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This excerpt taken from the ATVI 10-Q filed Feb 8, 2006. Distribution License. Upon Certification
of the Software Title, approval of the Marketing Materials and the FPU test version of the Software Title by
Microsoft, and subject to the terms and conditions contained within thisAgreement. Microsoft grants Publisher a non-exclusive, non-transferable,
license to distribute FPUs containing Redistributable and Sample Code (as defined in the XDK License) and Security
Technology (as defined above) within the Sales Territories approved in the Software Title’s Concept in FPU form to
third parties for distribution to end users and/or directly to end users. The license to distribute the FPUs is personal
to Publisher and except for transfers of FPU through normal channels of distribution (e.g. wholesalers,
retailers), absent the written approval of Microsoft, Publisher may not sublicense or assign its rights under this license
to other parties. For the avoidance of doubt,
without the written approval of Microsoft,
Publisher may not sublicense, transfer or assign its right to distribute Software
Titles or FPU to another entity that will brand, co-brand or otherwise assume control over such products as a
“publisher” as that concept is typically understood in the console game industry. Publisher may only grant end users the right to
make personal, non-commercial use of Software Titles and may not grant end users any of the other rights reserved
to a copyright holder under US Copyright Law, Japanese Copyright Law, or its international equivalent. Publisher’s license rights do not include any
license, right, power or authority
to subject Microsoft’s software or derivative works thereof or intellectual property
associated therewith in whole or in
part to any of the terms of an Excluded License. “Excluded License” means any license that requires
as a condition of use, modification
and/or distribution of software subject to the Excluded License, that such software
or other software combined and/or
distributed with such software be (a) disclosed or distributed in source code form;
(b) licensed for the purpose of making
derivative works; or (c) redistributable at no charge.
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