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Exhibit 10.16  

 
  SEVERANCE AGREEMENT    
    

        THIS SEVERANCE AGREEMENT is made effective as of February 28, 2003, by and between  JAMDAT
MOBILE INC., a Delaware corporation (the "Company"),
and                                
("Senior Manager"). 

 
 

RECITAL    
    

        The Company desires to enter into an agreement with Senior Manager whereby severance benefits will be paid to Senior Manager on a change in control of the Company
and consequent actual or constructive termination of Senior Manager's employment. 

        NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants and conditions contained herein, the parties agree as follows: 

 
 

AGREEMENT    
    

        1.    Termination of Employment Due to a Change in Control.    Senior Manager shall be entitled to the benefits
provided herein upon the termination of Senior Manager's employment by the Company for any reason whatsoever, except for Cause (as defined below), or by Senior Manager for Good Reason (as defined
below) with the Company within (i) 120 days before a Change in Control (as defined below) or (ii) 360 days after a Change in Control (as defined below) (such a termination
of Senior Manager's employment is sometimes referred to herein as a "Qualifying Termination"). Senior Manager shall not be entitled to the benefits of
this Agreement if Senior Manager's employment terminates pursuant to normal retirement under a policy in effect prior to the Change in Control or by reason of his death or his total and permanent
disability. For the purposes of this Agreement, "total and permanent disability"
means a condition which prevents Senior Manager from performing to a significant degree the essential duties of his position and is expected to be for a period in excess of six (6) months or
results in death. A determination of total and permanent disability must be based on competent medical evidence. 

        2.    Severance Payment Upon Termination of Employment.    Upon the expiration of five (5) business days
following a Qualifying Termination, Senior Manager shall be entitled to: (a) be paid, in cash, in a lump sum, an amount equal to one times Senior Manager's current annual base salary; and
(b) payment by the Company of the cost of Senior Manager's continued coverage in the Company's health plan pursuant to the COBRA regulations for a twelve (12) month period, subject to
the provisions of Section 10 hereof. 

        3.    Change in Control.    For the purposes of this Agreement, a "Change in
Control" of the Company shall be deemed to have occurred upon the happening of any of the following events: 

        (a)    Merger or Consolidation.    If the shareholders of the Company approve a merger or consolidation of the Company
with any other corporation, other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of the surviving entity), in combination with the ownership of any trustee or other fiduciary holding securities under an
employee benefit plan of the Company, at least 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or
consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person acquires more than fifty percent (50%) of
the combined voting power of the Company's then outstanding securities. For purposes hereof, the term "Person" shall mean a
"person" as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), as such term is modified in Sections 13(d) and 14(d) of the Exchange Act, excluding the Company or any of its subsidiaries, a trustee or any fiduciary holding securities
under an employee benefit plan of the Company or any of its subsidiaries, an underwriter temporarily holding 

 

securities
pursuant to an offering of such securities or a corporation owned, directly or indirectly, by stockholders of the Company in substantially the same proportions as their ownership of the
Company; or 

        (b)    Liquidation or Sale.    If the shareholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets. 

The
foregoing notwithstanding, no Change in Control shall be deemed to have occurred if there is consummated any transaction or series of integrated transactions immediately following which, in the
judgment of the Board of Directors, the holders of the Company's common stock immediately prior to such transaction or series of transactions continue to have the same proportionate ownership in any
entity which owns all or substantially all of the assets of the Company immediately prior to such transaction or series of transactions. 

        4.    Effect on Employment Rights.    This Agreement is not part of any employment agreement between the Company and
Senior Manager. Nothing in this Agreement shall confer upon Senior Manager any right to continue in the employ of the Company or interfere with or restrict in any way the rights of the Company, which
are hereby expressly reserved, to terminate Senior Manager's employment at any time for any reason, with or without cause, except as otherwise provided in this Agreement. 

        5.    Termination for Cause.    Termination of Senior Manager's employment for "Cause" shall mean the termination of
Senior Manager upon his intentional and willful gross misconduct which is demonstrably and materially injurious to the Company taken as a whole and which was done, or omitted to be done, by Senior
Manager in bad faith and without any reasonable belief on the part of Senior Manager that Senior Manager's action or omission was in the best interest of the Company. Notwithstanding the foregoing,
Senior Manager shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to him a copy of a resolution duly adopted by the unanimous affirmative vote of
the entire membership of the Board of Directors of the Company at a meeting of the Board called and held for the purpose of making a determination whether Cause for termination exists (after
reasonable notice to Senior Manager and an opportunity for Senior Manager to be heard before the Board), finding in the good faith opinion of the Board that Senior Manager was guilty of misconduct as
set forth above in this Section and specifying the particulars thereof in detail. If the Company gives Senior Manager notice of termination which states that the basis for terminating his employment
is Cause, Senior Manager shall have fifteen (15) days after receipt of such notice to remedy the facts and circumstances which provided Cause. The Board of Directors (or any duly authorized
Committee thereof) shall make a good faith reasonable determination immediately after such fifteen-day period whether such facts and circumstances have been remedied and shall communicate
such determination in writing to Senior Manager. If the Board determines that adequate remedy has not occurred, then the initial notice of termination shall remain in effect. 

        6.    Good Reason.    Within (i) 120 days before a Change in Control or (ii) 360 days
after a Change in Control, Senior Manager may terminate employment with the Company at any time if Senior Manager has made a good faith reasonable determination that Good Reason exists for such
termination. For the purposes of this Agreement, "Good Reason" shall mean any of the following actions, if taken without the express written consent of
Senior Manager: 

        (a)   Any
material change by the Company in Senior Manager's title, functions, duties or responsibilities that would cause Senior Manager's position with the Company to become
of less responsibility or scope from the position and attributes that applied to Senior Manager immediately prior to the Change in Control; 

        (b)   Any
material reduction in Senior Manager's base salary; 

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        (c)   Any
material failure by the Company to comply with any of the provisions of this Agreement (or of any employment agreement between the parties); 

        (d)   The
Company's requiring Senior Manager to be based at any office or location more than fifty (50) miles from the office at which Senior Manager is based on the
date immediately preceding the Change in Control, except for travel reasonably required in the performance of Senior Manager's responsibilities and commensurate with the amount of travel required of
Senior Manager prior to the Change in Control; or 

        (e)   Any
failure by the Company to obtain the express assumption of this Agreement by any successor or assign of the Company. 

Senior
Manager must provide the Company at least fifteen (15) days prior written notice of such termination based upon Good Reason and stating the factor(s) constituting Good Reason. The
Company shall have ten (10) days after receipt of such notice to remedy the facts and circumstances which provided Good Reason. Senior Manager shall make a good faith reasonable determination
immediately after such ten-day period whether such facts and circumstances have been remedied and shall communicate such determination in writing to the Company. If Senior Manager
determines that adequate remedy has not occurred, then the initial notice of termination shall remain in effect. Any determination by Senior Manager pursuant to this  Section 6 that Good Reason
exists for Senior Manager's termination of employment and that adequate remedy has not occurred shall be presumed
correct and shall govern unless the party contesting the determination shows by a clear preponderance of the evidence that it was not a good faith reasonable determination. 

        7.    Severance Payment Made Notwithstanding Dispute.    Notwithstanding any dispute concerning whether Cause or Good
Reason exists for termination of employment or whether adequate remedy has occurred, the Company shall immediately pay to Senior Manager any amounts otherwise due under this Agreement. Senior Manager
may be required to repay such amounts to the Company if any such dispute is finally determined adversely to Senior Manager. 

        8.    Notice of Termination.    Except as otherwise provided in this Agreement, any termination of Senior Manager's
employment hereunder shall be communicated by written notice to the other party hereto which shall indicate the specific termination provisions in this Agreement relied upon and which sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of
Senior Manager's employment under the provision so indicated as well as the date of such termination (which shall be no earlier than fifteen (15) days after such notice is received by the other
party). 

        9.    Limitation Under Section 280G.    It is the intent of the parties that no amount payable pursuant to this
Agreement shall cause any payment or transfer by the Company to or for the benefit of Senior Manager, whether paid or payable (or transferred or transferable) pursuant to this Agreement or otherwise
(a "Payment"), to be subject to taxation under Section 4999 of the Internal Revenue Code of 1986, as amended (the
"Code"), and as an "excess parachute payment" within the meaning of Section 280G of the Code. If the last independent auditors selected by the
Board of Directors prior to the Change in Control (the "Auditors") determine that any such item constitutes an "excess parachute payment," and that the
limitation of this Section 9 would result in a larger after-tax benefit to Senior Manager, then Senior Manager may (but is not
required to) irrevocably elect to relinquish or not exercise any payments or benefits available to him under any plan, contract or program before the payment or enjoyment thereof in order to limit
such payments or benefits for the purpose of eliminating any "excess parachute payment" or causing Senior Manager to become eligible to receive all or any portion of the cash payment that would be
made pursuant to this Agreement if Senior Manager were entitled to no other "parachute payments" as defined in Section 280G(b)(2) of the Code. For purposes of these calculations, (a) all
amounts received in connection with Senior Manager's employment by the Company or to be received by Senior Manager in connection with a change in the ownership or effective control of the Company, or
a change in the ownership of a 

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substantial
portion of the assets of the Company (including, but not limited to, payments or benefits that Senior Manager becomes entitled to in connection with a Change in Control, as defined above)
shall be treated as "parachute payments" within the meaning of Section 280G(b)(2) of the Code, except to the extent that such amounts are relinquished pursuant to the preceding sentence or
identified in the written opinion of independent tax counsel selected by the Auditors and approved by Senior Manager (which approval shall not be unreasonably withheld) as not constituting parachute
payments or excess parachute payments (in whole or in part), or as representing reasonable compensation for personal services to be rendered or actually rendered before the Change in Control in excess
of the base amount, within the meaning of Section 280G(b)(4)(B) of the Code, and (b) the value of any noncash benefit or any deferred cash payment included in the calculations shall be
determined by the Auditors in accordance with the principles of Section 280G(d)(3) and (4) of the Code. The Company shall bear all fees and expenses of the Auditors and all fees and
expenses of obtaining the opinion of the independent tax counsel referred to in the preceding sentence. 

        10.    Damages.    Senior Manager shall not be required to mitigate damages with respect to the amount of any payment
provided under this Agreement by seeking other employment or otherwise, nor shall the amount of any payment provided under this Agreement be reduced by retirement benefits, deferred compensation or
any compensation earned by Senior Manager as a result of employment by any other employer, except, that, the payment of Senior Manager's COBRA payments under this Agreement shall be terminated in the
event Senior Manager obtains similar benefits through a new employer within the twelve (12) month period immediately after termination. 

        11.    Equity Acceleration.    Notwithstanding anything to the contrary in the JAMDAT Mobile Inc. Restricted
Stock Agreements, into which Senior Manager entered into on [Dates], as such agreements have been amended from time to time (collectively, as amended, the
"Restricted Stock Agreements"), and upon a Qualifying Termination which occurs 120 days prior to a Change in Control, notwithstanding the Vesting
Schedule as of the date of such termination, the Repurchase Right shall lapse with respect to one hundred percent (100%) of all Unvested Shares as of such date and Senior Manager shall acquire a fully
vested interest in the Purchased Stock. All terms used in this Section 11 and not defined in this Agreement shall have the meaning given such
terms in the Restricted Stock Agreement. 

        12.    Successor to the Company.    The Company shall require any successor or assign (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, by agreement in form and substance satisfactory to Senior Manager, expressly,
absolutely and unconditionally to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession or
assignment had taken place. As used in this Agreement, the "Company" shall mean the Company as defined above and any successor or assign to its business and/or assets as aforesaid which executes and
delivers the agreement provided for in this Section 12 or which otherwise becomes bound by all the terms and provisions of this Agreement by
operation of law. 

        13.    Senior Manager's Successors and Heirs.    This Agreement shall inure to the benefit of and be enforceable by
Senior Manager's personal and legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If Senior Manager should die while any amounts are still payable
to Senior Manager hereunder, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to Senior Manager's devisee, legatee, or other designee
or, if there be no such designee, to Senior Manager's estate. 

        14.    Claims Review Policy/Arbitration.    Senior Manager must comply with the Severance Agreement Claims Review
Policy, attached hereto as Exhibit A, before Senior Manager may commence any legal action pursuant to the arbitration provisions below. Any
dispute arising out of or relating to this Agreement that still exists after Senior Manager has complied with the Severance Agreement 

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Claims
Review Policy shall be finally settled by binding arbitration under the then existing Commercial Arbitration Rules of the American Arbitration Association in arbitration proceedings conducted
in Los Angeles, California. The arbitrator shall have no power or authority in making their award to modify, enlarge or add to the terms and provisions of this Agreement. Judgment upon the award of
the arbitrator shall be binding upon the parties and may be entered in any court having jurisdiction. Costs and reasonable attorneys' fees shall be paid as the arbitrator's award shall specify, not to
exceed in the aggregate one percent (1%) of the net worth of the other party, in addition to any other relief to which he, she or it may be entitled. 

        15.    Notices.    All notices and other communications provided for in this Agreement shall be given or made by
telex, telecopy, telegraph, cable, certified or registered mail (return receipt requested), or delivered personally or by a nationally recognized overnight courier service to the address set forth
below (or such other address as may be designated by any method permitted by this Section 15). All such communications shall be deemed to have
been duly given when transmitted by telex or telecopier (if a copy thereof is also mailed to the recipient, certified or registered mail, postage prepaid), or personally delivered or delivered by
cable, telegraph, or nationally recognized overnight courier service, or five (5) days after mailing, postage prepaid, to the address set forth below. 

If
to the Company: 

JAMDAT
Mobile Inc.

3415 S. Sepulveda Blvd., Suite 500

Los Angeles, California 90034

Facsimile: (310) 636-3103

Attn: Craig S. Gatarz, Esq.

Chief Operating Officer and General Counsel 

with
a copy to: 

Sheppard,
Mullin, Richter & Hampton LLP

800 Anacapa Street

Santa Barbara, California 93101

Facsimile: (805) 568-1955

Attn: C. Thomas Hopkins, Esq. 

If
to Senior Manager: 

To
the address set forth below Senior Manager's

name on the attached signature page. 

        16.    Amendment; Waiver.    This Agreement may not be amended or modified except in a writing signed by the parties.
No waiver of any provisions of this Agreement shall be deemed to, or shall, operate as a waiver of any other provision, nor shall any waiver constitute a continuing waiver. Except as expressly
provided in this Agreement, no waiver shall be binding unless executed in writing by the party making the waiver. 

        17.    Governing Law.    Subject to the Employee Retirement Income Security Act of 1974, as amended, this Agreement
shall be governed and construed under the internal laws of the State of California. 

        18.    No Transfer by Senior Manager.    Senior Manager's rights and obligations under this Agreement shall not be
transferable by assignment or otherwise, nor shall Senior Manager's rights be subject to encumbrance or subject to claims of the Company's creditors. Nothing in this Agreement shall prevent the
consolidation of the Company with, or its merger into, any other corporation, or the sale by the Company of all or substantially all of its properties or assets. This Agreement shall inure to the
benefit of, and be binding upon and be enforceable by, any successor surviving or resulting 

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corporation,
or other entity to which such assets shall be transferred. This Agreement shall not be terminated by the voluntary or involuntary dissolution of the Company. 

        19.    Entire Understanding.    This Agreement embodies the entire understanding of the parties with respect to the
subject matter hereof, and there are no promises, terms, conditions, or obligations, oral or written, express or implied, other than those contained herein, with respect to such subject matter. 

        20.    Partial Invalidity.    If for any reason any provision of this Agreement shall be determined to be inoperative
or invalid, the validity and effect of the other provisions hereof shall not be affected thereby. 

        21.    No Strict Construction.    The language used in this Agreement shall be deemed to be the language chosen by the
parties hereto to express their mutual intent, and no rule of strict construction will be applied against any person. 

        22.    Counterparts.    This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 

        [Signatures
on following page] 

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        IN
WITNESS WHEREOF, the parties have executed this Agreement effective as the day and year first set forth above. 

	

 	
 	
THE COMPANY:
	

 	
 	
JAMDAT MOBILE INC.,

a Delaware corporation
	

 	
 	

By:	

 Name:

Title:

	

 	
SENIOR MANAGER:
	

 	

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EXHIBIT A    
    
    SEVERANCE AGREEMENT
  CLAIMS REVIEW POLICY    
    

        1.    Presentation Of Claim.    Any Senior Manager or duly authorized
representative (such Senior Manager or duly authorized representative being referred to below as a "Claimant") may deliver to the Severance Benefit
Committee (the "Committee") a written claim for a determination of the benefits receivable by such Claimant pursuant to the Senior Manager's Severance
Agreement (the "Agreement"). If such claim relates to the contents of a notice received by the Claimant, the claim must be made within 30 days
after such notice was received by the Claimant. The claim must state with particularity the benefit determination desired by the Claimant. 

        2.    Notification Of Decision.    The Committee shall consider a
Claimant's claim within a reasonable time, but not later than 30 days after receipt of the claim by the Committee, unless the Committee determines that special circumstances require an
extension of time for processing the claim. If the Committee determines that an extension of time for processing is required, written notice of the extension shall be furnished to the Claimant prior
to the termination of the initial 30-day period. In no event shall such extension exceed a period of 30 days from the end of such initial period. The extension notice shall indicate
the special circumstances requiring an extension of time and the date by which the Committee expects to render the benefit determination. Once the benefit determination is made in accordance with the
foregoing, the Committee shall notify the Claimant in writing: 

            i.  that
the Claimant's requested benefit determination has been made, and that the claim has been allowed in full; or 

           ii.  that
the Committee has reached a conclusion adverse, in whole or in part, to the Claimant's requested benefit determination. The Committee's notice of adverse benefit
determination must be written in a manner calculated to be understood by the Claimant, and it must contain: 

          iii.  the
specific reason(s) for the adverse benefit determination; 

        (1)   reference
to the specific provisions of the Agreement upon which such adverse benefit determination was based; 

        (2)   a
description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is
necessary; and 

        (3)   description
of the claim review procedures set forth in the "Review Of A Denied Claim" section below and the time limits applicable to such procedures, including a
statement regarding the Claimant's right, if any, to bring a civil action under Section 502(a) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA") following an adverse benefit determination on review. 

        3.    Review Of A Denied Claim.    Within 30 days after
receiving a notice from the Committee of an adverse benefit determination, a Claimant may file with the Board of Directors of JAMDAT Mobile Inc. (the
"Board") a written request for a review of such adverse determination. Thereafter, but not later than 30 days after the review procedure began,
the Claimant: 

            i.  may
submit written comments, documents, records and other information relating to the claim for benefits; 

           ii.  shall
be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the Claimant's claim
for benefits; and/or 

8

 

          iii.  may
request a hearing, which the Board, in its discretion, may grant. 

The
Board shall take into account all comments, documents, records and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or
considered in the initial benefit determination. 

        4.    Decision On Review.    The Board shall render its decision on
review within a reasonable time, and not later than 30 days after the receipt of the Claimant's review request, unless a hearing is held or other special circumstances require additional time,
in which case the Board's decision must be rendered within 60 days after the receipt of the Claimant's review request. If the Board determines that an extension of time for processing is
required, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial 60-day period. In no event shall such extension exceed a period of
60 days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Board expects to render the
benefit determination on review. The Board's decision must be written in a manner calculated to be understood by the Claimant, and it must contain: 

            i.  specific
reasons for the decision; 

           ii.  reference
to the specific Agreement provisions upon which the decision was based; 

          iii.  a
statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other
information relevant to the Claimant's claim for benefits; 

          iv.  a
statement regarding the Claimant's right, if any, to bring an action under ERISA Section 502(a) concerning an adverse benefit determination; and 

           v.  such
other matters as the Board deems relevant. 

For
purposes of this policy, a document, record or other information shall be considered "relevant" to a Claimant's claim if such document, record or other information was relied upon in making the
benefit determination; was submitted, considered or generated in the course of making the benefit determination, without regard to whether such document, record, or other information was relied upon
in making the benefit determination; or demonstrates compliance with the administrative processes and safeguards required under ERISA in making the benefit determination. 

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SEVERANCE AGREEMENT

RECITAL

AGREEMENT

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Exhibit 10.17  

TERM APPOINTMENT AGREEMENT  

 
 

APPOINTMENT AGREEMENT    
    

        THIS APPOINTMENT AGREEMENT, dated as of April 1, 2004 (this
"Agreement"), is between JAMDAT Mobile (Japan) Inc., a Japanese KK having its principal place of business at Residence Bains Douches Minami
Aoyama 801 Minato-Ku Tokyo, 107-0062 Japan (the "Company"), and Toshi Iwata (the
"Executive"). 

        For
good and valuable consideration, the Company and the Executive agree as follows: 

        1.     The
Company hereby appoints the Executive, and the Executive hereby accepts appointment, as the Representative Director of JAMDAT Mobile (Japan) Inc., a subsidiary
of JAMDAT Mobile Inc., a Delaware corporation (the "Parent"). The Executive will render his services exclusively to the Company and will not undertake any other appointment, employment or
business without the prior written consent of the Parent. The Executive will perform his duties with the utmost good faith and integrity. 

        2.     This
Agreement is hereby concluded for a fixed term of one (1) year effective as of the date hereof. This Agreement may be renewed for two (2) additional
periods of one (1) year each, at the sole discretion of the Board (as hereinafter defined), by transmitting a written notice of renewal to the Executive at least thirty (30) days prior
to the expiry date. 

        3.     The
Executive shall report to the Board of Directors of the Company (the "Board"), or as otherwise directed by the Board. 

        4.     (a)
The Executive shall perform the duties and exercise the powers and functions in relation to the business of the Company which may from time to time be vested in or
assigned to him by the Board. Without limiting the foregoing, the Executive shall be responsible for the overall operation and management of the Company and its business. The Executive shall formulate
and implement the business strategies of the Company in consultation with the Parent, including without limitation, product development, distribution, sales, marketing and operational strategies. The
Executive shall be responsible for all aspects of managing the Company's business, including without limitation, the management of its employees, vendors, partners, customers and consultants. The
Executive will protect the intellectual property of the Company by guarding against unnecessary and dangerous disclosure, especially to competitors. The Executive shall perform such other services
related to the operation and management of the Company and its business as the Board of Directors shall direct. 

        (b)   The
Executive shall work at the Company's principal place of business or at such other location as the Board may in its sole discretion approve in writing. The Executive
shall devote his full business time and effort to the business and efforts of the Company. 

        5.     (a)
The Company and the Executive agree that the Company may terminate the Executive for Cause (as defined below) at any time and without prior notice. For purposes of
this Agreement, "Cause" means any of the following acts or omissions on the part of the Executive: any act of dishonesty, any disclosure of confidential
information, negligence or misconduct, failure to perform duties to the standards required by the Company or neglect of his duties under this Agreement as determined in the Company's sole and absolute
discretion, any illegal act, drug, alcohol or other substance abuse, or any act or omission which has an adverse effect on Company's reputation or business operations. 

        (b)   The
Company may terminate this Agreement at any time without "cause". In the event of termination without "cause", the Executive will be paid, in accordance with the
Company's regular pay schedule, severance pay equal to six (6) months' base salary (as of the date of termination under this Agreement), but no severance pay shall be paid or payable to the
Executive in the event the Company terminates this Agreement for any reason on or prior to October 1, 2004. 

 

        (c)   The
Company and the Executive also agree that the Executive may resign at any time on two weeks prior written notice and no severance pay of any kind will be due to the
Executive from the Company in such event. 

        6.     (a)
The Company shall pay the Executive an annual base salary of ¥18,000,000, payable in substantially equal amounts every month or at such other regular
intervals as the Company may establish from time to time. Executive will also be eligible to participate in the Company's benefits program. The Executive shall not be entitled to overtime
compensation. At the sole discretion of the Parent, Executive may be entitled to participate in the Parent's equity incentive plan, on such terms as the Parent and Executive shall mutually agree. Any
such participation in the equity incentive plan shall be evidenced by separate written agreement between the Parent and the Executive, and nothing contained herein shall be construed as a promise or
obligation on the part of the Parent to allow any such participation on the part of the Executive. 

        (b)   The
Company will make legally required deductions and other deductions from the annual base salary described in the preceding paragraph for income tax, social security
and other taxes and benefit program contributions. 

        (c)   The
Company and Parent shall jointly and severally indemnify and hold harmless the Executive from any claims, demands, causes of action, damages, costs, expenses,
penalties, losses and liabilities ("Claims") incurred or to be incurred by the Executive under the guaranty entered into by the Executive in his personal capacity guaranteeing the obligations of the
Company under the real property lease governing the Company's principal place of business; provided that the Company and the Parent shall not be liable
under this indemnification for any Claims that are the result of the gross negligence or willful misconduct of the Executive; and provided further, that the Company and Parent may participate in the
defense of a Claim on an equal basis at each of its own expense. 

        7.     The
Executive shall be entitled to paid vacation in accordance with the Rules of Employment established for JAMDAT Mobile (Japan) Inc. (which shall accrue ratably
during each calendar year). Accrued, untaken vacation days from one calendar year shall carry over to the next succeeding calendar year, but vacation accruals may not at any time exceed twice the
Executive's annual vacation entitlement. Once this maximum is reached, all further vacation accruals will cease until such time as vacation is taken and Executive's outstanding vacation accrual falls
below the maximum allowable accrual. The Executive shall not be permitted to take vacation within the first 120 days of this Agreement. 

        8.     The
parties hereto acknowledge and agree that, during the term of this Agreement and in the course of the discharge of his duties, the Executive shall have access to and
become acquainted with confidential information concerning the operation of the Company including, without limitation, operating procedures and trade secrets of the Company, and financial, personnel,
sales, planning and other information that is owned by the Company and regularly used in the operation of the Company's business and that this information constitutes trade secrets of the Company. The
Executive agrees that he shall not disclose any such confidential information, directly or indirectly, to any other person or use such confidential information in any way, either during the term of
this Agreement or at any other time thereafter, except as is required in the course of his duties pursuant to this Agreement. On or prior to the Executive's execution and delivery of this Agreement,
the Executive shall execute and deliver a proprietary information and inventions agreement substantially in the form attached hereto as Exhibit A. 

        9.     During
the term of this Agreement, the Executive shall devote his entire efforts to the business and affairs of the Company and do his utmost to promote the Company's
interests. 

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        10.   On
a worldwide basis, the Executive shall neither, during the period of his appointment (except in the proper performance of his duties), nor at any time during the
period of twelve (12) months after the termination thereof: 

        (a)   directly
or indirectly, whether on the Executive's own account or as agent, partner, director, consultant or employee of any other person, whether paid or unpaid,
support, participate, be engaged or be interested or concerned in the same or similar line of business as that held by him in the Company and, in the case of termination of appointment, during the
twelve (12) months immediately preceding the termination of the employment with the Company; or 

        (b)   assist
anyone else to hire any employee of the Company and/or its affiliates or seek to persuade any employee of the Company and/or its affiliates to discontinue
employment or to become employed in any business which is directly or indirectly in competition with the business of the Company and/or its affiliates nor seek to persuade any independent contractor
to discontinue his or her relationship with the Company and/or its affiliates. 

        11.   Any
notices to be given hereunder by either party to the other shall be in writing and may be transmitted by personal delivery or by mail, registered or certified,
postage prepaid with return receipt requested. Mailed notices shall be addressed to the Company at the address set forth on its signature page, with a copy to the Parent at JAMDAT Mobile Inc.,
3415 S. Sepulveda Boulevard, Suite 700, Los Angeles, CA 90034 USA, Attention: Chief Operating Officer, and to the Executive at the address set forth on his signature page, but each party hereto may
change that address by written notice in accordance with this Section 11. Notices delivered personally shall be deemed communicated as of the date of actual receipt; mailed notices shall be
deemed communicated as of the date of mailing. 

        12.   (a)
All disputes ("Claims") between the parties arising from or relating to this Agreement or the Company's appointment
of the Executive, whether or not pursuant to this Agreement shall be resolved by binding arbitration as provided in this Section 12. The parties
each waive their right to commence an action in any court to resolve any Claim. Neither party shall initiate or prosecute any lawsuit in any way related to any Claim. However, this  Section 12 shall
not apply to any Claim: (a) for workers compensation or unemployment benefits; or (b) by the Company for
injunctive and/or other equitable relief. With respect to matters referred to in clause (b) above, the Company may seek and obtain injunctive relief in court, and then proceed with arbitration
under this Agreement. 

        (b)   A
Claim must be processed in the manner set forth below, otherwise the Claim shall be void and deemed waived even if there is an applicable statute of limitations which
would allow more time to pursue the Claim. 

        1.     The
Claim must initially be raised in writing by the Executive to the Board. The Company shall respond to the Claim within 30 days after the Claim is presented. If
the Company fails to respond, it will be deemed a denial of the Executive's Claim. 

        2.     If
the Executive is not satisfied with the Company's decision, the Executive may present the Claim for resolution by final and binding arbitration. If the Executive
desires to proceed to arbitration, the Executive must give written notice to the Board of the Executive's intention to arbitrate within 60 days from either the mailing of the Company's final
decision or the expiration of the foregoing 30-day period. 

        3.     If
the Company desires to initiate arbitration, it must give written notice to the Executive within 60 days after either its mailing to the Executive of notice of
its final decision or the expiration of the foregoing 30-day period. 

        (c)   The
arbitration shall be conducted in accordance with the then-current Commercial Arbitration Rules of The Japan Commercial Arbitration Association before a
single arbitrator. The arbitration shall be conducted in the English language and shall take place in Tokyo, Japan. 

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        (d)   Each
party shall have the right to take the deposition of three individuals and any expert witness designated by the other party. Each party also shall have the right to
make requests for production of documents to any party. Additional discovery may be had only where the arbitrator so orders, upon a showing of substantial need. All issues related to discovery will be
resolved by the arbitrator. The parties waive the provisions of any law that modifies, expands or adds to the discovery and deposition rules set forth in this Section 12(d). 

        (e)   The
arbitrator will have no authority to: (i) adopt new policies or procedures for the Company; (ii) modify this Agreement or any existing policies,
procedures, wages or benefits of the Company; or (iii) hear or decide any matter that was not processed in accordance with this Agreement. The arbitrator shall have exclusive authority to
resolve any Claim, including, but not limited to, a dispute relating to the interpretation, applicability, enforceability or formation of this Agreement, or any contention that all or any part of this
Agreement is void or voidable. The arbitrator will have the authority to award
any form of remedy or damages that would be available in a court; provided that the Executive shall not seek and the arbitrator shall have no authority
to award punitive or exemplary damages. 

        (f)    The
Company and the Executive each shall pay one-half of all reasonable and necessary fees of the arbitrator. 

        (g)   To
the extent permitted by law, the Executive agrees not to initiate or prosecute against the Company any administrative action (other than an administrative charge of
discrimination) in any way related to any Claim covered by this Agreement. 

        (h)   The
arbitration will be conducted in private, and will not be open to the public or the media. The testimony and other evidence presented, and the results of the
arbitration, unless otherwise agreed by both parties, are confidential and shall not be made public or reported by either the Company or the Executive. 

        (i)    The
arbitrator shall render a written decision and award (the "Award"), which shall set forth the facts and reasons that
support the Award. The Award shall be final and binding on the Company and the Executive. 

        13.   If
any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees,
costs and necessary disbursements in addition to any other relief to which that party may be entitled. This provision shall be construed as applicable to the entire contract. 

        14.   This
Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the appointment of the Executive by the
Company and contains all of the covenants and agreements between the parties with respect to that appointment in any manner whatsoever. Each party hereto acknowledges that no representation,
inducement, promise or agreement, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or
promise not contained in this Agreement shall be valid or binding on either party. Any modification of this Agreement will be effective only if it is in writing and signed by the party to be charged. 

        15.   The
failure of either party to insist on strict compliance with any of the terms, covenants or conditions of this Agreement by the other party shall not be deemed a
waiver of that term, covenant or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or
any other times. 

        16.   If
any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless
continue in full force without being impaired or invalidated in any way. 

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        17.   This
Agreement shall be governed by and construed in accordance with the laws of Japan. 

        18.   If
the Executive dies prior to the expiration of the term of his appointment, any sums that may be due him from the Company under this Agreement as of the date of death
shall be paid to the Executive's executor's, administrators, heirs, personal representatives, successors and assigns. 

        19.   This
Agreement may be executed in any number of identical counterparts, by facsimile or otherwise, each of which taken together shall constitute one and the same
instrument. 

        20.   The
provisions of Sections 6(c), 8, 11 through 17, inclusive, and  20 shall survive the termination of this
Agreement and the termination of the Executive's appointment by the Company. 

[Signature
page follows.] 

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        IN WITNESS WHEREOF, the parties here to have executed this Agreement as of the date first set forth above. 

	 	 	 	COMPANY:
	

 	

 	
 	

JAMDAT Mobile (Japan) Inc.

a Japanese corporation
	

 	

 	
 	

By:	

/s/  CRAIG GATARZ      
 Name: Craig Gatarz

Title: Director
	

 	

 	
 	
Address for Notices:
	

 	

 	
 	

JAMDAT Mobile (Japan) Inc.

4-1-17 Toranomon

Minato-ku, Tokyo

Japan

Facsimile:  
	

 	

 	
 	
EXECUTIVE:
	

 	

 	
 	

TOSHI IWATA
	

 	

 	
 	

/s/  TOSHI IWATA      
 Signature
	

 	

 	
 	
Address for Notices:
	

 	

 	
 	

	

 	

 	
 	

	

 	

 	
 	

Facsimile: 
	

As to the obligations undertaken in

Section 6(c) of the Agreement:	
 	

 	

 
	

PARENT:	
 	

 	

 
	

JAMDAT Mobile Inc.	
 	

 	

 
	

By:	

/s/  CRAIG GATARZ      
 Craig Gatarz

Chief Operating Officer	
 	

 	

 

6

TERM APPOINTMENT AGREEMENT  

 
 

EXHIBIT A    
    

See
attached 

QuickLinks

APPOINTMENT AGREEMENT

EXHIBIT A

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