Document:

Exhibit 10.2

 

AMENDMENT NUMBER 3 TO 

RECEIVABLES PURCHASE AGREEMENT

 

THIS AMENDMENT NUMBER 3 TO RECEIVABLES PURCHASE AGREEMENT, dated as of March 30,
2010 (this “Amendment”), is entered into
by and among FOUNTAIN CITY FINANCE, LLC, a Delaware limited liability company
(the “Seller”), ENTERPRISE
FUNDING COMPANY LLC, a Delaware limited liability company (“Enterprise Funding”), as an
Investor, BANK OF AMERICA, NATIONAL ASSOCIATION, a national banking association
(“Bank of America”), as a
Bank and as the agent (the “Agent”) for
the Investors and the Banks, DST SYSTEMS, INC., a Delaware corporation (“DST Systems”), as the Parent and the
Servicer, and each of the parties named on Schedule I hereto as
Originators.  Capitalized terms used and
not otherwise defined herein are used as defined in the Receivables Purchase
Agreement (as defined below).

 

WHEREAS,
the parties hereto entered into that certain Receivables Purchase Agreement,
dated as of May 21, 2009 (as amended through the date hereof, the “Receivables Purchase Agreement”);

 

WHEREAS,
the parties hereto desire to amend the Receivables Purchase Agreement in
certain respects as provided herein;

 

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

 

SECTION 1.           Amendments.  Effective as of the Effective Date (as
defined below), the following amendments are made to the Receivables Purchase
Agreement:

 

(a)           The definition of “Purchase Limit” in
Section 1.01 of the Receivables Purchase Agreement is hereby amended by
deleting, in its entirety, the date “March 31, 2010” therein and
replacing, in its entirety, such date with “April 30, 2010”.

 

(b)           Section 2.01(e)(ii) of the
Receivables Purchase Agreement is hereby amended by deleting, in its entirety,
each reference to the date “March 31, 2010” and replacing, in its
entirety, each such reference with “April 30, 2010”.

 

SECTION 2.           Effective Date.  This Amendment shall become effective as of the date (the “Effective Date”)
that the Agent
shall have received counterparts hereof duly executed by each of the parties
hereto.

 

SECTION 3.           Miscellaneous.

 

(a)           References in Receivables Purchase
Agreement.  Upon the effectiveness of
this Amendment, each reference in the Receivables Purchase Agreement to “this
Agreement”, “hereunder”, “hereof”, “herein”, or words of like import shall mean
and be a reference to the 

 

 

Receivables Purchase Agreement
as amended hereby, and each reference to the Receivables Purchase Agreement in
any other Transaction Document or any other document, instrument or agreement,
executed and/or delivered in connection with any Transaction Document shall
mean and be a reference to the Receivables Purchase Agreement as amended
hereby.

 

(b)           Effect
on Receivables Purchase Agreement.  Except as specifically amended hereby, the Receivables Purchase Agreement shall
remain in full force and effect.  This
Amendment shall not constitute a novation of the Receivables Purchase Agreement, but shall constitute an amendment
thereof.

 

(c)           No
Waiver.  The execution, delivery and
effectiveness of this Amendment shall not operate as a waiver of any right,
power or remedy of any Person under the Receivables
Purchase Agreement or any other document, instrument or agreement
executed in connection therewith, nor constitute a waiver of any provision
contained therein.

 

(d)           Fees
and Expenses.  The Seller and DST
Systems agree to pay all costs, fees, and expenses (including, without
limitation, reasonable attorneys’ fees and time charges of attorneys) incurred
by the Agent and/or the Investor in connection with the preparation, execution
and enforcement of this Amendment.

 

(e)           Successors
and Assigns.  This Amendment shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective successors and assigns.

 

(f)            Counterparts.  This
Amendment may be executed in any number of counterparts, and by the different
parties hereto on the same or separate counterparts, each of which shall be
deemed to be an original instrument but all of which together shall constitute
one and the same agreement.  Delivery of
an executed counterpart of a signature page by facsimile or other
electronic means shall be effective as delivery of a manually executed
counterpart of this Amendment.

 

(g)           Headings.  The descriptive headings of the various
sections of this Amendment are inserted for convenience of reference only and
shall not be deemed to affect the meaning or construction of any of the
provisions hereof.

 

(h)           Amendments.  This Amendment may not be amended or otherwise
modified except as provided in the Receivables Purchase Agreement.

 

(i)            GOVERNING LAW.  THIS
AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK (WITHOUT REFERENCE TO THE CONFLICTS OF LAW PRINCIPLES THEREOF
OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

[Signature pages follow]

 

2

 

IN WITNESS WHEREOF, the parties
hereto have caused this Amendment to be executed and delivered by their duly
authorized officers as of the date hereof.

 

	
  SELLER:

  	
  FOUNTAIN
  CITY FINANCE, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PARENT:

  	
  DST SYSTEMS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice President, CFO and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SERVICER:

  	
  DST SYSTEMS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President, CFO and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ORIGINATORS:

  	
  DST
  SYSTEMS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President, CFO and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DST HEALTH SOLUTIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DST OUTPUT, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President, Asst. Sec. and Treasurer

  

 

[Signature Page to
Amendment 3 to Receivables Purchase Agreement - DST Systems]

 

 

	
   

  	
  DST OUTPUT CENTRAL, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President, Asst. Sec. and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DST OUTPUT EAST, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President, Asst. Sec. and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DST OUTPUT WEST, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President, Asst. Sec. and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DST OUTPUT GRAPHICS, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President, Asst. Sec. and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DST TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DST STOCK TRANSFER, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President and Treasurer

  

 

[Signature Page to
Amendment 3 to Receivables Purchase Agreement - DST Systems]

 

 

	
   

  	
  DST GLOBAL SOLUTIONS NORTH AMERICA LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DST HEALTH SOLUTIONS, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DST MAILING SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President and Assistant Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ISPACE SOFTWARE TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ARGUS HEALTH SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DST DIRECT, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President, Asst. Sec. and Treasurer

  

 

[Signature Page to
Amendment 3 to Receivables Purchase Agreement - DST Systems]

 

 

	
   

  	
  DST OUTPUT ELECTRONIC SOLUTIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President, Asst. Sec. and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DST TASS, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President, Asst. Sec. and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DST WORLDWIDE SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DSTI MOSIKI, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DST RETIREMENT SOLUTIONS, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth V. Hager

  
	
   

  	
   

  	
  Name: Kenneth V. Hager

  
	
   

  	
   

  	
  Title:   Vice
  President and Treasurer

  

 

[Signature Page to
Amendment 3 to Receivables Purchase Agreement - DST Systems]

 

 

	
  INVESTOR:

  	
  ENTERPRISE
  FUNDING COMPANY LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Bernard J. Angelo

  
	
   

  	
   

  	
  Name:
  Bernard J. Angelo

  
	
   

  	
   

  	
  Title:   Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AGENT:

  	
  BANK
  OF AMERICA, NATIONAL ASSOCIATION,

  
	
   

  	
  as
  Agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeremy Grubb

  
	
   

  	
   

  	
  Name:
  Jeremy Grubb

  
	
   

  	
   

  	
  Title:   Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BANK:

  	
  BANK
  OF AMERICA, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeremy Grubb

  
	
   

  	
   

  	
  Name:
  Jeremy Grubb

  
	
   

  	
   

  	
  Title:   Vice President

  

 

[Signature Page to
Amendment 3 to Receivables Purchase Agreement]

 

 

SCHEDULE I

 

Originators:

 

DST
Systems, Inc.

 

DST
Output, LLC

 

DST
Output Central, LLC

 

DST
Output East, LLC

 

DST
Output West, LLC

 

DST
Output Graphics, LLC

 

DST
Technologies, Inc.

 

DST
Stock Transfer, Inc.

 

DST
Mailing Services, Inc.

 

DST
Output Electronic Solutions, Inc.

 

DST
Worldwide Services, LLC

 

DST
Retirement Solutions, LLC

 

Argus
Health Systems, Inc.

 

DST
Direct, LLC

 

DST
Health Solutions, Inc.

 

DST
Heath Solutions, LLC

 

DST
Global Solutions North America Ltd. (f/k/a DST International North America Ltd.)

 

DSTi
Mosiki, LLC

 

iSpace
Software Technologies, Inc.

 

DST
TASS, LLCExhibit
10.1

 

AMENDED
AND RESTATED ACTIVISION BLIZZARD, INC.

 

2008
INCENTIVE PLAN

 

NOTICE OF STOCK OPTION AWARD

 

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

 

·                  Your
name:  Thomas
Tippl

 

·                  Total
number of Shares purchasable upon exercise of the Stock Option awarded:  525,000

 

·                  Exercise Price:  US$10.89 per Share

 

·                  Date
of Grant:  May 10, 2010

 

·                  Expiration
Date:  May 10,
2020

 

·                  Grant
ID:  08003660

 

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

 

·                  this Notice of Stock Option Award;

 

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

 

·                  the Company’s Amended and Restated 2008 Incentive Plan, the receipt of a copy of which you hereby
acknowledge.

 

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

 

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

 

Schedule for Vesting

 

	
  Date of Vesting

  	
   

  	
  No. of Shares

  Vesting at Vesting

  Date

  	
   

  	
  Cumulative No. of

  Shares Vested at

  Vesting Date

  	
   

  
	
  February 15,
  2011

  	
   

  	
  131,250

  	
   

  	
  131,250

  	
   

  
	
  February 15,
  2012

  	
   

  	
  131,250

  	
   

  	
  262,500

  	
   

  
	
  February 15,
  2013

  	
   

  	
  131,250

  	
   

  	
  393,750

  	
   

  
	
  February 15,
  2014

  	
   

  	
  131,250

  	
   

  	
  525,000

  	
   

  

 

 

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

 

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

 

·                  Please return the signed Notice of
Stock Option Award to the Company at:

 

Activision Blizzard, Inc.

3100 Ocean Park Boulevard

Santa Monica, CA  90405

Attn:  Stock Plan Administration

 

You should retain the enclosed duplicate copy of
this Notice of Stock Option Award for your records.

 

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

 

	
   

  	
   

  	
  ACTIVISION BLIZZARD, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Ann E Weiser

  
	
   

  	
   

  	
  Ann E. Weiser

  
	
   

  	
   

  	
  Chief Human Resources Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  August 5, 2010

  
	
   

  	
   

  	
   

  
	
  ACCEPTED AND AGREED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Thomas Tippl

  	
   

  	
   

  
	
  Thomas Tippl

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  July 30, 2010

  	
   

  	
   

  

 

2

 

EXHIBIT A

 

AMENDED AND RESTATED ACTIVISION
BLIZZARD, INC.

 

2008 INCENTIVE PLAN

 

STOCK OPTION AWARD TERMS

 

1.                                       Definitions.

 

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

 

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

 

“Cause” shall have the meaning given to such term in the Employment Agreement.

 

“Common Shares” means the shares of common stock, par value $0.000001 per share, of the
Company or any security into which such Common Shares may be changed by reason
of any transaction or event of the type referred to in Section 8 hereof.

 

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

 

“Company Group” means the Company or any of its subsidiaries or other affiliates.

 

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

 

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

 

“Disability” shall have the meaning given to such term in, or otherwise be
determined in accordance with, the Employment Agreement.

 

“Employment Agreement” means the employment agreement between the Holder and the Company
Group, dated as of September 9, 2005, as amended from time to time.

 

“Employment Violation means any material breach by the Holder of the Employment Agreement for
so long as the terms of the Employment Agreement shall apply to the Holder
(with any breach of the post-termination obligations contained therein deemed
to be material for purposes of these Award Terms).

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

“Plan” means the Amended and Restated Activision Blizzard, Inc. 2008 Incentive Plan, as amended from
time to time.

 

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

 

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

 

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

 

“Section 409A” means Section 409A of the Code and the guidance and regulations
promulgated thereunder.

 

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

 

“Term Sheet” means the Corporate
Governance Term Sheet approved by the Delaware Court of Chancery in connection
with the settlement of In re Activision, Inc.
Shareholder Derivative Litigation, C.D. Cal. Case No. CV06-4771
MRP (JTLx); In re Activision Shareholder Derivative Litigation,
L.A.S.C. Case No. SC090343.

 

A-2

 

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

 

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

 

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

 

3.                                       Vesting and
Exercise.

 

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

 

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

 

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

 

(d)                                 Payment of
Exercise Price.  To be
valid, any exercise of the Stock Option must be accompanied by full payment of
the aggregate Exercise Price of the Shares being purchased.  The Company shall determine the method or
methods the Holder may use to make such payment, which may include any of the
following:  (i) by bank check or
certified check or wire transfer of immediately available funds, (ii) if
securities of the Company of the same class as the Shares are then traded or quoted on a national
securities exchange, the Nasdaq Stock Market, Inc. or a national quotation
system sponsored by the National Association of Securities Dealers, Inc.,
through the delivery of irrevocable written instructions, in a form acceptable
to the Company, to the Equity Account Administrator (or, with the Company’s
consent, such other brokerage
firm as may be requested by the person exercising the Stock Option) to sell
some or all of the Shares being purchased upon such exercise and to thereafter
deliver promptly to the Company from the proceeds of such sale an amount in
cash equal to the aggregate Exercise Price of the Shares being purchased, (iii) by
tendering previously owned shares (valued at their Market Value per Share as of
the date of tender), (iv) through the withholding of Shares otherwise
deliverable upon exercise, or (v) any combination of (i), (ii), (iii) or
(iv) above or any other manner permitted pursuant to the Plan.

 

A-3

 

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

 

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

 

(g)                                 Issuance and
Delivery of Shares.  As soon as
practicable (and, in any event, within 30 days) after the valid exercise of the
Stock Option, the Company shall (i) effect the issuance or transfer of the
Shares purchased upon such exercise, (ii) cause the issuance or transfer
of such Shares to be evidenced on the books and records of the Company, and
(iii) cause such Shares to be delivered to a Company-Sponsored Equity
Account in the name of the person entitled to such Shares (or, with the Company’s
consent, such other brokerage account as may be requested by such person); provided,
however, that, in the event such Shares are subject to a legend as set
forth in Section 14 hereof, the Company shall instead cause a certificate
evidencing such Shares and bearing such legend to be delivered to the person
entitled thereto.

 

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

 

4.                                       Termination of
Employment.

 

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

 

(b)                                 Without Cause
or For Good Reason.  In the
event that the Holder’s employment is terminated by the Company or any of its
subsidiaries or affiliates without Cause or by the Holder pursuant to Section 9(b) of
the Employment Agreement, the provisions of Section 9(f)(ii) of the
Employment Agreement, the terms of which are incorporated by reference, mutatis mutandis, and shall apply to the Grant Notice and
these Award Terms with the same force and effect as if expressly set forth
therein or herein, shall govern the disposition of the Stock Option.

 

(c)                                  Death or
Disability. Unless the Committee determines otherwise, in the
event that the Holder dies while employed by the Company or any of its
subsidiaries or affiliates or the Holder’s employment with the Company or any
of its subsidiaries or affiliates is terminated due to the Holder’s Disability,
the Stock Option shall (i) cease to vest as of the date of the Holder’s
death or the first date of the Holder’s Disability (as determined by the
Committee), as the case may be, and (ii) to the extent vested as of the
date of the Holder’s death or the first date of the Holder’s Disability, as the
case may be, remain exercisable in accordance with these Award Terms until the
earlier of (A) the first anniversary of the date of the Holder’s death or
termination of employment, as the case may be, and (B) the Expiration
Date, after which the 

 

A-4

 

Stock Option shall no longer be exercisable and
shall be immediately cancelled.  To the
extent not vested as of the date of the Holder’s death or the first date of the
Holder’s Disability, as the case may be, the Stock Option shall be immediately
cancelled and shall no longer be exercisable.

 

(d)                                 Other.  Unless the Committee determines otherwise, in
the event that the Holder’s employment is terminated for any reason not
addressed by Section 4(a), 4(b) or 4(c) hereof, the Stock Option
shall (i) cease to vest, if not then fully vested, (ii) no longer be
exercisable, whether or not vested, and (iii) be immediately cancelled.

 

5.                                       Tax Withholding.  The Company shall have the right to require
the Holder to satisfy any Withholding Taxes resulting from the exercise (in
whole or in part) of the Stock Option, the issuance or transfer of any Shares
upon exercise of the Stock Option or otherwise in connection with the Award at
the time such Withholding Taxes become due. 
The Company shall determine the method or methods the Holder may use to
satisfy any Withholding Taxes contemplated by this Section 5, which may
include any of the following:  (a) by
delivery to the Company of a bank check or certified check or wire transfer of
immediately available funds; (b) if securities of the Company of the same
class as the Shares are then traded or quoted on a national securities
exchange, the Nasdaq Stock Market, Inc. or a national quotation system
sponsored by the National Association of Securities Dealers, Inc., through
the delivery of irrevocable written instructions, in a form acceptable to the
Company, to the Equity Account Administrator (or, with the Company’s consent,
such other brokerage firm as may be requested by the person exercising the
Stock Option) to sell some or all of the Shares being purchased upon such exercise
and to thereafter deliver promptly to the Company from the proceeds of such
sale an amount in cash equal to the aggregate amount of such Withholding Taxes;
(c) by tendering previously owned shares (valued at their Market Value per
Share as of the date of tender); (d) through the withholding of Shares
otherwise deliverable upon exercise; or (e) by any combination of (a),
(b), (c) or (d) above. 
Notwithstanding anything to the contrary contained herein, (i) the
Company or any of its subsidiaries or affiliates shall have the right to
withhold from the Holder’s compensation any Withholding Taxes contemplated by
this Section 5 and (ii) the Company shall have no obligation to
deliver any Shares upon exercise of the Stock Option unless and until all
Withholding Taxes contemplated by this Section 5 have been satisfied.

 

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

 

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

 

A-5

 

Section 8 hereof) affecting the Company or any
of its subsidiaries or affiliates or the financial statements of the Company or
any of its subsidiaries or affiliates, (ii) in response to changes in
applicable laws, regulations or accounting principles and interpretations
thereof, or (iii) to prevent the Award from becoming subject to Section 409A.

 

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

 

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

 

10.                                 Transferability.  Except as otherwise permitted under the Plan
or this Section 10, the Stock Option shall not be transferable by the
Holder other than by will or the laws of descent and distribution.  Subject to the terms of the Plan, with the
Company’s consent, the Holder may transfer all or part of the Stock Option for
estate planning purposes or pursuant to a domestic relations order; provided,
however, that any transferee shall be bound by all of the terms and
conditions of the Plan, the Grant Notice and these Award Terms and shall
execute an agreement in form and substance satisfactory to the Company in
connection with such transfer; and provided  further that the
Holder will remain bound by the terms and conditions of the Plan, the Grant
Notice and these Award Terms.

 

A-6

 

11.                                 Employment
Violation.  In the
event of an Employment Violation, the Company shall have the right to require (i) the
termination and cancellation of the Stock Option, whether vested or unvested,
and (ii) payment by the Holder to the Company of the Recapture Amount with
respect to such Employment Violation; provided, however, that, in
lieu of payment by the Holder to the Company of the Recapture Amount, the
Holder, in his or her discretion, may tender to the Company the Shares acquired
upon exercise of the Stock Option during the Look-back Period with respect to
such Employment Violation and the Holder shall not be entitled to receive any
consideration from the Company in exchange therefor.  Any such termination of the Stock Option and
payment of the Recapture Amount, as the case may be, shall be in addition to,
and not in lieu of, any other right or remedy available to the Company arising
out of or in connection with such Employment Violation, including, without
limitation, the right to terminate the Holder’s employment if not already
terminated and to seek injunctive relief and additional monetary damages.

 

12.                                 Compliance with
Applicable Laws and Regulations and Company Policies and Procedures.

 

(a)                                  The Holder is responsible for complying with (a) any federal, state
and local taxation laws applicable to the Holder in connection with the Award, (b) any
federal and state securities laws applicable to the Holder in connection with
the Award, (c) the requirements of any securities exchange, securities
association, market system or quotation system on which securities of the
Company of the same class as the Shares are then traded or quoted, (d) any
restrictions on transfer imposed by the Company’s certificate of incorporation
or bylaws, and (e) any policy or procedure the Company maintains or may
adopt with respect to the trading of its securities.

 

(b)                                 The Award is subject to the terms and conditions of the Term Sheet, and
any Company policies or procedures adopted in connection with the Company’s
implementation of the Term Sheet, including, without limitation, any policy
requiring or permitting the Company to recover any gains realized by the Holder
in connection with the Award.

 

13.                                 Section 409A.  As the Exercise Price is equal to the fair
market value of a Share on the Date of Grant, payments contemplated with
respect to the Award are intended to be exempt from Section 409A, and all
provisions of the Plan, the Grant Notice and these Award Terms shall be
construed and interpreted in a manner consistent with the requirements for
avoiding taxes or penalties under Section 409A.  Notwithstanding the foregoing, (i) nothing
in the Plan, the Grant Notice and these Award Terms shall guarantee that the
Award is not subject to taxes or penalties under Section 409A and (ii) if
any provision of the Plan, the Grant Notice or these Award Terms would, in the
reasonable, good faith judgment of the Company, result or likely result in the
imposition on the Holder or any other person of taxes, interest or penalties
under Section 409A, the Committee may, in its sole discretion, modify the
terms of the Plan, the Grant Notice or these Award Terms, without the consent
of the Holder, in the manner that the Committee may reasonably and in good
faith determine to be necessary or advisable to avoid the imposition of such
taxes, interest or penalties; provided, however, that this Section 13
does not create an obligation on the part of the Committee or the Company to
make any such modification.

 

A-7

 

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

 

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

 

15.                                 No Right to
Continued Employment.  Nothing
contained in the Grant Notice or these Award Terms shall be construed to confer
upon the Holder any right to be continued in the employ of the Company or any
of its subsidiaries or affiliates or derogate from any right of the Company or
any of its subsidiaries or affiliates to retire, request the resignation of, or
discharge the Holder at any time, with or without Cause.

 

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

 

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

 

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

 

19.                                 Successors and
Assigns.  The provisions of the Grant
Notice and these Award Terms shall be binding upon and inure to the benefit of
the Company, its successors and assigns, and the Holder and, to the extent
applicable, the Holder’s permitted assigns under Section 3(b) hereof
and the Holder’s estate or beneficiary(ies) as determined by will or the laws
of descent and distribution.

 

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

 

A-8

 

21.                                 Conflict with
Employment Agreement or Plan.  In the event of any conflict between the
terms of the Employment Agreement and the terms of the Grant Notice or these
Award Terms, the terms of the Grant Notice or these Award Terms, as the case
may be, shall control.  In the event of
any conflict between the terms of the Employment Agreement, the Grant Notice or
these Award Terms and the terms of the Plan, the terms of the Plan shall
control.

 

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

 

A-9

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