Document:

Exhibit 10.12

 

Activision Blizzard, Inc.

 

Non-Employee Director Compensation Program

 

As Adopted on July 17, 2008

 

 

	
  Cash Compensation

  	
   

  	
  Annual
  Retainers:

   

  ·      Board
  Member - $50,000

  ·      Chairman
  of the Audit Committee - $25,000

  ·      Chairman
  of the Compensation Committee - $20,000

  ·      Chairman
  of the Nominating and Corporate Governance Committee - $15,000

  ·      Audit
  Committee Member - $10,000

  ·      Compensation
  Committee Member - $5,000

  ·      Nominating
  and Corporate Governance Committee Member - $5,000

   

  Meeting
  Fees:

   

  ·      For each board or committee meeting
  attended in person or by telephone - $3,000

   

  Special
  Assignment Fees

   

  ·      Per day for special assignments required
  in connection with board duties (including, without limitation,
  litigation-related matters, but excluding days on which a director is
  required to travel to attend meetings) - $5,000

   

  Payment
  Terms

   

  ·      All
  cash retainers will generally be paid in arrears in equal quarterly
  installments no later than the 60th day following the last date of
  the applicable quarter; provided, however, that in no event shall fees be paid later than
  the date that is 21⁄2 months following the last date of the Company’s fiscal
  year for which the retainer relates.

  ·      Meeting
  Fees and Special Assignment Fees will generally be paid in arrears in equal
  quarterly installments no later than the 60th day following the
  last date of the applicable quarter; provided, however, that in no event shall fees be paid later than
  the date that is 21⁄2 months following the last date of the Company’s fiscal
  year for which the retainer relates.

  ·      Fees
  will be prorated for partial years of service, with partial months of service
  credited for full months.  

   

  
	
  Stock Options

  	
   

  	
  New
  Appointment/Election Option Grant

  ·      Each newly elected or appointed
  non-employee director will receive a grant of 20,000 stock options upon
  initial election or appointment to the Board.

   

  Annual
  Option Grant

   

  ·      Each non-employee director will receive an annual grant of
  10,000 stock options on July 21, 2008 and, commencing in 2009, annually
  upon 

   

  

1

 

	
   

  	
   

  	
  re-election to the Board.

   

  Tenth
  Year Option Grant

   

  ·      In the
  year that a non-employee director completes ten continuous years of service
  on the Board, the director will receive a grant of 20,000 stock options.

  ·      The
  tenth year grant is in lieu of the annual grant for the applicable year.

   

  Grant
  Date

   

  ·      Beginning
  in 2009, option grants will be made three business days following the date of
  the first board meeting immediately following the annual meeting of
  stockholders.

  ·      The
  exercise price of the options will equal the closing price of the Company’s
  common stock as quoted on the NASDAQ National Market on the date of grant.

   

  Vesting

   

  ·      All
  option grants will vest ratably every three months over the one-year period
  from the date of grant.

  ·      Initial
  and “Tenth-Year” option grants will vest ratably every three months over the
  two-year period from the date of grant.

  ·      A
  director must be in continuous active service on each applicable vesting date
  and vesting will cease upon a termination of service; provided,
  however, that vesting will accelerate upon a director’s death or
  termination due to Disability (as defined in Section 22(e)(3) of
  the Internal Revenue Code)

   

  Term

   

  ·      Options
  will expire on the 10th anniversary of the date of grant.

  ·      For so
  long as director remains in continuous service, all options may be exercised
  by the director through the 10th anniversary of grant.

  ·      Upon a
  cessation of service for any reason other than for cause, vested options will
  remain exercisable until the earlier of (i) the 1st anniversary of the
  date of death or cessation of service and (ii) the 10th
  anniversary of grant.

   

  Change
  of Control

   

  ·      In the
  event that the director ceases to serve as a member of the Board of Directors
  pursuant to the terms of any business combination or similar transaction
  involving the Company, the options will immediately vest and will remain
  exercisable until the earlier of (i) the 1st anniversary of
  the date of the director’s cessation of service and (ii) the original
  expiration date.

   

  Award
  Agreement

   

  ·      Options
  will be granted pursuant to the Company’s 2007 Incentive Plan and will be
  subject to the terms of the applicable non-employee director stock option
  agreement as in effect at the time of grant. 
  

   

  
	
  Restricted Stock Units

  	
   

  	
  New
  Appointment/Election RSU Grant

  ·      Each newly elected or appointed non-employee director will
  receive a grant 

  

 

2

 

	
   

  	
   

  	
  of
  10,000 RSUs upon initial election or appointment to the Board.

   

  Annual
  RSU Grant

   

  ·      Each non-employee director will receive
  an annual grant of 5,000 RSUs on July 21, 2008 and, commencing in 2009,
  annually upon re-election to the Board.

   

  Tenth
  Year RSU Grant

   

  ·      In the
  year that a non-employee director completes 10 continuous years of service on
  the Board, the director will receive a grant of 10,000 RSUs.

  ·      The
  tenth year grant is in lieu of the annual grant for the applicable year.

   

  Grant
  Date

   

  ·      Beginning
  in 2009, RSU grants will be made three business days following the date of
  the first Board meeting immediately following the annual meeting of
  stockholders.

   

  Vesting

   

  ·      All
  annual RSUs will vest ratably every three months over the one-year period
  from the date of grant.

  ·      Initial
  and “Tenth-Year” RSU grants will vest ratably every three months over the
  two-year period from the date of grant.

  ·      A
  director must be in continuous active service on each applicable vesting
  date.

  ·      Vesting
  will accelerate on the date of a director’s cessation of service due to death
  or Disability.

   

  Settlement

   

  ·      Vested
  RSUs will settle for shares of the Company’s common stock no later than 30
  days following the 1st anniversary of the grant date.

  ·      50%
  percent of the Initial and “Tenth-Year” RSU grants will settle no later than
  30 days following each of the 1st and 2nd anniversaries
  of the date of grant, to the extent vested.

   

  Change
  of Control

   

  ·      In the
  event that the director ceases to serve as a member of the Board of Directors
  pursuant to the terms of any business combination or similar transaction
  involving the Company, the RSUs will immediately vest and settle as of the
  date on which the business combination or similar transaction is consummated.

   

  Dividend
  Equivalents

   

  ·      To the
  extent dividends are paid on the Company’s common stock, dividend equivalents
  will be paid on RSUs prior to settlement, no later than the 45th
  date following the last date of the Company’s fiscal year in which the
  dividends are paid.

   

  

3

 

	
   

  	
   

  	
  Award
  Agreement

   

  ·      RSUs
  will be granted pursuant to the Company’s 2007 Incentive Plan and will be
  subject to the terms of the applicable non-employee director stock RSU
  agreement as in effect at the time of grant. 
  

  
	
  Expenses

  	
   

  	
  Directors receive
  reimbursement of business and travel expenses from time to time in accordance
  with Company policy.

  
	
   

  	
   

  	
   

  
	
  Perquisites

  	
   

  	
  Directors do not receive perquisites.  

  
	
   

  	
   

  	
   

  
	
  Employee Directors/

  Employees of Majority
  Shareholder 

  	
   

  	
  ·      Employee
  directors will not be entitled to compensation as a director.

  ·      Unless
  otherwise determined by the Board of Directors or set forth in the Company’s
  bylaws, directors who are employees of a majority shareholder or its
  affiliates and subsidiaries will not be entitled to compensation as a
  director.

   

  
	
  Plan Administration

  	
   

  	
  The human resources and
  the legal departments will administer the non-employee directors’
  compensation program.

  
	
  Other

  	
   

  	
  ·      Directors
  are required to own shares with a value at least three times the annual cash
  board retainer within four years of their initial election.

  ·      This
  requirement is expected to be incorporated into the corporate governance
  guidelines.

  

 

4Exhibit 10.15

 

AMENDMENT NO. 1 TO CREDIT AGREEMENT

 

AMENDMENT NO. 1 dated as of July 8, 2008 (this “Amendment”) to the
Credit Agreement dated as of April 29,
2008 (the “Credit Agreement”) between
ACTIVISION, INC., a Delaware corporation (to be re-named Activision Blizzard, Inc.
after consummation of the Transactions) (the “Borrower”),
and VIVENDI S.A., a societé anonyme organized under the laws of France (the “Lender”).  Terms defined in the Credit Agreement and not
otherwise defined herein are used herein as therein defined.

 

Section 1.               Amendments to the Credit
Agreement.  As of the Effective Date
(as defined below):

 

(a)   Section 1.01 [Definitions]
is hereby amended by amending and restating the following definitions to read
in their entireties as follows:

 

“Tranche A Commitment
Termination Date” shall mean the date that is seven Business Days
following the scheduled or expected expiration date of the Tender Offer, if the
Tranche A Loan has not been made on or prior to such date, or if such date
is not a Business Day, the immediately preceding Business Day.

 

“Tranche B Commitment”
shall mean the commitment of the Lender to make a Tranche B Loan
hereunder. The aggregate amount of the Lender’s Tranche B Commitment is
the lesser of (1) the aggregate principal amount outstanding under the
Vivendi Games Facility on the Closing Date, immediately prior to the
consummation of the Transactions, or (2) $150.0 million.

 

“Tranche B Commitment
Termination Date” shall mean the earlier of (a) the date on
which the Business Combination Agreement terminates in accordance with its
terms, if such termination occurs prior to the Closing Date and (b) the
Tranche A Commitment Termination Date.

 

(b)   Section 1.01 [Definitions]
is hereby amended by inserting the following new definition among the existing
definitions set forth in Section 1.01 in appropriate alphabetical order:

 

“Aggregate Required Offer Consideration” shall have the meaning assigned to such term in
the Business Combination Agreement.

 

“Available
Cash on the Tender Offer Closing Date” means the aggregate amount of unrestricted
cash and Cash Equivalents of the Borrower and its Subsidiaries (to the extent,
in the case of cash and Cash Equivalents held by the Borrower’s Subsidiaries
that are not incorporated or otherwise organized under a political subdivision
of the United States of America, that such cash and Cash Equivalents could be
transferred to the Borrower without the incurrence of United States federal
income tax in respect of the earnings and profits of such Subsidiaries
(including, without limitation, by repayment of loans or other obligations
owing by such Subsidiaries to the Borrower or a domestic Subsidiary of the
Borrower)) on the Tender Offer Closing Date (including, without limitation,
cash proceeds of issuance and sale by the Borrower of shares of its capital
stock to Vivendi S.A. (or a Subsidiary of Vivendi S.A. other than the Borrower
and its Subsidiaries) on the Tender Offer Closing Date; but excluding cash
proceeds of funding of the Tranche A Loan, the Tranche B Loan or any Revolving
Loan).

 

(c)   Section 2.01 [Commitments]
is hereby amended by amending and restating Section 2.01(b) to read
in its entirety as follows:

 

 

(b)           to make a Tranche B Loan to the
Borrower on or before the Tranche B Commitment Termination Date in the
principal amount not to exceed its Tranche B Commitment; and

 

(d)   Section 2.07 [Termination and Reduction of
Commitments] is
hereby amended by amending and restating Section 2.07(a) to read in
its entirety as follows:

 

(a)         Termination of
Commitments.  The Tranche A
Commitment and the Tranche B Commitment both shall terminate automatically at
5:00 p.m., New York City time, on the Tender Offer Closing Date.  The Revolving Commitment shall terminate
automatically on the Revolving Maturity Date. 
Notwithstanding the foregoing, all the Commitments shall terminate
automatically on the date on which the Business Combination Agreement
terminates in accordance with its terms, if such termination occurs prior to
the Closing Date.

 

(e)   Section 3.12 [Use of Proceeds]
is hereby amended and restated to read in its entirety as follows:

 

3.12         Use of
Proceeds. 
The Borrower will use the proceeds of (a) the Tranche A Loan solely
to consummate the Tender Offer and to pay related fees and expenses, (b) the
Tranche B Loan solely to repay Indebtedness outstanding under the Vivendi Games
Facility and, to the extent Indebtedness under the Vivendi Games Facility was
repaid prior to the Tranche B Loan Funding Date, to pay that portion of the
Tender Offer Consideration calculated pursuant to Section 4.03(c)(ii)(B),
and to pay related fees and expenses, and (c) the Revolving Loans for
general corporate purposes.

 

(f)    Section 4.03 [Conditions to the Tranche B Loan]  is hereby amended by amending and restating Section
4.03(b) to read in its entirety as follows:

 

(b)        Vivendi
Games Facility Repayment Date.  On or prior to the date of the
funding of the Tranche B Loan, all Indebtedness outstanding under the Vivendi
Games Facility shall, with the proceeds of the Tranche B Loan or with funds
otherwise available to the Borrower, be paid off in full, all other obligations
of the borrower thereunder shall be satisfied (other than contingent indemnity
obligations that survive the repayment of such Indebtedness and the termination
of the lending commitments thereunder) and all lending commitments of the
lender thereunder terminated; and

 

(g)   Section 4.03 [Conditions to the Tranche B Loan]  is hereby further amended by inserting at the
end thereof a new Section 4.03(c), which shall read in its entirety as
follows:

 

(c)         Maximum
Amount of Tranche B Loan.  The
requested amount of the Tranche B Loan shall not exceed (i) the maximum amount of the Tranche B Commitment or (ii) the
sum of (A) the aggregate principal amount of Indebtedness outstanding
under the Vivendi Games Facility on the Tranche B Funding Date, plus (B) the
amount, if any, by which (x) the Aggregate Required Offer Consideration
certified pursuant to Section 4.02(d)(B) exceeds (y) Available
Cash on the Tender Offer Closing Date.

 

(h)   Section 5.07 [Use of Proceeds]
is hereby amended and restated to read in its entirety as follows:

 

 

5.07               Use
of Proceeds. 
Use the proceeds of (i) the Tranche A Loan for the purposes of
financing directly or indirectly a portion of the Tender Offer Consideration
(as defined in the Business Combination Agreement) and to pay related fees and
expenses, (ii) the Tranche B Loan to repay Indebtedness outstanding under
the Vivendi Games Facility and, to the extent Indebtedness under the Vivendi
Games Facility was repaid prior to the Tranche B Loan Funding Date, to pay that
portion of the Tender Offer Consideration calculated pursuant to Section 4.03(c)(ii)(B),
and to pay related fees and expenses, and (iii) the Revolving Loans for
general corporate purposes.

 

Section 2.               Conditions to Effectiveness.  This Amendment shall become effective as of the date (the “Effective Date”) on
which each of the following conditions precedent shall have been satisfied:

 

(a)           Execution and delivery. The Lender and the Borrower each shall have
executed and delivered a duly executed counterpart of this Amendment.

 

(b)           Representations and
Warranties; No Defaults.  The Lender shall have received a certificate
of the Borrower certifying that both before and after giving effect to this
Amendment:

 

(i)            each of the representations and warranties
set forth in Article III
[Representations and Warranties] of the Credit Agreement and in the
other Loan Documents shall be true and correct in all material respects on and
as of the Effective Date with the same effect as though made on and as of such
date, except to the extent such representations and warranties expressly relate
to an earlier date, in which case such representations and warranties shall
have been true and correct as of such earlier date; provided, however, that references therein to the Credit
Agreement shall be deemed to refer to the Credit Agreement as amended by this
Amendment; and

 

(ii)           no Default or Event of Default shall have occurred and be continuing,
either on the date hereof or on the Effective Date.

 

Section 3.               Representations and Warranties.  The
Borrower hereby represents and warrants to the Lender as follows:

 

(a)           The execution, delivery and performance by
the Borrower of this Amendment have been duly authorized by all requisite
corporate action on the part of the Borrower and will not violate its
certificate of incorporation or bylaws.

 

(b)           This Amendment has been duly executed and
delivered by the Borrower, and the Credit Agreement as amended hereby
constitutes the legal, valid and binding obligation of the Borrower,
enforceable against the Borrower in accordance with their terms, except as the
enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization and other similar laws relating to or affecting creditors’
rights generally and by the application of general equitable principles
(whether considered in proceedings at law or in equity).

 

(c)           (i) Each of the representations and
warranties made by the Borrower in the Credit Agreement, as amended hereby, and
the other Loan Documents, is true and correct in all material respects as of
the Effective Date (other than representations and warranties in any such Loan
Document that expressly speak as of an earlier date, which shall have been true
and correct in all material respects as of such earlier date) and (ii) no
Default or Event of Default has occurred and is continuing.

 

 

Section 4.               Reference to and Effect on the Loan Documents.

 

(a)           As of the Effective Date, each reference in
the Credit Agreement and the other Loan Documents to “this Agreement,” “hereunder,” “hereof,” “herein”
or words of like import shall mean and be a reference to the Credit Agreement
or such other Loan Document as amended by this Amendment, and this Amendment
and the Credit Agreement shall be read together and construed as a single
instrument.

 

(b)           Except to the extent expressly amended
hereby, the Credit Agreement and all of the other Loan Documents are and shall
remain in full force and effect and are hereby ratified and confirmed.

 

Section 5.               Governing Law.  This
Amendment and the rights and obligations of the parties hereto shall be
governed by, and construed and interpreted in accordance with, the laws of the
State of New York.

 

Section 6.               Headings.  Section headings in this
Amendment are included herein for convenience of reference only and shall not
constitute a part of this Amendment for any other purposes.

 

Section 7.               Execution in Counterparts.  This
Amendment may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute
one and the same instrument.  Receipt by
either party hereto of a facsimile copy of an executed signature page hereof
shall constitute receipt by it of an executed counterpart of this Amendment.

 

Section 8.               Waiver of Jury Trial.  Each
party hereto irrevocably waives trial by jury in any action or proceeding with
respect to this Amendment or any other Loan Document.

 

[SIGNATURE PAGE FOLLOWS]

 

 

IN WITNESS WHEREOF, this Amendment has been duly
executed on the date first set forth above.

 

 

	
   

  	
  ACTIVISION,
  INC.,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert A. Kotick

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:  Robert A.
  Kotick

  
	
   

  	
   

  	
  Title:  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VIVENDI
  S.A.

  
	
   

  	
  as Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jean-Bernard Lévy

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:  Jean-Bernard
  Lévy

  
	
   

  	
   

  	
  Title:  Chairman of the Management Board

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