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This excerpt taken from the ATVI 10-Q filed Feb 8, 2006. “Wholesale Price” means
the highest per unit price that Publisher
charges retailers and/or distributors
in bona fide third party transactions for the right to distribute and sell the Software
Title within a Sales Territory, it being agreed that (i) any transactions involving
affiliates of Publisher (entities controlling, controlled by or under common control
of, Publisher) are not to be considered in determining the Wholesale Price; (ii)
if Publisher enters into an agreement with a third party (such as a Sub-publisher)
providing the third party with the exclusive right to distribute the Software Title
in a Sales Territory, the Wholesale Price is governed by the price charged by the
third party rather than the terms of the exclusive distribution agreement between
Publisher and such third party; and (iii) if the Wholesale Price varies among countries
in a single Sales Territory, the highest Wholesale Price used in the Sales Territory
will be used to determine the appropriate royalty fees for the entire Sales Territory.
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