Document:

Exhibit 10.1

 

DP# 543787

 

AMENDMENT NO. 2 TO
THE

XBOX 360 PUBLISHER
LICENSE AGREEMENT

(2008
Renewal; Tier C; Hits Program Revisions; Expansion Packs; New Xbox 360 Live and
PDLC Incentive Program; 

XLSP; Japan Volume Rebate Revision; Token Promotions; Joint Promotions)

 

This Amendment to
the Xbox 360 Publisher License Agreement (this “Amendment”) is entered into and
effective as of the later of the two signature dates below (the “Amendment
Effective Date”) by and between Microsoft Licensing, GP,  a
Nevada general partnership (“Microsoft”), and THQ, INC. (“Publisher”),
and supplements that certain Xbox 360 Publisher License Agreement  between the
parties dated as of October 31, 2005, as amended (the “Xbox 360 PLA”).

 

RECITALS

 

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

 

B.                                     The
parties now wish to extend the term and otherwise amend certain terms of the
Xbox 360 PLA as set forth below.

 

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

 

1.                                      Definitions

 

1.1                                 The definitions of “Asian
Manufacturing Region”, “North American
Manufacturing Region”, “European Manufacturing
Region” and “Manufacturing Region”
are hereby deleted from the Xbox 360 PLA.

 

1.2                                 The definition of “Online
Content” is hereby amended and restated in its entirety as follows:

 

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

 

1.3                                 The definition of “Software
Title” is hereby expanded to include Expansion Pack(s).

 

1.4                                 The following definitions are hereby added to
Section 2 of the Xbox 360 PLA.

 

1.4.1                         “Expansion Pack” means an FPU that is an add-on, mission
pack, game expansion, incremental content, and/or other addition to a Software
Title that (i) would not be generally considered in the console game
industry to be a next full version release (e.g., a version 1.0 to 1.5); (ii) requires
another full version video game in order to operate, (iii) is derived from
the content, story, characters or other intellectual property of the full
version video game required to play it, and (iv) has a WSP (defined below)
that is equal to or below the Threshold Price (defined below) listed for the
royalty tiers applicable to Expansion Packs in Section 1 b. of Exhibit 1
attached hereto.  In order to meet this
definition of Expansion Pack, such addition to a Software Title must be
approved by Microsoft as an Expansion Pack.

 

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

 

MICROSOFT CONFIDENTIAL

 

1

 

1.4.3                         “Hit(s) FPU” means each unit of a Software Title that is
qualified and participating in a Hits Program.

 

1.4.4                         “Hits Program(s)” mean Xbox 360 Platinum or Classic Hits
and/or the Xbox 360 Family Hits programs.

 

1.4.5                        “Hits Software Title” means any Software Title that
qualifies to participate in the Hits Program pursuant to Section 2 of Exhibit 1
attached hereto.

 

1.4.6                         “Standard FPU” means an FPU of a Software Title that is not a
Hits FPU.

 

1.4.7                        “Standard Software Title” means any Software Title that is
not a Hits Software Title or an Expansion Pack.

 

1.4.8                         “Threshold Price” means the Wholesale Price (WSP) in the case
of the North American, European, and Asian Sales Territories, or Suggested
Retail Price (SRP) in the Japan Sales Territory at which Publisher intends to
sell the Software Title.  If the Software
Title is bundled with any other product or service that is not another Software
Title, the Threshold Price will be the applicable WSP or SRP for the entire
bundle.

 

1.5                                 Except as expressly provided otherwise in
this Amendment, capitalized terms shall have the same meanings as those
ascribed to them in the Xbox 360 PLA.

 

2.                                      Term

 

Section 17.1 of the Xbox 360 PLA is hereby amended and
restated in its entirety as follows:

 

“17.1                Term.  The
term of this Agreement shall commence on the Effective Date and shall continue until
six (6) years after such date that the Xbox 360 is first commercially
released by Microsoft in the United States. 
Unless one party gives the other notice of non-renewal within sixty (60)
days of the end of the then-current term, this Agreement shall automatically
renew for successive one-year terms.”

 

3.                                      Pre-Certification

 

Section 4.1.2 of the Xbox 360 PLA is hereby amended
and restated in its entirety as follows:

 

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

 

4.                                      Exhibits

 

4.1                                 Exhibits 1, 2 and 3 of the Xbox 360 PLA are
hereby amended and restated in their entirety as attached hereto. Exhibit 6
(Japan/Asian Royalty Incentive Program) of the Xbox 360 PLA has expired. 
Exhibits 6, 8 and 9 attached hereto are hereby added to the Xbox 360
PLA.

 

4.2                                 The term of the Xbox 360 Live Incentive
Program attached as Exhibit 7 of the Xbox 360 PLA (the “Original
Live Incentive Program”) is hereby extended until December 31, 2008.  Effective January 1, 2009, the Original
Live Incentive Program is replaced by the Xbox Live and PDLC Incentive Program
attached as Exhibit 7 to this Amendment.

 

5.                                      Non-Disclosure

 

Section 13.1
of the Xbox 360 PLA is hereby deleted and replaced by the following:

 

2

 

“13.1                     “Non-Disclosure Agreement.  The information, materials and software
exchanged by the parties hereunder or under an XDK License, including the terms
and conditions hereof and of the XDK License, are subject to the Non-Disclosure
Agreement between the parties attached hereto as Exhibit 5 (the “Non-Disclosure
Agreement”), which is incorporated herein by reference; provided, however, that
for purposes of the foregoing, any time limitation in the Non-Disclosure
Agreement on the parties’ obligations to refrain from disclosing information
protected under the Non-Disclosure Agreement (“Confidential Information”) shall
be extended so that any Confidential Information provided in relation to this
Agreement or by way of the XDK License in whatever form (e.g. information,
materials, tools and/or software exchanged by the parties hereunder or under an
XDK License), including the terms and conditions hereof and of the XDK License,
unless otherwise specifically stated, will be protected from disclosure for as
long as it remains confidential.”

 

6.                                      Promotions

 

6.1                                 Token Promotions.  In
the event Publisher desires to distribute password-protected codes representing
“tokens” (a “Token Promotion”) that are redeemable by users for Online Content
downloads from Xbox Live (“Content Tokens”) as part of promotional activities
related to a Software Title using Xbox Live Marketplace, Publisher shall submit
to Microsoft a Content Token Request form available in the Xbox 360 Publisher
Guide (“Token Form”) for approval by Microsoft. 
Upon approval by Microsoft, Publisher will pre-pay all applicable fees
as set forth in the Xbox 360 Publisher Guide, or Microsoft may****.  As soon as ****, Microsoft shall create
Content Tokens and deliver them to Publisher. 
Publisher may distribute the Content Tokens for the Content download
solely as part of the Token Promotion within the Sales Territory and during the
term of the Token Promotion specified on the Token Form.  No other payments under the Xbox 360 PLA (MS
Points or otherwise) will be paid with respect to the Content Tokens. Publisher
shall be solely responsible for all aspects of marketing and fulfillment of the
Token Promotion, including without limitation all advertising and other
promotional materials related to the Token Promotion which shall be deemed
Marketing Materials.

 

6.2                                 Joint  Promotions. 
Microsoft and Publisher may from time to time agree to develop, execute,
and administer promotions involving the Software Title(s) (e.g., Play and
Win weekends for the Software Titles on Xbox LIVE, promotional sweepstakes
involving the Software Titles, etc.) (each, a “Promotion”).  In connection therewith, Microsoft and
Publisher shall mutually agree upon and execute a promotion schedule to this
Agreement in the form set forth in the Xbox 360 Publisher Guide (each, a “Promotion
Schedule”).  The parties agree that the
following additional terms and conditions shall apply to each Promotion for
which a Promotion Schedule has been fully executed: ****.

 

7.                                      Online Content Samples.

 

7.1                                 Xbox LIVE Arcade.  For
each piece of Online Content that is an Xbox LIVE Arcade game, Microsoft will
be entitled to create **** Content Tokens, **** of which Microsoft will provide
to the Publisher and **** of which Microsoft may use in marketing, as product
samples, for customer support, testing and archival purposes.  Publisher shall not be entitled to any
Royalty Fee or other compensation with respect to Microsoft’s distribution of
Content Tokens as authorized under this Section 7.1.

 

7.2                                 Premium Online Content.  For
each piece of Premium Online Content, Microsoft will be entitled to create up
to **** Content Tokens, which Publisher and Microsoft may use in marketing, as
product samples, for customer support, testing and archival purposes (the
Content Tokens will be split approximately **** between Publisher and Microsoft
respectively).  Publisher shall not be
entitled to any Royalty Fee or other compensation with respect to Microsoft’s
distribution of Content Tokens as authorized under this Section 7.2

 

8.                                      Online Content

 

Notwithstanding any
termination or expiration of Microsoft’s license to distribute Online Content,
Publisher acknowledges and agrees that Microsoft will retain a copy of Online
Content, and Publisher hereby grants Microsoft the license to redistribute the
final version of any Online Content to Xbox Live Users who have previously
purchased it, directly or indirectly, from Microsoft.

 

 

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

  

 

3

 

9.                                      Minimum Order Quantities

 

9.1                                 The MOQ per Software Title set forth in Section 7.5.1
of the Xbox 360 PLA for the North American Sales Territory is hereby increased
to ****.

 

9.2                                 Section 7.5.2 of the Xbox 360 PLA is
hereby amended and restated as follows:

 

“7.5.2                                          For the
purposes of this section, a “Disc” shall mean an FPU that is signed for use on
a certain defined range of Xbox 360 hardware, regardless of the number of
languages or product skus contained thereon. 
Publisher must meet the MOQs independently for each Sales
Territory.  For example, if an FPU is
released in both the North American Sales Territory and the European Sales Territory,
then the Publisher must place orders to manufacture (i) at least **** FPUs
for sale in the North American Sales Territory, including a minimum of **** per
Disc included in such FPUs, and (ii) **** FPUs for the European Sales
Territory, including a minimum of **** per Disc included in such FPUs.”

 

10.                                 Except and to the extent
expressly modified by this Amendment No. 2, the Xbox 360 PLA shall remain
in full force and effect and is hereby ratified and confirmed.   In the event of any conflict between this
Amendment No. 2 and the Xbox 360 PLA the terms of this Amendment shall
control.

 

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

 

 

	
  MICROSOFT LICENSING, GP

  	
   

  	
  THQ, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By (sign)

  	
   

  	
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  Name (Print)

  
	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
  Date (Print mm/dd/yy)

  	
   

  	
  Date (Print mm/dd/yy)

  

 

 

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

  

 

4

 

EXHIBIT 1

 

PAYMENTS

 

1.                                      Platform Royalty

 

a.                                       For each FPU manufactured during the term of
this Agreement, Publisher shall pay Microsoft nonrefundable royalties in
accordance with the royalty tables set forth below (Tables 1 and 2) and the “Unit
Discount” table set forth in Section 1.d of this Exhibit 1
(Table 3).

 

b.                                      To determine the applicable royalty rate for
a particular Software Title that will be sold in a particular Sales Territory,
the applicable Threshold Price from Table 1 below for the category of Software
Title (Standard Software Title, Hits Software Title and Expansion Pack) will
determine the correct royalty “Tier” (except with respect to the first
Commercial Release of Hits Software Titles as described further in (ii) below).  The royalty rate is then as set forth in
Table 2 based on such Tier and the Sales Territory in which the FPUs will be
sold.  For example, assume the Wholesale
Price of a Standard Software Title to be sold in the European Sales Territory
is ****.  According to Table 1, ****
royalty rates will apply to that Software Title and the royalty rate for each
FPU as set forth in Table 2 is ****.

 

 

	
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* ****.

 

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

  

 

5

 

c.                                       Setting the Royalty.

 

(i)                                     Standard Software Titles and Expansion Packs. Publisher shall submit to Microsoft, at
least **** before placing the first manufacturing order for a Standard Software
Title or an Expansion Pack, a completed and signed “Xbox 360 Royalty Tier
Selection Form” in the form attached to this Agreement as Exhibit 2
for each Sales Territory.  The selection
indicated in the Xbox 360 Royalty Tier Selection Form will only be
effective once it has been approved by Microsoft.  If a Standard Software Title or Expansion
Pack does not have an approved Xbox 360 Royalty Tier Selection Form as
required hereunder (e.g. as a result of the Publisher not providing a Xbox 360
Royalty Tier Selection Form or because Microsoft has not approved the Xbox
360 Royalty Tier Selection Form), the royalty rate for such Standard Software
Title will default to **** or for such Expansion Pack will default to ****,
regardless of the actual Threshold Price (i.e., if Microsoft does not approve
an Xbox 360 Royalty Tier Selection Form because it is filled out
incorrectly, the royalty rate will default to ****).  Except as set forth in Section 2 (Hits
Programs), the selection of a royalty tier for a Standard Software Title or
Expansion Pack in a Sales Territory is binding for the life of that Software
Title or Expansion Pack even if the Threshold Price is reduced following the
Software Title’s Commercial Release.

 

(ii)                                  Hits
Software Title.  Publisher shall
submit to Microsoft, at least **** prior to the targeted Commercial Release of
the Hits Software Title a completed and signed Hits Programs Election Form in
the form attached hereto as Exhibit 6 for each Sales
Territory.  The Hits Programs Election Form will
only be effective once it has been approved by Microsoft.  If a Hits Software Title does not have an
approved Hits Programs Election Form as required hereunder (e.g. as a
result of the Publisher not providing a Hits Programs Election Form or
because Microsoft has not approved the Hits Programs Election Form), the
royalty rate for such Hits Software Title will default to **** (i.e., if
Microsoft does not approve a Hits Programs Election Form because it is
filled out incorrectly, the royalty rate will default to ****).  Unless the Software Title is a Family Hits
Title, the first time a Software Title is Commercially Released as a Hits
Software Title, the **** royalty rate will apply.  However, if the Software Title is a Family
Hits Title and meets the WSP requirements set forth in Table 1 above, Publisher
may select the **** royalty rate.  For
the avoidance of doubt, all Hits Software Titles for the European Sales
Territory shall default to the **** royalty rate.

 

Beginning ****
after the Commercial Release of a Hits Software Title at the **** royalty rate,
Publisher may elect to change the previously elected royalty rate for such Hits
Software Title to **** in a specific Sales Territory provided that the Hits
Software Title has a WSP or SRP that meets the requirements for **** royalty
rate in Table 1 above. Publisher must submit to Microsoft, at least **** before
placing the first manufacturing order for the applicable Hits Software Title, a
completed Xbox 360 Royalty Tier Migration Form  (a “Tier Migration Form”)
set forth in Exhibit 8 for each Sales Territory. The change in
royalty rate will only apply to manufacturing orders for such Hits Software
Title placed after the relevant Tier Migration Form has been approved by
Microsoft.

 

(iii)                             Cross Territory Sales. 
Except for FPUs manufactured pursuant to Section 5 below (Asia
Simship Program), Publisher may not sell FPUs in a certain Sales Territory that
were manufactured for a different Sales Territory.  For example, if Publisher were to manufacture
and pay royalties on FPUs designated for sale in the Asian Sales Territory,
Publisher could not sell those FPUs in the European Sales Territory.

 

d.                                      Unit Discounts.   Publisher is eligible for a
discount to FPUs manufactured for a particular Sales Territory (a “Unit
Discount”) based on the number of FPUs that have been manufactured for sale in
that Sales Territory as described in Table 3 below.   Except as provided in Section 5 below,
units manufactured for sale in a Sales Territory are aggregated only towards a
discount on FPUs manufactured for that Sales Territory; there is no worldwide
or cross-territorial aggregation of units for a particular Software
Title.  The discount will be rounded up to the nearest Cent, Yen or
hundredth of a Euro.

 

	
  Table
  3: Unit Discounts

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

  

 

6

 

*
The revised Unit Discounts for the Japan Sales Territory will only be effective
for Software Titles that are initially manufactured for the Japan Sales
Territory after the Amendment Effective Date. 
All Software Titles initially manufactured prior to the Amendment
Effective Date are subject to the Unit Discounts set forth in the Xbox 360 PLA
prior to this Amendment.

 

2.                                      Hits Programs

 

a.                                       If a Software Title meets the criteria set
forth below and the applicable participation criteria in a particular Sales
Territory at the time of the targeted Commercial Release date of the Hits FPU
and Microsoft receives the Hits Programs Election Form within the time
period set forth in Section 2.a.iv below, Publisher is authorized to
manufacture and distribute Hits FPUs in such Sales Territory and at the royalty
rate in Table 2 of Section 1 above applicable to Hits FPUs.  In order for a Software Title to qualify as a
Hits FPU in a Sales Territory, the following conditions, as applicable per Hits
Program, must be satisfied:

 

i.                                          the
Software Title must have been commercially available as a Standard FPU in the
applicable Sales Territory for at least **** but not more than **** at the time
of Commercial Release of the Hits FPU.

 

ii.                                       In
any calendar year in a Sales Territory, Publisher may not publish more than
**** Software Titles as a Family Hit.

 

iii.                                    The
Threshold Price for the Hits FPU must not exceed a maximum Threshold Price for
the relevant Sales Territory (**** for the North American Sales Territory, **** in the European Sales Territory, **** in
the Japan Sales Territory, or the equivalent of **** for the Asian Sales
Territory).

 

iv.                                 Publisher
must provide notice to Microsoft, at least **** prior to the targeted
Commercial Release, of its intent to have a certain Software Title participate
in the Hits Program by providing Microsoft with a completed Hits Program
Election Form.

 

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

 

	
  Table
  1: Manufacturing Requirements

  
	
  From the
  Amendment Effective Date to March 31, 2009

  
	
   

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

 

d.                                      The Hit FPU version must be the same or
substantially equivalent to the Standard FPU version of the Software
Title.  Publisher may modify or add
additional content or features to the Hit FPU version of the Software Title
(e.g., demos or game play changes) subject to Microsoft’s review and approval,
and Publisher acknowledges that any such modifications or additions may require
the Software Title to be re-Certified at Publisher’s expense.

 

e.                                       Publisher acknowledges that Microsoft may
change any of the qualifications for participation in a Hit Program upon ****
advanced written notice to Publisher.

 

 

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

  

 

7

 

3.                                      Payment Process

 

Publisher will pre-pay all royalties owed to
Microsoft for all FPUs manufactured by its Authorized Replicator, in United
States dollars for all FPUs manufactured for sale in the North American Sales
Territory, in Euros for all FPUs manufactured for sale in the European Sales
Territory and in Yen for all FPUs manufactured for sale in the Japan and Asian
Sales Territories.  Publisher shall not
authorize its Authorized Replicators to begin production until such time as
****.  Depending upon Publisher’s credit
worthiness, Microsoft may, but is not obligated to, offer Publisher credit
terms for the payment of royalties due under this Agreement within **** from
invoice creation.   All
payments will be made by wire transfer only, in accordance with the payment
instructions set forth in the Xbox 360 Publisher Guide.

 

4.                                      Billing Address

 

a.                                       Publisher may have only two “bill to”
addresses for the payment of royalties under this Agreement, one for FPUs
manufactured by Authorized Replicators located in the North American Sales Territory
and one for FPUs manufactured by Authorized Replicators located in the Japan
Sales Territory and Asian Sales Territory. 
If Publisher desires to have a “bill-to” address in a European country,
Publisher (or a Publisher Affiliate) must execute an Xbox 360 Publisher
Enrollment Form with MIOL within ten (10) business days prior to
establishing a billing address in a European country in the form attached to
this Agreement as Exhibit 3.

 

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

 

	
  North American Sales
  Territory:

  	
  Japan and Asian Sales
  Territory (if different than the North American billing address):

  
	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
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  Address:

  	
   

  	
   

  	
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  Attention:

  	
   

  	
   

  	
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  Email address: 

  	
   

  	
   

  	
  Email address: 

  	
   

  	
   

  
	
  Fax:

  	
   

  	
   

  	
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  Phone:

  	
   

  	
   

  	
  Phone:

  	
   

  	
   

  

 

5.                                      Asia Simship Program

 

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

 

 

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

  

 

8

 

6.                                      Online Content

 

a.                                       For
the purpose of this Section 6, the following capitalized terms have the
following meanings:

 

****

 

****

 

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

 

c.                                       ****

 

d.                                      ****

 

e.                                       ****

 

f.                                         ****

 

g.                                    ****

 

7.                                      Xbox Live Billing and Collection

 

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

 

8.                                      Taxes

 

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

 

b.                                      Any sales or use  taxes described in a. above that (i) are
owed by either party solely as a result of entering into this Agreement and the
payment of the fees hereunder, (ii) are required to be collected from that
party under applicable law, and (iii) are based solely upon the amounts
payable under this Agreement (such taxes the “Collected Taxes”), will be stated
separately as applicable on payee’s invoices and will be remitted by the other
party to the payee, upon request payee shall remit to the other party official
tax receipts indicating that such Collected Taxes have been collected and paid
by the payee.  Either party may provide
the other party an exemption certificate acceptable to the relevant taxing
authority (including without limitation a resale certificate) in which case
payee shall not collect the taxes covered by such certificate.  Each party agrees to take such commercially
reasonable steps as are requested by the other party to minimize such Collected
Taxes in accordance with all relevant laws and to cooperate with and assist the
other party, in challenging the validity of any

 

 

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

  

 

9

 

Collected
Taxes or taxes otherwise paid by the payor party.  Each party shall indemnify and hold the other
party harmless from any Collected Taxes, penalties, interest, or additions to
tax arising from amounts paid by one party to the other under this Agreement,
that are asserted or assessed against one party to the extent such amounts
relate to amounts that are paid to or collected by one party from the other
under this section. If any taxing authority refunds any tax to a party that the
other party originally paid, or a party otherwise becomes aware that any tax
was incorrectly and/or erroneously collected from the other party, then that
party shall promptly remit to the other party an amount equal to such refund,
or incorrect collection as the case may be plus any interest thereon.

 

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

 

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

 

9.                                      Audit

 

During
the term of this Agreement and for **** thereafter each party shall keep all
usual and proper records related to its performance under this Agreement,
including but not limited to audited financial statements and support for all
transactions related to the ordering, production, inventory, distribution and
billing/invoicing information.  Such
records, books of account, and entries will be kept in accordance with
generally accepted accounting principles. 
Either party (the “Auditing Party”) may audit and/or inspect the other
party’s (the “Audited Party”) records no more than **** in any **** period in
order to verify compliance with the terms of this Agreement.  The Auditing Party may, upon reasonable
advance notice, audit the Audited Party’s records and consult with the Audited
Party’s accountants for the purpose of verifying the Audited Party’s compliance
with the terms of this Agreement and for a period of ****.  Any such audit will be conducted during
regular business hours at the Audited Party’s offices.  Any such audit will be paid for by Auditing
Party unless Material discrepancies are disclosed.  As used in this section, “Material” means
****.  If Material discrepancies are
disclosed, the Audited Party agrees to pay the Auditing Party for ****.

 

 

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

  

 

10

 

EXHIBIT 2

 

XBOX 360
ROYALTY TIER SELECTION FORM

 

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

 

NOTES:

1.         THIS
FORM MUST BE SUBMITTED AT LEAST **** PRIOR TO THE FIRST MANUFACTURING
ORDER BEING PLACED FOR THE SOFTWARE TITLE FOR EACH RESPECTIVE SALES
TERRITORY.  IF THIS FORM IS NOT
SUBMITTED ON TIME OR IS REJECTED BY MICROSOFT, THE ROYALTY RATE WILL DEFAULT TO
**** FOR THE APPLICABLE SALES TERRITORY.

 

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

 

 

	
  1.   Publisher Name:

  	
   

  	
   

  

 

	
  2.   Xbox 360 Software Title Name:

  	
   

  	
   

  

 

	
  3.   XeMID Number:

  

 

	
   

  	
   

  	
   

  

 

	
  4.   Sales Territory (check one):

  	
   

  	
   

  

 

	
   

  	
   

  	
   

  	
  North American Sales Territory

  	
   

  
	
   

  	
   

  	
   

  	
  Japan Sales Territory

  	
   

  
	
   

  	
   

  	
   

  	
  European Sales Territory

  	
   

  
	
   

  	
   

  	
   

  	
  Asian Sales Territory

  	
   

  

 

	
  5.   Final Certification Date:

  	
   

  	
   

  

 

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

  

 

 

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

 

	
   

  	
   

  	
   

  
	
   

  	
  By (sign)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name, Title (Print)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  E-Mail Address (for
  confirmation of receipt)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date (Print mm/dd/yy)

  	
   

  

 

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

  

 

11

 

EXHIBIT 3

 

XBOX 360
PUBLISHER ENROLLMENT FORM

 

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

 

NOTE:  PUBLISHER MUST COMPLETE, SIGN AND SUBMIT THIS
ENROLLMENT FORM ****.

 

This
Xbox 360 Publisher Enrollment Form (“Enrollment”) is entered into between
Microsoft Ireland Operations Ltd. (“MIOL”) and the following publisher (“Publisher”):

 

	
  Publisher:

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
   

  	
   

  
	
  Phone:

  	
   

  	
   

  	
   

  
	
  Email:

  	
   

  	
   

  	
   

  
	
  VAT number:

  	
   

  	
   

  	
   

  
									

 

and is effective as of
the latter of the two signatures identified below.   The terms of that certain Xbox 360 Publisher
License Agreement signed by Microsoft Licensing, GP and ____________________ dated __________________ (the
“Xbox 360 PLA”) are incorporated herein by reference.

 

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

 

2.                                     Representations
and Warranties.  By signing this
Enrollment, the parties agree to be bound by the terms of this Enrollment, and
Publisher represents and warrants that: (i) it has read and understands
the Xbox 360 PLA, including any amendments thereto, and agrees to be bound by
those; (ii) it is either the entity that signed the Xbox 360 PLA or its
affiliate; and (iii) the information that it has provided herein is
accurate.

 

3.                                     Notices;
Requests.  All notices and requests
in connection with this Enrollment are deemed given on (i) the **** after
they are deposited in the applicable country’s mail system (**** if sent
internationally), postage prepaid, certified or registered, return receipt
requested; or (ii) **** after they are sent by overnight courier, charges
prepaid, with a confirming fax; and addressed to the Publisher as set forth
above and to MIOL as follows:

 

	
  Microsoft:

  	
  MICROSOFT IRELAND OPERATIONS LTD.

  
	
   

  	
  Microsoft European
  Operations Centre,

  
	
   

  	
  Atrium Building Block
  B,

  
	
   

  	
  Carmenhall Road,

  
	
   

  	
  Sandyford Industrial
  Estate

  
	
   

  	
  Dublin 18

  
	
   

  	
  Ireland

  
	
   

  	
   

  
	
   

  	
  Fax: 353 1 706 4110

  
	
   

  	
   

  
	
  Attention:

  	
  MIOL Xbox Accounting
  Services

  
	
   

  	
   

  
	
  with a cc to:

  	
  MICROSOFT CORPORATION

  
	
   

  	
  One Microsoft Way

  
	
   

  	
  Redmond, WA 98052-6399

  

 

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

  

 

MICROSOFT CONFIDENTIAL

 

1

 

	
  Attention:

  	
  Legal &
  Corporate Affairs Department

  
	
   

  	
  Legal Group, E&D
  (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.

 

 

4.                                     Billing
Address.  For purposes of the Xbox
360 PLA, Exhibit 1, Section 4, Publisher’s billing address for FPUs
manufactured by Authorized Replicators located in the European Sales Territory
is as follows:

 

	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  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)

  

 

2

 

EXHIBIT 6

 

XBOX 360
HITS PROGRAMS ELECTION FORM

 

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

 

NOTES:

	
  ·

  	
   

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

  
	
  ·

  	
   

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

  

 

	
  1)

  	
   

  	
  Publisher Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2)

  	
   

  	
  Xbox 360 Software Title Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3)

  	
   

  	
  XMID Number:

  	
   

  	
   

  
							

 

4)              Hits Program (circle one)

 

	
   

  	
   

  	
   

  	
   

  	
  Platinum Hits

  	
   

  	
   

  	
   

  	
  Platinum Family Hits

  
	
   

  	
   

  	
   

  	
   

  	
  Classic Hits

  	
   

  	
   

  	
   

  	
  Classic Family Hits

  

 

5)              Royalty Tier if Family Hits (select one; ****
not available in the European Sales Territory):

 

****

 

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

 

	
   

  	
   

  	
   

  	
   

  	
  North American Sales Territory

  	
   

  	
   

  	
   

  	
  Japan Sales Territory

  
	
   

  	
   

  	
   

  	
   

  	
  European Sales Territory

  	
   

  	
   

  	
   

  	
  Asian Sales Territory

  

 

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

 

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

 

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

	
   

  	
   

  	
   

  	
   

  

 

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

 

	
   

  	
   

  	
   

  
	
   

  	
  By (sign)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name, Title (Print)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  E-Mail Address (for
  confirmation of receipt)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date (Print mm/dd/yy)

  	
   

  

 

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

  

 

3

 

EXHIBIT 7

 

XBOX 360
LIVE AND PDLC INCENTIVE PROGRAM

 

1.                                      Xbox 360 Live and PDLC Incentive Program

 

To
encourage Publisher to support functionality for Xbox Live in its Xbox 360
Software Titles, to drive increased usage of Xbox Live via Xbox 360 and to
increase support of Premium Downloadable Content, Publisher may qualify for
certain payments based on the amount of Xbox Live Market Share (defined in Section 2.a.
of this Exhibit 7 below) created by Publisher’s Multiplayer
Software Titles (defined in Section 2.c. of this Exhibit 7
below).  Each Accounting Period (defined
in Section 2.j. of this Exhibit 7 below), Microsoft will
calculate Publisher’s Xbox Live Market Share. 
If Publisher is ranked in the **** in the applicable Accounting Period
and ****, then Microsoft will pay Publisher the applicable Incentive set forth
in the table in Section 3 of this Exhibit 7 based on **** in
the applicable Accounting Period.

 

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

 

2.                                      Definitions

 

a.                                       “Accounting Period” means ****, within the
Term (defined in Section 5 below); provided that if the Effective Date of
this Agreement or the expiration date of this program falls within such ****,
then the applicable payment calculation set forth below shall be made for a
partial Accounting Period, as appropriate.

 

b.                                       “Monthly Unique User Market
Share” means ****.

 

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

 

d.                                      “Monthly Unique Users” means ****.

 

e.                                        “New Subscriber Market Share” means ****.

 

f.                                         “New Subscriber” means a Paying Subscriber who pays for an
Xbox Live account for the first time.  A New Subscriber is attributed to
the first Multiplayer Software Title he or she plays, even if such play was
during a free-trial period which was later converted into a paying
subscription.  Each Paying Subscriber can
only be counted as a New Subscriber once, provided that each New Subscriber
that is located in the European Sales Territory (according to Microsoft’s
records) will be counted as three New Subscribers for the purposes of
calculating Publisher’s Xbox Live Market Share under this Exhibit 7.

 

g.                                      “Paying Subscriber” means ****.

 

h.                                       “PDLC Revenue”
means ****.

 

i.                                          “PDLC Revenue Market Share”
means ****.

 

j.                                          “Subscription Revenue” means ****.

 

k.                                        “Xbox Live Market Share” = ****.

 

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

  

 

4

 

3.                                      Incentive Table

 

Publisher’s “Incentive” shall
be determined
pursuant to the following table:

 

	
   

  	
   

  ****

   

  
	
  ****

  	
  ****

  	
  ****

  	
  ****

  
	
  ****

  	
  ****

  	
  ****

  	
  ****

  
	
  ****

  	
  ****

  	
  ****

  	
  ****

  
	
  ****

  	
  ****

  	
  ****

  	
  ****

  

 

4.                                      Example

 

****

 

5.                                      Term

 

This
Xbox 360 Live and PDLC Incentive Program will commence ****.  Microsoft reserves the right to change the
Xbox Live Market Share upon written notice to Publisher, but no more frequently
than ****.

 

6.                                      Payments

 

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

 

7.                                      Modifications to Xbox 360 Live and PDLC
Incentive Program

 

In
the event that Microsoft changes the Xbox Live subscription model in a way that
impacts the Subscription Revenue on a per Paying Subscriber basis by more than
****, Microsoft may change or discontinue the Xbox Live and PDLC Incentive
Program by providing Publisher with **** advance notice.

 

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

  

 

5

 

EXHIBIT 8

 

XBOX 360
HITS ROYALTY TIER MIGRATION FORM

 

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

 

NOTES:

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

·             A HITS
SOFTWARE TITLE MAY NOT CHANGE ROYALTIES TIERS UNTIL AFTER IT HAS BEEN IN
THE HITS PROGRAM FOR AT LEAST ****.

·             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 360 Software Title Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  XMID Number:

  	
   

  	
   

  
							

 

4.  Sales Territory (check one; Hits Tier 2 not
available in the European Sales Territory):

 

	
   

  	
   

  	
   

  	
  North American Sales Territory

  	
   

  
	
   

  	
   

  	
   

  	
  Japan Sales Territory

  	
   

  
	
   

  	
   

  	
   

  	
  Asia Sales Territory

  	
   

  

 

5.  Date of First Commercial Release:

 

	
   

  	
   

  

 

7.  Current royalty tier:  ****

 

8.  Select New Royalty Tier:  ****

 

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

	
   

  	
   

  	
   

  
	
   

  	
  By (sign)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name, Title (Print)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  E-Mail Address (for
  confirmation of receipt)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date (Print mm/dd/yy)

  	
   

  

 

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

  

 

6

 

 

 

EXHIBIT 9

 

XLSP Terms

 

The following terms and conditions apply to
Publisher’s use of the Xbox Live Server Platform (“XLSP Terms”):

 

1.                                      Definitions

 

1.1                                 “Publisher Hosted Online Content”
means any content, including
without limitation any Online Content, that is hosted and served through the
Publisher Hosting Services.

 

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

 

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

 

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

 

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

 

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

 

2.                                      Approval and Certification

 

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

 

3.                                      Privacy

 

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

 

4.                                      Beta Trials

 

At any time prior to Certification of the Software
Title, Microsoft may require that internal or public beta testing be conducted
by or on behalf of Microsoft (the “Beta Trials”). Microsoft’s prior written
approval, which may be withheld in Microsoft’s sole discretion, is required for
any Beta Trials. All feedback provided by Microsoft to Publisher as a result of
the Beta Trials is advisory in nature, and satisfactory feedback from the Beta
Trials is not an indication that the Publisher Hosted

 

7

 

Online Content will be approved following the
Certification submission. Likewise, Beta Trial feedback may include information
regarding violations of technical Certification requirements that could, if not
addressed by Publisher, result in Certification failure.

 

5.                                      Publisher Hosting Services

 

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

 

5.2                                 Third Party Host. If Publisher is using a Third Party Host to
provide the Publisher Hosting Services, Publisher may provide the Third Party
Host with access to only those portions of the XDK that are necessary for the
Third Party Host to perform the Publisher Hosting Services. Prior to using the
services of any Third Party Host, the Third Party Host and Publisher must sign
a Third Party Hosting Agreement substantially and materially in the form set
forth in the Xbox 360 Publisher Guide, and Microsoft must accept and approve
such agreement in writing. Publisher hereby  unconditionally
and irrevocably guarantees the Third Party Host’s performance of the applicable
obligations and restrictions imposed by these XLSP Terms and the Third Party
Hosting Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

8

 

5.3.5                        Server Location.
Publisher must locate all servers used to operate the Publisher Hosting
Services in approved territories as provided for in the Xbox 360 Publisher
Guide.

 

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

 

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

 

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

 

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

 

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

 

6.                                      Xbox Live User Content

 

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

 

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

 

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

 

7.                                      Action by Microsoft

 

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

 

9

 

Content to, or require Publisher to remove Xbox Live
User Content from, Xbox Live in accordance with the Xbox Live Terms of Use, the
Xbox Live Privacy Policy and the Xbox Live Code of Conduct.

 

8.                                      Termination

 

8.1                                 Termination. In addition to the termination provisions
of the Xbox 360 PLA, Microsoft may terminate Publisher’s use of XLSP at any
time for Publisher’s failure to comply with these XLSP Terms.

 

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

 

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

 

9.                                      Warranties

 

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

 

9.1                                 Any and all information, data, logos,
software or other materials provided to Microsoft and/or made available to Xbox
Live Users via Publisher Hosted Online Content or the Publisher Hosting
Services complies with all laws and regulations and  does
not and will not infringe upon or misappropriate any third party trade secrets,
copyrights, trademarks, patents, publicity, privacy or other proprietary
rights.

 

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

 

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

 

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

 

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

 

10.                               Indemnification

 

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

 

11.                               Sub-Publishing

 

Publisher may enter into sub-publishing arrangements
as provided for in the Xbox 360 PLA with respect to Software Titles subject to
these XLSP Terms, provided that Publisher remains in control of and responsible
for the operations of all Publisher 

 

10

 

Hosted Online Content and Publisher Online Services.
If Publisher desires to transfer the ownership and operation of Publisher
Online Services to its sub-publishing partner, then the sub-publisher must be
treated as a Third Party Host hereunder or Publisher must get confirmation in
writing that the sub-publisher has its own XLSP Addendum in place with
Microsoft.

 

11Exhibit
10.2

 

CONFIDENTIAL

 

REDACTED
TEXT FOR 10Q FILING

 

CONFIDENTIAL
FIRST RENEWAL LICENSE AGREEMENT

FOR
NINTENDO DS

(EEA,
AUSTRALIA, AND NEW ZEALAND)

 

THIS FIRST RENEWAL
LICENSE AGREEMENT (“Agreement”) is entered into between NINTENDO CO., LTD.
(“NINTENDO”) at 11-1 Kamitoba Hokotate-cho, Minami-ku, Kyoto, Japan 601-8501,
Attn: General Manager, International Division, International Business
Department (Fax: 81.75.662.9620), and THQ
INC., whose address for contact is 29903 Agoura Road, Agoura Hills,
California 91301 (Fax: 818.871.7400), Attn: VP of Business and Legal Affairs; THQ INTERNATIONAL GmbH at Schweizergasse
14, 8001 Zurich, Switzerland; and THQ (UK)
LIMITED at Dukes Court, Duke Street, Woking, Surrey GU21 5BH, United
Kingdom; and THQ ENTERTAINMENT GmbH
at Kimplerstrabe 278, 47807 Krefeld, Germany; and THQ FRANCE  SARL
at 1 rue Saint Georges, 75009 Paris, France; and THQ ASIA PACIFIC PTY LTD. at Level 8, 606 St. Kilda Road,
Melbourne, VIC 3004, Australia; and THQ
NORDIC ApS, at Islands Brygge 43, 2300 Copenhagen S, Denmark; THQ INTERACTIVE ENTERTAINMENT ESPAÑA, SL,
at Avda de Europa 19, Edificio 1, 1a planta, Pozuela de Alarcón, 28224, Madrid,
Spain; and THQ ITALY SRL, at
Strada della Ronna 53, 21013 Gallarate (VA), Italy and a legal address at Via
Monte Rosa 91, 20149 Milan, Italy (together and severally: “LICENSEE”).
NINTENDO and LICENSEE agree as follows:

 

1.             RECITALS

 

1.1           NINTENDO designs, develops,
manufactures, markets and sells advanced design, high-quality video game
systems, including the Nintendo DS system.

 

1.2           LICENSEE desires use of the highly
proprietary programming specifications, development tools, unique and valuable
security technology, trademarks, copyrights and other valuable intellectual
property rights of NINTENDO, which rights are only available for use under the
terms of a license agreement, to develop, have developed, have manufactured,
advertise, market and sell video game software for play on the Nintendo DS
system.

 

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

 

1.4           By a prior agreement between the
parties effective July 20, 2005 (hereinafter the “Initial Agreement”),
NINTENDO granted to LICENSEE the right to develop video game software
compatible with the DS System, embodying and using the Licensed Intellectual
Properties. The Initial Agreement expired on July 20, 2008. However, the
parties have continued to operate under the terms of the Initial Agreement. The
parties desire to enter into a renewal agreement (hereinafter the “Agreement”)
effective as of the expiration date of the Initial Agreement, to continue the
relationship between the parties without interruption, with the Agreement
consisting of the terms and conditions set forth herein.

 

2.             DEFINITIONS

 

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

 

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

 

2.3           “Confidential Information” means the
information described in Section 8.1.

 

PAGE 1 OF 20

 

 

CONFIDENTIAL

 

2.4           “Development Tools” means the
development kits, programming tools, emulators and other materials of NINTENDO,
or third parties authorized by NINTENDO, that may be used in the development of
Games under this Agreement.

 

2.5           “Effective Date” means the expiration
date of the Initial Agreement, or July 20, 2008.

 

2.6           “Finished Product(s)” means the fully
assembled Game Card with a Game Card label, Printed Materials, and packed in a
plastic storage case or other form of protective packaging.

 

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

 

2.8           “Game(s)” means any interactive
programs (including source and object/binary code) developed to be compatible
with the Nintendo DS system.

 

2.9           “Guidelines” means the then-current
version of the “Nintendo DS Guidelines”; “Licensee Packaging Guidelines”,
pertaining to the layout, trademark usage and requirements of the Game Card
label, instruction manual and Game Card packaging; “Marketing Materials”;
“Nintendo DS Development Manual”; “Trademark Guidelines”; “Guidelines on
Ethical Content”; “Nintendo DS Software Submission Requirements”, together with
other guidelines that NINTENDO may provide to LICENSEE from time to time. The
Guidelines on Ethical Content are attached as Annex A, and the remainder of the
Guidelines have been provided to LICENSEE independent of this Agreement. The
Guidelines may be changed or updated from time to time without notice (provided
such changes or updates shall be delivered to LICENSEE as soon as possible
thereafter), and the versions current from time to time will be available on
request from NINTENDO.

 

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

 

2.11         “Intellectual Property Rights” means
individually, collectively or in any combination, Proprietary Rights owned,
licensed or otherwise held by NINTENDO that are associated with the
development, manufacturing, advertising, marketing or sale of the Licensed
Products, including, without limitation, (a) registered and unregistered
trademarks and trademark applications used in connection with Games for the
Nintendo DS system including “NintendoTM”,
“Nintendo DSTM”, and the “Official Nintendo Seal of
QualityTM”, (b) select trade dress associated
with the Nintendo DS system and licensed Games for play thereon,
(c) Proprietary Rights in the Security Technology incorporated into the
Game Cards, (d) rights in the Development Tools for use in developing the
Games, excluding, however, rights to use, incorporate or duplicate select
libraries, protocols and/or sound or graphic files associated with the
Development Tools which belong to any third party and for which no additional
licenses or consents are required, (e) patents, patent applications,
utility models, design registrations, or copyrights which may be associated
with the Game Cards, (f) copyrights in the Guidelines, and (g) other
Proprietary Rights of NINTENDO in the Confidential Information.

 

2.12         “Licensed Products” means (a) Bulk
Goods, and/or (b) Finished Products after being assembled and packaged
with the Printed Materials in accordance with the Guidelines.

 

2.13         “Marketing Materials” means marketing,
advertising or promotional materials developed by or for LICENSEE (or subject to
LICENSEE’s approval) that promote the sale of the Licensed Products, including,
but not limited to, television, radio and on-line advertising, point-of-sale
materials (e.g. posters, counter-cards), package advertising, print media and
all audio or video content other than the Game that is to be included on the
Game Card.

 

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

 

2.15 “NOA” means
NINTENDO’s subsidiary, Nintendo of America Inc., of Redmond, Washington, USA.

 

PAGE 2 OF 20

 

 

CONFIDENTIAL

 

2.16         “Notice” means any notice permitted or
required under this Agreement. All Notices shall be sufficiently given when
(a) personally served or delivered, or (b) transmitted by facsimile,
with an original sent concurrently by mail, or (c) deposited, carriage
prepaid, with a guaranteed air courier service, in each case addressed as
stated herein, or addressed to such other person or address either party may
designate in a Notice, or (d) transmitted by e-mail with an express
written acknowledgement of receipt sent personally by or on behalf of the
recipient (which shall include any automated reply). Notice shall be deemed
effective upon the earlier of actual receipt or two (2) business days
after transmittal, provided, however, any Notice received after the recipient’s
normal business hours will be deemed received on the next business day.

 

2.17         “Price Schedule” means the then-current
version of NINTENDO’s schedule of purchase prices and minimum order quantities
for the Finished Products and the Bulk Goods. The Price Schedule has been
provided to LICENSEE independent of this Agreement and may be changed or
updated from time to time without notice (provided such changes or updates
shall be delivered to LICENSEE as soon as possible thereafter), and the version
current from time to time will be available on request from NINTENDO.

 

2.18         “Printed Materials” means the Game Card
label and title page, user instruction booklet, poster, warranty card and
LICENSEE inserts incorporating the Artwork, together with a precautions booklet
and optional printed materials.

 

2.19         “Proprietary Rights” means any rights
or applications for rights to the extent recognized anywhere in the Territory
relating to the Nintendo DS System, and owned, licensed or otherwise held in
patents, patent applications, trademarks, service marks, copyrights and
neighboring rights, semiconductor chip layouts or masks, trade secrets, utility
models, registered design rights, unregistered design rights, database rights,
get up, trade dress, moral rights and publicity rights, together with all
inventions, discoveries, ideas, know-how, data, information, processes, methods,
procedures, formulas, drawings and designs, computer programs, software source
code and object code, and all amendments, modifications, and improvements
thereto for which such patents, patent applications, trademarks, service marks,
copyrights and neighboring rights, semiconductor chip layouts or masks, trade
secrets, utility models, registered design rights, unregistered design rights,
database rights, get up, trade dress, moral rights or publicity rights may
exist or may be sought and obtained in the future.

 

2.20         “Reverse Engineer(ing)” means, without
limitation, _ **** ____________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

_______________________________________________________________.

 

2.21         “Security Technology” means the highly
proprietary security features of the Nintendo DS system and the Licensed Products
to minimize the risk of unlawful copying and other unauthorized or unsafe
usage, including, without limitation, any security signature, bios, data
scrambling, password, hardware security apparatus, watermark, hologram,
encryption, digital rights management system, copyright management information
system, proprietary manufacturing process or any feature which obstructs
piracy, limits unlawful, unsafe, or unauthorized use, or facilitates or limits
compatibility with other hardware, software, accessories or peripherals with
respect to a video game system other than the Nintendo DS system, or limits
distribution outside of the Territory.

 

2.22         “Sole License” means a license under
which only the licensor and a single licensee can utilize the subject matter of
the license.

 

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

 

2.24         “Territory” means any and all countries
within the European Economic Area; namely Albania, Austria, Belgium, Bosnia,
Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France,
Germany, Greece, Herzegovina, Hungary, Iceland, Ireland, Italy, Latvia,
Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Montenegro, the
Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia,
Spain, Sweden, and the United Kingdom.

 

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

 

PAGE 3 OF 20

 

 

CONFIDENTIAL

 

The Territory also
includes Australia, New Zealand, Russia, South Africa, Switzerland and Turkey.
NINTENDO may add additional countries to the Territory upon written notice to
LICENSEE.

 

2.25         “TM” means trade mark of NINTENDO,
whether registered or not.

 

3.             GRANT
OF LICENSE; LICENSEE RESTRICTIONS

 

3.1           Limited License Grant. For the
Term and for the Territory, NINTENDO grants to LICENSEE a nonexclusive,
nontransferable, limited license to use the Intellectual Property Rights for
the purpose of and to the extent necessary, to develop (or have developed on
LICENSEE’s behalf) Games for manufacture, advertising, marketing and sale by
LICENSEE as Licensed Products, subject to the terms and conditions of this
Agreement. _**** ______________

 

3.2           LICENSEE Acknowledgement.
LICENSEE’s use of the Intellectual Property Rights shall not create any right,
title or interest of LICENSEE therein. LICENSEE is authorized and permitted to
develop Games, and have manufactured, advertise, market and sell Licensed
Products, only for play on the Nintendo DS system and only in accordance with
this Agreement. In the event that LICENSEE challenges NINTENDO’s ownership or
the validity of the Intellectual Property Rights, NINTENDO may terminate this
Agreement without any notice or procedure. Nothing contained herein shall be
deemed to grant NINTENDO any right, title or interest in and to those portions
of the Licensed Products that do not consist of NINTENDO’s Intellectual
Property Rights, Proprietary Rights or Confidential Information associated with
the Nintendo DS system.

 

3.3           Restrictions on License Grant.
NINTENDO does not guarantee that the hardware for the Nintendo DS system is
distributed throughout the Territory. Moreover, the present limited license to
LICENSEE does not extend to the use of the Intellectual Property Rights for the
following purposes:

 

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

 

(b)           authorize or permit any online activities
involving a Game, including, without limitation, multi-player, peer-to-peer or
online play, except as expressly permitted by NINTENDO in writing;

 

(c)           modify, install or operate a Game on
any server or computing device for the purpose of or resulting in the rental,
lease, loan or other grant of remote access to the Game;

 

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

 

(e)           emulate
any past, current or future NINTENDO brand video game system, or any portion
thereof, in software or hardware or any combination thereof;

 

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

 

(g)           design, implement or undertake any
process, procedure, program or act designed to disable, obstruct, circumvent or
otherwise diminish the effectiveness or operation of the Security Technology;

 

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

  

 

PAGE 4 OF 20

 

CONFIDENTIAL

 

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

 

(i)            manufacture or reproduce a Game
developed under this Agreement, except through NINTENDO; or

 

(j)            Reverse Engineer or assist in
Reverse Engineering all or any part of the Nintendo DS system, including the
hardware, software (embedded or not), the Development Tools or the Security
Technology, except as specifically permitted under the laws and regulations
applicable in the Territory.

 

Nothing contained in this
Section 3.3 shall be deemed to prevent LICENSEE from developing a game or
games for other video game platforms, where such game or games have a similar
audiovisual display, look, feel, or game elements as found in the
Game(s) developed by LICENSEE under this Agreement; provided, however,
that LICENSEE hereby acknowledges that any use of NINTENDO’s Intellectual
Property Rights, Proprietary Rights, and/or Confidential Information in such
other game or games without the prior written consent of NINTENDO would be
deemed to be a breach of this Agreement and an infringement of Nintendo’s
Intellectual Property Rights.

 

3.4           Development Tools. NINTENDO
and NOA may lease, loan or sell Development Tools, including any improvements
made by NINTENDO or NOA from time to time, to LICENSEE to assist in the
development of Games under this Agreement on such terms as may be agreed
between the parties. Ownership and use of any Development Tools, whether
provided by NINTENDO or NOA, prior to or during the Term hereof, shall be
subject to the terms of this Agreement and any separate license or purchase
agreement required by NINTENDO or any third-party licensing the Development
Tools. LICENSEE acknowledges the respective interests of NINTENDO, and in the
case of third- party Development Tools, such third parties, in and to the
Proprietary Rights associated with the Development Tools. LICENSEE’s use of the
Development Tools shall not create any right, title or interest of LICENSEE
therein. Any license to LICENSEE to use the Development Tools does not extend
to: (a) use of the Development Tools for any purpose except the design and
development of Games under this Agreement, (b) reproduction or creation of
derivatives of the Development Tools, except in association with the
development of Games under this Agreement, (c) Reverse Engineering of the
Development Tools (except as specifically permitted under the laws and/or
regulations applicable in the Territory), or (d) without NINTENDO’s prior
written approval, selling, leasing, assigning, lending, licensing, encumbering
or otherwise transferring the Development Tools. Any tools developed or derived
by LICENSEE as a result of a study of the performance, design or operation of
any NINTENDO Development Tools shall be considered a derivative work of the Intellectual
Property Rights, but may be retained and utilized by LICENSEE in connection
with this Agreement. Unless LICENSEE can demonstrate that such derivative work
has one or more applications that are independent of and separate from the
Intellectual Property Rights (“Independent Applications”), it shall be deemed
to have granted NOA and NINTENDO an indefinite, worldwide, royalty-free,
transferable and Sole License (including the right to sub-license) to such
derivative work. To the extent that LICENSEE can demonstrate one or more
Independent Applications, LICENSEE shall be deemed to have granted to NOA and
NINTENDO a royalty-free and transferable nonexclusive License (including the
right to sub-license) in relation to such Independent Applications for the
Term. Any tools developed or derived by LICENSEE as a result of a study of the
performance, design or operation of any third-party Development Tools shall be
governed by the terms of the license agreement applicable to such Development
Tools. Notwithstanding any referral or information provided or posted regarding
third-party Development Tools, NINTENDO and NOA make no representations or
warranties with regard to any such third-party Development Tools. LICENSEE
acquires and utilizes third-party Development Tools at its own risk.

 

3.5           In-Game Advertising. LICENSEE
shall not include advertising or produce placements for products or services of
LICENSEE or third parties, whether in the Game, as separate content (e.g., a
trailer), or in the Printed Materials, without NINTENDO’s prior written
consent, which consent shall not be unreasonably withheld or delayed.

 

PAGE 5 OF 20

 

CONFIDENTIAL

 

4.             SUBMISSION OF GAME AND ARTWORK
FOR APPROVAL

 

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

 

4.2:          Third Party Developers.
LICENSEE shall not disclose the Confidential Information (as defined in Section 8
below), the Guidelines or the Intellectual Property Rights to any Independent
Contractor, nor permit any Independent Contractor to perform or assist in
development work for a Game that requires use of the Confidential Information,
unless and until such Independent Contractor has been approved by NINTENDO and
has executed a written confidentiality agreement with NINTENDO (or with
LICENSEE as provided in Section 8) relating to the Nintendo DS system.
Upon request by LICENSEE, NINTENDO shall, within a reasonable period of time,
inform LICENSEE whether any such third party is approved by NINTENDO.

 

4.3           Delivery of Completed Game.
Upon completion of a Game, LICENSEE shall deliver a prototype of the Game to
NINTENDO in a format specified in the Guidelines. Delivery shall be made in
accordance with the methods set forth in the Guidelines. Each submission shall
include such other information or documentation deemed necessary by NINTENDO,
including, without limitation, a complete set of written user instructions, a
complete description of any security holes, backdoors, time bombs, cheats, “Easter
eggs” or other hidden features or characters in the Game (of which LICENSEE is
aware) and a complete screen text script. NINTENDO shall promptly evaluate the
Game with regard to its technical compatibility with and error-free operation
on the Nintendo DS system. LICENSEE must establish that the Game and any other
content included on the Game Card complies with the guidelines of the Pan
European Game Information System (PEGI), the Unterhaltungssoftware
Selbstkontrolle (USK), the Office of Film and Literature Classification (OFLC),
or any other applicable national or regional game rating system that NINTENDO
may accept, as applicable. LICENSEE shall be responsible for the submission of
the Game to the appropriate national or regional game rating organization and
shall provide NINTENDO with a statement or certificate in writing from the
relevant organization, confirming the rating for the Game. Where any such game
has been rated as being suitable only for players aged 18 and over (or an
equivalent rating), LICENSEE must submit a certificate in writing that confirms
the game is rated as no higher than “M” (Mature) by the Entertainment Software
Rating Board (ESRB) of the U.S. In addition, NINTENDO reserves the right to
require LICENSEE to provide NINTENDO with such additional written indemnification
for damages, claims, loss, liability, fine or penalty resulting from the
marketing, distribution or sale of a Game with such an age rating, as NINTENDO,
in its sole discretion, may request. If any such age rating is subsequently
changed by the relevant organization, LICENSEE shall inform NINTENDO forthwith
in writing of that fact and LICENSEE shall then comply with the above
provisions in relation to such new age rating.

 

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

 

4.5           Submission and Approval of Artwork.
Prior to submitting a completed Game to NINTENDO under Section 4.3,
LICENSEE shall prepare and submit to NINTENDO all Artwork for the proposed
Licensed Product. Within ten (10) business days of receipt, NINTENDO shall
approve or disapprove the Artwork in writing, which may include e-mail. If any
Artwork is disapproved, NINTENDO shall specify in writing the reasons for such
disapproval and state what corrections or improvements are necessary to obtain
approval from NINTENDO. After making the necessary corrections or improvements,
LICENSEE shall submit revised Artwork to NINTENDO for approval. NINTENDO shall
not unreasonably withhold or delay its approval of any Artwork. The approval of
the Artwork by NINTENDO shall not relieve LICENSEE of its sole responsibility
for the development and

 

PAGE 6 OF 20

 

CONFIDENTIAL

 

quality of the Artwork or
in any way create any warranty for the Artwork or any Licensed Product by
NINTENDO. All Artwork must be approved prior to submitting an order for the
Bulk Goods or Finished Products, and LICENSEE shall not produce any Printed
Materials for commercial distribution until such Artwork or Finished Products
has been approved by NINTENDO.

 

4.6           Artwork for Bulk Goods. If
LICENSEE intends to submit an order for Bulk Goods, all Artwork and other
materials to be included with the Licensed Product shall be submitted to
NINTENDO in accordance with Section 4.5 herein. No Printed Materials shall
be produced by LICENSEE until such Artwork has been approved by NINTENDO under Section 4.5
herein.

 

5.             ORDER PROCESS, PURCHASE PRICE,
PAYMENT AND DELIVERY

 

5.1           Submission of Orders by LICENSEE.
After receipt of NINTENDO’s approval for a Game, LICENSEE may at any time
submit written purchase orders to NINTENDO for any approved Licensed Product
title. The purchase order shall specify whether it is for Finished Products or
Bulk Goods. The terms and conditions of this Agreement shall take precedence
over any contrary or additional terms of such purchase order or any other
written documentation or verbal instructions from LICENSEE. All orders shall be
subject to acceptance by NINTENDO or its designee.

 

5.2           Purchase Price and Minimum Order
Quantities. The purchase price and minimum order quantities for Finished
Products and Bulk Goods shall be set forth in NINTENDO’s then current Price
Schedule. Unless otherwise specifically provided for, the purchase price
includes the cost of manufacturing the Licensed Products. No taxes, duties,
import fees or other tariffs related to the development, manufacture, import,
marketing or sale of the Licensed Products except for taxes imposed on NINTENDO’s
income are included in the purchase price and all such taxes are the
responsibility of LICENSEE. The Price Schedule is subject to change by NINTENDO
at any time without Notice, provided, however, that any price increase shall be
applicable only to purchase orders submitted, paid for, and accepted by
NINTENDO after the date of the price increase, and provided that such changes
shall be delivered to LICENSEE as soon as possible thereafter.

 

5.3           Payment. Upon placement of an
order with NINTENDO, LICENSEE shall pay the full purchase price to NINTENDO
either (a) by tender of an irrevocable letter of credit in favor of
NINTENDO (or its designee) and payable at sight, issued by a bank acceptable to
NINTENDO and confirmed, if requested by NINTENDO, at LICENSEE’s expense, or (b) in
cash, by wire transfer to an account designated by NINTENDO. All letters of
credit shall comply with NINTENDO’s written instructions and all associated
banking charges shall be for LICENSEE’s account.

 

5.4           Delivery of Licensed Products.
NINTENDO shall deliver the Finished Products and Bulk Goods ordered by LICENSEE
to LICENSEE FOB Japan, CIP European Destination or ex-warehouse Grossostheim,
per the terms in the Price Schedule. Also per the Price Schedule,
______________________ ****______________________. Upon mutual consent of
NINTENDO and LICENSEE, orders may be delivered in partial shipments with a
minimum shipment quantity as specified in the Price Schedule. Such orders shall
be delivered only to countries within the Territory. Title to the Licensed
Products shall vest in accordance with the terms of the applicable letter of
credit or, in the absence thereof, per Incoterms 2000.

 

6.             MANUFACTURE OF THE LICENSED
PRODUCT

 

6.1           Manufacturing. Given NINTENDO’s
ownership of the valuable Intellectual Property Rights, NINTENDO shall be the
exclusive source for the manufacture of the Game Cards, and shall control all
aspects of the manufacturing process, including the selection of the locations
and specifications for any manufacturing facilities, determination of materials
and processes, appointment of suppliers and subcontractors, and management of
all work-in-progress.

 

6.2           Manufacture of the Licensed
Products. Upon acceptance by NINTENDO of a purchase order from LICENSEE for
an approved Licensed Product title and receipt of payment as provided for under
Section 5.3 herein, NINTENDO (through its suppliers and subcontractors)
shall arrange for the manufacture of Finished Product or Bulk Goods, as specified
in LICENSEE’s purchase order. In this regard, LICENSEE shall submit to NINTENDO
certain technical information as set forth

 

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

 

PAGE 7 OF 20

 

CONFIDENTIAL

 

in a questionnaire
entitled “Software Submission Requirements” which has been provided to LICENSEE
by NINTENDO.

 

6.3           Security Features. The final
release version of the Game, Game Cards and Printed Materials shall include
such Security Technology as NINTENDO, in its sole discretion, deems necessary
or appropriate to (a) reduce the risk of unlawful copying or other
unlawful, unsafe or unauthorized uses, (b) protect the Proprietary Rights
of NINTENDO and of LICENSEE, (c) promote consumer confidence, and (d) increase
the quality, reliability or operation of the Nintendo DS system.

 

6.4           Printed Materials for Bulk Goods.
Upon delivery to LICENSEE of Bulk Goods, LICENSEE shall assemble the Printed
Materials and Bulk Goods into the Licensed Products in accordance with the
Guidelines. No other materials, items, products or packaging may be included or
assembled with the Bulk Goods without NINTENDO’s prior written consent. Bulk
Goods may be sold or distributed by LICENSEE only when fully assembled in
accordance with the Guidelines.

 

6.5           Sample Printed Materials and Bulk
Goods. Within a reasonable period of time after LICENSEE’s assembly of an
initial order for Bulk Goods title, LICENSEE shall provide NINTENDO with (a) one
(1) sample of the fully assembled, Licensed Product, and (b) five (5) samples
of the LICENSEE-produced Printed Materials for such Licensed Product.

 

6.6           Retention of Sample Licensed
Products by NINTENDO. NINTENDO may, at its own expense, manufacture
reasonable quantities of the Game Cards or the Licensed Products, and make a
reasonable number of copies of the Printed Materials, not to exceed        ****      
copies, to be used for archival purposes, legal proceedings against infringers
of the Intellectual Property Rights, and for other lawful purposes (but not for
resale).

 

7.             MARKETING AND ADVERTISING

 

7.1           Approval of Marketing Materials.
LICENSEE represents and warrants that the Printed Materials and the Marketing
Materials shall be of high quality and comply with (a) the Guidelines, (b) to
the best of LICENSEE’s knowledge, the guidelines of the PEGI, and (c) all
applicable laws, regulations and official codes of practice in those
jurisdictions in the Territory where they will be used or distributed. All
LICENSEE controlled websites featuring the Games shall adopt a privacy policy
that complies with all applicable local laws, regulations and official
guidelines. To protect NINTENDO’s valuable Intellectual Property Rights, to
prevent the dilution of NINTENDO’s trade marks, and to avoid use of the
licensed Intellectual Property Rights giving rise to any implication of
NINTENDO’s sponsorship, association, approval or endorsement where this is not
the case, prior to actual use or distribution, LICENSEE shall submit to
NINTENDO for review samples of all proposed Marketing Materials. NINTENDO
shall, within ten (10) business days of receipt, approve or disapprove the
quality of such samples. If any of the samples are disapproved, NINTENDO shall
specify the reasons for such disapproval in writing, which may include by
e-mail, and state what corrections and/or improvements are necessary to receive
approval. After making the necessary corrections and/or improvements, LICENSEE
shall submit revised samples for approval by NINTENDO. No Marketing Materials
shall be used or distributed by LICENSEE without NINTENDO’s prior written
approval. NINTENDO shall not unreasonably withhold or delay its approval of any
proposed Marketing Materials.

 

7.2           No Bundling. To protect
NINTENDO’s valuable Intellectual Property Rights, to prevent the dilution of
NINTENDO’s trademarks, and to avoid use of the licensed Intellectual Property
Rights giving rise to any implication of NINTENDO’s sponsorship, association,
approval or endorsement where this is not the case, LICENSEE shall not, without
NINTENDO’s prior written approval, market or distribute any Licensed Products
that have been bundled with (a) any peripheral designed for use with the
Nintendo DS system that has not been licensed or approved in writing by
NINTENDO, provided that LICENSEE is responsible for ensuring that any such
peripheral shall comply with all applicable laws and regulations in the
Territory, or (b) any other product or service where NINTENDO’s
sponsorship, association, approval or endorsement might be suggested by bundling
the products or services.

 

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

 

PAGE 8 OF 20

 

CONFIDENTIAL

 

7.3           Warranty and Repair. LICENSEE
shall provide the original consumer with a minimum ninety (90) day (or such
longer minimum period as may be required by applicable law) limited warranty on
all Licensed Products, provided that the exact nature of such warranties and
services shall be determined by LICENSEE in its discretion and further provided
that such warranties and services comply with the requirements of the laws and
regulations applicable in the Territory. LICENSEE shall also provide reasonable
product service, including out-of-warranty service, for all Licensed Products.
LICENSEE shall make such warranty and repair information available to consumers
as required by applicable law.

 

7.4           Business Facilities. LICENSEE
agrees to develop and maintain sufficient customer service, either directly or
through a third party, to adequately support the Licensed Products.

 

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

 

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

 

7.7           NINTENDO Promotional Materials,
Publications and Events. With a view to improving the competitiveness of
the video game products consisting of Nintendo video game systems and services
and compatible software published by LICENSEE and others, at its option and
expense, NINTENDO may (a) insert in the Printed Materials for the Licensed
Products promotional materials concerning publications and promotions for such
video game products, provided that LICENSEE shall not be required to include
any such materials where the purpose of such materials is to promote a product(s) directly
competitive with LICENSEE’s products; (b) utilize screen shots, Artwork
and information regarding the Licensed Products in all NINTENDO-published or
officially licensed magazines, official NINTENDO-sponsored web-sites, or other
advertising, promotional or marketing media that promotes such video game
products, services or programs, and (c) exercise public performance rights
in the Games and use related trademarks and Artwork in connection with
NINTENDO-sponsored contests, tours, conventions, trade shows, press briefings
and similar events that promote such video game products subject to the
prior written approval of LICENSEE.

 

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

 

8.             CONFIDENTIAL INFORMATION

 

8.1           Definition. “Confidential
Information” means information provided to LICENSEE by NINTENDO or any third
party working with NINTENDO or NOA relating to the hardware and software for
the Nintendo DS system or the Development Tools, including, but not limited to,
(a) all current or future information, know-how, techniques, methods,
tools, emulator hardware or software, software development specifications,
proprietary manufacturing processes and/or trade secrets, (b) any
information on inventions, patents or patent applications, (c) any
business, legal, marketing, pricing or sales data or information, and (d) any
other information or data relating to development, design, operation,
manufacturing, marketing or sales. Confidential Information shall include all
confidential information disclosed, whether in writing, orally, visually, or in
the form of drawings, technical specifications, software, samples, pictures,
models, recordings, or other tangible items which contain or manifest, in any
form, the above listed information. Confidential Information shall not include (i) data
and information that were in the public domain prior to LICENSEE’s receipt of
the same hereunder, or that subsequently becomes part of the public domain by
publication or otherwise, except by the wrongful act or omission of LICENSEE or
any third party, (ii) data and information that LICENSEE can demonstrate,
through written records kept in the ordinary course of business, were in

 

PAGE 9 OF 20

 

CONFIDENTIAL

 

its possession without
restriction on use or disclosure, prior to its receipt of the same hereunder
and were not acquired directly or indirectly from NINTENDO or NOA under an
obligation of confidentiality that is still in force, and (iii) data and
information that LICENSEE can show were received by it from a third party who
did not acquire the same directly or indirectly from NINTENDO or NOA and to
whom LICENSEE has no obligation of confidentiality.

 

8.2           Disclosures Required by Law.
LICENSEE shall be permitted to disclose Confidential Information if such
disclosure is required by an authorized governmental or judicial entity,
provided that LICENSEE shall notify NINTENDO at least ten (10) days prior
to such disclosure, or such lesser period as may be needed to comply with such
requirement. LICENSEE shall use its best commercial efforts to limit the
disclosure to the greatest extent possible, consistent with LICENSEE’s legal
obligations, and if required by NINTENDO, shall cooperate in the preparation
and entry of appropriate court orders limiting the persons to whom Confidential
Information may be disclosed and the extent of disclosure of such Confidential
Information.

 

8.3           Disclosure and Use. NINTENDO
may provide LICENSEE with highly confidential development information,
Guidelines, Development Tools, systems, specifications and related resources
and information constituting and incorporating the Confidential Information to
assist LICENSEE in the development of Games. LICENSEE agrees to maintain all
Confidential Information as strictly confidential and to use such Confidential
Information only in accordance with this Agreement. LICENSEE shall limit access
to the Confidential Information to LICENSEE’s employees having a strict need to
know, and shall advise such individuals of their obligation of confidentiality
as provided herein. LICENSEE shall require each such individual to retain in
confidence the Confidential Information pursuant to a written non-disclosure
agreement with LICENSEE. LICENSEE shall use its best efforts to ensure that
individuals who are permitted hereunder to work with or otherwise have access
to Confidential Information shall not disclose or make any unauthorized use of
the Confidential Information.

 

8.4           No Disclosure to Independent
Contractors. LICENSEE shall not disclose the Confidential Information,
including without limitation the Guidelines and Intellectual Property Rights,
to any Independent Contractor, nor permit any Independent Contractor to perform
or assist in development work for a Game that requires use of the Confidential
Information, without the prior written consent of NINTENDO. Any Independent
Contractor seeking access to Confidential Information shall be required to
enter into a written non-disclosure agreement with NINTENDO or NOA that is no
less restrictive than the terms of this Section 8, prior to receiving any
access to or disclosure of the Confidential Information from either LICENSEE or
NINTENDO.

 

At
LICENSEE’s option, the written non-disclosure agreement may be with LICENSEE
rather than NINTENDO or NOA, in which case the form and substance of the non-disclosure
agreement must be acceptable to NINTENDO. Upon NINTENDO or NOA’s reasonable
written request, LICENSEE shall provide to NINTENDO a listing of all
Independent Contractors who have received or been granted access to
Confidential Information along with copies of the applicable written
nondisclosure agreements. In addition, LICENSEE shall take all reasonable
measures to ensure that its Independent Contractors fulfill the requirements of
the applicable written non-disclosure agreements.

 

LICENSEE shall use its
best commercial efforts to ensure that its employees working with or otherwise
having access to Confidential Information shall not disclose or make
unauthorised use of the Confidential Information._**** _____________________

____________________________________________________________________________________________________________

_____________________________

 

8.5           Agreement Confidentiality.
LICENSEE agrees that the terms, conditions and contents of this Agreement shall
be treated as Confidential Information. Any public announcement or press
release regarding this Agreement or the release dates for Games developed by
LICENSEE under this Agreement shall be subject to NINTENDO’s prior written
approval, such approval not to be unreasonably delayed or withheld. The parties
may disclose this Agreement (a) to accountants, banks, financing sources,
lawyers, parent companies and related parties under substantially equivalent
confidentiality obligations, (b) in connection with any formal legal
proceeding for the enforcement of this Agreement, (c) as required by the
regulations of the government agencies in the Territory and the United States
that regulate publicly-traded securities, provided that all Confidential

 

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

 

PAGE 10 OF 20

 

CONFIDENTIAL

 

Information shall be
edited from such disclosures to the maximum extent allowed by such government
agencies, (d) in response to lawful process, subject to court order limiting
the persons to whom Confidential Information may be disclosed and the extent of
disclosure of such Confidential Information, approved in advance by NINTENDO,
and (e) to a third party proposing to enter into a business transaction
with LICENSEE or with NINTENDO, but only to the extent reasonably necessary for
carrying out the proposed transaction and only under terms of mutual
confidentiality.

 

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

 

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

 

9.             REPRESENTATIONS AND WARRANTIES

 

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

 

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

 

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

 

(c)           excluding the Intellectual Property
Rights, LICENSEE is either (i) the sole owner of all right, title and
interest in and to the trademarks, copyrights and all other Proprietary Rights
incorporated into the Game or the Artwork used in association with the
development, advertising, marketing and sale of the Licensed Products or the
Marketing Materials, or (ii) the holder of such rights, including
trademarks, copyrights and all other Proprietary Rights which belong to any
third party but have been licensed from such third party or an agent or
licensee of a third party such as a collecting society, by LICENSEE, as are
necessary for the development, advertising, marketing or sale of the Licensed
Products and the Marketing Materials under this Agreement.

 

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

 

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

 

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

 

9.3           INTELLECTUAL PROPERTY RIGHTS
DISCLAIMER BY NINTENDO. NINTENDO (ON ITS OWN BEHALF AND ON BEHALF OF ITS
AFFILIATES, SUBSIDIARIES, LICENSORS, SUPPLIERS AND SUBCONTRACTORS), EXPRESSLY
DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES CONCERNING THE SCOPE OR VALIDITY
OF THE INTELLECTUAL PROPERTY RIGHTS. NINTENDO (ON ITS OWN BEHALF AND ON BEHALF
OF ITS AFFILIATES, SUBSIDIARIES, LICENSORS, SUPPLIERS AND SUBCONTRACTORS),
EXPRESSLY DISCLAIMS WARRANTY THAT THE DESIGN, DEVELOPMENT, ADVERTISING,
MARKETING OR SALE OF THE LICENSED PRODUCTS OR THE USE OF THE INTELLECTUAL
PROPERTY RIGHTS BY LICENSEE WILL NOT INFRINGE UPON ANY PATENT, COPYRIGHT,
TRADEMARK OR OTHER PROPRIETARY RIGHTS OF A THIRD PARTY. TO THE MAXIMUM EXTENT
LEGALLY PERMISSIBLE, ANY WARRANTY, CONDITION OR TERM THAT MAY BE PROVIDED
IN ANY APPLICABLE PROVISION OF ANY LAW OR REGULATION IN THE TERRITORY GOVERNING

 

PAGE 11 OF 20

 

CONFIDENTIAL

 

COMMERCIAL ACTIVITY, OR
ANY OTHER COMPARABLE LAW OR REGULATION IS EXPRESSLY DISCLAIMED. LICENSEE HEREBY
ASSUMES THE RISK OF INFRINGEMENT.

 

9.4           GENERAL DISCLAIMER BY NINTENDO.
NINTENDO (ON ITS OWN BEHALF AND ON BEHALF OF ITS AFFILIATES, SUBSIDIARIES,
LICENSORS, SUPPLIERS AND SUBCONTRACTORS) EXPRESSLY DISCLAIMS ANY AND ALL
WARRANTIES WITH RESPECT TO THE LICENSED PRODUCTS, INCLUDING, WITHOUT
LIMITATION, THE SECURITY TECHNOLOGY. LICENSEE PURCHASES AND ACCEPTS ALL LICENSED
PRODUCTS ON AN “AS IS” AND “WHERE IS” BASIS. NINTENDO (ON ITS OWN BEHALF AND ON
BEHALF OF ITS AFFILIATES, SUBSIDIARIES, LICENSORS, SUPPLIERS AND
SUBCONTRACTORS) EXPRESSLY DISCLAIMS ALL WARRANTIES, CONDITIONS OR OTHER TERMS
OF ANY KIND UNDER THE APPLICABLE LAWS OF ANY COUNTRY, EXPRESS OR IMPLIED,
INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A GENERAL OR
PARTICULAR PURPOSE.

 

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

 

10.          INDEMNIFICATION

 

10.1         Claim. “Claim” means any and all
third-party claims, demands, actions, suits, proceedings, losses, liabilities,
damages, expenses and costs, including, without limitation, reasonable
attorneys’ fees and actual costs, and any actual expenses incurred in the
settlement or avoidance of any such claim. “Claim” shall specifically include
civil, criminal, and regulatory matters, and those brought by any third party
(including governmental authorities or agencies) under any national,
subnational, or multinational law or regulation, or the rules of any
self-regulatory body (e.g., PEGI).

 

10.2         LICENSEE’s Indemnification.            LICENSEE shall indemnify and hold
harmless NINTENDO (and any of its affiliates, subsidiaries, licensors,
suppliers, officers, directors, employees or agents) from any Claims which are
alleged to result from or be in connection with:

 

(a)           a material breach by LICENSEE of any
of the provisions in this Agreement,

 

(b)           any infringement of a third party’s
Proprietary Rights as a result of the design, development, advertising,
marketing, sale or use of any aspect of the Licensed Products or the Marketing
Materials, by LICENSEE or on behalf of LICENSEE, excluding claims based solely
upon the Intellectual Property Rights,

 

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

 

(d)           the design, development, advertising,
marketing, sale or use of any aspect of the Licensed Products or the Marketing
Materials.

 

NINTENDO
and LICENSEE shall give prompt Notice to the other of any Claim which is or
which may be subject to indemnification under this Section 10. With
respect to such Claim, LICENSEE, as indemnitor, shall have the right to select
counsel and to control the defense and/or settlement thereof. NINTENDO may, at
its own expense, participate in such action or proceeding with counsel of its
own choice. LICENSEE shall not enter into any settlement of any Claim in which (i) NINTENDO
has been named as a party, or (ii) Intellectual Property Rights have been
asserted

 

PAGE 12 OF 20

 

CONFIDENTIAL

 

without NINTENDO’s prior
written consent, which shall not be unreasonably withheld. NINTENDO shall
provide reasonable assistance to LICENSEE in its defense of any Claim.

 

10.3         LICENSEE’s Insurance. LICENSEE
shall, at its own expense, obtain a comprehensive policy of general liability
insurance (including coverage for advertising injury and product liability
Claims) from an insurance company rated at least B+ by A.M. Best or a
comparable rating by another recognized insurance rating organization. Such
policy of insurance shall be in an amount of not less than the equivalent of ___________****_________
on a per-occurrence basis and shall provide for adequate protection against any
Claims. Such policy shall name NINTENDO as an additional insured and shall
specify that it may not be canceled without thirty (30) days’ prior written
Notice to NINTENDO. A Certificate of Insurance shall be provided to NINTENDO
not later than the date of the initial order of Licensed Products under this
Agreement or within thirty (30) days of the Effective Date of this Agreement,
whatever date occurs later. If LICENSEE fails to provide NINTENDO with such
Certificate of Insurance or fails to maintain such insurance at any time during
the Term and for a period of two (2) years thereafter and fails to cure
within thirty (30) days of written notice, NINTENDO, in its sole discretion
may: (a) terminate this Agreement in accordance with Section 13.2
herein; and/or (b) secure comparable insurance, at LICENSEE’s expense, for
the sole benefit and protection of NINTENDO.

 

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

 

11.          PROTECTION OF PROPRIETARY RIGHTS

 

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

 

11.2         Actions by LICENSEE. LICENSEE,
without the consent of NINTENDO and to the extent permitted by law, may bring
any action or proceeding relating to an infringement or potential infringement
of LICENSEE’s Proprietary Rights in the Licensed Products. LICENSEE shall make
reasonable good-faith efforts to inform NINTENDO of such actions in a timely
manner. LICENSEE will have the right to retain all proceeds it may derive from
any recovery in connection with such actions.

 

11.3         Actions by NINTENDO. NINTENDO,
without the consent of LICENSEE, may bring any action or proceeding relating to
an infringement or potential infringement of NINTENDO’s Intellectual Property Rights
in the Licensed Products. NINTENDO shall, in a timely manner, make reasonable
good-faith efforts to inform LICENSEE of such actions likely to affect LICENSEE’s
rights. NINTENDO will have the right to retain all proceeds it may derive from
any recovery in connection with such actions.

 

12.          ASSIGNMENT

 

12.1         Definition. “Assignment” means
every type and form of assignment, transfer, sale, sublicense, delegation,
encumbrance, pledge and/or hypothecation of LICENSEE’s rights or obligations
under this Agreement, including, but not limited to, (a) a voluntary
assignment, transfer, sale, sublicense, delegation, encumbrance, pledge and/or
hypothecation by LICENSEE of all or any portion of its rights or obligations
under this Agreement, (b) the assignment, transfer, sale, sublicense,
delegation, encumbrance, pledge and/or hypothecation of all or any portion of
LICENSEE’s rights or obligations under this Agreement to or by LICENSEE’s
trustee in bankruptcy, receiver, or other individual or entity appointed to
control or direct the business and affairs of LICENSEE, (c) an involuntary
assignment, transfer, sale, sublicense, delegation, encumbrance, pledge or
hypothecation of all or a portion of LICENSEE’s rights or obligations under
this Agreement, including but not limited

 

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

 

PAGE 13 OF 20

 

CONFIDENTIAL

 

to a foreclosure by a
third party upon assets of LICENSEE, (d) the merger or consolidation of
LICENSEE if LICENSEE is a corporation, and (e) any other means or method
whereby rights or obligations of LICENSEE under this Agreement are sold,
assigned or transferred to another individual or entity for any reason.
Assignment also includes the sale, assignment, transfer or other event
affecting a change in the controlling interest of LICENSEE, whether by sale,
transfer or assignment of shares in LICENSEE, or by sale, transfer or
assignment of partnership interests in LICENSEE, or otherwise.

 

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

 

12.3:        Sale or Transfer of LICENSEE’s
Business. Notwithstanding the rights of NINTENDO specified in Clauses 12.1
and 12.2, NINTENDO will not unreasonably withhold its consent of LICENSEE’s
assignment of the present Agreement in conjunction with the sale or transfer of
LICENSEE’s business related to this Agreement, provided that the
purchaser/transferee does not manufacture, or have manufactured for it, a Competitive
Game System. Such Competitive Game Systems include, but without limitation:
Apple/Bandai Pippin or Atmark, Atari Jaguar, Atari Lynx, 3DO Real, Matsushita
M2, Microsoft Xbox, Microsoft Xbox 360, Phillips CD-I Interactive Player, Sega
Master System, Sega Genesis, Sega CD, Sega Game Gear, Sega CD/X, Sega Katana,
Sega Nomad, Sega 32X, Sega Saturn, Sega Pico, Sony PSX/Playstation, Sony PSX2,
Sony PSP, Sony Personal Digital Assistant, and SNK Neo Geo.

 

Further,
with respect to Related Parties, this Agreement may be sold, assigned,
delegated, or sublicensed upon thirty (30) days’ prior notice to NINTENDO, provided
that any such sale, assignment, delegation or sublicense will require that the
Related Party purchaser, assignor, delegate, or sublicensee, affirmatively
assume all of LICENSEE’s duties, responsibilities, and obligations under this
Agreement. The term “Related Party(ies)” shall mean any person or entity that
directly or indirectly controls, is controlled by, or is under common control
with LICENSEE. For purposes of this definition, “control” (or any variation
thereof) means beneficial ownership of more than fifty percent (50%) of the
equity or other interests entitled to vote for the election of directors or
equivalent governing body of a person or entity. The term “Related Party(ies)”
shall not include any person or entity that directly or indirectly
manufactures, or has manufactured for it, a Competitive Game System.

 

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

 

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

 

13.          TERM AND TERMINATION

 

13.1         Term. This Agreement shall
commence on the Effective Date and continue for the Term, unless earlier
terminated as provided for herein.

PAGE 14 OF 20

 

CONFIDENTIAL

 

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

 

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

 

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

 

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

 

13.6         Breach of NDA or Other NINTENDO License
Agreements. At NINTENDO’s
option, any material breach by LICENSEE of (a) the NDA, or (b) any
other license agreement between NINTENDO and LICENSEE relating to the
development of games for any Nintendo video game system, which breach is not
cured within the time period for cure allowed under the applicable agreement,
(and which shall give NINTENDO reasonable cause to believe that it needs to
terminate this Agreement so as to protect its legitimate business interests),
shall be considered a material breach of this Agreement, entitling NINTENDO to
terminate this Agreement in accordance with Section 13.5 herein.

 

13.7         No Further Use of the Intellectual Property
Rights. Upon expiration or
termination of this Agreement, LICENSEE shall cease all use of the Intellectual
Property Rights for any purpose, except as may be required in connection with
the sale of the Licensed Products authorized under Section 13.4 herein.
LICENSEE shall, within thirty (30) days of expiration or termination,
(a) return to NINTENDO all Development Tools provided to LICENSEE by
NINTENDO, and (b) return to NINTENDO or destroy any and all copies of
materials constituting, relating to, or disclosing any Confidential
Information, including but not limited to Guidelines, writings, drawings,
models, data and tools whether in LICENSEE’s possession or in the possession of
any past or present employee, agent or Independent Contractor who received the
information through LICENSEE. Proof of such return or destruction shall be
certified by an officer of LICENSEE and promptly provided to NINTENDO.

 

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

 

14.          GENERAL PROVISIONS

 

14.1         Compliance with Applicable Laws and
Regulations. LICENSEE shall
at all times comply with applicable laws, regulations and orders in the
countries of the Territory relating to or in any way affecting this Agreement
and LICENSEE’s performance under this Agreement, including, without limitation,
the export laws and regulations of any country with jurisdiction over the
Intellectual Property Rights, Licensed Products, Development Tools and/or
either party. LICENSEE shall not

 

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

 

PAGE 15 OF 20

 

CONFIDENTIAL

 

market,
distribute, or sell the Game and/or Game Cards in any country in the Territory
in which such marketing, distribution or sale would violate any applicable
laws, regulations or orders of such country.

 

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

 

14.3         Records and Audit. During the Term and for a period of two
(2) years thereafter, LICENSEE agrees to keep accurate, complete and
detailed records relating to the use of the Confidential Information, the
Development Tools and the Intellectual Property Rights. Upon reasonable Notice
to LICENSEE (at least 15 days), NINTENDO may, at its expense and subject to a
confidentiality agreement, arrange for a third party audit of LICENSEE’s
records, reports and other information solely related to LICENSEE’s compliance
with this Agreement; provided, however, that NINTENDO shall not, during the
course of the audit, access LICENSEE’s source code, development plans,
marketing plans, internal business plans or other items deemed confidential by
LICENSEE, except to the extent such materials incorporate, disclose or
reference NINTENDO’s Confidential Information or Intellectual Property Rights.

 

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

 

14.5         Survival. In addition to those rights specified elsewhere in this Agreement,
the rights and obligations set forth in Sections 3, 8, 9, 10, 11, 13.4, 13.7,
13.8 and 14 shall survive any expiration or termination of this Agreement to
the degree necessary to permit their complete fulfilment or discharge.

 

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

 

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

 

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

 

14.9         Expansion of Rights. NINTENDO may expand the rights granted to
LICENSEE under this Agreement by providing written notice of such expansion of
rights to LICENSEE and without having to enter into a written addendum to the
present Agreement with LICENSEE.

 

PAGE 16 OF 20

 

CONFIDENTIAL

 

14.10       Delegation of Duties.
NINTENDO, at its option, may delegate its duties under the present Agreement to
a wholly owned subsidiary. To the extent necessary for the parties to carry out
their duties under this Agreement, NINTENDO shall provide notice to LICENSEE of
any such delegation, including to whom at NINTENDO’s wholly owned subsidiary
communications from LICENSEE under this Agreement may be directed. Also in the
event of a delegation by NINTENDO, the provisions of this Agreement shall
continue to govern the relationship between NINTENDO and LICENSEE and shall
govern the relationship between NINTENDO’s subsidiary and LICENSEE, subject to
any amendments or modifications to this Agreement which such subsidiary and
LICENSEE may agree to in their relationship. NINTENDO shall remain obligated
under the present Agreement for the performance of NINTENDO’s duties by
NINTENDO’s subsidiary.

 

14.11       Counterparts and Signature by Facsimile. This Agreement may be signed in counterparts,
which shall together constitute a complete Agreement. A signature transmitted
by facsimile or electronically via computer network shall be considered an
original for purposes of this Agreement.

 

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

 

	
  NCL:

  	
   

  	
  LICENSEE:

  
	
   

  	
   

  	
   

  
	
  NINTENDO
  CO., LTD.

  	
   

  	
  THQ INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Printed:

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THQ
  INTERNATIONAL GmbH (Switzerland)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
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  Date:

  	
   

  
											

 

PAGE 17 OF 20

 

CONFIDENTIAL

 

	
   

  	
  THQ (UK)
  LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Printed:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
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  THQ
  ENTERTAINMENT GmbH (Germany)

  
	
   

  	
   

  
	
   

  	
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  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
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  THQ
  FRANCE SARL

  
	
   

  	
   

  
	
   

  	
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  THQ ASIA
  PACIFIC PTY (LTD)

  	
   

  
	
   

  	
   

  
	
   

  	
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  THQ
  NORDIC ApS

  	
   

  
	
   

  	
   

  
	
   

  	
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PAGE 18 OF 20

 

CONFIDENTIAL

 

	
   

  	
  THQ
  INTERACTIVE ENTERTAINMENT ESPAÑA, SL

  
	
   

  	
   

  
	
   

  	
   

  	
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  THQ ITALY
  SRL

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
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Enclosure:

Annex A - Guidelines on
Ethical Content

 

PAGE 19 OF 20

 

CONFIDENTIAL

 

Annex A

 

Guidelines on Ethical Content

 

The
following Guidelines on Ethical Content are presented for assistance in the
development of Games by defining the types of the theme inconsistent with
NINTENDO’s corporate philosophy. Exceptions may be made when necessary to
maintain the integrity of the Game or the Game’s theme. Games shall not:

 

	
   

  	
  (a)

  	
  contain
  sexually explicit content including but not limited to nudity, rape, sexual
  intercourse and sexual touching; for instance, NINTENDO does not allow
  bare-breasted women in Games, however, mild displays of affection such as
  kissing or hugging are acceptable;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  contain
  language or depictions which specifically denigrate members of any race,
  gender, ethnicity, religion or political group;

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  depict
  gratuitous or excessive blood or violence. NINTENDO does not permit
  depictions of animal cruelty or torture;

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  depict
  verbal or physical spousal or child abuse;

  
	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  permit
  racial, gender, ethnic, religious or political stereotypes; for example,
  religious symbols such as crosses will be acceptable when fitting into the
  theme of the Game and not promoting a specific religious denomination;

  
	
   

  	
   

  	
   

  
	
   

  	
  (f)

  	
  use
  profanity, obscenity or incorporate language or gestures that are offensive
  by prevailing public standards and tastes; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (g)

  	
  promote
  the use of illegal drugs, smoking materials, tobacco and/or alcohol; for
  example NINTENDO does not allow gratuitous beer or cigarette advertisement
  anywhere in a Game; however, Sherlock Holmes smoking a pipe would be
  acceptable as it fits the theme of the Game.

  

 

JEN:hjd

 

PAGE 20 OF 20

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