Document:

Exhibit 10.11

 

ACTIVISION, INC.

 

2007
INCENTIVE PLAN

 

NOTICE
OF RESTRICTED SHARE AWARD

 

You have been awarded Restricted Shares of Activision, Inc. (the “Company”), as follows:

 

·                  Your name:  [                                                                                                                          ]

 

·                  Total number of Restricted Shares
awarded:  [                                                                      ]

 

·                  Date of Grant:  [                                                                                                                      ]

 

·                  Grant ID: 
[                                                                                                                             ]

 

·                  Your Award of Restricted Shares is
governed by the terms and conditions set forth in:

 

·                  this Notice of Restricted Share Award;

 

·                  the Restricted Share Award Terms attached hereto as Exhibit A
(the “Award Terms”); and

 

·                  the Company’s 2007 Incentive Plan, the receipt of a
copy of which you hereby acknowledge.

 

·                  [Your Award of Restricted Shares has been made in connection with your
employment agreement with the Company or one of its subsidiaries or affiliates
as a material inducement to your entering into or renewing employment with such
entity pursuant to such agreement, and is also governed by any applicable terms
and conditions set forth in such agreement.]

 

·                  Schedule for Lapse of
Restrictions:  Except as otherwise provided under the Award
Terms, the Restrictions on the Restricted Shares awarded to you will lapse as
follows, provided you remain continuously employed by the Company or one of its
subsidiaries or affiliates through each such date:

 

Schedule for Lapse of Restrictions

 

	
  Date on which

  	
   

  	
  No. of Restricted Shares

  	
   

  
	
  Restrictions Lapse

  	
   

  	
  as to which Restrictions Lapse

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  First anniversary of Date of Grant

  	
   

  	
  [                              ]

  	
   

  
	
  Second anniversary of Date of Grant

  	
   

  	
  [                              ]

  	
   

  
	
  Third anniversary of Date of Grant

  	
   

  	
  [                              ]

  	
   

  
	
  [Fourth anniversary of Date of Grant]

  	
   

  	
  [                              ]

  	
   

  
	
  [Fifth anniversary of Date of Grant]

  	
   

  	
  [                              ]

  	
   

  

 

·                  Please
sign and return to the Company this Notice of Restricted Share Award, which
bears an original signature on behalf of the Company.  You are urged to do so promptly.

 

 

·                  If you wish to make an election to include
the value of the Restricted Shares in your taxable income for the current
calendar year, you must complete and sign the Section 83(b) Election Form attached
hereto as Exhibit B and both (1) file a copy of it with the
Internal Revenue Service Center at which you file your federal income tax
return and (2) return a copy of it to the Company, in each case no
later than the 30th day after the Date of Grant.

 

·                  Please
return all items to be returned to the Company to:

 

Activision, Inc.

3100 Ocean Park Boulevard

Santa Monica, CA  90405

Attn:  Stock Plan Administration

 

You
should retain (1) the enclosed duplicate copy of this Notice of Restricted
Share Award for your records and (2) if applicable, two copies of your
completed Section 83(b) Election Form, (a) one copy of which
should be filed with the Internal Revenue Service Center at which you file your
federal income tax return no later than 30th day after the Date of
Grant as described above and (b) one copy of which should be submitted
with your federal income tax return for the current calendar year.

 

Any capitalized term used but not otherwise defined herein shall have
the meaning ascribed to such term in the Award Terms.

 

	
   

  	
  ACTIVISION, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ACCEPTED AND AGREED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Name of Grantee]

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
								

 

2

 

EXHIBIT A

ACTIVISION,
INC.

 

2007
INCENTIVE PLAN

 

RESTRICTED
SHARE AWARD TERMS

 

1.             Definitions.

 

(a)           For
purposes of these Award Terms, the following terms shall have the meanings set
forth below:

 

“Additional Shares” means any additional Common Shares issued in respect
of Restricted Shares in connection with any adjustment pursuant to Section 10
hereof.

 

“Award” means the award described on the Grant Notice.

 

“Award Terms” means these Restricted Share Award Terms.

 

“Common Shares” means the shares of common stock, par value $0.000001
per share, of the Company or any security into which such Common Shares may be
changed by reason of any transaction or event of the type referred to in Section 10
hereof.

 

“Company” means Activision, Inc. and any successor
thereto.

 

“Company-Sponsored Equity Account” means an account that is created with
the Equity Account Administrator in connection with the administration of the
Company’s equity plans and programs, including the Plan.

 

“Date of Grant” means the Date of Grant of the Award set forth on the
Grant Notice.

 

“Employment Violation” means any material breach by Grantee of
his or her employment agreement with the Company or one of its subsidiaries or
affiliates for so long as the terms of such employment agreement shall apply to
Grantee (with any breach of the post-termination obligations contained therein
deemed to be material for purposes of these Award Terms).

 

“Equity Account Administrator” means the brokerage firm utilized by the
Company from time to time to create and administer accounts for participants in
the Company’s equity plans and programs, including the Plan.

 

“Grantee” means the recipient of the Award named on the Grant
Notice.

 

“Grant Notice” means the Notice of Restricted Share Award to which
these Award Terms are attached as Exhibit A.

 

 

“Look-back Period” means, with respect to any Employment
Violation by Grantee, the period beginning on the date which is 12 months
prior to the date of such Employment Violation by Grantee and ending on the
date of computation of the Recapture Amount with respect to such Employment
Violation.

 

“Plan” means the Activision, Inc. 2007 Incentive Plan,
as amended from time to time.

 

“Recapture
Amount” means, with respect to any Employment Violation by Grantee, the gross
gain realized or unrealized by Grantee upon all lapses of the Restrictions
during the Look-back Period with respect to such Employment Violation, which
gain shall be calculated as the sum of:

 

(i)            if Grantee has
received any Vested Shares during such Look-back Period and sold such Vested
Shares, an amount equal to the product of (A) the sales price per Vested
Share times (B) the number of such Vested Shares sold at such sales price;
plus

 

(ii)           if Grantee has
received any Vested Shares during such Look-back Period and not sold such
Vested Shares, an amount equal to the product of (A) the greatest of the
following: (1) the Market Value per Share of Common Shares on the date the
Restrictions lapsed with respect to such Vested Shares, (2) the arithmetic
average of the per share closing sales prices of Common Shares as reported on
NASDAQ for the 30 trading day period ending on the trading day immediately
preceding the date of the Company’s written notice of its exercise of its
rights under Section 14 hereof, or (3) the arithmetic average of the
per share closing sales prices of Common Shares as reported on NASDAQ for the
30 trading day period ending on the trading day immediately preceding the date
of computation, times (B) the number of such Vested Shares which were not
sold.

 

“Restricted Book Entry” means a book entry on the Company’s
stock register maintained by its transfer agent and registrar, which book entry
shall bear a notation regarding the Restrictions as set forth in Section 15(a) hereof
and, if appropriate, a notation regarding securities law restrictions as set
forth in Section 15(b) hereof.

 

“Restricted Shares” means Common Shares subject to the Award (including
any Additional Shares) as to which the Restrictions have not lapsed and which
have not been forfeited to the Company in accordance with the Grant Notice and
these Award Terms.

 

“Restrictions” means the restrictions set forth in Section 2
hereof.

 

“Section 83(b) Election” means an election under Section 83(b) of
the Code, or any successor provision thereto, to include the value of the
Restricted Shares in taxable income for the calendar year in which the Award is
granted.

 

“Vested Shares” means Common Shares subject to the Award (including
any Additional Shares) as to which the Restrictions have lapsed in accordance
with Section 3 or 4 hereof.

 

A-2

 

“Withholding Taxes” means any taxes, including, but not limited to,
social security and Medicare taxes and federal, state and local income taxes,
required to be withheld under any applicable law.

 

(b)           Any
capitalized term used but not otherwise defined herein shall have the meaning
ascribed to such term in the Plan.

 

2.             Restrictions.  None of the Common Shares subject to the
Award (including any Additional Shares), or any right or privilege pertaining
thereto, may be sold, assigned, transferred, pledged, hypothecated or otherwise
disposed of or encumbered in any way not expressly permitted by these Award
Terms, or subjected to execution, attachment or similar process, unless and
until such restrictions thereon lapse pursuant to Section 3 or 4
hereof.  Any attempt to sell, assign,
transfer, pledge, hypothecate or otherwise dispose of or encumber any such Common
Shares, or any right or privilege pertaining thereto, in any way not expressly
permitted by these Award Terms before such restrictions thereon lapse pursuant
to Section 3 or 4 hereof shall be null and void and of no force and
effect.

 

3.             Lapse
of Restrictions.  Except as otherwise
set forth in these Award Terms, the Restrictions shall lapse in accordance with
the “Schedule for Lapse of Restrictions” set forth on the Grant Notice.

 

4.             Termination
of Employment.  Unless the Committee  determines otherwise, in the event that
Grantee’s employment is terminated for any reason, as of the date of such
termination of employment the Restrictions shall cease to lapse and any Restricted
Shares shall immediately be forfeited to the Company without payment of
consideration by the Company.

 

5.             Tax
Withholding.  The Company shall have
the right to require Grantee to satisfy any Withholding Taxes resulting from
the lapse of the Restrictions, from any Section 83(b) Election or
otherwise in connection with the Award at the time such Withholding Taxes
become due.  Grantee shall be entitled to
satisfy any Withholding Taxes contemplated by this Section 5:  (a) by delivery to the Company of a bank check
or certified check or wire transfer of immediately available funds; (b) with
the Company’s consent, through the delivery of irrevocable written
instructions, in a form acceptable to the Company, that the Company withhold Vested
Shares otherwise then deliverable having a value equal to the aggregate amount
of the Withholding Taxes (valued in the same manner used in computing the
amount of such Withholding Taxes); or (c) with the Company’s consent, by any
combination of (a) and (b) above. 
Notwithstanding anything to the contrary contained herein, (i) the
Company or any of its subsidiaries or affiliates shall have the right to
withhold from Grantee’s compensation any Withholding Taxes contemplated by this
Section 5 and (ii) the Company shall have no obligation to deliver
any Vested Shares unless and until all Withholding Taxes contemplated by this Section 5
have been satisfied.

 

6.             Voting
Rights.  The holder of the Restricted
Shares shall be entitled to the voting privileges associated therewith.

 

A-3

 

7.             Dividends.  Any cash dividends declared and paid on the
Restricted Shares shall be paid to the holder thereof concurrently with the
payment of such dividends to all other record holders of Common Shares.

 

8.             Receipt
and Delivery; Removal of Restrictions. 
Restricted Shares shall be evidenced by a Restricted Book Entry in the
name of the holder of the Restricted Shares. 
Restricted Shares shall become Vested Shares at such time as the
Restrictions thereon lapse in accordance with the Grant Notice and these Award
Terms.  As soon as practicable after the
Restrictions on any Restricted Shares lapse, the Company shall cause the legend
regarding the Restrictions set forth in Section 15(a) hereof to be
removed from the resulting Vested Shares and cause the resulting Vested Shares
to be delivered to a Company-Sponsored Equity Account in the name of the person
entitled to such Vested Shares (or, with the Company’s consent, such other
brokerage account as may be requested by such person); provided, however,
that, in the event such Vested Shares are subject to a legend regarding
securities law restrictions as set forth in Section 15(b) hereof, the
Company shall instead cause a certificate evidencing such Vested Shares and
bearing such legend to be delivered to the person entitled thereto.

 

9.             Committee
Discretion.  Except as may otherwise
be provided in the Plan, the Committee shall have sole discretion to (a) interpret
any provision of the Plan, the Grant Notice and these Award Terms, (b) make
any determinations necessary or advisable for the administration of the Plan
and the Award, and (c) waive any conditions or rights of the Company under
the Award, the Grant Notice or these Award Terms.  Without intending to limit the generality or
effect of the foregoing, any decision or determination to be made by the
Committee pursuant to these Award Terms, including whether to grant or withhold
any consent, shall be made by the Committee in its sole and absolute discretion,
subject only to the terms of the Plan. 
Subject to the terms of the Plan, the Committee may amend the terms of
the Award prospectively or retroactively; however, no such amendment may
materially and adversely affect the rights of Grantee taken as a whole without
Grantee’s consent.  Without intending to
limit the generality or effect of the foregoing, the Committee may amend the
terms of the Award (i) in recognition of unusual or nonrecurring events
(including, without limitation, events described in Section 10 hereof)
affecting the Company or any of its subsidiaries or affiliates or the financial
statements of the Company or any of its subsidiaries or affiliates, (ii) in
response to changes in applicable laws, regulations or accounting principles
and interpretations thereof, or (iii) to prevent the Award from becoming
subject to Section 409A of the Code.

 

10.           Adjustments.  Notwithstanding anything to the contrary
contained herein, pursuant to Section 13 of the Plan, the Committee will
make or provide for such adjustments to the Award as are equitably required to
prevent dilution or enlargement of the rights of Grantee that would otherwise
result from (a) any stock dividend, extraordinary dividend, stock split,
combination of shares, recapitalization or other change in the capital
structure of the Company, or (b) any change of control, merger,
consolidation, spin-off, split- off, spin-out, split-up, reorganization,
partial or complete liquidation or other distribution of assets, or issuance of
rights or warrants to purchase securities, or (c) any other corporate
transaction or event having an effect similar to any of the foregoing.  Moreover, in the event of any such
transaction or event, the Committee, in its discretion, may provide in
substitution for the Award such alternative consideration (including, without
limitation, cash or other equity awards), if any, as it may 

 

A-4

 

determine to be equitable in the circumstances and may
require in connection therewith the surrender of the Award.

 

11.           Section 409A.  Payments contemplated with respect to the
Award are intended to be exempt from Section 409A of the Code, and all
provisions of the Plan, the Grant Notice and these Award Terms shall be
construed and interpreted in a manner consistent with the requirements for
avoiding taxes or penalties under Section 409A of the Code.  Notwithstanding the foregoing, if any
provision of the Plan, the Grant Notice or these Award Terms would, in the
reasonable, good faith judgment of the Company, result or likely result in the
imposition on Grantee or any other person of a penalty tax under Section 409A
of the Code, the Committee may, in its sole discretion, modify the terms of the
Plan, the Grant Notice or these Award Terms, without the consent of Grantee, in
the manner that the Committee may reasonably and in good faith determine to be
necessary or advisable to avoid the imposition of such penalty tax.

 

12.           Registration
and Listing.  Notwithstanding
anything to the contrary contained herein, the Company shall not be obligated
to issue or transfer any Restricted Shares or Vested Shares, and no Restricted
Share Units or Vested Shares may be sold, assigned, transferred, pledged,
hypothecated or otherwise disposed of or encumbered in any way, unless such
transaction is in compliance with (a) the Securities Act of 1933, as
amended, or any comparable federal securities law, and all applicable state
securities laws, (b) the requirements of any securities exchange,
securities association, market system or quotation system on which securities
of the Company of the same class as the securities subject to the Award are
then traded or quoted, (c) any restrictions on transfer imposed by the
Company’s certificate of incorporation or bylaws, and (d) any policy or
procedure the Company has adopted with respect to the trading of its
securities, in each case as in effect on the date of the intended
transaction.  The Company is under no
obligation to register, qualify or list, or maintain the registration,
qualification or listing of, Restricted Shares or Vested Shares with the SEC,
any state securities commission or any securities exchange, securities
association, market system or quotation system to effect such compliance.  Grantee shall make such representations and
furnish such information as may be appropriate to permit the Company, in light
of the then existence or non-existence of an effective registration statement
under the Securities Act of 1933, as amended, relating to Restricted Shares or
Vested Shares, to issue or transfer Restricted Shares or Vested Shares in
compliance with the provisions of that or any comparable federal securities law
and all applicable state securities laws. 
The Company shall have the right, but not the obligation, to register
the issuance or transfer of Restricted Shares or Vested Shares or resale of
Restricted Shares or Vested Shares under the Securities Act of 1933, as
amended, or any comparable federal securities law or applicable state
securities law.

 

13.           Transferability.  Notwithstanding the Restrictions, with the Company’s
consent, Grantee may transfer Restricted Shares for estate planning purposes or
pursuant to a domestic relations order; provided, however, that
any transferee shall be bound by all of the terms and conditions of the Plan,
the Grant Notice and these Award Terms and shall execute an agreement in form
and substance satisfactory to the Company in connection with such transfer; and
provided, further that Grantee will remain bound by the terms and
conditions of the Plan, the Grant Notice and these Award Terms.

 

A-5

 

14.           Employment
Violation.  The terms of this Section 14
shall apply to the Restricted Shares if Grantee is or becomes subject to an
employment agreement with the Company or any of its subsidiaries or
affiliates.  In the event of an
Employment Violation, the Company shall have the right to require (a) the
forfeiture by Grantee to the Company of any Restricted Shares and (b) payment
by Grantee to the Company of the Recapture Amount with respect to such
Employment Violation; provided, however, that, in lieu of payment
by Grantee to the Company of the Recapture Amount, Grantee, in his or her
discretion, may tender to the Company the Vested Shares acquired during the
Look-back Period with respect to such Employment Violation and Grantee shall
not be entitled to receive any consideration from the Company in exchange
therefor.  Any such forfeiture of
Restricted Shares and payment of the Recapture Amount, as the case may be,
shall be in addition to, and not in lieu of, any other right or remedy
available to the Company arising out of or in connection with such Employment
Violation, including, without limitation, the right to terminate Grantee’s
employment if not already terminated and to seek injunctive relief and
additional monetary damages.

 

15.           Legends.

 

(a)           Restrictions.  The Company shall cause any Restricted Book
Entry evidencing the Restricted Shares to bear a notation substantially as
follows:

 

“THE SALE OR
TRANSFER OF THE SECURITIES REPRESENTED HEREBY, WHETHER VOLUNTARY, INVOLUNTARY
OR BY OPERATION OF LAW, IS SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AS SET
FORTH IN THE ACTIVISION, INC. 2007 INCENTIVE PLAN (THE “PLAN”), AND IN THE
ASSOCIATED NOTICE OF RESTRICTED SHARE AWARD, INCLUDING THE RESTRICTED SHARE
AWARD TERMS ATTACHED THERETO (THE “AWARD NOTICE”).  A COPY OF THE PLAN AND AWARD NOTICE MAY BE
OBTAINED FROM ACTIVISION, INC.”

 

(b)           Securities
Laws.  The Company may, if determined
by it based on the advice of counsel to be appropriate, cause any Restricted
Book Entry evidencing Restricted Shares or any certificate evidencing Vested
Shares to bear a notation or legend, as the case may be, substantially as
follows:

 

“THE SECURITIES
REPRESENTED HEREBY MAY NOT BE OFFERED FOR SALE, SOLD OR OTHERWISE
TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR PURSUANT TO AN EXEMPTION
FROM REGISTRATION UNDER THE ACT.”

 

16.           No Right to Continued Employment. 
Nothing contained in the Grant Notice or these Award Terms shall be
construed to confer upon Grantee any right to be continued in the 

 

A-6

 

employ of the Company or any of its subsidiaries or
affiliates or derogate from any right of the Company or any of its subsidiaries
or affiliates to retire, request the resignation of, or discharge Grantee at
any time, with or without cause.

 

17.           Severability.  In the event that one or more of the provisions
of these Award Terms shall be invalidated for any reason by a court of
competent jurisdiction, any provision so invalidated shall be deemed to be
separable from the other provisions hereof, and the remaining provisions hereof
shall continue to be valid and fully enforceable.

 

18.           Governing
Law.  To the extent that federal law
does not otherwise control, the validity, interpretation, performance and
enforcement of the Grant Notice and these Award Terms shall be governed by the
laws of the State of Delaware, without giving effect to principles of conflicts
of laws thereof.

 

19.           Successors
and Assigns.  The provisions of the
Grant Notice and these Award Terms shall be binding upon and inure to the
benefit of the Company, its successors and assigns, and Grantee and, to the
extent applicable, Grantee’s permitted assigns under Section 13 hereof and  Grantee’s estate or beneficiary(ies) as
determined by will or the laws of descent and distribution.

 

20.           Notices.  Any notice or other document which Grantee or
the Company may be required or permitted to deliver to the other pursuant to or
in connection with the Grant Notice or these Award Terms shall be in writing,
and may be delivered personally or by mail, postage prepaid, or overnight
courier, addressed as follows:  (a) if
to the Company, at its office at 3100 Ocean Park Boulevard, Santa Monica,
California 90405, Attn: Stock Plan Administration, or such other address as the
Company by notice to Grantee may designate in writing from time to time; and (b) if
to Grantee, at the address shown on any employment agreement or offer letter
between Grantee and the Company or any of its subsidiaries or affiliates in
effect from time to time, or such other address as Grantee by notice to the
Company may designate in writing from time to time.  Notices shall be effective upon receipt.

 

21.           Conflict
with Employment Agreement or Plan. 
In the event of any conflict between the terms of any employment
agreement or offer letter between Grantee and the Company or any of its
subsidiaries or affiliates in effect from time to time and the terms of the
Grant Notice or these Award Terms, the terms of the Grant Notice or these Award
Terms, as the case may be, shall control. 
In the event of any conflict between the terms of any employment agreement
or offer letter between Grantee and the Company or any of its subsidiaries or
affiliates in effect from time to time, the Grant Notice or these Award Terms
and the terms of the Plan, the terms of the Plan shall control.

 

22.           Deemed
Agreement.  By accepting the Award,
Grantee is deemed to be bound by the terms and conditions set forth in the
Plan, the Grant Notice and these Award Terms.

 

A-7

 

EXHIBIT B

ACTIVISION,
INC.

 

2007
INCENTIVE PLAN

 

SECTION 83(b) ELECTION
FORM

 

Election to
Include Value of Restricted Property in Gross Income

in Year of Transfer under Internal Revenue Code § 83(b)

 

The
undersigned (the “Taxpayer”)
hereby makes an election pursuant to Section 83(b) of the Internal
Revenue Code of 1986, as amended, with respect to the property described below
and supplies the following information in accordance with the applicable
federal income tax regulations:

 

1.             The name, address and taxpayer
identification number of the Taxpayer are:

 

	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer I.D. Number:

  	
   

  	
   

  
						

 

2.             Description of property with respect
to which the election is being made:

[              ] shares of Common Stock, par value
$0.000001 per share, of Activision, Inc., a Delaware corporation (the “Company”).

 

3.             Date of transfer; taxable year: 
The date on which property was transferred is [                        ].  The taxable year to which this election
relates is calendar year [            ].

 

4.             The nature of the restrictions to
which the property is subject:  The property
is subject to transfer restrictions by virtue of an agreement between the
Taxpayer and the Company, and the book entry on the Company’s stock register
evidencing the property bears a notation to that effect.  Except as otherwise described below, the
restrictions on the property will lapse as follows:

 

Schedule
for Lapse of Restrictions

 

	
  Date on which

  Restrictions Lapse

  	
   

  	
  Number of Shares

  as to which Restrictions Lapse

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  First anniversary of Date of Grant

  	
   

  	
  [                                 ]

  	
   

  
	
  Second anniversary of Date of Grant

  	
   

  	
  [                                 ]

  	
   

  
	
  Third anniversary of Date of Grant

  	
   

  	
  [                                 ]

  	
   

  
	
  [Fourth anniversary of Date of Grant]

  	
   

  	
  [                                 ]

  	
   

  
	
  [Fifth anniversary of Date of Grant]

  	
   

  	
  [                                 ]

  	
   

  

 

 

Unless
the Company decides otherwise, in the event that Taxpayer’s employment is
terminated for any reason, as of the date of such termination of employment the
restrictions will cease to lapse and all restricted property will immediately
be forfeited to the Company without payment of consideration by the Company.

 

5.             Fair market value: 
The fair market value at time of transfer (determined without regard to
any restrictions other than restrictions which by their terms will never lapse)
of the property with respect to which this election is being made is $[              ]
per share.

 

6.             Amount paid for property: 
Taxpayer did not pay any cash amount for the property.

 

7.             Furnishing statement to employer:  A
copy of this statement has been furnished to the Company.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature of Taxpayer

  

 

B-2

 

Instructions for Section 83(b) Election
Form

 

1.                                       The form must be filed with the Internal
Revenue Service Center (or other IRS office) at which the Taxpayer files his or
her federal income tax return and with the Company, in each case no later than
the 30th day after the date of grant set forth on the Notice of
Restricted Share Award to which this Section 83(b) Election Form is
attached as Exhibit B.

 

2.                                       In addition, the Taxpayer must submit one
copy of the form with his or her federal income tax return for the year in
which the date of grant occurred.

 

3.                                       The Section 83(b) election,
once made, is irrevocable, unless the Internal Revenue Service consents to the
revocation.

 

4.                                       The Taxpayer must sign the form.

 

B-3Exhibit 10.12

 

ACTIVISION,
INC.

 

2007 INCENTIVE PLAN

 

NOTICE OF RESTRICTED SHARE UNIT
AWARD

 

You
have been awarded Restricted Share Units of Activision, Inc. (the “Company”), as follows:

 

·                  Your name:  [                                                                                                                                                         ]

 

·                  Total number of Restricted Share Units awarded:  [                                                                                             ]

 

·                  Date of Grant:  [                                                                                                                                                     ]

 

·                  Grant ID:  [                                                                                                                                                             ]

 

·                  Your Award of Restricted Share Units is
governed by the terms and conditions set forth in:

 

·                  this Notice of Restricted Share Unit Award;

 

·                  the Restricted Share Unit Award Terms attached hereto
as Exhibit A (the “Award Terms”); and

 

·                  the Company’s 2007 Incentive Plan, the receipt of a
copy of which you hereby acknowledge.

 

·                  [Your Award of Restricted Share Units
has been made in connection with your employment agreement with the Company or
one of its subsidiaries or affiliates as a material inducement to your entering
into or renewing employment with such entity pursuant to such agreement, and is
also governed by any applicable terms and conditions set forth in such agreement.]

 

·                  Schedule for Vesting: 
Except as otherwise provided under the Award Terms, the Restricted Share
Units awarded to you will vest as follows, provided you remain continuously
employed by the Company or one of its subsidiaries or affiliates through each
such date:

 

Schedule for Vesting

 

	
  Date of
  Vesting

  	
   

  	
  No. of
  Restricted

  Share Units Vesting at

  Vesting Date

  	
   

  	
  Cumulative
  No. of

  Restricted Share Units

  Vested at Vesting Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  First
  anniversary of Date of Grant

  	
   

  	
  [                                  ]

  	
   

  	
  [                                      ]

  	
   

  
	
  Second
  anniversary of Date of Grant

  	
   

  	
  [                                  ]

  	
   

  	
  [                                      ]

  	
   

  
	
  Third
  anniversary of Date of Grant

  	
   

  	
  [                                  ]

  	
   

  	
  [                                      ]

  	
   

  
	
  [Fourth
  anniversary of Date of Grant]

  	
   

  	
  [                                  ]

  	
   

  	
  [                                      ]

  	
   

  
	
  [Fifth
  anniversary of Date of Grant]

  	
   

  	
  [                                  ]

  	
   

  	
  [                                      ]

  	
   

  

 

 

·                  Please
sign and return to the Company this Notice of Restricted Share Unit Award,
which bears an original signature on behalf of the Company.  You are urged to do so promptly.

 

·                  Please
return the signed Notice of Restricted Share Unit Award to the Company at:

 

Activision, Inc.

3100 Ocean Park Boulevard

Santa Monica, CA  90405

Attn:  Stock Plan Administration

 

You
should retain the enclosed duplicate copy of this Notice of Restricted Share
Unit Award for your records.

 

Any capitalized term used but not otherwise defined herein shall have
the meaning ascribed to such term in the Award Terms.

 

ACTIVISION,
INC.

 

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
					

 

 

ACCEPTED AND AGREED:

 

 

	
   

  	
   

  
	
  [Name of Grantee]

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
			

 

2

 

EXHIBIT
A

ACTIVISION, INC.

 

2007 INCENTIVE PLAN

 

RESTRICTED SHARE UNIT AWARD TERMS

 

1.             Definitions.

 

(a)           For
purposes of these Award Terms, the following terms shall have the meanings set
forth below:

 

“Award” means the award described on the Grant Notice.

 

“Award Terms” means these Restricted Share Unit Award Terms.

 

“Common Shares” means the shares of common stock, par value $0.000001
per share, of the Company or any security into which such Common Shares may be
changed by reason of any transaction or event of the type referred to in Section 9
hereof.

 

“Company” means Activision, Inc. and any successor
thereto.

 

“Company-Sponsored Equity Account” means an account that is created with
the Equity Account Administrator in connection with the administration of the
Company’s equity plans and programs, including the Plan.

 

“Date of Grant” means the Date of Grant of the Award set forth on the
Grant Notice.

 

“Employment Violation” means any material breach by Grantee of
his or her employment agreement with the Company or one of its subsidiaries or
affiliates for so long as the terms of such employment agreement shall apply to
Grantee (with any breach of the post-termination obligations contained therein
deemed to be material for purposes of these Award Terms).

 

“Equity Account Administrator” means the brokerage firm utilized by the
Company from time to time to create and administer accounts for participants in
the Company’s equity plans and programs, including the Plan.

 

“Grantee” means the recipient of the Award named on the Grant
Notice.

 

“Grant Notice” means the Notice of Restricted Share Unit Award to
which these Award Terms are attached as Exhibit A.

 

 

“Look-back Period” means, with respect to any Employment Violation by
Grantee, the period beginning on the date which is 12 months prior to the date of
such Employment Violation by Grantee and ending on the date of computation of
the Recapture Amount with respect to such Employment Violation.

 

“Plan” means the Activision, Inc. 2007 Incentive Plan,
as amended from time to time.

 

“Recapture
Amount” means, with respect to any Employment Violation by Grantee, the gross
gain realized or unrealized by Grantee upon all vesting of Restricted Share
Units or delivery or transfer of Vested Shares during the Look-back Period with
respect to such Employment Violation, which gain shall be calculated as the sum
of:

 

(i)            if Grantee has
received any Vested Shares during such Look-back Period and sold such Vested
Shares, an amount equal to the product of (A) the sales price per Vested
Share times (B) the number of such Vested Shares sold at such sales price;
plus

 

(ii)           if Grantee has
received any Vested Shares during such Look-back Period and not sold such
Vested Shares, an amount equal to the product of (A) the greatest of the
following: (1) the Market Value per Share of Common Shares on the date
such Vested Shares were issued or transferred to Grantee, (2) the
arithmetic average of the per share closing sales prices of Common Shares as
reported on NASDAQ for the 30 trading day period ending on the trading day
immediately preceding the date of the Company’s written notice of its exercise
of its rights under Section 12 hereof, or (3) the arithmetic average
of the per share closing sales prices of Common Shares as reported on NASDAQ
for the 30 trading day period ending on the trading day immediately preceding
the date of computation, times (B) the number of such Vested Shares which
were not sold.

 

“Restricted Share Units” means units subject to the Award, which
represent the conditional right to receive Common Shares in accordance with the
Grant Notice and these Award Terms, unless and until such units become vested
or are forfeited to the Company in accordance with the Grant Notice and these
Award Terms.

 

“Vested Shares” means Common Shares to which the holder of Restricted
Share Units becomes entitled upon vesting thereof in accordance with Section 2
or 3 hereof.

 

“Withholding Taxes” means any taxes, including, but not limited to,
social security and Medicare taxes and federal, state and local income taxes,
required to be withheld under any applicable law.

 

(b)           Any
capitalized term used but not otherwise defined herein shall have the meaning
ascribed to such term in the Plan.

 

2.             Vesting.  Except as
otherwise set forth in these Award Terms, the Restricted Share Units shall vest
in accordance with the “Schedule for Vesting” set forth on the Grant
Notice.  Each Restricted Share Unit, upon
vesting thereof, shall entitle the holder thereof to receive one Common Share
(subject to adjustment pursuant to Section 9 hereof).

 

A-2

 

3.             Termination of Employment.  Unless the Committee determines otherwise, in
the event that Grantee’s employment is terminated for any reason, as of the
date of such termination of employment any Restricted Share Units shall cease
to vest and shall immediately be forfeited to the Company without payment of
consideration by the Company.

 

4.             Tax Withholding. 
The Company shall have the right to require Grantee to satisfy any Withholding
Taxes resulting from the vesting of any Restricted Share Units, the issuance or
transfer of any Vested Shares or otherwise in connection with the Award at the
time such Withholding Taxes become due. 
Grantee shall be entitled to satisfy any Withholding Taxes contemplated
by this Section 4:  (a) by
delivery to the Company of a bank check or certified check or wire transfer of
immediately available funds; (b) with the Company’s consent, through the
delivery of irrevocable written instructions, in a form acceptable to the
Company, that the Company withhold Vested Shares otherwise then deliverable
having a value equal to the aggregate amount of the Withholding Taxes (valued
in the same manner used in computing the amount of such Withholding Taxes); or (c) with
the Company’s consent, by any combination of (a) and (b) above.  Notwithstanding anything to the contrary
contained herein, (i) the Company or any of its subsidiaries or affiliates
shall have the right to withhold from Grantee’s compensation any Withholding
Taxes contemplated by this Section 4 and (ii) the Company shall have
no obligation to deliver any Vested Shares unless and until all Withholding
Taxes contemplated by this Section 4 have been satisfied.

 

5.             Reservation of Shares.  The Company shall at all times reserve for
issuance or delivery upon vesting of the Restricted Share Units such number of Common
Shares as shall be required for issuance or delivery upon vesting thereof.

 

6.             Dividend Equivalents.  In the event that any cash dividends are declared
and paid on Common Shares to which the holder of the Restricted Share Units
would be entitled upon vesting thereof, such holder shall be paid, on the
payment date for such dividend, the amount that such holder would have received
if the Restricted Share Units had vested, and the Common Shares to which such
holder was thereupon entitled had been issued and outstanding and held of
record by such holder, as of the record date for such dividend; provided,
however, that no such dividend equivalents shall be paid if the
Restricted Share Units have been forfeited to the Company in accordance with Section 3
hereof prior to payment thereof. 
Notwithstanding the foregoing, in no event shall any such dividend
equivalents be paid later than the 45th day following the fiscal
year in which the related dividends are paid. 
For purposes of the time and form of payment requirements of Section 409A
of the Code, such dividend equivalents shall be treated separately from the
Restricted Share Units.

 

7.             Receipt and Delivery.  As soon as administratively
practicable (and, in any event, within 30 days) after any Restricted Share
Units vest, the Company shall (i) effect the issuance or transfer of the
resulting Vested Shares, (ii) cause the issuance or transfer of such
Vested Shares to be evidenced on the books and records of the Company, and (iii) cause
such Vested Shares to be delivered to a Company-Sponsored Equity Account in the
name of the person entitled to such Vested Shares (or, with the Company’s
consent, such other brokerage account as may be requested by such person); provided,
however, that, in the event such Vested Shares are subject to a legend
as set forth in Section 14 hereof, the Company shall instead cause a
certificate 

 

A-3

 

evidencing such Vested Shares and bearing such legend
to be delivered to the person entitled thereto.

 

8.             Committee
Discretion.  Except as may otherwise
be provided in the Plan, the Committee shall have sole discretion to (a) interpret
any provision of the Plan, the Grant Notice and these Award Terms, (b) make
any determinations necessary or advisable for the administration of the Plan
and the Award, and (c) waive any conditions or rights of the Company under
the Award, the Grant Notice or these Award Terms.  Without intending to limit the generality or
effect of the foregoing, any decision or determination to be made by the
Committee pursuant to these Award Terms, including whether to grant or withhold
any consent, shall be made by the Committee in its sole and absolute
discretion, subject only to the terms of the Plan.  Subject to the terms of the Plan, the
Committee may amend the terms of the Award prospectively or retroactively;
however, no such amendment may materially and adversely affect the rights of
Grantee taken as a whole without Grantee’s consent.  Without intending to limit the generality or
effect of the foregoing, the Committee may amend the terms of the Award (i) in
recognition of unusual or nonrecurring events (including, without limitation,
events described in Section 9 hereof) affecting the Company or any of its
subsidiaries or affiliates or the financial statements of the Company or any of
its subsidiaries or affiliates, (ii) in response to changes in applicable
laws, regulations or accounting principles and interpretations thereof, or (iii) to
prevent the Award from becoming subject to any adverse consequences under Section 409A
of the Code.

 

9.             Adjustments.  Notwithstanding anything to the contrary
contained herein, pursuant to Section 12 of the Plan, the Committee will
make or provide for such adjustments to the Award as are equitably required to
prevent dilution or enlargement of the rights of Grantee that would otherwise
result from (a) any stock dividend, extraordinary dividend, stock split,
combination of shares, recapitalization or other change in the capital
structure of the Company, or (b) any change of control, merger,
consolidation, spin-off, split- off, spin-out, split-up, reorganization,
partial or complete liquidation or other distribution of assets, or issuance of
rights or warrants to purchase securities, or (c) any other corporate
transaction or event having an effect similar to any of the foregoing.  Moreover, in the event of any such
transaction or event, the Committee, in its discretion, may provide in
substitution for the Award such alternative consideration (including, without
limitation, cash or other equity awards), if any, as it may determine to be
equitable in the circumstances and may require in connection therewith the
surrender of the Award.

 

10.           Registration and Listing.  Notwithstanding anything to the contrary
contained herein, the Company shall not be obligated to issue or transfer any
Restricted Share Units or Vested Shares, and no Restricted Share Units or
Vested Shares may be sold, assigned, transferred, pledged, hypothecated or
otherwise disposed of or encumbered in any way, unless such transaction is in
compliance with (a) the Securities Act of 1933, as amended, or any
comparable federal securities law, and all applicable state securities laws, (b) the
requirements of any securities exchange, securities association, market system
or quotation system on which securities of the Company of the same class as the
securities subject to the Award are then traded or quoted, (c) any
restrictions on transfer imposed by the Company’s certificate of incorporation
or bylaws, and (d) any policy or procedure the Company has adopted with
respect to the trading of its securities, in each case as in effect on the date
of the intended transaction.  The Company
is under no obligation to register, qualify or list, or maintain the
registration, qualification or listing 

 

A-4

 

of, Restricted Share Units or Vested Shares with the
SEC, any state securities commission or any securities exchange, securities
association, market system or quotation system to effect such compliance.  Grantee shall make such representations and
furnish such information as may be appropriate to permit the Company, in light
of the then existence or non-existence of an effective registration statement
under the Securities Act of 1933, as amended, relating to Restricted Share
Units or Vested Shares, to issue or transfer Restricted Share Units or Vested Shares
in compliance with the provisions of that or any comparable federal securities
law and all applicable state securities laws. 
The Company shall have the right, but not the obligation, to register
the issuance or transfer of Restricted Share Units or Vested Shares or resale
of Restricted Share Units or Vested Shares under the Securities Act of 1933, as
amended, or any comparable federal securities law or applicable state
securities law.

 

11.           Transferability.  Except as otherwise permitted under the Plan
or this Section 11, the Restricted Share Units shall not be transferable
by Grantee other than by will or the laws of descent and distribution.  With the Company’s consent, Grantee may
transfer Restricted Share Units for estate planning purposes or pursuant to a
domestic relations order; provided, however, that any transferee
shall be bound by all of the terms and conditions of the Plan, the Grant Notice
and these Award Terms and shall execute an agreement in form and substance
satisfactory to the Company in connection with such transfer; and provided,
further that Grantee will remain bound by the terms and conditions of
the Plan, the Grant Notice and these Award Terms.

 

12.           Employment Violation.  The terms of this Section 12 shall apply
to the Restricted Share Units if Grantee is or becomes subject to an employment
agreement with the Company or any of its subsidiaries or affiliates.  In the event of an Employment Violation, the
Company shall have the right to require (i) the forfeiture by Grantee to
the Company of any Restricted Share Units and (ii) payment by Grantee to
the Company of the Recapture Amount with respect to such Employment Violation; provided,
however, that, in lieu of payment by Grantee to the Company of the
Recapture Amount, Grantee, in his or her discretion, may tender to the Company
the Vested Shares acquired during the Look-back Period with respect to such
Employment Violation and Grantee shall not be entitled to receive any
consideration from the Company in exchange therefor.  Any such forfeiture of Restricted Share Units
and payment of the Recapture Amount, as the case may be, shall be in addition
to, and not in lieu of, any other right or remedy available to the Company
arising out of or in connection with such Employment Violation, including,
without limitation, the right to terminate Grantee’s employment if not already
terminated and to seek injunctive relief and additional monetary damages.

 

13.           Section 409A.

 

(a)           Payments
contemplated with respect to the Award are intended to comply with Section 409A
of the Code, and all provisions of the Plan, the Grant Notice and these Award
Terms shall be construed and interpreted in a manner consistent with the
requirements for avoiding taxes or penalties under Section 409A of the
Code.  Notwithstanding the foregoing, if
any provision of the Plan, the Grant Notice or these Award Terms would, in the
reasonable, good faith judgment of the Company, result or likely result in the
imposition on Grantee or any other person of a penalty tax under Section 409A
of the Code, the Committee may, in its sole discretion, modify the terms of the
Plan, the Grant Notice or these Award Terms, without the 

 

A-5

 

consent of Grantee, in the manner that the Committee
may reasonably and in good faith determine to be necessary or advisable to
avoid the imposition of such penalty tax.

 

(b)           Neither Grantee nor any of Grantee’s
creditors or beneficiaries shall have the right to subject any deferred
compensation (within the meaning of Section 409A of the Code) payable with
respect to the Award to any anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, attachment or garnishment.  Except as permitted under Section 409A
of the Code, any deferred compensation (within the meaning of Section 409A
of the Code) payable to Grantee or for Grantee’s benefit with respect to the
Award may not be reduced by, or offset against, any amount owing by Grantee to
the Company.

 

(c)           If (i) the Committee determines in good faith that
the issuance or transfer of Vested Shares to Grantee or his or her estate or
beneficiaries hereunder by reason of Grantee’s “separation from service” (as
defined in Section 409A of the Code) with the Company or any of its
subsidiaries or affiliates does not qualify for the “short-term deferral
exception” or otherwise would constitute a “deferral of compensation” under Section 409A
of the Code, (ii) Grantee is a “specified employee” (as defined in Section 409A
of the Code) and (iii) delay of payment is required by Section 409A
of the Code but is not already provided for by this Award, the Company shall
cause the issuance or transfer of such Vested Shares to Grantee or Grantee’s
estate or beneficiary upon the earlier of (A) the date that is the first
business day following the date that is six months after the date of Grantee’s
separation from service or (B) Grantee’s death.

 

14.           Legends.  The Company
may, if determined by it based on the advice of counsel to be appropriate,
cause any certificate evidencing Vested Shares to bear a legend substantially
as follows:

 

“THE SECURITIES REPRESENTED HEREBY MAY NOT BE
OFFERED FOR SALE, SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE ACT.”

 

15.           No Right to Continued Employment. 
Nothing contained in the Grant Notice or these Award Terms shall be
construed to confer upon Grantee any right to be continued in the employ of the
Company or any of its subsidiaries or affiliates or derogate from any right of
the Company or any of its subsidiaries or affiliates to retire, request the
resignation of, or discharge Grantee at any time, with or without cause.

 

16.           No Rights as Stockholder. 
No holder of Restricted Share Units shall, by virtue of the Grant Notice
or these Award Terms, be entitled to any right of a stockholder of the Company,
either at law or in equity, and the rights of any such holder are limited to
those expressed, and are not enforceable against the Company except to the
extent set forth in the Plan, the Grant Notice and these Award Terms.

 

A-6

 

17.           Severability.  In the event that one or more of the
provisions of these Award Terms shall be invalidated for any reason by a court
of competent jurisdiction, any provision so invalidated shall be deemed to be
separable from the other provisions hereof, and the remaining provisions hereof
shall continue to be valid and fully enforceable.

 

18.           Governing Law.  To the extent that federal law does not
otherwise control, the validity, interpretation, performance and enforcement of
the Grant Notice and these Award Terms shall be governed by the laws of the
State of Delaware, without giving effect to principles of conflicts of laws
thereof.

 

19.           Successors and Assigns.  The provisions of the Grant Notice and these
Award Terms shall be binding upon and inure to the benefit of the Company, its
successors and assigns, and Grantee and, to the extent applicable, Grantee’s
permitted assigns under Section 11 hereof and Grantee’s estate or
beneficiary(ies) as determined by will or the laws of descent and distribution.

 

20.           Notices.  Any notice or other document which Grantee or
the Company may be required or permitted to deliver to the other pursuant to or
in connection with the Grant Notice or these Award Terms shall be in writing,
and may be delivered personally or by mail, postage prepaid, or overnight
courier, addressed as follows:  (a) if
to the Company, at its office at 3100 Ocean Park Boulevard, Santa Monica,
California 90405, Attn: Stock Plan Administration, or such other address as the
Company by notice to Grantee may designate in writing from time to time; and (b) if
to Grantee, at the address shown in any employment agreement or offer letter
between Grantee and the Company or any of its subsidiaries or affiliates in
effect from time to time, or such other address as Grantee by notice to the
Company may designate in writing from time to time.  Notices shall be effective upon receipt.

 

21.           Conflict
with Employment Agreement or Plan. 
In the event of any conflict between the terms of any employment
agreement or offer letter between Grantee and the Company or any of its
subsidiaries or affiliates in effect from time to time and the terms of the
Grant Notice or these Award Terms, the terms of the Grant Notice or these Award
Terms, as the case may be, shall control. 
In the event of any conflict between the terms of any employment agreement
or offer letter between Grantee and the Company or any of its subsidiaries or
affiliates in effect from time to time, the Grant Notice or these Award Terms
and the terms of the Plan, the terms of the Plan shall control.

 

22.           Deemed
Agreement.  By accepting the Award,
Grantee is deemed to be bound by the terms and conditions set forth in the
Plan, the Grant Notice and these Award Terms.

 

A-7

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