Document:

Exhibit 10.1

 

AMENDED AND RESTATED INDEMNIFICATION AGREEMENT

 

THIS AMENDED AND RESTATED INDEMNIFICATION AGREEMENT (“Agreement”) is made and entered into as of the [·] day of [·], 2014, by and between Realty Income Corporation, a Maryland corporation (the “Company”), and _____________________, an individual (“Indemnitee”).

 

WHEREAS, highly competent persons have become increasingly reluctant to serve publicly-held corporations as directors, officers or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against the inordinate risks of claims and actions against them arising out of their service to, and activities on behalf of, such corporations; and

 

WHEREAS, the Board of Directors of the Company (the “Board of Directors”) has determined that the increased difficulty in attracting and retaining highly competent persons is detrimental to the best interests of the Company and its stockholders and that the Company should act to assure such individuals that there will be increased certainty of protection against the inordinate risks of claims and actions against them arising out of their service to, and activities on behalf of, the Company; and

 

WHEREAS, the Amended and Restated Bylaws of the Company, as amended and supplemented (the “Bylaws”), require indemnification of the officers and directors of the Company.  Indemnitee may also be entitled to indemnification pursuant to applicable provisions of the Maryland General Corporation Law (the “MGCL”).  The Bylaws and the MGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and directors, officers and other persons with respect to indemnification; and

 

WHEREAS, at the request of the Company, Indemnitee currently serves as [a director] [and] [an officer] of the Company and may, therefore, be subjected to claims, suits or proceedings arising as a result of [his][her] service; and

 

WHEREAS, as an inducement to Indemnitee to serve or continue to serve as [a director] [and] [an officer], the Company has agreed to indemnify and to advance expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings, to the maximum extent permitted by law, including pursuant to that certain Indemnification Agreement, dated as of [May 3, 2011], by and between the Company and Indemnitee (the “Prior Agreement”); and

 

WHEREAS, the parties, by this Agreement, desire to amend and restate the Prior Agreement and set forth their agreement regarding indemnification and advance of expenses; and

 

WHEREAS, this Agreement is a supplement to and in furtherance of the Bylaws and any resolutions adopted pursuant thereto, and this Agreement shall not be deemed a substitute therefor, nor shall this Agreement be deemed to limit, diminish or abrogate any rights of Indemnitee thereunder.

 

 

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

 

Section 1.  Definitions.  For purposes of this Agreement:

 

(a)        The terms “Beneficial Owner” and “Beneficial Ownership” have the meanings set forth in Rule 13d-3 promulgated under the Exchange Act, as in effect on the date hereof.

 

(b)        A “Change in Control” will be deemed to occur upon the earliest to occur after the Effective Date of any of the following events:

 

(i)         Acquisition of Stock by Third Party.  Any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 30% or more of the combined voting power of the Company’s then outstanding securities entitled to vote generally in the election of directors, unless the change in the relative Beneficial Ownership of the Company’s securities by such Person (A) results solely from a reduction in the aggregate number of outstanding securities entitled to vote generally in the election of directors, or (B) was approved in advance by the Continuing Directors and would not constitute a Change in Control under part (iii) of this definition.

 

(ii)        Change in Board of Directors.  Individuals who, as of the Effective Date, constitute the Board of Directors, and any new director whose election by the Board of Directors or nomination for election by the Company’s stockholders was approved by a vote of at least two thirds of the directors then still in office who were directors on the Effective Date or whose nomination for election was previously so approved (collectively, the “Continuing Directors”), cease for any reason to constitute at least a majority of the members of the Board of Directors;

 

(iii)       Corporate Transactions.  The effective date of a reorganization, merger or consolidation of the Company (a “Business Combination”), in each case, unless, immediately following such Business Combination (A) all or substantially all of the persons who were the Beneficial Owners of securities entitled to vote generally in the election of directors immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the combined voting power of the then outstanding securities entitled to vote generally in the election of directors of the company resulting from such Business Combination (including, without limitation, a company which as a result of such Business Combination owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries), (B) no person (excluding any company resulting from such Business Combination) is the Beneficial Owner, directly or indirectly, of 30% or more of the combined voting power of the then outstanding securities entitled to vote generally in the election of directors of such company except to the extent that such ownership existed prior to such Business Combination, and (C) at least a majority of the board of directors of the company resulting from such Business Combination were Continuing Directors at the time of the execution of the initial agreement, or of the action of the Board of Directors, providing for such Business Combination.

 

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(iv)       Liquidation.  The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement or series of agreements for the sale or disposition by the Company of all or substantially all of the Company’s assets (or, if such approval is not required, the decision by the Board of Directors to proceed with such a liquidation, sale, or disposition in one transaction or a series of related transactions).

 

(v)        Other Events.  Any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Exchange Act, whether or not the Company is then subject to such reporting requirement.

 

(c)        “Corporate Status” means the status of a person as a present or former director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company.  As a clarification and without limiting the circumstances in which Indemnitee may be serving at the request of the Company, service by Indemnitee shall be deemed to be at the request of the Company (i) if Indemnitee serves or served as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise (A) of which a majority of the voting power or equity interest is owned, directly or indirectly, by the Company or (B) the management of which is controlled, directly or indirectly, by the Company, or (ii) if, as a result of or in connection with Indemnitee’s service to the Company or any of its affiliated entities, Indemnitee is or was subject to duties by, or required to perform services for, an employee benefit plan or its participants or beneficiaries, including as a deemed fiduciary thereof.

 

(d)       “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification and/or advance of Expenses is sought by Indemnitee.

 

(e)        “Effective Date” means the date set forth in the first paragraph of this Agreement.

 

(f)        “Expenses” includes any and all direct or indirect costs, fees and expenses of any type or nature whatsoever, including, without limitation, all attorneys’ fees and costs, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, fees of private investigators and professional advisors, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, facsimile transmission charges, secretarial services, federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties and all other disbursements, obligations or expenses incurred in connection with prosecuting, defending,

 

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preparing to prosecute or defend, investigating, being or preparing to be a witness in, settlement of, or otherwise participating in, a Proceeding.  “Expenses” also include Expenses incurred in connection with any appeal resulting from any Proceeding, including, without limitation, the principal, premium for, security for and other costs relating to any cost bond, supersedeas bond or other appeal bond or its equivalent.  “Expenses” shall not, however, include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

 

(g)        “Independent Counsel” means a law firm, or a member of a law firm, with significant experience in matters of corporation law and which is not, and in the past five years has not been, retained to represent (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement or of other indemnitees under similar indemnification agreements), or (ii) any other party to or participant or witness in the Proceeding giving rise to a claim for indemnification or advance of Expenses hereunder.  Notwithstanding the foregoing, “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

 

(h)        A “Potential Change in Control” shall be deemed to have occurred if (i) the Company enters into an agreement or arrangement, the consummation of which would result in the occurrence of a Change in Control, (ii) any person or the Company publicly announces an intention to take or consider taking actions which, if consummated, would constitute a Change in Control or (iii) the Board of Directors adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in Control has occurred.

 

(i)         “Proceeding” includes any actual, threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened, pending or completed proceeding, whether brought by or in the right of the Company or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative or investigative (formal or informal) nature, including any appeal therefrom, except one pending or completed on or before the Effective Date, unless otherwise specifically agreed in writing by the Company and Indemnitee or if it would have been covered by the Prior Agreement.  If Indemnitee reasonably believes that a given situation may lead to or culminate in the institution of a Proceeding, such situation shall also be considered a Proceeding.

 

Section 2.  Services by Indemnitee.  Indemnitee will [serve] [continue to serve] as [a director] [and] [an officer] of the Company for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders Indemnitee’s resignation or is no longer serving in such capacity.  However, this Agreement shall not impose any independent obligation on Indemnitee or the Company to continue Indemnitee’s service to the Company.  This Agreement shall not be deemed an employment contract between the Company (or any other entity) and Indemnitee.

 

Section 3.  General.  The Company shall indemnify, and advance Expenses to, Indemnitee (a) as provided in this Agreement and (b) otherwise to the maximum extent permitted by Maryland law in effect on the Effective Date and as amended from time to time; provided, however, that no change in Maryland law shall have the effect of reducing the benefits available to Indemnitee hereunder based on Maryland law as in effect on the Effective Date.  The rights of Indemnitee provided in this Section 3 shall include, without limitation, the rights set forth in the other Sections of this Agreement, including any additional indemnification permitted by Section 2-418(g) of the MGCL.

 

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Section 4.  Standard for Indemnification.  If, by reason of Indemnitee’s Corporate Status, Indemnitee was, is, or is threatened to be, made a party to or a participant (as a witness or otherwise) in any Proceeding, the Company shall indemnify Indemnitee against all losses, liabilities, judgments, penalties, fines, taxes and interest and amounts paid in settlement (collectively, “Liabilities”) and all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with any such Proceeding (including, without limitation, all interest, assessments and other charges paid or payable in connection with or in respect of such Liabilities and Expenses) unless it is established by clear and convincing evidence that (a) the act or omission of Indemnitee was material to the matter giving rise to the Proceeding and (i) was committed in bad faith or (ii) was the result of active and deliberate dishonesty, (b) Indemnitee actually received an improper personal benefit in money, property or services or (c) in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that [his][her] conduct was unlawful.

 

Section 5.  Certain Limits on Indemnification.  Notwithstanding any other provision of this Agreement (other than Section 6 of this Agreement), Indemnitee shall not be entitled to:

 

(a)        indemnification hereunder if the Proceeding was one by or in the right of the Company and Indemnitee is adjudged, in a final adjudication of the Proceeding not subject to further appeal, to be liable to the Company, unless and only to the extent that any court in which such Proceeding was brought or the Circuit Court for Baltimore City (Maryland) shall determine upon application that, despite the adjudication of liability but in view of all circumstances of the case, Indemnitee is entitled to indemnification;

 

(b)        indemnification hereunder if Indemnitee is adjudged, in a final adjudication of the Proceeding not subject to further appeal, to be liable on the basis that personal benefit was improperly received in any Proceeding charging improper personal benefit to Indemnitee, whether or not involving action in Indemnitee’s Corporate Status;

 

(c)        indemnification or advance of Expenses hereunder if the Proceeding was brought by Indemnitee (provided that any counterclaim or cross-claim brought by Indemnitee with respect to a Proceeding shall not be considered to be a Proceeding “brought by Indemnitee” for purposes of this Section 5(c)), unless (i) the Proceeding was brought to enforce indemnification or advance of Expenses under this Agreement, and then only to the extent in accordance with and as authorized by Section 12 of this Agreement, or (ii) the Company’s charter or Bylaws, a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors, or an agreement approved by the Board of Directors to which the Company is a party, expressly provide otherwise;

 

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(d)       indemnification or advance of Expenses hereunder with respect to any claim made against Indemnitee for which payment has actually been received by or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount actually paid under any insurance policy or other indemnity provision; provided, however, that, notwithstanding this Section 5(d), the Company shall be obligated to indemnify and advance Expenses under this Agreement without regard to whether Indemnitee holds, may pursue or has pursued any indemnification, advancement, contribution or insurance coverage rights against any person or entity other than the Company;

 

(e)        indemnification or advance of Expenses hereunder with respect to any claim made against Indemnitee for any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of the Company, as required, in each case, under the Exchange Act (including any such reimbursement that arises from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002, as amended (the “Sarbanes-Oxley Act”), or the payment to the Company of profits arising from the purchase and sale of securities in violation of Section 306 of the Sarbanes-Oxley Act); or

 

(f)        indemnification hereunder with respect to any claim made against Indemnitee for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law.

 

Section 6.  Court-Ordered Indemnification.  Notwithstanding any other provision of this Agreement, a court of appropriate jurisdiction, upon application of Indemnitee and such notice as the court shall require, may order indemnification of Indemnitee by the Company in the following circumstances:

 

(a)        if such court determines that Indemnitee is entitled to reimbursement under Section 2-418(d)(1) of the MGCL, the court shall order indemnification, in which case Indemnitee shall be entitled to recover the Expenses of securing such reimbursement; or

 

(b)        if such court determines that Indemnitee is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not Indemnitee (i) has met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii) has been adjudged liable for receipt of an improper personal benefit under Section 2-418(c) of the MGCL, the court may order such indemnification as the court shall deem proper; provided, however, that indemnification with respect to any Proceeding by or in the right of the Company or in which liability shall have been adjudged in the circumstances described in Section 2-418(c) of the MGCL shall be limited to Expenses.

 

Section 7.  Indemnification for Expenses and Liabilities of an Indemnitee Who is Wholly or Partially Successful.  Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent that Indemnitee was or is, by reason of [his][her] Corporate Status, made a party to or a participant (as a witness or otherwise) in, any Proceeding and is successful, on the merits or otherwise, in the defense of such Proceeding, Indemnitee shall be indemnified for all Expenses and Liabilities actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.  If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but

 

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less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee under this Section 7 for all Expenses and Liabilities actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with each successfully resolved claim, issue or matter, allocated on a reasonable and proportionate basis.  For purposes of this Section 7 and, without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, on substantive or procedural grounds, shall be deemed to be a successful result as to such claim, issue or matter.

 

Section 8.  Advance of Expenses for Indemnitee.  If, by reason of Indemnitee’s Corporate Status, Indemnitee is, is threatened to be, or may be, made a party to or a participant (as a witness or otherwise) in any Proceeding, the Company shall, without requiring a preliminary determination of Indemnitee’s ultimate entitlement to indemnification hereunder, advance all reasonable Expenses incurred by or on behalf of Indemnitee in connection with such Proceeding within ten days after the receipt by the Company of a statement or statements requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding, and may be in the form of, in the reasonable discretion of Indemnitee (but without duplication) (a) payment of such Expenses directly to third parties on behalf of Indemnitee, (b) advancement to Indemnitee of funds in an amount sufficient to pay such Expenses or (c) reimbursement to Indemnitee for Indemnitee’s payment of such Expenses.  Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation by Indemnitee of Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the Company as authorized by law and by this Agreement has been met.  Indemnitee hereby undertakes, and the execution and delivery by Indemnitee of this Agreement shall constitute the requisite undertaking by Indemnitee, to reimburse the portion of any Expenses advanced to Indemnitee relating to claims, issues or matters in the Proceeding as to which it shall ultimately be established by clear and convincing evidence that the standard of conduct has not been met by Indemnitee and which have not been successfully resolved as described in Section 7 of this Agreement and Indemnitee shall not be required to execute or deliver any other undertaking as a condition to receiving advance of Expenses pursuant to this Section 8.  To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis.  The undertaking referred to in this Section 8 shall be an unlimited general obligation by or on behalf of Indemnitee and is hereby accepted without reference to Indemnitee’s financial ability, at any time, to repay such advanced Expenses and without any requirement to post security therefor.  Expenses advanced pursuant to this Section 8 are intended to and shall be an obligation of the Company to Indemnitee, shall in no event be deemed to be a personal loan to Indemnitee and shall be interest free.  Indemnitee’s right to advancement of Expenses pursuant to this Section 8 shall in all events continue until final disposition of any Proceeding, including any appeal therefrom.

 

Section 9.  Indemnification and Advance of Expenses as a Witness or Other Participant.  Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is or may be, by reason of Indemnitee’s Corporate Status, made a witness (or is forced or asked to respond to discovery requests) or otherwise asked to participate in any Proceeding, whether instituted by the Company or any other party, and to which Indemnitee is not a party, Indemnitee shall be advanced all reasonable Expenses and indemnified against all

 

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Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith within ten days after the receipt by the Company of a statement or statements requesting any such advance or indemnification from time to time, whether prior to or after final disposition of such Proceeding.  Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee.

 

Section 10.  Procedure for Determination of Entitlement to Indemnification.  (a)  To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification (the “Supporting Documentation”).  Indemnitee may submit one or more such requests from time to time and at such time(s) as Indemnitee deems appropriate in Indemnitee’s sole discretion.  The officer of the Company receiving any such request from Indemnitee shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification.

 

(b)        Upon written request by Indemnitee for indemnification pursuant to Section 10(a) of this Agreement, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall promptly be made in the specific case (i) if requested by Indemnitee, by Independent Counsel, or (ii) if no request is made by Indemnitee for a determination by Independent Counsel, (A) if a Change in Control shall have occurred, by Independent Counsel, in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee, which Independent Counsel shall be selected by Indemnitee and approved by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL, which approval shall not be unreasonably withheld, or (B) if a Change in Control shall not have occurred, (1) by the Board of Directors by a majority vote of a quorum consisting of Disinterested Directors or, if such a quorum cannot be obtained, then by a majority vote of a duly authorized committee of the Board of Directors consisting solely of one or more Disinterested Directors, (2) if Independent Counsel has been selected by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL and approved by Indemnitee, which approval shall not be unreasonably withheld, by Independent Counsel, in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee or (3) if so directed by a majority of the members of the Board of Directors, by the stockholders of the Company.  If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten days after such determination.  Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination in the discretion of the Board of Directors or Independent Counsel if retained pursuant to clause (ii)(B) of this Section 10(b).  Any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company shall indemnify and hold Indemnitee harmless therefrom.

 

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(c)        The Company shall pay the reasonable fees and expenses of Independent Counsel, if one is appointed, and shall fully indemnify and hold harmless such Independent Counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or such Independent Counsel’s engagement pursuant hereto.

 

(d)       If the Company disputes a portion of the amounts for which indemnification is requested, the undisputed portion shall be paid and only the disputed portion withheld pending resolution of any such dispute.

 

Section 11.  Presumptions and Effect of Certain Proceedings.  (a)  In making any determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall, to the fullest extent not prohibited by applicable law, presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and the Company shall, to the fullest extent not prohibited by applicable law, have the burden of proof to overcome that presumption in connection with the making by any person or persons or entity of any determination contrary to that presumption.  Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior to the commencement of any judicial proceeding or arbitration pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to such judicial proceeding or arbitration or create a presumption that Indemnitee has not met the applicable standard of conduct.

 

(b)        If the person or persons or entity empowered or selected under Section 10 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor and the Supporting Documentation, the requisite determination of entitlement to indemnification shall, to the fullest extent not prohibited by law, be deemed to have been made and Indemnitee shall be entitled to such indemnification, (i) absent a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) unless such indemnification is prohibited by law.

 

(c)        The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, upon a plea of nolo contendere or its equivalent, or entry of an order of probation prior to judgment, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not meet the requisite standard of conduct required under applicable law for indemnification.

 

(d)       The knowledge and/or actions, or failure to act, of any other director, officer, employee or agent of the Company or any other director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise shall not be imputed to Indemnitee for purposes of determining any other right to indemnification under this Agreement.

 

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(e)        For purposes of any determination of whether any act or omission of Indemnitee met the requisite standard of conduct described herein for indemnification, each act of Indemnitee shall be deemed to have met such standard if Indemnitee’s action is based on the records or books of accounts of the Company or any domestic or foreign corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise, as the case may be, including financial statements, or on information supplied to Indemnitee by the officers of the Company or persons performing similar functions for such domestic or foreign corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise, as the case may be, in the course of their duties, or on the advice of legal counsel for the Company or such domestic or foreign corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise, as the case may be, or on information or records given or reports made to the Company or such foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise, as the case may be, by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Company or such foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise, as the case may be.  The provisions of this Section 11(e) shall not be deemed to be exclusive or to limit in any way the other circumstances which Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement or under applicable law.

 

Section 12.  Remedies of Indemnitee.  (a)  If (i) a determination is made pursuant to Section 10(b) of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of Expenses is not timely made pursuant to Section 8 or Section 9 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10(b) of this Agreement within 60 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 7 or Section 9 of this Agreement within ten days after receipt by the Company of a written request therefor, (v) a contribution payment is not made in a timely manner pursuant to Section 26 of this Agreement, (vi) payment of indemnification pursuant to any other Section of this Agreement or the charter or Bylaws of the Company is not made within ten days after a determination has been made that Indemnitee is entitled to indemnification, or (vii) the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or Proceeding designed to deny, or to recover from, Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, in any case, Indemnitee shall be entitled to an adjudication in an appropriate court located in the State of Maryland, or in any other court of competent jurisdiction, of Indemnitee’s entitlement to such indemnification or advance of Expenses.  Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association.  Indemnitee shall commence a proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 12(a); provided, however, that the foregoing clause shall not apply to a proceeding brought by Indemnitee to enforce [his][her] rights under Section 7 of this Agreement.  Except as set forth herein, the provisions of Maryland law (without regard to its conflicts of laws rules) shall apply to any such arbitration.  The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

 

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(b)        Upon the occurrence or non-occurrence of any of the events set forth in Section 12(a) of this Agreement, any judicial proceeding or arbitration commenced pursuant to this Section 12 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of such occurrence or non-occurrence.  In any judicial proceeding or arbitration commenced pursuant to this Section 12, Indemnitee shall be presumed to be entitled to indemnification or advance of Expenses, as the case may be, under this Agreement and the Company shall have the burden of proving that Indemnitee is not entitled to indemnification or advance of Expenses, as the case may be, and the Company shall not refer to or introduce into evidence any determination pursuant to Section 10(b) of this Agreement adverse to Indemnitee for any purpose.  If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 12, Indemnitee shall not be required to reimburse the Company for any advances pursuant to Section 8 of this Agreement until a final determination is made with respect to Indemnitee’s entitlement to indemnification or advance or Expenses (as to which all rights of appeal have been exhausted or lapsed).  The Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all of the provisions of this Agreement.

 

(c)        If a determination shall have been made pursuant to Section 10(b) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, unless (i) Indemnitee misrepresented a material fact, or failed to state a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification or Supporting Documentation, or (ii) such indemnification is prohibited by applicable law.

 

(d)       In the event that Indemnitee is successful in seeking, pursuant to this Section 12, a judicial adjudication of or an award in arbitration to enforce Indemnitee’s rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company for, any and all Expenses and Liabilities actually and reasonably incurred by [him][her] in such judicial adjudication or arbitration.  If it shall be determined in such judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be appropriately prorated.

 

(e)        Interest shall be paid by the Company to Indemnitee at the maximum rate allowed to be charged for judgments under the Courts and Judicial Proceedings Article of the Annotated Code of Maryland for amounts which the Company pays or is obligated to pay for the period (i) commencing with either the tenth day after the date on which the Company was requested to advance Expenses in accordance with Section 8 or Section 9 of this Agreement or the 60th day after the date on which the Company was requested to make the determination of entitlement to indemnification under Section 10(b) of this Agreement, as applicable, and (ii) ending on the date such payment is made to Indemnitee by the Company.

 

-11-

 

Section 13.  Defense of the Underlying Proceeding.  (a)  Indemnitee shall notify the Company promptly in writing upon being served with or receiving any summons, citation, subpoena, complaint, indictment, notice, request or other document relating to any Proceeding which may result in the right to indemnification or the advance of Expenses hereunder and shall include with such notice a description of the nature of the Proceeding and a summary of the facts underlying the Proceeding.  The failure to give any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the Company’s ability to defend in such Proceeding or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the Company is thereby actually so prejudiced.

 

(b)        Subject to the provisions of the last sentence of this Section 13(b) and of Section 13(c) of this Agreement, the Company shall have the right to defend Indemnitee in any Proceeding which may give rise to indemnification hereunder; provided, however, that the Company shall notify Indemnitee of any such decision to defend within 15 calendar days following receipt of notice of any such Proceeding under Section 13(a) of this Agreement.  The Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent to the entry of any judgment against Indemnitee or enter into any settlement or compromise of a claim against Indemnitee which (i) includes an admission of fault of Indemnitee, (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee or (iii) would impose any Expense, Liability or limitation on Indemnitee.  This Section 13(b) shall not apply to a Proceeding brought by Indemnitee under Section 12 of this Agreement.

 

(c)        Notwithstanding the provisions of Section 13(b) of this Agreement, if, in a Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld, that Indemnitee may have separate defenses or counterclaims to assert with respect to any issue which may not be consistent with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld, that an actual or apparent conflict of interest or potential conflict of interest exists between Indemnitee and the Company, or (iii) if the Company fails to assume the defense of such Proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee’s choice, subject to the prior approval of the Company, which approval shall not be unreasonably withheld, at the expense of the Company.  In addition, if the Company fails to comply with any of its obligations under this Agreement or in the event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any Proceeding to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s choice, subject to the prior approval of the Company, which approval shall not be unreasonably withheld, at the expense of the Company (subject to Section 12(d) of this Agreement), to represent Indemnitee in connection with any such matter.

 

-12-

 

Section 14.  Non-Exclusivity; Survival of Rights; Subrogation.  (a)  The rights of indemnification and advance of Expenses as provided by this Agreement (i) shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the charter or Bylaws of the Company, any agreement or a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors, or otherwise, and (ii) shall be enforced and this Agreement shall be interpreted independently of and without reference to or limitation or constraint (whether procedural, substantive or otherwise) by any other such rights to which Indemnitee may at any time be entitled.  Indemnitee’s rights under this Agreement are present contractual rights that fully vest upon Indemnitee’s first service as a director or an officer of the Company. Unless consented to in writing by Indemnitee, no amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in [his][her] Corporate Status prior to such amendment, alteration or repeal, regardless of whether a claim with respect to such action or inaction is raised prior or subsequent to such amendment, alteration or repeal.  No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right or remedy shall be cumulative and in addition to every other right or remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  To the extent that a change in the MGCL (or other applicable law), whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the charter or Bylaws of the Company or this Agreement, it is the intent of the parties hereto that Indemnitee enjoy by this Agreement the greater benefits so afforded by such change.  The assertion of any right or remedy hereunder, or otherwise, shall not prohibit the concurrent assertion or employment of any other right or remedy.

 

(b)        The MGCL and the charter and Bylaws of the Company permit the Company to purchase and maintain insurance or furnish similar protection or make other arrangements including, but not limited to, providing a trust fund, letter of credit, or surety bond (“Indemnification Arrangements”) on behalf of Indemnitee against any liability asserted against [him][her] or incurred by or on behalf of [him][her] or in such capacity as a director, officer, employee or agent of the Company, or arising out of [his][her] status as such, whether or not the Company would have the power to indemnify [him][her] against such liability under the provisions of this Agreement or under the MGCL, as it may then be in effect. The purchase, establishment, and maintenance of any such Indemnification Arrangement shall not in any way limit or affect the rights and obligations of the Company or of Indemnitee under this Agreement, except as expressly provided herein, and the execution and delivery of this Agreement by the Company and Indemnitee shall not in any way limit or affect the rights and obligations of the Company or the other party or parties thereto under any such Indemnification Arrangement.

 

(c)        In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

 

-13-

 

Section 15.  Insurance.  The Company will use its reasonable best efforts to acquire directors and officers liability insurance, on terms and conditions deemed appropriate by the Board of Directors, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee by reason of [his][her] Corporate Status and covering the Company for any indemnification or advance of Expenses made by the Company to Indemnitee for any claims made against Indemnitee by reason of [his][her] Corporate Status.  Without in any way limiting any other obligation under this Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee arising out of the amount of any deductible or retention and the amount of any excess of the aggregate of all Liabilities and Expenses incurred by Indemnitee in connection with a Proceeding over the coverage of any insurance referred to in the previous sentence.  The purchase, establishment and maintenance of any such insurance shall not in any way limit or affect the rights or obligations of the Company or Indemnitee under this Agreement, except as expressly provided herein, and the execution and delivery of this Agreement by the Company and Indemnitee shall not in any way limit or affect the rights or obligations of the Company under any such insurance policies.  If, at the time the Company receives notice from any source of a Proceeding to which Indemnitee is a party or a participant (as a witness or otherwise) the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies.  The Company shall thereafter take all reasonably necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such action, suit, Proceeding or other claim in accordance with the terms of such policy.  In the event of a Change in Control, the Company shall maintain in force any and all insurance policies then maintained by the Company in providing insurance (including directors’ and officers’ liability, fiduciary, employment practices or otherwise) in respect of Indemnitee, for a period of six years thereafter (a “Tail Policy”).  Such coverage shall be non-cancellable and shall be placed by the incumbent insurance broker with the incumbent insurance carriers using the policies that were in place at the time of the Change in Control (unless the incumbent carriers will not offer such policies, in which case the Tail Policy shall be substantially comparable in scope and amount as the expiring policies, and the insurance carriers for the Tail Policy shall have an AM Best rating that is the same or better than the AM Best ratings of the expiring policies).

 

Section 16.  Coordination of Payments.  The Company’s obligation to indemnify and advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from such foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise.  Notwithstanding any other provision of this Agreement to the contrary, (i) Indemnitee shall have no obligation to reduce, offset, allocate, pursue or apportion any indemnification, advancement, contribution or insurance coverage among multiple parties possessing such duties to Indemnitee prior to the Company’s satisfaction and performance of all its obligations under this Agreement and (ii) the Company shall perform fully its obligations under this Agreement without regard to whether Indemnitee holds, may pursue or has pursued any indemnification, advancement, contribution or insurance coverage rights against any person or entity other than the Company.

 

-14-

 

Section 17.  Reports to Stockholders.  To the extent required by the MGCL, the Company shall report in writing to its stockholders the payment of any amounts for indemnification of, or advance of Expenses to, Indemnitee under this Agreement arising out of a Proceeding by or in the right of the Company with the notice of the meeting of stockholders of the Company next following the date of the payment of any such indemnification or advance of Expenses or prior to such meeting.

 

Section 18.  Duration of Agreement; Binding Effect.  (a)  This Agreement, and all obligations of the Company contained herein, shall continue until and terminate on the later of (i) the date that Indemnitee shall have ceased to serve as a director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that Indemnitee is or was serving in such capacity at the request of the Company and (ii) the date that Indemnitee may no longer be subject to any actual or possible Proceeding (including any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement) by reason of Indemnitee’s Corporate Status, whether or note Indemnitee is acting in such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement.

 

(b)        The indemnification and advance of Expenses provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company, and shall inure to the benefit of Indemnitee and Indemnitee’s spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

 

(c)        The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to (i) assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place and (ii) agree to indemnify Indemnitee to the maximum extent provided by the laws of the jurisdiction of organization of such successor, to the extent that such laws would provide indemnification rights that are, in any respect, greater, or more beneficial to Indemnitee, than the rights to indemnification provided pursuant to this Agreement.

 

(d)       The Company and Indemnitee agree that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm.  Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which Indemnitee may be entitled.  Indemnitee shall further be entitled to such specific performance and injunctive relief, including

 

-15-

 

temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertakings in connection therewith.  The Company acknowledges that, in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a court, and the Company hereby waives any such requirement of such a bond or undertaking.

 

(e)        Without limiting any of the rights of Indemnitee under the Charter or the Bylaws of the Company, and except as provided in Section 14(a) of this Agreement, this Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof.

 

Section 19.  Severability.  If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law, (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto, and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

 

Section 20.  Identical Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.  One such counterpart signed by the party against whom enforceability is sought shall be sufficient to evidence the existence of this Agreement.

 

Section 21.  Headings.  The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

 

Section 22.  Modification and Waiver.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

Section 23.  Notices.  All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, on the day of such delivery, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:

 

-16-

 

(a)        If to Indemnitee, to the address set forth on the signature page hereto.

 

(b)        If to the Company, to:

 

Realty Income Corporation
 600 La Terraza Blvd.
 Escondido, CA  92025
 Attn:  Executive Vice President, General Counsel

 

or to such other address as may have been furnished in writing to Indemnitee by the Company or to the Company by Indemnitee, as the case may be, in accordance with this Section 24.

 

Section 24.  Governing Law.  This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Maryland, without regard to its conflicts of laws rules.

 

Section 25.  Contribution.  If the indemnification provided in this Agreement is unavailable, in whole or in part, and may not be paid to Indemnitee for any reason, other than for failure to satisfy the standard of conduct set forth in Section 4 of this Agreement or due to the provisions of Section 5 of this Agreement, then, with respect to any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding), to the fullest extent permissible under applicable law, the Company, in lieu of indemnifying Indemnitee, shall pay, in the first instance, the entire amount incurred by Indemnitee, whether for Expenses or Liabilities, in connection with any Proceeding without requiring Indemnitee to contribute to such payment, and the Company hereby waives and relinquishes any right of contribution it may have at any time against Indemnitee.

 

Section 26.  Period of Limitations.  No legal action shall be brought and no cause of action shall be asserted by or in the right of the Company against Indemnitee, Indemnitee’s spouse, heirs, executors or personal or legal representatives after the expiration of two years from the date of accrual of such cause of action, and any claim or cause of action of the Company shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such two-year period; provided, however, that, if any shorter period of limitations is otherwise applicable to any such cause of action, such shorter period shall govern.

 

Section 27.  Additional Acts.  If, for the validation of any of the provisions in this Agreement, any act, resolution, approval or other procedure is required, the Company undertakes to cause such act, resolution, approval or other procedure to be affected or adopted in a manner that will enable the Company to fulfill its obligations under this Agreement.

 

-17-

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
REALTY INCOME CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
Michael R. Pfeiffer
    
	
 
    	
 
    	
Title:
    	
Executive Vice President,
    
	
 
    	
 
    	
 
    	
General Counsel and Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
INDEMNITEE:
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
									

 

A-1Exhibit 10.1

 

[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH CONFIDENTIAL TREATMENT REQUEST.

Dealpoint#XXXXXXXX

 

AMENDMENT TO THE
 XBOX 360 PUBLISHER LICENSE AGREEMENT
  (2014 Renewal; MOQ; Tier D, Tier Migration, Multi-Game Pack Program, Hits Program Changes)

 

This Amendment to the Xbox 360 Publisher License Agreement (this “Amendment”) is effective as the later of [***] (the “Amendment Effective Date”) by and between Microsoft Corporation, a Washington corporation (“Microsoft”), and Take-Two Interactive Software, Inc.  (“Publisher”), and supplements that certain Xbox 360 Publisher License Agreement between the parties dated as of November 17, 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.             Minimum Order Quantities.

 

The following shall be added to Section 7.5.1 of the Xbox 360 PLA:

 

For Software Titles that were initially manufactured on or after [***], the MOQs are as follows:

 

	
 
    	
 
    	
Per Software Title
    	
 
    	
Per Disc / Expansion Pack
    
	
North American Sales Territory
    	
 
    	
[***]
    	
 
    	
[***]
    
	
European Sales Territory
    	
 
    	
[***]
    	
 
    	
[***]
    
	
Japan Sales Territory
    	
 
    	
[***]
    	
 
    	
[***]
    
	
Asian Sales Territory
    	
 
    	
[***]
    	
 
    	
[***]
    

 

Section 7.5.2 of the Xbox 360 PLA is hereby amended and restated in its entirety:

 

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, and such FPU was initially manufactured after [***], then 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.”

 

2.             Term.

 

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

 

3.             “17.1      Term.  The term of this Agreement shall commence on the Effective Date and shall continue until [***].  If the Agreement will expire, the parties will agree on a plan to allow Xbox LIVE Users who purchased Xbox Live-enabled Software Titles near the expiration date to access and use Online Content of such Software Titles on Xbox Live for a commercially reasonable time after expiration.”

 

1

 

[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH CONFIDENTIAL TREATMENT REQUEST.

Dealpoint#XXXXXXXX

 

4.             Notices.

 

Section 18.2 of the Xbox 360 PLA is hereby amended and restated in its entirety:

 

“18.2      Notices.  All notices under this Agreement will be: (1) in writing; (2) in English; (3) deemed given when received; (4) sent by delivery service, messenger, or registered or certified mail (postage prepaid, return receipt requested); and (5) addressed and sent, with any required copies, as provided below (or as the recipient has otherwise designated, in writing or by email, before notice was sent).  Ordinary business communications (excluding, for example, those related to payment or breach) may be sent by email and need not be cc’d.

 

Contact Information

 

	
To Microsoft:
    	
 
    	
Microsoft Corporation

One Microsoft Way

Redmond, Washington 98052-6399 USA
    	
 
    	
To Publisher:
    	
 
    	
Take-Two Interactive Software, Inc.

622 Broadway New York, NY 10012
    
	
Attention:
    	
 
    	
General Manager, Xbox 3rd Party

Publishing
    	
 
    	
Attention:
    	
 
    	
General Counsel
    
	
Phone:
    	
 
    	
(425) 882-8080
    	
 
    	
Phone:
    	
 
    	
646 536 3001
    
	
Fax:
    	
 
    	
(425) 936-7329
    	
 
    	
Fax:
    	
 
    	
646 536 2923
    
	
Copy To:
    	
 
    	
Microsoft Corporation

One Microsoft Way

Redmond, Washington 98052-6399 USA

Attn: Legal & Corporate Affairs
    	
 
    	
Copy To:
    	
 
    	
Take Two Interactive Software, Inc. 622   Broadway New York, NY 10012

Attn: President
    
	
Copy To Fax:
    	
 
    	
(425) 936-7329
    	
 
    	
Copy To Fax:
    	
 
    	
646 536 2923
    

”

 

5.             Payments.

 

Exhibit 1, Section 1(a) through 1(d), including Tables 1 and 2, of the Xbox 360 PLA shall be replaced with the following:

 

“1.          Platform Royalty

 

a.             For each FPU manufactured, Publisher shall pay Microsoft nonrefundable royalties in accordance with the royalty tables (Tables 1 and 2) and the Unit Discount Table (Table 3).

 

b.             To determine the applicable royalty rate for a particular Software Title to be sold in a particular Sales Territory, the applicable Threshold Price from Table 1 for the category of Software Title 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 [***].

 

Table 1:  Royalty Tier

 

	
 
    	
 
    	
North America
   WSP
    	
 
    	
Europe WSP
    	
 
    	
Japan SRP
    	
 
    	
Asia WSP (US$)*
    
	
Standard Software Title
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Tier A
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
Tier B
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
Tier C
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
Tier D
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
Hits Software Title
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Hits Tier 1
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    

 

2

 

[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH CONFIDENTIAL TREATMENT REQUEST.

Dealpoint#XXXXXXXX

 

	
Hits Tier 2
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
Hits Tier 3
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
Expansion Pack
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Packs Tier 1
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
Packs Tier 2
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
Multi-Game Pack**
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Multi-Game
   Tier 1
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
Multi-Game
   Tier 2
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
Multi-Game
   Tier 3
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
Multi-Game
   Tier 4
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    

 

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

** If a Multi-Game Pack consists of more than [***] Software Titles, in addition to the Royalty Rates set for the Multi-Game Pack Program, each additional Software Title after the [***] one will be charged a rate equivalent to the Hits Tier [***] Royalty Rate.

 

Table 2: Royalty Rates

 

	
 
    	
 
    	
North
    America
    	
 
    	
Europe
    	
 
    	
Japan
    	
 
    	
Asia (US$)
    	
 
    
	
Tier   A
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
Tier   B
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
Tier   C
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
Tier   D
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
Hits   Tier 1
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
Hits   Tier 2
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
Hits   Tier 3
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
Packs   Tier 1
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
Packs   Tier 2
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
Multi-Game   Tier 1
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
Multi-Game   Tier 2
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
Multi-Game   Tier  3
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    
	
Multi-Game   Tier 4
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    

 

c.             Setting the Royalty.

 

(i)            Standard Software Titles and Expansion Packs.  Publisher shall submit to Microsoft, at least [***] business days 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  (as may be updated via the Xbox 360 Publisher Guide) for each Sales Territory.  The selection indicated in the Xbox 360 Royalty Tier Selection Form (or designated electronic form method) 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

 

3

 

[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH CONFIDENTIAL TREATMENT REQUEST.

Dealpoint#XXXXXXXX

 

(e.g., as a result of the Publisher not providing an 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 Tier [***] or for such Expansion Pack will default to Packs Tier [***], 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 Tier [***]).  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.

 

1.             [***] days after Commercial Release of an FPU in a Sales Territory, Publisher may elect to change the previously elected Royalty Tier for such Software Title to any other valid Royalty Tier set forth in Table 2 (e.g., migrate from Tier A to Tier B or from Tier A to Tier D) in the same Sales Territory.  A minimum of [***] days must elapse before Publisher is permitted to make an additional Royalty Tier migration.  Software Titles must meet all MOQs to receive approval for a Royalty Tier migration.  The Multi-Game Pack program does not support Royalty Tier migration.

 

2.             Publisher must submit to Microsoft, at least [***] business days before placing the first manufacturing order under the new Royalty Tier, a completed and signed Xbox 360 Royalty Tier Migration Form in the form attached to this Agreement as Exhibit 7 (as may be updated via Xbox 360 Publisher Guide which may require electronic submission) for each Sales Territory.  Unit Discount accumulation restarts with each Royalty Tier migration.

 

(ii)           Hits Software Title.  Publisher shall submit to Microsoft, at least [***] days prior to the targeted Commercial Release of the Hits Software Title, a completed and signed Xbox 360 Hits Programs Election Form in the form attached to this Agreement as Exhibit 6 (as may be updated via the Xbox 360 Publisher Guide) for each Sales Territory.  The Xbox 360 Hits Programs Election Form will be effective once it has been approved by Microsoft.  If a Hits Software Title does not have an approved Xbox 360 Hits Programs Election Form as required hereunder (e.g., as a result of the Publisher not providing an Xbox 360 Hits Programs Election Form or because Microsoft has not approved the Xbox 360 Hits Programs Election Form), the royalty rate for such Hits Software Title will default to Tier [***] (i.e., if Microsoft does not approve an Xbox 360 Hits Programs Election Form because it is filled out incorrectly, the royalty rate will default to Tier [***]).

 

1.             Publisher may elect either [***], [***], or [***] at initial Commercial Release as a Hits Software Title provided that the Software Title meets the Threshold Price requirements set forth in Table 1 above.

 

2.             After [***] days from the Commercial Release of a Hits Software Title, Publisher may elect to change the previously elected Hits Tier royalty rate for such Hits Software Title to a lower Hits Tier royalty rate in a specific Sales Territory provided that the Hits Software Title has a Threshold Price that meets the requirements for the newly elected Hits Tier royalty rate in Table 1 above.  A minimum of [***] days must elapse before Publisher can make an additional Hits Tier change.

 

3.             Publisher must submit to Microsoft, at least [***] business days 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.

 

4

 

[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH CONFIDENTIAL TREATMENT REQUEST.

Dealpoint#XXXXXXXX

 

(d)           Russian Manufacturing Incentive Program.  For Software Titles releasing in Russia that meet all the requirements set forth below, up to [***] units of each such Software Title may qualify for the Tier [***] royalty rate, even if the Software Title qualifies for a different Tier in the rest of the European Sales Territory:

 

(i)            The Xbox 360 version of the Software Title must Commercially Release no later than all other console and PC versions;

 

(ii)           The Software Title must include the Russian language (other languages in addition to Russian are also permitted).  At a minimum, the text and subtitles of the Software Title must be localized into the Russian language (full Russian localization is preferred);

 

(iii)          The Software Title must have localization parity with other console and PC versions;

 

(iv)          The Packaging Materials must be in the Russian language only (no other language can be present); and

 

(v)           The Software Title disc must be replicated and packaged by the Authorized Replicator(s) in Russia.

 

Subject to this Exhibit 1, Section 1(i)(1) and 1(i)(2) in this Exhibit, Publisher may elect to change the previously elected Tier [***] to Tier [***].  Units manufactured that qualify for the Tier [***] or Tier [***] royalty rate under this program will not qualify for the Unit Discount calculation set forth in Section 1.e below, but such units will be included in the Hits Program Manufacturing Requirements set forth in Section 2.b (Table 1).  With respect to any single Software Title, all units manufactured in addition to [***] will be charged the same royalty Tier applicable in the rest of the European Sales Territory.”

 

6.             Japan Re Ordering Program.

 

Exhibit 1, Section 1(f) shall be revised to add the following new section:

 

“(iii)   As of [***], the Japan Re-Ordering Program will terminate and any Software Title not in the program as of [***], will not be eligible for the Japan Re-Ordering Program.  Software Titles manufactured under the Japan Re-Ordering Program prior to [***], may continue to participate in the Japan Re-Ordering Program until the end of the Term, or unless earlier terminated by Microsoft upon notice (which may be via email) to Publisher.”

 

7.             Multi-Game Pack Program.

 

Exhibit 1, Section g shall be replaced with the following:

 

“g.           Multi-Game Pack Program.  Publisher may elect to manufacture and distribute Multi-Game Pack(s) subject to the requirements of this Section 1g.  Upon compliance with the program requirements and receipt of the Multi-Game Pack Program Form (attached as Exhibit 10 hereto) at least [***] days prior to the targeted commercial release of the Multi-Game Pack, Publisher is authorized to manufacture and distribute Multi-Game Packs in each Sales Territory at the royalty rates in Table 2 of Section 1 applicable to the Multi-Game Packs.  The Multi-Game Pack program requirements are:

 

(i)            A Software Title that has been commercially released for [***] months or less can be included in a Multi Game Pack only once every [***] months, and a Software Title that has been commercially released for more than [***] months can also be included in [***] exclusive retail bundle in addition to the Multi-Game Pack;

 

(ii)           Only [***] Software Title in the Multi-Game Pack may have been commercially available for a minimum of [***] months.  All other Software Titles included in the same Multi-Game Pack must have

 

5

 

[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH CONFIDENTIAL TREATMENT REQUEST.

Dealpoint#XXXXXXXX

 

been commercially available at retail for at least [***] months prior to including and manufacturing such Software Title as part of a Multi-Game Pack;

 

(iii)          Multi-Game Packs must consist of at least [***] Hits Software Title but may be a combination of both Standard and Hits Software Titles;

 

1.     Multi-Game Packs consisting of [***] or [***] disc-based Software Titles may be Software Titles crossing Publisher’s franchises and must be packaged into a single case.

 

2.     Multi-Game Packs consisting of [***] disc-based Software Titles or more must all be Software Titles from a Publisher’s single franchise and must be packaged into no more than [***] cases surrounded by a Microsoft-approved package sleeve.

 

3.     Combinations of “Better with Kinect” and non-Kinect required Software Titles are permitted in Multi-Game Packs, and will follow branding guidelines.  A combination of “Kinect-Required”, “Better with Kinect” and non-Kinect required Software Titles are not permitted in Multi-Game Packs;

 

(iv)          All Software Title discs included in Multi -Game Packs must be new manufacturing of the Software Title (existing FPUs may not be re-packaged or re-used under this program, no o-rings, no-recertification);

 

(v)           Subject to Section (ii) and (iii) of this Section, Multi-Game Packs may include only [***] token for either Games on Demand or XBLA Software Titles (but not both) and may include tokens for additional content available for download and for use with or in a Software Title;

 

1.     Xbox Live Marketplace policy token fees will not apply to the Games on Demand or XBLA tokens that are included in Multi-Game Packs; and

 

2.     Within [***] days of Publisher receiving Games on Demand or XBLA tokens, if those tokens are not included in the Multi-Game Pack, then subject to the Xbox Live Marketplace Policy token fees at the time the token order was placed, Publisher will be invoiced for the token order.

 

(vi)          Multi-Game Packs as a whole are not eligible for the Hits program set forth in Section 2 of Exhibit 1 and inclusion in a Multi-Game Pack does not influence the status of each individual title with regards to the Hits Program;

 

(vii)         Multi-Game Packs are eligible for the unit discounts set forth in Section 1(e);

 

(viii)        All Marketing Materials for Multi-Game Packs must comply with all Microsoft Branding Specifications, and Publisher shall submit all such Marketing Materials to Microsoft for its approval in accordance with this Agreement;

 

(ix)          Packaging for a Multi-Game Pack must comply with all Microsoft packaging and branding requirements per the Xbox 360 Publisher Guide.

 

(ix)          Publisher acknowledges that Microsoft may change any of the qualifications for participation in the Multi-Game Pack program upon [***] days advance written notice to Publisher.”

 

8.             Hits Programs.

 

Beginning on the Amendment Effective Date, the Hits Program manufacturing requirements for Platinum or Classic Hits as set forth in Exhibit 1, Section 2.b (Table 1) of the Xbox 360 PLA shall be replaced with the following:

 

6

 

[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH CONFIDENTIAL TREATMENT REQUEST.

Dealpoint#XXXXXXXX

 

“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: Hits Program Manufacturing Requirements
    
	
 
    	
 
    	
North American
   Sales Territory
    	
 
    	
European
    Sales Territory
    	
 
    	
Japan Sales
   Territory
    	
 
    	
Asian Sales
   Territory
    
	
Platinum or Classic Hits
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
Family Hits
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
Kinect Hits
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    
	
Kinect Hits (applies only to [***])*
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
[***]
    

 

*These Kinect Hits qualifications apply solely to Hits FPUs that (i) have a royalty rate of Hits Tier [***] or Hits Tier [***]; (ii) use Kinect as the primary control mechanism (“Better with Kinect” Software Titles are not eligible); and (iii) have achieved at least one of the following review scores: [***] Metacritic score; or [***] stars on Xbox.com; or [***] stars on Amazon.co.uk/.com (as may be updated via the Xbox 360 Publisher Guide) provided that any of the foregoing must have at least [***] published reviews to qualify.”

 

9.             Exhibits 2, 3, 4, 6, 7, 8, and 10 of the Xbox 360 PLA are hereby amended and restated in their entirety as attached hereto.

 

10.          Except and to the extent expressly modified by this Amendment, the Xbox 360 PLA shall remain in full force and effect and is hereby ratified and confirmed.  In the event of any conflict between this Amendment and the Xbox 360 PLA 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 Corporation
    	
 
    	
Take Two Interactive Software, Inc.
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/Mohammad Shafaqat
    	
 
    	
Signature:
    	
/s/Daniel P. Emerson
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Mohammad Shafaqat
    	
 
    	
Name:
    	
Daniel P. Emerson
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Xbox Program Manager
    	
 
    	
Title:
    	
SVP & Deputy GC
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
September 30, 2014
    	
 
    	
Date:
    	
September 30, 2014
    

 

7

 

[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH CONFIDENTIAL TREATMENT REQUEST.

Dealpoint#XXXXXXXX

 

EXHIBIT 2 - XBOX 360 ROYALTY TIER SELECTION FORM

 

Please complete, sign the form, and submit via email to 3PPOPS@MICROSOFT.COM with CC to your Account Manager.

 

A.            This Form Must Be Submitted At Least [***] Business Days 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 Tier [***] (or Packs Tier [***] for Expansion Packs) For The Applicable Sales Territory.

 

B.            A Separate Form Must Be Submitted For Each Sales Territory.

 

C.            This Form applies only to Standard Product.  If a non-standard edition (such as GOTY, Special, Limited, Collector’s Editions or Compilations) will also be commercially available, the “Xbox 360 Royalty Tier Selection From for Non-Standard or Bundle Editions” must also be submitted.

 

1.             Publisher Name:

 

2.             Xbox 360 Software Title Name:

 

3.             XeMID(s) or *partial XeMID(s): Partial/Incomplete XeMID(s) allowed for pre-RTM titles only, complete XeMID(s) is required for post RTM titles

 

 

4.             Date of First Commercial Release (mm/dd/yy):

 

5.             Sales Territory (check one):

 

	
 ̈  North America
    	
 ̈  Europe
    	
 ̈  Japan
    	
 ̈  Asia
    	
 ̈  Russian Mfg Incentive Program   (RMIP)
    

 

6.             Final Certification Date (mm/dd/yy):

 

7.             Select Royalty Tier: (check one):

 

	
 ̈ Tier A

WSP: [***] + or

[***] +; SRP: [***]
    	
 
    	
 ̈ Tier B

WSP: Up to [***]; or

[***]; SRP: Up to [***]
    	
 
    	
 ̈ Tier C

WSP: Up to [***] in NA; Up to [***] in Asia; Up   to [***];

SRP: Up to [***]
    	
 
    	
 ̈ Tier D

WSP: Up to [***] in NA; Up to [***] in Asia; Up   to [***]

SRP: Up to [***]
    	
 
    	
 ̈ Packs Tier 1

WSP: Up to [***] in NA; Up to [***] in Asia; Up   to [***]; SRP: Up to [***]
    	
 
    	
 ̈ Packs Tier 2

WSP: Up to [***]; Up to [***]; SRP: Up to [***]
    

 

8.

 

Initial Order Quantity for the Sales Territory:

 

Authorized Replicator(s) to be used to fulfill initial MOQ Qty:

 

Please refer to the Publisher Guide for a list of Authorized Replicators.  If using more than one Authorized Replicator for the initial order, please list all.

 

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.

 

	
To avoid manufacturing delays at your Authorized   Replicator, your disc manufacturing order must include the intended sales   territory as indicated above.
    	
 
    
	
By (sign)
    
	
 
    
	
Name, Title (Print)
    
	
 
    
	
E-Mail Address (for confirmation of receipt)
    
	
 
    
	
 
    	
Date (Print mm/dd/yy)
    

 

 

[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH CONFIDENTIAL TREATMENT REQUEST.

Dealpoint#XXXXXXXX

 

EXHIBIT 3
 XBOX 360 PUBLISHER ENROLLMENT FORM

 

Please complete, sign the form, and submit via email to 3PPOPS@MICROSOFT.COM with CC to your Account Manager.

 

NOTE:  PUBLISHER MUST COMPLETE, SIGN AND SUBMIT THIS ENROLLMENT FORM [***] BUSINESS DAYS PRIOR TO ESTABLISHING A BILLING ADDRESS WITHIN A EUROPEAN COUNTRY.

 

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

 

	
Publisher:
    
	
VAT number:
    
	
 
    
	
Attention:
    
	
Address:
    
	
 
    
	
 
    
	
Email:
    
	
Phone:
    
	
Fax:
    

 

and is effective as of the latter of the two signatures identified below.  The terms of that certain Xbox 360 Publisher License Agreement entered into by Microsoft Corporation 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.             Notices; Requests.  All notices and requests in connection with this Enrollment will be: (1) in writing; (2) in English; (3) deemed given when received; (4) sent by delivery service, messenger, or registered or certified mail (postage prepaid, return receipt requested); and (5) addressed and sent, with any required copies, as provided to the Publisher as set forth above and to MIOL as follows (or as the recipient has otherwise designated, in writing or by email, before notice was sent).  Ordinary business communications (excluding, for example, those related to payment or breach) may be sent by email and need not be cc’d.

 

	
MICROSOFT IRELAND OPERATIONS LTD.
    	
with a cc to:       MICROSOFT   CORPORATION
    
	
Attention: MIOL Xbox Accounting Services

Microsoft European Operations Centre,

Atrium Building Block B,

Carmenhall Road,

Sandyford Industrial Estate,

Dublin 18,

Ireland,

Fax: 353 1 706 4110
    	
Attention: Legal & Corporate Affairs   Department

One Microsoft Way

Redmond, WA 98052-6399

USA

Fax: +1 (425) 706-7329
    

 

3.             Representations and Warranties.  By signing this Enrollment, the parties agree to be bound by the terms of this Enrollment, and Publisher represents and warrants that: (i) it has read and 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.

 

 

[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH CONFIDENTIAL TREATMENT REQUEST.

Dealpoint#XXXXXXXX

 

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:

 

Publisher Billing Address: European Sales Territory

 

Publisher Entity Name:

Address:

Phone:

Accounts Payable Contact:

Accounts Payable Contact Email:

 

 

	
MICROSOFT IRELAND OPERATIONS LTD.
    	
 
    	
PUBLISHER:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title
    	
 
    	
Title
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name (Print)
    	
 
    	
Name (Print)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
Date:
    

 

 

[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH CONFIDENTIAL TREATMENT REQUEST.

Dealpoint#XXXXXXXX

EXHIBIT 4
 AUTHORIZED AFFILIATES

 

Please complete, sign the form, and submit via email to 3PPOPS@MICROSOFT.COM with CC to your Account Manager.

 

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

 

	
Publisher Entity Name:
   Address:
   Phone:
   Accounts Payable Contact:
   Accounts Payable Contact Email:
    	
 
    	
Publisher Entity Name:
   Address:
   Phone:
   Accounts Payable Contact:
   Accounts Payable Contact Email:
    

 

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

 

PUBLISHER AFFILIATE AGREEMENT

 

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

 

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

 

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

 

	
Publisher Affiliate
    	
 
    	
Publisher
    
	
 
    	
 
    	
 
    
	
Signature:
    	
 
    	
 
    	
Signature:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Date:
    	
 
    

 

 

[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH CONFIDENTIAL TREATMENT REQUEST.

Dealpoint#XXXXXXXX

 

EXHIBIT 6 - XBOX 360 HITS PROGRAMS ELECTION FORM

 

Please complete, sign the form, and submit via email to 3PPOPS@MICROSOFT.COM with CC to your Account Manager.

 

A.                                    This Form Must Be Submitted By A Publisher At Least [***] Days Prior To The Target Commercial Release Date For A Software Title In A Hits Program In Any Sales Territory.  If this form is not submitted on time or is rejected by Microsoft, orders will be held from manufacturing until such time MS has approved and/or configured the request in their systems.

B.                                    A Separate Form Must Be Submitted For Each Sales Territory And for Each Hits Program In Which The Publisher Wishes To Publish A Software Title As Part Of A Hits Program.

 

1.                                      Publisher Name:

 

2.                                      X box 360 Software Title Name:

 

3.                                      XeMID(s): Complete XeMID(s) is required

 

 

4.                                      Title qualified under the following Hits Program (check one)

 

	
 ̈ Platinum or Classics Hits
    	
 
    	
 ̈ Family Hits (ESRB E / PEGI 3+ or PEGI 7+)
    	
 
    	
 ̈ XBLA Hits (FPU)
    
	
 ̈ Kinect Hits (Kinect is the Primary Control mechanism)
    	
 
    	
 ̈ Kinect Hits (Kinect is the primary control mechanism and Hits Tier 2   election required)
    	
 
    	
 
    

 

5.                                      Royalty Tier (check one):

 

	
 ̈ Hits Tier 1
   WSP: Up to [***] in NA; Up to [***] in Asia; Up to [***]; SRP: Up to [***]
    	
 
    	
 ̈ Hits Tier 2
   WSP: Up to [***]; Up to [***]; SRP: Up to [***]
    	
 
    	
 ̈ Hits Tier 3
   WSP: Up to [***], SRP: Up to [***]
    

 

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

 

	
 ̈ North America
    	
 
    	
 ̈ Europe
    	
 
    	
 ̈ Japan
    	
 
    	
 ̈ Asia
    

 

7.                                      Date of Commercial Release of Software Title in applicable Sales Territory (mm/dd/yy):

 

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 mm/dd/yy):

 

10.                               Initial order quantity of Hits Titles manufactured for Sales Territory:

 

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.

 

	
To avoid manufacturing delays at your Authorized   Replicator, your disc manufacturing order must include:
    	
 
    
	
By (sign)
    
	
 
    	
 
    
	
·                       Sales Territory
    	
Name, Title (Print)
    
	
·                       Hits Program
    	
 
    
	
 
    	
E-Mail Address (for confirmation of receipt)
    
	
 
    	
 
    
	
 
    	
Date (Print mm/dd/yy)
    

 

 

[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH CONFIDENTIAL TREATMENT REQUEST.

Dealpoint#XXXXXXXX

 

EXHIBIT 7 - XBOX 360 ROYALTY TIER MIGRATION FORM

 

Please complete, sign the form, and submit via email to 3PPOPS@MICROSOFT.COM with CC to your Account Manager.

 

A.                                    This form must be submitted at least [***] Business Days prior to the first manufacturing order under the new Royalty Tier selected in this form.  If this form is not submitted on time or is rejected by Microsoft, the royalty rate will default to the Royalty Tier under which the Software Title was last manufactured.

B.                                    A Software Title must have been Commercially Released as an FPU for at least [***] days in a Sales Territory, and satisfied MOQ requirements prior to the Software Title’s first migration to a new Royalty Tier in such Sales Territory.

C.                                    After a Software Title’s first migration to a new Royalty Tier, a Software Title may migrate Royalty Tiers [***] after each [***] day period from the date the Software Title manufactured under its then current Royalty Tier.

D.                                    A separate form must be submitted for each tier migration for the Sales Territory in which Publisher desires to change the applicable Royalty Tier.

 

1.                                      Publisher Name:

 

2.                                      Xbox 360 Software Title Name:

 

3.                                      XeMID(s): Complete XeMID(s) is required:

 

 

4.                                      Sales Territory or Program (check one):

 

	
 ̈    North America
    	
 
    	
 ̈    Europe
    	
 
    	
 ̈    Asian
    	
 
    	
 ̈    Japan
    

 

5.                                      Please indicate migration

 

	
Current Royalty Tier (check one)

 

 

 ̈ Tier A
     ̈ Tier B
     ̈ Tier C
    	
 
    	
New Royalty Tier (check one)

 

 

 ̈ Tier B
     ̈ Tier C
     ̈ Tier D
    	
 
    	
a)             Date   of First Commercial Release (mm/dd/yy):

b)             Software   Title has previously migrated Royalty Tiers:

o            No, this is the first migration for this Software Title and it has been   commercially released in the Sales Territory for at least [***] days.

o            Yes, the Software Title has previously migrated and by checking this box,   Publisher represents that it has been at least [***] days since the first   date of manufacture under the current 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.

 

	
To avoid manufacturing delays at your Authorized   Replicator, your disc manufacturing order must include Sales Territory or   Program as indicated above.
    	
 
    
	
By (sign)
    
	
 
    
	
 
    	
Name, Title (Print)
    
	
 
    	
 
    
	
 
    	
E-Mail Address (for confirmation of receipt)
    
	
 
    	
 
    
	
 
    	
Date (Print mm/dd/yy)
    

 

 

[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH CONFIDENTIAL TREATMENT REQUEST.

Dealpoint#XXXXXXXX

 

EXHIBIT 8 - XBOX 360 HITS ROYALTY TIER MIGRATION FORM

 

Please complete, sign the form, and submit via email to 3PPOPS@MICROSOFT.COM with CC to your Account Manager.

 

A.                                    This form must be submitted at least [***] business days prior to the 1st manufacturing order being placed for the Software Title(s) for each respective Sales Territory.  If this form is not submitted on time or is rejected by Microsoft, the royalty rate will default to the Hits Tier under which the Software Title was last manufactured.

B.                                    A Hits Software Title may not change royalty tier until it has been in the Hits Program for at least [***] days.

C.                                    After a Software Title’s first migration to a new Royalty Tier, a Software Title may migrate Royalty Tiers [***] after each [***] day period from the date the Software Title manufactured under its then current Royalty Tier.

D.                                    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.                                      XeMID(s): Complete XeMID(s) is required

 

 

4.                                      Date of First Commercial Release (mm/dd/yy):

 

5.                                      Sales Territory (check one):

 

	
 ̈    North America
    	
 
    	
 ̈    Europe
    	
 
    	
 ̈    Japan
    	
 
    	
 ̈  Asia
    

 

6.                                      Please indicate migration

 

	
Current Hits Royalty Tier (check one)

 

 

 ̈  Hits Tier 1
     ̈  Hits Tier 2
    	
 
    	
New Hits Royalty Tier (check one)

 

 

 ̈  Hits Tier 2
     ̈  Hits Tier 3
    	
 
    	
c)              Date   of First Commercial Release as a Hits title (mm/dd/yy):

d)             Software   Title has previously migrated Hits Royalty Tiers:

o            No, this is the first Hits migration for this Software Title and it has   been commercially released as a Hits title in the Sales Territory for at   least [***] days.

o            Yes, the Software Title has previously migrated and by checking this box,   Publisher represents that it has been at least [***] days since the first   date of manufacture as a Hits title under the current Hits Royalty Tier.
    

 

7.                                      Initial order quantity of migrated Hits Title for Sales Territory:

 

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.

 

	
To avoid manufacturing delays at your Authorized   Replicator, your disc manufacturing order must include:
    	
 
    
	
By (sign)
    
	
 
    	
 
    
	
·                  Sales   Territory
    	
Name, Title (Print)
    
	
·                  Hits Program
    	
 
    
	
 
    	
E-Mail Address (for confirmation of receipt)
    
	
 
    	
 
    
	
 
    	
Date (Print mm/dd/yy)
    

 

 

[***] INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO THE RULES APPLICABLE TO SUCH CONFIDENTIAL TREATMENT REQUEST.

Dealpoint#XXXXXXXX

 

EXHIBIT 10
 XBOX 360 ROYALTY TIER SELECTION FORM FOR MULTI-GAME PACK PROGRAM (MGPP) REQUEST

 

Please complete, sign the form, and submit via email to 3PPOPS@MICROSOFT.COM with CC to your Account Manager.

 

A.                                    This form must be submitted at least [***] business days prior to the 1st manufacturing order being placed for the software title(s) for each respective Sales Territory.  If this form is not submitted on time or is rejected by Microsoft, orders will be held from manufacturing until such time MS has approved and configured their systems to accept the Multi-Game Pack request.

B.                                    A separate form must be submitted for each Title, Sales Territory and Multi-Game Pack request

 

	
Publisher Name:
    	
Publisher Requested Game Pack Name:
    

 

1.              All Xbox 360 Software Title Names included in the Multi Game Pack (MGP):

	
Title
    	
 
    	
Complete XeMID(s):
    	
 
    	
Number
   of Discs
    	
 
    	
Titles that are Hits
   or qualify for Hits?
    	
 
    	
Have any of the titles
   been in the MGPP
   within the last 12 mos?
    	
 
    	
Are any of the titles
   Kinect required?
    
	
Title 1
    	
 
    	
 
    	
 
    	
 
    	
 
    	
o Yes
    	
o No
    	
 
    	
o Yes 
    	
o No
    	
 
    	
o Yes 
    	
o No
    
	
Title 2
    	
 
    	
 
    	
 
    	
 
    	
 
    	
o Yes
    	
o No
    	
 
    	
o Yes 
    	
o No
    	
 
    	
o Yes 
    	
o No
    
	
Title 3
    	
 
    	
 
    	
 
    	
 
    	
 
    	
o Yes
    	
o No
    	
 
    	
o Yes 
    	
o No
    	
 
    	
o Yes 
    	
o No
    

Please discuss with your AM and use additional space if your Multi-Game Pack will exceed [***] titles.

 

2.

	
o MGP will consist of a maximum of one (1) XBLA or Games on Demand   Token. Title Name:
    	
 
    	
Quantities of XBLA or Games on Demand Tokens to   be Ordered:
    	
 
    	
Offer ID:
    

Please contact your Account Manager [***] business days before you submit this form.  No token fees will be imposed if your Account Manager places the order for the XBLA or Games on Demand tokens to be included in the MGP.

No refunds or credits will be made if Publisher is invoiced token fees for orders previously placed by Publisher or Publisher places the token orders.

 

3.              Authorized Replicators to be used: Please reference MGPP when placing orders with Authorized Replicator(s)

	
Expected MFG Date:
    	
Volume Forecast:
    

Authorized Replicator(s) to be used:

·                  Please reference MGPP when placing orders with Authorized Replicator(s).

·                  Please refer to the Publisher Guide for a list of Authorized Replicators.

·                  If using more than one Authorized Replicator for the initial order, please list all.

 

4.             Sales Territory (check one):                    o  North America                                              o  Europe                                       o  Japan                                             o  Asia

 

5.              Select the MGPP Royalty Tier:  The royalty rate is based on the WSP/SRP of the full packaged product.

	
o Multi-Game Tier 1
    WSP: [***] + (NA & Asia); [***] +   (Europe);
  SRP [***] (Japan)
    	
 
    	
o Multi-Game Tier 2
   WSP: Up to [***] (NA & Asia); or [***] (Europe);
   SRP: Up to [***] (Japan)
    	
 
    	
o Multi-Game Tier 3
   WSP: Up to [***] (NA & Asia); Up to [***] (Europe);
   SRP: Up to [***] (Japan)
    	
 
    	
o Multi-Game Tier 4
    WSP: Up to [***] (NA & Asia); Up   to [***] (Europe);
   SRP: Up to [***] (Japan)
    

If the Multi-Game Pack exceeds [***] titles, each additional title will be charged an additional royalty equivalent to Hits Tier [***] as established in Tables 1 & 2, Exhibit 1, Section 1 of the Xbox 360 Publisher License Agreement.

·                  MGPP FPUs will only accumulate with the MGPP sku towards volume discounts (not toward individual Software Titles)

·                  MGPP FPUs will not accumulate towards Hits / Platinum eligibility (for the MGPP sku nor individual Software Titles)

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.

 

	
To avoid manufacturing delays at your Authorized   Replicator, your disc manufacturing order must indicate the intended Sales   Territory and Program reference below:
    	
 
    
	
By (sign)
    
	
 
    
	
 
    	
Name, Title (Print)
    
	
Program = Multi-Game Pack Program (MGPP)
    	
 
    
	
 
    	
E-Mail Address (for confirmation of receipt
    
	
 
    	
 
    
	
 
    	
Date (Print mm/dd/yy)

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