ATVI » Topics » Insurance

This excerpt taken from the ATVI 10-Q filed Feb 8, 2006.
Insurance

 

16.4.1                  Publisher shall maintain sufficient and appropriate insurance coverage to enable it to meet its obligations under this Agreement and by law (whether Products Liability, General Liability or some other type of insurance).  For FPUs distributed in the Japan Sales Territory, Publisher’s coverage will have minimum limits of the Japanese yen equivalent of [*] per occurrence, with a deductible of not more than the Japanese yen equivalent of [*] For FPUs distributed in the Asian Sales Territory, Publisher’s coverage will have minimum limits of [*] per occurrence (or its equivalent value in local currency as of the date of issuance), with a deductible of not more than [*] (or its equivalent value in local currency as of the date of issuance).

 

16.4.2                  As of the Effective Date, Publisher is not required under this Agreement to hold any errors and omissions policy through a third party and may self-insure.  However, in the event that fails to meet Microsoft’s annually updated criteria for self-insurance, which will be reasonable be based on Publisher’s liquidity position and will be communicated to Publisher at least [*] in advance of applicability, Publisher will at its sole cost and expense shall have endorsed Microsoft as an additional insured on Publisher’s media perils errors and omissions liability policy for claims arising in connection with production, development and distribution of each Software Title in an amount no less than [*] on a per occurrence or per incident basis.  Coverage provided to Microsoft under the policy shall be primary to and not contributory with any insurance maintained by Microsoft.  Upon request, Publisher agrees to furnish copies of the additional insured endorsement and/or a certificate of insurance evidencing compliance with this requirement.

 

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