{"id":42971,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/xbox-publisher-license-agreement-microsoft-corp-and-bay-area.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"xbox-publisher-license-agreement-microsoft-corp-and-bay-area","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/operations\/xbox-publisher-license-agreement-microsoft-corp-and-bay-area.html","title":{"rendered":"Xbox Publisher License Agreement &#8211; Microsoft Corp. and Bay Area Multimedia Inc."},"content":{"rendered":"<pre>                                               Consumer Group Contract No. 19355\n\n                        (Confidential Portions Omitted)\n\n                             MICROSOFT CORPORATION\n                      XBOX(TM) PUBLISHER LICENSE AGREEMENT\n\nThis License Agreement (the \"Agreement\") is entered into and effective as of\nNov. 28, 2000 (the \"Effective Date\") by and between MICROSOFT CORPORATION, a\nWashington corporation (\"Microsoft\"), and BAY AREA MULTI MEDIA, INC., a Delaware\ncorporation (\"Licensee\").\n\n     A.   Whereas, Microsoft develops and licenses a computer game system, \nknown as the Xbox(TM) game system; and\n\n     B.   Whereas, Licensee is an experienced publisher of software products \nthat wishes to develop and\/or publish one or more software products running on \nthe Xbox game system, and to license proprietary materials from Microsoft, on \nthe terms and conditions set forth herein.\n\nAccordingly, for and in consideration of the mutual covenants and conditions \ncontained herein, and for other good and valuable consideration, receipt of \nwhich each party hereby acknowledges, Microsoft and Licensee agree as follows:\n\n1.   DEFINITIONS.  For the purposes of this Agreement, the following terms will \nhave the respective indicated meanings.\n\n     1.1  \"Art &amp; Marketing Materials\" shall mean art and mechanical formats for\na Software Title including the retail packaging, end user instruction manual\nwith end user license agreement and warranties, Finished Product Unit media\nlabel, and any promotional inserts and other materials that are to be included\nin the retail packaging, as well as all press releases, marketing, advertising\nor promotional materials related to the Software Title and\/or Finished Product\nUnits (including without limitation web advertising and Licensee's web pages to\nthe extent they refer to the Software Title(s) or the Finished Product Units).\n\n     1.2  \"Authorized Replicator\" shall mean a software replicator certified and\napproved by Microsoft for replication of games that run on Xbox. Upon Licensee's\nwritten request, Microsoft will provide Licensee with a copy of the then-current\nlist of Authorized Replicators, but the status of a particular replicator and\nsuch list may change from time to time in Microsoft's sole and absolute\ndiscretion.\n\n     1.3  \"Branding Specifications\" shall mean the specifications in Exhibit C, \nand such other design specifications as Microsoft may hereafter provide from \ntime to time, for using the Licensed Trademarks on a Software Title and\/or on \nrelated product packaging, documentation, and other materials.\n\n     1.4  \"Commercial Release\" shall mean (a) with respect to Xbox, the first\ndistribution of an Xbox to the public for payment, and (b) with respect to a\nSoftware Title, the earlier of the first distribution of the Software Title for\npayment or distribution of Finished Product Units that are not designated as\nbeta or prerelease versions.\n\n     1.5  \"Finished Product Unit\" shall mean a DVD-9 copy, in software object \ncode only, of a Software Title, in whole or in part.\n\n     1.6  \"Licensed Trademarks\" shall mean the Microsoft trademarks depicted in \nExhibit B (which Microsoft unilaterally may modify from time to time during the \nterm of this Agreement upon written notice to Licensee).\n\n                                       1\n\n    \n   2\n                                               Consumer Group Contract No. 19355\n\n     1.7  \"Software Title\" shall mean the single software product as described \nin the applicable Exhibit A (i.e., Exhibit A-1, Exhibit A-2, or Exhibit A-n, as \nthe case may be), developed by Licensee, and running on Xbox. A Software Title \nshall include the improvements and patches thereto (if and to the extent \napproved by Microsoft), but shall not include any \"prequel\" or \"sequel.\" If \nMicrosoft approves one or more additional concept(s) for another single \nsoftware product proposed by Licensee to run on Xbox, pursuant to the procedure \nset forth in Section 2.1.1 below and the Xbox Guide (as defined in Section \n2.1), then upon Microsoft's written approval of such concept, this Agreement, \nand the term \"Software Title,\" shall be broadened automatically to cover the \nrespective new software product and the parties will prepare, initial and \nappend to this Agreement a new Exhibit A-n for each such additional new \nsoftware product.\n\n     1.8  \"Certification Requirements\" shall mean the requirements specified in \nthis Agreement (including without limitation the Xbox Guide) for quality, \ncompatibility, and\/or performance of a Software Title, and, to the extent not \ninconsistent with the foregoing standards, the standards of quality and \nperformance generally accepted in the console game industry.\n\n     1.9  \"Territory\" shall be determined on a Software Title-by-Software Title \nbasis, and shall mean such countries as may be specified in writing by \nMicrosoft when the concept of the applicable Software Title is approved \npursuant to Section 2.1.1 below.\n\n     1.10 \"Xbox\" shall mean the first version (as of the Commercial Release) of \nMicrosoft's Xbox game system, including operating system software and hardware \ndesign specifications.\n\n2.   DEVELOPMENT; DELIVERY; APPROVAL\n\n     2.1  Software Title Development. Licensee's development activities with \nrespect to each Software Title shall be in accordance with the development \nschedule set forth in the applicable Exhibit A-n. Furthermore, Licensee agrees \nto be bound by all provisions contained in the then-applicable version of the \n\"Xbox Guide\", the current version of which Microsoft or its affiliate will \ndeliver to Licensee when it is completed, after the execution of this \nAgreement. Licensee understands and agrees that Microsoft may, in its \ndiscretion, supplement, revise and update the Xbox Guide from time to time and \nthat upon Licensee's receipt of the applicable supplement, revision or updated \nversion, Licensee automatically shall be bound by all provisions of the \nthen-current Xbox Guide; Microsoft will specify in each such supplement, \nrevision or updated version a reasonable effective date of each change if such \nchange or revision is not required to be effective immediately. If Licensee \nproceeds with the development of a Software Title, Licensee shall deliver each \nmilestone (as described in this Section 2.1) to Microsoft for approval in \nwriting. All certification and playtesting (and applicable fees therefor, if \nany) will be in accordance with the then-applicable version of the Xbox Guide. \nIf Microsoft does not approve Licensee's submission for a given milestone then \nLicensee shall either correct the problems that contributed to the lack of \napproval or, if Microsoft gives Licensee written notice to cease development, \nLicensee shall immediately cease all development activities for the applicable \nSoftware Title's subsequent milestones. Each successive milestone shall comply \nin all material respects with the characteristics of previously approved \nmilestones. Each software milestone shall be delivered in compiled object code \nform.\n\n          2.1.1     Concept. Licensee shall deliver to Microsoft a written and \ncompleted concept submission form (in the form provided by Microsoft to \nLicensee), including without limitation: (a) a detailed description of the \nSoftware Title, including but not limited to (to the extent applicable) title, \ntheme, plot, characters, play elements, and technical specifications; (b) the \nidentities of any proposed subcontractors, and general information about the \nprincipal team of individual developers, and (c) an explanation of the design, \ntechnical and marketing suitability of the Software Title. Evaluation of the \nproposed design will be based on criteria including, but not necessarily \nlimited to, the following: (i) originality; (ii) play breadth and depth; (iii) \nplayability; (iv) replayability and long-term interest; and (v) theme, \ncharacters and storyline. Technical evaluation of the concept will be based on \ncriteria including, but not necessarily limited to, feasibility of execution \nand usage of system capabilities (such as graphics, audio, hard drive, play \ncontrol, online capabilities and peripherals). Marketing suitability will be \nevaluated based on criteria including, but not necessarily limited to, the \nfollowing: (i) market viability; (ii) Licensee's\n\n\n                                       2\n   3\n                                               Consumer Group Contract No. 19355\n\n\nmarketing commitment (if any); (iii) suitability to the target demographic; and \n(iv) overall fit with the Xbox certified software products portfolio.\n\n          2.1.2  Preliminary Versions. Licensee may, but will not be required \nto, deliver to Microsoft certain preliminary versions of the Software Title, as \naddressed in the Xbox Guide.\n\n          2.1.3  Feature-Complete Version. Licensee shall deliver to Microsoft \na feature-complete version of the Software Title (the \"Beta Version\"), which \nincludes all features of the Software Title and such other content as may be \nrequired under the Xbox Guide. Concurrently with delivery of the Beta Version, \nLicensee will disclose in writing to Microsoft the details about any and all \nso-called \"hidden characters,\" \"cheats,\" \"easter eggs,\" \"bonus video and\/or \naudio,\" and similar elements included in the Beta Version and\/or intended to be \nincluded in the final release version of the Software Title.\n\n          2.1.4  Final Release Version. Licensee shall deliver to Microsoft, \nLicensee's proposed final release version of the applicable Software Title that \nis complete and ready for manufacture and commercial distribution, with the \nfinal content rating certification, with identified program errors corrected, \nand with any and all changes previously requested by Microsoft implemented. \nHowever, nothing herein will be deemed to relieve Licensee of its obligation to \ncorrect program bugs and errors, whenever discovered (including without \nlimitation after Commercial Release), and Licensee agrees to correct such bugs \nand errors as soon as possible after discovery (provided that, with respect to \nbugs or errors discovered after Commercial Release of the applicable Software \nTitle, Licensee will use commercially reasonable efforts to correct the \nbug\/error in all Finished Product Units manufactured after discovery). In \naddition, Licensee will comply with all certification procedures, guidelines \nand standards set forth in the then-applicable version of the Xbox Guide. \nLicensee shall not distribute the Software Title, nor manufacture any Finished \nProduct Units intended for distribution, unless and until Microsoft shall have \ngiven its final certification and approval of the final release version of the \nSoftware Title, and Microsoft shall have provided the code for the final \nrelease version to the applicable Authorized Replicator(s).\n\n          2.1.5  Playtesting. Microsoft will playtest the Beta Version and \nproposed final release version of each Software Title; if Licensee delivers \npreliminary versions of a Software Title, Microsoft may (but will not be \nobligated to) playtest such versions. Microsoft will provide written comments \nto Licensee regarding the results of its playtest results, and Licensee shall \ncomply with any requests made by Microsoft to improve the applicable Software \nTitle based on such playtest results. Licensee acknowledges that, \nnotwithstanding its receipt of approvals from Microsoft for prior milestones or \nversions during the development process, Licensee's proposed final release \nversion of each Software Title must be approved by Microsoft, as set forth in \nthe Xbox Guide. In addition to conforming with the approved concept, with all \ntechnical specifications, and with all other requirements set by Microsoft \nduring the development and approval process, each Software Title must achieve a \nsatisfactory rating in final playtesting. Notwithstanding anything to the \ncontrary contained herein, Licensee acknowledges and understands that, in part, \nthe results of playtesting will be subjective, that Microsoft will have the \nright to deny final approval based on its determination, and that Licensee has \nand will have no expectation of final approval of any Software Title regardless \nof any approvals or assessments given or made by Microsoft, informally or \nformally, at any time.\n\n          2.1.6  Art &amp; Marketing Materials. Licensee shall deliver to Microsoft \nfor approval all Art &amp; Marketing Materials as and when developed, whether \nduring development activities or thereafter. Licensee shall not distribute any \nspecific Art &amp; Marketing Materials unless and until Microsoft shall have given \nits final certification and approval of the specific item.\n\n     2.2  Content Rating. Licensee understands and agrees that, without \nlimitation, Microsoft will not give final certification and approval of a \nSoftware Title unless and until Licensee shall have obtained, at Licensee's \nsole cost, a rating of no higher than \"Mature (17+)\" or its equivalent from the \nappropriate rating bodies for the applicable Territory (such as, ESRB, ELSPA, \netc.) and\/or any and all other independent content rating authority\/authorities \nreasonably designated by Microsoft. Licensee shall make any changes to the \nSoftware Title required to obtain a rating of no higher than \"Mature (17+)\" (or \nits equivalent). In no\n\n\n                                       3\n   4\n                                               Consumer Group Contract No. 19355\n\n\n\nevent shall Licensee distribute any Software Title under an \"Adults Only\" or \nhigher rating (or equivalent rating). Licensee shall include the applicable \nrating(s) prominently on Finished Product Units, in accordance with the \napplicable rating body guidelines.\n\n     2.3 Development Kit License. Microsoft or its affiliate will offer to \nLicensee the opportunity to enter into one or more development kit licensee(s) \n(each an \"XDK License\") pursuant to which Microsoft would license software \ndevelopment tools and hardware to assist Licensee in the development of \nSoftware Titles, including without limitation certain sample code and other \nredistributable code which Licensee could incorporate into Software Titles, on \nsuch terms and conditions as are contained in the XDK License.\n\n     2.4 Subcontractors. Licensee shall not use any subcontractors or any other\nthird parties to perform software development work in connection with a Software\nTitle unless and until (i) the proposed subcontractor or other third party and\n(ii) Microsoft shall have executed an XDK license; provided that nothing\ncontained herein will be deemed to require Microsoft or its affiliate to execute\nan XDK License with any particular person or entity if Microsoft or its\naffiliate determines that it is not appropriate to execute such an XDK License.\n\n     2.5 Changes of Requirements by Microsoft. Unless otherwise reasonably \nspecified by Microsoft at the respective time: (a) after approval by Microsoft \nof the Beta Version of a Software Title, Licensee will not be obligated to \ncomply, with respect to such Software Title only, with any subsequent changes \nmade by Microsoft to the technical or content requirements for Software Titles \ngenerally in the Xbox Guide; and (b) subject to the immediately preceding \nclause (a), any changes made by Microsoft in Branding Specifications or other \nrequirements after final certification of a Software Title by Microsoft will be \neffective as to such Software Title only on a \"going forward\" basis (i.e., only \nto such Art &amp; Marketing Materials and\/or Finished Product Units as are \nmanufactured after Microsoft notifies Licensee of the change), unless (i) the \nchange can be accommodated by Licensee with insignificant added expense, or \n(ii) Microsoft pays for Licensee's direct, out-of-pocket expenses necessarily \nincurred as a result of its retrospective compliance with the change.\n\n3.   RIGHTS AND RESTRICTIONS\n\n     3.1  Trademarks.\n\n\n          3.1.1 License. In each Software Title, and on each Finished Product \nUnit (and the packaging therefor), Licensee shall incorporate the Licensed \nTrademarks and include credit and acknowledgement to Microsoft as set forth in \nthe Branding Specifications and the Xbox Guide. Microsoft grants to Licensee a \nnon-exclusive, non-transferable, personal license to use the Licensed \nTrademarks, according to the Branding Specifications and other conditions \nherein, and solely in connection with marketing, sale, and distribution in the \nTerritory of Finished Product Units that meet the Certification Requirements.\n\n          3.1.2 Limitations. Licensee is granted no right, and shall not \npurport, to permit any third party to use the Licensed Trademarks in any manner \nwithout Microsoft's prior written consent. Licensee's license to use Licensed \nTrademarks in connection with the Software Title and Finished Product Units \nshall not extend to the merchandising or sale of related or promotional \nproducts under the Licensed Trademarks.\n\n          3.1.3 Branding Specifications. Licensee's use of the Licensed \nTrademarks (including without limitation in Finished Product Unit and Art &amp; Marketing Materials) shall comply with the Branding Specifications in Exhibit \nC. Licensee shall not use Licensed Trademarks in association with any third \nparty trademarks in a manner that might suggest co-branding or otherwise create \npotential confusion as to source or sponsorship of the Software Title or \nFinished Product Units or ownership of the Licensed Trademarks. Upon notice or \nother discovery of any non-conformance with the requirements or\n\n\n\n                                       4\n\n   5\n\n                                               Consumer Group Contract No. 19355\n\n\nprohibitions of this section, Licensee shall promptly remedy such \nnon-conformance and notify Microsoft of the non-conformance and remedial steps \ntaken.\n\n          3.14 Certification Requirements. Licensee may use the Licensed \nTrademarks only in connection with the copies of the Software Title that meet \nthe Certificate Requirements. Licensee shall test the Software Title and \nFinished Product Units for conformance with the Certification Requirements \naccording to generally accepted and best industry practices, and shall keep \nwritten or electronic records of such testing during the term of this Agreement \nand for no less than two (2) years thereafter (\"Test Records\"). Upon \nMicrosoft's request, Licensee shall provide Microsoft with copies of or \nreasonable access to inspect the Test Records, Finished Product Units and \nSoftware Title (either in pre-release or commercial release versions, as \nMicrosoft may request). Upon notice or other discovery of any non-conformance \nwith the Certification Requirements, Licensee shall promptly remedy such \nnon-conformance in all Finished Product Units wherever in the chain of \ndistribution (subject to Sections 2.1.4 and 2.5 above), and shall notify \nMicrosoft of the non-conformance and remedial steps taken.\n\n          3.1.5 Protection of Licensed Trademarks. Licensee shall assist\nMicrosoft in protecting and maintaining Microsoft's rights in the Licensed\nTrademarks, including preparation and execution of documents necessary to\nregister the Licensed Trademarks or record this Agreement, and giving immediate\nnotice to Microsoft of potential infringement of the Licensed Trademarks.\nLicensee shall be reimbursed by Microsoft for all reasonable expenses incurred\nby Licensee in connection with the foregoing. Microsoft shall have the sole\nright to and in its sole discretion may commence, prosecute or defend, and\ncontrol any action concerning the Licensed Trademarks, either in its own name or\nby joining Licensee as a party thereto. Licensee shall not during the Term of\nthis Agreement contest the validity of, by act or omission jeopardize, or take\nany action inconsistent with, Microsoft's rights or goodwill in the Licensed\nTrademarks in any country, including attempted registration of any Licensed\nTrademark, or use or attempted registration of any mark confusingly similar\nthereto.\n\n          3.1.6 Ownership. Licensee acknowledges Microsoft's ownership of all \nLicensed Trademarks, and all goodwill associated with the Licensed Trademarks. \nUse of the Licensed Trademarks shall inure solely to the benefit of Microsoft.\n\n          3.1.7 No Bundling with Unapproved Peripherals, Products or Software. \nLicensee shall not market or distribute any Finished Product Unit bundled with \na peripheral product software or other products, nor shall Licensee knowingly \npermit or assist any third party in such bundling, without Microsoft's prior \nwritten consent.\n\n     3.2  EULA. Licensee shall distribute (directly or indirectly) the Software\nTitle to end users subject to an end user license agreement (\"EULA\") in a form\nto be approved by Microsoft prior to any distribution of the Software Title;\nprovided that, in any event, Licensee's EULA for the Software Title shall (a)\nname Microsoft as a third party beneficiary, with the right to enforce the\nagreement, (b) grant the end user the right to use the Software Title on only\none Xbox console at a time, and (c) forbid the end user from reverse engineering\nor decompiling the Software Title or Xbox. Microsoft will have the right to\nmodify its requirements for the EULA at any time, in its discretion, and\nLicensee shall implement, at its sole cost, all such new requirements as soon as\nreasonably possible after receiving written notice from Microsoft of such\nrequired modifications.\n\n     3.3  No Electronic Transmission; No Online Activities. Licensee shall \ndistribute the Software Title only as embodied in Finished Product Units; \nspecifically, but without limitation, Licensee shall not distribute the \nSoftware Title by any means of electronic transmission without the prior \nwritten approval of Microsoft, which Microsoft may grant or withhold in its \ndiscretion. Furthermore, Licensee will not authorizer or permit any online \nactivities involving the Software Title, including without limitation \nmultiplayer, peer-to-peer and\/or online play, without the prior written \napproval of Microsoft, which Microsoft may grant or withhold in its discretion.\n\n\n                                       5\n\n   6\n                                               Consumer Group Contract No. 19355\n\n     3.4  No Distribution Outside the Territory.  Licensee shall distribute \nFinished Product Units only in the Territory. Licensee shall not directly or \nindirectly export any Finished Product Units from the Territory nor shall \nLicensee knowingly permit or assist any third party in doing so, nor shall \nLicensee distribute Finished Product Units to any person or entity that it has \nreason to believe may re-distribute or sell such Finished Product Units outside \nthe Territory.\n\n     3.5  No Reproduction of Finished Product Units Except by Microsoft or \nAuthorized Replicators. Licensee acknowledges that this Agreement does not \ngrant Licensee the right to reproduce or otherwise manufacture Finished Product \nUnits itself, or on its behalf, other than with Microsoft or an Authorized \nReplicator. Licensee must use Microsoft or an Authorized Replicator to produce \nFinished Product Units, pursuant to Section 4.\n\n     3.6  No Reverse Engineering. Licensee may utilize and study the design, \nperformance and operation of Xbox solely for the purposes of developing the \nSoftware Title. Notwithstanding the foregoing, Licensee shall not, directly or \nindirectly, reverse engineer or aid or assist in the reverse engineering of all \nor any part of Xbox except and only to the extent that such activity is \nexpressly permitted by applicable law notwithstanding this limitation. Reverse \nengineering includes, without limitation, decompiling, disassembly, sniffing, \npeeling semiconductor components, or otherwise deriving source code. In \naddition to any other rights and remedies that Microsoft may have under the \ncircumstances, Licensee shall be required in all cases to pay royalties to \nMicrosoft in accordance with Section 6 below with respect to any games or other \nproducts that are developed, marketed or distributed by Licensee, and derived \nin whole or in part from the reverse engineering of Xbox or any Microsoft data, \ncode or other material.\n\n     3.7  Reservation of Rights. Microsoft reserves all rights not explicitly \ngranted herein.\n\n     3.8  Ownership of the Software Titles. Except for the intellectual \nproperty supplied by Microsoft to Licensee (including without limitation the \nlicenses in the Licensed Trademarks hereunder and the licenses in certain \nsoftware and hardware granted by an XDK License), ownership of which is \nretained by Microsoft, insofar as Microsoft is concerned, Licensee will own all \nrights in and to the Software Titles.\n\n4.   MANUFACTURING\n\n     4.1  Approved Replicators.  Licensee shall retain only an Authorized \nReplicator to manufacture all Finished Product Units.\n\n     4.2  Terms of Use of Authorized Replicator. Licensee will notify Microsoft \nin writing of the identity of the applicable Authorized Replicator and unless \nMicrosoft agrees otherwise, the Agreement for such manufacturing\/replication \nservices shall be as negotiated by Licensee and the applicable Authorized \nReplicator, subject to the following requirements:\n\n          4.2.1  Microsoft, and not Licensee, will provide to the single\napplicable Authorized Replicator the final release version of the Software Title\nand all specifications required by Microsoft for the manufacture of the Finished\nProduct Units (including without limitation the Security Technology (as defined\nin Section 4.4 below); Licensee will be responsible for preparing and delivering\nto the Authorized Replicator all other items required for manufacturing Finished\nProduct Units; and Licensee agrees that all Finished Product Units must be\nreplicated in conformity with all of the quality standards and manufacturing\nspecifications, policies and procedures that Microsoft requires of its\nAuthorized Replicators, and that all so-called \"adders\" must be approved by\nMicrosoft prior to packaging (in accoreway \nSystem.\n\n8.   CONFIDENTIAL INFORMATION\n\n     8.1  Definition. \"Confidential Information\" means information provided to \nLICENSEE by Nintendo or any third party working with Nintendo relating to the \nhardware and software for the GAME BOY ADVANCE system or the Development Tools, \nincluding, but not limited to, (a) all current or future information, know-how, \ntechniques, methods, information, tools, emulator hardware or software, \nsoftware development specifications, and\/or trade secrets, (b) any patents or \npatent applications, (c) any business, marketing or sales data or information, \nand (d) any other information or data relating to development, design, \noperation, manufacturing, marketing or sales. Confidential Information shall \ninclude all confidential information disclosed, whether in writing, orally, \nvisually, or in the form of drawings, technical specifications, software, \nsamples, pictures, models, recordings, or other tangible items which contain or \nmanifest, in any form, the above listed information. Confidential Information \nshall not include (i) data and information which was in the public domain prior \nto LICENSEE's receipt of the same hereunder, or which subsequently becomes part \nof the public domain by publication or otherwise, except by LICENSEE's wrongful \nact or omission, (ii) data and information which LICENSEE can demonstrate, \nthrough written records kept in the ordinary course of business, was in its \npossession without restriction or use or disclosure, prior to its receipt of \nthe same hereunder and was not acquired directly or indirectly from Nintendo \nunder an obligation of confidentiality which is still in force, and (iii) data \nand information which LICENSEE can show was received by it from a third party \nwho did not acquire the same directly or indirectly from Nintendo and to whom \nLICENSEE has no obligation of confidentiality.\n\n     8.2  Disclosures Required by Law. LICENSEE shall be permitted to disclose \nConfidential Information if such disclosure is required by an authorized \ngovernmental or judicial entity, provided that NOA is given Notice thereof at \nleast thirty (30) days prior to such disclosure. LICENSEE shall use its best \nefforts to limit the disclosure to the greatest extent possible consistent with \nLICENSEE's legal obligations, and if required by NOA, shall cooperate in the \npreparation and entry of appropriate protective orders.\n\n     8.3  Disclosure and Use. NOA may provide LICENSEE with highly confidential \ndevelopment information, Guidelines, Development Tools, systems, specifications \nand related resources and information constituting and incorporating the \nConfidential Information to assist LICENSEE in the \n\n\n                                                                          PAGE 7\n\n   8\ndevelopment of Games. LICENSEE agrees to maintain all Confidential Information \nas strictly confidential and to use such Confidential Information only in \naccordance with this Agreement. LICENSEE shall limit access to the Confidential \nInformation to LICENSEE's employees having a strict need to know and shall \nadvise such employees of their obligation of confidentiality as provided \nherein. LICENSEE shall require each such employee to retain in confidence the \nConfidential Information pursuant to a written non-disclosure agreement between \nLICENSEE and such employee. LICENSEE shall use its best efforts to ensure that \nits employees working with or otherwise having access to Confidential \nInformation shall not disclose or make any unauthorized use of the Confidential \nInformation.\n\n     8.4  No Disclosure to Independent Contractors. LICENSEE shall not disclose \nthe Confidential Information to any Independent Contractor without the prior \nwritten consent of NOA. Any Independent Contractor seeking access to \nConfidential Information shall be required to enter into a written \nnon-disclosure agreement with NOA prior to receiving any access to or \ndisclosure of the Confidential Information from either LICENSEE or NOA.\n\n     8.5  Agreement Confidentiality. LICENSEE agrees that the terms, conditions \nand contents of this Agreement shall be treated as Confidential Information. \nAny public announcement or press release regarding this Agreement or the \nrelease dates for Games developed by LICENSEE under this Agreement shall be \nsubject to NOA's prior written approval. The parties may disclose this \nAgreement (a) to accountants, banks, financing sources, lawyers, parent \ncompanies and related parties under substantially equivalent confidentiality \nobligations, (b) in connection with any formal legal proceeding for the \nenforcement of this Agreement, (c) as required by the regulations of the \nSecurities and Exchange Commission (\"SEC\"), provided that all Confidential \nInformation regarding NOA shall be redacted from such disclosures to the \nmaximum extent allowed by the SEC, and (d) in response to lawful process, \nsubject to a written protective order approved in advance by  Software Titles contact \ninformation (including without limitation Licensee's street address and \ntelephone number, and the applicable individual\/group responsible for customer \nsupport). Such end user support will be consistent with the then-applicable \nconsole game industry standards. Licensee acknowledges and agrees that \nMicrosoft will have no support responsibilities whatsoever to end users of the \nSoftware Title or with Respect to Finished Product Units.\n\n     5.2  Art &amp; Marketing Materials.  In accordance with Section 2.1.6 above, \nLicensee shall submit all Art &amp; Marketing Materials to Microsoft, and Licensee \nshall not distribute such Art &amp; Marketing Materials unless and until Microsoft \nhas approved them in writing. Prior to publication of any Art &amp; Marketing \nMaterials, Licensee agrees to incorporate all changes relating to use of the \nLicensed Trademarks that Microsoft may request, and will use its commercially \nreasonable efforts to incorporate other changes reasonably suggested by \nMicrosoft (provided, however, that Licensee shall at all times comply with the \nrequirements set forth in the Branding Specifications and\/or the Xbox Guide).\n\n     5.3  Warranty.  Licensee shall provide the original end user of any \nFinished Product Unit a minimum ninety (90) day limited warranty that the \nFinished Product Unit will perform in accordance with its user documentation or \nLicensee will provide a replacement Finished Product Unit at no charge.\n\n     5.4  Recall.  Notwithstanding anything to the contrary contained in this \nAgreement (including without limitation Section 2.1.4), in the event of a \nmaterial defect in a Software Title and\/or any Finished Product Units, which \ndefect in the reasonable judgement of Microsoft would significantly impair the \nability of an end user to play such Software Title or Finished Product Unit, \nMicrosoft may require Licensee to recall Finished Product Units and undertake \nprompt repair or replacement of such Software Title and\/or Finished Product \nUnits. Microsoft shall also entertain in good faith any proposals by Licensee of\nadditional or alternative remedial measures to effectively address such \nsituation.\n\n     5.5  Software Title License.  Subject to third party rights of which \nLicensee shall have informed Microsoft in writing at the time of delivery of \nthe feature-complete version of the applicable Software Title, Licensee hereby \ngrants to Microsoft a fully-paid, royalty-free, non-exclusive license (i) to \npublicly perform the Software Titles at conventions, events, trade shows, press \nbriefings, and the like; and (ii) to use the title of the Software Title, and \nscreen shots from the Software Title, in advertising and promotional material \nrelating to Xbox and related Microsoft products and services, as Microsoft may \nreasonably deem appropriate.\n\n6.   PAYMENTS\n\n     6.1  Royalties.  Licensee shall pay Microsoft royalties, on a Software \nTitle-by-Software Title basis, for each Finished Product Unit manufactured, in \naccordance with the following table:\n\n<\/pre>\n<table>\n<caption>\n     FINISHED PRODUCT UNITS MANUFACTURED     ROYALTY PER APPLICABLE FINISHED PRODUCT UNIT<br \/>\n     &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;     &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<br \/>\n                                                             US DOLLARS<br \/>\n                                                             &#8212;&#8212;&#8212;-<br \/>\n                                                                YEN<br \/>\n                                                                &#8212;<br \/>\n                                                               EUROS<br \/>\n                                                               &#8212;&#8211;<\/p>\n<p>             <s>                                              <c><br \/>\n             Units [*]                                          [*]<br \/>\n                                                                [*]<br \/>\n                                                                [*]<br \/>\n<\/c><\/s><\/caption>\n<\/table>\n<p>                                       8<\/p>\n<p>* Confidential Portions Omitted and Filed Separately with the Commission.<\/p>\n<p>   9<br \/>\n                                               Consumer Group Contract No. 19355<\/p>\n<table>\n<caption>\nFINISHED PRODUCT UNITS MANUFACTURED     ROYALTY PER APPLICABLE FINISHED PRODUCT UNIT<br \/>\n&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;     &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<br \/>\n<s>                                     <c><br \/>\n                                                         US DOLLARS<br \/>\n                                                         &#8212;&#8212;&#8212;-<br \/>\n                                                            YEN<br \/>\n                                                            &#8212;<br \/>\n                                                           EUROS<br \/>\n                                                           &#8212;&#8211;<br \/>\n       Units [*]                                             [*]<br \/>\n                                                             [*]<br \/>\n                                                             [*]<\/p>\n<p>     Units [*]                                               [*]<br \/>\n                                                             [*]<br \/>\n                                                             [*]<\/p>\n<p>       Units [*]                                             [*]<br \/>\n                                                             [*]<br \/>\n                                                             [*]<br \/>\n<\/c><\/s><\/caption>\n<\/table>\n<p>Notwithstanding the foregoing, no royalties will be payable hereunder with<br \/>\nrespect to any Demo Finished Product Units. For the purposes hereof, a &#8220;Demo<br \/>\nFinished Product Unit&#8221; will mean a Finished Product Unit that (i) contains only<br \/>\na small portion of the applicable Software Title, (ii) is provided to end users<br \/>\nonly to advertise or promote the applicable Software Title (although it may<br \/>\ninclude demonstration versions of other games for Xbox published by Licensee),<br \/>\n(iii) is manufactured in a number of units that has been approved in advance by<br \/>\nMicrosoft, which approval Microsoft agrees not to unreasonably withhold, and<br \/>\n(iv) is distributed free or with a suggested retail price of not more than<br \/>\nUS$[*].<\/p>\n<p>     6.2  Royalty Payments. Licensee shall have the option of paying the above<br \/>\nroyalties in US Dollars, Japanese Yen or Euros, according to the terms of this<br \/>\nSection. By designating the appropriate box below, Licensee may choose to pay<br \/>\nroyalties on either a &#8220;Worldwide&#8221; or &#8220;Regional&#8221; basis. Such designation shall<br \/>\nbe binding throughout the term of this Agreement for all of Licensee&#8217;s Software<br \/>\nTitles. If Licensee elects to pay on a Worldwide basis, it shall pay royalties<br \/>\nin US Dollars regardless of where the Finished Product Units are distributed or<br \/>\nmanufactured. If Licensee elects to pay on a Regional basis, it shall pay<br \/>\nroyalties in US Dollars, Japanese Yen or Euros in accordance with the table set<br \/>\nforth in Section 6.1 but subject to the rest of this Section 6.2:<\/p>\n<p>          (i)   If the Authorized Replicator manufacturing the Finished Product<br \/>\nUnits is located in Japan, Singapore, Malaysia or Taiwan, Licensee shall pay<br \/>\nits royalty denominated in Japanese Yen for such Finished Product Units.<\/p>\n<p>          (ii)  If the Authorized Replicator manufacturing the Finished Product<br \/>\nUnits is located in a member country of the European Union, Licensee shall pay<br \/>\nits royalty denominated in Euros for such Finished Product Units.<\/p>\n<p>          (iii) If the Authorized Replicator manufacturing the Finished Product<br \/>\nUnits is located in any other country or region of the world, Licensee shall<br \/>\npay its royalty denominated in US Dollars for such Finished Product Units.<\/p>\n<p>Notwithstanding the foregoing, in the event the conversion ratio for either Yen<br \/>\nor Euros to Dollars, as described in the US edition of the Wall Street Journal,<br \/>\nfalls outside the foreign exchange trading range as set forth in the chart<br \/>\nbelow, for a period of time greater than 30 consecutive days, Microsoft may then<br \/>\nreadjust the royalty amounts set forth in Section 6.1 for that currency. Such<br \/>\nreadjustments shall be made in Microsoft&#8217;s good faith discretion according to<br \/>\nits normal practices.<\/p>\n<p>                                       9<\/p>\n<p>* Confidential Portions Omitted and Filed Separately with the Commission.<\/p>\n<p>   10<\/p>\n<p>                                               Consumer Group Contract No. 19355<\/p>\n<table>\n<caption>\n                     YEN\/EURO TO US DOLLAR TRADING RANGE<\/p>\n<p>                                       MINIMUM         MAXIMUM<br \/>\n                                       &#8212;&#8212;-         &#8212;&#8212;-<br \/>\n<s>                                    <c>             <c><br \/>\nYen                                       [*]             [*]<br \/>\nEuros                                     [*]             [*]<br \/>\n<\/c><\/c><\/s><\/caption>\n<\/table>\n<p>                 [ ]        Worldwide            (initials)<br \/>\n                                      &#8212;&#8212;&#8212;&#8211;<\/p>\n<p>                 [X]        Regional  [INITIALED] (initials)<br \/>\n                                      &#8212;&#8212;&#8212;&#8211;<\/p>\n<p>     6.3  Payment Process. After its receipt from the applicable Authorized<br \/>\nReplicator(s) of each monthly statement of Finished Product Units manufactured,<br \/>\nMicrosoft will invoice Licensee for the amount owed to Microsoft pursuant to<br \/>\nSection 6.1 above based upon the applicable statement. Licensee shall pay to<br \/>\nMicrosoft the full amount invoiced within thirty (30) calendar days after the<br \/>\ndate of the respective invoice. Payment will be made by wire transfer, in<br \/>\nimmediately available funds, to an account, and in accordance with a reasonable<br \/>\nprocedure, to be specified in writing by Microsoft.<\/p>\n<p>     6.4  Audit. Licensee shall keep all usual and proper records related to its<br \/>\nperformance (and any subcontractor&#8217;s performance) under this Agreement,<br \/>\nincluding support for any cost borne by or income due to Microsoft, for a<br \/>\nminimum period of three (3) years from the date they are created. Such records,<br \/>\nbooks of account, and entries shall be kept in accordance with generally<br \/>\naccepted accounting principles. Microsoft reserves the right, upon twenty-four<br \/>\n(24) hours&#8217; notice, to audit Licensee&#8217;s records and consult with Licensee&#8217;s<br \/>\naccountants for the purpose of verifying Licensee&#8217;s compliance with the terms of<br \/>\nthis Agreement and for a period of two (2) years thereafter. Any such audit<br \/>\nshall be made by Microsoft&#8217;s internal audit team or any Microsoft designee, and<br \/>\nshall be conducted during regular business hours at the Licensee&#8217;s (or any<br \/>\napplicable subcontractor&#8217;s) offices. Any such audit shall be paid for by<br \/>\nMicrosoft unless material discrepancies are disclosed. &#8220;Material&#8221; shall mean [*]<br \/>\nof the royalties due to Microsoft within the audit period. If material<br \/>\ndiscrepancies are disclosed, Licensee agrees to pay Microsoft for the costs<br \/>\nassociated with the audit, as well as reimburse Microsoft for all over-charged<br \/>\namounts, plus interest at a rate of 12% per annum.<\/p>\n<p>     6.5  Taxes.<\/p>\n<p>          6.5.1 The royalties to be paid by Licensee to Microsoft herein do not<br \/>\ninclude any foreign, U.S. federal, state, local, municipal or other governmental<br \/>\ntaxes, customs and other duties, levies, fees, excises or tariffs, arising as a<br \/>\nresult of or in connection with the transactions contemplated under this<br \/>\nAgreement including, without limitation, any state or local sales or use taxes<br \/>\nor consumption tax or any value added tax or business transfer tax now or<br \/>\nhereafter imposed on the provision of goods and services to Licensee by<br \/>\nMicrosoft under this Agreement, regardless of whether the same are separately<br \/>\nstated by Microsoft (all such taxes and other charges being referred to herein<br \/>\nas &#8220;Taxes&#8221;). All Taxes (and any penalties, interest, or other additions to any<br \/>\nTaxes), with the exception of taxes imposed on Microsoft&#8217;s net income or with<br \/>\nrespect to Microsoft&#8217;s property ownership, shall be the financial responsibility<br \/>\nof Licensee. Licensee agrees to indemnify, defend and hold Microsoft harmless<br \/>\nfrom any such Taxes or claims, causes of action, costs (including without<br \/>\nlimitation, reasonable attorneys&#8217; fees) and any other liabilities of any nature<br \/>\nwhatsoever related to such Taxes.<\/p>\n<p>          6.5.2 Licensee will pay all applicable value added, sales and use<br \/>\ntaxes and other taxes levied on it by a duly constituted and authorized taxing<br \/>\nauthority on the XDKs or any transaction related thereto in each country in<br \/>\nwhich the services and\/or property are being provided or in which the<br \/>\ntransactions contemplated hereunder are otherwise subject to tax, regardless of<br \/>\nthe method of delivery. Any taxes that are owed by Licensee, (i) as a result of<br \/>\nentering into this Agreement and the payment of the fees hereunder, (ii) are<br \/>\nrequired or permitted to be collected from Licensee by Microsoft under<br \/>\napplicable law, and (iii) are based upon the amounts payable under this<br \/>\nAgreement (such taxes described in (i), (ii), and (iii) above the &#8220;Collected<br \/>\nTaxes&#8221;), shall be remitted by Licensee to Microsoft, whereupon, upon request,<br \/>\nMicrosoft shall <\/p>\n<p>                                       10<\/p>\n<p>* Confidential Portions Omitted and Filed Separately with the Commission.<\/p>\n<p>   11<br \/>\n                                               Consumer Group Contract No. 19355<\/p>\n<p>provide to Licensee tax receipts or other evidence indicating that such<br \/>\nCollected Taxes have been collected by Microsoft and remitted to the<br \/>\nappropriate taxing authority. Licensee may provide to Microsoft an exemption<br \/>\ncertificate acceptable to Microsoft and to the relevant taxing authority<br \/>\n(including without limitation a resale certificate) in which case, after the<br \/>\ndate upon which such certificate is received in proper form, Microsoft shall<br \/>\nnot collect the taxes covered by such certificate.<\/p>\n<p>            6.5.3 If, after a determination by foreign tax authorities, any<br \/>\ntaxes are required to be withheld, on payments made by Licensee to Microsoft,<br \/>\nLicensee may deduct such taxes from the amount owed Microsoft and pay them to<br \/>\nthe appropriate taxing authority; provided however, that Licensee shall<br \/>\npromptly secure and deliver to Microsoft an official receipt for any such taxes<br \/>\nwithheld or other documents necessary to enable Microsoft to claim a U.S.<br \/>\nForeign Tax Credit. Licensee will make certain that any taxes withheld are<br \/>\nminimized to the extent possible under applicable law.<\/p>\n<p>            6.5.4 This tax Section 6.5 shall govern the treatment of all taxes<br \/>\narising as a result of or in connection with this Agreement notwithstanding any<br \/>\nother section of this Agreement.<\/p>\n<p>7.    NON-DISCLOSURE; ANNOUNCEMENTS<\/p>\n<p>      7.1   Non-Disclosure Agreement. The information, materials and software<br \/>\nexchanged by the parties hereunder or under an XDK License, including the terms<br \/>\nand conditions hereof and of the XDK License, shall be subject to the<br \/>\nNon-Disclosure Agreement between the parties attached hereto and incorporated<br \/>\nherein by reference as Exhibit D.<\/p>\n<p>      7.2   Public Announcements. The parties contemplate that they will<br \/>\ncoordinate the issuance of initial press releases, or a joint press release,<br \/>\nannouncing the relationship established by the execution of this Agreement.<br \/>\nHowever, neither party shall issue any such press release or make any such<br \/>\npublic announcement(s) without the express prior consent of the other party,<br \/>\nwhich consent will not be unreasonably withheld or delayed. Furthermore, the<br \/>\nparties agree to use their commercially reasonable efforts to coordinate in the<br \/>\nsame manner any subsequent press releases and public announcements relating to<br \/>\ntheir relationship hereunder prior to the issuance of the same. Nothing<br \/>\ncontained in this Section 7.2 will relieve Licensee of any other obligations it<br \/>\nmay have under this Agreement, including without limitation its obligations to<br \/>\nseek and obtain Microsoft approval of Art &amp; Marketing Materials.<\/p>\n<p>      7.3   Required Public Filings. Notwithstanding Sections 7.1 and 7.2, the<br \/>\nparties acknowledge that this Agreement, or portions thereof, may be required<br \/>\nunder applicable law to be disclosed, as part of or an exhibit to a party&#8217;s<br \/>\nrequired public disclosure documents. If either party is advised by its legal<br \/>\ncounsel that such disclosure is required, it will notify the other in writing<br \/>\nand the parties will jointly seek confidential treatment of this Agreement to<br \/>\nthe maximum extent reasonably possible, in documents approved by both parties<br \/>\nand filed with the applicable governmental or regulatory authorities, and\/or<br \/>\nMicrosoft will prepare a redacted version of this Agreement for filing.<\/p>\n<p>8.    TERM AND TERMINATION<\/p>\n<p>      8.1 Term. The term of this Agreement shall commence on the Effective Date<br \/>\nand unless terminated earlier as provided herein, shall continue until three<br \/>\n(3) years after Commercial Release of Xbox.<\/p>\n<p>      8.2   Termination for Breach. In the event either party shall materially<br \/>\nfail to perform or comply with this Agreement or any provision thereof, and<br \/>\nfail to remedy the default within fifteen (15) days after the receipt of notice<br \/>\nto that effect, then the other party shall have the right, at its sole option<br \/>\nand upon written notice to the defaulting party, to terminate this Agreement<br \/>\nupon written notice. Any notice of default hereunder shall be prominently<br \/>\nlabeled &#8220;NOTICE OF DEFAULT&#8221;; provided, however, that if the default is of<br \/>\nSection 3 or 7.1 above, or an XDK License, then the non-defaulting party may<br \/>\nterminate this Agreement immediately upon written notice, without being<br \/>\nobligated to provide a fifteen-day cure period. The rights and remedies<br \/>\nprovided in this Section shall not be exclusive and are in addition to any<br \/>\nother rights and remedies provided by law or this Agreement. If the uncured<br \/>\ndefault is related to a particular<\/p>\n<p>                                       11<br \/>\n   12<br \/>\n                                               Consumer Group Contract No. 19355<\/p>\n<p>Software Title, then the party not in default will have the right, in its<br \/>\ndiscretion, to terminate this Agreement in its entirety or with respect to the<br \/>\napplicable Software Title.<\/p>\n<p>     8.3  Termination for Creative Reasons. In the event that Microsoft<br \/>\ndetermines, at any time prior to the Commercial Release of a Software Title,<br \/>\nthat such Software Title does not comply with the requirements set forth in the<br \/>\nXbox Guide, and Licensee fails to remedy the noncompliance within fifteen (15)<br \/>\ndays after the receipt of notice to that effect, then Microsoft will have the<br \/>\nright to terminate this Agreement, without cost or penalty, upon written notice<br \/>\nto Licensee solely with respect to such Software Title, in Microsoft&#8217;s sole<br \/>\ndiscretion and notwithstanding any prior approvals given by Microsoft pursuant<br \/>\nto Section 2 above.<\/p>\n<p>     8.4  Effect of Termination; Sell-off Rights. Upon termination or expiration<br \/>\nof this Agreement, Licensee shall have no further right to exercise the rights<br \/>\nlicensed hereunder or otherwise acquired in relation to this Agreement and shall<br \/>\npromptly return any and all copies of the Licensed Trademarks. Licensee shall<br \/>\nhave a period of six (6) months following expiration of this Agreement, or<br \/>\ntermination for a reason other than Licensee&#8217;s breach, to sell-off its inventory<br \/>\nof Finished Product Units existing as of the date of termination or expiration,<br \/>\nafter which sell-off period Licensee immediately shall destroy all Finished<br \/>\nProduct Units then in its possession or under its control. All of Licensee&#8217;s<br \/>\nobligations under this Agreement shall continue to apply during such six-month<br \/>\nsell-off period. If this Agreement is terminated due to Licensee&#8217;s breach,<br \/>\nLicensee shall immediately destroy all Finished Product Units not yet<br \/>\ndistributed to Licensee&#8217;s distributors, dealers and\/or end users. If requested<br \/>\nby Microsoft in writing, Licensee will deliver to Microsoft the written<br \/>\ncertification by an officer of Licensee confirming the destruction of Finished<br \/>\nProduct Units required hereunder.<\/p>\n<p>     8.5  Survival. The following provisions shall survive termination of this<br \/>\nAgreement: 1, 3.6, 5.1, 5.3, 5.4, 6, 7, 8.4, 8.5, 9, 10, 11 and 12.<\/p>\n<p>9.   WARRANTIES<\/p>\n<p>     9.1  Licensee. Licensee warrants and represents that:<\/p>\n<p>          9.1.1     It has the full power to enter into this Agreement;<\/p>\n<p>          9.1.2     It has not previously and will not grant any rights to any<br \/>\nthird party that are inconsistent with the rights granted to Microsoft herein;<br \/>\nand<\/p>\n<p>          9.1.3     The Software Title, Finished Product Units, Art &amp; Marketing<br \/>\nMaterials (excluding those portions that consist of the Licensed Material,<br \/>\nLicensed Trademarks, and redistributable components of the so-called &#8220;XDK&#8221; in<br \/>\nthe form as delivered to Licensee by Microsoft pursuant to an XDK License) do<br \/>\nnot and will not infringe upon or misappropriate any third party trade secrets,<br \/>\ncopyrights, trademarks, patents, publicity, privacy or other proprietary rights.<\/p>\n<p>     9.2  Microsoft. Microsoft warrants and represents that:<\/p>\n<p>          9.2.1     It has the full power to enter into this Agreement; and<\/p>\n<p>          9.2.2     It has not previously and will not grant any rights to any<br \/>\nthird party that are inconsistent with the rights granted to Licensee herein.<\/p>\n<p>     9.3  DISCLAIMER. EXCEPT AS EXPRESSLY STATED IN THIS SECTION 9, MICROSOFT<br \/>\nPROVIDES ALL MATERIALS (INCLUDING WITHOUT LIMITATION THE SECURITY TECHNOLOGY)<br \/>\nAND SERVICES HEREUNDER ON AN &#8220;AS IS&#8221; BASIS, AND MICROSOFT DISCLAIMS ALL OTHER<br \/>\nWARRANTIES UNDER THE APPLICABLE LAWS OF ANY COUNTRY, EXPRESS OR IMPLIED,<br \/>\nREGARDING THE MATERIALS AND SERVICES IT PROVIDES HEREUNDER, INCLUDING ANY<br \/>\nIMPLIED WARRANTIES OF MERCHANTABILITY,<\/p>\n<p>                                       12<br \/>\n   13<br \/>\n                                               Consumer Group Contract No. 19355<\/p>\n<p>FITNESS FOR A PARTICULAR PURPOSE, OR WARRANTY OF FREEDOM FROM COMPUTER VIRUSES.<br \/>\nWITHOUT LIMITATION, MICROSOFT PROVIDES NO WARRANTY OF NON-INFRINGEMENT.<\/p>\n<p>        9.4     LIMITATION OF LIABILITY. THE MAXIMUM LIABILITY OF MICROSOFT TO<br \/>\nLICENSEE OR ANY THIRD PARTY ARISING OUT OF THIS AGREEMENT SHALL BE THE TOTAL<br \/>\nAMOUNTS RECEIVED BY MICROSOFT HEREUNDER. FURTHERMORE, UNDER NO CIRCUMSTANCES<br \/>\nSHALL MICROSOFT BE LIABLE TO LICENSEE FOR ANY DAMAGES WHATSOEVER WITH RESPECT TO<br \/>\nANY CLAIMS RELATING TO THE SECURITY TECHNOLOGY AND\/OR ITS AFFECT ON ANY SOFTWARE<br \/>\nTITLE.<\/p>\n<p>10.     INDEMNITY<\/p>\n<p>        10.1    Indemnification. A claim for which indemnity may be sought<br \/>\nhereunder shall be referred to as a &#8220;Claim.&#8221;<\/p>\n<p>                10.1.1  Mutual Indemnification. Each party hereby agrees to<br \/>\nindemnify, defend and hold the other party harmless from any and all claims,<br \/>\ndemands, costs, liabilities, losses, expenses and damages (including reasonable<br \/>\nattorneys&#8217; fees, costs, and expert witnesses&#8217; fees) arising out of or in<br \/>\nconnection with any claim that, taking the claimant&#8217;s allegations to be true,<br \/>\nwould result in a breach by the indemnifying party of any of its warranties and<br \/>\ncovenants set forth in Section 9.<\/p>\n<p>                10.1.2  Additional Licensee Indemnification Obligation. Licensee<br \/>\nfurther agrees to indemnify, defend and hold Microsoft harmless from any and all<br \/>\nclaims, demands, costs, liabilities, losses, expenses and damages (including<br \/>\nreasonable attorneys&#8217; fees, costs, and expert witnesses&#8217; fees) arising out of or<br \/>\nin connection with any claim regarding any Software Title or Finished Product<br \/>\nUnit, including without limitation any claim relating to quality, performance,<br \/>\nsafety or conformance with the Certification Requirements, or arising out of<br \/>\nLicensee&#8217;s use of the Licensed Trademarks in breach of this Agreement.<\/p>\n<p>        10.2    Notice and Assistance. The indemnified party shall: (i) provide<br \/>\nthe indemnifying party reasonably prompt notice in writing of any Claim and<br \/>\npermit the indemnifying party to answer and defend such Claim through counsel<br \/>\nchosen and paid by the indemnifying party; and (ii) provide information,<br \/>\nassistance and authority to help the indemnifying party defend such Claim. The<br \/>\nindemnified party may participate in the defense of any Claim at its own<br \/>\nexpense. The indemnifying party will not be responsible for any settlement made<br \/>\nby the indemnified party without the indemnifying party&#8217;s written permission,<br \/>\nwhich will not be unreasonably withheld or delayed. In the event the<br \/>\nindemnifying party and the indemnified party agree to settle a Claim, the<br \/>\nindemnified party agrees not to publicize the settlement without first obtaining<br \/>\nthe indemnifying party&#8217;s written permission.<\/p>\n<p>        10.3    Insurance. Prior to distribution of any Software Title, Licensee<br \/>\nat its sole cost and expense shall have endorsed Microsoft as an additional<br \/>\ninsured on Licensee&#8217;s media perils errors and omissions liability policy for<br \/>\nclaims arising in connection with production, development and distribution of<br \/>\neach Software title in an amount no less than $5,000,000 on a per occurrence or<br \/>\nper incident basis. Coverage provided to Microsoft under the policy shall be<br \/>\nprimary to and not contributory with any insurance maintained by Microsoft. Upon<br \/>\nrequest, Licensee agrees to furnish copies of the additional insured endorsement<br \/>\nand\/or a certificate of insurance evidencing compliance with this requirement.<\/p>\n<p>                                       13<br \/>\n   14<br \/>\n                                               Consumer Group Contract No. 19355<\/p>\n<p>11.  PROTECTION OF PROPRIETARY RIGHTS<\/p>\n<p>     11.1  Microsoft Intellectual Property. In the event Licensee learns of any<br \/>\ninfringement or imitation of the Licensed Trademarks, the Software Title or the<br \/>\nFinished Product Units, or the proprietary rights in or related to any of them,<br \/>\nit will promptly notify Microsoft thereof. Microsoft may take such action as it<br \/>\ndeems advisable for the protection of its rights in and to such proprietary<br \/>\nrights, and Licensee shall, if requested by Microsoft, cooperate in all<br \/>\nreasonable respects therein at Microsoft&#8217;s expense. In no event, however, shall<br \/>\nMicrosoft be required to take any action if it deems it inadvisable to do so.<br \/>\nMicrosoft will have the right to retain all proceeds it may derive from any<br \/>\nrecovery in connection with such actions.<\/p>\n<p>     11.2  Licensee Intellectual Property. Licensee, without the express<br \/>\nwritten permission of Microsoft, may bring any action or proceeding relating to<br \/>\nthis infringement or potential infringement, to the extent such infringement<br \/>\ninvolves any proprietary rights of Licensee (provided that Licensee will not<br \/>\nhave the right to bring any such action or proceeding involving Microsoft&#8217;s<br \/>\nintellectual property). Licensee shall make reasonable efforts to inform<br \/>\nMicrosoft regarding such actions in a timely manner. Licensee will have the<br \/>\nright to retain all proceeds it may derive from any recovery in connection with<br \/>\nsuch actions. Licensee agrees to use all commercially reasonable efforts to<br \/>\nprotect and enforce its proprietary rights in the Software Title.<\/p>\n<p>     11.3  Joint Actions. Licensee and Microsoft may agree to jointly pursue<br \/>\ncases of infringement involving the Software Titles (since such products will<br \/>\ncontain intellectual property owned by each of them). Unless the parties<br \/>\notherwise agree, or unless the recovery is expressly allocated between them by<br \/>\nthe court (in which case the terms of Sections 11.1 and 11.2 will apply), in the<br \/>\nevent Licensee and Microsoft jointly prosecute an infringement lawsuit under<br \/>\nthis provision, any recovery shall be used first to reimburse Licensee and<br \/>\nMicrosoft for their respective reasonable attorneys&#8217; fees and expenses, pro<br \/>\nrata, and then to reimburse Licensee and Microsoft pro rata for the respective<br \/>\ndamages incurred by each party as a result of the infringement. If the parties<br \/>\ncan not agree in good faith within a reasonable period of time on the proper<br \/>\nparties&#8217; respective damages and the proper allocation of proceeds therefor, then<br \/>\nany remaining recovery shall also be given to Licensee and Microsoft pro rata<br \/>\nbased upon the fees and expenses incurred in bringing such action.<\/p>\n<p>12.  GENERAL<\/p>\n<p>     12.1  Governing Law; Venue; Attorneys Fees. This Agreement shall be<br \/>\nconstrued and controlled by the laws of the State of Washington, U.S.A., and<br \/>\nLicensee consents to exclusive jurisdiction and venue in the federal courts<br \/>\nsitting in King County, Washington, U.S.A., unless no federal jurisdiction<br \/>\nexists, in which case Licensee consents to exclusive jurisdiction and venue in<br \/>\nthe Superior Court of King County, Washington, U.S.A. Licensee waives all<br \/>\ndefenses of lack of personal jurisdiction and forum non conveniens. Process may<br \/>\nbe served on either party in the manner authorized by applicable law or court<br \/>\nrule. If either party employes attorneys to enforce any rights arising out of<br \/>\nor relating to this Agreement, the prevailing party shall be entitled to<br \/>\nrecover its reasonable attorneys&#8217; fees, costs and other expenses. This choice<br \/>\nof jurisdiction provision does not prevent Microsoft from seeking injunctive<br \/>\nrelief with respect to a violation of intellectual property rights or<br \/>\nconfidentiality obligations in any appropriate jurisdiction.<\/p>\n<p>     12.2  Notices; Requests. All notices and requests in connection with this<br \/>\nAgreement shall be deemed given as of the day they are (i) deposited in the<br \/>\nU.S. mails, postage prepaid, certified or registered, return receipt requested;<br \/>\nor (ii) sent by overnight courier, charges prepaid, with a confirming fax; and<br \/>\naddressed as follows:<\/p>\n<p>                                       14<br \/>\n   15<br \/>\n                                              Consumer Group Contract No. 19355<\/p>\n<p>                         Licensee:      Bay Area Multimedia, Inc.<br \/>\n                                        333 West Santa Clara St., Ste 930<br \/>\n                                        San Jose, CA 95113<\/p>\n<p>                         Attention:     Mr. Ray Musci, President<br \/>\n                         Fax:           (408) 298-9600<br \/>\n                         Phone:         (408) 298-7500<\/p>\n<p>                         Microsoft:     MICROSOFT CORPORATION<br \/>\n                                        One Microsoft Way<br \/>\n                                        Redmond, WA 98052-6399<\/p>\n<p>                         Attention:     Xbox Business Development<\/p>\n<p>                         with a cc to:  MICROSOFT CORPORATION<br \/>\n                                        One Microsoft Way<br \/>\n                                        Redmond, WA 98052-6399<\/p>\n<p>                         Attention:     Law &amp; Corporate Affairs Department<br \/>\n                                        Product Development &amp; Marketing<br \/>\n                         Fax:           (425) 936-7329<\/p>\n<p>or to such other address as the party to receive the notice or request so<br \/>\ndesignates by written notice to the other.<\/p>\n<p>     12.3  Assignment. Licensee may not assign this Agreement or any portion<br \/>\nthereof, to any third party unless Microsoft expressly consents to such<br \/>\nassignment in writing. Microsoft will have the right to assign this Agreement<br \/>\nand\/or any portion thereof as Microsoft may deem appropriate. For the purposes<br \/>\nof this Agreement, a merger, consolidation, or other corporate<br \/>\nreorganization, or a transfer or sale of a controlling interest in a party&#8217;s<br \/>\nstock, or of all or substantially all of its assets shall be deemed to be an<br \/>\nassignment. This Agreement will inure to the benefit of and be binding upon the<br \/>\nparties, their successors, administrators, heirs, and permitted assigns.<\/p>\n<p>     12.4  No Partnership. Microsoft and Licensee are entering into a license<br \/>\npursuant to this Agreement and nothing in this Agreement shall be construed as<br \/>\ncreating an employer-employee relationship, a partnership, or a joint venture<br \/>\nbetween the parties.<\/p>\n<p>     12.5  Severability. In the event that any provision of this Agreement is<br \/>\nfound invalid or unenforceable pursuant to judicial decree or decision, the<br \/>\nremainder of this Agreement shall remain valid and enforceable according to its<br \/>\nterms. The parties intend that the provisions of this Agreement be enforced to<br \/>\nthe fullest extent permitted by applicable law. Accordingly, the parties agree<br \/>\nthat if any provisions are deemed not enforceable, they shall be deemed<br \/>\nmodified to the extent necessary to make them enforceable.<\/p>\n<p>     12.6  Injunctive Relief. The parties agree that Licensee&#8217;s threatened or<br \/>\nactual unauthorized use of the Licensed Trademarks whether in whole or in part,<br \/>\nmay result in immediate and irreparable damage to Microsoft for which there is<br \/>\nno adequate remedy at law, and that either party&#8217;s threatened or actual breach<br \/>\nof the confidentiality provisions may cause like damage to the nonbreaching<br \/>\nparty, and in such event the nonbreaching party shall be entitled to<br \/>\nappropriate injunctive relief, without the necessity of posting bond or other<br \/>\nsecurity.<\/p>\n<p>                                       15<br \/>\n   16<br \/>\n                                              Consumer Group Contract No. 19355<\/p>\n<p>     12.7  Entire Agreement; Modification; No Offer. The parties hereto agree<br \/>\nthat this Agreement (including all Exhibits hereto, and the Microsoft<br \/>\nNon-Disclosure Agreement to the extent incorporated herein) and the Xbox Guide<br \/>\n(as applicable from time to time) constitute the entire agreement between the<br \/>\nparties with respect to the subject matter hereof and merges all prior and<br \/>\ncontemporaneous communications. It shall not be modified except by a written<br \/>\nagreement dated subsequent hereto signed on behalf of Licensee and Microsoft by<br \/>\ntheir duly authorized representatives. Neither this Agreement nor any written or<br \/>\noral statement related hereto constitute an offer, and this Agreement shall not<br \/>\nbe legally binding until executed by both parties hereto.<\/p>\n<p>IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be<br \/>\nexecuted as of the Effective Date on the dates indicated below.<\/p>\n<p>MICROSOFT CORPORATION                  BAY AREA MULTIMEDIA, INC.<\/p>\n<p>\/s\/  J. ALLARP                         \/s\/  RAYMOND MUSCI<br \/>\n&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-                 &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-<br \/>\nBy (sign)                              By (sign)<\/p>\n<p>     J. Allarp                              Raymond Musci<br \/>\n&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-                 &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-<br \/>\nName (Print)                           Name (Print)<\/p>\n<p>     GEN MGR                                  President<br \/>\n&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-                 &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-<br \/>\nTitle                                  Title<\/p>\n<p>     11\/20\/00                                 10\/18\/2000<br \/>\n&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-                 &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-<br \/>\nDate                                   Date<\/p>\n<p>                                       16<br \/>\n   17<br \/>\n                                              Consumer Group Contract No. 19355<\/p>\n<p>                                  EXHIBIT A-1<br \/>\n                         DESCRIPTION OF SOFTWARE TITLE<\/p>\n<p>                                       17<br \/>\n   18<br \/>\n                                              Consumer Group Contract No. 19355<\/p>\n<p>                                   EXHIBIT B<br \/>\n                              LICENSED TRADEMARKS<\/p>\n<p>                           [insert Xbox design here]<\/p>\n<p>                                       18<br \/>\n   19<br \/>\n                                               Consumer Group Contract No. 19355<\/p>\n<p>                                   EXHIBIT C<br \/>\n                            BRANDING SPECIFICATIONS<\/p>\n<p>The following guidelines apply whenever Licensee places a copy of any Licensed<br \/>\nTrademark on the Software Title, or related collateral materials.<\/p>\n<p>     &#8211;    Licensee may use the Licensed Trademarks solely on the retail box,<br \/>\n          documentation, and Art &amp; Marketing Materials for the Software Title,<br \/>\n          and in no other manner.<\/p>\n<p>     &#8211;    Licensee&#8217;s name, logo, or trademark must appear on any materials<br \/>\n          where the Licensed Trademarks are used, and must be larger and more<br \/>\n          prominent than the Licensed Trademarks.<\/p>\n<p>     &#8211;    The Licensed Trademarks may not be used in any manner that expresses<br \/>\n          or might imply Microsoft&#8217;s affiliation, sponsorship, endorsement,<br \/>\n          certification, or approval, other than as contemplated by this<br \/>\n          Agreement.<\/p>\n<p>     &#8211;    The Licensed Trademarks may not be included in any non-Microsoft<br \/>\n          trade name, business name, domain name, product or service name,<br \/>\n          logo, trade dress, design, slogan, or other trademark.<\/p>\n<p>     &#8211;    Licensee may use the Licensed Trademarks only as provided by<br \/>\n          Microsoft electronically or in hard copy form. Except for size<br \/>\n          subject to the restrictions herein, the Licensed Trademarks may not<br \/>\n          be altered in any manner, including proportions, colors, elements,<br \/>\n          etc., or animated, morphed, or otherwise distorted in perspective or<br \/>\n          dimensional appearance.<\/p>\n<p>     &#8211;    The Licensed Trademarks may not be combined with any other symbols,<br \/>\n          including words, logos, icons, graphics, photos, slogans, numbers, or<br \/>\n          other design elements.<\/p>\n<p>     &#8211;    The Licensed Trademarks (including but not limited to Microsoft&#8217;s<br \/>\n          logos, logotypes, trade dress, and other elements of product<br \/>\n          packaging and web sites) may not be imitated.<\/p>\n<p>     &#8211;    The Licensed Trademarks may not be used as a design feature in any<br \/>\n          materials.<\/p>\n<p>     &#8211;    The Licensed Trademarks must stand alone. A minimum amount of empty<br \/>\n          space must surround the Licensed Trademarks separating it from any<br \/>\n          other object, such as type, photography, borders, edges, and so on.<br \/>\n          The required areas of empty space around the Licensed Trademarks must<br \/>\n          be 1\/2x, where x equals the height of the Licensed Trademarks.<\/p>\n<p>     &#8211;    Each use of the Licensed Trademarks must include the notice: &#8220;Xbox is<br \/>\n          a trademark of Microsoft Corporation in the United States and\/or<br \/>\n          other countries and is used under license from Microsoft&#8221;.<\/p>\n<p>ADDITIONAL GUIDELINES FOR PROPER USE OF THE &#8220;XBOX&#8221; WORD MARK:<\/p>\n<p>     &#8211;    Use the trademark symbol (&#8220;(TM)&#8221;) at the upper right corner or<br \/>\n          baseline immediately following the name &#8220;Xbox&#8221;. This symbol should be<br \/>\n          used at the first or most prominent mention. Please be sure to spell<br \/>\n          Xbox as one word, with no hyphen and with no space between &#8220;X&#8221; and<br \/>\n          &#8220;box&#8221;.<\/p>\n<p>     &#8211;    Include the following notice on materials referencing Xbox:<\/p>\n<p>               &#8220;Xbox is a trademark of Microsoft Corporation.&#8221;<\/p>\n<p>     &#8211;    Trademarks identify a company&#8217;s goods or services. Xbox is not a<br \/>\n          generic thing, but rather a brand of game system from Microsoft. A<br \/>\n          trademark is a proper adjective that modifies the genetic name or<br \/>\n          descriptor of a product or service. The descriptor for Xbox is &#8220;game<br \/>\n          system,&#8221; i.e., &#8220;Xbox(TM) game system.&#8221; Use the descriptor immediately<br \/>\n          after mention of &#8220;Xbox&#8221;. You should not combine the Xbox trademark<br \/>\n          with an improper generic name or descriptor. For example, game<br \/>\n          programs designed to run on the Xbox game system are not &#8220;Xbox<br \/>\n          games,&#8221; but rather &#8220;games for the Xbox system&#8221; or &#8220;Xbox certified<br \/>\n          games.&#8221;<\/p>\n<p>     &#8211;    The Xbox trademark may never by abbreviated. Do not use &#8220;X&#8221; by itself<br \/>\n          to represent &#8220;Xbox.&#8221;<\/p>\n<p>                                       19<br \/>\n   20<br \/>\n                                               Consumer Group Contract No. 19355<\/p>\n<p>                                   EXHIBIT D<\/p>\n<p>                            NON-DISCLOSURE AGREEMENT<\/p>\n<p>                                       20<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[6843,8221],"corporate_contracts_industries":[9513],"corporate_contracts_types":[9613,9616],"class_list":["post-42971","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-bam-entertainment-inc","corporate_contracts_companies-microsoft-corp","corporate_contracts_industries-technology__software","corporate_contracts_types-operations","corporate_contracts_types-operations__ip"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/42971","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=42971"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=42971"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=42971"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=42971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}