Document:

Exhibit 10.9

 

ACTIVISION,
INC.

 

2007
INCENTIVE PLAN

 

NOTICE OF STOCK OPTION AWARD

 

You
have been awarded an Option to purchase Shares of Activision, Inc. (the “Company”), as follows:

 

·                  Your name:  [                                                                                                                                                         ]

 

·                  Total number of Shares purchasable upon exercise of the Option awarded:  [                                                     ]

 

·                  Exercise Price:  US$[                ]
per Share

 

·                  Date of Grant:  [                                                                                                                                                     ]

 

·                  Expiration Date:  [                                                                                                                                                  ]

 

·                  Grant ID:  [                                                                                                                                                             ]

 

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

 

·                  this Notice of Stock Option Award;

 

·                  the Stock Option Award Terms attached hereto as Exhibit A
(the “Award Terms”); and

 

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

 

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

 

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

 

Schedule for Vesting

 

	
   

   

  Date of
  Vesting

  	
   

  	
  No. of
  Shares

  Vesting at Vesting

  Date

  	
   

  	
  Cumulative
  No. of

  Shares Vested at

  Vesting Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  First
  anniversary of Date of Grant

  	
   

  	
  [                                ]

  	
   

  	
  [                                      ]

  	
   

  
	
  Second
  anniversary of Date of Grant

  	
   

  	
  [                                ]

  	
   

  	
  [                                      ]

  	
   

  
	
  Third
  anniversary of Date of Grant

  	
   

  	
  [                                ]

  	
   

  	
  [                                      ]

  	
   

  
	
  [Fourth
  anniversary of Date of Grant]

  	
   

  	
  [                                ]

  	
   

  	
  [                                      ]

  	
   

  
	
  [Fifth
  anniversary of Date of Grant]

  	
   

  	
  [                                ]

  	
   

  	
  [                                      ]

  	
   

  

 

 

·                  The Option is not intended to be an “incentive
stock option,” as such term is defined in Section 422 of the Code.

 

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

 

·                  Please
return the signed Notice of Stock Option 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 Stock Option 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 Holder]

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
			

 

2

 

EXHIBIT A

 

ACTIVISION, INC.

 

2007 INCENTIVE PLAN

 

STOCK OPTION 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 Stock Option Award Terms.

 

“Cause” (i) shall have the meaning given to
such term in any employment agreement or offer letter between the Holder and
the Company or any of its subsidiaries or affiliates in effect from time to
time or (ii) if the Holder is not party to any agreement or offer letter
with the Company or any of its subsidiaries or affiliates or any such agreement
or offer letter does not contain a definition of “cause,” shall mean the Holder’s
(A) willful, reckless or gross misconduct or fraud, (B) grossly
negligent performance of job responsibilities, (C) indictment on charges
related to, conviction of, or pleading no contest to, a felony or crime
involving dishonesty or moral turpitude, or (D) breach of any proprietary
information, confidentiality, “work for hire,” non-solicitation or similar
agreement between the Holder and the Company or any of its subsidiaries or
affiliates.

 

“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 8
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” (A) shall have the meaning given to
such term in, or otherwise be determined in accordance with, any employment
agreement or offer letter between the Holder and the Company or any of its
subsidiaries or affiliates in effect from time to time or (B) if the
Holder is not party to any agreement or offer letter with the Company or any of
its subsidiaries or affiliates or any such agreement or offer letter does not
contain a definition of “disability” or otherwise provide a method for
determining whether the Holder is disabled, shall have the meaning ascribed
thereto under the Company’s long-term disability in effect from time to time,
as interpreted under such plan (with such interpretation to be final,
conclusive and binding for purposes of these Award Terms).

 

 

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

 

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

 

“Exercise Price” means the Exercise Price set forth on the Grant
Notice.

 

“Expiration Date” means the Expiration Date
set forth on the Grant Notice.

 

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

 

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

 

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

 

“Option” means the Stock Option to purchase
Common Shares awarded to the Holder on the terms and conditions described in
the Grant Notice and these Award Terms.

 

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

 

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

 

(i)            if the Holder has
exercised any portion of the Option during such Look-back Period and sold any
of the Shares acquired on exercise thereafter, an amount equal to the product
of (A) the sales price per Share sold minus the Exercise Price times (B) the
number of Shares as to which the Option was exercised and which were sold at
such sales price; plus

 

(ii)           if the Holder has
exercised any portion of the Option during such Look-back Period and not sold
any of the Shares acquired on exercise thereafter, an amount equal to the
product of (A) the greatest of the following: (1) the Market Value
per Share of Common Shares on the date of exercise, (2) the arithmetic
average of the per share closing sales prices of Common Shares as reported on
NASDAQ for the 30 trading day period ending on the trading day immediately
preceding the date of the Company’s written notice of its exercise of its
rights under Section 11 hereof, or (3) the arithmetic average of the
per share closing sales prices of Common Shares as reported on NASDAQ for the
30 trading day period ending on the trading day immediately preceding the date
of 

 

A-2

 

computation, minus the Exercise Price, times (B) the
number of Shares as to which the Option was exercised and which were not sold.

 

“Shares” means the Common Shares
purchasable upon exercise of the Option.

 

“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.             Expiration.  The Option
shall expire on the Expiration Date and, after such expiration, shall no longer
be exercisable.

 

3.             Vesting and Exercise.

 

(a)           Vesting
Schedule.  Except as otherwise set
forth in these Award Terms, the Option shall vest, and thereupon become
exercisable, in accordance with the “Schedule for Vesting” set forth on the
Grant Notice.

 

(b)           Exercisable
Only by Holder.  Except as otherwise
permitted under the Plan or Section 10 hereof, the Option may be exercised
during the Holder’s lifetime only by the Holder or, in the event of the Holder’s
legal incapacity to do so, by the Holder’s guardian or legal representative
acting on behalf of the Holder in a fiduciary capacity under state law and/or
court supervision.

 

(c)           Procedure
for Exercise.  The Option may be
exercised by the Holder as to all or any of the Shares as to which the Option
has vested (i) by following the procedures for exercise established by the
Equity Account Administrator and posted on the Equity Account Administrator’s
website from time to time or (ii) with the Company’s consent, by giving
the Company written notice of exercise, in such form as may be prescribed by
the Company from time to time, specifying the number of Shares to be purchased.

 

(d)           Payment
of Exercise Price.  To be valid, any
exercise of the Option must be accompanied by full payment of the aggregate
Exercise Price of the Shares being purchased. 
Such payment shall be made (i) by bank check or certified check or
wire transfer of immediately available funds, (ii) if securities of the
Company of the same class as the Shares are then traded or quoted on a national
securities exchange, the Nasdaq Stock Market, Inc. or a national quotation
system sponsored by the National Association of Securities Dealers, Inc.
and with the Company’s consent, through the delivery of irrevocable written
instructions, in form acceptable to the Company, to the Equity Account
Administrator (or, with the Company’s consent, such other brokerage firm as may
be requested by the person exercising the Option) to sell some or all of the
Shares being purchased upon such exercise and to thereafter deliver promptly to
the Company from the proceeds of such sale an amount in cash equal to the
aggregate Exercise Price of the Shares being purchased, or (iii) with the
Company’s consent, any combination of (i) or (ii) above.

 

(e)           No
Fractional Shares.  In no event may
the Option be exercised for a fraction of a Share.

 

A-3

 

(f)            No
Adjustment for Dividends or Other Rights. 
No adjustment shall be made for cash dividends or other rights for which
the record date is prior to the date as of which the issuance or transfer of
Shares to the person entitled thereto has been evidenced on the books and
records of the Company pursuant to clause (ii) of Section 3(g) hereof
following exercise of the Option.

 

(g)           Issuance
and Delivery of Shares.  As soon as
practicable (and, in any event, within 30 days) after the valid exercise of the
Option, the Company shall (i) effect the issuance or transfer of the
Shares purchased upon such exercise, (ii) cause the issuance or transfer
of such Shares to be evidenced on the books and records of the Company, and (iii) cause
such Shares to be delivered to a Company-Sponsored Equity Account in the name
of the person entitled to such 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 Shares are subject to a legend as set forth in Section 13
hereof, the Company shall instead cause a certificate evidencing such Shares
and bearing such legend to be delivered to the person entitled thereto.

 

(h)           Partial
Exercise.  If the Option shall have
been exercised with respect to less than all of the Shares purchasable upon
exercise of the Option, the Company shall make a notation in its books and
records to reflect the partial exercise of the Option and the number of Shares
that thereafter remain available for purchase upon exercise of the Option.

 

4.             Termination of Employment.

 

(a)           Cause.  In the event that the Holder’s employment is
terminated by the Company or any of its subsidiaries or affiliates for Cause,
as of the date of such termination of employment the Option shall (i) cease
to vest, if not then fully vested, (ii) no longer be exercisable, whether
or not vested, and (iii) be immediately cancelled.

 

(b)           Death
or Disability. Unless the Committee determines otherwise, in the event that
the Holder dies while employed by the Company or any of its subsidiaries or
affiliates or the Holder’s employment with the Company or any of its
subsidiaries or affiliates is terminated due to the Holder’s Disability, the
Option shall (i) cease to vest as of the date of the Holder’s death or the
first date of such Disability (as determined by the Committee), as the case may
be, and (ii) to the extent vested as of the date of the Holder’s death or
such first date of such Disability, as the case may be, remain exercisable in
accordance with these Award Terms until the earlier of (A) the first
anniversary of the date of the Holder’s death or such termination of
employment, as the case may be, and (B) the Expiration Date, after which the
Option shall no longer be exercisable and shall be cancelled.

 

(c)           Other.  Unless the Committee determines otherwise, in
the event that the Holder’s employment is terminated for any reason not
addressed by Section 4(a) or 4(b) hereof, the Option shall (i) cease
to vest as of the date of such termination of employment and (ii) to the
extent vested as of the date of such termination of employment, be exercisable
in accordance with these Award Terms until the earlier of (A) the 30th day
after the date of such termination of employment  and (B) the Expiration Date, after which the Option
shall no longer be exercisable and shall be cancelled.

 

5.             Tax Withholding.  The
Company shall have the right to require the Holder to satisfy any Withholding
Taxes resulting from the exercise (in whole or in part) of the Option, the 

 

A-4

 

issuance or transfer of any Shares upon exercise of
the Option or otherwise in connection with the Award at the time such withholding
Taxes become due. The Holder shall be entitled to satisfy any Withholding Taxes
contemplated by this Section 5:  (a) by
delivery to the Company of  a bank check
or certified check or wire transfer of immediately available funds; (b) if
securities of the Company of the same class as the Shares are then traded or
quoted on a national securities exchange, the Nasdaq Stock Market, Inc. or
a national quotation system sponsored by the National Association of Securities
Dealers, Inc. and with the Company’s consent, through the delivery of
irrevocable written instructions, in form acceptable to the Company, to the
Equity Account Administrator (or, with the Company’s consent, such other
brokerage firm as may be requested by the person exercising the Option) to sell
some or all of the Shares being purchased upon such exercise and to thereafter
deliver promptly to the Company from the proceeds of such sale an amount in
cash equal to the aggregate 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 the Holder’s compensation any Withholding
Taxes contemplated by this Section 5 and (ii) the Company shall have
no obligation to deliver any Shares upon exercise of the Option unless and
until all Withholding Taxes contemplated by this Section 5 have been
satisfied.

 

6.             Reservation
of Shares.  The Company shall at all
times reserve for issuance or delivery upon exercise of the Option such number
of Common Shares as shall be required for issuance or delivery upon exercise
thereof.

 

7.             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
the Holder taken as a whole without the Holder’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 8 hereof) affecting the Company or any of its
subsidiaries or affiliates or the financial statements of the Company or any of
its subsidiaries or affiliates, (ii) in response to changes in applicable
laws, regulations or accounting principles and interpretations thereof, or (iii) to
prevent the Award from becoming subject to Section 409A of the Code.

 

8.             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 the Holder 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 

 

A-5

 

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.

 

9.             Registration
and Listing.  Notwithstanding
anything to the contrary contained herein, the Option may not be exercised, and
the Option and Shares purchasable upon exercise of the Option may not be
purchased, 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 Shares 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, the Option or Shares with the SEC, any state securities commission
or any securities exchange, securities association, market system or quotation
system to effect such compliance.  The Holder
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 the Option or Shares, to issue or transfer the
Option or 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 resale of the Option or Shares under
the Securities Act of 1933, as amended, or any comparable federal securities
law or applicable state securities law.

 

10.           Transferability.  Except as otherwise permitted under the Plan
or this Section 10, the Option shall not be transferable by the Holder
other than by will or the laws of descent and distribution.  Subject to the terms of the Plan, with the
Company’s consent, the Holder may transfer all or part of the Option 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 the Holder will remain bound by the
terms and conditions of the Plan, the Grant Notice and these Award Terms.

 

11.           Employment Violation.  The terms of this Section 11 shall apply
to the Option if the Holder is or becomes subject to an employment agreement
with the Company or any of its subsidiaries or affiliates.  In the event of an Employment Violation, the
Company shall have the right to require (i) the termination and
cancellation of the Option, whether vested or unvested, and (ii) payment
by the Holder to the Company of the Recapture Amount with respect to such
Employment Violation; provided, however, that, in lieu of payment
by the Holder to the Company of the Recapture Amount, the Holder, in his or her
discretion, may tender to the Company the Shares acquired upon exercise of the
Option during the Look-back Period with respect to such Employment Violation
and the Holder shall not be entitled to receive any consideration from the
Company in exchange therefor.  Any such
termination of the Option and payment of the Recapture Amount, as the case may
be, shall be in addition to, and not in lieu of, 

 

A-6

 

any other right or remedy available to the Company
arising out of or in connection with such Employment Violation, including,
without limitation, the right to terminate the Holder’s employment if not
already terminated and to seek injunctive relief and additional monetary
damages.

 

12.           Section 409A.  Payments contemplated with respect to the
Award are intended to be exempt from Section 409A of the Code, and all
provisions of the Plan, the Grant Notice and these Award Terms shall be
construed and interpreted in a manner consistent with the requirements for
avoiding taxes or penalties under Section 409A of the Code.  Notwithstanding the foregoing, if any
provision of the Plan, the Grant Notice or these Award Terms would, in the
reasonable, good faith judgment of the Company, result or likely result in the
imposition on the Holder 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 the Holder,
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.           Legend.  The Company may, if determined by it based on
the advice of counsel to be appropriate, cause any certificate evidencing
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 Employment. 
Nothing contained in the Grant Notice or these Award Terms shall be
construed to confer upon the Holder any right to be continued in the employ of
the Company or any of its subsidiaries or affiliates or derogate from any right
of the Company or any of its subsidiaries or affiliates to retire, request the
resignation of, or discharge the Holder at any time, with or without Cause.

 

15.           No
Rights as Stockholder.  No holder of
the Option 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 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 the Holder and, to the
extent applicable, the Holder’s permitted assigns under Section 3(b) 

 

A-7

 

hereof and the Holder’s estate or beneficiary(ies) as
determined by will or the laws of descent and distribution.

 

19.           Notices.  Any notice or other document which the Holder
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
the Holder may designate in writing from time to time; and (b) if to the
Holder, at the address shown in any employment agreement or offer letter
between the Holder and the Company or any of its subsidiaries or affiliates in
effect from time to time or such other address as the Holder by notice to the
Company may designate in writing from time to time.  Notices shall be effective upon receipt.

 

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

 

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

 

A-8Exhibit 10.10

ACTIVISION, INC.

 

2007 INCENTIVE PLAN

 

NOTICE
OF STOCK OPTION AWARD

 

You have been awarded an Option to purchase Shares of Activision, Inc.
(the “Company”), as follows:

 

·                  Your name:  [                                                                                                                               ]

 

·                  Total number of Shares purchasable upon exercise of the Option
awarded:  [10,000][20,000]

 

·                  Exercise Price:  US $[                ]
per Share

 

·                  Date of Grant:  [                                                                                                                               ]

 

·                  Expiration Date:  [                                                                                                                                   ]

 

·                  Grant ID:  [                                                                                                                               ]

 

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

 

·                  this Notice of Stock Option Award;

 

·                  the Stock Option 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 Option awarded
to you will vest and become exercisable as follows, provided you continuously
serve as a member of the Board through each such date:

 

Schedule
for Vesting

 

	
  Date of Vesting

  	
   

  	
  No. of Shares Vesting 

  at Vesting Date

  	
   

  	
  Cumulative No. of Shares 

  Vested at Vesting Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [3 months after Date of Grant]

  	
   

  	
  [2,500

  	
  ]

  	
  [2,500

  	
  ]

  
	
  [6 months after Date of Grant]

  	
   

  	
  [2,500

  	
  ]

  	
  [5,000

  	
  ]

  
	
  [9 months after Date of Grant]

  	
   

  	
  [2,500

  	
  ]

  	
  [7,500

  	
  ]

  
	
  [First anniversary of Date of
  Grant]

  	
   

  	
  [2,500

  	
  ]

  	
  [10,000

  	
  ]

  
	
  [15 months after Date of Grant]

  	
   

  	
  [2,500

  	
  ]

  	
  [12,500

  	
  ]

  
	
  [18 months after Date of Grant]

  	
   

  	
  [2,500

  	
  ]

  	
  [15,000

  	
  ]

  
	
  [21 months after Date of Grant]

  	
   

  	
  [2,500

  	
  ]

  	
  [17,500

  	
  ]

  
	
  [Second anniversary of Date of
  Grant]

  	
   

  	
  [2,500

  	
  ]

  	
  [20,000

  	
  ]

  

 

 

·                  The Option is not intended to be an “incentive
stock option,” as such term is defined in Section 422 of the Code.

 

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

 

·                  Please
return the signed Notice of Stock Option 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 Stock Option 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 Holder]

  
	
   

  
	
  Date:

  	
   

  	
   

  
							

 

2

 

EXHIBIT A

 

ACTIVISION,
INC.

 

2007
INCENTIVE PLAN

 

STOCK
OPTION 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 Stock Option 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 8
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.

 

“Exercise Price” means the Exercise Price set forth on the Grant
Notice.

 

“Expiration Date” means the Expiration Date
set forth on the Grant Notice.

 

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

 

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

 

“Option” means the Stock Option to purchase Common
Shares awarded to the Holder on the terms and conditions described in the Grant
Notice and these Award Terms.

 

 

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

 

“Shares” means the Common Shares
purchasable upon exercise of the Option.

 

“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.             Expiration.  The Option shall expire on the Expiration
Date and, after such expiration, shall no longer be exercisable.

 

3.             Vesting
and Exercise.

 

(a)           Vesting
Schedule.  Except as otherwise set
forth in these Award Terms, the Option shall vest, and thereupon become
exercisable, in accordance with the “Schedule for Vesting” set forth on the
Grant Notice.

 

(b)           Exercisable
Only by Holder.  Except as otherwise
permitted under the Plan or Section 10 hereof, the Option may be exercised
during the Holder’s lifetime only by the Holder or, in the event of the Holder’s
legal incapacity to do so, by the Holder’s guardian or legal representative
acting on behalf of the Holder in a fiduciary capacity under state law and/or
court supervision.

 

(c)           Procedure
for Exercise.  The Option may be
exercised by the Holder as to all or any of the Shares as to which the Option
has vested (i) by following the procedures for exercise established by the
Equity Account Administrator and posted on the Equity Account Administrator’s
website from time to time or (ii) with the Company’s consent, by giving
the Company written notice of exercise, in such form as may be prescribed by
the Company from time to time, specifying the number of Shares to be purchased.

 

(d)           Payment
of Exercise Price.  To be valid, any
exercise of the Option must be accompanied by full payment of the aggregate
Exercise Price of the Shares being purchased. 
Such payment shall be made (i) by bank check or certified check or
wire transfer of immediately available funds, (ii) if securities of the
Company of the same class as the Shares are
then traded or quoted on a national securities exchange, the Nasdaq Stock
Market, Inc. or a national quotation system sponsored by the National
Association of Securities Dealers, Inc. and  with
the Company’s consent, through
the delivery of irrevocable written instructions, in form acceptable to the
Company, to the Equity Account Administrator (or, with the Company’s consent, such other brokerage firm as may be
requested by the person exercising the Option) to sell some or all of the
Shares being purchased upon such exercise and to thereafter deliver promptly to
the Company from the proceeds of such sale an amount in cash equal to the
aggregate Exercise Price of the Shares being purchased, or (iii) with the
Company’s consent,  any combination of (i) or (ii) above.

 

A-2

 

(e)           No
Fractional Shares.  In no event may
the Option be exercised for a fraction of a Share.

 

(f)            No
Adjustment for Dividends or Other Rights. 
No adjustment shall be made for cash dividends or other rights for which
the record date is prior to the date as of which the issuance or transfer of
Shares to the person entitled thereto has been evidenced on the books and
records of the Company pursuant to clause (ii) of Section 3(g) hereof
following exercise of the Option.

 

(g)           Issuance
and Delivery of Shares.  As soon as
practicable (and, in any event, within 30 days) after the valid exercise of the
Option, the Company shall (i) effect the issuance or transfer of the
Shares purchased upon such exercise, (ii) cause the issuance or transfer
of such Shares to be evidenced on the books and records of the Company, and (iii) cause
such Shares to be delivered to a Company-Sponsored Equity Account in the name
of the person entitled to such 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 Shares are subject to a legend as set forth in Section 12
hereof, the Company shall instead cause a certificate evidencing such Shares
and bearing such legend to be delivered to the person entitled thereto.

 

(h)           Partial
Exercise.  If the Option shall have
been exercised with respect to less than all of the Shares purchasable upon
exercise of the Option, the Company shall make a notation in its books and
records to reflect the partial exercise of the Option and the number of Shares
that thereafter remain available for purchase upon exercise of the Option.

 

4.             Termination
of Service.

 

(a)           Death
or Disability.  Unless the Committee
determines otherwise, in the event that the Holder dies during his term as a
member of the Board or the Holder ceases to serve as a member of the Board due
to the Holder’s Disability, the Option shall (i) immediately vest as of
the date of the Holder’s death or the
first date of such Disability (as determined by the Committee), as the
case may be, and (ii) remain exercisable in accordance with these Award
Terms until the earlier of (A) the first anniversary of the date of the
Holder’s death or cessation of service, as the case may be, and (B) the
Expiration Date, after which the Option shall no longer be exercisable and
shall be cancelled.

 

(b)           Change
of Control.  Unless the Committee
determines otherwise, in the event that the Holder ceases to serve as a member
of the Board pursuant to the terms of any business combination or similar
transaction involving the Company, the Option shall (i) immediately vest
as of the date on which such business combination or similar transaction is
consummated, and (ii) be exercisable in accordance with these Award Terms
until the earlier of (A) the first anniversary of the date of the Holder’s
cessation of service, and (B) the Expiration Date, after which the Option
shall no longer be exercisable and shall be cancelled.

 

(c)           Other.  Unless the Committee  determines
otherwise, in the event that the Holder ceases to serve as a member of the
Board for any reason not addressed by Section 4(a) or 4(b) hereof,
the Option shall (i) cease to vest as of the date of such termination of
service and (ii) to the extent vested as of the date of such termination
of service, be exercisable in accordance 

 

A-3

 

with these Award Terms
until the earlier of (A) the 30th day after the date of such
termination of service  and (B) the
Expiration Date, after which the Option shall no longer be exercisable and
shall be cancelled.

 

5.             Tax
Withholding.  The Company shall have
the right to require the Holder to satisfy any Withholding Taxes resulting from
the exercise (in whole or in part) of the Option, the issuance or transfer of
any Shares upon exercise of the Option or otherwise in connection with the
Award at the time such Withholding Taxes become due.  The Holder shall be entitled to satisfy any
Withholding Taxes contemplated by this Section 5:  (a) by delivery to the Company of  a bank check or certified check or wire
transfer of immediately available funds; (b) if securities of the Company
of the same class as the Shares are then traded or quoted on a national
securities exchange, the Nasdaq Stock Market, Inc. or a national quotation
system sponsored by the National Association of Securities Dealers, Inc.
and with the Company’s consent, through the delivery of irrevocable written
instructions, in form acceptable to the Company, to the Equity Account
Administrator (or, with the Company’s consent, such other brokerage firm as may
be requested by the person exercising the Option) to sell some or all of the
Shares being purchased upon such exercise and to thereafter deliver promptly to
the Company from the proceeds of such sale an amount in cash equal to the
aggregate 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 the Holder’s compensation any Withholding
Taxes contemplated by this Section 5 and (ii) the Company shall have
no obligation to deliver any Shares upon exercise of the Option unless and
until all Withholding Taxes contemplated by this Section 5 have been
satisfied.

 

6.             Reservation
of Shares.  The Company shall at all
times reserve for issuance or delivery upon exercise of the Option such number
of Common Shares  as shall be required for issuance
or delivery upon exercise thereof.

 

7.             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 the Holder taken as a whole without the Holder’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 8 hereof) affecting the
Company or any of its subsidiaries or affiliates or the financial statements of
the Company or any of its subsidiaries or affiliates, (ii) in response to
changes in applicable laws, regulations or accounting principles and
interpretations thereof, or (iii) to prevent the Award from becoming
subject to Section 409A of the Code.

 

A-4

 

8.             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 the Holder 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.

 

9.             Registration
and Listing.  Notwithstanding
anything to the contrary contained herein, the Option may not be exercised, and
the Option and Shares purchasable upon exercise of the Option may not be
purchased, 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
Shares 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, the Option or Shares with the SEC, any state securities
commission or any securities exchange, securities association, market system or
quotation system to effect such compliance. 
The Holder 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 the Option or Shares, to issue or transfer the
Option or 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 resale of the Option or Shares under
the Securities Act of 1933, as amended, or any comparable federal securities
law or applicable state securities law.

 

10.           Transferability.  Except as otherwise permitted under the Plan
or this Section 10, the Option shall not be transferable by the Holder
other than by will or the laws of descent and distribution.  Subject to the terms of the Plan, with the
Company’s consent, the Holder may transfer all or part of the Option 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 the Holder will remain bound
by the terms and conditions of the Plan, the Grant Notice and these Award
Terms.

 

A-5

 

11.           Section 409A.  Payments contemplated with respect to the
Award are intended to be exempt from Section 409A of the Code, and all
provisions of the Plan, the Grant Notice and these Award Terms shall be
construed and interpreted in a manner consistent with the requirements for
avoiding taxes or penalties under Section 409A of the Code.  Notwithstanding the foregoing, if any
provision of the Plan, the Grant Notice or these Award Terms would, in the
reasonable, good faith judgment of the Company, result or likely result in the
imposition on the Holder 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 the Holder,
in the manner that the Committee may reasonably and in good faith determine to
be necessary or advisable to avoid the imposition of such penalty tax.

 

12.           Legend.  The Company may, if determined by it based on
the advice of counsel to be appropriate, cause any certificate evidencing
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.”

 

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

 

14.           No
Rights as Stockholder.  No holder of
the Option 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.

 

15.           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.

 

16.           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.

 

17.           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 the Holder and, to the
extent applicable, the Holder’s permitted assigns under Section 3(b) hereof
and the Holder’s estate or beneficiary(ies) as determined by will or the laws
of descent and distribution.

 

A-6

 

18.           Notices.  Any notice or other document which the Holder
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
the Holder may designate in writing from time to time; and (b) if to the
Holder, at the address shown on the records of the Company or such other
address as the Holder by notice to the Company may designate in writing from
time to time.  Notices shall be effective
upon receipt.

 

19.           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.

 

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

 

A-7

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