Common use of Initial Orders Clause in Contracts

Initial Orders. In accordance with Section 9 of the PS3 LPA, Publisher shall pay SCEA, either directly or through its designee, a royalty in United States dollars for each Unit of the Disc Products manufactured, as follows: For product distributed on a [***]GB BD: [***] For product distributed on a [***]GB BD: [***] To insure quality, royalty payments include manufacturing of the BluRay disc and Packaging, excluding Printed Materials and inserts. In the future and at its sole discretion, SCEA may allow Publisher to use alternative packaging facilities provided that Publisher can prove that it can meet all of SCEA’s quality assurance criteria set forth in the Guidelines. At that time, SCEA may restructure royalties to account for costs related to Packaging. In the absence of satisfactory evidence to support the WSP, the royalty rate that shall apply will be [***] for a BluRay [***] disc and [***] for a BluRay [***] disc, per Unit. Upon receipt of any notice of change in royalties under Section 9.1 of the PS3 LPA, Publisher shall have the option to terminate this Agreement upon written notice to SCEA and discontinue all production, publishing, marketing, advertising, sale, distribution and other exploitation of Licensed Products, rather than having such revised royalty structure go into effect.

Initial Orders. In accordance with Section 9 of the PS3 LPA, Publisher shall pay SCEA, either directly or through its designee, a royalty in United States dollars for each Unit of the Disc Products products manufactured, as follows: * Information has been omitted from this document and filed separately with the SEC under a request for confidential treatment Pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. For product distributed on a 25GB BD: [***]GB BD: [******] For product distributed on a 50GB BD: [***]GB BD: [******] To insure quality, royalty payments include manufacturing of the BluRay disc and Packaging, excluding Printed Materials and inserts. In the future and at its sole discretion, SCEA may allow Publisher to use alternative packaging facilities provided that Publisher can prove that it can meet all of SCEA’s quality assurance criteria set forth in the Guidelines. At that time, SCEA may restructure royalties to account for costs related to Packaging. In the absence of satisfactory evidence to support the WSP, the royalty rate that shall apply will be [***] for a BluRay [***] disc and [***] for a BluRay 25 disc and [*********] for a BluRay 50 disc, per Unit. Upon receipt of any notice of change in royalties under Section 9.1 of the PS3 LPA, Publisher shall have the option to terminate this Agreement upon written notice to SCEA and discontinue all production, publishing, marketing, advertising, sale, distribution and other exploitation of Licensed Products, rather than having such revised royalty structure go into effect.