Common use of Platform Royalty Clause in Contracts

Platform Royalty. a. For each FPU manufactured, Publisher shall pay Microsoft nonrefundable royalties in accordance with the royalty tables (Tables 1 and 2) and the Unit Discount Table (Table 3). b. To determine the applicable royalty rate for a particular Software Title to be sold in a particular Sales Territory, the applicable Threshold Price from Table 1 for the category of Software Title will determine the correct Royalty Tier (except with respect to the first Commercial Release of Hits Software Titles as described further in (ii) below). The royalty rate is then as set forth in Table 2 based on such Tier and the Sales Territory in which the FPUs will be sold. For example, assume the Wholesale Price of a Standard Software Title to be sold in the European Sales Territory is [***] . According to Table 1, [***] royalty rates will apply to that Software Title and the royalty rate for each FPU as set forth in Table 2 is [***]. Tier A [***] [***] [***] [***] Tier B [***] [***] [***] [***] Tier C [***] [***] [***] [***] Tier D [***] [***] [***] [***] Hits Tier 1 [***] [***] [***] [***] Hits Tier 2 [***] [***] [***] [***] Hits Tier 3 [***] [***] [***] [***] Packs Tier 1 [***] [***] [***] [***] Packs Tier 2 [***] [***] [***] [***] Multi-Game Tier 1 [***] [***] [***] [***] Multi-Game Tier 2 [***] [***] [***] [***] Multi-Game Tier 3 [***] [***] [***] [***] Multi-Game Tier 4 [***] [***] [***] [***] *This is the US dollar equivalent of local currency in the Asian Sales Territory ** If a Multi-Game Pack consists of more than [***] Software Titles, in addition to the Royalty Rates set for the Multi-Game Pack Program, each additional Software Title after the [***] one will be charged a rate equivalent to the Hits Tier [***] Royalty Rate. Tier A [***] [***] [***] [***] Tier B [***] [***] [***] [***] Tier C [***] [***] [***] [***] Tier D [***] [***] [***] [***] Hits Tier 1 [***] [***] [***] [***] Hits Tier 2 [***] [***] [***] [***] Hits Tier 3 [***] [***] [***] [***] Packs Tier 1 [***] [***] [***] [***] Packs Tier 2 [***] [***] [***] [***] Multi-Game Tier 1 [***] [***] [***] [***] Multi-Game Tier 2 [***] [***] [***] [***] Multi-Game Tier 3 [***] [***] [***] [***] Multi-Game Tier 4 [***] [***] [***] [***]

Platform Royalty. a. For each FPU manufactured, Publisher shall pay Microsoft nonrefundable royalties in accordance with the royalty tables (Tables 1 and 2) and the Unit Discount Table (Table 3). b. To determine the applicable royalty rate for a particular Software Title to be sold in a particular Sales Territory, the applicable Threshold Price from Table 1 for the category of Software Title will determine the correct Royalty Tier (except with respect to the first Commercial Release of Hits Software Titles as described further in (ii) below). The royalty rate is then as set forth in Table 2 based on such Tier and the Sales Territory in which the FPUs will be sold. For example, assume the Wholesale Price of a Standard Software Title to be sold in the European Sales Territory is [***] ]. According to Table 1, [***] Tier B royalty rates will apply to that Software Title and the royalty rate for each FPU as set forth in Table 2 is [***]. Tier A [***] [***] [***] [***] Tier B [***] [***] [***] [***] Tier C [***] [***] [***] [***] Tier D [***] [***] [***] [***] Hits Tier 1 [***] [***] [***] [***] Hits Tier 2 [***] [***] [***] [***] Hits Tier 3 [***] [***] [***] [***] Packs Tier 1 [***] [***] [***] [***] Packs Tier 2 [***] [***] [***] [***] Multi-Game Tier 1 [***] [***] [***] [***] Multi-Game Tier 2 [***] [***] [***] [***] Multi-Game Tier 3 [***] [***] [***] [***] Multi-Game Tier 4 [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] *This is the US dollar equivalent of local currency in the Asian Sales Territory **Hits Tier 3 is only available for Hits FPUs that are manufactured on or after [***]. *** If a Multi-Game Pack consists of more than [***] Software Titles, in addition to the Royalty Rates set for the Multi-Game Pack Program, each additional Software Title after the [***] one will be charged a rate equivalent to the Hits Tier [***] Royalty Rate. Tier A [***] [***] [***] [***] Tier B [***] [***] [***] [***] Tier C [***] [***] [***] [***] Tier D [***] [***] [***] [***] Hits Tier 1 [***] [***] [***] [***] Hits Tier 2 [***] [***] [***] [***] Hits Tier 3 [***] [***] [***] [***] Packs Tier 1 [***] [***] [***] [***] Packs Tier 2 [***] [***] [***] [***] Multi-Game Tier 1 [***] [***] [***] [***] Multi-Game Tier 2 [***] [***] [***] [***] Multi-Game Tier 3 [***] [***] [***] [***] Multi-Game Tier 4 [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] [***] * [***]