Document:

Exhibit
10.2

 

 

March 2, 2005

 

Robin Kaminsky

15 Lewis
Avenue

Dobbs Ferry,
NY 10522

 

Dear Robin:

 

This letter
confirms the terms of your employment by Activision Publishing, Inc. (“Employer”),
on the terms and conditions set forth below.

 

1.                                      Term

 

(a)                                  The
initial term of your employment under this agreement shall commence on May 1,
2005 and expire on May 31, 2007 unless earlier terminated as provided
below (the “initial term”).

 

(b)                                 In
the event that Employer decides not to extend your term of employment beyond
the expiration of this agreement, Employer will provide you written notice at
least one hundred and twenty (120) days prior to the expiration of the initial
term.

 

2.                                      Salary

 

(a)                                  In
full consideration for all rights and services provided by you under this
agreement, you shall receive an annual base salary of $350,000.

 

(b)                                 Base
salary payments shall be made in accordance with Employer’s then prevailing payroll
policy. The base salary referred to in Paragraph 2(a) shall constitute
your minimum base salary during the applicable period. On an annual basis, your
base salary shall be reviewed to determine if an increase above the minimum is
appropriate. Your base salary may be increased above the minimum at any time if
Employer’s Board of Directors (or the Compensation Committee of such Board of
Directors), in its sole and absolute discretion, elects to do so. In the event
of an increase in your base salary beyond the applicable minimum base salary
for a particular period, such increased base salary shall then constitute your
minimum base salary for each subsequent year under this agreement.

 

(c)                                  Employer
shall not be required to actually use your services during the term of this agreement.
You will not be permitted or authorized to act on behalf of Employer if
Employer is not utilizing your services unless specifically authorized in
writing to the contrary by Employer. If Employer chooses not to use your
services, Employer will continue to pay your base salary, health benefits,
401(k) contributions, and relocation support set forth in provision 6. of this agreement.
If Employer chooses not to use your services, payment of your base salary and relocation
support (as referenced in Paragraph 6), as well as your health benefits, and
401(k) contributions, during the term of your employment under this agreement
will discharge Employer’s obligations to you hereunder. Furthermore, if
Employer chooses not to use your services your rights under provision 2(f) of
this Agreement shall remain intact. Your obligations

 

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to Employer
under this agreement generally, and specifically with regard to Paragraph 9, shall continue throughout the term of
this agreement. Moreover, you have an obligation to abide by the terms of the
Employee Proprietary Information Agreement executed by you.

 

(d)                                 In
addition to your base salary, you may be eligible to receive an annual
discretionary bonus targeted at sixty percent (60%) of your annual base salary
(pro-rated for the amount of time that you actually perform services for
Employer during a particular fiscal year). The amount of this bonus, if any, is
within the sole and absolute discretion of the Employer’s Board of Directors (or
the Compensation Committee of the Board of Directors). Certain of the criteria
that will be considered to evaluate your eligibility for a bonus is your
achievement of specific objectives and/or your contribution to the success of
the corporate goals and objectives. Employer’s overall financial performance
will also be considered in determining whether any bonus is awarded and, if so,
the amount. Discretionary bonuses, if granted, are generally paid to employees
in May. You must remain continuously employed by Employer through the date on
which the discretionary bonus is paid to be eligible to receive a bonus.
Employer retains the right to modify, at any time, any and all of the criteria
used to determine whether Employee is eligible for a bonus and, if so, the
amount of any such bonus.

 

(e)                                  As
an additional incentive to the commencement of your employment with Employer under
this agreement, you will receive a sign-on bonus equal to $250,000 payable by
wire transfer within thirty (30) business days of your execution of this
Agreement. If, within the first year of employment, you are terminated “for
cause” (as defined in Paragraph 10(a)) or if you voluntarily terminate your
employment for a reason other than those defined in Paragraph 10 (b) then you
will be required to repay this sign-on bonus.

 

(f)                                    You
also are being granted, under the Activision Inc. (“company”) existing or modified
Board-approved stock option plan, a non-qualified stock option (“NQSO”) to
purchase 200,000 shares of the company’s common stock. The option to purchase
200,000 shares referred to above will vest ratably over five years, with one
fifth of the amount granted vesting at the end of each year, and with the first
year commencing May 1, 2005. In addition, the portions of this option
grant scheduled to vest ratably on the fourth and fifth annual anniversary will
be subject to certain performance based acceleration criteria set forth in more
detail in the related stock option certificate. The option will have an
exercise price that will be the market low of such common stock on the date
that it is issued, and will be governed in all other respects by the company’s stock
option plan in effect at the time of the grant.

 

(g)                                 You
shall be eligible for such additional stock option grants commensurate with
your position with Employer as the Board of Directors (or Compensation
Committee of the Board of Directors), in its sole discretion, may award to you
from time to time in connection with any extensions of this agreement’s
contract term.

 

3.                                      Title

 

You are being employed under this agreement in the position of Senior
Vice President, Global Brand Management.

 

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4.                                      Duties

 

You shall personally and diligently perform, on a full-time and
exclusive basis, such services as Employer or any of its related or affiliated
entities or divisions may reasonably require. You are also required to read,
review and observe all of Employer’s existing policies, procedures, rules and
regulations as well as those adopted by Employer during the term of your employment.
You will at all times perform all of the duties and obligations required by you
under this agreement in a loyal and conscientious manner and to the best of
your ability and experience.

 

5.                                      Expenses

 

To the extent you incur necessary and reasonable business expenses in
the course of your employment, you shall be reimbursed for such expenses,
subject to Employer’s then current policies regarding reimbursement of such
business expenses.

 

6.                                      Relocation
Support

 

(a)                                  Employer
shall reimburse you for the customary and reasonable expenses actually incurred
by you in connection with your relocation from New York to Los Angeles to
include but not limited to (i) the moving of your personal and household
goods to the Los Angeles area and for storage of household goods if necessary
for a period of up to six (6) months, (ii) the one-time, non-recurring
closing costs associated with both the sale of your home in New York, and the purchase
of a new home in the Los Angeles area including up to two (2) points of
origination or discount fees, (iii) the travel and expenses associated
with up to two (2) house hunting trips for you and your spouse, and (iv) for
customary reasonable corporate temporary living expenses (e.g. accommodations
of at least three bedrooms, and other customary reasonable displacement expenses,
for you and your family for up to six (6) months pending your actual
settlement in the Los Angeles area) provided that you provide Employer with
documentation which adequately evidences such expenses. Employer will provide
tax assistance (gross-up) for those relocation related benefits that are
treated as taxable.

 

(b)                                 Employer
will provide $108,000 mortgage assistance (grossed-up), payable three thousand
dollars ($3,000) a month for thirty-six (36) months provided you remain an
Employee of Employer for the duration of this period. This provision and its
obligations shall survive the expiration of the Term of this Agreement during
the period that you remain an employee.

 

7.                                       Other Benefits

 

(a)                                  You
shall be entitled to those benefits, which are standard for persons in similar positions
with Employer, including coverage under Employer’s health, life insurance and disability
plans, and eligibility to participate in Employer’s 401(k) and Employee Stock
Purchase Plans. Nothing paid to you under any such plans and arrangements (nor
any bonus or stock options which Employer’s Board of Directors (or the
Compensation Committee of such Board of Directors), in its sole and absolute
discretion, shall provide to you)) shall be deemed in lieu, or paid on account,
of your base salary. You expressly agree and acknowledge that after the expiration
or early termination of the term of your employment under this agreement, you
are

 

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entitled to no
additional benefits, except as specifically provided under the benefit plans
referred to above and those benefit plans in which you subsequently may become
a participant, and subject in each case to the terms and conditions of each
such plan. Notwithstanding anything to the contrary set forth above, you shall
be entitled to receive those benefits provided by COBRA upon the expiration or
earlier termination of this agreement.

 

(b)                                 Employer
will reimburse you for the cost of electing COBRA benefits for the period that
they are required to provide benefits coverage for you and your family prior to
the commencement of Activision benefits.

 

8.                                      Vacation
and Paid Holidays

 

(a)                                  You
will be entitled to paid vacation days (days other than paid holidays) in accordance
with the normal vacation policies of Employer in effect from time to time,
provided that in no event shall you be entitled to less than twenty (20) paid
vacation per year.

 

(b)                                 You
shall be entitled to all paid holidays given by Employer to its full-time employees.

 

9.                                      Protection
of Employer’s Interests

 

(a)                                  Duty of Loyalty. During the term of your
employment, you will not compete in any manner, whether directly or indirectly,
as a principal, employee, agent or owner, with Employer, or any affiliate of
Employer, except that the foregoing will not prevent you from holding at any time
less than five percent (5%) of the outstanding capital stock of any company
whose stock is publicly traded.

 

(b)                                 Property of Employer.
All rights worldwide with respect to any and all intellectual or other property
of any nature produced, created or suggested by you during the term of your employment
or resulting from your services which (i) relate in any manner at the time
of conception or reduction to practice to the actual or demonstrably anticipated
business of Employer, (ii) result from or are suggested by any task
assigned to you or any work performed by you on behalf of Employer, or (iii) are
based on any property owned or idea conceived by Employer, shall be deemed to
be a work made for hire and shall be the sole and exclusive property of
Employer. You agree to execute, acknowledge and deliver to Employer, at Employer’s
request, such further documents, including copyright and patent assignments, as
Employer finds appropriate to evidence Employer’s rights in such property.

 

(c)                                  Confidentiality.
Any confidential and/or proprietary information of Employer or any affiliate of
Employer shall not be used by you or disclosed or made available by you to any person
except as required in the course of your employment, and upon expiration or
earlier termination of the term of your employment, you shall return to
Employer all such information which exists in written or other physical form
(and all copies thereof) under your control. Without limiting the generality of
the foregoing, you acknowledge signing and delivering to Employer the
Activision Employee Proprietary Information Agreement and you agree that all terms
and conditions contained in such agreement, and all of your obligations and
commitments provided for in such agreement, shall be deemed, and hereby are,
incorporated into this agreement

 

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as if set
forth in full herein. The provisions of this paragraph shall survive the
expiration or earlier termination of this agreement.

 

(d)                                 Covenant Not to Solicit.
After the expiration of the term of this agreement or earlier termination of
your employment pursuant to Paragraphs 10(a) or (b) of this agreement
for any reason whatsoever, you shall not, either alone or jointly, with or on
behalf of others, directly or indirectly, whether as principal, partner, agent,
shareholder, director, employee, consultant or otherwise, at any time during a
period of one (1) year following such expiration or termination, offer
employment to, or directly or indirectly solicit the employment or engagement
of, or otherwise entice away from the employment of Employer or any affiliated
entity, either for your own account or for any other person firm or company,
any person who was employed by Employer or any such affiliated entity during
the term of your employment, whether or not such person would commit any breach
of his or her contract of employment by reason of his or her leaving the
service of Employer or any affiliated entity.

 

10.                               Termination

 

(a)                                  Employer.
At any time during the term of this agreement, Employer may terminate your
employment under this agreement for your (i) gross misconduct, (ii) gross
negligence in performance of job responsibilities, or (iii) conviction of a
felony.. Furthermore, prior to any such termination Employer will notify you of
the basis for such and give you a reasonable opportunity to present facts which
contradict the findings of Employer.

 

(b)                                 Employee.
You may terminate your employment under this agreement (and, thereby, forfeit
your right to receive any compensation or benefits under this agreement) (i) upon
any relocation of the place at which you primarily are performing your services
to Employer to a location which is outside Los Angeles County, or (ii) if
Employer elects to not actually use your services and continues to pay your
base salary pursuant to Paragraph 2(c) above for a period of one hundred
twenty (120) consecutive days. Employer agrees not to relocate your services outside
of Los Angeles County without your prior written consent unless the majority of
employees at the Santa Monica, California, location are concurrently relocated
to the same new location. In the event of such relocation you will receive
relocation support on a basis no less favorable than provided to you in this
agreement.

 

(c)                                  Death or Disability.
In the event of your death during the term of this agreement, this agreement
shall terminate and Employer only shall be obligated to pay your estate or
legal representative the salary provided for above to the extent earned by your
prior to your death. In the event you are unable to perform the services
required of you under this agreement as a result of any disability, and such
disability continues for a period of 120 or more consecutive days or an aggregate
of 120 or more days during any 12-month period during the term of this
agreement, then Employer shall have the right, at its option, to terminate your
employment under this agreement. Unless and until so terminated, during any
period of disability during which you are unable to perform the services
required of you under this agreement, your base salary shall be payable to the
extent of, and subject to, Employer’s policies and practices then in effect
with regard to sick leave and disability benefits.

 

(d)                                 Termination of Obligations. In the event of the termination of your employment under
this agreement pursuant to Paragraph 10(a) or (b), all obligations of
Employer to you under

 

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this agreement shall immediately terminate
(other than vested obligations e.g. stock options; and obligations required by
law e.g. COBRA).

 

11.                               Use
of Employee’s Name

 

Employer shall have the right, but not the obligation, to use your name
or likeness for any Employer related publicity or advertising purpose.

 

12.                               Assignment

 

Employer may assign this agreement or all or any part of its rights
under this agreement to any entity which succeeds to all or substantially all
of Employer’s assets (whether by merger, acquisition, consolidation,
reorganization or otherwise) or which Employer may own substantially, and this
agreement shall inure to the benefit of such assignee.

 

13.                               No
Conflict with Prior Agreements

 

You represent to Employer that neither your commencement of employment
under this agreement nor the performance of your duties under this agreement
conflicts or will conflict with any contractual commitment on your part to any
third party, nor does it or will it violate or interfere with any rights of any
third party.

 

14.                               Representations
and Warranties

 

Employee represents and warrants that she has provided Employer with
complete and accurate information regarding her skills and experience. Employee
further represents and warrants that she has the skills and abilities to
perform the job responsibilities for which she is being hired (see paragraphs 3 and 4, above) based on
her skills and experience. Based on Employee’s representations regarding her
skills and abilities, Employer has agreed to hire and compensate Employee
pursuant to the terms of this agreement.

 

15.                               General
Provisions

 

(a)                                  Entire Agreement.
This agreement supersedes all prior or contemporaneous agreements and
statements, whether written or oral, concerning the terms of your employment
with Employer, and no amendment or modification of this agreement shall be binding
unless it is set forth in a writing signed by both Employer and Employee. To
the extent that this agreement conflicts with any of Employer’s policies,
procedures, rules or regulations, this agreement shall supersede the other
policies, procedures, rules or regulations.

 

(b)                                 No Broker. You have given no indication,
representation or commitment of any nature to any broker, finder, agent or
other third party to the effect that any fees or commissions of any nature are,
or under any circumstances might be, payable by Employer or any affiliate of Employer
in connection with your employment under this agreement. For purposes of clarification,
the foregoing shall not apply to any party broker, finder, agent or recruiter
engaged directly by Employer

 

6

 

(c)                                  Waiver. No waiver by
either party of any breach by the other party of any provision or condition of
this agreement shall be deemed a waiver of any similar or dissimilar provision
or condition at the same or any prior or subsequent time.

 

(d)                                 Prevailing Law.
Nothing contained in this agreement shall be construed so as to require the
commission of any act contrary to law and wherever there is any conflict
between any provision of this agreement and any present or future statute, law,
ordinance or regulation, the latter shall prevail, but in such event the
provision of this agreement affected shall be curtailed and limited only to the
extent necessary to bring it within legal requirements.

 

(e)                                  Expiration.
This agreement does not constitute a commitment of Employer with regard to your
employment, express or implied, other than to the extent expressly provided for
herein. Upon expiration of the term of this agreement, it is the contemplation
of both parties that your employment with Employer shall cease, and that
neither Employer nor you shall have any obligation to the other with respect to
your continued employment. In the event that your employment continues for a
period of time following the term unless and until agreed to in a new subscribed
written document, such continuation of your employment shall be “at will,” and
may be terminated without obligation at any time by either party giving no less
than thirty (30) days prior written notice to the other. In the event your
employment continues “at will” you shall continue to receive your annual base
salary in accordance with Employer’s then prevailing payroll policy as well as
all other benefits given by Employer to employees of your status. 

 

(f)                                    Choice of Law.
This agreement shall be governed by and construed in accordance with the laws
of the State of California without regard to conflict of law principles.

 

(g)                                 Immigration.
In accordance with the Immigration Reform and Control Act of 1986, employment
under this agreement is conditioned upon satisfactory proof of your identity
and legal ability to work in the United States.

 

(h)                                 Venue and Jurisdiction.
The parties agree that all actions or proceedings initiated by either party
hereto arising directly or indirectly out of this agreement shall be litigated
in federal or state court in Los Angeles, California. The parties hereto
expressly submit and consent in advance to such jurisdiction and agree that
service of summons and complaint or other process or papers may be made by
registered or certified mail addressed to the relevant party at the address set
forth below. The parties hereto waive any claim that a federal or state court
in Los Angeles, California, is an inconvenient or an improper forum.

 

(i)                                     Severability.
If any provision of this agreement is held to be illegal, invalid or unenforceable
under existing or future laws effective during the term of this agreement, such
provisions shall be fully severable, the agreement shall be construed and
enforced as if such illegal, invalid or unenforceable provision had never
comprised a part of this agreement, and the remaining provisions of this
agreement shall remain in full force and effect and shall not be affected by
the illegal, invalid or unenforceable provision or by its severance from this
agreement. Furthermore, in lieu of such illegal, invalid or unenforceable
provision, there shall be added automatically as part of this agreement a provision
as similar in terms to such illegal, invalid or unenforceable provision as may
be possible and be legal and enforceable.

 

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(j)                                     Legal Counsel.
Employee acknowledges that she has been given the opportunity to consult with
legal counsel of her own choosing regarding this agreement. Employee
understands and agrees that Activision’s General Counsel, or any other attorney
or member of management who has discussed any term or condition of this
agreement with her, is only acting on behalf of the company and not on behalf
of Employee.

 

(k)                                  Right to Negotiate.
Employee hereby acknowledges that she has been given the opportunity to
participate in the negotiation of the terms of this agreement.

 

(l)                                     Services Unique.
You recognize that the services being performed by you under this agreement are
of a special, unique, unusual, extraordinary and intellectual character giving
them a peculiar value, the loss of which cannot be reasonably or adequately
compensated for in damages in the event of a breach of this agreement by you
(particularly, but without limitation, with respect to the provisions hereof
relating to the exclusivity of your services and the provisions of paragraph 9 of
this agreement).

 

(m)                               Injunctive Relief.
In the event of a breach or threatened breach of this agreement, you hereby
agree that any remedy at law for any breach or threatened breach of this
agreement will be inadequate and, accordingly, each party hereby stipulates
that the other is entitled to obtain injunctive relief for any such breaches or
threatened breaches. The injunctive relief provided for in this paragraph is in
addition to, and is not in limitation of, any and all other remedies at law or
in equity otherwise available to the applicable party. The parties agree to
waive the requirement of posting a bond in connection with a court’s issuance
of an injunction.

 

(n)                                 Remedies Cumulative.
The remedies in this paragraph are not exclusive, and the parties shall have
the right to pursue any other legal or equitable remedies to enforce the terms
of this agreement.

 

(o)                                 Attorneys’ Fees And Costs. If either party brings an action to enforce, interpret or apply
the terms of this agreement or declare its rights under this agreement, the
prevailing party in such action, including all appeals, shall receive all of
its or her attorneys’ fees (other than in-house attorney fees), experts’ fees,
and all of its or her costs, in addition to such other relief as may be granted.

 

16.                               Notices

 

All notices which either party is required or may desire to give the
other shall be in writing and given either personally or by depositing the same
in the United States mail addressed to the party to be given notice as follows:

 

	
  To Employer:

  	
  3100 Ocean
  Park Boulevard

  
	
   

  	
  Santa
  Monica, California 90405

  
	
   

  	
  Attention:
  General Counsel

  
	
   

  	
   

  
	
  To Employee:

  	
  15 Lewis
  Avenue

  
	
   

  	
  Dobbs Ferry,
  NY 10522

  

 

8

 

Either party may by written notice designate a different address for
giving of notices. The date of mailing of any such notices shall be deemed to
be the date on which such notice is given. Furthermore, notice of your address
shall automatically be deemed given by you to Employer each time that you give
Employer’s Human Resources department your updated address in written form.

 

17.                               Headings

 

The headings set forth herein are included solely for the purpose of
identification and shall not be used for the purpose of construing the meaning
of the provisions of this agreement. 

 

If the foregoing accurately reflects our mutual agreement, please sign
where indicated.

 

	
  ACCEPTED AND AGREED TO:

  	
   

  
	
   

  	
   

  
	
  Employer

  	
  Employee

  
	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  George Rose

  	
   

  	
  Robin S.
  Kaminsky

  
	
   

  	
  Senior Vice
  President, Business

  	
   

  
	
   

  	
  Affairs and
  General Counsel

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
									

 

9Exhibit
10.3

 

 

December 6,
2005

 

Stephen G. Wereb

578 Joost Avenue

San Francisco, California 94127

 

Dear Steve:

 

This letter confirms the terms of your employment by
Activision Publishing, Inc. (“Employer”), on the terms and conditions set
forth below.

 

1.                                      Term 

 

(a)                                  The initial term of your employment under this agreement
shall commence on January 1, 2005 and expire on December 31, 2007
unless earlier terminated as provided below (the “initial term”).

 

(b)                                 Employer shall have the irrevocable option to extend the
initial term of this agreement beyond the initial period for an additional
successive one-year period. The initial term and the option period, if
exercised, shall be referred to as the “term.”

 

(c)                                  Employer may exercise the option granted to it under this
agreement by giving written notice to Employee at least sixty (60) days prior
to the expiration of the initial term.

 

2.                                      Salary 

 

(a)                                  In full consideration for all rights and services provided by
you under this agreement, you shall receive an annual base salary of $230,000.

 

(b)                                 Base salary payments shall be made in accordance with
Employer’s then prevailing payroll policy. The base salary referred to in
Paragraph 2(a) shall constitute your minimum base salary during the
applicable period. On an annual basis, your base salary shall be reviewed to
determine if an increase above the minimum is appropriate. Any decision
regarding whether to change your base salary shall be made in the sole
discretion of management

 

(c)                                  Employer shall not be required to actually use your services
during the term of this agreement. You will not be permitted or authorized to
act on behalf of Employer if Employer is not utilizing your services unless
specifically authorized in writing to the contrary by Employer. If Employer
chooses not to use your services, Employer will continue to pay your base
salary, health benefits and 401(k) contributions. Payment of your base salary
during the term of your employment under this agreement will discharge Employer’s
obligations to you hereunder. Your obligations to Employer under this agreement
generally, and specifically with regard to Paragraph 9, shall continue throughout the term of
this agreement. Moreover, you have an obligation to abide by the terms of the
Employee Proprietary Information Agreement executed by you. 

 

1

 

(d)                                 In addition to your base salary, you may be eligible to
receive an annual discretionary bonus targeted at fifty percent (50%) of your
annual base salary (pro-rated for the amount of time that you actually perform
services for Employer during a particular fiscal year). The amount of this
bonus, if any, is within the sole and absolute discretion of the Employer’s
Board of Directors (or the Compensation Committee of the Board of Directors).
Certain of the criteria that will be considered to evaluate your eligibility
for a bonus are your achievement of specific objectives and/or your
contribution to the success of the corporate goals and objectives. Employer’s
overall financial performance will also be considered in determining whether
any bonus is awarded and, if so, the amount. Discretionary bonuses, if granted,
are generally paid to employees in May. You must remain continuously employed
by Employer through the date on which the discretionary bonus is paid to be
eligible to receive a bonus. Employer retains the right to modify, at any time,
any and all of the criteria used to determine whether Employee is eligible for
a bonus and, if so, the amount of any such bonus.

 

(e)                                  You also are being granted, under the Activision Inc. (“company”)
existing or modified Board-approved stock option plan, a non-qualified stock
option (“NQSO”) to purchase 40,000 shares of the company’s common stock. The
option to purchase 40,000 shares referred to above will vest ratably over five
years, with one fifth of the amount granted vesting at the end of each year.
The option will have an exercise price that will be the market low of such
common stock on the date that it is issued, and will be governed in all other
respects by the company’s stock option plan in effect at the time of the grant.
You may be eligible for such additional stock option grants commensurate with
your position with Employer as the Board of Directors (or Compensation Committee
of the Board of Directors), in its sole discretion, may award to you from time
to time.

 

3.                                      Relocation Benefits 

 

Employer shall reimburse you
for the customary and reasonable expenses actually incurred by you in
connection with your relocation to Los Angeles to include but not limited to (i) the
moving of your personal and household goods to the Los Angeles area and for
storage of household goods if necessary for a period of up to six (6) months,
(ii) the one-time, non-recurring closing costs associated with both the
sale of your current home (excluding realtor fee), and the purchase of a new
home in the Los Angeles area, (iii) the travel and expenses associated
with up to two (2) house hunting trips, and (iv) for customary and
reasonable corporate temporary living expenses for up to six (6) months
pending your actual settlement in the Los Angeles area provided that you
provide Employer with documentation which adequately evidences such expenses.
Employer will provide tax assistance (gross-up) for those relocation related
benefits that are treated as taxable. Additional, detailed relocation benefits
will be communicated to you separately and will be governed by the applicable
policy covering such items.

 

4.                                      Title 

 

You are being employed under
this agreement in the position of Vice President, Finance and Corporate
Controller.

 

5.                                      Duties 

 

You shall personally and
diligently perform, on a full-time and exclusive basis, such services as
Employer or any of its related or affiliated entities or divisions may reasonably
require. You are 

 

2

 

also required to read, review and observe all of
Employer’s existing policies, procedures, rules and regulations as well as
those adopted by Employer during the term of your employment. You will at all
times perform all of the duties and obligations required by you under this
agreement in a loyal and conscientious manner and to the best of your ability
and experience.

 

6.                                      Expenses 

 

To the extent you incur
necessary and reasonable business expenses in the course of your employment,
you shall be reimbursed for such expenses, subject to Employer’s then current
policies regarding reimbursement of such business expenses.

 

7.                                      Other Benefits 

 

You shall be entitled to
those benefits which are standard for persons in similar positions with
Employer, including coverage under Employer’s health, life insurance and
disability plans, and eligibility to participate in Employer’s 401(k) plan.
Nothing paid to you under any such plans and arrangements (nor any bonus or
stock options which Employer’s Board of Directors (or the Compensation
Committee of such Board of Directors), in its sole and absolute discretion,
shall provide to you)) shall be deemed in lieu, or paid on account, of your
base salary. You expressly agree and acknowledge that after the expiration or
early termination of the term of your employment under this agreement, you are
entitled to no additional benefits, except as specifically provided under the
benefit plans referred to above and those benefit plans in which you
subsequently may become a participant, and subject in each case to the terms
and conditions of each such plan. Notwithstanding anything to the contrary set
forth above, you shall be entitled to receive those benefits provided by COBRA
upon the expiration or earlier termination of this agreement.

 

8.                                      Vacation and Paid Holidays 

 

(a)                                  You will be entitled to paid vacation days in accordance with
the normal vacation policies of Employer in effect from time to time, provided
that in no event shall you be entitled to less than fifteen (15) days of paid
vacation per year.

 

(b)                                 You shall be entitled to all paid holidays given by Employer
to its full-time employees.

 

9.                                      Protection of Employer’s Interests 

 

(a)                                  Duty of Loyalty. During the term of your employment, you will not compete in
any manner, whether directly or indirectly, as a principal, employee, agent or
owner, with Employer, or any affiliate of Employer, except that the foregoing
will not prevent you from holding at any time less than five percent (5%) of
the outstanding capital stock of any company whose stock is publicly traded.

 

(b)                                 Property of Employer. All rights worldwide with respect to any and all
intellectual or other property of any nature produced, created or suggested by
you during the term of your employment or resulting from your services which (i) relate
in any manner at the time of conception or reduction to practice to the actual
or demonstrably anticipated business of Employer, (ii) result from or are
suggested by any task assigned to you or any work performed by you on behalf of
Employer, or (iii) are based on any property owned or idea conceived by
Employer, shall be deemed 

 

3

 

to be a work made for hire and shall be the sole and
exclusive property of Employer. You agree to execute, acknowledge and deliver
to Employer, at Employer’s request, such further documents, including copyright
and patent assignments, as Employer finds appropriate to evidence Employer’s
rights in such property.

 

(c)                                  Confidentiality. Any confidential and/or proprietary information of Employer
or any affiliate of Employer shall not be used by you or disclosed or made
available by you to any person except as required in the course of your
employment, and upon expiration or earlier termination of the term of your
employment, you shall return to Employer all such information which exists in
written or other physical form (and all copies thereof) under your control.
Without limiting the generality of the foregoing, you acknowledge signing and
delivering to Employer the Activision Employee Proprietary Information
Agreement and you agree that all terms and conditions contained in such
agreement, and all of your obligations and commitments provided for in such
agreement, shall be deemed, and hereby are, incorporated into this agreement as
if set forth in full herein. The provisions of this paragraph shall survive the
expiration or earlier termination of this agreement.

 

(d)                                 Covenant Not to Solicit. After the expiration of the term of this agreement or
earlier termination of your employment pursuant to Paragraphs 10 (a) or (b) of
this agreement for any reason whatsoever, you shall not, either alone or
jointly, with or on behalf of others, directly or indirectly, whether as
principal, partner, agent, shareholder, director, employee, consultant or
otherwise, at any time during a period of one (1) year following such
expiration or termination, offer employment to, or directly or indirectly
solicit the employment or engagement of, or otherwise entice away from the
employment of Employer or any affiliated entity, either for your own account or
for any other person firm or company, any person who was employed by Employer
or any such affiliated entity during the term of your employment, whether or
not such person would commit any breach of his or her contract of employment by
reason of his or her leaving the service of Employer or any affiliated entity.

 

10.                               Termination 

 

(a)                                  Employer.
At any time during the term of this agreement, Employer may terminate your
employment under this agreement for your (i) willful, reckless or gross
misconduct, (ii) negligent performance of any work on behalf of Employer; (iii) conviction
of a felony or of any crime involving dishonesty or moral turpitude; (iv) inability
or refusal to perform your job duties; (v) action or omission that causes
material injury to Employer or its business interests; (vi) breach of the
duty of loyalty.

 

(b)                                 Employee.
You may terminate your employment under this agreement (and, thereby, forfeit
your right to receive any compensation or benefits under this agreement) (i) upon
any relocation of the place at which you primarily are performing your services
to Employer to a location which is outside Los Angeles County or (ii) if
Employer elects to not actually use your services and continues to pay your
base salary pursuant to Paragraph 2(c) above for a period of one hundred
twenty (120) consecutive days.

 

(c)                                  Death or Disability. In the event of your death during the term of this
agreement, this agreement shall terminate and Employer only shall be obligated
to pay your estate or legal representative the salary provided for above to the
extent earned by you prior to your death. In the event that you have or develop
a disability that causes you to be unable to perform the duties 

 

4

 

required of you under this agreement, even with
Employer providing you a reasonable accommodation, then Employer shall have the
right, at its option, to terminate your employment under this agreement.
Employee acknowledges that should such disability continue for a period of more
than 12 weeks during any 12-month period, or if Employee is occupying a key
position or performing key duties with Employer at the time of such absence,
any further absence would likely cause Employer an undue hardship and/or
substantial and grievous injury. Unless and until employment is terminated
under this provision, in any period of disability during which you are unable
to perform the services required of you under this agreement, your base salary
shall be payable to the extent of, and subject to, Employer’s policies and
practices then in effect with regard to sick leave, vacation days and
disability benefits.

 

(d)                                 Termination of Obligations. In the event of the termination of your employment under
this agreement pursuant to Paragraph 10 (a) or 10 (b), all obligations of
Employer to you under this agreement shall immediately terminate.

 

11.                               Use of Employee’s Name 

 

Employer shall have the
right, but not the obligation, to use your name or likeness for any publicity
or advertising purpose.

 

12.                               Assignment 

 

Employer may assign this
agreement or all or any part of its rights under this agreement to any entity
which succeeds to all or substantially all of Employer’s assets (whether by
merger, acquisition, consolidation, reorganization or otherwise) or which
Employer may own substantially, and this agreement shall inure to the benefit
of such assignee.

 

13.                               No Conflict with Prior Agreements 

 

You represent to Employer
that neither your commencement of employment under this agreement nor the
performance of your duties under this agreement conflicts or will conflict with
any contractual commitment on your part to any third party, nor does it or will
it violate or interfere with any rights of any third party.

 

14.                               Representations and Warranties 

 

Employee represents and
warrants that he has provided Employer with complete and accurate information
regarding his skills and experience. Employee further represents and warrants
that he has the skills and abilities to perform the job responsibilities for
which he is being hired (see paragraphs 4 and 5, above) based on his skills and
experience. Based on Employee’s representations regarding his skills and
abilities, Employer has agreed to hire and compensate Employee pursuant to the
terms of this agreement.

 

15.                               General Provisions 

 

(a)                                  Entire Agreement. This agreement supersedes all prior or contemporaneous
agreements and statements, whether written or oral, concerning the terms of
your employment with Employer, and no amendment or modification of this
agreement shall be 

 

5

 

binding unless it is set forth in a writing signed by
both Employer and Employee. To the extent that this agreement conflicts with
any of Employer’s policies, procedures, rules or regulations, this
agreement shall supersede the other policies, procedures, rules or
regulations.

 

(b)                                 No Broker.
You have given no indication, representation or commitment of any nature to any
broker, finder, agent or other third party to the effect that any fees or
commissions of any nature are, or under any circumstances might be, payable by
Employer or any affiliate of Employer in connection with your employment under
this agreement.

 

(c)                                  Waiver.
No waiver by either party of any breach by the other party of any provision or
condition of this agreement shall be deemed a waiver of any similar or
dissimilar provision or condition at the same or any prior or subsequent time.

 

(d)                                 Prevailing Law. Nothing contained in this agreement shall be construed so as
to require the commission of any act contrary to law and wherever there is any
conflict between any provision of this agreement and any present or future
statute, law, ordinance or regulation, the latter shall prevail, but in such
event the provision of this agreement affected shall be curtailed and limited
only to the extent necessary to bring it within legal requirements.

 

(e)                                  Expiration.
This agreement does not constitute a commitment of Employer with regard to your
employment, express or implied, other than to the extent expressly provided for
herein. Upon expiration of the term of this agreement, it is the contemplation
of both parties that your employment with Employer shall cease, and that
neither Employer nor you shall have any obligation to the other with respect to
your continued employment. In the event that your employment continues for a
period of time following the term unless and until agreed to in a new
subscribed written document, such continuation of your employment shall be “at
will,” and may be terminated without obligation at any time by either party
giving notice to the other.

 

(f)                                    Choice of Law.
This agreement shall be governed by and construed in accordance with the laws
of the State of California without regard to conflict of law principles.

 

(g)                                 Immigration.
In accordance with the Immigration Reform and Control Act of 1986, employment
under this agreement is conditioned upon satisfactory proof of your identity
and legal ability to work in the United States.

 

(h)                                 Venue and Jurisdiction. The parties agree that all actions or proceedings initiated
by either party hereto arising directly or indirectly out of this agreement
shall be litigated in federal or state court in Los Angeles, California. The
parties hereto expressly submit and consent in advance to such jurisdiction and
agree that service of summons and complaint or other process or papers may be
made by registered or certified mail addressed to the relevant party at the
address set forth below. The parties hereto waive any claim that a federal or
state court in Los Angeles, California, is an inconvenient or an improper
forum.

 

(i)                                     Severability.
If any provision of this agreement is held to be illegal, invalid or
unenforceable under existing or future laws effective during the term of this
agreement, such provisions shall be fully severable, the agreement shall be
construed and enforced as if such illegal, invalid or unenforceable provision
had never comprised a part of this agreement, and the remaining 

 

6

 

provisions of this agreement shall remain in full
force and effect and shall not be affected by the illegal, invalid or
unenforceable provision or by its severance from this agreement. Furthermore,
in lieu of such illegal, invalid or unenforceable provision, there shall be
added automatically as part of this agreement a provision as similar in terms
to such illegal, invalid or unenforceable provision as may be possible and be
legal and enforceable.

 

(j)                                     Legal Counsel.
Employee acknowledges that he has been given the opportunity to consult with
legal counsel of his own choosing regarding this agreement. Employee understands
and agrees that Activision’s General Counsel, or any other attorney or member
of management who has discussed any term or condition of this agreement with
him, is only acting on behalf of the company and not on behalf of Employee.

 

(k)                                  Right to Negotiate. Employee hereby acknowledges that he has been given the
opportunity to participate in the negotiation of the terms of this agreement.

 

(l)                                     Services Unique. You recognize that the services being performed by you under
this agreement are of a special, unique, unusual, extraordinary and
intellectual character giving them a peculiar value, the loss of which cannot
be reasonably or adequately compensated for in damages in the event of a breach
of this agreement by you (particularly, but without limitation, with respect to
the provisions hereof relating to the exclusivity of your services and the
provisions of paragraph 9 of this agreement).

 

(m)                               Injunctive Relief. In the event of a breach or threatened breach of this
agreement, you hereby agree that any remedy at law for any breach or threatened
breach of this agreement will be inadequate and, accordingly, each party hereby
stipulates that the other is entitled to obtain injunctive relief for any such
breaches or threatened breaches. The injunctive relief provided for in this
paragraph is in addition to, and is not in limitation of, any and all other
remedies at law or in equity otherwise available to the applicable party. The
parties agree to waive the requirement of posting a bond in connection with a court’s
issuance of an injunction.

 

(n)                                 Remedies Cumulative. The remedies in this paragraph are not exclusive, and the
parties shall have the right to pursue any other legal or equitable remedies to
enforce the terms of this agreement.

 

(o)                                 Attorneys’ Fees and Costs. If either party brings an action to enforce, interpret or
apply the terms of this agreement or declare its rights under this agreement,
the prevailing party in such action, including all appeals, shall receive all
of its or his attorneys’ fees, experts’ fees, and all of its or his costs, in
addition to such other relief as may be granted. 

 

7

 

16.                               Notices 

 

All notices which either
party is required or may desire to give the other shall be in writing and given
either personally or by depositing the same in the United States mail addressed
to the party to be given notice as follows:

 

	
  To Employer:

  	
   

  	
  3100 Ocean Park Boulevard

  
	
   

  	
   

  	
  Santa Monica, California 90405

  
	
   

  	
   

  	
  Attention: Senior Vice President,

  
	
   

  	
   

  	
  Business Affairs and General Counsel

  
	
   

  	
   

  	
   

  
	
  To Employee:

  	
   

  	
  578 Joost Avenue

  
	
   

  	
   

  	
  San Francisco, California 94127

  

 

Either party may by written
notice designate a different address for giving of notices. The date of mailing
of any such notices shall be deemed to be the date on which such notice is
given.

 

17.                               Headings 

 

The headings set forth
herein are included solely for the purpose of identification and shall not be
used for the purpose of construing the meaning of the provisions of this
agreement.

 

If the foregoing accurately
reflects our mutual agreement, please sign where indicated.

 

	
  ACCEPTED AND
  AGREED TO:

  	
   

  
	
   

  	
   

  
	
  Employer

  	
  Employee

  
	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  George Rose

  	
   

  	
  Steve Wereb

  
	
   

  	
  Senior Vice President, Business

  	
   

  	
   

  
	
   

  	
  Affairs and General Counsel 

  	
   

  	
   

  
						

 

8

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