Document:

Exhibit 10.1

  

   

  

   

  

  
    

    

    

    

    

    

    VOTING AND SUPPORT AGREEMENT

    

    

    dated as of

    

    

    May 22, 2019

    

    

    among

    

    

    ANTONIO LUIZ DA CUNHA SEABRA

    

    

    LUCIA HELENA RIOS SEABRA

    

    

    GUILHERME PEIRÃO LEAL

    

    

    PEDRO LUIZ BARREIROS PASSOS

    

    

    UTOPIA PARTICIPAÇÕES S.A.

    

    

    FELIPE PEDROSO LEAL

    

    

    RICARDO PEDROSO LEAL

    

    

    PASSOS PARTICIPAÇÕES S.A

    

    

    FUNDO DE INVESTIMENTO DE AÇÕES VEREDAS - INVESTIMENTO NO EXTERIOR

    

    

    

    

    NATURA HOLDING S.A.

    

    

    NATURA COSMÉTICOS S.A.

    

    

    

    

    and

    

    

    

    

    AVON PRODUCTS, INC.

    

    

    

    

    
      
        

    

    

    

    

    

    

    

    VOTING AND SUPPORT AGREEMENT

    

    

    This Voting and Support Agreement (as the same may be amended from time to time in accordance with its terms, this “Agreement”) is entered into as of May 22, 2019, by and among the parties identified below (“Parties”
        or, individually, a “Party”), on the one side:

    

    

    	 	
            I.

          	
            ANTONIO LUIZ DA CUNHA SEABRA, Brazilian, married, resident
                and domiciled in the city of São Paulo, State of São Paulo, at Rua Amauri 255, 17th floor, ZIP CODE 01448-000, bearer of Identity Card RG
                No. 3.524.557-8-SSP/SP and enrolled with the CPF under No. 332.927.288-00 (“Luiz Seabra”);

          
	 	 	 
	 	
            II.

          	
            LUCIA HELENA RIOS SEABRA, Brazilian, married, resident and
                domiciled in the city of São Paulo, State of São Paulo, at Rua Amauri 255, 17th floor, ZIP CODE 01448-000, bearer of Identity Card RG No. 15.275.178-6 SSP/SP
                and enrolled with the CPF under No. 055.336.688-29 (“Lucia Seabra”);

          
	 	 	 
	 	
            III.

          	
            GUILHERME PEIRÃO LEAL, Brazilian, married, resident and
                domiciled in the city of São Paulo, State of São Paulo, at Rua Amauri 255, 17th floor, ZIP CODE 01448-000, bearer of Identity Card RG No. 4.105.990-6—SSP/SP
                and enrolled with the CPF under No. 383.599.108-63  (“Guilherme Leal”);

          
	 	 	 
	 	
            IV.

          	
            PEDRO LUIZ BARREIROS PASSOS, Brazilian, married, resident
                and domiciled in the city of São Paulo, State of São Paulo, at Rua Amauri 255, 9th floor, ZIP CODE 01448-000, bearer of Identity Card RG No. 4.700.753-9 SSP/SP
                and enrolled with the CPF under No. 672.924.618-91 (“Pedro Passos”);

          
	 	 	 
	 	
            V.

          	
            UTOPIA PARTICIPAÇÕES S.A., a Brazilian closely held
                corporation, duly organized and validly existing under the laws of Brazil, with its principal place of business in the city of São Paulo, State of São Paulo, at Rua Amauri 255, 17th floor, ZIP CODE 01448-000, enrolled with the CNPJ under No. 04.819.657/0001-36 (“Utopia”), herein represented in accordance with
                its By-laws;

          
	 	 	 
	 	
            VI.

          	
            FELIPE PEDROSO LEAL, Brazilian, married, resident and
                domiciled in the city of São Paulo, State of São Paulo, at Rua Rodésia, 106 - office 13 — Vila Madalena, ZIP CODE 05435-020, bearer of Identity Card No. 23.434.078-2-SSP/SP and enrolled with the CPF under No. 252.495.598-24 (“Felipe Leal”);

          
	 	 	 
	 	
            VII.

          	
            RICARDO PEDROSO LEAL, Brazilian, married, resident and
                domiciled in the city of São Paulo, State of São Paulo, at Rua Rodésia, 106 - office 13 — Vila Madalena, ZIP CODE 05435-020, bearer of

          

    

    

    
      
        

    

    
    

    

    	 	 	
            Identity Card No. 23.434.121-X-SSP/SP and enrolled with the CPF under No. 269.535.658-70 (“Ricardo Leal”);

          
	 	 	 
	 	
            VIII.

          	
            PASSOS PARTICIPAÇÕES S.A, a Brazilian closely held
                corporation, duly organized and validly existing under the laws of Brazil, with its principal place of business in the city of São Paulo, State of São Paulo, at Rua Amauri 255, 9th floor, ZIP CODE 01448-000, enrolled with the CNPJ under No. 05.561.635/0001‐81 (“Passos”), herein represented in accordance with
                its By-laws;

          
	 	 	 
	 	
            IX.

          	
            FUNDO DE INVESTIMENTO DE AÇÕES VEREDAS - INVESTIMENTO NO EXTERIOR,
                a Brazilian investment fund, duly organized and validly existing under the laws of Brazil, with its principal place of business in the city of Rio de Janeiro, State of Rio de Janeiro, at Praia de Botafogo, n.o 501, 5th floor (part), Torre Corcovado, Botafogo, ZIP CODE 22250-040, enrolled with the CNPJ under No. 19.959.932/0001-94, managed by SPN Gestão de Investimentos Ltda, a company authorized by CVM to manage securities portfolios, headquartered in the city of São Paulo, State of São Paulo, at Rua Amauri,
                255, 9th floor, ZIP CODE 01448-000, enrolled with the CNPJ under No. 05.825.277/0001-77  (“FIA Veredas”, and together with Luiz Seabra, Lucia Seabra, Guilherme
                Leal, Pedro Passos, Utopia, Felipe Leal, Ricardo Leal and Passos, the “Founding Controlling Parent Shareholders”), herein represented in accordance with its
                By-laws;

          
	 	 	 
	 	
            X.

          	
            NATURA COSMÉTICOS S.A., a Brazilian corporation, duly
                organized and validly existing under the laws of Brazil, with its principal place of business in the city of São Paulo, State of São Paulo, at Avenida Alexandre Colares, 1.188, Vila Jaguara, CEP 05106-000 , enrolled with the CNPJ under
                No. 71.673.990/0001-77 (“Nectarine”), herein represented in accordance with its By-laws;

          
	 	 	 
	 	
            XI.

          	
            NATURA HOLDING S.A., a Brazilian corporation, duly
                organized and validly existing under the laws of Brazil, with its principal place of business in the city of Cajamar, State of São Paulo, at Via de Acesso
                Km 30.5, Building “C”, Room A, Itaim Empresarial, CEP 07790-190, enrolled with the CNPJ under No. 32.785.497/0001-97  (“HoldCo”);

          
	 	 	 
	 	 	
            And:

          
	 	 	 
	 	
            XII.

          	
            AVON PRODUCTS, INC., a corporation, duly organized and
                validly existing under the laws of the State of New York, with its principal executive offices at Building 6, Chiswick Park, London W4 5HR, United Kingdom (“Apple”),

                herein represented in accordance with its organizational documents.

          

    

    

    

    

    
      2

      
        

    

    
    

     

    

    
      W I T N E S S E T H :

      

      

      WHEREAS, on the date hereof, contemporaneously with the execution of this Agreement, Apple, Nectarine and certain other parties,
          entered into that certain Agreement and Plan of Mergers (“Merger Agreement”), which sets forth the terms and conditions upon which Nectarine, through HoldCo, and Apple
          intend to combine their business, by means of a merger and payment in HoldCo’s stock;

      

      

      WHEREAS, as a condition and inducement to Apple’s willingness to enter into the Merger Agreement, Apple has requested that the
          Founding Controlling Parent Shareholders agree to enter into this Agreement;

      

      

      WHEREAS, the Utopia Restructuring is currently underway and as a result of such Utopia will cease to be a stockholder of Nectarine and
          Felipe Leal and Ricardo Leal will become direct stockholders of Nectarine, and Guilherme Leal will increase its direct interest in Nectarine, as further described herein;

      

      

      WHEREAS, the Founding Controlling Parent Shareholders, directly or indirectly, in the aggregate, hold title and are the legitimate
          owners of shares representing 50,54652262% of the total voting capital stock of Nectarine;

      

      

      WHEREAS, a condition for closing of the transactions of the Merger Agreement is the corporate restructuring of Nectarine, pursuant to
          which several actions from Nectarine and the Founding Controlling Parent Shareholders will be required as further described herein; and

      

      

      WHEREAS, the Founding Controlling Parent Shareholders wish to enter into this Agreement so that, subject to the terms and conditions
          of the Merger Agreement, they commit to take all actions and to vote on any matters and to cause all actions to be taken under their control as necessary to approve the transactions set forth in the Merger Agreement.

      

      

      NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements contained herein, the Parties hereto agree as
          follows:

      

      

      ARTICLE 1

      Definitions

      

      

      Section 1.01.   Definitions.
          Unless otherwise defined herein, capitalized terms and expressions used but not defined herein shall have the same meaning ascribed to them in the Merger Agreement.

      

      

      Section 1.02.   Other
            Definitional and Interpretative Provisions. The words “hereof”, “herein” and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The
          table of contents, headings and captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation

      

      

      
        3

        
          

      

      

      

      hereof. References to Articles, Sections, Exhibits and Schedules are to Articles, Sections, Exhibits and Schedules of this Agreement
          unless otherwise specified. All Exhibits and Schedules annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any capitalized terms used in any Exhibit or Schedule but not
          otherwise defined therein, shall have the meaning as defined in this Agreement. Any singular term in this Agreement shall be deemed to include the plural, and any plural term the singular. Whenever the words “include”, “includes” or “including”
          are used in this Agreement, they shall be deemed to be followed by the words “, but not limited to,” whether or not they are in fact followed by those words or words of like import. The terms “dollars”, “$” and “U.S. $” shall mean United States
          dollars, the lawful currency of the United States of America. The word “or” is not exclusive. The word “extent” in the phrase “to the extent” shall mean the degree to which a subject or other thing extends, and such phrase shall not mean simply
          “if”. “Writing”, “written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. Except as otherwise specifically provide in this Agreement, any agreement, instrument
          or statute defined or referred to herein means such agreement, instrument or statute as from time to time amended, supplemented or modified, including (i) in the case of agreements or instruments, by waiver or consent, and (ii) in the case of
          statutes, by succession of comparable successor statutes and any rules, regulations or interpretations promulgated thereunder. References to any Person include the successors and permitted assigns of that Person. References from or through any
          date mean, unless otherwise specified, from and including or through and including, respectively.

      

      

      ARTICLE 2

      Bound Shares

      

      

      Section 2.01.   Shares Bound to
            this Agreement. All of the shares, equity or voting securities or interests issued and outstanding of Nectarine and HoldCo held directly or indirectly by any of the Founding Controlling Parent Shareholders on the date hereof, in addition
          to any shares, equity or voting securities or interests issued by Nectarine and HoldCo that, at any time and by any means, are subscribed, acquired or by any other means come to be held directly or indirectly by the Founding Controlling Parent
          Shareholders shall be subject to this Agreement (“Bound Shares”). For the purposes of this Agreement, Bound Shares also include: (i) shares, equity or voting securities
          or interests resulting from bonuses, dividends or distributions that are capitalized or otherwise attributed to the Bound Shares, from the splitting or grouping of the Bound Shares; (ii) shares, equity or voting securities or interests arising
          from the subdivision, reclassification, exchange, capitalization of credits, profits or other reserves, conversion, merger (including of shares), consolidation, spin-off, recapitalization, readjustment or other similar transaction or other type
          of corporate reorganization and, in any case, arising from the Bound Shares (including the Profit Capitalization and the HoldCo Capital Reserve Capitalization (each as defined in the Parent Disclosure Letter)); or (iii) new shares, equity or
          voting securities or interests subscribed to in the exercise of preemptive rights attributed to the Bound Shares, as

      

      

      
        4

        
          

      

      

      

      well as warrants, options, debentures and other securities that are convertible into, or are rights to acquire, shares, equity or
          voting securities or interests issued by Nectarine, HoldCo or any of their successors, as applicable. It is hereby understood that any shares that are to be held by the Founding Controlling Parent Shareholders as a result of the restructurings
          set forth in Section 3.01 below shall also be considered Bound Shares and subject to the provisions of this Agreement.

      

      

      Section 2.02.  Successors. 

          (a)  This Agreement binds the Bound Shares and, consequently, the Founding Controlling Parent Shareholders and their respective assignees and successors, on any account, including, in the case of individuals, their spouses, partners, curators,
          heirs and successors who become, for any reason, holders of the Bound Shares and/or the voting rights inherent to them (jointly referred to as “Successors”). (b) In the
          event of the death of any Founding Controlling Parent Shareholders, their Successors shall assume all the rights and obligations of the deceased Founding Controlling Parent Shareholder provided for in this Agreement. This assumption shall be
          automatic in the event of legal or testamentary succession, and the corresponding Successor shall inherit the Bound Shares in accordance with this Agreement, as well as everything attached thereto (ownerships, encumbrances, rights and
          obligations), in accordance with all the terms and conditions agreed upon by the Founding Controlling Parent Shareholders. The same rule also applies to the spouse and/or partner in the event of the division of assets arising from a separation,
          divorce and/or dissolution of steady union. In the case of judicial interdiction of a Founding Controlling Parent Shareholder or of a minor (absolutely or relatively incompetent), the curator is equally obligated and bound by the terms and
          conditions of this Agreement, in accordance with the legal provisions, personal statements (in public or private written documents) regarding guardianship of the interdicted person or minor. In any such event, such Successor shall promptly
          execute a joinder agreement substantially in the form of Exhibit I and deliver a separate written instrument contemplated in Section 5.07 in the form of Exhibit III for a transfer by succession to be permitted hereunder.

      

      

      Section 2.03.  Filing.
          This Agreement shall be filed at the headquarters of Nectarine and of HoldCo as an agreement binding each Party, their respective shareholders, board of directors and executive officers. Each of Nectarine and HoldCo shall record the existence of
          this Agreement and restriction on trading of the Bound Shares (except for any transfers by succession permitted hereunder and the transfer of shares in connection with the Utopia Restructuring, which shall otherwise be restricted from trading) in
          its share registry book.

      

      

      Section 2.04.   Depositary
            Institution. The Parties shall deliver a notice to the depositary institution (instituição depositária) of Nectarine’s shares, within no more than
          five (5) Business Days after the date hereof, informing the depositary institution of the existence of this Agreement and requesting that the existence hereof and restriction on the trading of the Bound Shares (except for any transfers by
          succession permitted hereunder and the transfer of shares in connection with the Utopia

      

      

      
        5

        
          

      

      

      

      

      

      Restructuring, which shall otherwise be restricted from trading) are annotated in their respective book-entry share deposit accounts.

      

      

      Section 2.05.   Breaching Vote.
          The Parties hereby agree that Nectarine and HoldCo are hereby authorized and obligated to compute the votes of the Parties as agreed in Article 3 hereof, disregarding any opposing votes for being null and void.

      

      

      Section 2.06.   Joinder
            Agreement. The Parties hereby agree that, in the event any shareholder of Nectarine that is currently part of the controlling block (and not party hereto) wishes to (i) adhere to this Agreement; and/or (ii) participate in the Nectarine
          Contribution, any such shareholder shall execute a joinder agreement, whereby the shareholder shall agree to be bound with respect to the Founding Controlling Parent Shareholders’ rights and obligations under this Agreement, substantially in the
          form of Exhibit I hereof. Upon execution of such joinder agreement, such shareholder shall be considered as a “Founding Controlling Parent Shareholder” for all purposes
          hereof. If such other controlling shareholder executing a joinder does not wish to participate in the Nectarine Contribution, such shareholder shall migrate to HoldCo together with the other Parent shareholders, under the Restructuring Merger of
          Shares.

      

      

      ARTICLE 3

      Voting Agreements And Other Covenants

      

      

      Section 3.01.   Obligations of
            the Founding Controlling Parent Shareholders. Subject to the terms and conditions of this Agreement and of the Merger Agreement and the observation of the provisions of the Brazilian Corporation Law and applicable regulations, each of
          the Founding Controlling Parent Shareholders hereby irrevocably agrees to (i) perform or cause to be performed all necessary or advisable acts (in their capacity as shareholders and/or directors of Nectarine and HoldCo), (ii) cooperate with the
          practice of all acts necessary or advisable, and (iii) appear at any necessary meeting and to favorably cast its votes (or to instruct its respective representatives to favorably cast their votes or otherwise cause its votes to be cast favorably)
          in any such shareholders meetings and board of directors meetings (including, for the avoidance of doubt, any Previous Meetings (as defined in and held pursuant to Article IX of that certain Shareholders’ Agreement of Natura Cosméticos S.A. dated
          February 12, 2015, the “Shareholders’ Agreement”)) (as holders of Bound Shares and as directors), in each case, to:

      

      

      (a)   approve and complete the Utopia Restructuring as soon as reasonably possible following the date of this
          Agreement, provided, for the avoidance of doubt, that this obligation shall only apply to Utopia, Guilherme Leal, Felipe Leal and Ricardo Leal, as the sole shareholders of Utopia;

      

      

      (b)   approve and complete the calling and holding of a Previous Meeting, in accordance with paragraph 2 of
          Section 9 of the Shareholders’ Agreement, within thirty (30) Business Days following the execution of this Agreement (provided that, if

      

      

      
        6

        
          

      

      

      

      not possible the Founding Controlling Parent Shareholders shall have an additional thirty (30) Business Days to call and hold such
          meeting), and the favorably casting of their votes in such meeting, pursuant to the terms of paragraph 3 of Section 9 of the Shareholders’ Agreement, to approve the Nectarine Contribution, the Restructuring Merger of Shares and the Mergers in
          accordance with Section 3.01(c) below, which approval shall bind all signatories of the Shareholders’ Agreement at the shareholder meetings of Nectarine;

      

      

      (c)   in connection with the Nectarine Contribution, the Restructuring Merger of Shares and the Mergers and the
          other transactions contemplated by the Merger Agreement:

      

      

      (i)     approve and complete prior to the Closing Date, following the conclusion of the Utopia Restructuring and
          except for FIA Veredas, the contribution, transfer, conveyance, assignment and delivery of all of their right, title and interest in, to and under their respective shares of the capital stock of Nectarine to HoldCo and the making of the Founders
          Cash Contribution to HoldCo and, in exchange receiving for each issued and outstanding share of capital stock of Nectarine so contributed a number of shares of common stock of HoldCo such that the total number of shares of HoldCo outstanding
          immediately following the time of such contribution equals the total number of shares of Nectarine so contributed, and the HoldCo shares issued in the contribution shall collectively constitute all of the issued and outstanding shares of HoldCo
          as of the time immediately following such contribution (collectively, the “Nectarine Contribution”);

      

      

      (ii)     cooperate and assist as reasonably necessary, proper or advisable on its part under Applicable Laws to (A)
          register HoldCo as a publicly-held company with the CVM, (B) list HoldCo Shares with B3, under the Novo Mercado listing segment, and (C) establish HoldCo’s ADR Facility and list HoldCo ADS under the ADR Facility with NYSE pursuant to the Merger
          Agreement;

      

      

      (iii)    approve and, as reasonably necessary, proper or advisable on its part under Applicable Laws, to the extent
          legally within their power, complete, prior to the Closing Date, the merger of all of the issued and outstanding shares of Nectarine by HoldCo, pursuant to which Nectarine would become a wholly-owned direct subsidiary of HoldCo and each share of
          Nectarine’s capital stock held by Nectarine’s shareholders (excluding shares held by the Founding Controlling Parent Shareholders contributed to HoldCo in the Nectarine Contribution) will be converted into the right to receive 1 share of HoldCo
          (the “Restructuring Merger of Shares”);

      

      

      (iv)    approve and, as reasonably necessary, proper or advisable on its part under Applicable Laws, to the extent
          legally within their power, complete the First Merger, pursuant to which Apple would become a wholly-owned direct subsidiary of Merger Sub I (the “First Merger”);

      

      

      
        7

        
          

      

      

      

      (v)     approve and, as reasonably necessary, proper or advisable on its part under Applicable Laws, to the extent
          legally within their power, complete the Second Merger, pursuant to which Apple would become a wholly-owned direct subsidiary of HoldCo (the “Second Merger”);

      

      

      (vi)    cooperate and assist, as reasonably necessary, proper or advisable on its part under Applicable Laws for
          the preparation and filing, as well as the execution and delivery of any such additional documents, reports or materials required from them by Applicable Laws or regulations to cause the Nectarine Contribution, the Restructuring Merger of Shares
          and the Mergers, as contemplated by the Merger Agreement to be consummated; and

      

      

      (vii)   in furtherance, and not in limitation, of the foregoing clauses (i) through (vi), (A) attending or, if
          applicable, causing a proxy to attend all board and shareholders’ meetings and voting at such board and shareholders’ meetings in favor of the Nectarine Contribution, the Restructuring Merger of Shares, the Mergers, (B) executing protocols and
          justifications of merger that are required from them by Applicable Laws or regulations, (C) duly calling, convening or causing shareholders’ meetings of Nectarine and HoldCo to be held, or executing and delivering written stockholder consents,
          and (D) causing to be present as a director, when applicable, and the approving of the Nectarine Contribution, the Restructuring Merger of Shares and the Mergers.

      

      

      Section 3.02.   Shareholders’
            Agreement. Each of the Founding Controlling Parent Shareholders acknowledges and agrees that Articles V, VI and VII of the Shareholders’ Agreement shall be inapplicable to the transactions contemplated by this Agreement and the Merger
          Agreement, and each Party hereby waives any and all rights, and agrees that it shall not exercise any rights, under Articles V, VI or VII of the Shareholders’ Agreement, in each case with respect to the transactions contemplated by this Agreement
          and the Merger Agreement. Within five (5) Business Days following the Previous Meeting held pursuant to Section 3.01(b), the Controlling Parent Shareholders shall (i) deliver the minutes from such Previous Meeting to Nectarine and (ii) request
          that Nectarine file such minutes at Nectarine’s headquarters. Nectarine shall as promptly as practicable file such minutes at its headquarters. Each of the Founding Controlling Parent Shareholder agrees that it will not revoke or amend in any way
          the approval of the Nectarine Contribution, the Restructuring Merger of Shares or the Mergers at the Shareholders’ Meeting held pursuant to Section 3.01. Each of the Founding Controlling Parent Shareholders agrees not to amend or modify the
          Shareholders’ Agreement in any manner that is adverse to Apple with respect to the Previous Meeting contemplated by Section 3.01 without Apple’s prior written consent.

      

      

      Section 3.03.  HoldCo and
            Merger Subs Obligations. From the date hereof to the date of the consummation of the Restructuring Merger of Shares, each of the Founder Controlling Parent Shareholders agrees to cause HoldCo and the Merger Subs to perform their
          respective obligations under the Merger Agreement.

      

      

      
        8

        
          

      

      

      

      Section 3.04.   Illustrative
            Step Plan. The parties hereto agree that the actions set forth on Exhibit II (the “Illustrative

              Steps Plan”) shall be taken in furtherance of consummating the Nectarine Contribution, the Restructuring Merger of Shares and the Mergers and the other transactions contemplated by this Agreement and the Merger Agreement; provided that the Founder Controlling Parent Shareholders and each of their respective Affiliates may, after prior consultation with Apple, take actions
          inconsistent with the Illustrative Steps Plan if (i) required by Applicable Law or Order or (ii) such Person determines in its reasonable discretion that such inconsistent actions are necessary or advisable to consummate Nectarine Contribution,
          the Restructuring Merger of Shares or the Mergers, and in the case of this clause (ii) such inconsistent actions would not impair or materially delay the consummation of the Nectarine Contribution or the Restructuring Merger of Shares beyond the
          date the Parent Restructuring is contemplated to be completed in the Illustrative Steps Plan.

      

      

      ARTICLE 4

      Representations and Warranties

      

      

      Section 4.01.   Authorization;
            Validity of Agreement. Utopia, Passos and FIA Veredas are duly organized, validly existing and in good standing under the laws of Brazil. Each of the Founding Controlling Parent Shareholders have the requisite capacity and authority to
          execute and deliver this Agreement, to perform their obligations hereunder and to consummate the transactions contemplated hereby. This Agreement has been duly authorized (to the extent authorization is required), executed and delivered by each
          of the Founding Controlling Parent Shareholders and constitutes a valid and binding obligation of the Founding Controlling Parent Shareholders, enforceable against the Founding Controlling Parent Shareholders in accordance with its terms, subject
          to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other laws affecting creditors’ rights generally and general principles of equity.

      

      

      Section 4.02.   Ownership.
          The Utopia, Passos, FIA Veredas, Luiz Seabra, Lucia Seabra, Guilherme Leal and Pedro Passos are, and, following the conclusion of the Utopia Restructuring, Felipe Leal and Ricardo Leal will be, the sole legitimate owners and have good and valid
          title to the Bound Shares, free and clear of any Liens other than pursuant to this Agreement or the Merger Agreement or the existing commitment involving the Founding Controlling Parent Shareholder and the Joinder Affiliate specified in Exhibit IV.  Such Founding Controlling Parent Shareholders have, and will have (subject to any succession transfer permitted hereunder) at the time of any extraordinary
          general meeting of Nectarine or HoldCo in connection with the Nectarine Contribution, the Restructuring Merger of Shares or the Mergers or the other transactions contemplated by the Merger Agreement, as applicable, voting power, power of
          disposition, power to Transfer, power to issue instructions with respect to the matters set forth herein and power to agree to all of the matters set forth in this Agreement, in each case with respect to all Bound Shares of such Controlling
          Parent Shareholder, subject to Applicable Laws and the terms of this Agreement. As of the date hereof the Bound Shares represent

      

      

      
        9

        
          

      

      

      

      (i) 50,54652262% of the total voting capital stock of Nectarine, equivalent in the aggregate to 218,058,616 shares of Nectarine; and
          (ii) 100% of the capital stock of HoldCo. The Bound Shares of Nectarine held by each Founding Controlling Parent Shareholder as of the date hereof is set forth opposite such Founding Controlling Parent Shareholders’ name on Schedule A hereto. The Bound Shares are sufficient to approve each of the actions required to be taken pursuant to this Agreement. The Founding Controlling Parent
          Shareholders have and will have at all times throughout the term of this Agreement sole voting power (including the right to control such vote as contemplated herein), sole power of disposition, sole power to issue instructions with respect to
          the matters set forth in Section 3.01, and sole power to agree to all of the matters set forth in this Agreement, in each case with respect to all of the Bound Shares.

      

      

      Section 4.03.   No Violation.
          The execution and delivery of this Agreement by the Founding Controlling Parent Shareholders do not, and the performance by the Founding Controlling Parent Shareholders of their obligations under this Agreement will not (x) conflict with or
          violate any Applicable Law or, as applicable, any certificate or articles of incorporation, bylaws or other equivalent organizational documents of the Founding Controlling Parent Shareholders or Parent, HoldCo or any of the other Parent Entities,
          (y) violate or constitute a default under any of the terms, conditions or provisions of any Contract to which any Founding Controlling Parent Shareholder is a party or accelerate any Controlling Parent Shareholder’s obligations under any such
          Contract or (z) result in the creation of any Lien on the Bound Shares. No consent of, or filing, declaration or registration with, any Governmental Authority is necessary for the execution and delivery of this Agreement by any Founding
          Controlling Parent Shareholder or the performance by such Founding Controlling Parent Shareholder of its obligations hereunder.

      

      

      Section 4.04.   Absence of
            Litigation. As of the date hereof, there is no litigation, action, suit or proceeding pending or, to the knowledge of the Founding Controlling Parent Shareholders, threatened against or affecting the Founding Controlling Parent
          Shareholders and/or any of its Affiliates before or by any Governmental Authority that would reasonably be expected to impair the ability of any Founding Controlling Parent Shareholder to perform their obligations hereunder or under the Merger
          Agreement or to consummate the transactions contemplated hereby on a timely basis. As of the date of hereof, there is no outstanding Order imposed upon any Founding Controlling Parent Shareholder that would reasonably be expected to impair the
          ability of any Founding Controlling Parent Shareholder to perform its obligations hereunder or to consummate the transactions contemplated hereby on a timely basis.

      

      

      ARTICLE 5

      Covenants

      

      

      Section 5.01.   No Inconsistent
            Agreements. The Founding Controlling Parent Shareholders hereby covenant and agree that, except for this Agreement, the Founding

      

      

      
        10

        
          

      

      

      

      Controlling Parent Shareholders (a) have not entered into, and shall not enter into at any time prior to the termination of this
          Agreement, any voting agreement or voting trust with respect to the Bound Shares that would prevent them from performing their obligations under this Agreement, (b) have not granted, and shall not grant at any time prior to the termination of
          this Agreement, a proxy, consent or power of attorney with respect to the Bound Shares that would prevent them from performing their obligations under this Agreement; and (c) has not taken and shall not knowingly take any action that would make
          any representation or warranty of the Founding Controlling Parent Shareholders contained herein untrue or incorrect or have the effect of preventing or disabling the Founding Controlling Parent Shareholder from performing any of their obligations
          under this Agreement.

      

      

      Section 5.02.   Prohibition on
            Transfers. Except for the Utopia Restructuring referred to in Section 8.01 and/or any transfer resulting from legal or testamentary succession pursuant to Section 2.02(b) above, until the earlier of (a) each of the Mergers shall have
          become effective in accordance with the terms of the Merger Agreement and (b) the termination of this Agreement, the Founding Controlling Parent Shareholders agree that they shall not Transfer or cause or permit the Transfer of any of the Bound
          Shares or any other interest therein, except as permitted pursuant to Section 2.02(b) of this Agreement or necessary to consummate the obligations undertaken hereby. Any Transfer in violation of this provision shall be void ab initio. A Person shall be deemed to have effected a “Transfer” of a Bound Share if such Person directly or indirectly (i) sells, pledges, encumbers,
          exchanges, converts, assigns, grants an option with respect to, transfers, tenders or otherwise disposes of such Bound Share or any interest in such Bound Share (including by gift, merger or operation of law), or (ii) enters into an agreement,
          arrangement or commitment providing for the sale of, pledge of, encumbrance of, exchange of, conversion of, assignment of, grant of an option with respect to, transfer, tender of or other disposition of such Bound Share or any interest therein
          (including by gift, merger or operation of law.

      

      

      Section 5.03.   No
            Solicitation; Other Offers.

      

      

      (a)   The Founding Controlling Parent Shareholders shall not, and shall cause their respective Representatives not
          to, directly or indirectly, (i) solicit, initiate or take any action to facilitate or encourage the submission of any Parent Acquisition Proposal (as defined in the Merger Agreement), (ii) enter into or participate in any discussions or
          negotiations with, furnish any non-public information relating to Nectarine or any of its Subsidiaries or afford access to the business, properties, assets, books or records of Nectarine or any of its Subsidiaries to, otherwise cooperate in any
          way with, or knowingly assist, participate in, facilitate or encourage any effort by, any Third Party that is seeking to make, or has made, a Parent Acquisition Proposal, (iii) amend or grant any waiver or release under or fail to enforce any
          standstill or similar agreement with respect to any class of equity securities of Nectarine or any of its Subsidiaries, (iv) recommend, adopt or approve or publicly propose to recommend, adopt or approve a Parent Acquisition Proposal or vote or
          tender any Bound Shares in favor or

      

      

      
        11

        
          

      

      

      

      support of a Parent Acquisition Proposal; or (v) enter into any agreement in principle, letter of intent, term sheet, merger
          agreement, acquisition agreement, option agreement or other agreement relating to a Parent Acquisition Proposal.

      

      

      Section 5.04.  No Adverse Board
            Recommendation. The Founding Controlling Parent Shareholders hereby undertake not to request, induce or in any other way cause Nectarine’s board of directors to withdraw, revoke or modify in a manner adverse to the transactions
          contemplated hereby or thereby, or publicly propose to withdraw, revoke or modify in a manner adverse to the transactions contemplated hereby or thereby, the approval by the board of directors of Parent of the Merger Agreement and the
          transactions contemplated thereby. For the avoidance of doubt, each Founding Controlling Parent Shareholder hereby agrees that any adverse recommendation, opinion or position of Nectarine’s Board shall not limit or modify its obligations under
          this Agreement. Each Founding Controlling Parent Shareholder further agrees that any recommendation by an independent committee regarding the exchange ratio applicable to the Restructuring Merger of Shares shall not limit or modify its
          obligations under this Agreement.

      

      

      Section 5.05.   Disclosure;
            Filings. Each of the Founding Controlling Parent Shareholders hereby authorizes Apple and the Parent Entities to publish and disclose in any announcement or disclosure required by the SEC, the CVM, or other Governmental Authorities and
          in the Form F-4 and the Joint Proxy Statement/Prospectus and the filings required for the Nectarine Contribution and the Restructuring Merger of Shares, each Controlling Parent Shareholder’s identity and ownership of the Bound Shares and the
          nature of each Controlling Parent Shareholder’s obligations under this Agreement, to the extent that such information is required be disclosed by Applicable Law in any filings with or notices to Governmental Authorities required to be filed or
          made in connection with the contemplated transactions under Applicable Law. Each of the Parent Entities hereby authorizes each Founding Controlling Parent Shareholder to disclose in any disclosure required by any Governmental Authority the
          identity of the Parent Entities and the nature of the Parent Entities’ obligations under this Agreement. Each of the Founding Controlling Parent Shareholders hereby agrees to provide to Governmental Authorities such additional information as may
          be necessary or appropriate in connection with any filings with or approvals sought from such Governmental Authorities pursuant to the Merger Agreement, including the Required Competition Approvals.

      

      

      Section 5.06.   Further
            Assurances. Subject to the terms and conditions of this Agreement, upon the request of Apple, each Founding Controlling Parent Shareholder shall execute and deliver such additional documents and take all such further action as may be
          reasonably necessary or appropriate to comply with the its obligations under this Agreement.

      

      

      Section 5.07.   Founding
            Controlling Parent Shareholders Representative. Each Founding Controlling Parent Shareholder hereby grants to officers designated by Nectarine and HoldCo a power of attorney, in the form attached hereto as Exhibit III,

      

      

      
        12

        
          

      

      

      

      which original and notarized copies are delivered to Nectarine on the date hereof, except for the powers of attorney granted by Lucia
          Seabra, Felipe Leal and Ricardo Leal that shall be delivered to Nectarine within ten (10) days as from the date hereof. The Founding Controlling Parent Shareholders also undertake to deliver to Nectarine, within thirty (30) days as from the date
          hereof, a certified translation of each of the powers of attorney granted pursuant to this Section 5.07 into Portuguese, prepared and signed by a sworn public translator. If for any reason prior to End Date  the officers of Nectarine and/or
          Holdco that received the powers-of-attorney from the Founding Controlling Parent Shareholders cease to be officers of Nectarine and/or Holdco, each of the Founding Controlling Parent Shareholder agrees to execute and deliver to Nectarine, within
          ten (10) Business Days from the date such officers ceased to hold their positions in Nectarine’s and/or Holdco’s management, a replacement separate written instrument in the form attached hereto as Exhibit III, accompanied by its certified translation pursuant to this Section 5.07. If necessary, each Founding Controlling Parent Shareholder agrees to execute and deliver to Nectarine, five (5) Business Days
          prior to the expiration of such notarized instrument, a replacement separate written instrument in the form attached hereto as Exhibit III with an expiration date no
          earlier than the End Date prior to the expiration date of the first power of attorney.

      

      

      ARTICLE 6

      Indemnification

      

      

      Section 6.01.   Indemnification.
          The Founding Controlling Parent Shareholders hereby irrevocably and unconditionally agree to, severally, indemnify and hold Nectarine and/or its Affiliates (including, after the consummation of the Restructuring Merger of Shares, HoldCo), as well
          as their respective officers, directors, employees and their successors and permitted assignees (each an “Indemnified Party”, and, collectively, the “Indemnified Parties”) harmless from and against any and all losses, damages, liabilities, charges, costs or expenses of any nature (including, but not limited to, reasonable
          attorney fees and court costs, interest, Taxes or other penalties) (“Losses”) incurred or suffered by any Indemnified Party arising from or relating to:

      

      

      (a)   any misrepresentation or breach of warranty, or non-fulfillment of or failure to perform any covenant or
          agreement contained in this Agreement by any of the Founding Controlling Parent Shareholders; and

      

      

      (b)   any contingencies, losses, liabilities or costs resulting, directly or indirectly, from Taxes levied on the
          capital reserve created as a result of the subscription of Holdco shares by the Controlling Parent Shareholders and the contribution in kind of Nectarine shares to Holdco.

      

      

      Section 6.02.   Mitigation of
            Losses. Upon occurrence of any indemnifiable event pursuant to Section 6.01, the relevant Indemnified Party shall endeavor its reasonable best efforts to mitigate, in good faith and to the extent possible, the actual Loss to be
          eventually indemnified.

      

      

      
        13

        
          

      

      

      

      Section 6.03.  Participation in
            the Defense. Upon reasonable request of the Founding Controlling Parent Shareholders, the Indemnified Party agrees to, in good faith and to the extent possible, keep the Founding Controlling Parent Shareholders duly informed with respect
          to the progress of any indemnifiable event pursuant to Section 6.01.

      

      

      Section 6.04.   Payment of
            Indemnification. Upon occurrence of any indemnifiable event pursuant to Section 6.01, the relevant Indemnified Party shall notify the Founding Controlling Parent Shareholders in writing within thirty (30) days following the date in
          which any Loss becomes due, and the Founding Controlling Parent Shareholders shall pay the indemnification amount corresponding to the Loss suffered by the Indemnified Party within thirty (30) days following receipt of such notice. The parties
          hereby agree that a Loss will be considered due upon: (i) in the event it does not involve a third-party claim, the receipt of a notice sent by the Indemnified Party informing of such Loss, in case the applicable claim notice is not disputed by
          the Founding Controlling Parent Shareholders (and if disputed, upon mutual agreement by the Parties of final decision pursuant to Section 8.07 hereof); (ii) in the event it involves a third-party claim, (x) the conclusion of the claim by means of
          a settlement or similar; or (y) any final judgment or award that has been rendered by a court, arbitration board or administrative agency of competent jurisdiction and the time in which to appeal therefrom has expired or it is not subject to
          further appeals.

      

      

      ARTICLE 7

      Termination

      

      

      Section 7.01.  Termination.
          This Agreement shall remain in full force and effect until the Merger Agreement shall have been validly terminated pursuant to Section 10.01 thereof (other than a termination arising from a violation of the obligations set forth in this
          Agreement), whereupon this Agreement is automatically terminated without the need of any further action by the Parties.

      

      

      Section 7.02.  Effect of
            Termination. If this Agreement is terminated pursuant to Section 7.01, this Agreement shall become void and of no effect without liability of any Party (or any stockholder or representative of such party) to each other Party hereto,
          except for this Section 7.02, the indemnification obligations of the Founding Controlling Parent Shareholders set forth in Section 6.01, and Article 8, each of which shall survive for the applicable statute of limitation. Notwithstanding the
          foregoing, nothing set forth in this Section 7.02 or elsewhere in this Agreement shall relieve any Founding Controlling Parent Shareholder or Parent Entity from liability to each other, or otherwise limit the liability of a Founding Controlling
          Parent Shareholder or Parent Entity to each other under Article 6 of this Agreement, for any breach of this Agreement prior to such termination.

      

      

      
        14

        
          

      

      

      

      ARTICLE 8

      Miscellaneous

      

      

      Section 8.01.  Utopia
            Restructuring. The Parties hereby (i) agree and acknowledge that Utopia has undertaken a capital reduction whereby the totality of Nectarine’s shares owned by Utopia were transferred to Guilherme Leal, Ricardo Leal and Felipe Leal
          pending registration with the competent Board of Trade, and (ii) expressly consent to such transfer (“Utopia Restructuring”). For the purposes of this Agreement,
          following the conclusion of Utopia Restructuring, Guilherme Leal, Ricardo Leal and Felipe Leal shall each be deemed a Successor pursuant to Section 2.02 above and all of Nectarine’s shares held by any of Guilherme Leal, Ricardo Leal and Felipe
          Leal shall be deemed to be Bound Shares.

      

      

      Section 8.02.   Notices.
          All notices, requests and other communications to any Party hereunder shall be in writing (including facsimile transmission and electronic mail (“e-mail”) transmission,
          so long as a receipt of such e-mail is requested and received) and shall be given,

      

      

      if to Antonio Luiz da Cunha Seabra and/or Lúcia Helena Rios Seabra, to:

      

      

      	 	
              Rua Amauri n.o 255, 17th floor

            
	 	
              01448-000

            	 
	 	
              Attention:

            	
              Antonio Luiz da Cunha Seabra

            
	 	
              E-mail:

            	
              luizseabra@natura.net

            

      

      

      if to Utopia Participações S/A, Guilherme Peirão Leal, Felipe Pedroso Leal and/or Ricardo Pedroso Leal, to:

      

      

      	 	
              Rua Amauri n.o 255, 17th floor

            
	 	
              01448-000

            	 
	 	
              Attention:

            	
              Guilherme Peirão Leal

            
	 	
              E-mail:

            	
              guilhermeleal@natura.net

            

      

      

      if to Passos Participações S/A, to:

      

      

      	 	
              Rua Amauri n.o 255, 9th floor

            
	 	
              01448-000

            	 
	 	
              Attention:

            	
              Pedro Luiz Barreiros Passos

            
	 	
              E-mail:

            	
              pedropassos@natura.net

            

      

      

      if to FIA Veredas, to:

      

      

      	 	
              Rua Amauri n.o 255, 9th floor

            
	 	
              01448-000

            	 
	 	
              Attention:

            	
              Guilherme Ruggiero Passos

            
	 	
              E-mail:

            	
              guilhermepassos@animainvestimentos.com.br

            

      

      

      
        15

        
          

      

      

      

      

      

      if to Nectarine, to:

      

      

      	 	
              Natura Cosméticos S.A.

            
	 	
              Avenida Alexandre Colares, n°. 1188, Vila Jaguara

            
	 	
              Sao Paulo, SP, 05106-000

            
	 	
              Brazil

            	 
	 	
              Attention:

            	
              Itamar Gaino Filho

            
	 	
              E-mail:

            	
              itamargaino@natura.net

            

      

      

      with a copy (which shall not constitute notice) to:

      

      

      	 	
              Davis Polk & Wardwell LLP

            
	 	
              450 Lexington Avenue

            
	 	
              New York, New York 10017

            
	 	
              Attention:

            	
              Daniel Brass

            
	 	
              E-mail:

            	
              daniel.brass@davispolk.com

            

      

      

      and with a copy (which shall not constitute notice) to:

      

      

      	 	
              Pinheiro Neto Advogados

            
	 	
              Rua Hungria, 1100

            
	 	
              São Paulo, SP, 01455-906

            
	 	
              Brazil

            	 
	 	
              Attention:

            	
              Henrique Lang

            
	 	
              E-mail:

            	
              hlang@pn.com.br

            

      

      

      if to Apple, to:

      

      

      	 	
              Avon Products, Inc.

            
	 	
              1 Avon Place

            
	 	
              Suffern, NY

            
	 	
              Attention:

            	
              Ginny Edwards

            
	 	
              E-mail:

            	
              ginny.edwards@avon.com

            

      

      

      with a copy (which shall not constitute notice) to:

      

      

      	 	
              Cravath, Swaine & Moore LLP

            
	 	
              825 Eighth Avenue

            
	 	
              New York, NY 10019

            
	 	
              Attention:

            	
              Ting S. Chen, Esq.

            
	 	
              E-mail:

            	
              TChen@cravath.com

            

      

      

      

      

      or to such other address or facsimile number as such Party may hereafter specify for the purpose by notice to the other Parties hereto. All such notices,
          requests and other communications shall be deemed received on the date of receipt by the recipient thereof

      

      

      
        16

        
          

      

      

      

      if received prior to 5:00 p.m. on a Business Day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed to have
          been received on the next succeeding Business Day in the place of receipt.

      

      

      Section 8.03.   Amendments and
            Waivers.  (a) Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by each Party to this Agreement or, in the case of a waiver, by
          each Party against whom the waiver is to be effective.

      

      

      (b)            No failure or delay by any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other
          or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by Applicable Law.

      

      

      Section 8.04.   Expenses.
          Except as otherwise provided herein, all costs and expenses incurred in connection with this Agreement shall be paid by the Party incurring such cost or expense.

      

      

      Section 8.05   Binding Effect;
            Benefit; Assignment. The provisions of this Agreement, shall be binding upon and shall inure solely to the benefit of the Parties and their respective Successors and assigns, and no provision of this Agreement is intended to confer any
          rights, benefits, remedies, obligations or liabilities hereunder upon any Person other than the Parties hereto and their respective successors and assigns.

      

      

      Section 8.06. Governing Law.
          This Agreement and all actions (whether in contract or tort) based on, arising out of or relating to the negotiation, execution or performance of this Agreement or the transactions contemplated by this Agreement shall be governed by and construed
          in accordance with the laws of the Federative Republic of Brazil, regardless of the Applicable Law that might otherwise govern under applicable principles of conflicts of law rules thereof.

      

      

      Section 8.07.  Jurisdiction.
          Any and all disputes, controversies or claims arising out of, relating to or in connection with this Agreement or the transactions contemplated hereby, including as to the formation, existence, validity, enforceability, interpretation,
          performance, breach and/or termination of this Agreement, between the Parties, as well as successors to such Parties (“Dispute”), shall be referred to and
          finally resolved, exclusively, except in limited circumstances provided in Sections 8.07(g) and 8.07(h), by arbitration, administered by the International Court of Arbitration of the International Chamber of Commerce (“ICC”), in accordance with its Rules of Arbitration in effect at the time the arbitration is initiated (“Rules”), and, on a subsidiary basis, with Law 9.307/96, except as they may be modified by mutual agreement of the Parties or as otherwise modified in this Section 8.07. Each of the Parties agrees that it will not attempt to
          challenge, deny or defeat the jurisdiction of the Arbitral Tribunal or bring any action, suit or proceeding arising out of, relating to or in connection with this Agreement, or the transactions contemplated hereby, or the

      

      

      
        17

        
          

      

      

      

      formation, existence, validity, enforceability, interpretation, performance, breach and/or termination of this Agreement, in any court or
          before any tribunal or Governmental Authority, other than before the Arbitral Tribunal pursuant to this Section 8.07 (except for actions, suits or proceedings brought to enforce any award of the Arbitral Tribunal and except in limited
          circumstances provided in Sections 8.07(g) and 8.07(h)).

      

      

      (a)   The arbitration shall be conducted by an arbitral tribunal (the “Arbitral Tribunal”) composed of three arbitrators. One arbitrator shall be nominated by the claimant(s), and one arbitrator shall be nominated by the respondent(s). The party requesting arbitration
          shall nominate its arbitrator concurrently with such request and the other party  shall do so within fifteen calendar days from receipt of the request for arbitration.  In the event that for any reason a party fails to nominate an arbitrator or
          deliver notification of such nomination to the other party and to the ICC within this time period, upon request of the other party, such arbitrator shall instead be appointed by the ICC within fifteen calendar days of the ICC receiving such
          request in accordance with the ICC Rules.  The two arbitrators appointed in accordance with the above provisions shall nominate by mutual agreement the third arbitrator and notify the parties and the ICC in writing of such nomination within
          fifteen calendar days of their appointment.  If the first two appointed arbitrators fail to nominate a third arbitrator or notify the other party and the ICC of that nomination within this time period, then, upon request of the  relevant party,
          the third arbitrator shall be appointed by the ICC within fifteen calendar days of the ICC receiving such request in accordance with the Rules.  The third arbitrator shall serve as chairman of the Arbitral Tribunal.

      

      

      (b)   The seat, or legal place, of arbitration shall be the city of São Paulo, State of São Paulo, Brazil, and the
          language to be used in the arbitral proceedings shall be English, and all evidence that is produced in Portuguese must be translated into English. The governing law of this agreement to arbitrate shall be the law of the Federative Republic of
          Brazil.

      

      

      (c)   Each arbitrator shall be (i) qualified to practice law in the Federative Republic of Brazil, (ii) fluent in
          the English language, (iii) independent of the Parties and (iv) a lawyer or retired judge with at least fifteen years’ experience practicing in Brazil in mergers and acquisitions (which may, for the avoidance of doubt, include a litigator with at
          least fifteen years’ experience practicing in Brazil handling mergers and acquisitions disputes).  Without limiting the generality of the foregoing, no arbitrator shall be an employee, officer, director, consultant, contractor or other service
          provider of Parties or of their respective affiliates, nor shall any arbitrator have any interest that would be affected in any material respect by the outcome of the dispute.

      

      

      (d)   The arbitration shall be conducted in an expedited manner. There shall be one round of pre-hearing
          submissions by each of the parties, submitted simultaneously, and one reply submission by each of the parties, submitted simultaneously.  The deadline set for first round pre-hearing submissions shall be set

      

      

      
        18

        
          

      

      

      

      by the Arbitral Tribunal, but in no event shall be more than 90 days from the date of submission of the matter to the Arbitral
          Tribunal.  The deadline set for reply submissions shall be set by the Arbitral Tribunal, but in no event shall be more than 45 days from the date first round pre-hearing submissions are due.  The arbitration hearing shall be held on the date set
          by the Arbitral Tribunal, but in no event shall the hearing date be more than 30 days from the date reply submissions are due.  There shall be no submissions, including any post-hearing submissions, considered by the Arbitral Tribunal other than
          the first round pre-hearing and reply submissions referred to above. The Arbitral Tribunal shall endeavor to render its Award within 60 days of the last day of the arbitration hearing. The Arbitral Tribunal shall have sole discretion as to the
          establishment of deadlines for any arbitration, provided, however, that the Arbitral Tribunal may not extend any deadline beyond those established above in this clause (d); provided, further, however, that failure of the Arbitral Tribunal to
          comply with any time period set out in this Section 8.07 shall not affect in any way the jurisdiction of the Arbitral Tribunal or the validity of its Award, including in connection with the timeframe for the Arbitral Tribunal to render its Award,
          which shall, in any case, be in accordance with the Rules. Any application for the correction, interpretation or completion of omission of the Award under the Rules and the Law n° 9.307/96 shall be filed within 10 calendar days from the date of
          notification of the Award. The Arbitral Tribunal may grant a maximum period of time of 5 calendar days to the other party to respond and the Arbitral Tribunal shall render its decision within 10 calendar days therefrom or from the date of receipt
          of the application if it decides not to grant a time limit for response.

      

      

      (e)   Any request for production of documents or other information shall be subject to the express authorization of
          the Arbitral Tribunal, which shall endeavor to ensure that any such requests are as limited and disciplined as is consistent with the just resolution of the dispute, controversy or claim

      

      

      (f)   Each of the Parties hereby agree that the Arbitral Tribunal shall have the power to award equitable remedies,
          including specific performance, injunctive relief, declaratory judgements or other equitable relief, and is specifically empowered to order the Parties to take any and all actions contemplated or required by this Agreement, or in connection with
          the transactions contemplated hereby, to consummate the Nectarine Restructuring, the First Merger and the Second Merger (including, in connection therewith, the convening of board meetings and meetings of shareholders, the giving of notice of
          such meetings, the assistance for preparation, distribution, publication and presentation of materials for such meetings (including any required appraisal reports, financial statements, merger protocols and management proposals (and engaging
          and/or ratifying advisors, auditors, appraisers and other third parties in connection therewith)), the causing to be present as a director and the approving of, the Nectarine Restructuring, the First Merger, the Second Merger and the other
          transactions contemplated hereby, the causing to be present and the voting of shares or capital stock of any entity held by the Founding Controlling Parent Shareholders at such meetings to approve the Nectarine Restructuring, the First Merger,
          the Second Merger and the other transactions contemplated hereby, the

      

      

      
        19

        
          

      

      

      

      registration and publication of minutes of such meetings, the securing of waivers from Governmental Authorities in connection with
          such meetings, the execution and delivery of written consents, the taking of the actions set forth on the Illustrative Steps Plan and any other actions necessary or advisable to consummate Nectarine Restructuring, the First Merger and the Second
          Merger), in each case in accordance with, and subject to the terms and conditions of, this Agreement. The decisions, judgments, awards, rulings or orders rendered by the Arbitral Tribunal acting by a majority (including for equitable relief,
          injunctive relief, specific performance or monetary damages) (each, an “Award”) shall be in writing and fully enforceable against, and final, nonappealable
          and binding on, the Parties and their respective successors and assigns. Each Award of the Arbitral Tribunal shall be unreviewable for error of law or fact or legal reasoning of any kind. Each of the Parties waive any form of appeal against any
          Award of the Arbitral Tribunal. The Parties undertake to carry out each Award of the Arbitral Tribunal without delay and waive their right to any form of recourse. Judgment upon any Award may be entered by any court having jurisdiction thereof or
          having jurisdiction over the relevant party or its assets and, to the maximum extent permitted by Applicable Law, each of the Parties agree that any court of competent jurisdiction in which enforcement of the Award is sought shall have power to
          enforce the relief awarded by the Arbitral Tribunal, regardless of whether such relief is characterized as legal, equitable or otherwise.

      

      

      (g)   Before the commencement of the arbitration, the Parties may request provisional and/or urgent measures to the
          courts in accordance with Section 8.07(h) or to the Emergency Arbitrator (as defined in the Rules), in accordance with the Rules. After the commencement of arbitration, all provisional and/or urgent measures shall be requested directly to the
          Arbitral Tribunal, which may sustain, modify and/or revoke any measures previously granted by the courts in accordance with Section 8.07(h) or to the Emergency Arbitrator (as defined in the Rules), as the case may be.

      

      

      (h)   Provisional and/or urgent measures prior to the commencement of the arbitration, as well as enforcement
          actions and actions to enforce the Award, or any other judicial measure available under Law 9.307/96, when applicable, may be requested, to the competent judicial courts of São Paulo, State of São Paulo, Brazil, and each of the parties hereby
          irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or
          hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Requesting any judicial measure
          available under Law 9.307/96 shall not be construed as a waiver of the rights under this clause or to arbitration as the sole dispute resolution mechanism.

      

      

      (i)   In order to facilitate the comprehensive resolution of related disputes and to avoid inconsistent decisions
          in related disputes, upon request of any party to an arbitration proceeding commenced pursuant to this Section 8.07, any dispute, controversy or claim subsequently noticed for arbitration under the provisions of this

      

      

      
        20

        
          

      

      

      

      Section 8.07 may be consolidated with the earlier-commenced arbitration proceeding, as determined within the discretion of the
          arbitral tribunal appointed in the first-commenced arbitration proceeding.  The arbitral tribunal appointed in the first-commenced arbitration proceeding may consolidate such arbitrations if it determines that (i) the proceedings are compatible,
          and (ii) there is no unjustifiable harm caused to one of the parties to the consolidated arbitrations.  If the first-appointed arbitral tribunal determines that the arbitrations shall be consolidated, the first-appointed arbitral tribunal shall
          have jurisdiction over the consolidated arbitration to the exclusion of any other arbitrator or arbitral tribunal and any appointment of another arbitrator in relation to the other arbitrations will be deemed to be functus officio. Any such
          termination of an arbitrator’s appointment shall be without prejudice to: (i) the validity of any act done or order made by that arbitrator or by the ICC in support of that arbitration before the termination of his appointment; (ii) his
          entitlement to be paid his proper fees and disbursements; and (iii) the date when any claim or defense was raised for the purpose of applying any limitation bar or any similar rule or provision.

      

      

      (j)   The expenses of the arbitral proceedings, including, but not limited, to the administrative costs of the ICC
          and arbitrators’ fees, when applicable, shall be borne by each party as per the Rules. Upon rendering the Award, the Arbitral Tribunal, in its discretion, may allocate among the parties to the arbitration all costs of the arbitration, including
          the fees and expenses of the arbitrators and reasonable attorney’s fees, expert witness expenses and other costs incurred by the parties.

      

      

      (k)   In the event that one or more Parties requests provisional and/or urgent measures to the courts in accordance
          with Section 8.07(h), process in any suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court, including as provided for in Section 8.07(n). The Parties agree that a
          final judgment in any suit, action or proceeding brought in accordance with Section 8.07(h) shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Applicable Law.

      

      

      (l)   The Parties agree that the arbitral proceedings shall be kept confidential and that the existence of the
          proceeding and any element of it (including but not limited to any pleadings, briefs or other documents submitted or exchanged, any testimony or other oral submissions, and any awards) shall not be disclosed other than to the Arbitral Tribunal,
          the ICC, the Parties, their counsel, accountants and auditors, insurers and re-insurers, financial advisors, representatives and any person necessary to the conduct of the proceeding.  The confidentiality obligations shall not apply (i) if
          disclosure is required by Applicable Law, rule or regulation or (ii) as far as disclosure is necessary or appropriate to enforce the rights arising out of the award.

      

      

      (m)   The agreement to arbitrate under this Section 8.07 shall be specifically enforceable. The Parties irrevocably
          submit to the exclusive personal jurisdiction of the competent judicial courts of São Paulo, State of São Paulo, Brazil, for the limited

      

      

      
        21

        
          

      

      

      

      purpose of enforcing this agreement to arbitrate, including any action to compel arbitration or to stay or enjoin any action or
          proceeding commenced or prosecuted in violation of this Section 8.07, and irrevocably waive any objection to venue for such a proceeding in such court (including but not limited to an objection based on the doctrine of forum non conveniens).  Each party’s agreement to this arbitration is voluntary.

      

      

      (n)   Each Party to this Agreement irrevocably consents to service of process by registered mail to such party’s
          respective address set forth above in Section 8.01, including for proceedings regarding the recognition and enforcement of any award resulting from an arbitration brought pursuant to this Section 8.07 or any judgment, of any jurisdiction,
          resulting therefrom, and for enforcement of the agreement to arbitrate set forth in this Section 8.07.  Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by Applicable
          Law.

      

      

      Section 8.08. Entire Agreement.
          This Agreement constitute the entire agreement between the Parties with respect to the subject matter of this Agreement and supersedes all prior agreements and understandings, both oral and written, between the Parties with respect to the subject
          matter hereof.

      

      

      Section 8.09.  Severability.
          If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other Governmental Authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and
          restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner
          materially adverse to any Party. Upon such a determination, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner in order that the
          transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

      

      

      Section 8.10.  Specific
            Performance. The Parties hereby acknowledge and agree that all obligations undertaken or arising hereunder are subject to specific performance within the terms of the Brazilian Code of Civil Procedure.

      

      

      IN WITNESS WHEREOF, the Parties have duly executed and delivered, by their duly authorized legal representatives,
          in seven (7) counterparts of equal content and form, in the presence of the two (2) witnesses below, this Agreement on the date first written above.

      

      

      [The remainder of this page has been intentionally left blank;
            signature pages follow.]

      

      

      
        22

        
          

      

      

      

      [Signature page to Voting and Support Agreement]

      

      

      

      

      

      

      
        	 	 	ANTONIO LUIZ DA CUNHA SEABRA 

              	 
	 	 	 	 
	 	 	 	 
	

              	

              	/s/ ANTONIO LUIZ DA CUNHA SEABRA	 
	 	 	

              	 
	 	

              	

              	 
	 	 	 	 

      

      

      

      

      
        
          

      

      
         

          

        [Signature page to Voting and Support
              Agreement]

      

      

      

      

      

      

      

      
        	 	 	LUCIA HELENA RIOS SEABRA 

              	 
	 	 	 	 
	 	 	 	 
	

              	

              	/s/ LUCIA HELENA RIOS SEABRA	 
	 	 	

              	 

      

      

      

      

      
        
          

      

      

      

       

      
        
          [Signature page to Voting and Support Agreement]

        

      

      

      

      

      

      

      

      
        	 	 	GUILHERME PEIRÃO LEAL	 
	 	 	 	 
	 	 	 	 
	

              	

              	/s/ GUILHERME PEIRÃO LEAL	 
	 	 	 	 

      

      

      

    

    
      
        

    

    
      
        
          
            
              

                [Signature page to Voting and Support Agreement]

              

            

            

              

              

              

              

              
                	 	

                      	 
	 	 	PEDRO LUIZ BARREIROS PASSOS 

                      	 
	 	 	 	 
	 	 	 	 
	

                      	

                      	/s/ PEDRO LUIZ BARREIROS PASSOS	 
	 	 	

                      	 
	 	

                      	

                      	 
	 	 	 	 

              

              

              

               

                  

               

                  

               

                  

              
                
                  

              

               

                  

              [Signature page to Voting and Support Agreement]

            

          

        

      

      

      

      

      

      
        	 	 	 	
                UTOPIA PARTICIPAÇÕES S.A.

              
	 	 	 	 	 
	 	 	 	 	 
	
                By:

              	/s/ PEDRO VILLARES

              	 	
                By:

              	/s/ GUILHERME PEIRÃO LEAL
	 	
                Name:

              	 	 	 	
                Name:

              	 
	 	
                Title:

              	 	 	 	
                Title:

              	 

      

      

      

      

      

       

       

      

      

    

    
      
        

    

    

      
        
          
            [Signature page to Voting and Support Agreement]

          

        

      

      

      

      

      

      

      

      

      

      
        	 	FELIPE PEDROSO LEAL	 
	 	 	 	 
	 	 	 	 
	

              	

              	/s/ GUILHERME PEIRÃO LEAL	 
	 	 	

              	 
	 	

              	

              	 
	 	 	 	 

      

      

      

    

    
      
        

    

    
      
        
          
             

                

            [Signature page to Voting and Support Agreement]

          

        

      

      

      

      

      

      

      

      

      
        	 	RICARDO PEDROSO LEAL	 
	 	 	 	 
	 	 	 	 
	

              	

              	/s/ GUILHERME PEIRÃO LEAL	 
	 	 	

              	 
	 	

              	

              	 
	 	 	 	 

      

      

      

      

      
        
          

      

      

      

      
        
          
            [Signature page to Voting and Support Agreement]

          

        

      

      

      

      

      

      

      

      

      

      
        	 	PASSOS PARTICIPAÇÕES S.A.	 
	 	 	 	 
	 	 	 	 
	

              	

              	/s/ PEDRO LUIZ BARREIROS PASSOS	 
	 	 	

              	 
	 	 	

              	 	 

      

      

      

      

      

      

      

      

      
        
          

      

      

      

      
        
          
            
              [Signature page to Voting and Support Agreement]

            

          

        

      

      

      

      

      

      
        	 	 	 	
                FUNDO DE INVESTIMENTO DE AÇÕES

                VEREDAS–INVESTIMENTO NO EXTERIOR

              
	 	 	 	 
	 	 	 	 
	
                By:

              	

              	 	
                By:

              	/s/ Guilherme Ruggiero Passos
	 	
                Name:

              	 	 	 	
                Name:

              	 
	 	
                Title:

              	 	 	 	
                Title:

              	 

      

      

      

      

      
        
          

      

      

      

      
        
          
            
              [Signature page to Voting and Support Agreement]

            

          

        

      

      

      

      

      

      

      

      

      

      
        	 	AVON PRODUCTS, INC.	 
	 	 	 	 
	 	 	 	 
	

              	By:

              	/s/ Ginny Edwards

                	 
	 	 	Name:

              	Ginny Edwards	 
	 	 	Title: 	Deputy General Counsel & Interim Lead General Counsel	 

      

      

      

      

      
        
          

      

      

      

      
        
          
            
              
                [Signature page to Voting and Support Agreement]

              

            

          

        

      

      

      

      

      

      

      

      

      

      
        	 	NATURA HOLDING S.A.	 
	 	 	 	 
	 	 	 	 
	 	By:

              	/s/ José Antonio de Almeida Filippo	 
	 	 	Name:

              	José Antonio de Almeida Filippo 

              	 
	 	 	Title: 

              	
                Executive Officer

                

              	 
	 	 	 

              	 	 

      

      
        	 	By:

              	/s/ Itamar Gaino Filho	 
	 	 	Name:

              	Itamar Gaino Filho	 
	 	 	Title: 

              	
                Executive Officer

                

              	 
	 	 	 

              	 	 

      

      

      

      

      
        
          

      

      
        
          
            
              
                
                   

                      

                  [Signature page to Voting and Support Agreement]

                

              

            

          

        

      

      
        

        

        

        

        

        

        

        

        
          	 	
                  NATURA COSMÉTICOS S.A.

                	 
	 	 	 	 
	 	 	 	 
	 	By:

                	/s/ José Antonio de Almeida Filippo	 
	 	 	Name:

                	José Antonio de Almeida Filippo 

                	 
	 	 	Title: 

                	
                  Chief Financial and Investor 

                  Relations Officer 

                  

                	 
	 	 	 

                	 	 

        

        
          	 	By:

                	/s/ Itamar Gaino Filho	 
	 	 	Name:

                	Itamar Gaino Filho	 
	 	 	Title: 

                	
                  Chief Legal OfficerExhibit 10.1

 

Riccardo Zacconi

 

By email only

 

09 May 2019

 

Dear Riccardo,

 

Chairman’s Letter Agreement:

 

Further to our various conversations, I am writing to confirm the terms of your transition from CEO to Chairman of King, and the terms that will apply in your role as Chairman.

 

Transition period

 

Up to and including 30 June 2019, you will continue in your role as CEO of King and the terms of your existing Service Agreement will still apply, except for those relating to your bonus, which are modified as per the paragraph below.

 

For the period 1 January 2019 to 30 June 2019 (“Transition Period”), your Profit Sharing Bonus will be 3% of the applicable Profit Sharing Pool (if any) generated under the Profit Sharing Plan.  This percentage will not be pro-rated notwithstanding the Transition Period ends on 30 June 2019. This percentage will replace the previous percentages and guaranteed minimum stated in clause 5.3 of your Service Agreement. In the event of any discrepancy between the Profit Sharing Plan, your Service Agreement and this letter, the terms of this letter shall prevail.

 

Chairman terms

 

From 1 July 2019 (the ‘Commencement Date’), you will become the Chairman of King and the terms set out below are those that will apply while you are in this role. For the avoidance of doubt, the terms of your Service Agreement will cease to apply effective from 30 June 2019 and are superseded by the terms of this letter.

 

1.              You will remain an employee of Activision Blizzard, Inc. (“Company” or “Activision Blizzard”) and undertake the role of the Chairman of the King business.

 

2.              We will respect your continuity of employment from 14 July 2004.

 

3.              Subject always to clause 4, your employment as Chairman of King under the terms of this letter is terminable by either party giving to the other at least six months’ notice, such notice not to be given by either party prior to 1 Jan 2020. The Company also reserves the right to place you on garden leave for all or part of your notice period, whether given by you or by the Company. Following the termination of your employment, howsoever caused, the Company will use its reasonable endeavours to forward your King email address to a personal email address specified by you and will not be routinely monitored by the Company.

 

4.              Notwithstanding any other provision of this letter or the Company Code of Conduct, the Company may terminate your employment for “Cause” immediately and without further payment or any payment if you (a) have committed any serious breach or repeated or continued any other breach of your obligations under this letter; (b) are guilty of serious misconduct or are convicted of any criminal offence involving dishonesty or where a custodial penalty is imposed; (c) are guilty of any fraud or dishonesty or act in any manner which in the reasonable opinion of the Company brings or is likely to bring you or the Company or any Group Company into serious disrepute or is materially adverse to the interests of the Company or any Group Company; (d) are, in the reasonable opinion of the Company, seriously negligent or incompetent in the performance of your duties; (e) become or are declared insolvent or commit any act of bankruptcy or convene a meeting of or make or proposes to make any arrangement or composition with creditors; (f) in the Company’s reasonable belief have failed to perform your duties to a satisfactory standard, after having received a written warning from the Company and been provided with sufficient time to improve such performance; (g) have been disqualified from being a director by reason of any order made under the English Company Directors Disqualification Act 1986 or any other enactment; (h) are guilty of a serious breach of any rules issued by the Group from time to time

 

1

 

regarding its electronic communications systems; (i) cease to be entitled to work in the relevant jurisdiction in which you are expected to conduct your duties; or (j) are guilty of a serious breach of the rules, policies, regulations or codes of practice (as amended from time to time) as applicable to the Company or any Group Company from time to time.

 

5.              You will provide your services and time, faithfully and diligently, for up to but not more than 2 full days per calendar month (at times and days which we agree), albeit that this time may be spread throughout the month (on not more than four separate days) and may or may not be undertaken as work in full days. As agreed between us, this work will vary from (a) providing ad hoc guidance to the COO of Activision Blizzard INC., the CEO of Activision Blizzard INC. and the President of King, (or such other persons as we may notify you of in writing from time to time), to (b) attending or remotely participating in occasional meetings. We would give you reasonable advance notice of any meetings or preparation work that might need to be done in advance of those meetings.

 

6.              As Chairman, we are flexible on your work location and you would not need to come into the King London office.  If we did consider it helpful that you attended a specific meeting in person we would let you know this in advance and, provided that the Company gives you reasonable notice of a meeting and also specifies that your attendance in person is required, you must use your best endeavours to accommodate that request and attend in person, unless prevented from doing so due to medical issues for you or your immediate family.

 

7.              Your basic annual salary would be £100,000 per year, payable in equal monthly instalments and subject to deductions for income tax and national insurance.

 

8.              We shall reimburse you promptly for all reasonable business expenses exclusively and properly incurred by you in the proper performance of your duties, provided that you comply with the provisions of the Group’s expense and other applicable policies (as amended from time to time).

 

9.              Bonus

 

9.1.         Subject to clause 9.2 below and the terms of the King Profit Sharing Plan as in effect from time to time (the “Profit Sharing Plan”), you shall be eligible to receive discretionary compensation on an annual basis based on the value of a share of the earnings generated by King’s business. Your profit sharing compensation (“Profit Share Bonus”) shall be a share of the “Profit Sharing Pool” that is created pursuant to the Profit Sharing Plan and in accordance with the Profit Sharing Plan. From 1 July 2019, your Profit Share Bonus for a complete financial year will be 1% of the applicable Profit Sharing Pool (if any) that is generated under the Profit Sharing Plan, prorated as necessary and subject to the provisions of Clause 9.2 below. This percentage will replace the percentage referred to in the section above entitled “Transition period” only in respect of the period after 1 July 2019.   Your total percentage (taking account of the Transition Period and the Post Transition Period) for the 2019 year is therefore 3.5%, subject always to the provisions of clause 9.2 below.  Subject to the provisions of Clauses 9.1-9.4: (a) no amendments to your applicable Profit Share Bonus shall reduce your percentage share of the PSP as specified in Clause 9.1 and (b) no amendments to reduce this percentage share will otherwise be made when confirming your Profit Share Bonus amounts to you.

 

9.2.         You understand that the actual bonus amount under the Profit Sharing Plan is dependent upon the amount of such Profit Sharing Pool being established thereunder, if any. If no amounts are generated under the Profit Sharing Pool with respect to any performance year (e.g., due to lack of earnings for the King business as determined under the Profit Sharing Plan), then you shall not be entitled to receive any Profit Share Bonus for such year. Further, although the Company retains the sole and absolute discretion pursuant to the terms of the Profit Sharing Plan to amend (or even terminate) the Profit Sharing Plan at any time, the Company agrees that for purposes of calculating your Profit Share Bonus for a particular Plan Year, the Company shall apply the version of the Profit Sharing Plan in effect at the beginning of such Plan Year.  Any changes made to the Profit Sharing Plan shall only apply to payments to you with respect to a subsequent Plan Year.  Your Profit Share Bonus (if any or prorated in accordance with clause 9.1 - 9.3) shall be paid, in full, as a lump sum, no later than 90 calendar days following the end of the relevant PSP year. In the event of any discrepancy with the Profit Sharing Plan and this letter, the terms of this letter shall prevail.

 

2

 

9.3.         You are not required to remain continuously employed by the Group through the date on which the payments under the Profit Sharing Plan and a pro-rata Profit Share Bonus shall be awarded in respect of any part year worked prior to the termination of your employment, provided that the termination of your employment is not for Cause. No element of any Profit Share Bonus shall be deferred or shall be delivered in equity, notwithstanding any terms of any Profit Share Plan providing for this but the timing of any payment will be consistent with clause 9.2 above.

 

9.4.         If the Company replaces the Profit Sharing Plan (as contemplated by clause 9.2 above), you will be placed on the same replacement plan as other similarly situated executives provided that nothing in this Agreement shall prevent the Company from terminating the Profit Sharing Plan and not replacing it (in accordance with its rights under clause 9.2).

 

9.5.         In the event of any discrepancy between the Profit Sharing Plan and this letter, the terms of this letter shall prevail.

 

10.       You will remain enrolled in the Company pension scheme and the Company will continue to bear the annual fee to enable you to remain enrolled in your current private DKV medical insurance scheme, subject to the terms of those schemes as amended from time to time. The fees for the DKV medical insurance scheme should be paid by you first and then reclaimed via the Company expenses process (following the Company shall make prompt reimbursement to you in no more than 30 days).

 

11.       As an employee, you will still owe a duty of loyalty to the Company and the Group and must use all reasonable endeavours to promote and protect the interests of the Group and not do or knowingly permit to be done anything which is harmful to those interests. You must also comply with all applicable Group’s rules, regulations, policies and procedures from time to time in force, including but not limited to our Code of Conduct, conflict of interest policies and insider trading policies. As Chairman, you will be expected to bring objectivity and independence of view to discussions and to help to provide guidance to the Company and its management at all times. You will comply with such reasonable regulations and directions as the Company may from time to time prescribe in writing in connection with your role and as consistent with your position in the Company. You will use all reasonable care and skill to the best of your abilities in the provision of your services as Chairman. You must abide by any statutory, fiduciary or common-law duties, promptly make such reports to the Company management in connection with any Group Company’s affairs on such matters and at such times as are reasonably required and report your own wrongdoing and any wrongdoing or proposed wrongdoing of any other employee or director of the Company or any Group Company to the Legal Department  immediately on becoming aware of it.

 

12.       Outside Interests

 

12.1.           Investments: You may continue to make Investments provided that any Investments in a Relevant Industry must be pre-cleared by the Company via the Company’s conflict of interest process. To enable such clearance not to be unreasonably withheld or delayed you should give the Company as much notice and detail as possible about the desired Investment.  You may also invest in any fund or other investment vehicle that is not controlled by you and in relation to which you have no authority over the investments such fund or other vehicle makes (‘Fund’ and ‘Fund Investment’ accordingly) and no involvement in any capacity in managing the company or organization into which the Fund or Fund Investment invests.  There is no obligation to disclose any such Fund Investment, even where the Fund invests in a Relevant Industry provided that the Fund or Fund Investment is not specifically geared towards Relevant Industry investments (in which case this would require pre-clearance as set out in this clause 12.1). The obligation upon you to pre-clear Investments in a Relevant Industry under this clause 12.1 will cease to apply following the termination of your employment.

 

12.2.           Other work: we have already agreed that you may work for the benefit of the organisations listed in Schedule 2 of this letter outside of your duties as Chairman and provided that any Work that you may want to do in a Relevant Industry, with Specified Competitors must be pre-cleared by the Company in advance via the Company’s conflict of interest process. To enable such clearance not to be unreasonably withheld or delayed, you should give the Company as much notice and detail as possible about the work you wish to do. For the

 

3

 

avoidance of doubt, you do not need to seek pre-clearance in advance in respect of any work that you do outside a Relevant Industry.

 

12.3.           Facilitation of employment of Group Company employees by third parties: during your employment with the Company, you may not in any way encourage or otherwise facilitate the employment or engagement, of any Group Company employees, by any another organisation whether or not such person would be in breach of contract as a result of such employment or engagement.  It shall not be a breach of this clause if you provide a personal reference to an employee who is already holding a formal written offer of employment from another employer, regardless of whether notice to terminate employment has been given or received by either the employee or the relevant Group Company.

 

12.4.           If, at any time during your employment, two or more Restricted Employees have left their employment, appointment or engagement with the Company to carry out services for a Specified Competitor which competes with, or is intended to compete with the Company or any Group Company, you will not at any time during the six months following the last date on which any of those Restricted Employees were employed or engaged by us, be employed or engaged in any way with that Specified Competitor.

 

12.5.           For the purposes of this letter:

 

12.5.1.           “Investments” means the making or holding (whether directly, indirectly or jointly, including through any family member, household or otherwise), for passive investment purposes only: (a) up to 5% of the shares or stock of any class in any public company quoted or dealt in on a Recognised Investment Exchange, units, interests or shares in any unit trust, open ended investments companies, funds or other collective or shared investment scheme, and (b) up to 100% of the shares or stock or other equity in any company or entity not quoted or dealt in on a Recognised Investment Exchange and provided that the Executive does not provide active management of the entity;

 

12.5.2.           “Recognised Investment Exchange” means any recognised investment exchange as defined by section 285 of the Financial Services and Markets Act 2000;

 

12.5.3.           “Restricted Period” means the period of 6 months during from the Termination Date or such earlier date at the Company’s discretion in accordance with clause 13.3;

 

12.5.4.           “Termination Date” means the date of termination of your employment and your role as Chairman in whether in accordance with clauses 3 and 4 of this letter or otherwise;

 

12.5.5.           “Work” means be employed or involved as agent, consultant, director, employee, worker, owner, partner, shareholder or in any other capacity in any other business, trade, profession or occupation (or the setting up of any business, trade, profession or occupation).

 

13.       Post-termination restrictions

 

13.1.           Non-compete: During the Restricted Period, you may not Work with a Specified Competitor.  For the avoidance of doubt, nothing in this clause 13.1 shall prohibit you from making Investments in accordance with clause 12.1.

 

13.2.           Non-solicit: During the Restricted Period, you may not (a) employ or engage, (b) offer to employ or engage, or (c) otherwise facilitate the employment or engagement, of any Restricted Employee, whether on your own behalf or that of another organisation.

 

13.3.           If the Company places you on garden leave for all or part of your notice period (in accordance with clause 3), it retains the discretion to have the provisions of clauses 13.1 and 13.2 run from the start of your garden leave period as opposed to the Termination Date, provided always that you are not in possession or receipt of, nor able to access, Confidential Information about the Company or the Group on or after the date on which notice to terminate your employment.

 

4

 

13.4.           You acknowledge and accept that the restrictions contained in this Clause 13 are reasonable and necessary for the protection of the legitimate commercial interests of the Group and may be enforced by the Group.

 

13.5.           If any of the restrictions in this Clause 13 is unenforceable for any reason but would be enforceable if part of the restriction were deleted, that restriction shall apply with such deletions as may be necessary to make it valid and enforceable. Also, each restriction is intended to be read and construed independently of the other restrictions so that if one or more are found to be void or unenforceable, the remaining restriction(s) would not be affected.

 

13.6.           If you receive an offer to be involved in a business concern in any capacity during your appointment as Chairman, or before the expiry of the last of the restrictions in this letter, you shall give the person making the offer a copy of clauses 13 and 14 and shall tell us the identity of that person as soon as possible after accepting the offer.

 

14.       Definitions

 

Group means the Company and any company which is for the time being a subsidiary or holding company of the Company and any subsidiary of any such holding company and Group Company means any company in the Group.

 

Relevant Industry means video games, online games, interactive entertainment or any other associated activities including but not limited to esports, gambling related to video games, linear media or distribution related to games, platform or streaming services related to games.

 

Restricted Employee means any employee of the King business at a level of VP or above, and/or any employee of the Activision Blizzard business at the level of SVP or above.

 

Service Agreement means your service agreement with the Company dated 3 November 2015.

 

Specified Competitor means (a) any company or organisation whose business is developing, marketing, promoting, distributing, publishing and/or selling electronic games, for computers, mobile devices, on-line use or play, consoles and/or handheld devices, (b) any games division or games studio, or (c) any games hardware or games streaming technology or games platform division or company, and in the case of (b) or (c)  either owned by or associated with Microsoft, Electronic Arts, Tencent, NetEase, Ubisoft, Sony, Google, Amazon, Facebook, Apple, Netflix, Epic Games, Riot Games whether existing or proposed.

 

15.       Intellectual Property and Confidential Information

 

Although it is expected that you will not create any intellectual property in your role as Chairman, you are bound by the obligations relating to confidentiality, inventions and other intellectual property set out in Schedule 1 to this letter in respect of your role as Chairman.

 

16.       Indemnification

 

16.1              On termination of your employment for any reason you shall not have any claim for breach of contract by Activision Blizzard in respect of the loss of any rights or benefits under any share option, bonus, long-term incentive plan or other profit sharing scheme operated by the any Group Company in which he may participate which would otherwise have accrued during any period of notice.

 

5

 

16.2                        Activision Blizzard agrees that it shall indemnify and hold you harmless to the fullest extent permitted by English law from and against any and all third party liabilities, costs and claims, and all expenses actually and reasonably incurred by you in connection with any acts or omissions taken within the scope of your employment (so long as such acts or omissions were consistent with your obligations to the Group), including all costs and expenses actually and reasonably incurred by you in defence of litigation and the cost of responding to internal and external enquiries, criminal investigations, and appearances before parliamentary committees and enquires, arising out of your employment or anticipated employment hereunder. Nothing outside the scope of this provision shall be covered by this indemnification, and, for clarity (and not by way of limitation), the indemnification provided herein shall not be applicable to any wilful breaches of your duties pursuant to the letter. The indemnification envisaged under this letter is in addition to Activision Blizzard’s directors’ and officers’ liability insurance.  A summary of the provisions of such directors’ and officers’ liability insurance policy shall be provided to you (for your information) if requested by you in writing.

 

16.3                        The provisions in clause 14.12.2 of your Service Agreement will remain in force only as they relate to any claims arising or made pursuant to those provisions for the period of your employment with the Company starting on the date of your Service Agreement and ending on the Commencement Date.

 

17.       Other employment provisions

 

We have both agreed to be flexible in this arrangement and recognize that you may not be required to work the specified days each month. As such we have agreed that any and all holiday will be deemed taken during each year without any additional sums or time being due by the Company. For similar reasons, our standard sick pay provisions will not apply. There are also no specific disciplinary/grievance procedures that apply to your employment and also no collective agreements.

 

18.       Former contracts of employment

 

During the Transition Period, your Service Agreement will continue to apply as modified by the section of this letter entitled “Transition period”. From 1 July 2019, your Service Agreement will no longer apply (except as described in clause 16.3) and will be completely superseded by this letter and its Schedules.

 

19.       Entire agreement

 

The terms of this letter  and its Schedules , the equity award agreements (and by incorporation any documents referenced therein), relevant provisions of the Staff Handbook and the Code of Conduct, constitute the entire agreement between you and the Company and supersedes and extinguishes all previous agreements, promises, assurances, warranties, representations and understandings between them, whether written or oral, relating to its subject matter. The provisions of this letter shall prevail if any conflict with any other provision occurs. Nothing in this letter shall limit or exclude any liability for fraud. Each party acknowledges that in entering into this agreement and signing this letter it does not rely on, and shall have no remedies in respect of, any statement, representation, assurance or warranty (whether made innocently or negligently) that is not set out in this letter.

 

20.       Contract Rights of Third Parties

 

The Contract (Rights of Third Parties) Act 1999 shall only apply to this letter in relation to any Group Company and no person other than you, the Company and any Group Company shall have any right under it.

 

21.       Choice of law and jurisdiction

 

This letter shall be governed by and interpreted in accordance with English law. The parties submit to the exclusive jurisdiction of the English courts, provided however that the Company reserves the right to apply for interim injunctive relief in respect of alleged breaches of clause 13 in any jurisdiction in which there are

 

6

 

reasonable grounds to assert that you are engaging in acts or omissions in violation of clause 13. English law would apply to such an application.

 

22.       Assignment

 

This letter and the rights and obligations hereunder shall not be assignable or transferrable by you without the prior written consent of the Company. The Company may assign this letter or all or any part of its rights and obligations under this letter at any time and following such assignment all references to the Company shall be deemed to refer to such assignee and the Company shall thereafter have no obligation under this letter. Furthermore, the Company may second you to serve as an employee of another Group Company.

 

23.       Notices

 

Any notice given under this letter shall be in writing signed by or on behalf of the party giving it and shall, unless delivered to a party personally, be hand delivered, or sent by email. A notice shall be deemed to have been served either (a) at the time of delivery if delivered personally to a party or to their specified address; or (b) simultaneously with transmission if served by email.

 

Please confirm your acceptance of these terms and changes to your Service Agreement by signing below and returning one copy to me.

 

Yours sincerely,

 

	
Signed as a deed by [Chris Walther]
    	
 
    	
I acknowledge and accept the terms of this letter, its Schedules   and changes to my Service Agreement.
    
	
/s/ Chris B. Walther
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
For and on behalf of Activision Blizzard, Inc.
    	
 
    	
Signed as a deed by Riccardo Zacconi:
    	
/s/ Riccardo Zacconi
    
	
 
    	
 
    	
In the presence of name
    	
Jessica Mansar
    
	
In the presence of name
    	
Patricia Oh
    	
 
    	
Signature:
    	
/s/ Jessica Mansar
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Patricia Oh
    	
 
    	
Occupation:
    	
Executive Assistant
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Occupation:
    	
Executive Assistant
    	
 
    	
Address:
    	
Svean, 44, 11243 Stockholm
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
3100 Ocean Park Blvd
    	
 
    	
Date:
    	
9 May 2018
    
	
 
    	
Santa Monica CA 90405
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
05/22/19
    	
 
    	
 
    	
 
    
						

 

7

 

Schedule 1

 

Intellectual Property and Confidentiality

 

1.              The following definitions shall apply to this Schedule, the letter and any other Schedules:

 

	
Words and expressions
    	
 
    	
Meaning
    
	
 
    	
 
    	
 
    
	
Board
    	
 
    	
the board of directors for the time being of Activision   Blizzard or any committee of directors appointed by the board for the   time being;
    
	
 
    	
 
    	
 
    
	
Confidential Information
    	
 
    	
(i) all information in whatever form   (including, in written, oral, visual or electronic form or on any magnetic or   optical disk or memory and wherever located) relating to the business,   products, Intellectual Property, affairs and finances of the Company or   of any Group Company and all technical data and Know-how of the Company or of   any Group Company for the time being confidential to it or to them or treated   by it or them as such; and including any trade secrets (as such term may be   construed under the laws of any relevant jurisdiction from time-to-time)   including technical data and Know-how relating to the business of the Company   or of any Group Company or any of its or their suppliers, clients, customers,   agents, distributors, shareholders or management, or other information which   is confidential, commercially sensitive and is not in the public domain   relating or belonging to the Company or any Group Company including   information relating to the business methods, corporate plans, management   systems, finances, new business opportunities, research and development   projects, marketing or sales of any past, present or future product or   service, secret formulae, processes, inventions, designs, Know-how   discoveries, technical specifications and other technical information   relating to the creation, production or supply of any past, present or future   product or service of the Company or any Group Company, lists or details of   clients, potential clients or suppliers or the arrangements made with any   client or supplier;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii) all confidential information of any third   party (including any supplier, customer, client or collaborator of the   Company or any Group Company) in the possession of the Company or any Group   Company; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii) all Intellectual Property (including for   the avoidance of doubt all copyright material and all software codes and   applications) and all data, reports, information, summaries or presentations,   created, developed, received or obtained by the Executive, wholly or   partially, in the course of the Executive’s employment whether before or   after the date hereof; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iv) all Intellectual Property (including for   the avoidance of doubt all copyright material and all software codes and   applications) and all data,
    

 

8

 

	
 
    	
 
    	
reports, information, summaries or presentations,   created, developed, received or obtained by the Executive, wholly or   partially, (whether or not during working hours and whether at the offices of   the Company or elsewhere) by use of any such information referred to in (i),   (ii) and/or (iii) above; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(v) all and any copies of any of such   information or Intellectual Property, whether made by the Executive, wholly   or partially, or any third party, referred to in (i), (ii), (iii) and/or   (iv) above;

whether or not such information or Intellectual   Property (if in anything other than oral form) is marked confidential, and   including extracts, analysis, studies, plans, compilations or any other way   of representing or recording and recalling information which contains,   reflects or is derived or generated from such Confidential Information,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PROVIDED THAT Confidential Information   shall exclude only any such part of such information as shall enter into the   public domain otherwise than by reason of any breach by the Executive of   their obligations hereunder, any breach by any other employee of Activision   Blizzard or any Group Company of any obligation of confidentiality, or by   reason of any breach by Activision Blizzard or any Group Company of any   obligation of confidentiality;
    
	
 
    	
 
    	
 
    
	
Intellectual Property
    	
 
    	
all patents, claims in patents, trade-marks and   trade names, domain names, service marks, copyright and related rights,   database rights, topography rights, rights to inventions, confidential   information (including Know-how), rights existing in any software code,   rights in get-up, goodwill shall and the right to sue for passing off, unfair   competition rights, rights in designs, rights in computer software, rights to   use and preserve the confidentiality of information (including Know-how and   trade secrets (as such term may be construed under the laws of any relevant   jurisdiction from time-to-time)) and any other intellectual property rights,   in each case whether registered or unregistered and including all   applications (or rights to apply) for and be granted, renewals or extensions   of, and rights to claim priority from, such rights and all similar or   equivalent rights or forms of protection which subsist or shall subsist now   or in the future in any part of the world;
    
	
 
    	
 
    	
 
    
	
Invention
    	
 
    	
any invention, idea, discovery, development,   improvement or innovation, whether or not patentable or capable of   registration, and whether or not recorded in any medium;
    
	
 
    	
 
    	
 
    
	
Know-how
    	
 
    	
all information not in the public domain of any   nature including ideas, discoveries, inventions, data, formulae, techniques,   procedures for experiments and tests, designs, sketches, records, information   comprising or related to concepts, methods, models, designs for experiments   and tests and results of experimentation and testing, processes,   specifications, reports, and information contained in
    

 

9

 

	
 
    	
 
    	
submissions to authorities or otherwise, and   confidential analyses and interpretations of information which is in the   public domain;
    
	
 
    	
 
    	
 
    
	
Moral Rights
    	
 
    	
all present and future moral rights which arise   under Part I Chapter IV of the Copyright Designs and Patents Act 1988   and all similar rights under existing judicial or statutory law of any   country or jurisdiction in the world, or under any treaty regardless of   whether or not such right is called or generally referred to as a “moral   right”.
    

 

2.                  Confidential Information and Group Company documents

 

2.1       Without prejudice to your common law duties, you undertake that in relation to all Confidential Information which may be within or come into your possession in connection with your employment or in the course of your employment by Activision Blizzard or which you may create, wholly or partially, during the term of your employment by Activision Blizzard, you shall:

 

2.1.1                     both during the term of your employment and thereafter without limit of time, keep the same secret and confidential; and

 

2.1.2                     not at any time for any reason whatsoever divulge, communicate or disclose or permit the same to be divulged, communicated or disclosed to any third party save as may be required in connection with the performance of their obligations in the course of their employment, unless any company in the Group has (i) given the Executive its written consent to do so, and (ii) obtained from the recipient third party appropriate obligations of confidentiality in respect of such of the Confidential Information disclosed and shall use your best endeavours to prevent any such disclosure of any Confidential Information to any third party;

 

2.1.3                     use the same only as may be required in the proper performance of your obligations in the course of their employment;

 

2.1.4                     unless expressly authorised by Activision Blizzard, not remove any Confidential Information from any Group Company premises and shall not store any Confidential Information on any computer network outside the sole control of the Company or accessible by any third party without Activision Blizzard’s authorization, and not make or use any copies of any Confidential Information;

 

2.1.5                     immediately upon termination of your employment (howsoever caused or arising) deliver up to Activision Blizzard all Confidential Information within their possession and in the event that you may have been authorised under Clause 2.1.4 to store (or may have stored without such authorisation) any Confidential Information on any external computer or on any magnetic or optical disk or memory, including personal computer networks, personal e-mail accounts or personal accounts on websites, and all matter derived from such sources which is in their possession or under your control outside any Group Company’s premises, shall certify in writing that no copies thereof, capable of electronic retrieval in any manner remain on such computer;

 

2.1.6                     at any time during the course of your employment and thereafter without limit in time, promptly upon receipt of a written request from Activision Blizzard, deliver up to Activision Blizzard such part of any Confidential Information in your possession as may be specified in any such request;

 

2.1.7                     not use any Confidential Information for their own purposes or for any purposes other than those of the Company or any Group Company; and

 

10

 

2.1.8                     through any failure to exercise due care and diligence, shall not permit or cause any unauthorised disclosure of any Confidential Information.

 

2.2       You acknowledge that all books, notes, memoranda, records, lists of customers and suppliers and employees, correspondence, documents, computer and other discs and tapes, data listings, codes, designs and drawings and other documents and material whatsoever (whether made or created by you, wholly or partially, or otherwise) relating to the business of the Company or any Group Company (and any copies of the same) shall be Confidential Information for all purposes under the Agreement; and

 

2.2.1                     all such material containing Confidential Information shall be and remain the property of the Company or the relevant Group Company; and

 

2.2.2                     all Confidential Information shall be handed over by you to Activision Blizzard or to the relevant Group Company on demand and in any event on the termination of your employment and you shall certify that all such property has been handed over on request by the Board and agree that they shall take all reasonable steps to prevent the disclosure of the same and you shall provide a signed statement that they have complied fully with their obligations under this Clause 2.

 

2.3       You shall be responsible for protecting the confidentiality of the Confidential Information and shall:

 

2.3.1                     use your reasonable endeavours to prevent the use or communication of any Confidential Information by any person, company or organisation (except in the proper course of your duties, as required by law or as authorised by Activision Blizzard); and

 

2.3.2                     inform Activision Blizzard immediately on becoming aware, or suspecting, that any such person, company or organisation knows or has used any Confidential Information.

 

2.4       The foregoing obligations in this clause 2 shall not prevent you from disclosing information where required to do so by a competent court, regulatory authority or under the rules of a relevant stock exchange, provided that where legally permitted you shall provide Activision Blizzard with written notice of such request so that Activision Blizzard may take such action as it deems reasonably necessary to limit or contest such disclosure with the party making such request.

 

2.5       You may also disclose Confidential Information to his professional advisers who are bound by duties of confidentiality (a) for the purpose of you being able to seek legal advice or (b) in order to enforce his legal rights hereunder.

 

3.              Inventions and other Intellectual Property

 

3.1           You acknowledge that all Intellectual Property and Confidential Information, of any nature made, originated or developed, wholly or partially, by you at any time in the course of your employment with Activision Blizzard (whether or not made, originated or developed during working hours or using employer premises or resources, whether or not recorded in material form, and whether before or after the date of the this letter) and all materials embodying them (“Works”) shall automatically belong to and vest in the sole and exclusive ownership of the Company absolutely to the fullest extent permitted by law, and to the extent they do not vest in the Company automatically, you shall hold for the benefit of the Company on trust all such Works  until the same are vested absolutely in the Company.

 

3.2           For the avoidance of doubt, you acknowledge that any Intellectual Property or Confidential Information made, originated or developed, wholly or partially, by you at any time, shall be deemed made, originated or developed in the course of your employment and shall be Works for all purposes in this Clause 3.

 

11

 

3.3           You acknowledge that, for the purpose of Section 39 of the Patents Act 1977 (as amended) or otherwise, because of the nature of your duties and the particular responsibilities arising from the nature of your duties they have and at all times in the course of your employment with Activision Blizzard shall have a special obligation to further the interests of the undertakings of Activision Blizzard and of any Group Company.

 

3.4           You undertake: (i) to notify and disclose to Activision Blizzard in writing full details of all Works promptly upon creation, whether or not in material form, (ii) (without prejudice to the provisions of Clause 3.1) to promptly whenever requested by Activision Blizzard and in any event upon the termination of your employment to give to Activision Blizzard all originals and copies of correspondence, documents, papers, data, information, materials and records on all media which record or relate to any Works.  For the avoidance of doubt all such originals and copies shall be Confidential Information for all purposes under the Agreement; and (iii) not to attempt to register any Works nor patent any Works unless requested to do so by Activision Blizzard; and (iv) to keep confidential the Works unless Activision Blizzard has consented in writing to their disclosure by you.

 

3.5           You acknowledge that save as provided by law no remuneration or compensation in addition to that payable under the terms of the letter is or may become due to them in respect of our compliance with this Schedule, the terms of the letter or by statute. This clause is without prejudice to your rights under the Patents Act 1977.

 

3.6           You shall, at the reasonable expense of Activision Blizzard, execute all such documents, make such applications, give such assistance and do such acts and things (if any) in the course of and after your employment with Activision Blizzard as may, in the reasonable opinion of Activision Blizzard, be necessary and desirable to vest all rights in the Works in the Company (or if required by it in any Group Company) and to enable Activision Blizzard to: (i) obtain registered protection in respect of any of the Works in the name of the Company (or if required by Activision Blizzard in any Group Company) (in the United Kingdom or elsewhere throughout the world); and (ii) otherwise to protect, maintain and enforce  all rights in the Works for the benefit of the Company and/or any such Group Company. Such documents may, at Activision Blizzard’s request, include waivers of all and any statutory Moral Rights relating to any copyright works which form part of the Works.

 

3.7           To the extent that by law any Intellectual Property of any nature made, originated or developed by you at any time during the term of your employment since the continuous service date specified in clause 2 of the letter (whether or not made, originated or developed during normal working hours and whether before or after the date of the Agreement) which relates to the business of Activision Blizzard/any Group Company and which might be used or exploited in the business of Activision Blizzard (“Employee Works”) do not vest in or belong to the Company as Works under Clause 3.1 of this Schedule you agree promptly on any Employee Works coming into existence to notify the Company in writing with details of such Employee Works and with such notice to offer to Activision Blizzard a right of first refusal to acquire the same on arm’s length market terms to be negotiated in good faith and agreed by you and Activision Blizzard within 60 days of the date of such notice and in the absence of such agreement within such 60 day period; you may offer the Employee Works for sale to a third party, or, you and Activision Blizzard may agree that such arm’s length market terms shall be referred to an independent expert (“Expert”) agreed by the parties or failing agreement such Expert to be appointed by the President of the British Computer Society (www.bcs.org.uk) (whose decision shall, in the absence of manifest error be final and binding on the parties and whose costs shall be borne by Activision Blizzard unless otherwise determined by such Expert). The parties shall be entitled to make submissions to the Expert and shall provide (or procure that others provide) the Expert with such assistance and documents as the Expert reasonably requires for the purpose of reaching a decision. You acknowledge and agree that all information and Know-how relating to any Employee Works shall be deemed Confidential Information until such time as you are entitled to offer them for sale as permitted hereunder, save that the information and Know-how may be disclosed to the Expert as set out above.

 

12

 

3.8           You acknowledge and agree that any Employee Works that are protectable by copyright are considered to be works made during the course of your employment with Activision Blizzard within the meaning of the Copyright, Design and Patents Act 1988 (“Employment Created Works”). In the event that any rights to the Employment Created Works are deemed not to be works made in the course of your employment, or in the event that you should, by operation of law be deemed to retain any rights to the Employment Created Works, you irrevocably assign, without any further consideration and regardless of any use by the Company or any Group Company of any such Employment Created Work, all of their rights, title and interest, if any, in and to such Employment Created Works to King.com Limited (or its successors or assigns), as the owner of all rights to the Employment Created Works and any derivative works of such Employment Created Works and to use, reproduce, publish, print, copy, create derivative works of, market, advertise, distribute, transfer, license, sell, publicly perform and publicly display and otherwise exploit by all means now known or later developed, such Employment Created Works and derivative works anywhere throughout the world. You hereby waive all Moral Rights in the Employment Created Works and agrees not to assert such rights against any Group Company, any Group Company’s assignees, successors in title or licensees, or any other third party, and not to support, maintain or permit any claim for infringement of Moral Rights in the Employment Created Works, such waiver being effective upon the creation of such Employment Created Works. By signing this letter, which incorporates this Schedule you expressly acknowledge that products derived from or services using all or any part of the Employment Created Works may be the result of many parties’ contributions. If this waiver of Moral Rights is not effective, you agree to exercise such Moral Rights in a manner that recognises the contribution of, and shall not have a material adverse effect upon, such third parties.  Nothing in this clause 3.8 will prevent you from identifying any Employment Created Works or any derivative works which are in the public domain as being your work.

 

4.                  Maintenance of records

 

You agree to keep and maintain reasonable records of all Inventions made, originated or developed, wholly or partially, by them at any time in the course of your employment with Activision Blizzard (including in the form of notes, sketches, computer code and drawings as may be specified by the Group), which shall be available to and remain the sole property of the relevant Group Company (as determined by Activision Blizzard) at all times.

 

5.              Breach of the obligations in this Schedule

 

A breach of any of the provisions of this Schedule by you shall be considered to be a fundamental breach of the Agreement and the Executive may, at Activision Blizzard’s absolute discretion, be liable to disciplinary action including termination of your employment.

 

13

 

Schedule 2

 

Current Approved Investments and Outside Interests

 

TBC

 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}]]