Document:

Exhibit 10.13

 

ACTIVISION,
INC.

 

2007
INCENTIVE PLAN

 

NOTICE
OF RESTRICTED SHARE UNIT AWARD

 

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

 

·                  Your name:  [                                                                                                                           ]

 

·                  Total number of Restricted Share Units awarded:  [10,000]

 

·                  Date of Grant:  [                                                                                                                       ]

 

·                  Grant ID:  [                                                                                                                               ]

 

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

 

·                  this Notice of Restricted Share Unit Award;

 

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

 

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

 

·                  Schedule for Vesting: 
Except as otherwise provided under the Award Terms, the Restricted Share
Units awarded to you will vest as follows, provided you continuously serve as a
member of the Board of Directors through each such date:

 

Schedule for Vesting

 

	
  Date of Vesting

  	
   

  	
  No. of Restricted

  Share Units Vesting at

  Vesting Date

  	
   

  	
  Cumulative No. of

  Restricted Share Units

  Vested at Vesting Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [3
  months after Date of Grant]

  	
   

  	
  [1,250]

  	
   

  	
  [1,250]

  	
   

  
	
  [6
  months after Date of Grant]

  	
   

  	
  [1,250]

  	
   

  	
  [2,500]

  	
   

  
	
  [9
  months after Date of Grant]

  	
   

  	
  [1,250]

  	
   

  	
  [3,750]

  	
   

  
	
  [First anniversary of Date of
  Grant]

  	
   

  	
  [1,250]

  	
   

  	
  [5,000]

  	
   

  
	
  [15
  months after Date of Grant]

  	
   

  	
  [1,250]

  	
   

  	
  [6,250]

  	
   

  
	
  [18
  months after Date of Grant]

  	
   

  	
  [1,250]

  	
   

  	
  [7,500]

  	
   

  
	
  [21
  months after Date of Grant]

  	
   

  	
  [1,250]

  	
   

  	
  [8,750]

  	
   

  
	
  [Second anniversary of Date of
  Grant]

  	
   

  	
  [1,250]

  	
   

  	
  [10,000]

  	
   

  

 

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

 

 

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

 

	
   

  	
  Activision, Inc.

  3100 Ocean Park Boulevard

  Santa Monica, CA 90405

  Attn: Stock Plan Administration

  

 

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

 

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

 

	
   

  	
  ACTIVISION, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
					

 

 

	
  ACCEPTED AND AGREED:

  
	
   

  
	
   

  
	
   

  	
   

  
	
  [Name of Grantee]

  
	
   

  
	
  Date:

  	
   

  	
   

  
	
   

  
				

 

2

 

EXHIBIT
A

 

ACTIVISION,
INC.

 

2007
INCENTIVE PLAN

 

RESTRICTED
SHARE UNIT AWARD TERMS

 

1.             Definitions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Disability” means “permanent and total disability”
as defined in section 22(e)(3) of the Code, as interpreted by the
Company (with such interpretation to be final, conclusive and binding for
purposes of these Award Terms).

 

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

 

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

 

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

 

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

 

“Restricted Share Units” means units subject to the Award, which
represent the conditional right to receive Common Shares in accordance with the
Grant Notice and these 

 

 

Award Terms, unless and until such units become vested
or are forfeited to the Company in accordance with the Grant Notice and these
Award Terms.

 

“Separation from Service” means separation from service within the
meaning of Section 409A of the Code.

 

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

 

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

 

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

 

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

 

3.             Termination
of Service.

 

(a)           Death
or Disability.  In the event that
Grantee incurs a Separation from Service due to death or Disability, the
Restricted Share Units shall immediately vest as of the date of Grantee’s death
or the first date of such Disability (as determined by the Committee), as the
case may be.

 

(b)           Change
of Control.  In the event that
Grantee incurs a Separation from Service pursuant to the terms of any business
combination or similar transaction involving the Company, the Restricted Share
Units shall immediately vest as of the date of such Separation from Service.

 

(c)           Other.  Unless the Committee determines otherwise, in
the event that Grantee incurs a Separation from Service for any reason not
addressed by Section 3(a) and 3(b) hereof, as of the date of
such Separation from Service any Restricted Share Units shall cease to vest and
shall immediately be forfeited to the Company without payment of consideration
by the Company.

 

4.             Tax Withholding. 
The Company shall have the right to require Grantee to satisfy any
Withholding Taxes resulting from the vesting of any Restricted Share Units, the
issuance or transfer of any Vested Shares or otherwise in connection with the
Award at the time such Withholding Taxes become due.  Grantee shall be entitled to satisfy any
Withholding Taxes contemplated by this Section 4:  (a) by delivery to the Company of a bank
check or certified check or wire transfer of immediately available funds; (b) with
the Company’s consent, through the delivery of irrevocable written
instructions, in a form acceptable to the Company, that the Company withhold
Vested Shares otherwise then deliverable having a value equal to the aggregate
amount of the Withholding Taxes (valued in the same manner used in computing
the 

 

A-2

 

amount of such Withholding Taxes); or (c) with
the Company’s consent, by any combination of (a) and (b) above.  Notwithstanding anything to the contrary
contained herein, (i) the Company or any of its subsidiaries or affiliates
shall have the right to withhold from Grantee’s compensation any Withholding
Taxes contemplated by this Section 4 and (ii) the Company shall have
no obligation to deliver any Vested Shares unless and until all Withholding
Taxes contemplated by this Section 4 have been satisfied.

 

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

 

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

 

7.             Receipt and Delivery.  As soon as administratively practicable (and,
in any event, within 30 days) after (a) with respect to the portion of the
Restricted Share Units that vest on or before the first anniversary of the Date
of Grant either in accordance with the “Schedule for Vesting” set forth on the
Grant Notice or due to a Separation from Service pursuant to Section 3
hereof, the earlier of (i) the first anniversary of the Date of Grant and (ii) the
date of Grantee’s Separation from Service and (b) with respect to the
portion of the Restricted Share Units that vest after the first anniversary of
the Date of Grant either in accordance with the “Schedule for Vesting” set
forth on the Grant Notice or due to a Separation from Service pursuant to Section 3
hereof, the earlier of (i) the second anniversary of the Date of Grant and
(ii) the date of Grantee’s Separation from Service, the Company shall (A) effect
the issuance or transfer of the Vested Shares, (B) cause the issuance or
transfer of such Vested Shares to be evidenced on the books and records of the
Company, and (C) cause such Vested Shares to be delivered to a
Company-Sponsored Equity Account in the name of the person entitled to such
Vested Shares (or, with the Company’s consent, such other brokerage account as
may be requested by such person); provided, however, that, in the
event such Vested Shares are subject to a legend as set forth in Section 13
hereof, the Company shall instead cause a certificate evidencing such Vested
Shares and bearing such legend to be delivered to the person entitled thereto.

 

8.             Committee
Discretion.  Except as may otherwise
be provided in the Plan, the Committee shall have sole discretion to (a) interpret
any provision of the Plan, the Grant Notice and these Award Terms, (b) make
any determinations necessary or advisable for the administration of the Plan
and the Award, and (c) waive any conditions or rights of the Company under
the Award, the Grant Notice or these Award Terms.  Without intending to limit the 

 

A-3

 

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

 

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

 

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

 

A-4

 

register the issuance or transfer of Restricted Share
Units or Vested Shares or resale of Restricted Share Units or Vested Shares
under the Securities Act of 1933, as amended, or any comparable federal
securities law or applicable state securities law.

 

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

 

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

 

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

 

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

 

14.           No Right to Continued Service.  Nothing contained in the Grant Notice or
these Award Terms shall be construed to confer upon Grantee any right to
continued service on the Board or derogate from any right of the Company’s
stockholders to remove Grantee from the Board at any time, with or without
cause.

 

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

 

A-5

 

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

 

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

 

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

 

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

 

20.           Conflict
with Plan.  In the event of any
conflict between the terms of the Grant Notice or these Award Terms and the
terms of the Plan, the terms of the Plan shall control.

 

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

 

A-6ACTIVISION,
INC.

 

2007 INCENTIVE PLAN

 

NOTICE OF RESTRICTED SHARE UNIT
AWARD

 

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

 

·                  Your name:  [                                                                                                                                                 ]

 

·                  Total number of Restricted Share Units awarded:  [5,000]

 

·                  Date of Grant:  [                                                                                                                                             ]

 

·                  Grant ID:  [                                                                                                                                                    ]

 

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

 

·                  this Notice of Restricted Share Unit Award;

 

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

 

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

 

·                  Schedule for Vesting: 
Except as otherwise provided under the Award Terms, the Restricted Share
Units awarded to you will vest as follows, provided you continuously serve as a
member of the Board of Directors through each such date:

 

Schedule for Vesting

 

	
  Date of Vesting

  	
   

  	
  No. of Restricted

  Share Units Vesting at

  Vesting Date

  	
   

  	
  Cumulative No. of

  Restricted Share Units

  Vested at Vesting Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [3
  months after Date of Grant]

  	
   

  	
  [1,250]

  	
   

  	
  [1,250]

  	
   

  
	
  [6
  months after Date of Grant]

  	
   

  	
  [1,250]

  	
   

  	
  [2,500]

  	
   

  
	
  [9
  months after Date of Grant]

  	
   

  	
  [1,250]

  	
   

  	
  [3,750]

  	
   

  
	
  [First anniversary of Date of
  Grant]

  	
   

  	
  [1,250]

  	
   

  	
  [5,000]

  	
   

  

 

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

 

 

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

 

Activision, Inc.

3100 Ocean Park Boulevard

Santa Monica, CA  90405

Attn:  Stock Plan Administration

 

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

 

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

 

	
   

  	
  ACTIVISION, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  Date:

  	
   

  
				

 

 

ACCEPTED AND AGREED:

 

 

	
   

  	
   

  
	
  [Name of Grantee]

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
			

 

2

 

EXHIBIT
A

ACTIVISION, INC.

 

2007 INCENTIVE PLAN

 

RESTRICTED SHARE UNIT AWARD TERMS

 

1.                                       Definitions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Disability” means “permanent and total disability”
as defined in section 22(e)(3) of the Code, as interpreted by the
Company (with such interpretation to be final, conclusive and binding for
purposes of these Award Terms).

 

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

 

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

 

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

 

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

 

“Restricted Share Units” means units subject to the Award, which
represent the conditional right to receive Common Shares in accordance with the
Grant Notice and these 

 

 

Award Terms, unless and until such units become vested
or are forfeited to the Company in accordance with the Grant Notice and these
Award Terms.

 

“Separation from Service” means separation from service within the
meaning of Section 409A of the Code.

 

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

 

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

 

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

 

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

 

3.                                       Termination of Service.

 

(a)                                  Death or Disability. 
In the event that Grantee incurs a Separation from Service due to death
or Disability, the Restricted Share Units shall immediately vest as of the date
of Grantee’s death or the first date of
such Disability (as determined by the Committee), as the case may be.

 

(b)                                 Change of Control. 
In the event that Grantee incurs a Separation from Service pursuant to
the terms of any business combination or similar transaction involving the
Company, the Restricted Share Units shall immediately vest as of the date of
such Separation from Service.

 

(c)                                  Other.  Unless the
Committee determines otherwise, in the event that Grantee incurs a Separation
from Service for any reason not addressed by Section 3(a) and 3(b) hereof,
as of the date of such Separation from Service any Restricted Share Units shall
cease to vest and shall immediately be forfeited to the Company without payment
of consideration by the Company.

 

4.                                       Tax Withholding. 
The Company shall have the right to require Grantee to satisfy any
Withholding Taxes resulting from the vesting of any Restricted Share Units, the
issuance or transfer of any Vested Shares or otherwise in connection with the
Award at the time such Withholding Taxes become due.  Grantee shall be entitled to satisfy any
Withholding Taxes contemplated by this Section 4:  (a) by delivery to the Company of a bank
check or certified check or wire transfer of immediately available funds; (b) with
the Company’s consent, through the delivery of irrevocable written
instructions, in a form acceptable to the Company, that the Company withhold
Vested Shares otherwise then deliverable having a value equal to the aggregate
amount of the Withholding Taxes (valued in the same manner used in computing
the 

 

A-2

 

amount of such Withholding Taxes); or (c) with
the Company’s consent, by any combination of (a) and (b) above.  Notwithstanding anything to the contrary
contained herein, (i) the Company or any of its subsidiaries or affiliates
shall have the right to withhold from Grantee’s compensation any Withholding
Taxes contemplated by this Section 4 and (ii) the Company shall have
no obligation to deliver any Vested Shares unless and until all Withholding
Taxes contemplated by this Section 4 have been satisfied.

 

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

 

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

 

7.                                       Receipt and Delivery.  As
soon as administratively practicable (and, in any event, within 30 days) after
the earlier of (i) the first anniversary of the Date of Grant and (ii) the
date of Grantee’s Separation from Service, the Company shall (A) effect
the issuance or transfer of the Vested Shares, (B) cause the issuance or
transfer of such Vested Shares to be evidenced on the books and records of the
Company, and (C) cause such Vested Shares to be delivered to a
Company-Sponsored Equity Account in the name of the person entitled to such
Vested Shares (or, with the Company’s consent, such other brokerage account as
may be requested by such person); provided, however, that, in the
event such Vested Shares are subject to a legend as set forth in Section 13
hereof, the Company shall instead cause a certificate evidencing such Vested
Shares and bearing such legend to be delivered to the person entitled thereto.

 

8.                                       Committee Discretion.  Except
as may otherwise be provided in the Plan, the Committee shall have sole
discretion to (a) interpret any provision of the Plan, the Grant Notice
and these Award Terms, (b) make any determinations necessary or advisable
for the administration of the Plan and the Award, and (c) waive any
conditions or rights of the Company under the Award, the Grant Notice or these
Award Terms.  Without intending to limit
the generality or effect of the foregoing, any decision or determination to be
made by the Committee pursuant to these Award Terms, including whether to grant
or withhold any consent, shall be made by the Committee in its sole and
absolute discretion, subject only to the terms of the Plan.  Subject to the terms of the Plan, the
Committee may amend the terms of the Award prospectively or retroactively;
however, no such amendment may materially and adversely affect the rights of
Grantee taken as a whole without Grantee’s consent.  Without intending to limit the generality or
effect of the foregoing, the Committee may amend the terms of the Award (i) in
recognition of 

 

A-3

 

unusual or nonrecurring events (including, without
limitation, events described in Section 9 hereof) affecting the Company or
any of its subsidiaries or affiliates or the financial statements of the
Company or any of its subsidiaries or affiliates, (ii) in response to
changes in applicable laws, regulations or accounting principles and
interpretations thereof, or (iii) to prevent the Award from becoming
subject to any adverse consequences under Section 409A of the Code.

 

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

 

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

 

11.                                 Transferability. 
Except as otherwise permitted under the Plan or this Section 11,
the Restricted Share Units shall not be transferable by Grantee other than by
will or the laws of descent and distribution. 
With the Company’s consent, Grantee may transfer Restricted Share 

 

A-4

 

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

 

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

 

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

 

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

 

14.                                 No Right to Continued Service. 
Nothing contained in the Grant Notice or these Award Terms shall be
construed to confer upon Grantee any right to continued service on the Board or
derogate from any right of the Company’s stockholders to remove Grantee from the
Board at any time, with or without cause.

 

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

 

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

 

17.                                 Governing Law. 
To the extent that federal law does not otherwise control, the validity,
interpretation, performance and enforcement of the Grant Notice and these Award

 

A-5

 

Terms shall be governed by the laws of the State of Delaware,
without giving effect to principles of conflicts of laws thereof.

 

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

 

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

 

20.                                 Conflict with Plan. 
In the event of any conflict between the terms of the Grant Notice or
these Award Terms and the terms of the Plan, the terms of the Plan shall
control.

 

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

 

A-6

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