Document:

Exhibit 10.13

 

ACTIVISION, INC.

 

AMENDED AND RESTATED 2003 INCENTIVE PLAN

 

NOTICE OF RESTRICTED SHARE UNIT AWARD

 

You have been awarded Restricted Share Units of
Activision, Inc. (the “Company”),
as follows:

 

•      Your
name:  George Rose

 

•      Total
number of Restricted Share Units awarded: 
25,000

 

•      Date
of Grant:  September 28, 2007

 

•      Grant
ID:  03001964

 

•      Your
Award of Restricted Share Units is governed by the terms and conditions set
forth in:

 

•      this Notice of Restricted Share Unit Award;

 

•      the Restricted Share Unit Award Terms attached
hereto as Exhibit A (the “Award Terms”); and

 

•      the Company’s Amended and Restated 2003 Incentive
Plan, the receipt of a copy of which you hereby acknowledge.

 

•      Your
Award of Restricted Share Units has been made in accordance with your
Employment Agreement as a material inducement to your entering into or renewing
employment with the Company or one of its subsidiaries or affiliates pursuant
to such Employment Agreement, and is also governed by any applicable terms and
conditions set forth in such Employment Agreement.

 

•      Certain
terms of your Award:

 

•      Schedule for
Vesting:  Except as otherwise
provided under the Award Terms, the Restricted Share Units awarded to you will
vest in full on March 31, 2010, provided you remain continuously employed by
the Company or one of its subsidiaries or affiliates through such date. Notwithstanding
the foregoing, the following number of the Restricted Share Units awarded to
you will vest on a date established by the Committee upon its determination
that the corresponding event has occurred, provided you remain continuously
employed by the Company or one of its subsidiaries or affiliates through such
date:

 

 

	
  No. of Restricted Share

  	
   

  	
  Event Causing

  	
   

  
	
  Units That Vest

  	
   

  	
  Restricted Share Units to Vest

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  25% of total
  number

  	
   

  	
  Achievement of “Annual Operating Plan” operating
  income objectives for the Company’s 2008
  fiscal year as established by the Committee on or prior to the 90th
  day of such fiscal year.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  25% of total
  number

  	
   

  	
  Achievement of “Annual Operating Plan” operating
  income objectives for the Company’s 2009
  fiscal year as established by the Committee on or prior to the 90th
  day of such fiscal year.

  	
   

  

 

•      Termination
Without Cause or For Good Reason Continuation Period:  24
months

 

•      Termination on
Death Acceleration Period:  24  months

 

•      To accept your Award of Restricted
Share Units, you must sign and return to the Company this Notice of Restricted
Share Unit Award, which bears an original signature on behalf of the Company. You
are urged to do so promptly.

 

•      Please return the signed Notice of
Restricted Share Unit Award to the Company at:

 

Activision, Inc.

3100 Ocean Park Boulevard

Santa Monica, CA  90405

Attn:  Stock Plan Administration

 

You
should retain the enclosed duplicate copy of this Notice of Restricted Share
Unit Award for your records.

 

2

 

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

 

	
   

  	
  ACTIVISION, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ann Weiser

  	
   

  
	
   

  	
  Title:

  	
  Chief
  Human Resources Officer

  	
   

  
	
   

  	
  Date:
  

  	
  November
  6, 2007

  	
   

  
	
   

  
	
   

  
	
  ACCEPTED AND AGREED:

  
	
   

  
	
   

  
	
  /s/ Georg L. Rose

  	
   

  
	
  George Rose

  
	
   

  
	
  Date:

  	
  November 6, 2007

  	
   

  
								

 

3

 

EXHIBIT A

 

ACTIVISION, INC.

 

AMENDED AND RESTATED 2003 INCENTIVE PLAN

 

RESTRICTED SHARE UNIT AWARD TERMS

 

1.             Definitions.

 

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

 

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

 

“Award Terms” means these
Restricted Share Unit Award Terms.

 

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

 

“Common Stock” means the Company’s
common stock, $0.000001 par value per share.

 

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

 

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

 

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

 

“Employment Agreement”
means the employment agreement between Grantee and the Company or one of its
subsidiaries or affiliates, as in effect from time to time.

 

“Employment Violation”
means any material breach by Grantee of the Employment Agreement for so long as
the terms thereof shall apply to Grantee (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.

 

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

 

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

 

 

“Grant Notice” means the Notice
of Restricted Share Unit Award to which these Award Terms are attached as Exhibit
A.

 

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

 

“Plan” means the Activision,
Inc. Amended and Restated 2003 Incentive Plan, as amended from time to time.

 

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

 

(i)            if
Grantee has received any Vested Shares during such Look-back Period and sold
such Vested Shares, an amount equal to the product of (A) the sales price per
Vested Share times (B) the number of such Vested Shares sold at such sales
price; plus

 

(ii)           if
Grantee has received any Vested Shares during such Look-back Period and not
sold such Vested Shares, an amount equal to the product of (A) the greatest of
the following: (1) the Fair Market Value per share of Common Stock on the
date such Vested Shares vested, (2) the arithmetic average of the per share
closing sales prices of Common Stock 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 12 hereof,
or (3) the arithmetic average of the per share closing sales prices of
Common Stock as reported on NASDAQ for the 30 trading day period ending on the
trading day immediately preceding the date of computation, times (B) the
number of such Vested Shares which were not sold.

 

“Restricted Share Units” means
units subject to the Award, which represent the conditional right to receive
shares of Common Stock or other securities in accordance with the Grant Notice
and these Award Terms, unless and until such units become vested or are
forfeited to the Company in accordance with the Grant Notice and these Award
Terms.

 

“Vested Shares” means shares of
Common Stock or other securities to which the holder of Restricted Stock Units
becomes entitled upon vesting thereof in accordance with Section 2 or 3
hereof.

 

“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

 

2.             Vesting. Except
as otherwise set forth in these Award Terms, the Restricted Share Units shall
vest in accordance with the “Schedule for Vesting” set forth on the Grant
Notice. Each Restricted Share Unit, upon vesting thereof, shall entitle the
holder thereof to receive one share of Common Stock (subject to adjustment
pursuant to Section 9 hereof).

 

3.             Termination of
Employment.

 

(a)           For Cause or Without
Good Reason. In the event that Grantee’s employment is terminated by the Company
or any of its subsidiaries or affiliates for Cause or by Grantee in breach of
Section 10(a) of the Employment Agreement, in each case prior to the vesting of
all Restricted Share Units, as of the date of such termination of employment
all Restricted Share Units shall cease to vest and shall immediately be
forfeited to the Company without payment of consideration by the Company.

 

(b)           Without Cause or For
Good Reason. In the event that Grantee’s employment is terminated by the Company
or any of its subsidiaries or affiliates without Cause or by Grantee for Good
Reason, in each case prior to the vesting of all Restricted Share Units,
(i) the Restricted Share Units shall continue to vest following the date
of such termination of employment in accordance with the “Schedule for Vesting”
set forth on the Grant Notice as if Grantee’s employment had continued
thereafter for the “Termination Without Cause or For Good Reason Continuation
Period” set forth on the Grant Notice and (ii) all other Restricted Share
Units shall cease to vest as of the date of such termination of employment and
shall immediately be forfeited to the Company without payment of consideration
by the Company.

 

(c)           Death. In the
event that Grantee dies while employed by the Company or any of its
subsidiaries or affiliates prior to the vesting of all Restricted Share Units,
as of the date of Grantee’s death (i) the number of Restricted Share Units
that would have ultimately vested in accordance with the “Schedule for Vesting”
set forth on the Grant Notice assuming Grantee’s employment had continued
thereafter for the “Termination on Death Acceleration Period” set forth on the
Grant Notice shall immediately vest and (ii) all other Restricted Share
Units shall cease to vest and shall immediately be forfeited to the Company
without payment of consideration by the Company.

 

(d)           Other. Unless
the Committee decides otherwise, in the event that Grantee’s employment is
terminated for any reason not addressed by Section 3(a), 3(b) or 3(c) hereof
prior to the vesting of all Restricted Share Units, as of the date of such
termination of employment all Restricted Share Units shall cease to vest and
shall immediately be forfeited to the Company without payment of consideration
by the Company.

 

4.             Tax Withholding.
The Company shall have the right to require Grantee to satisfy any Withholding
Taxes resulting from the vesting of any Restricted Share Units, the issuance or
transfer of any Vested Shares or otherwise in connection with the Award at the
time such Withholding Taxes become due. Grantee shall be entitled to satisfy
any Withholding Taxes contemplated by this Section 4 by delivery to the Company
of:  (a) a certified check or bank check
or wire transfer of immediately available funds; (b) through the delivery of
irrevocable written instructions, in form acceptable to the Company, that the
Company withhold Vested Shares otherwise then deliverable having a value equal
to the aggregate amount of the 

 

3

 

Withholding Taxes (valued
in the same manner used in computing the amount of such Withholding Taxes); or
(c) with the Company’s consent, any combination of (a) and (b) above. Notwithstanding
anything to the contrary contained herein, (i) the Company or any of its
subsidiaries or affiliates shall have the right to withhold from Grantee’s
compensation any Withholding Taxes contemplated by this Section 4 and (ii) the
Company shall have no obligation to deliver any Vested Shares unless and until
all Withholding Taxes contemplated by this Section 4 have been satisfied.

 

5.             Reservation of
Shares. The Company shall at all times reserve for issuance or delivery
upon vesting of the Restricted Share Units such number of shares of Common
Stock or other securities as shall be required for issuance or delivery upon
vesting thereof.

 

6.             Dividend
Equivalents. In the event that any cash dividends are declared and paid on
shares of Common Stock or other securities to which the holder of the
Restricted Stock Units would be entitled upon vesting thereof, such holder
shall be paid, on the payment date for such dividend, the amount that such
holder would have received if the Restricted Stock Units had vested, and the
shares of Common Stock or other securities to which such holder was thereupon
entitled had been issued and outstanding and held of record by such holder, as
of the record date for such dividend; provided, however, that no
dividend equivalents will be paid if the Restricted Stock Units have been
forfeited to the Company in accordance with Section 3 hereof prior to payment. Notwithstanding
the foregoing, in no event shall dividend equivalents be paid later than the 45th
day following the fiscal year in which dividends are paid. For purposes of the
time and form of payment requirements of Section 409A of the Code, dividend
equivalents will be treated separately from the Restricted Stock Units.

 

7.             Receipt and
Delivery.

 

(a)           As soon as
administratively practicable following the date that any Restricted Stock Units
vest in accordance with Section 2 or 3 hereof, the Company shall (i) effect the
issuance or transfer of the resulting Vested Shares, (ii) cause the issuance or
transfer of such Vested Shares to be evidenced on the books and records of the
Company, and (iii) cause such Vested Shares to be delivered to a
Company-Sponsored Equity Account in the name of the person entitled to such
Vested 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 Vested Shares are subject to a legend as set forth in Section 14
hereof, the Company shall instead cause a certificate evidencing such Vested
Shares and bearing such legend to be delivered to the person entitled thereto. For
the avoidance of doubt, it is agreed and acknowledged that Restricted Stock
Units that vest pursuant to Section 3(b) will be treated as vesting on the
applicable date(s) described in the “Schedule for Vesting” set forth on the
Grant Notice and the resulting Vested Shares shall be issued or transferred as
soon as administratively practicable following such date(s), notwithstanding
any lapse of a risk of forfeiture upon Grantee’s termination of employment. In
no event shall issuance or transfer of any resulting Vested Shares occur later
than the last day of the calendar year in which vesting of the underlying
Restricted Stock Units occurs (or, if later, the 15th day of the
third calendar month following the date on which such vesting occurs).

 

4

 

(b)           Notwithstanding Section
7(a) hereof, if the Committee determines in good faith that any such issuance,
transfer or delivery of Vested Shares to Grantee or his or her estate or beneficiaries
hereunder by reason of Grantee’s “separation from service” (as defined in
Section 409A of the Code) with the Company or any of its subsidiaries or
affiliates does not qualify for the “short-term deferral exception” or
otherwise would constitute a “deferral of compensation” under Section 409A
of the Code, Grantee is a “specified employee” (as defined in Section 409A
of the Code) and delay of payment is required by Section 409A of the Code but
is not already provided for by this Agreement, the Company shall cause the
issuance, transfer or delivery of such Vested Shares to Grantee (or Grantee’s
estate or beneficiary) upon the earlier of (a) the date that is six months
after the date of such separation from service or (b) Grantee’s death.

 

8.             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, or amend, alter, accelerate, suspend, discontinue or terminate the
Award, the Grant Notice or these Award Terms; provided, however,
that, except as provided in Section 9, 10 or 13 hereof, without the consent of
Grantee, no such amendment, alteration, suspension, discontinuation or
termination of the Award, the Grant Notice or these Award Terms may materially
and adversely affect the rights or obligations of Grantee in respect of the
Award, taken as a whole. 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. By accepting and agreeing to the Award,
Grantee consents to any amendment, alteration, suspension, discontinuation or
termination of the Award, the Grant Notice or these Award Terms that
(i) is effected in accordance with Section 9, 10 or 13 hereof or
(ii) does not materially and adversely affect the rights or obligations of
Grantee in respect of the Award, taken as a whole.

 

9.             Adjustments. Notwithstanding
anything to the contrary contained herein, to prevent the dilution or
enlargement of benefits or potential benefits intended to be made available
under the Plan, in the event of any corporate transaction or event such as a
stock dividend, extraordinary dividend or other similar distribution (whether
in the form of cash, shares of Common Stock, other securities, or other
property), recapitalization, stock split, reverse stock split, reorganization,
merger, consolidation, split-up, spin-off, combination, repurchase or exchange
of shares of Common Stock or other securities, the issuance of warrants or
other rights to purchase shares of Common Stock or other securities, or other
similar corporate transaction or event affecting shares of Common Stock, then
the Award shall be adjusted in accordance with Section 7.6 of the Plan. In
addition, the Committee is authorized to make such adjustments as it deems
appropriate in the terms and conditions of, and the criteria included in, the
Award in recognition of unusual or nonrecurring events (including, without
limitation, events described in the preceding sentence) affecting the Company
or any of its subsidiaries or affiliates or the financial statements of the Company
or any of its subsidiaries or affiliates, or in response to changes in
applicable laws, regulations or accounting principles.

 

5

 

10.           Registration and
Listing. Notwithstanding anything to the contrary contained herein, the
Company shall not be obligated to issue or transfer any Restricted Share Units
or Vested Shares, and no Restricted Share Units or Vested Shares may be 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 securities subject to the
Award 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, Restricted Share Units or Vested
Shares with the SEC, any state securities commission or any securities
exchange, securities association, market system or quotation system to effect
such compliance. Grantee 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 Restricted Share Units or
Vested Shares, to issue or transfer Restricted Share Units or Vested 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 transfer of Restricted Share
Units or Vested Shares or resale of Restricted Share Units or Vested Shares
under the Securities Act of 1933, as amended, or any comparable federal
securities law or applicable state securities law.

 

11.           Transferability.
Except as otherwise permitted under the Plan or this Section 11, the
Restricted Share Units shall not be transferable by Grantee other than by will
or the laws of descent and distribution. With the Committee’s consent, Grantee
may transfer Restricted Share Units to any one or more of the following
persons:  (a) the spouse, parent,
issue, spouse of issue, or issue of spouse (with “issue” including all
descendants, whether natural or adopted) of Grantee; (b) a trust for the
benefit of one or more persons described in clause (a) above or for the
benefit of Grantee; or (c) an entity in which Grantee or one or more of
the persons described in clause (a) or (b) above is a beneficial owner; provided,
however, that such 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.

 

12.           Employment Violation.
In the event of an Employment Violation, the Company shall have the right to
require (i) the forfeiture by Grantee to the Company of any Restricted Share
Units and (ii) payment by Grantee to the Company of the Recapture Amount
with respect to such Employment Violation; provided, however,
that, in lieu of payment by Grantee to the Company of the Recapture Amount,
Grantee, in his or her discretion, may tender to the Company the Vested Shares
acquired during the Look-back Period with respect to such Employment Violation and
Grantee shall not be entitled to receive any consideration from the Company in
exchange therefor. Any such forfeiture of Restricted Share Units 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 

 

6

 

Violation, including,
without limitation, the right to terminate Grantee’s employment if not already
terminated and to seek injunctive relief and additional monetary damages.

 

13.           Section 409A. 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 Grantee, beneficiary or any other person of a penalty tax under
Section 409A of the Code, the Committee may modify the terms of the Plan, the
Grant Notice or these Award Terms, without the consent of Grantee, in the
manner that the Committee may reasonably and in good faith determine to be
necessary or advisable to avoid the imposition of such penalty tax. 

 

14.           Legends. The
Company may, if determined by it based on the advice of counsel to be
appropriate, cause any certificate evidencing Vested 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 Grantee 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 Grantee at any time, with or
without Cause.

 

16.           No Rights as
Stockholder. No holder of Restricted Share Units 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 California, 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 Grantee and, to the extent applicable, Grantee’s permitted assigns
under Section 11 hereof 

 

7

 

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

 

20.           Notices. Any
notice or other document which Grantee 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 Grantee may
designate in writing from time to time; and (b) if to Grantee, at the address
shown in the Employment Agreement or such other address as Grantee by notice to
the Company may designate in writing from time to time. Notices shall be
effective upon receipt.

 

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.

 

8Exhibit 10.14

 

ACTIVISION, INC.

AMENDED AND RESTATED 2003 INCENTIVE PLAN

NOTICE
OF SHARE OPTION AWARD

 

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

•                  Your name:  Ann
Weiser

•                  Total number of Shares purchasable upon exercise of the Option
awarded:  200,000

•                  Exercise Price:  US $21.59 per Share

•                  Date of Grant:  September 28, 2007

•                  Expiration Date:  September 28, 2017

•                  Grant ID:  03001965

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

•                  this Notice of Share Option Award;

•                  the Share Option Award Terms attached hereto as Exhibit A (the “Award
Terms”); and

•                  the Company’s Amended and Restated 2003 Incentive Plan, the receipt of
a copy of which you hereby acknowledge.

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

•                  Certain terms of your Award:

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

 

	
  Schedule for Vesting

  	
   

  
	
  Date of Vesting

  	
   

  	
  No. of Shares Vesting at 

  Vesting Date

  	
   

  	
  Cumulative No. of Shares 

  Vested at Vesting Date

  	
   

  
	
  August
  31, 2008

  	
   

  	
  66,667

  	
   

  	
  66,667

  	
   

  
	
  August
  31, 2009

  	
   

  	
  66,667

  	
   

  	
  133,334

  	
   

  
	
  August
  31, 2010

  	
   

  	
  66,666

  	
   

  	
  200,000

  	
   

  
							

 

•                  Termination Without Cause or For
Good Reason Continuation Period:  12  months

•                  Termination on Death Acceleration
Period:  12
months

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

•                  To accept your
Award of the Option, you must sign and return to the Company this Notice of
Share 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 Share Option Award to the Company at:

Activision, Inc.

3100 Ocean Park Boulevard

Santa Monica, CA  90405

Attn:  Stock Plan Administration

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

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

	
   

  	
   

  	
  ACTIVISION,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  George L. Rose

  
	
   

  	
   

  	
  Title: 

  	
  Secretary

  
	
   

  	
   

  	
  Date: 

  	
  November 5, 2007

  
	
   

  	
   

  	
   

  
	
  ACCEPTED
  AND AGREED:

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Ann Weiser

  	
   

  	
   

  
	
  Ann Weiser

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  November 5, 2007

  	
   

  	
   

  
						

 

2

 

EXHIBIT
A

 

ACTIVISION,
INC.

AMENDED
AND RESTATED 2003 INCENTIVE PLAN

SHARE
OPTION AWARD TERMS

 

1.                                       Definitions.

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

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

“Award Terms” means these Share Option Award Terms.

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

“Common Stock” means the Company’s common stock, $0.000001 par value
per share.

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

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

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

“Employment Agreement” means the employment agreement between
the Holder and the Company or one of its subsidiaries or affiliates, as in
effect from time to time.

“Employment Violation” means any material breach by the Holder
of the Employment Agreement for so long as the terms thereof 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.

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

“Grant Notice” means the Notice of Share 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 option to purchase shares of
Common Stock awarded to the Holder on the terms and conditions described in the
Grant Notice and these Award Terms.

“Plan” means the Activision, Inc. Amended and Restated 2003
Incentive Plan, as amended from time to time.

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

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

(ii)           if
the Holder has exercised any portion of the Option during such Look-back Period
and not sold any of the Shares acquired on exercise thereafter, an amount equal
to the product of (A) the greatest of the following: (1) the Fair Market
Value per share of Common Stock on the date of exercise, (2) the arithmetic
average of the per share closing sales prices of Common Stock 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 10 hereof, or (3) the arithmetic average of the per
share closing sales prices of Common Stock 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 Option was exercised and which were not sold.

“Shares” means the shares of Common
Stock or other securities purchasable upon exercise of the Option.

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

2

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

2.                                       Expiration.  Except as
otherwise set forth in these Award Terms, the Option shall expire and no longer
be exercisable on the Expiration Date.

3.                                       Vesting and Exercise.

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

(b)           Exercisable Only by Holder; Transferability.  Except as otherwise permitted under the Plan,
the Option may be exercised during the Holder’s lifetime only by the
Holder.  With the Committee’s consent,
all or part of the Option may be transferred in accordance with Section 7.3 of
the Plan.  EXCEPT AS OTHERWISE PERMITTED
UNDER THE PLAN AND THESE AWARD TERMS, THE OPTION SHALL NOT BE TRANSFERABLE BY
THE HOLDER OTHER THAN BY WILL OR THE LAWS OF DESCENT AND DISTRIBUTION.

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

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

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

(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 

 

3

 

and records of the Company pursuant to clause (ii) of
Section 3(g) hereof following exercise of the Option.

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

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

4.                                       Termination of Employment.

(a)           For Cause or Without Good Reason.  In the event that the Holder’s employment is
terminated by the Company or any of its subsidiaries or affiliates for Cause or
by the Holder in breach of Section 10(a) of the Employment Agreement, in each
case prior to the vesting in full of the Option, as of the date of such
termination of employment the Option shall (i) cease to vest, (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 for Good Reason, in each case prior to the vesting in
full of the Option, the Option shall (i) continue to vest in accordance
with the “Schedule for Vesting” set forth on the Grant Notice as if the Holder’s
employment had continued after the date of such termination for the “Termination
Without Cause or For Good Reason Continuation Period” set forth on the Grant
Notice and (ii) to the extent vested as of the last day of the period
described in clause (i) of this Section 4(b), be exercisable in accordance with
these Award Terms until the earlier of (A) the 30th day after
that day and (B) the Expiration Date, after which the Option shall no
longer be exercisable and shall be cancelled.

(c)           Death.  In the event that the Holder dies while
employed by the Company or any of its subsidiaries or affiliates prior to the
vesting in full of the Option, the Option shall (i) vest as of the date of
the Holder’s death with respect to the number of Shares as to which the Option
would have ultimately vested in accordance with the “Schedule for Vesting” set
forth on the Grant Notice assuming the Holder’s employment had continued
thereafter for the “Termination on Death Acceleration Period” set forth on the
Grant Notice and (ii) to the extent then vested, the Option shall be
exercisable in accordance with these Award Terms until the earlier of (A) the
first anniversary of the date of the Holder’s death and (B) the Expiration
Date or, if the Expiration Date is a date within six months after the date of
the Holder’s death, the date 

 

4

 

that is six months after the Holder’s death (provided,
however, that, if the Option is intended to qualify as an incentive
stock option (as such term is defined in Section 422 of the Code), in no
instance may the term of the Option exceed any maximum term established
pursuant to the Plan with respect thereto), after which the Option shall no longer
be exercisable and shall be cancelled.

(d)           Other.  Unless the Committee decides 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 prior to the vesting in full of
the Option, the Option shall (i) cease to vest as of the date of such
termination of employment and (ii) to the extent vested as of the date of such
termination of employment, be exercisable in accordance with these Award Terms
until the earlier of (A) the 30th day after the date of such termination of
employment and (B) the Expiration Date, after which the Option shall no longer
be exercisable and shall be cancelled.

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

6.             Reservation of Shares.  The Company shall at all times reserve for
issuance or delivery upon exercise of the Option such number of shares of
Common Stock or other securities 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, or amend, alter, accelerate, suspend,
discontinue or terminate the Award, the Grant Notice or these Award Terms; provided,
however, that, except as provided in Section 8, 9 or 11  hereof, without the consent of the Holder,
no such amendment, alteration, suspension, discontinuation or termination of
the Award, the Grant 

 

5

 

Notice or these Award
Terms may materially and adversely affect the rights or obligations of the Holder
in respect of the Award, taken as a whole. 
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.  By accepting and agreeing
to the Award, the Holder consents to any amendment, alteration, suspension, discontinuation
or termination of the Award, the Grant Notice or these Award Terms that
(i) is effected in accordance with Section 8, 9  or
11 hereof or (ii) does not materially and adversely affect the
rights or obligations of the Holder in respect of the Award, taken as a whole.

8.             Adjustments.  Notwithstanding anything to the contrary
contained herein, to prevent the dilution or enlargement of benefits or
potential benefits intended to be made available under the Plan, in the event
of any corporate transaction or event such as a stock dividend, extraordinary
dividend or other similar distribution (whether in the form of cash, shares of
Common Stock, other securities, or other property), recapitalization, stock
split, reverse stock split, reorganization, merger, consolidation, split-up,
spin-off, combination, repurchase or exchange of shares of Common Stock or
other securities, the issuance of warrants or other rights to purchase shares
of Common Stock or other securities, or other similar corporate transaction or
event affecting shares of Common Stock, then the Award shall be adjusted in
accordance with Section 7.6 of the Plan. 
In addition, the Committee is authorized to make such adjustments as it
deems appropriate in the terms and conditions of, and the criteria included in,
the Award in recognition of unusual or nonrecurring events (including, without
limitation, events described in the preceding sentence) affecting the Company
or any of its subsidiaries or affiliates or the financial statements of the Company
or any of its subsidiaries or affiliates, or in response to changes in
applicable laws, regulations or accounting principles.

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

 

6

 

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

11.           Section 409A.  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,
beneficiary or any other person of a penalty tax under Section 409A of the
Code, the Committee may modify the terms of the Plan, the Grant Notice or these
Award Terms, without the consent of the Holder, in the manner that the
Committee may reasonably and in good faith determine to be necessary or
advisable to avoid the imposition of such penalty tax. 

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

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

13.           No Right to Continued 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.

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

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

 

7

 

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

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

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

19.           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.

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}]]