Bethesda Purchases Entire Fallout License

Category: News Archive

Hits: 1005

Written by BuckGB on April 12th, 2007

Tweet

As of April 4, 2007, the Company entered into, an Asset Purchase Agreement (the "APA") and a Trademark License Agreement (the "License Back") with Bethesda Softworks LLC, a video game developer and publisher ("Bethesda"), regarding "FALLOUT", an intellectual property which was owned by the Company (the "IP"). Although such agreements were signed on April 4, 2007 they were agreed not to be binding until closing which occurred on April 9, 2007.

Under the APA, the Company sold all of its rights to the IP to Bethesda for a total amount of $5,750,000.00 payable to the Company, subject to various conditions, in three cash installments. The first installment of $2,000,000.00 was paid following closing when $200,000.00 was paid to the Company and $1,800,000.00 was deposited into an escrow account to satisfy various liabilities. The Company expects to have fulfilled its obligations under the APA and to receive full payment during the third quarter of 2007. The Company had previously, on June 29, 2004, entered into, an exclusive licensing agreement with Bethesda, regarding the IP which was superseded by the APA.

Under the License Back the Company obtained an exclusive license, under certain conditions, to use the IP for the purpose of developing an Interplay branded Fallout Massively Multiplayer Online Game ("MMOG").

PAYMENT OF ROYALTIES. Interplay agrees to pay Bethesda a Royalty of twelve percent (12%) of the Net Cash Receipts derived from the sale and distribution of the FALLOUT MMOG, including sales of subscription fees or access fees to the FALLOUT MMOG or any other revenues generated by the FALLOUT MMOG, in the Territory during each calendar quarter following the commercial launch of the FALLOUT MMOG.

• Prev
• Next