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This excerpt taken from the ATVI 10-Q filed Feb 8, 2006. Sub-Publishing. Notwithstanding
Section 10.1, Publisher may enter into independent agreements with other publishers to distribute Software Titles
in multiple approved Sales Territories (a “Sub-Publishing Relationship”), solong as:
10.7.1 Publisher provides written notice to Microsoft, at least [*] prior to authorizing a Sub- Publisher to manufacture any Software Title(s), of the Sub-Publishing relationship, along with (i) a summary of the scope and nature of the Sub-Publishing relationship including, without limitation, as between Publisher and Sub-Publisher, (ii) which party will be responsible for Certification of the Software Title(s) and/or any Online Content, (iii) a list of the SoftwareTitle(s) for which Sub-publisher has acquired publishing rights, (iv) the geographic territory(ies) for which such rights weregranted, and (v) the term of Publisher’s agreement with Sub-publisher; and
10.7.2 The Sub-publisher has signed an Xbox 360 publisher license agreement (“Xbox 360 PLA”) and both Publisher and Sub-publisher are and remain at all times in good standing under each of their respective Xbox 360 PLAs. Publisher is responsible for making applicable royalty payments for the FPUs for which it places manufacturing orders, and Sub-publisher is responsible for making royalty payments for the FPUs for which it places manufacturing orders.
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