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Exhibit 10.14    
  

 
 

Service Agreement    
  

	(1)
	Combined
Distribution (Holdings) Limited

	(2)
	Richard Andrew Steele

March 1,
2002 

 
 

Contents    
  

	1.	 	Definitions and interpretation	 	1
	2.	 	Appointment	 	4
	3.	 	Term	 	5
	4.	 	Duties of the Executive	 	5
	5.	 	Hours of work	 	5
	6.	 	Principal place of work	 	6
	7.	 	Salary	 	6
	8.	 	Expenses	 	6
	9.	 	Other Benefits	 	7
	10.	 	Holidays	 	8
	11.	 	Sickness or injury	 	8
	12.	 	Termination of and suspension from Employment	 	9
	13.	 	Acknowledgement by the Executive	 	11
	14.	 	Obligations during Employment	 	12
	15.	 	Obligations after Employment	 	14
	16.	 	Grievance procedure	 	15
	17.	 	General	 	15
	18.	 	Governing law and jurisdiction	 	16
	The Schedule	 	 
	Bonus	 	 

   
        This Agreement is made the 1st day of March 2002. 

        Between:

	(1)
	Combined Distribution (Holdings) Limited (company number: 3136477) whose registered office is at Unit 4/5 Holford Way Holford
Birmingham B6 7AX ("the Company"); and

	(2)
	Richard Andrew Steele of 213 Station Road, Knowle, Solihull, B93 0PU ("the Executive") 

        It is agreed as follows: 

	1.
	Definitions and interpretation

	1.1
	In
this Agreement, unless the context otherwise requires, the following expressions have the following meanings: 

	"Activision Inc."	 	Activision Inc., a Delaware corporation and the holding company of the Company;
	

"Agreement"	
 	

this Agreement (including any schedule or annexure to it and any document referred to in it or in agreed form);
	

"the Board"	
 	

the board of directors of the Company from time to time and includes any committee of the Board duly appointed by it;
	

"Businesses"	
 	

any trade or other commercial activity of any Group Company:
	

 	
 	

(a)	
 	

with which the Executive is concerned or involved to any material extent at any time during his Employment; or
	

 	
 	

(b)	
 	

which any Group Company shall at the Termination Date have determined to carry on with a view to profit in the immediate or foreseeable future and in relation to which the Executive, at the Termination Date, possesses any Confidential
Information;
	

 	
 	

(c)	
 	

to whom or which any Group Company shall at any time during the period of 12 months prior to the Termination Date have supplied any Restricted Products or Restricted Services;
	

"Company Invention"	
 	

any invention which is the property of the Company under Section 39(1), Patents Act 1977;
	
 	
 	

 	
 	

 	
 	

 

1

 

	

"Confidential Information"	
 	

any trade secrets or other information which is confidential, commercially sensitive and is not in the public domain relating or belonging to the Company including but not limited to information relating to the business methods, corporate plans,
management systems, finances, new business opportunities, research and development projects, marketing or sales of any past, present or future product or service, secret formulae, processes, inventions, designs, know-how discoveries, technical
specifications and other technical information relating to the creation, production or supply of any past, present or future product or service of the Company, lists or details of clients, potential clients or suppliers or the arrangements made with
any client or supplier and any information in respect of which the Company owes an obligation of confidentiality to any third party.
	

"Copyright Work"	
 	

Any work (including software) protected under Part 1, Chapter 1 of the Copyright Design and Patents Act 1988 created, originated, written or developed by you alone or with others during the term of your Employment;
	

"Customer"	
 	

Any person
	

 	
 	

a)	
 	

with whom or which you have dealt or of whom or of which you have knowledge by virtue of your duties in the 6 months preceding the Termination Date; and
	

 	
 	

b)	
 	

either:
	

 	
 	

 	
 	

(i)	
 	

who or which shall at the Termination Date be negotiating with the Company for the supply of any Restricted Products; or
	

 	
 	

 	
 	

(ii)	
 	

to whom or which the Company shall at any time during the period of 6 months prior to the Termination Date have supplied any Restricted Products;
	

"Developer"	
 	

any person or company with whom you have dealt by virtue of your duties in the months preceding the Termination Date and who has during that period provided software development services and products to the Company;
	
 	
 	

 	
 	

 	
 	

 

2

 

	

"Design"	
 	

any design for an article or part of an article created, originated or developed by you alone or with others during the term of your Employment protected under Section 213 of the Copyright Design and Patent Act 1988 and/or which is capable of
protection as a registered design:
	

"Duties"	
 	

the duties of the Executive as set out in clause 4;
	

"Employment"	
 	

the period of the Executive's employment under this Agreement which for the purposes of this Agreement shall be deemed to include any period of garden leave imposed under clause 12.5
	

"ERA 96"	
 	

Employment Rights Act 1996;
	

"Group Companies"	
 	

the Company, its subsidiaries or subsidiary undertakings, any holding company or parent undertaking and any subsidiary or subsidiary undertaking of any holding company or parent undertaking and "Group Company" means any of them;
	

"Invention"	
 	

any invention, know-how, technique, process, improvement or discovery which you (whether alone or with any other person) creates, originates, develops, writes or devises at any time during the term of your Employment and which relates or which could
relate, directly or indirectly, to the Businesses;
	

"Material Interest"	
 	

(a)	
 	

the holding of any position (whether employed or engaged) or provision of services as director, officer, employee, consultant, adviser, partner, principal, agent or volunteer;
	

 	
 	

(b)	
 	

the direct or indirect control or ownership (whether jointly or alone) of any shares (or any voting rights attached to them) or debentures save for the ownership for investment purposes only of not more than 5 per cent of the issued ordinary shares
of any company whose shares are listed on any Recognised Investment Exchange; or
	

 	
 	

(c)	
 	

the direct or indirect provision of any financial assistance;
	

"notice"	
 	

includes any notice, demand, consent or other communication
	

"Recognised Investment Exchange"	
 	

as defined in Section 207, Financial Services Act, 1986;
	

"Restricted Area"	
 	

the United Kingdom of Great Britain and Northern Ireland.
	
 	
 	

 	
 	

 	
 	

 

3

 

	

"Restricted Products"	
 	

any computer entertainment products in hardware format similar to those developed and published by the Company or any Group Company products of a kind which have been dealt in, produced, marketed or sold by the Company in the ordinary course of the
Business at any time during the 6 months preceding the Termination Date;
	

"Restricted Proposed Products"	
 	

any computer entertainment products in hardware format similar to those developed and published by the Company or any Group Company which are, at the Termination Date, proposed to be dealt in, produced, marketed or sold by the Company at any time
during the 6 months following the Termination Date and in respect of which or the marketing of which you have been involved;
	

"Termination Date"	
 	

the date on which the Employment terminates.

	1.2
	In
this Agreement, unless the context otherwise requires:

	(a)
	words
in the singular include the plural and vice versa and words in one gender include any other gender;

	(b)
	a
reference to a statute or statutory provision includes:

	(i)
	any
subordinate legislation (as defined in Section 21(1), Interpretation Act 1978) made under it; and

	(ii)
	any
statute or statutory provision which modifies, consolidates, re-enacts or supersedes it; 

	(c)
	a
reference to:

	(i)
	a
"person" includes any individual, firm, body corporate, association or partnership, government or
state (whether or not having a separate legal personality);

	(ii)
	clauses
and schedules are to clauses and schedules of this Agreement and references to sub-clauses and paragraphs are references to
sub-clauses and paragraphs of the clause or schedule in which they appear; 

	(d)
	the
table of contents and headings are for convenience only and shall not affect the interpretation of this Agreement and

	(e)
	words
and phrases defined in the City Code on Take-Overs and Mergers or in the Companies Act 1985 have the same meaning in this Agreement. 

	2.
	Appointment

	2.1
	The
Company appoints the Executive and the Executive agrees to serve as President, ATVI Distribution/Executive Vice President Activision and Managing Director of the Company on the
terms set out in his agreement.

	2.2
	The
Executive warrants that he is not bound by, nor subject to any court order, arrangement, restriction or undertaking, which prohibits or restricts him from entering into this
Agreement or performing his Duties. 

4

 
	3.
	Term

	3.1
	The
Employment shall commence on 1 March 2002 and, unless terminated in accordance with clause [12] (Termination of and suspension from Employment),
shall continue for a fixed period, to terminate on 28 February 2005. The Company shall have the option, at its absolute discretion, and with the Executive's consent, to extend the fixed term
for an additional one-year period by giving the Executive not less than four months prior notice before the expiration of the initial fixed term. If the Company and/or the Executive do not
exercise the option to extend the fixed term, the Executive's employment under the provisions of this agreement will terminate without additional notice by expiry of the fixed term. Nothing in this
agreement precludes the Executive from pursuing statutory termination or redundancy benefits, if available, in the event that the Company does not exercise the option to extend the fixed term or
otherwise terminates the Executive without cause as defined in clause 12.

	3.2
	The
Executive's previous employment with Combined Distribution (Holdings) Limited shall be treated as part of his continuous period of employment, which accordingly began on 1
July 1985.

	4.
	Duties of the Executive

	4.1
	Relating to the Company

        The
Executive shall at all times during his Employment: 

	(a)
	Unless
prevented by ill health and except during holidays taken in accordance with clause [10] (Holidays), devote the whole of his working time and attention
to the service of the Company;

	(b)
	Faithfully
and diligently perform the duties attaching to his office or which are from time to time assigned to or vested in him and exercise the powers consistent with them;

	(c)
	obey
all lawful and reasonable directions of the Board and implement and abide by any relevant Company policy which may be promulgated or operated in practice from time to time;

	(d)
	use
all reasonable endeavours to promote the interests of each Group Company, and not do or willingly permit to be done anything which is harmful to those interests; and

	(e)
	keep
the Board and the Board of Directors and management of Activision, Inc. fully informed (in writing if so requested) of his conduct of the business or affairs of each Group
Company and provide such explanations as the Board and Activision, Inc. may require. 

	4.2
	Relating to the Group Companies

The
Executive shall (without further remuneration and in addition to his duties to the Company) if and for so long as the Company requires during his Employment: 

	(a)
	carry
out any duties as may from time to time be assigned to him in relation to any Group Company; and

	(b)
	act
as an officer of any Group Company or hold any other appointment or office as nominee or representative of any Group Company; 

in
each case as if they were to be performed or held by him for or in relation to the Company. 

	5.
	Hours of work

	5.1
	The
normal business hours of the Company are 9.00am to 5.30pm with one hour break for lunch Monday to Friday. The executive shall work such further hours as may be necessary for the
proper discharge of his Duties and he shall not be entitled to receive any additional remuneration for 

5

 

work
outside normal business hours. Lunch breaks and other breaks provided to you will not constitute working time. 

	5.2
	By
the Executive's signature to this statement the Executive confirms that he does not undertake any other work for any employer and undertakes to seek the consent of the Company
before undertaking work for any other employer.

	5.3
	The
Executive agrees to fully co-operate in assisting the Company to maintain accurate records of working hours if requested by the Company.

	6.
	Principal place of work

	6.1
	The
Executive's principal place of work shall be at Holford Way, Holford, Birmingham, or such other location in the U.K. as constitutes the Company's principal place of business from
time to time.

	6.2
	The
company may require the Executive to work at a location other than the principal place of work for a period not exceeding 2 weeks as the Company may determine. The Executive shall
travel in the UK and abroad as the Board may reasonably require for the performance of his Duties.

	6.3
	There
is no current requirement as at the date of this agreement for the Executive to work outside of the UK for any consecutive period of one month or more.

	7.
	Salary

	7.1
	During
his employment the Company shall pay to the Executive:

	(a)
	a
basic salary at the rate of £190,000 per annum. This salary shall accrue from day to day, be payable by equal monthly instalments in arrears on or about the last Friday
of each month and shall include any fees to which the Executive is entitled as a director of any Group Company; and

	(b)
	a
bonus calculated in accordance with the provisions of the International Distribution Incentive Plan or the Executive Bonus Plan as appropriate. The Company reserves the right to
review and potentially modify its incentive plans on an annual basis as business needs warrant. The Executive will not be eligible for such bonus if he leaves the Company voluntarily at any point
during the Company's financial year prior to end of the Executive's term as defined in clause 3.1 or if the Executive is terminated in accordance with clause 12. The Company reserves the
right to review and potentially modify its bonus plans at anytime. 

	7.2
	The
Executive's basic salary shall be reviewed with effect from 1 April in each year. The review shall be at the discretion of Activision, provided that the annual basic salary
increase shall not be less than 7% of the immediately preceding basic salary.

	7.3
	The
Company is entitled to deduct from the Executive's salary or any other payment due to the Executive including any payment due to the Executive upon termination of his Employment
any sums properly due from the Executive to the Company. Such forms include, without limitation, repayment or any loans or advances (including advances on expenses), repayment of any overpaid holiday
pay, salary or benefits and the cost of any damage to or loan of the Company's property.

	8.
	Expenses

	8.1
	Subject
to clause 8.2 below, the Company shall reimburse to the Executive all hotel, travelling, entertainment and other out of pocket expenses reasonably and properly incurred
by him in the performance of his Duties subject to him producing to the Company any vouchers or other evidence of actual payment of the expenses as the Company may reasonably require. 

6

 
	8.2
	The
Company shall reimburse the Executive in respect of his home telephone bill and private and business petrol expenses, provided that such reimbursements shall not be made at a
level materially greater than that at which they were made in the six months prior to the date of this Agreement.

	8.3
	Any
credit card or charge card supplied to the Executive by the Company shall be used solely for expenses incurred by him in carrying out his Duties and for private petrol.

	9.
	Other Benefits

	9.1
	Motor car

	(a)
	The
Company shall provide and maintain for the sole use of the Executive a Motor Car and all expenses and petrol in connection with its private and business use shall be paid or
reimbursed to the Executive by the Company on presentation of appropriate receipts if required, subject to the provisions of clause 8.2 above.

	(b)
	A
new Motor Car will be supplied to the Executive after 3 years or 75,000 miles, whichever occurs first.

	(c)
	The
Motor Car may be used by persons other than the Executive with the Executive's permission and provided that such use is in compliance with the Company's motor insurance policy
covering the Motor Car.

	(d)
	The
Executive shall not authorise any person to use the Motor Car who is not in possession of a valid driving licence

	(e)
	The
Company reserves the right to vary the terms and/or rules regarding Company Vehicles

	(f)
	The
Executive shall abide by the Company's Car Scheme Rules in force from time to time. 

	9.2
	Mobile telephone

The
Company shall provide to the Executive a mobile telephone and will pay all running expenses except the cost of non-business calls made by him in connection with it. 

	9.3
	Pension

	(a)
	Subject
to the terms of its deed and rules from time to time, the Executive shall be eligible to join the Stanplan A Pension Scheme details of which are available from the Company
Secretary.

	(b)
	The
Company shall pay into the Scheme or a pension scheme of the Executive's choice an annual sum not less than 10% of the Executive's annual basic salary.

	(c)
	On
the Executive's election to cease to be a member of the Scheme or on termination of this Agreement, benefits accrued under the Scheme shall be capable of transfer to alternative
pension arrangements of the Executive's direction subject to the rules of the Scheme.

	(d)
	The
Company's contributions shall be calculated and paid on a monthly basis so that in the year of joining or leaving, the amount of such contribution shall be reduced pro rata for
each complete calendar month worked.

	(e)
	No
contracting-out certificate pursuant to the Pension Schemes Act 1993 is in force in respect of the Employment. 

7

  

	9.4
	Stock Options

The
Executive shall be granted, under Activision Inc.'s existing or modified stock option plan, a non-qualified stock option ("NQSO") to purchase 100,000 shares of Activision's
common stock. The option to purchase 100,000 shares referred to above will be issued on February 20, 2002 (the date this offer was approved) and will vest as follows: 25,000 shares will vest on
March 1, 2003; 25,000 shares will vest on March 1, 2004; 25,000 shares will vest on March 1, 2005; and 25,000 shares will vest on March 1, 2006. Such option will have an
exercise price that will be the market low of such common stock on the date the options are issued and will be governed in all other respects by Activision's stock option plan in effect at the time of
grant. The Executive also shall be eligible to receive additional options, under Activision's existing or modified stock option plan, if Activision's Board of Directors (or the Compensation Committee
of such Board of Directors), in its sole and absolute discretion, determines that the grant to you of additional options is appropriate. 

The
terms of Employment shall not be affected in any way by the grant of stock options to the Executive, and the rights deriving from such grant shall not form part of such terms (either expressly or
implied) nor in any way entitle the Executive to take into account such participation in calculating any compensation or damages on the termination of Employment for whatever reason (whether lawful or
unlawful) which might otherwise be payable to the Executive. 

	9.5
	Life Assurance

The
Executive shall be entitled to participate during his employment in the Company's group life assurance scheme from time to time whereby the Executive's life is insured for the benefit of his
estate for four times his salary referred to in clause 7.1(a). 

	10.
	Holidays

	10.1
	The
Company's holiday year runs from 1 January to 31 December.

	10.2
	In
addition to public holidays and other holidays observed by the Company, the Executive is entitled to 30 working days' paid holiday in each holiday year, to be taken at such time
or times as are agreed with the Board.

	10.3
	The
Executive may not, without the consent of the Board;

	(a)
	carry
forward any unused part of his holiday entitlement to a subsequent holiday year; or

	(b)
	be
entitled to payment in lieu for any unused holiday entitlement. 

	10.4
	For
the holiday year during which the Employment commences or terminates, the Executive's entitlement to holiday shall accrue on a pro rata basis for each complete month of his
Employment during that holiday year.

	10.5
	On
termination of his Employment the Executive shall be entitled to pay in lieu of any outstanding holiday entitlement and shall be required to repay to the Company any salary
received for holiday taken in excess of his actual entitlement.

	10.6
	Other
than at the request of, or with the permission of, the Company, the Executive may not take holiday during a period of notice to terminate his Employment.

	11.
	Sickness or injury

	11.1
	If
the Executive is unable to perform his Duties due to sickness or injury he shall report this fact as soon as possible and, if practicable, by 10 am on the first working day of
incapacity to the Company Secretary, and provide, so far as practicable, an expected date of return to work. 

8

 
	11.2
	The
Executive shall:

	(a)
	if
absent for under 7 days, on his return to work complete a self-certification form detailing the reason for his absence; and

	(b)
	if
absent for 7 or more consecutive days and for shorter absence if so required, produce a doctor's certificate on the eight day and weekly after that so that the whole period of
absence is covered by these certificates. 

	11.3
	Except
as set out in sub-clause 11.4, if the Executive is absent due to sickness of injury duly certified in accordance with the provisions of
sub-clause 11.2, he shall be paid his full salary for up to 6 months absence in any period of 12 consecutive months and after that such remuneration, if any, as the Board
shall determine from time to time.

	11.4
	Any
remuneration paid under sub-clause 11.3 shall:

	(a)
	not
be less than any proceeds received by the Company in respect of the Executive under the Company's permanent health insurance scheme; and

	(b)
	be
inclusive of any Statutory Sick Pay to which the Executive is entitled under the provisions of the Social Security and Housing Benefits Act 1982 and any Social Security Sickness
Benefit or other benefits recoverable by the Executive (whether or not recovered) which may be deducted from it. 

	11.5
	For
Statutory Sick Pay purposes, the Executive's qualifying days are his normal workings days.

	11.6
	At
any time during the period of his Employment, (but not normally more often that once every second year) the Executive shall, at the request and expense of the Company:

	(a)
	consent
to an examination by a doctor to be selected by the Company; and

	(b)
	authorise
this doctor to disclose to and discuss with the Company's medical adviser, or other nominated officer of the Company, the results of or any matter arising out from this
examination. 

	11.7
	The
Company shall provide and maintain on behalf of the Executive permanent health insurance subject to the rules of the Scheme.

	11.8
	The
Company shall provide and maintain on behalf of the Executive, his wife or partner and any dependent children membership in a BUPA Scheme or any other scheme providing equivalent
benefits subject to the rules of the Scheme.

	12.
	Termination of and suspension from Employment

	12.1
	Automatic termination

The
Employment shall automatically terminate: 

	(a)
	when
the Executive reaches the age of 60; or

	(b)
	if
the Executive becomes prohibited by law from being a director. 

	12.2
	Suspension

In
order to investigate a complaint against the Executive of misconduct the Company may suspend the Executive on full pay for so long as may be necessary to carry out a proper investigation and hold a
disciplinary hearing. 

	12.3
	Immediate dismissal

9

 

The
Company may by notice terminate the Employment without notice or pay in lieu of notice if the Executive: 

	(a)
	fails
or neglects efficiently, diligently and competently to carry our his Duties or repeats or continues (after a written warning) any other material breach of his obligations under
this Agreement;;

	(b)
	commits
any act of gross misconduct or is guilty of any conduct which in the reasonable opinion of the Board brings him or any Group Company into disrepute or is calculated or likely
prejudicially to affect the interests of any Group Company, whether or not the conduct occurs during or in the context of his Employment;

	(c)
	is
convicted of any criminal offence punishable with imprisonment (other than an offence under road traffic legislation in the United Kingdom or elsewhere for which he is not
sentenced to any term of imprisonment whether immediate or suspended);

	(d)
	commits
any act of dishonesty relating to any Group Company, any of its employees or otherwise;

	(e)
	becomes
of unsound mind or a patient within the meaning of the Mental Health Act1983; so that in the opinion of the Board he is unable to perform his duties;

	(f)
	becomes
bankrupt or makes any arrangement or composition with his creditors generally. 

	12.4
	Pay in lieu

	(a)
	on
serving notice for any reason to terminate the Employment or at any time during the currency of the notice the Company may elect (but shall not be obliged) to terminate the
Employment forthwith and to pay to the Executive his basic salary (at the rate then payable under sub-clause 7.1(a) for the unexpired portion of the duration of his Employment or
entitlement to notice as the case may be during this period. The Company will pay the salary due and payable under this sub-clause (subject to deduction of tax and national insurance
contributions at source) in 4 equal instalments at equally spaced intervals in advance during the period.

	(b)
	In
the event that the Company shall elect to terminate the Employment with immediate effect pursuant to clause 12.4 (a), the Executive undertakes to inform the Company in
writing as soon as he receives an offer of employment and to commence that employment as soon as is reasonably practicable. The Executive agrees that no further monies will become due under
sub-clause (a) with effect from the first day of paid alternative employment and undertakes to repay any monies paid in advance which relate to any period of paid alternative
employment. 

	12.5
	Garden leave

	(a)
	At
any time during the Executive's Employment or after notice to terminate the Employment has been given by the Executive or the Company, the Company may in its absolute discretion:

	(i)
	require
the Executive to perform only such duties (including without limitation research projects) as it may allocate to him;

	(ii)
	require
the Executive not to perform any of his Duties;

	(iii)
	require
the Executive not to have any contact with clients of the Company;

	(iv)
	require
the Executive not to have any contact with such employees or suppliers or Developers of the Company as the Company shall determine;

	(v)
	exclude
the Executive from any Company premises 

10

 

provided
always that throughout the period of any such action referred to in this clause 12.6 (a), the Executive's salary and contractual benefits shall not cease to accrue or be paid or
provided subject to the other provisions of this Agreement. 

	(b)
	The
Executive acknowledges that such action taken on the part of the Company shall not constitute a breach of this Agreement of any kind whatsoever nor shall the Executive have any
claim against the Company in respect of any such action.

	(c)
	The
Executive shall during any such period of garden leave be under a duty of the utmost good faith, must not work for any other person or on his own account and shall remain readily
contactable and available for work and, should he fail to make himself available for work having been requested by the Company to attend, he shall, notwithstanding any other provision of this
Agreement, forfeit his right to salary and contractual benefits in respect of such period of non-availability. 

	12.6
	Effect of termination

On
the Termination Date: 

	(a)
	The
Executive shall at the request of the Company resign (without prejudice to any claims which he may have against any Group Company arising out of the Employment or its termination)
from all and any offices which he may hold as a director of any Group Company and from all other appointments or offices which he holds as nominee or representative of any Group Company and if he
should fail to do so within 7 days the company is irrevocably authorised to appoint some person in his name and on his behalf to sign any documents or do any things necessary or requisite to
effect such resignation(s) and/or transfer(s);

	(b)
	The
Executive shall:

	(i)
	Return
to the Company all documents, computer disks and tapes and other tangible items in his possession or under his control which belongs to any Group
Company or which contain or refer to any Confidential Information; and

	(ii)
	Delete
all Confidential Information from any computer disks, tapes or other re-usable material in his possession or under his control or
destroy all other documents and tangible items in his possession or under his control which contain or refer to any Confidential Information. 

	13.
	Acknowledgement by the Executive

The
Executive acknowledges that: 

	(a)
	each
Group Company possesses a valuable body of Confidential Information;

	(b)
	each
Group Company will give him access to Confidential Information to enable him to carry out his Duties:

	(c)
	his
duties include, amongst other things, a duty of trust and confidence and a duty to act at all times in the best interests of each Group Company;

	(d)
	the
Company requires all its senior employees to accept restrictions which are similar to those set out in clause 14 (Obligations during Employment) and clause 15
(Obligations after Employment) for the mutual protection of its Businesses and employees;

	(e)
	the
following would be likely to place that company at a serious competitive disadvantage and cause immeasurable (financial and other) damage to the Businesses:

	(i)
	the
disclosure of Confidential Information to any customer or actual or potential competitor of any Group Company; and 

11

 

	(ii)
	if,
on leaving the Employment, the Executive was to hold any Material Interest in a Customer or any actual or potential competitor of any Group
Company; 

	(f)
	the
Confidential Information known by the Executive enables him to perform his management duties;

	(g)
	the
success of the Businesses depends, in part, on the Executive's successor and/or fellow employees establishing business relationships with the customers of and suppliers to the
Businesses with are similar to those established and maintained by the Executive during his Employment for the purposes of ensuring an orderly hand over to a successor. 

	14.
	Obligations during Employment

	14.1
	Inventions

	(a)
	The
Executive shall promptly disclose to the Company (which disclosure shall be treated in strictest confidence) full details, of any improvement, Invention or discovery including
without limitation any and all computer programmes, photographs, plans, records, drawings and models whatsoever which he (whether alone or with any other person) makes at any time during his
Employment an which relates or could relate, directly or indirectly, to the Businesses.

	(b)
	If
the improvement, Invention or discovery is a Company Invention, the Executive shall (to the extent that it does not automatically vest in the Company by operation of law) hold it
in trust for the Company and, at the request and expense of the Company, do all things necessary or desirable to enable the Company or its nominee to obtain for itself the full benefit of and to
secure patent or other appropriate forms of protection for the Company Invention throughout the world.

	(c)
	[If
the improvement, invention or discovery is not a Company Invention, the Company shall treat all information disclosed to it by the Executive as confidential property
of the Executive.]

	(d)
	The
patenting obtaining of any registered intellectual property right protection and exploitation of any Company Invention shall be at the sole discretion of the Company and prior to
disclosure of any improvement, Invention or discovery as set out in clause 14(a) above, you shall not make any application for registered intellectual property protection. 

	14.2
	Copyright etc

	(a)
	The
Executive shall promptly disclose to the Company all Copyright Works or Designs originated, conceived, written or made by him alone or with other during his Employment which
relate, or could relate, directly or indirectly, to the Businesses and shall (to the extent that they do not automatically vest in the Company by operation of law) hold them in trust for the Company
until such rights have been fully and absolutely vested in the Company.

	(b)
	The
Executive assigns to the Company by way of present and future assignment (to the extent not already vested in the Company by operation of law) all copyright, design rights,
registered and unregistered and other proprietary rights (if any) for their full terms throughout the world in respect of Copyright Works and Designs and registered and unregistered trademarks
originated, conceived, written or made by him alone or with others during his Employment which relate, or could relate directly or indirectly to the Businesses.

	(c)
	The
Executive irrevocably and unconditionally waives in favour of the Company and all moral rights conferred on him by Chapter IV, Part I, Copyright Designs and Patents Act
1988 and any other moral rights provided for under the laws, now or in future in force in any part of the world for any work the rights in which are vested in the Company whether by
sub-clause (b) or otherwise. 

12

 

	(d)
	The
Executive shall, at the request and expense of the Company, do all things necessary or desirable to substantiate the rights of the Company under sub-clauses
(b) and (c). 

	14.3
	Share Dealings etc

	(a)
	The
Executive shall comply, where relevant with very rule of law, every requirement of the London Stock Exchange Limited, the United States Security and Exchange Commission or any
other recognised Investment Exchange and every regulation of any Group Company from time to time in force relating to dealings in shares, debentures or other securities of any Group Company and, in
relation to overseas dealings, the Executive shall also comply with all laws of the state and all regulations of the stock exchange, market or dealing system in which such dealings take place.

	(b)
	The
Executive shall not (and shall procure so far as he is able that his spouse and children shall not) deal or become or cease to be interested (within the meaning of Part 1
Schedule 13, Companies Act 1985) in any securities of Group Company without complying with such Group Company rules or guidelines from time to time relating to Securities transactions by
directors. 

	14.4
	Conflict of interest

The
Executive agrees that during his Employment: 

	(a)
	he
shall not:

	(i)
	directly
or indirectly disclose to any person or use other than for any legitimate purposes of any Group Company any Confidential Information;

	(ii)
	without
the Board's prior written permission hold any Material Interest in any person which:

	(A)
	is
or shall be wholly a party in competition with any of the Businesses;

	(B)
	impairs
or might reasonably be thought by the Company to require him to disclose or make use of any Confidential Information in order properly to discharge his duties to or to further
his interest in that person; 

	(iii)
	at
any time make any untrue or misleading statement in relation to any Group Company.

	(iv)
	directly
or indirectly receive or obtain in respect of any goods or services sold or purchased or other business transacted (whether or not by him) by
or on behalf of any Group Company any discount, rebate, commission or other inducement (whether in cash or in kind) which is not authorised by any company rules or guidelines from time to time and if
he or any person in which he holds any Material Interest shall obtain any such discount, rebate, commission or inducement, he shall immediately account to the Company for the amount so received;

	(v)
	other
than to carry out his Duties, without the prior authority of the Company remove from the premises of any Group Company or copy or allow others to
copy the contents of any document, computer disk, tape or other tangible item which contains or refers to any Confidential Information or which belongs to any Group Company;

	(vi)
	at
any time (whether during or outside normal working hours) take any preparatory steps to become engaged or interested in any capacity whatsoever in
any business or venture which is in or is intended to enter into competition with any of the Businesses. 

	(b)
	he
shall, at the request of the Company; 

13

 

	(i)
	return
to the Company all documents, computer disks and tapes and other tangible items in his possession or under his control which belongs to any Group
Company or which contain or refer to any Confidential Information and;

	(ii)
	delete
all Confidential Information from any computer disks, tapes or other re-usable material in his possession or under his control and
destroy all other documents and tangible items in his possession or under his control, which contain or refer to any Confidential Information. 

	14.5
	Power of attorney

The
Executive irrevocably appoints the Company as his attorney in his name and on his behalf to execute documents, to use his name and to do all things which may be necessary or desirable for the
Company to obtain for itself or its nominee the full benefit of the provision of sub-clause 14.1 (b) and 14.2 (b) and a certificate in writing signed by any director
or the Company Secretary that any instrument or act falls within the authority conferred by this paragraph shall be conclusive evidence that such is the case so far as any third party is concerned. 

	15.
	Obligations after Employment

	15.1
	The
Executive shall not within the Restricted Area directly or indirectly for the period of 6 months after the Termination Date, hold any Material Interest in any person
which:

	(a)
	is
or shall be wholly or partly in competition with any of the Businesses; or

	(b)
	requires
or might reasonably be thought by the Company to require him to disclose or make use of any Confidential Information in order properly to discharge his duties to or to
further his interest in that person. 

Provided
that throughout the period of 6 months after the Termination Date the Company continues to pay the Executive's basic salary. 

	15.2
	The
Executive shall not directly or indirectly, whether on his own behalf or on the behalf of another person:

	(a)
	for
the period of 6 months after the Termination Date:

	(i)
	seek,
canvass or solicit in any capacity whatsoever any business, order or custom for any Restricted Products or Restricted Proposed Products from any
Customer;

	(ii)
	accept
in any capacity whatsoever order for any Restricted Products or Restricted Proposed Products from any Customer. 

Provided
that throughout the period of 6 months after the Termination Date the Company continues to pay the Executive's basic salary. 

	(b)
	at
any time after the Termination Date:

	(i)
	induce
or seek to induce by any means involving the disclosure or use of Confidential Information any Customer or Developer to cease dealing with any
Group Company or to restrict or vary the terms upon which it deals with any Group Company;

	(ii)
	represent
himself or permit himself to be held out by any person, as being in any way connected with or interested in any Group Company; and

	(iii)
	disclose
to any person, or make use of any Confidential Information.

	(iv)
	for
a period of 12 months following the Termination Date solicit or entice away or seek to entice away from any Group Company any person who is
and was at the Termination Date or during the period of 12 months preceding the Termination Date employed or 

14

 

engaged
by the Company or by any Group Company in any of the Businesses in a senior managerial, technical, supervisory, sales, marketing or senior financial capacity; and was a person with whom the
Executive dealt in the course of the Duties or who be reason of such employment or engagement is likely to have knowledge of any trade secrets or Confidential Information of the Company or any Group
Company. 

	16.
	Grievance procedure

	16.1
	The
Executive is subject to the Company's disciplinary rules and procedures for the time being in force (a copy of which is available from the Company Secretary) and such other
procedures of this nature as may from time to time be adopted.

	16.2
	Application
of the disciplinary procedure is discretionary and is not a contractual entitlement. Any appeal against any disciplinary decision should be made in the first instance in
writing to the person who took the decision.

	16.3
	If
the Executive has any grievance relating to his Employment (other than one relating to a disciplinary decision) he should refer such grievance to the Chairman of the Board and if
the grievance is not resolved by discussion with him it will be referred to the Board for resolution.

	17.
	General

	17.1
	Prior agreements

This
Agreement is in substitution for any previous contracts of employment and such prior agreements are hereby terminated. 

	17.2
	Accrued rights

The
expiration or termination of the Employment or this Agreement however arising shall not operate to affect such of the provisions of this Agreement as are expressed to operate or have effect after
that date and shall be without prejudice to any accrued rights or remedies of the parties. 

	17.3
	Variation

No
purported variation of this Agreement shall be effective unless it is in writing and signed by or on behalf of each of the parties. 

	17.4
	Invalidity

To
the extent that any provision of this Agreement is found by any court or competent authority to be invalid, unlawful or unenforceable in any jurisdiction, that provision shall be deemed not to be
part of this Agreement, it shall not affect the enforceability of the remainder of this Agreement nor shall it affect the validity, lawfulness or enforceability of that provision in any other
jurisdiction. 

	17.5
	Assignment

The
rights and obligations of the Company under this Agreement shall be transferred to its successors and assignors. The Executive may not, however, transfer or assign his rights or obligations under
this Agreement. 

	17.6
	Undertakings

The
Executive has given the undertakings contained in clause 15 (Obligations after Employment) to the Company as trustee for itself and for each Group Company and will at the request and cost
of the Company enter into direct undertakings with any Group Company which correspond to the undertakings in clause 15, (Obligations after Employment) or which are less onerous only to the 

15

 

extent necessary (in the opinion of the Company or its legal advisors) to ensure that such undertakings are valid and enforceable. 

	17.7
	Indemnity

The
Executive will indemnify each Group Company from and against all actions, claims, costs, proceedings, expenses, loss or damage (including, without limitation legal costs) which may arise directly
or indirectly from the unauthorised disclosure or use of the Confidential Information by the Executive or directly from any other breach of the terms of this Agreement by the Executive. 

	17.8
	Release and waivers

	(a)
	The
rights, powers and remedies conferred on any party by this Agreement and remedies available to the Company are cumulative and are additional to any right, power or remedy which it
may have under general law or otherwise.

	(b)
	The
Company may, in whole or in part, release, compound, compromise, waive or postpone, in its absolute discretion, any liability owed to it or right granted to is in this Agreement
by the Executive without in any way prejudicing or affecting its rights in respect of that or any other liability or right not so released, compounded, compromised, waived or postponed.

	(c)
	No
single or partial exercise or failure or delay in exercising any right, power or remedy by the Company shall constitute a waiver by it of, or impair or prelude any further exercise
of, that or any right, power or remedy arising under this Agreement or otherwise. 

	18.
	Collective Agreements

There
are no collective agreements which affect the terms and conditions of the Employment. 

	19.
	Third Parties

Unless
expressly provided in this Agreement, no term of this Agreement is enforceable pursuant to the Contracts (Rights of Third Parties) Act 1999 by any person who is not party to it. 

	20.
	Data Protection

The
Executive consents to the holding and processing by the Company or any Group Company of personal data (including where appropriate, sensitive personal data) relating to the Executive for the
purposes of personnel or pensions administration, employee management or compliance with any laws or regulations applicable to the Company, any Group Company or its or their business. 

	21.
	Governing law and jurisdiction

	21.1
	This
Agreement shall be governed by and construed in accordance with English law.

	21.2
	Each
of the parties irrevocably submits for all purposes in connection with this Agreement to the exclusive jurisdiction of the courts of England. 

16

 

This Agreement has been signed on the date appearing at the head of page 1.   

	Executed as a Deed	 	 	)	 
	(but not delivered until the date	 	 	)	 
	appearing at the head of page 1 by	 	 	)	 
	
Combined Distribution (Holdings)	
 	

 	
)	

 
	Limited acting by	 	 	)	 
	

 	
 	

Director
	
Executed as a Deed	
 	

 	
)	

 
	by Richard Andrew Steele	 	 	)	/s/ Richard Andrew Steele
	in the presence of:	 	 	)	 

Signature
of witness: /s/ Phyliss Allen 

Name: Phyliss Allen 

Address: 18 Grebe Close, Brookvale Village, Erdington Birmingham, B23 7RW 

Occupation Secretary 

17

QuickLinks

Exhibit 10.14

Service Agreement

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Exhibit 10.16    
  

        As
of April 1, 2002 

Mr. Michael
Rowe

3100 Walnut Avenue

Manhattan Beach, CA 90266 

Dear
Mr. Rowe: 

This
letter confirms the terms of your employment by Activision Publishing, Inc.("Employer"). 

	1.
	Term

        The
term of your employment under this agreement shall commence on April 1, 2002 and expire on March 31, 2005, unless earlier terminated as provided below. 

	2.
	Salary

        (a)  In
full consideration for all rights and services provided by you under this agreement, you shall receive an annual base salary of $285,000 during the first year of the
term, an annual base salary of
$305,000 during the second year of the term and an annual base salary of $325,000 during the third year of the term. 

        (b)  Base
salary payments shall be made in accordance with Employer's then prevailing payroll policy. Each base salary referred to in Paragraph 2(a) shall constitute
your minimum base salary during the applicable period, and your base salary may be increased above the minimum at any time if Employer's Board of Directors (or the Compensation Committee of such Board
of Directors), in its sole and absolute discretion, elects to do so. In the event of an increase in your base salary beyond the applicable minimum base salary for a particular period, such increased
base salary shall then constitute your minimum base salary for all subsequent periods under this agreement, but only to the extent such increased base salary is in excess of the minimum base salary
referred to in Paragraph 2(a) for the corresponding period. 

        (c)  Notwithstanding
anything to the contrary set forth above but subject to the right of termination granted to you pursuant to Paragraph 10(b), Employer shall not be
required to actually use your services, and payment of your base salary during the applicable period of your employment under this agreement will discharge Employer's obligations to you hereunder.
Such payment, however, will not discharge your obligations to Employer hereunder. 

        (d)  In
addition to your base salary, you shall be eligible to receive an annual performance based bonus targeted at sixty percent (60%) of your annual base salary, in
compliance with Employer's standard bonus plan which is established on a yearly basis by Employer's senior management and Board of Directors (or the Compensation Committee of such Board of Directors)
and is based on a number of factors that may include, without limitation, the achievement of corporate earning and operating margin goals. 

        (e)  You
also are being granted, under Employer's existing or modified Board-approved stock option plan, a non-qualified stock option ("NQSO") to purchase 80,000
shares of the company's common stock. Such option is in addition to the stock options of Employer previously granted to you. The option will be issued on the commencement date of your contract. The
option to purchase 80,000 shares referred to above will vest ratably over four years, with one fourth of the amount granted vesting at the end of each year. The option will have an exercise price that
will be the market low of such common stock in effect at the time of the grant. You also shall be eligible to receive annual stock options, under Employer's existing or modified stock option plan, if
Employer's Board of Directors (or 

1

 

the Compensation Committee of such Board of Directors), in its sole and absolute discretion, determines that the grant to you of additional options is appropriate. 

	3.
	Title

        You
are being employed under this agreement in the position of Executive Vice President, Global Human Resources. 

	4.
	Duties

        You
shall personally and diligently perform, on a full-time and exclusive basis, such services as Employer or any of its divisions may reasonably require, provided that such
services are consistent with your position with Employer. You shall observe all reasonable rules and regulations adopted by Employer in connection with the operation of its business and carry out all
instructions of Employer. You will at all times perform all of the duties and obligations required by you under this agreement in a loyal and conscientious manner and to the best of your ability and
experience. 

	5.
	Expenses

        To
the extent you incur necessary and reasonable business expenses in the course of your employment, you shall be reimbursed for such expenses, subject to Employer's then current
policies regarding reimbursement of such business expenses. 

	6.
	Other Benefits

        You
shall be entitled to those benefits which are standard for persons in similar positions with Employer, including coverage under Employer's health, life insurance and disability
plans, and eligibility to participate in Employer's 401(k) plan. Nothing paid to you under any such plans and arrangements (nor any bonus or stock options which Employer's Board of Directors (or the
Compensation Committee of such Board of Directors), in its sole and absolute discretion, shall provide to you) shall be deemed in lieu, or paid on account, of your base salary. You expressly agree and
acknowledge that after expiration or early termination of the term of your employment under this agreement, you are entitled to no additional benefits not expressly set forth in this agreement, except
as specifically provided under the benefit plans referred to above and those benefit plans in which you subsequently may become a participant, and subject in each case to the terms and conditions of
each such plan. Notwithstanding anything to the contrary set forth above, you shall be entitled to receive those benefits provided by COBRA upon the expiration or early termination of the term of your
employment under this agreement. 

	7.
	Vacation and Paid Holidays

        (a)  You
will be entitled to paid vacation days in accordance with the normal vacation policies of Employer in effect from time to time, provided that in no event shall you
be entitled to less than fifteen (15) days of paid vacation per year. 

        (b)  You
shall be entitled to all paid holidays given by Employer to its full-time employees. 

	8.
	Protection of Employer's Interests

        (a)  During
the term of your employment by Employer, you will not compete in any manner, whether directly or indirectly, as a principal, employee, agent or owner, with
Employer, or any affiliate of Employer, except that the foregoing will not prevent you from holding at any time less than five percent (5%) of the outstanding capital stock of any company whose stock
is publicly traded. 

        (b)  All
rights worldwide with respect to any and all intellectual or other property of any nature produced, created or suggested by you during the term of your employment or
resulting from your services which (i) relate in any manner at the time of conception or reduction to practice to the actual or demonstrably anticipated business of Employer, (ii) result
from or are suggested by any task 

2

 

assigned to you or any work performed by you on behalf of Employer, or (iii) are based on any property owned or idea conceived by Employer, shall be deemed to be a work made for hire and shall
be the sole and exclusive property of Employer. You agree to execute, acknowledge and deliver to Employer, at Employer's request, such further documents, including copyright and patent assignments, as
Employer finds appropriate to evidence Employer's rights in such property. 

        (c)  Any
confidential and/or proprietary information of Employer or any affiliate of Employer shall not be used by you or disclosed or made available by you to any person
except as required in the course of your employment, and upon expiration or earlier termination of the term of your employment, you shall return to Employer all such information which exists in
written or other physical form (and all copies thereof) under your control. Without limiting the generality of the foregoing, you acknowledge signing and delivering to Employer the Activision Employee
Proprietary Information Agreement and you agree that all terms and conditions contained in such agreement, and all of your obligations and commitments provided for in such agreement, shall be deemed,
and hereby are, incorporated into this agreement as if set forth in full herein. The provisions of the immediately preceding four sentences of this paragraph shall survive the expiration or earlier
termination of this agreement. 

	9.
	Services Unique

        You
recognize that the services being performed by you under this agreement are of a special, unique, unusual, extraordinary and intellectual character giving them a peculiar value, the
loss of which cannot be reasonably or adequately compensated for in damages, and in the event of a breach of this agreement by you (particularly, but without limitation, with respect to the provisions
hereof relating to the exclusivity of your services and the provisions of paragraph 8 of this agreement), Employer shall, in addition to all other remedies available to it, be entitled to
equitable relief by way of injunction and any other legal or equitable remedies. 

	10.
	Termination

        (a)  At
any time during the term of this Agreement, Employer may terminate your employment under this Agreement for your (i) willful, reckless or gross misconduct,
(ii) negligent performance of job responsibilities, (iii) conviction of a felony or crime involving dishonesty or moral turpitude, or (iv) commitment of any of the terminable
offenses listed in Section 7.2 of Employer's Employee Handbook 

        (b)  You
may terminate your employment under this agreement (i) upon Employer's material breach under this agreement, (ii) upon any relocation of the place at
which you primarily are performing your services to Employer to a location which is outside the metropolitan Los Angeles area, or (iii) if Employer elects to not actually use your services and
continues to pay your base salary pursuant to Paragraph 2(c) above for a period of one hundred twenty (120) consecutive days. 

        (c)  In
the event of the termination of your employment under this agreement pursuant to Paragraph 10(a) or 10(b), all obligations of Employer to you under this
agreement shall immediately terminate. 

        (d)  In
the event of your death during the term of this agreement, this agreement shall terminate and Employer only shall be obligated to pay your estate or legal
representative the salary provided for above to the extent earned by your prior to such event. Except as otherwise prohibited by applicable law (including, without limitation, pursuant to the Family
Medical Leave Act), in the event you are unable to perform the services required of you under this agreement as a result of any disability, and such disability continues for a period of 60 or more
consecutive days or an aggregate of 90 or more days during any 12-month period during the term of this agreement, then Employer shall have the right, at its option, to terminate your
employment under this agreement. Unless and until so terminated, during any period of disability during which you are unable to perform the services 

3

 

required of you under this agreement, your base salary shall be payable to the extent of, and subject to, Employer's policies and practices then in effect with regard to sick leave and disability
benefits. 

	11.
	Use of Employee's Name

        Employer
shall have the right, but not the obligation, to use your name or likeness for any publicity or advertising purpose. 

	12.
	Assignment

        Employer
may assign this agreement or all or any part of its rights under this agreement to any entity which succeeds to all or substantially all of Employer's assets (whether by merger,
acquisition, consolidation, reorganization or otherwise) or which Employer may own substantially, and this agreement shall inure to the benefit of such assignee. 

	13.
	No Conflict with Prior Agreements

        You
represent to Employer that neither your commencement of employment under this agreement nor the performance of your duties under this agreement conflicts or will conflict with any
contractual commitment on your part to any third party, nor does it or will it violate or interfere with any rights of any third party. 

	14.
	Post-Termination Obligations

        After
the expiration or earlier termination of your employment under this agreement for any reason whatsoever, you shall not, either alone or jointly, with or on behalf of others,
directly or indirectly, whether as principal, partner, agent, shareholder, director, employee, consultant or otherwise, at any time during a period of one (1) year following such expiration or
termination, offer employment to, or solicit the employment or engagement of, or otherwise entice away from the employment of Employer or any affiliated entity, either for your own account or for any
other person firm or company, any person who was employed by Employer or any such affiliated entity during the term of your employment, whether or not such person would commit any breach of his or her
contract of employment by reason of his or her leaving the service of Employer or any affiliated entity. 

	15.
	Entire Agreement; Amendments; Waiver, Etc.

        (a)  This
agreement supersedes all prior or contemporaneous agreements and statements, whether written or oral, concerning the terms of your employment with Employer, and no
amendment or modification of this agreement shall be binding against Employer unless set forth in a writing signed by Employer and delivered to you. Without limiting the generality of the foregoing,
you acknowledge that
this agreement supersedes your prior written agreement with Employer dated July 12, 1999, and such agreement is hereby declared terminated and of no further force and effect. 

        (b)  You
have given no indication, representation or commitment of any nature to any broker, finder, agent or other third party to the effect that any fees or commissions of
any nature are, or under any circumstances might be, payable by Employer or any affiliate of Employer in connection with your employment under this agreement. 

        (c)  No
waiver by either party of any breach by the other party of any provision or condition of this agreement shall be deemed a waiver of any similar or dissimilar
provision or condition at the same or any prior or subsequent time. 

        (d)  Nothing
contained in this agreement shall be construed so as to require the commission of any act contrary to law and wherever there is any conflict between any
provision of this agreement and any present or future statute, law, ordinance or regulation, the latter shall prevail, but in such event the provision of this agreement affected shall be curtailed and
limited only to the extent necessary to bring it within legal requirements. 

4

 

        (e)  This
agreement does not constitute a commitment of Employer with regard to your employment, express or implied, other than to the extent expressly provided for herein.
Upon termination of this agreement, it is the contemplation of both parties that your employment with Employer shall cease, and that neither Employer nor you shall have any obligation to the other
with respect to continued employment. In the event that your employment continues for a period of time following the stated expiration date of this contract, unless and until agreed to in a new
subscribed written document, such employment or any continuation thereof is "at will," and may be terminated without obligation at any time by either party giving notice to the other. 

        (f)    This
agreement shall be governed by and construed in accordance with the laws of the State of California without regard to conflict of law principles. 

        (g)  In
accordance with the Immigration Reform and Control Act of 1986, employment under this agreement is conditioned upon satisfactory proof of your identity and legal
ability to work in the United States. 

        (h)  To
the extent permitted by law, you will keep the terms of this agreement confidential, and you will not disclose any information concerning this agreement to anyone
other than your immediate family
and professional representatives (provided they also agree to keep the terms of this agreement confidential). 

	16.
	Notices

        All
notices which either party is required or may desire to give the other shall be in writing and given either personally or by depositing the same in the United States mail addressed
to the party to be given notice as follows: 

	To Employer:	 	3100 Ocean Park Boulevard

Santa Monica, California 90405

Attention: Executive Vice President

and General Counsel
	

 	
 	

 
	To Employee:	 	3100 Walnut Avenue

Manhattan Beach, CA 90266

        Either
party may by written notice designate a different address for giving of notices. The date of mailing of any such notices shall be deemed to be the date on which such notice is
given. 

	17.
	Headings

        The
headings set forth herein are included solely for the purpose of identification and shall not be used for the purpose of construing the meaning of the provisions of this agreement. 

        If
the foregoing accurately reflects our mutual agreement, please sign where indicated. 

ACCEPTED AND AGREED TO:

	Employer	 	Employee
	

By:	
 	

/s/  RON DOORNINK      
 Ron Doornink
 President and Chief

Operating Officer	
 	

By:	
 	

/s/  MIKE ROWE      
 Michael Rowe
	

Date:	
 	

 	
 	

Date:	
 	

 
	 	 	
	 	 	 	

5

QuickLinks

Exhibit 10.16

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