIMITATION OF LIABILITY.

 

10.3.1                  LIMITATION OF SCEA’S LIABILITY.  IN NO EVENT SHALL SCEA OR
OTHER SONY AFFILIATES AND THEIR SUPPLIERS, OFFICERS, DIRECTORS, EMPLOYEES OR
AGENTS BE LIABLE FOR LOSS OF PROFITS, OR ANY SPECIAL, PUNITIVE, INCIDENTAL,
INDIRECT OR CONSEQUENTIAL DAMAGES ARISING OUT OF, RELATING TO OR IN CONNECTION
WITH THIS AGREEMENT, INCLUDING WITHOUT LIMITATION THE BREACH OF THIS AGREEMENT
BY SCEA, THE MANUFACTURE OF THE LICENSED PSP PRODUCTS AND THE USE OF THE
LICENSED PSP PRODUCTS, EXECUTABLE

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

24

 

SOFTWARE OR THE PSP PLAYER BY PUBLISHER OR
ANY END-USER, WHETHER UNDER THEORY OF CONTRACT, TORT (INCLUDING NEGLIGENCE),
INDEMNITY, PRODUCT LIABILITY OR OTHERWISE. IN NO EVENT SHALL SCEA’S LIABILITY ARISING UNDER, RELATING TO OR IN
CONNECTION WITH THIS AGREEMENT, INCLUDING WITHOUT LIMITATION ANY LIABILITY FOR
DIRECT OR INDIRECT DAMAGES, AND INCLUDING WITHOUT LIMITATION ANY LIABILITY
UNDER SECTION 10.1, EXCEED [***]. EXCEPT AS EXPRESSLY SET FORTH HEREIN,
NEITHER SCEA NOR ANY SONY AFFILIATE, NOR ANY OF THEIR RESPECTIVE DIRECTORS,
OFFICERS, EMPLOYEES OR AGENTS, 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, OPERATION OR PERFORMANCE OF ANY PORTION OF THE SCE MATERIALS, THE
PSP PLAYER OR ANY LICENSED PSP PRODUCT.

 

10.3.2                  LIMITATION OF PUBLISHER’S LIABILITY.
IN NO EVENT SHALL PUBLISHER OR ITS AFFILIATED
COMPANIES AND THEIR SUPPLIERS, OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS BE LIABLE
TO SCEA FOR ANY LOSS OF PROFITS, OR ANY SPECIAL, PUNITIVE, INCIDENTAL, INDIRECT
OR CONSEQUENTIAL DAMAGES ARISING OUT OF, RELATED TO OR IN CONNECTION WITH (i) THIS
AGREEMENT OR (Ii) THE USE OR DISTRIBUTION IN ACCORDANCE WITH THE TERMS AND
CONDITIONS OF THIS AGREEMENT OF ANY CODE PROVIDED BY SCEA, IN WHOLE OR IN PART,
WHETHER UNDER THEORY OF CONTRACT, TORT (INCLUDING NEGLIGENCE), INDEMNITY,
PRODUCT LIABILITY OR OTHERWISE, PROVIDED THAT SUCH LIMITATIONS SHALL NOT APPLY
TO DAMAGES RESULTING FROM PUBLISHER’S BREACH OF SECTIONS 4, 10.2, 11 OR 13 OF
THIS AGREEMENT, AND PROVIDED FURTHER THAT SUCH LIMITATIONS SHALL NOT APPLY TO
AMOUNTS WHICH PUBLISHER MAY BE REQUIRED TO PAY TO THIRD PARTIES UNDER
SECTIONS 10.2 OR 16.10.

 

10.4                           [***]

 

11.                                 SCEA Intellectual Property Rights.

 

11.1                           Licensed Trademarks.  The Licensed Trademarks and the goodwill
associated therewith are and shall be the exclusive property of SCEA or
Affiliates of SCEA. Nothing herein shall give Publisher any right, title or
interest in or to any of the Licensed Trademarks or any other trademarks of
SCEA. other than the non-exclusive license provided
herein. Publisher shall not do or cause to be done any act or thing in any way
impairing or tending to impair or dilute any of SCEA’s rights, title or interests
in or to any of the Licensed Trademarks or any other trademarks of SCEA, nor
shall Publisher register any trademark in its own name or in the name of any
other person or entity, or obtain rights to employ Internet domain names or
addresses, which are similar to or are likely to be confused with any of the
Licensed Trademarks or any other trademarks of SCEA.

 

11.2                           License of SCE Materials and PSP Player.
All rights with respect to the SCE Materials and PSP Player, including, without
limitation, all SCEA Intellectual Property Rights

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

25

 

therein, are and
shall be the exclusive property of SCEA or Affiliates of SCEA.  Nothing herein shall give Publisher any
right, title or interest in or to the SCE Materials or the PSP Player or any
portion thereof, other than the non-exclusive license provided herein.
Publisher shall not do or cause to be done any act or thing in any way
impairing or tending to impair any of SCEA’s rights, title or interests in or
to the SCE Materials or the PSP Player or any portion thereof.

 

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

 

In the event
that Publisher discovers or otherwise becomes aware that any SCEA Intellectual
Property Rights have been or are being infringed upon by any third party,
Publisher shall promptly notify SCEA. SCEA shall have the sole right, in its
discretion, to institute and prosecute lawsuits against third parties for such
infringement of SCEA Intellectual Property Rights. Any lawsuit shall be
prosecuted solely at the cost and expense of SCEA and all sums recovered in any
such lawsuits, whether by judgment, settlement or otherwise shall belong solely
to SCEA. Upon request of SCEA, Publisher shall execute all papers, testify on
all natters aid otherwise cooperate in every way necessary and desirable for
the prosecution of any such lawsuit. 
SCEA 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 the conduct of a cross-claim
or third party action.

 

13.                                 Confidentiality.

 

13.1                           SCEA’s Confidential Information.

 

13.1.1                  Definition of SCEA’s Confidential Information.  “SCEA’s Confidential Information” shall mean:

 

(i)                                           the PSP Player, SCE Materials and Development Tools and this
Agreement;

 

(ii)                                        other
documents and materials developed, owned, licensed or under the control of
SCEA, including all processes, data, hardware, software, inventions, trade
secrets, ideas, creations, improvements, designs, discoveries, developments,
research and know-how, including without limitation the PSP SourceBook’ and
SCEA Intellectual Property Rights relating to the PSP Player, SCE Materials or
Development Tools; and

 

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

 

SCEA’s
Confidential Information may consist of information in any medium, whether
oral, printed, in machine-readable form or otherwise, including information
apprised to Publisher and reduced to tangible or written form at any time
during the term of this Agreement. In addition, the existence of a relationship
between Publisher and SCEA for the purposes set forth herein shall be deemed to
be SCEA’s Confidential Information unless otherwise agreed to in writing by the
parties or until publicly announced by SCEA.

 

13.1.2                  Term of Protection of SCEA’s Confidential
Information. The term for the protection of SCEA’s Confidential
Information shall commence on the Effective Date first

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

26

 

above written and shall continue in full force and effect as long as
any of SCEA’s Confidential Information continues to be maintained as
confidential and proprietary by SCEA or SCE. During such term, Publisher shall,
pursuant to Section 13.1.3 below, safeguard and hold in trust and
confidence and not disclose or use any and all of SCEA’s Confidential
Information except for the purposes specified.

 

13.1.3                  Preservation of SCEA’s Confidential Information.
Publisher shall, with respect to SCEA’s Confidential Information:

 

(i)                                     not
disclose SCEA’s Confidential Information to any person or entity, other than
those employees or directors of the Publisher whose duties justify a “need-to
know” and who have executed a confidentiality agreement in which such employees
or directors have agreed not to disclose, and to hold confidential, 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 SCEA’s request, Publisher shall provide SCEA with a
copy of such confidentiality agreement between Publisher and its employees or
directors, and shall also provide SCEA with a list of employee and director
signatories. Publisher shall not disclose any of SCEA’s Confidential
Information to third parties, including without limitation to consultants or
agents. Any employees or directors who obtain access to SCEA’s Confidential
Information shall be advised by Publisher of the confidential nature of SCEA’s
Confidential Information, and Publisher shall be responsible for any breach of
this Agreement by its employees or directors.

 

(ii)                                  take all measures necessary to safeguard SCEA’s 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
SCEA’s Confidential Information be maintained in a restricted access area and
plainly marked to indicate the secret and confidential nature thereof.

 

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

 

(v)                                 not
use, modify, reproduce, sublicense, copy, distribute, create derivative works
from, or otherwise provide to third parties, SCEA’s Confidential Information,
or any portion thereof, except as provided herein, nor shall Publisher remove
any proprietary legend set forth on or contained within any of SCEA’s
Confidential Information.

 

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

 

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

 

(ii)                                  is or legitimately becomes part of the public domain through
no fault of Publisher or its employees; or

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

27

 

(iii)                               is independently developed by Publisher’s employees who have
not had access to SCEA’s Confidential Information, as proven by written
documentation of Publisher; or

 

(iv)                              is
required to be disclosed by administrative or judicial action; provided that
Publisher must attempt to maintain the confidentiality of SCEA’s Confidential
Information by asserting in such action the restrictions set forth in this
Agreement, and, immediately after receiving notice of such action or any notice
of any threatened action, Publisher must notify SCEA to give SCEA the maximum
opportunity to seek any other legal remedies to maintain such SCEA’s Confidential
Information in confidence as herein provided; or

 

(v) is approved for release by written
authorization of SCEA.

 

13.1.5                  No Obligation to License.  Disclosure of SCEA’s Confidential Information
to Publisher shall not constitute any option, grant or license from SCEA to
Publisher under any patent or other SCEA Intellectual Property Rights now or
hereinafter held by SCEA. The disclosure by SCEA to Publisher of SCEA’s
Confidential Information shall not result in any obligation on the part of SCEA
to approve any materials of Publisher, nor shall such disclosure by SCEA give
Publisher any right to develop, directly or indirectly, manufacture or sell any
product derived from or which uses any of SCEA’s Confidential Information,
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 SCEA Confidential Information, it
shall notify SCEA 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 SCEA to protect SCEA’s proprietary rights in any SCEA 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 but not limited to enforcement of
confidentiality agreements, commencement and prosecution in good faith (alone
or with the disclosing party) of legal action, and reimbursement for all
reasonable attorneys’ fees, costs and expenses incurred by SCEA to protect its
proprietary rights in SCEA’s Confidential Information. Publisher shall take all
steps requested by SCEA to prevent the recurrence of any unauthorized
duplication, access, use, possession or knowledge of SCEA’s Confidential
Information. In addition, SCEA shall have the right to pursue any actions at
law or in equity, including without limitation the remedies set forth in Section 16.10
hereto.

 

13.2                           Publisher’s Confidential Information.

 

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

 

(i)                                     any Product Software as provided to SCEA pursuant to this
Agreement and all documentation and information relating thereto, including
Product Proposals,

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

28

 

Printed Materials and Advertising Materials (other than documentation
and information intended for use by and release to end users, the general
public or the trade);

 

(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, including information apprised to SCEA and reduced to tangible or written form at any
time during the term of this Agreement.

 

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 first above
written and shall continue in full force and effect 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. SCEA shall, with respect to Publisher’s Confidential
Information;

 

(i)                                     hold
all Publisher’s Confidential Information in confidence, and shall take all
reasonable steps to preserve the confidentiality of Publisher’s Confidential
Information, and to prevent it from tailing 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 an SCEA employee or subcontractor who needs to know or have
access to such 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 secret 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 SCEA remove any proprietary
legend set forth on or contained within any of Publisher’s Confidential
Information

 

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

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

29

 

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

 

(ii)                                  is or legitimately becomes part of information in the public
domain through no fault of SCEA, its employees or its subcontractors; or

 

(iii)                               is
independently developed by SCEA’s employees or affiliates who have not had
access to Publisher’s Confidential Information, as proven by written
documentation of SCEA; or

 

(iv)                              is
required to be disclosed by administrative or judicial action; provided that
SCEA attempted to maintain the confidentiality of Publisher’s Confidential
Information by asserting in such action the restrictions set forth in this
Agreement, and immediately after receiving notice of such action, notified
Publisher of such action to give Publisher the opportunity to seek any other
legal remedies to maintain such Publisher’s Confidential Information in
confidence as herein provided; or

 

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

 

13.2.5                  SCEA’s Obligations Upon
Unauthorized Disclosure. If at any time SCEA becomes aware of
any unauthorized duplication, access, use, possession or knowledge of any of
Publisher’s Confidential Information, it shall notify Publisher as soon as is
reasonably practicable. SC;EA shall provide any and all reasonable assistance
to Publisher to protect Publisher’s proprietary rights in any of Publisher’s
Confidential Information that may have directly or indirectly disclosed by an
SCEA employee and that may be duplicated, accessed, used, possessed or known in
a manner or for a purpose not expressly authorized by this Agreement, SCEA
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. The
terms and conditions of this Agreement shall be treated as SCEA’s Confidential
Information and Publisher’s Confidential Information; provided that each party
may disclose the terms and conditions of this Agreement:

 

(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 counsel, to file -publicly or
otherwise disclose the terms of this Agreement under applicable federal or
state securities or other laws, the disclosing party shall be required to
promptly notify the other party such that the other party has a reasonable
opportunity to contest or limit the scope of such required disclosure, and the
disclosing party shall request, and shall use its best efforts to obtain,
confidential treatment for such sections of this Agreement as the other party
may designate.

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

30

 

14.                                 Term and
Termination.

 

14.1                           Effective Date; Term. This
Agreement shall not be binding on the parties until it has been signed by each
party, in which event it shall be effective from the Effective Date until March 31,
2007, unless earlier terminated pursuant to Section 14.2. The term shall
be automatically extended for additional one-year terms thereafter, unless
either party provides the other with written notice of its election not to so
extend on or before January 31 of the applicable year. Notwithstanding the
foregoing the term for the protection of SCEA’s 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 SCEA. SCEA shall
have the right to terminate this Agreement immediately, by providing written
notice of such election to Publisher, upon the occurrence of any of the
following:

 

(i)                                     If
Publisher breaches (A) any of its obligations; or (B) any other
agreement entered into between SCEA or Affiliates of SCEA and Publisher.

 

(ii)                                  The
liquidation or dissolution of Publisher or a statement of intent by Publisher
to no longer exercise any of the rights granted by SCEA to Publisher.

 

(iii)                               If
during the term of this Agreement, 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 SCEA or
an Affiliate of SCEA; (13) directly or indirectly holds or acquires a
controlling interest in a third party which develops any interactive device or
product which is directly or indirectly competitive with the PSP Player; or (C) is
in litigation with SCEA or Affiliates of SCEA concerning any proprietary
technology, trade secrets or other SCEA Intellectual Property Rights or SCEA’s
Confidential Information. As used in this Section 14.2, “controlling
interest” means, with respect to any form of entity, sufficient power to
control the decisions of such entity.

 

(iv)                              If
during the term of this Agreement, Publisher or an entity that directly or
indirectly has a controlling interest in Publisher enters into a business
relationship with a third party with whom Publisher materially contributes to develop
core components to an interactive device or product which is directly or
indirectly competitive with the PSP Player.

 

(v)                                 Publisher
files or causes to file litigation against SCEA or any SCE Affiliate.

 

Publisher
shall immediately notify SCEA in writing in the event that any of the events or
circumstances specified in this Section occur.

 

14.3                           Product-by-Product Termination by SCEA. In
addition to the events of termination described in Section 14.2, above,
SCEA, at its option, shall be entitled to terminate, on a product-by-product
basis, the licenses and related rights herein granted to Publisher in the event
that (a) Publisher fails to notify SCEA promptly in writing of any
material change to any materials previously approved by SCEA in accordance with
Section 5 or Section 6.1 hereto, and such breach is not corrected or
cured within thirty (30) days after receipt of written notice of

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

31

 

such breach; (b) Publisher uses a third party that fails to comply
with the requirements of Section 3 in connection with the development of
any Licensed PSP Product; (c) any third party with whom Publisher has
contracted for the development of Executable Software breaches any of its
material obligations to SCEA pursuant to such third party’s agreement with SCEA
with respect to such Licensed PSP Product; or (d) Publisher cancels a
Licensed PSP Product or fails to provide SCEA in accordance with the provisions
of Section 5 above, with the final version of the Executable Software for
any Licensed PSP Product within three (3) months of the scheduled release
date according to the Product Proposal (unless a modified final delivery date
has been agreed to by the parties), or fails to provide work in progress to
SCEA in strict accordance with the Review Process in Section 5.3.

 

14.4                           Options of SCEA in Lieu of Termination.
As alternatives to terminating this Agreement or a particular Licensed PSP
Product as set forth in Sections 14.2 and 14.3 above, SCEA may, at its option
and upon written notice to Publisher, take the following actions. In the event
that SCEA elects either of these options, Publisher may terminate this
Agreement upon written notice to SCEA rather than allowing SCEA to exercise
these options. Election of these options by SCEA shall not constitute a waiver
of or compromise with respect to any of SCEA’s rights under this Agreement and
SCEA may elect to terminate this Agreement with respect to any breach.

 

14.4.1                  Suspension of Agreement. SCEA may
suspend this Agreement, entirely or with respect to a particular Licensed PSP
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.

 

14.4.2                  Liquidated Damages. Whereas a minor
breach of any of the events set out below may not warrant termination of this
Agreement, but will cause SCEA damages in amounts difficult to quantify, SCEA
may require Publisher to pay liquidated damages of [***]:

 

(i)                                     Failure
to submit Advertising Materials to SCEA for approval (including any required
resubmissions);

 

(ii)                                  Broadcasting
or publishing Advertising Materials without receiving the final approval or
consent of SCEA;

 

(iii)                               Failure
to make SCEA’s requested revisions to Advertising Materials; or

 

(iv)                              Failure to comply
with the PSP SourceBook, Manufacturing Specifications or Guidelines which
relates in any way to use of Licensed Trademarks.

 

(v)                                 any
transshipment or attempted transshipment of Licensed Products into unlicensed
territories, whether willfully or negligently, without the expressed written
permission of the regional SCE Affiliate, in an amount that SCEA deems in sole
discretion not to be a material breach of this Agreement.

 

Liquidated
damages shall be invoiced separately or on Publisher’s next invoice for
Licensed PSP Products. SCEA reserves the right to terminate this Agreement for
breach in lieu of seeking liquidated damages or in the event that liquidated
damages are unpaid.

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

32

 

14.5                           No Refunds. In the event of the
termination of this Agreement in accordance with any of the provisions of Sections 14.2
through 14.4 above, no portion of any payments of any kind whatsoever
previously provided to SCEA hereunder shall be owed or be repayable to
Publisher.

 

15.                                 Effect of Expiration or Termination.

 

15.1                           Inventory Statement. Within thirty
(30) days of the date of expiration or the effective date of termination with
respect to any or all Licensed PSP Products or this Agreement, Publisher shall
provide SCEA with an itemized statement, certified to be accurate by an officer
of Publisher, specifying the number of unsold Units of the Licensed PSP
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. SCEA 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 below, the licenses
and related rights herein granted to Publisher shall immediately revert to
SCEA, and Publisher shall cease from any further use of SCEA’s Confidential
Information. Licensed Trademarks and SCE Materials and any SCEA Intellectual
Property Rights therein, and, subject to the provisions of Section 15.3
below, Publisher shall have no further right to continue the development,
publication, manufacture, marketing, sale or distribution of any Units of the
Licensed PSP Products, or to continue to use any Licensed Trademarks; provided,
however, that for a period of one year after termination, and subject to all
the terms of Section 13, and provided this Agreement is not terminated due
to a breach or default of Publisher, Publisher may retain such portions of SCE
Materials and SCEA’s Confidential Information as SCEA in its sole discretion
agrees are required to support end users of Licensed PSP Products but must
return these materials at the end of such one year period. Upon expiration or
termination, the licenses and related rights herein granted to SCEA by
Publisher shall immediately revert to Publisher, and SCEA shall cease from any
further use of Product Information and any Publisher Intellectual Property
Rights therein; provided that SCEA may continue the manufacture, marketing,
sale or distribution of any SCEA Demo Discs containing Publisher’s Product
Information which Publisher had approved prior to termination.

 

15.3                           Disposal of Unsold Units. Provided
that this Agreement is not terminated due to a breach or default of Publisher,
Publisher may, upon expiration or termination of this Agreement, sell off
existing inventories of Licensed PSP Products, on a non-exclusive basis, for a
period of [***] from the date of expiration or 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 [***], or in the
event this Agreement is terminated as a result of any breach or default of
Publisher, any and all Units of the Licensed PSP Products remaining in
Publisher’s inventory shall be destroyed by Publisher within [***] of such
expiration or termination. Within [***] after such destruction, Publisher shall
provide SCEA with an itemized statement, certified to be accurate by an officer
of Publisher, indicating the number of Units of the Licensed PSP Products which
have been destroyed (on a title-by-title

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

33

 

basis), the
location and date of such destruction and the disposition of the remains of
such destroyed materials.

 

15.4                           Return of SCE Materials and Confidential
Information.  Upon the expiration or earlier termination of this Agreement.  Publisher shall immediately deliver to SCEA,
or if and to the extent requested by SCEA destroy, all SCE Materials and any
and all copies thereof, and Publisher and SCEA shall, upon the request of the
other party, immediately deliver to the other party, or if and 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 SCEA, as appropriate, shall
provide the other party with an affidavit of destruction and an itemized
statement, each certified to be accurate by an officer of Publisher indicating
the number of copies and units of the SCE Materials and 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 the SCE Materials or Confidential
Information and SCEA must resort to legal means including without limitation
any use of attorneys to recover the SCE Materials or Confidential Information or
the value thereof, all costs, including SCEA’s reasonable attorney’s fees,
shall be borne by Publisher, and SCEA may, in addition to SCEA’s other
remedies, withhold such amounts from any payment otherwise due from SCEA to
Publisher under any agreement between SCEA and Publisher.

 

15.5                           Extension of this Agreement; Termination
Without-Prejudice.  SCEA
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, without limitation, 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 any such expiration or 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, telegram or facsimile,
with charges prepaid. The address for all notices or other communications
required to be sent to SCEA 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 or tendered delivery, as confirmed by the sending party.

 

16.2                           Audit Provisions. Publisher shall
keep full, complete, and accurate books of account and records covering all
transactions relating to this Agreement. Publisher shall preserve such books of
account, records, documents and material for a period of [***] after the
expiration or earlier termination of this Agreement. Acceptance by SCEA of an
accounting statement, purchase order, or payment hereunder will not preclude
SCEA from challenging or questioning

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

34

 

the accuracy
thereof at a later time. In the event that SCEA reasonably believes that the
Wholesale Price provided by Publisher with respect to any Licensed PSP Product
is not accurate, SCEA shall be entitled to request additional documentation
from Publisher to support the listed Wholesale Price for such Licensed PSP
Product. In addition, during the Term and for a period of [***] thereafter and
upon the giving of reasonable written notice to Publisher, representatives of
SCEA shall have access to, and the right to make copies and summaries of, such
portions of all of Publisher’s books and records as pertain to the Licensed PSP
Products and any payments due or credits received hereunder.  In the event that such inspection reveals an
under-reporting of any payment due to SCEA, Publisher shall immediately pay
SCEA such amount. In the event that any audit conducted by SCEA reveals that
Publisher has under-reported any payment due to SCEA hereunder by [***] or more
for that audit period, then in addition to the payment of the appropriate amount
due to SCEA, Publisher shall reimburse SCEA for all reasonable audit costs for
that audit and any and all collection costs to recover the unpaid amount.

 

16.3                           Force Majeure. Neither SCEA 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, without limitation, 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 failure of computer or communications equipment or otherwise;
provided, however, that the party 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 such sums owed
to SCEA prior to, during or after any such Force Majeure condition. In the
event that the Force Majeure condition continues for more than sixty (60) days,
SCEA 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 SCEA and Publisher, respectively, is that of licensor
and licensee.  Both parties are
independent contractors and are not 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. SCEA has entered into
this Agreement based upon the particular reputation, capabilities and
experience of Publisher and its officers, directors and employees. Accordingly,
Publisher may not assign 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 SCEA shall first be obtained. This
Agreement shall not be assigned in contravention of Section 14.2 (iii).
Any attempted or purported assignment, delegation or other such transfer,
directly or indirectly, without the required consent of SCEA shall be void.
Subject to the foregoing, this Agreement shall inure to the benefit of the
parties and their respective successors and permitted assigns (other than under
the conditions set forth in Section 14.2 (iii).

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

35

 

SCEA shall have the right to assign any and all of its rights and
obligations hereunder to any Sony affiliate(s).

 

16.6                           Subcontractors. Publisher shall not
sell, assign, delegate, subcontract, sublicense or otherwise transfer or
encumber all or any portion of the licenses herein granted without the prior
written approval of SCEA, provided, however, that Publisher may retain those
subcontractors who provide services which do not require access to SCE
Materials or SCEA’s Confidential Information without such prior approval.
Publisher may retain those subcontractor(s) to assist with the development,
publication and marketing of Licensed PSP Products (or portions thereof) which
have signed (i) an PSP LPA or PSP LDA with SCEA (the “PSP Agreement”) in
full force and effect throughout the term of such development and marketing; or
(ii) an SCEA-approved subcontractor agreement (“Subcontractor Agreement”);
and SCEA has approved such subcontractor in writing, which approval shall be in
SCEA’s sole discretion.  Such
Subcontractor Agreement shall provide that SCEA is a third-party beneficiary of
such Subcontractor Agreement and has the full right to bring any actions
against such subcontractors to comply in all respects with the terms and
conditions of this Agreement. Publisher shall provide a copy of any such
Subcontractor Agreement to SCEA prior to and following execution thereof.
Publisher shall not disclose to any subcontractor any of SCEA’s Confidential information, including, without limitation, any
SCE Materials, unless and until either a PSP Agreement or a Subcontractor
Agreement has been executed and approved by SCEA. Notwithstanding any consent
which may be granted by SCEA 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 its best efforts to cause its subcontractors retained
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. SCEA may subcontract any of its rights or
obligations hereunder.

 

16.7                           Compliance with Applicable Laws.
The parties shall at all times comply with all applicable regulations and
orders of their respective countries and other controlling jurisdictions 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. 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, without limitation, the recording of this Agreement with any
appropriate governmental authorities (if required).

 

16.8                           Governing Law; Consent to Jurisdiction.
This Agreement shall be governed by and interpreted in accordance with the laws
of the State of California, excluding that body of law related to choice of
laws, and of the United States of America. Any action or proceeding brought to
enforce the terms of this Agreement or to adjudicate any dispute arising
hereunder shall be brought in the Superior Court of the County of San Mateo,
State of California or the United States District Court for the Northern
District of California. Each of the parties hereby submits itself to the
exclusive jurisdiction and venue of such courts for purposes of any such action
and agrees that any service of process may be effected by delivery of the
summons in the manner

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

36

 

provided in the
delivery of notices set forth in Section 16.1 above. In addition, each
party hereby waives the right to a jury trial in any action or proceeding
related to this Agreement.

 

16.9                           Legal Costs and Expenses. In the
event it is necessary for either party to retain the services of an attorney or
attorneys to enforce the terms of 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 attorneys 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.

 

16.10                     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, and all such
remedies shall be deemed to be cumulative. Any breach of Sections 3, 4, 5, 6.1,
l l and 13 of this Agreement would cause significant and irreparable harm to
SCEA, the extent of which would be difficult to ascertain. Accordingly, in
addition to any other remedies including without limitation equitable relief to
which SCEA may be entitled, in the event of a breach by Publisher or any of its
employees or permitted subcontractors of any such Sections of this Agreement,
SCEA shall be entitled to the immediate issuance without bond of ex parte
injunctive relief or, if a bond is required under applicable law, on the
posting of a bond in an amount not to exceed [***], 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, SCEA 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 he in addition to and not in limitation of any
injunctive relief or other remedies to which SCEA may be entitled under this
Agreement or otherwise at law or in equity. In addition, Publisher shall
indemnify SCEA for all losses, damages, liabilities, costs and expenses
(including reasonable attorneys’ fees and all reasonable related costs) which
SCEA may sustain or incur as a result of any breach under this Agreement.

 

16.11                     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 thereof) 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.

 

16.12                     Sections Surviving Expiration or Termination.
The following sections shall survive the expiration or earlier termination of
this Agreement for any reason: 4, 5.8, 6.2, 6.4, 8, 9, 10, 11, 13, 14.5, 15,
and 16.

 

16.13                     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

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

37

 

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.

 

16.14                     Modification and Amendment.  No modification or amendment of any provision
of this Agreement shall be effective unless in writing and signed by both of
the parties.  Notwithstanding the
foregoing, SCEA reserves the right to modify the PSP SourceBook from time to
time upon reasonable notice to Publisher.

 

16.15                     Headings.  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.

 

16.16                     Integration.  This Agreement, together with the PSP
SourceBook, constitutes the entire agreement between SCEA and Publisher and
supersedes all prior or contemporaneous agreements, proposals, understandings
and communications between SCEA and Publisher, whether oral or written, with
respect to the subject matter hereof, including any PSP Confidentiality and
Nondisclosure Agreement and Materials Loan Agreement between SCEA and
Publisher.

 

16.17                     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.

 

16.18                     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.

 

IN WITNESS
WHEREOF, the parties have caused this Agreement to be duly executed as of the
day and year first written above.

 

 

	
  SONY COMPUTER ENTERTAINMENT

  AMERICA INC.

  	
  ACTIVISION INC.

  
	
   

  	
   

  
	
  By:

  	
      /s/ Andrew House

  	
   

  	
  By:

  	
      /s/ George L. Rose

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name: Andrew House

  	
  Print Name: George L. Rose

  
	
   

  	
   

  
	
  Title: EVP SCEA

  	
  Title: Sr. Vice President & General Counsel

  
	
   

  	
   

  
	
  Date: 

  	
      10/18/2004

  	
   

  	
  Date: 

  	
      10/13/2004

  	
   

  
										

 

NOT AN AGREEMENT UNTIL EXECUTED BY BOTH
PARTIES

 

[***]  The portions of this document marked with
three asterisks represent confidential portions omitted and filed separately
with the Securities and Exchange Commission.

 

38Exhibit 10.47

 

Contract Number:  106389

 

AMENDMENT TO
THE

XBOX PUBLISHER LICENSING AGREEMENT

(Term, Tier 1.5, Limited Tier Migration, Super Hits
Program,

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

 

This Amendment to the Xbox Publisher License
Agreement (this “Amendment”) is entered into and effective as of March 1, 2005 (the “Amendment
Effective Date”) by and between Microsoft Licensing, GP, a Nevada general
partnership (“Microsoft”), and ACTIVISION PUBLISHING, INC. (“Licensee”
or “Publisher”), and
supplements that certain XboxTM Publisher
License Agreement between the parties dated as of July 18 2001, as amended
(the “PLA”).

 

RECITALS

 

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

 

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

 

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

 

1                                         Definitions;
Interpretation

 

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

 

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

 

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

 

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

 

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

 

1.6                                 The
terms of the PLA are incorporated by reference, and except and to the extent
expressly modified by this Amendment or any previous amendments, the PLA shall
remain in

 

MICROSOFT CONFIDENTIAL

 

[***]  The portions of this
document marked with three asterisks represent confidential portions omitted
and filed separately with the Securities and Exchange Commission.

 

1

 

full
force and effect and is hereby ratified and confirmed. In the event of any
conflict between this Amendment and the PLA or any prior amendments thereto, the terms of this Amendment
shall control. In the event of any conflict between this Amendment and the Xbox
Guide, the terms of this Amendment shall control. The parties specifically
acknowledge that except as expressly set forth herein, this Amendment
supersedes any prior amendments to the PLA related to manufactured FPU royalty rates and/or payments.

 

2                                         Term

 

The term of
the PLA is hereby extended until November 15, 2007 (the “Current Term”).
Unless one party gives the other notice within sixty (60) days prior to the end
of the Current Term, this Agreement shall automatically renew for a single
renewal term of one (1) year. The period of time since the Effective Date
of the PLA through the Current Term and any extensions or renewals thereto
shall constitute the “Term” as referred to in the PLA and this Amendment.

 

3                                         New
Royalty Tier 1.5

 

3.1                                 The
royalty rate tables and provisions in Sections 7.1.4 and 7.1.5 (or Sections
6.1.4 and 6.1.5) of the PLA describing how royalty rates are calculated are
hereby replaced by the provisions of this Amendment. Notwithstanding the
foregoing, the new Tier 1.5 described below will only be available to Publisher after October 1, 2005,

 

3.2                                 Royalty
Fee

 

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

 

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

 

MICROSOFT CONFIDENTIAL

 

[***]  The portions of this
document marked with three asterisks represent confidential portions omitted
and filed separately with the Securities and Exchange Commission.

 

2

 

Table 1:
Threshold Price per Sales Territory

 

	
   

  	
   

  	
  North
  America WSP

  	
   

  	
  European
  WSP

  	
   

  	
  Japan SRP

  	
   

  	
  Asia WSP
  (US$)*

  	
   

  
	
  Tier 1

  	
   

  	
  [***] and over

  	
   

  	
  [***] and over

  	
   

  	
  [***] and over

  	
   

  	
  [***] and over

  	
   

  
	
  Tier 1.5

  	
   

  	
  [***] - [***]

  	
   

  	
  [***] - [***]

  	
   

  	
  [***] - [***]

  	
   

  	
  [***] - [***]

  	
   

  
	
  Tier 2

  	
   

  	
  [***] - [***]

  	
   

  	
  [***] - [***]

  	
   

  	
  [***] - [***]

  	
   

  	
  [***] - [***]

  	
   

  
	
  Tier 3

  	
   

  	
  [***] or less

  	
   

  	
  [***] or less

  	
   

  	
  [***] or less

  	
   

  	
  [***] or less

  	
   

  

 

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

 

Table 2:
Royalty Rates

 

	
   

  	
   

  	
  Worldwide
  Billing

  	
   

  	
  Royalty
  Rate per Manufacturing Region for Regional

  Billing Option

  	
   

  
	
   

  	
   

  	
  Option

  	
   

  	
  North
  American

  	
   

  	
  European

  	
   

  	
  Asian

  	
   

  
	
  Tier 1

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Tier 1.5

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Tier 2

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Tier 3

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Hit FPU

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Super Hit
  FPU

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

3.3                                 Setting
the Base Royalty. Publisher shall submit to Microsoft, at least [***] before
placing the first manufacturing order for a Software Title, a completed and
signed “Royalty Tier Selection Form” in the form attached hereto as Exhibit I
for each Sales Territory. The selection indicated in the form will only be
effective once the form has been accepted by Microsoft. If Publisher does not
submit a Royalty Tier Selection Form as required hereunder, the Base
Royalty for such Software Title will default to Tier 1, regardless of the
actual Threshold Price.  Except for as
provided for under Section 4 of
this Amendment, the selection of a Base Royalty for a Software Title in a Sales
Territory is binding for the life of that Software Title even if the Threshold
Price is reduced following the Software Title’s Commercial Release. Microsoft
may change the fees and royalty rates set forth herein upon written notice to
Publisher in the first quarter each calendar year, which new fees and royalty
rates will become effective the following July 1.

 

3.4                                 Unit
Discounts. Publisher is eligible for a discount to the Base Royalty
applicable to FPUs manufactured for a particular Sales Territory (a “Unit
Discount”) based on the number of Standard FPUs that have been manufactured for
sale in that Sales Territory as described in Table 3 below. Note that units
manufactured for sale in a Sales
Territory are aggregated only towards a discount on FPUs manufactured for that
Sales Territory; there is no worldwide or cross-territorial aggregation of
units. The discount will be rounded up to the nearest Cent, Yen or hundredth of
a Euro. Microsoft may revise the
discount schedule upon written notice to Publisher in the first quarter
each calendar year, which revised discount schedule will become effective
the following July 1.

 

MICROSOFT CONFIDENTIAL

 

[***]  The portions of this
document marked with three asterisks represent confidential portions omitted
and filed separately with the Securities and Exchange Commission.

 

3

 

Table 3:
Unit Discounts

 

	
  Unit

  Discount

  	
   

  	
  North
  America Sales

  Territory

  	
   

  	
  European
  Sales

  Territory

  	
   

  	
  Japan
  Sales

  Territory

  	
   

  	
  Asia Sales

  Territory

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

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

 

i.                                          For
North American Sales Territory:

a.                                       [***]
for units [***] through [***] ([***]discount)
b.                                      [***] (i.e., [***] x [***]) for units [***] through [***] ([***] discount)

 

ii.                                       For
European Sales Territory:
a. [***]for units [***] through [***] ([***] discount)

 

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

 

i.                                          For North
American Sales Territory:

a.                                       [***]for
units [***] thru [***] ([***] discount)

b.                                      [***]for
units [***]through [***] ([***] discount)

c.                                       [***]
(i.e., [***]x [***]) for units [***]through [***] ([***] discount)

 

ii.                                       For Japan Sales
Territory:

a.                                       [***]for
units [***] through [***] ([***] discount)

 

MICROSOFT CONFIDENTIAL

 

[***]  The portions of this
document marked with three asterisks represent confidential portions omitted
and filed separately with the Securities and Exchange Commission.

 

4

 

4                                         Limited
Royalty Tier Migration

 

4.1                                 Under
the conditions described in this Section 4, Publisher may change the
previously elected Base Royalty rate for a Software Title in a specific Sales
Territory one time. In order for the
new Base Royalty to be applied to Publisher’s FPUs, Publisher shall submit to
Microsoft, at least [***] before placing a manufacturing order for the Software
Title to which Publisher desires the new Base Royalty to apply, a completed and
signed “Royalty Tier Change Form” in the form attached hereto as Exhibit 2
for each Sales Territory.

 

4.2                                 The
Royalty Tier Change Form must be received and acknowledged by Microsoft no
sooner than [***] and no later than [***] after the date that the Software
Title was Commercially Released in the applicable Sales Territory, which
Commercial Release date must occur on or after September 1, 2005. No
change to a Base Royalty will be effective before March 1, 2006.

 

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

 

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

 

4.5                                 Publisher
may only change from Tier 1 to Tier 1.5, Tier 1.5 to Tier 2 or Tier l to Tier
2.

 

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

 

5                                         Hits
Programs

 

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

 

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

 

MICROSOFT CONFIDENTIAL

 

[***]  The portions of this
document marked with three asterisks represent confidential portions omitted
and filed separately with the Securities and Exchange Commission.

 

5

 

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

 

5.1.3                        In any
calendar year in a Sales
Territory, Publisher may not publish more than four (4) Software Titles as
part of the Platinum or Classic Hits Family Program.

 

5.1.4                        To qualify
as a “Super-Hit,” a Software Title must have been a Hits FPU tor at least [***].
The manufacturing requirements are different depending on whether a potential
Super Hit started out as a Platinum or Classic Hit or Platinum or Classic
Family Hit. No Software Title may be released as a Super Hit prior to March 1,
2006.

 

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

 

Table 4:
Hits Manufacturing Requirements

 

	
   

  	
   

  	
  NA

  	
   

  	
  EU

  	
   

  	
  Japan

  	
   

  	
  Asia

  	
   

  
	
  Platinum or Classic Hits

  • Must be Standard FPUs

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]
  or Platinum in

  NA or Japan

  	
   

  
	
  Super Hits from Platinum or Classic Hits

  • Must be Standard, Platinum or Classics Hit FPUs

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  NA

  	
   

  	
  [***]

  	
   

  
	
  Platinum or Classic Family Hits

  • Must be Standard FPUs

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  NA

  	
   

  	
  [***]

  	
   

  
	
  Super Hits from Platinum or Classic Family Hits

  • Must be Standard, Platinum or Classic Family Hit FPUs

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  NA

  	
   

  	
  [***]

  	
   

  

 

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

 

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

 

5.3                                 The
Hit FPU version must be the same or substantially equivalent to the Standard
FPU version of the Software Title. Publisher may modify or add additional
content or features to

 

MICROSOFT CONFIDENTIAL

 

[***]  The portions of this
document marked with three asterisks represent confidential portions omitted
and filed separately with the Securities and Exchange Commission.

 

6

 

the
Hit FPU version of the Software Title (e.g., demos or game play changes)
subject to Microsoft’s review and approval, which approval shall not be
unreasonably withheld, and Publisher acknowledges that any such modifications
or additions may require the Software Title to be re-Certified at Publisher’s
expense.

 

6                                         Minimum
Order Quantities

 

6.1                                 Within
[***] after the date on which both Microsoft and Publisher have authorized the
Authorized Replicator to begin replication of FPUs for distribution to a specified Sales Territory, (receipt
of both approvals is referred to as “Release
to Manufacture”), Publisher must place orders to manufacture the minimum order
quantities (“MOQs”) as described in
the Xbox Guide, which MOQ’s may
be updated and revised in the first calendar quarter each year and will
be effective starting the following July 1. Currently, the MOQs are as
follows:

 

	
   

  	
   

  	
  Per Software Title

  	
   

  	
  Per Disc

  	
   

  
	
  North American Sales Territory

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  European Territory

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Japan Sales Territory

  	
   

  	
  [***]

  	
   

  	
  NA

  	
   

  
	
  Asian Sales Territory

  	
   

  	
  [***]

  	
   

  	
  NA

  	
   

  

 

6.2                                 For
the purposes of this Section, a “Disc” shall mean an FPU that is signed for use
on a certain defined range of Xbox hardware, regardless of the number of
languages or product SKUs contained thereon. The MOQs per Software Title are
cumulative per Sales Territory.  For
Example, if an FPU is released in both the North American Sales Territory and the European Sales Territory,
the cumulative MOQ per Software Title would be [***]. The MOQ per Software
Title and the MOQ per Disc, however, are not cumulative. For example, a single
Disc FPU released only in the North America Sales Territory will have a total minimum order quantity of [***], which
would cover the [***] MOQ per Software Title and the [***] MOQ per Disc (rather
than [***] which would have been the total minimum order quantity if the MOQ per software Title and the MOQ per Disc were cumulative).

 

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

 

7                                         Samples

 

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

 

MICROSOFT CONFIDENTIAL

 

[***]  The portions of this
document marked with three asterisks represent confidential portions omitted
and filed separately with the Securities and Exchange Commission.

 

7

 

8                                         Demo
Versions

 

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

 

9                                         Billing
Addresses

 

Publisher may
have up to
three “bill to” addresses for the payment of royalties, one for the North
American Manufacturing Region, one for
the European Manufacturing Region and one for the Asian Manufacturing Region.
If Publisher elects to have a billing address within a European union member country after April 1, 2005, Publisher
must submit a completed and signed enrollment form with Microsoft Ireland
Operations Ltd. (“MIOL”) attached hereto as Exhibit 4 prior to April 1,
2005. If Publisher does not sign the MIOL enrollment form by April I, 2005, then all billing to any
previously established European address will default to Publisher’s “sold-to”
address on file with Microsoft. If the Publisher has not
signed the MIOL Enrollment form by April 1, 2005 and has no address on
file with Microsoft that is not within a European union
member country, all manufacturing under the PLA will cease until a properly
executed MIOL enrollment form is received.

 

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

 

	
  MICROSOFT LICENSING, GP

  	
   

  	
  ACTIVISION PUBLISHING, INC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By (sign) /s/ Roxanne V. Spring

  	
   

  	
  By (sign) /s/ Greg Deutsch

  
	
   

  	
   

  	
   

  
	
  Name (Print)  Roxanne V. Spring

  	
   

  	
  Name (Print)  Greg Deutsch

  
	
   

  	
   

  	
   

  
	
  Title  SPM

  	
   

  	
  Title Director, Business & Legal
  Affairs

  
	
   

  	
   

  	
   

  
	
  Date (Print mm/dd/yy) 2/25/2005

  	
   

  	
  Date (Print mm/dd/yy) 2/17/2004

  

 

MICROSOFT CONFIDENTIAL

 

[***]  The portions of this
document marked with three asterisks represent confidential portions omitted
and filed separately with the Securities and Exchange Commission.

 

8

 

Contract Number:  106389

 

EXHIBIT 1

 

ROYALTY TIER
SELECTION FORM

 

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

 

NOTES:

 

•                                          MANUFACTURING
ORDER BEING PLACED FOR THE SOFTWARE TITLE FOR EACH RESPECTIVE SALES TERRITORY.
IF THIS FORM IS NOT SUBMITTED ON TIME, THE ROYALTY RATE WILL DEFAULT TO
TIER I FOR THE APPLICABLE SALES TERRITORY.

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

 

	
  1. Publisher Name:

  	
   

  	
   

  
	
   

  
	
  2. Xbox Software Title Name:

  	
   

  	
   

  
	
   

  
	
  3. MID Number:

  	
   

  	
  4.Manufacturing Region (check one):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  North America

  
	
   

  	
   

  	
  o

  	
  Europe

  
	
   

  	
   

  	
  o

  	
  Asia

  
	
   

  	
   

  	
   

  
	
  5. Sales Territory (check one):

  	
   

  	
  6.Final Certification Date:

  	
   

  
	
   

  	
   

  	
   

  
	
  o

  	
  North American Sales Territory

  	
   

  	
   

  
	
  o

  	
  Japan Sales Territory

  	
   

  	
   

  
	
  o

  	
  European Sales Territory

  	
   

  	
   

  
	
  o

  	
  Asian Sales Territory

  	
   

  	
   

  
	
   

  
	
  7.Select Royalty Tier: (check one): Tier 1:

  	
  o

  	
    Tier 1.5*:

  	
  o

  	
    Tier 2:

  	
  o

  	
    Tier 3:

  	
  o

  	
   

  
																	

 

*Available
only for manufacturing orders on or after October 1, 2005

 

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

 

MICROSOFT CONFIDENTIAL

 

[***]  The portions of this
document marked with three asterisks represent confidential portions omitted
and filed separately with the Securities and Exchange Commission.

 

9

 

Contract Number:  106389

 

	
   

  	
   

  
	
   

  	
  By (sign)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name, Title (Print)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  E-Mail Address (for confirmation of receipt)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date (Print mm/dd/yy)

  

 

MICROSOFT CONFIDENTIAL

 

[***]  The portions of this
document marked with three asterisks represent confidential portions omitted
and filed separately with the Securities and Exchange Commission.

 

10

 

	
   

  	
  Contract Number: 106389

  

 

Contract Number: 106389

 

EXHIBIT 2

 

ROYALTY TIER
CHANGE FORM

 

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

 

NOTES:

 

•             THIS FORM MUST BE
SUBMITTED AT LEAST FIVE (5) BUSINESS DAYS PRIOR TO THE FIRST MANUFACTURING
ORDER TO WHICH PUBLISHER DESIRES THE NEW BASE ROYALTY TO APPLY FOR EACH RESPECTIVE
SALES TERRITORY.

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

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

 

	
  1.

  	
  Publisher Name:

  
	
   

  
	
  2.

  	
  Xbox Software Title Name:

  
	
   

  
	
  3.

  	
  XMID Number:

  	
  4.

  	
  Manufacturing Region (check one):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  North America

  
	
   

  	
   

  	
  o

  	
  Europe

  
	
   

  	
   

  	
  o

  	
  Asia

  
	
   

  	
   

  	
   

  
	
  5. Sales Territory (check one):

  	
  6.

  	
  First
  Commercial Release (must be on or after September 1, 2005):

  
	
   

  	
   

  	
   

  
	
  o

  	
  North American Sales Territory

  	
   

  	
   

  
	
  o

  	
  Japan Sales Territory

  	
   

  	
   

  
	
  o

  	
  European Sales
  Territory

  	
   

  	
   

  
	
  o

  	
  Asian Sales Territory

  	
   

  	
   

  
	
   

  
	
  7.

  	
  Current royalty tier:  Tier 1:

  	
  o

  	
    Tier 1.5:

  	
  o

  	
   

  	
   

  
	
   

  
	
  8.

  	
  Select Royalty Tier: (check one): Tier
  1.5*:

  	
  o

  	
  Tier 2:

  	
  o

  	
   

  	
   

  
																	

 

*Available only for
manufacturing orders on or after October 1, 2005.

 

MICROSOFT CONFIDENTIAL

 

[***]  The portions of this
document marked with three asterisks represent confidential portions omitted
and filed separately with the Securities and Exchange Commission.

 

11

 

Contract Number:  106389

 

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

 

	
   

  	
   

  	
   

  
	
   

  	
  By (sign)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name, Title (Print)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  E-Mail Address (for confirmation of receipt)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date (Print mm/dd/yy)

  	
   

  

 

MICROSOFT CONFIDENTIAL

 

[***]  The portions of this
document marked with three asterisks represent confidential portions omitted
and filed separately with the Securities and Exchange Commission.

 

12

 

	
   

  	
  Contract Number: 106389

  

 

Contract Number: 106389

 

EXHIBIT 3

 

HITS PROGRAM
ELECTION FORM

 

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

 

NOTES:

 

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

 

1)                                      Publisher Name.

 

2)                                      Xbox Software Title Name:

 

3)                                      XMID Number:

 

4)                                      (circle one)

 

	
   

  	
  Platinum
  Hits

  	
   

  	
  Platinum
  Family Hits

  
	
   

  	
  Classic Hits

  	
   

  	
  Classic
  Family Hits

  
	
   

  	
  Super Hits
  from Platinum or Classic Hits

  	
   

  	
  Super Hits
  from Platinum or Classic

  
	
   

  	
   

  	
   

  	
  Family Hits

  

 

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

 

	
  North American Sales
  Territory

  	
   

  	
  Japan Sales Territory
  (Platinum Hits only)

  
	
  European Sales Territory

  	
   

  	
  Asian Sales Territory

  

 

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

 

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

 

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

 

9)                                      Manufacturing Region for Hit FPUs (circle
one):

	
  North American

  	
   

  	
  European

  	
   

  	
  Asian

  

 

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

 

MICROSOFT CONFIDENTIAL

 

[***]  The portions of this
document marked with three asterisks represent confidential portions omitted
and filed separately with the Securities and Exchange Commission.

 

13

 

Contract Number:  106389

 

	
   

  	
   

  	
   

  
	
   

  	
  By (sign)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name, Title (Print)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  E-Mail Address (for confirmation of receipt)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date (Print mm/dd/yy)

  	
   

  

 

MICROSOFT CONFIDENTIAL

 

[***]  The portions of this
document marked with three asterisks represent confidential portions omitted
and filed separately with the Securities and Exchange Commission.

 

14

 

Contract Number:  106389

 

EXHIBIT 4

 

XBOX PUBLISHER
ENROLLMENT FORM

 

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

 

NOTE:
PUBLISHER MUST COMPLETE, SIGN AND SUBMIT THIS ENROLLMENT FORM PRIOR TO APRIL 1, 2005 TO HAVE A BILLING ADDRESS WITHIN
A EUROPEAN UNION MEMBER COUNTRY (INCLUDING PREVIOUSLY ESTABLISHED ADDRESSES).

 

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

 

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

 

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

 

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

 

	
  Publisher:

  	
   

  	
  Microsoft:

  	
   

  	
  MICROSOFT
  IRELAND OPERATIONS LTD.

  
	
   

  	
   

  	
   

  	
   

  	
  Microsoft
  European Operations Centre,

  
	
  Attention:

  	
   

  	
   

  	
   

  	
  Atrium
  Building Block B,

  
	
   

  	
   

  	
   

  	
   

  	
  Carmenhall
  Road,

  
	
  Fax:

  	
   

  	
   

  	
   

  	
  Sandyford
  Industrial Estate

  
	
  Phone:

  	
   

  	
   

  	
   

  	
  Dublin 18

  
	
   

  	
   

  	
   

  	
   

  	
  Ireland

  
	
  Email:

  	
   

  	
   

  	
   

  	
  Fax: 353 1
  706 4110

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a cc to:

  	
   

  	
  MICROSOFT
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
  One
  Microsoft Way

  
	
   

  	
   

  	
   

  	
   

  	
  Redmond, WA
  90852-6399

  

 

MICROSOFT CONFIDENTIAL

 

[***]  The portions of this
document marked with three asterisks represent confidential portions omitted
and filed separately with the Securities and Exchange Commission.

 

15

 

Contract Number:  106389

 

	
   

  	
   

  	
  Attention:

  	
   

  	
  Law &
  Corporate Affairs Department

  
	
   

  	
   

  	
   

  	
   

  	
  Consumer

  
	
   

  	
   

  	
   

  	
   

  	
  Legal Group,
  H&ED (Xbox)

  
	
   

  	
   

  	
   

  	
   

  	
  Fax: +1 (425) 706-7329

  

 

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

 

[remainder of page intentionally left blank]

 

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

 

	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  VAT number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attention:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Email address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Fax:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Phone:

  	
   

  	
   

  

 

	
  MICROSOFT
  IRELAND OPERATIONS LTD.

  	
   

  	
  PUBLISHER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By (sign)

  	
   

  	
  By (sign)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name (Print)

  	
   

  	
  Name (Print)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date (Print
  mm/dd/yy)

  	
   

  	
  Date (Print
  mm/dd/yy)

  

 

MICROSOFT CONFIDENTIAL

 

[***]  The portions of this
document marked with three asterisks represent confidential portions omitted
and filed separately with the Securities and Exchange Commission.

 

16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]