Document:

Exhibit
10.19

ACTIVISION, INC.

AMENDED AND RESTATED 2003
INCENTIVE PLAN

NOTICE OF SHARE OPTION AWARD

(NON-EMPLOYEE DIRECTOR FORM)

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

	
  ·      Your name:

  	
  [

  	
   

  	
  ]

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
  ·      Total number of Shares purchasable upon
  exercise of the Option awarded:

  	
  [

  	
   

  	
  ]

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
  ·      Exercise Price:  US $

  	
  [

  	
   

  	
  ]
  per Share

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
  ·      Date of Grant:

  	
  [

  	
   

  	
  ]

  
	
   

  	
   

  	
   

  	
   

  	 

	
  ·      Expiration Date:

  	
  [

  	
   

  	
  ]

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
  ·      Grant ID:

  	
  [

  	
   

  	
  ]

  	 

																			

 

·                  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.

·                  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 serve as a member of the Board 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

  	
   

  
	
  First
  anniversary of Date of Grant

  	
   

  	
  [

  	
   

  	
  ]

  	
   

  	
  [

  	
   

  	
  ]

  	
   

  
	
  Second
  anniversary of Date of Grant

  	
   

  	
  [

  	
   

  	
  ]

  	
   

  	
  [

  	
   

  	
  ]

  	
   

  
	
  Third anniversary of
  Date of Grant

  	
   

  	
  [

  	
   

  	
  ]

  	
   

  	
  [

  	
   

  	
  ]

  	
   

  

 

·                  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:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  Date:

  	
   

  
					

 

ACCEPTED
AND AGREED:

	
  

  	
   

  	
   

  	
   

  
	
  [Name of Holder]

  

 

 2

EXHIBIT
A

ACTIVISION,
INC.

AMENDED
AND RESTATED 2003 INCENTIVE PLAN

SHARE
OPTION AWARD TERMS

(NON-EMPLOYEE DIRECTOR FORM)

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.

“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.

“Disability” means “permanent
and total disability” as defined in section 22(e)(3) of the Code, as
interpreted by the Company (with such interpretation to be final, conclusive
and binding for purposes of these Award Terms).

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

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

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

“Grant Notice” means the Notice
of 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.

“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.

“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.

(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 

 2
 

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 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
10 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 Service.

(a)           Death or Disability.  In the event that the Holder dies during his
term as a member of the Board or the Holder ceases to serve as a member of the
Board due to the Holder’s Disability, in each case prior to the vesting in full
of the Option, the Option shall (i) cease to vest as of the date of the
Holder’s death or the first date of
such Disability (as determined by the Committee), as the case may be,
and (ii) to the extent vested as of the date of the Holder’s death or such
first date of such Disability, as the case may be, be exercisable in accordance
with these Award Terms until the earlier of (A) the first anniversary of
the date of the Holder’s death or such cessation of service, as the case may
be, and (B) the Expiration Date or, if the Expiration Date is a date
within six months after the date of the Holder’s death or such cessation of
service, the date that is six months after the Holder’s death or such cessation
of service, as the case may be, after which the Option shall no longer be
exercisable and shall be cancelled.

(b)           Other.  Unless the Committee  decides
otherwise, in the event that the Holder’s service as a member of the Board is
terminated for any reason not addressed by Section 4(a) 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 service and (ii) to the extent vested
as of the date of such termination of service, be exercisable in accordance
with these Award Terms until the earlier of 

 3
 

(A) the 30th day after the date of such termination of
service 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.

 4
 

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 or 9 hereof, without the consent of the Holder, 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 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 such
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  or 9  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.  It is intended that the Award will not be
subject to any adverse consequences under Section 409A of the Code; however,
the Committee is authorized to make such adjustments as it deems appropriate to
the terms and conditions of the Award in order to prevent the Award from
becoming subject to any adverse consequences under Section 409A of the Code.

9.             Registration and Listing.  Notwithstanding anything to the contrary
contained herein, the Option may not 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 

 5
 

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.

10.           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.”

11.           No Right to Continued Service.  Nothing contained in the Grant Notice or
these Award Terms shall be construed to confer upon the Holder any right to
continued service on the Board or derogate from any right of the Company’s
stockholders to remove the Holder from the Board at any time, with or without cause.

12.           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.

13.           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.

14.           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.

15.           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) 

 6
 

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

16.           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 on the records of the Company 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.

17.           Conflict with Plan.  In the event of any conflict between the terms
of the Grant Notice or these Award Terms and the terms of the Plan, the terms
of the Plan shall control.

 7Exhibit 10.20

ACTIVISION, INC.

AMENDED
AND RESTATED 2003 INCENTIVE PLAN

NOTICE
OF RESTRICTED SHARE AWARD

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

	
  ·      Your name:

  	
  [

  	
   

  	
  ]

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
  ·      Total number of Restricted Shares
  awarded:

  	
  [

  	
   

  	
  ]

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
  ·      Date of Grant:

  	
  [

  	
   

  	
  ]

  
	
   

  	
   

  	
   

  	
   

  	 

	
  ·      Grant ID:

  	
  [

  	
   

  	
  ]

  	 

														

 

·                  Your Award of
Restricted Shares is governed by the terms and conditions set forth in:

·                  this Notice of
Restricted Share Award;

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

·                  Certain terms of
your Award:

·                  Schedule for Lapse of Restrictions:  Except as otherwise provided under the Award
Terms, the Restrictions on the Restricted Shares awarded to you will lapse as
follows, provided you remain continuously employed by the Company or one of its
subsidiaries or affiliates through each such date:

Schedule for Lapse of Restrictions

	
  Date on which

  	
   

  	
  No. of Restricted Shares

  	
   

  
	
  Restrictions Lapse

  	
   

  	
  as to which Restrictions Lapse

  	
   

  
	
  First
  anniversary of Date of Grant

  	
   

  	
  [

  	
   

  	
  ]

  	
   

  
	
  Second
  anniversary of Date of Grant

  	
   

  	
  [

  	
   

  	
  ]

  	
   

  
	
  Third
  anniversary of Date of Grant

  	
   

  	
  [

  	
   

  	
  ]

  	
   

  
	
  [Fourth
  anniversary of Date of Grant]

  	
   

  	
  [

  	
   

  	
  ]

  	
   

  
	
  [Fifth anniversary of
  Date of Grant]

  	
   

  	
  [

  	
   

  	
  ]

  	
   

  

 

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

·                  If you wish to
include the value of the Restricted Shares in your taxable income for the current
calendar year, you must complete and sign the Section 83(b) Election Form
attached hereto as Exhibit B and both (1) file a copy of it with
the Internal Revenue Service Center at which you file your federal income tax
return and (2) return a copy of it to the Company, in each case no
later than the 30th day after the Date of Grant.

·                  Please return all items to be returned to the Company at:

Activision, Inc.

3100 Ocean Park Boulevard

Santa Monica, CA  90405

Attn:  Stock Plan Administration

You should retain (1) the
enclosed duplicate copy of this Notice of Restricted Share Award for your
records and (2) if applicable, two copies of your completed Section 83(b)
Election Form, (a) one copy of which should be filed with the Internal
Revenue Service Center at which you file your federal income tax return no
later than 30th day after the Date of Grant as described above
and (b) one copy of which should be submitted with your federal income tax
return for the current calendar year.

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

	
  

  	
  ACTIVISION,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  Date:

  	
   

  
					

 

ACCEPTED
AND AGREED:

	
  

  	
   

  	
   

  	
   

  
	
  [Name of Grantee]

  
	
   

  
	
  Date:

  	
   

  	
   

  
					

 

 2

EXHIBIT
A

ACTIVISION,
INC.

AMENDED
AND RESTATED 2003 INCENTIVE PLAN

RESTRICTED
SHARE AWARD TERMS

(NON-OFFICER FORM)

1.             Definitions.

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

“Additional Shares” means any
additional shares of Common Stock or other securities issued in respect of
Restricted Shares in connection with any adjustment pursuant to Section 10
hereof.

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

“Award Terms” means these
Restricted Share Award Terms.

“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 Violation”
means any material breach by Grantee of his or her employment agreement with
the Company or one of its subsidiaries or affiliates for so long as the terms
of such employment agreement 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.

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

“Grant Notice” means the Notice
of Restricted Share 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 lapses of the Restrictions 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 the Restrictions lapsed with respect to such Vested Shares, (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 13 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 Book Entry” means a
book entry on the Company’s stock register maintained by its transfer agent and
registrar, which book entry shall bear a notation regarding the Restrictions as
set forth in Section 14(a) hereof and, if appropriate, a notation regarding
securities law restrictions as set forth in Section 14(b) hereof.

“Restricted Shares” means shares
of Common Stock or other securities subject to the Award (including any
Additional Shares) as to which the Restrictions have not lapsed and which have
not been forfeited to the Company in accordance with the Grant Notice and these
Award Terms.

“Restrictions” means the
restrictions set forth in Section 2 hereof.

“Section 83(b) Election” means
an election under Section 83(b) of the Code, or any successor provision
thereto, to include the value of the Restricted Shares in taxable income for
the calendar year in which the Award is granted.

“Vested Shares” means shares of
Common Stock or other securities subject to the Award (including any Additional
Shares) as to which the Restrictions have lapsed in accordance with Section 3
or 4 hereof.

 2
 

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

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

2.             Restrictions. 
None of the shares of Common Stock or other securities subject to the
Award (including any Additional Shares), or any right or privilege pertaining
thereto, may be sold, assigned, transferred, pledged, hypothecated or otherwise
disposed of or encumbered in any way not expressly permitted by these Award
Terms, or subjected to execution, attachment or similar process, unless and
until such restrictions thereon lapse pursuant to Section 3 or 4 hereof.  Any attempt to sell, assign, transfer,
pledge, hypothecate or otherwise dispose of or encumber any such shares of
Common Stock or other securities, or any right or privilege pertaining thereto,
in any way not expressly permitted by these Award Terms before such
restrictions thereon lapse pursuant to Section 3 or 4 hereof shall be null and
void and of no force and effect.

3.             Lapse of Restrictions.  Except as otherwise set forth in these Award
Terms, the Restrictions shall lapse in accordance with the “Schedule for Lapse
of Restrictions” set forth on the Grant Notice.

4.             Termination of Employment.  Unless the Committee  decides otherwise, in the event that
Grantee’s employment is terminated for any reason prior to the lapse of the
Restrictions, as of the date of such termination of employment the Restrictions
shall cease to lapse and all Restricted Shares shall immediately be forfeited
to the Company without payment of consideration by the Company.

5.             Tax Withholding.  The Company shall have the right to require
Grantee to satisfy any Withholding Taxes resulting from the lapse of the
Restrictions, from any Section 83(b) Election 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 5 (a) by delivery to the Company
of a certified check or bank check or wire transfer of immediately available
funds; (b) with the Company’s consent, 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 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 5 and (ii) the Company shall have no obligation to deliver any Vested
Shares unless and until all Withholding Taxes contemplated by this Section 5
have been satisfied.

6.             Voting Rights.  The holder of the Restricted Shares shall be
entitled to the voting privileges associated therewith.

 3
 

7.             Dividends.  Any cash dividends declared and paid on the
Restricted Shares shall be paid to the holder thereof concurrently with the
payment of such dividends to all other record holders of Common Stock.

8.             Receipt and Delivery; Removal of
Restrictions.  Restricted Shares
shall be evidenced by a Restricted Book Entry in the name of the holder of the
Restricted Shares.  Restricted Shares
shall become Vested Shares at such time as the Restrictions thereon lapse in
accordance with the Grant Notice and these Award Terms.  As soon as practicable after the Restrictions
on any Restricted Shares lapse, the Company shall cause the legend regarding
the Restrictions set forth in Section 14(a) hereof to be removed from the
resulting Vested Shares and cause the resulting 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 regarding
securities law restrictions as set forth in Section 14(b) hereof, the Company
shall instead cause a certificate evidencing such Vested Shares and bearing
such legend to be delivered to the person entitled thereto.

9.             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 10
or 11 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 such amendment, alteration, suspension, discontinuation
or termination of the Award, the Grant Notice or these Award Terms that
(i) is effected in accordance with Section 10 or 11 hereof or
(ii) does not materially and adversely affect the rights or obligations of
Grantee in respect of the Award, taken as a whole.

10.           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

 4
 

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.  It is intended that the Award will not be
subject to any adverse consequences under Section 409A of the Code; however,
the Committee is authorized to make such adjustments as it deems appropriate to
the terms and conditions of the Award in order to prevent the Award from
becoming subject to any adverse consequences under Section 409A of the
Code.  Any Additional Shares issued in
connection with an adjustment pursuant to this Section 10 shall be subject to
the same Restrictions, and provisions with respect to the lapse thereof, as the
Restricted Shares in respect of which such Additional Shares were issued.

11.           Registration and Listing.  Notwithstanding anything to the contrary
contained herein, the Company shall not be obligated to issue or transfer any
Restricted Shares 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 Shares 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 Shares or
Vested Shares, to issue or transfer Restricted Shares 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 Shares or Vested Shares or resale of Restricted
Shares or Vested Shares under the Securities Act of 1933, as amended, or any
comparable federal securities law or applicable state securities law.

 5
 

12.           Transferability.  Notwithstanding the Restrictions, with the
Committee’s consent, Grantee may transfer Restricted Shares 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 Restricted Shares shall remain
subject to the Restrictions in the hands of the transferee and 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.

13.           Employment Violation.  The terms of this Section 13 shall apply
to the Restricted Shares if Grantee is or becomes subject to an employment
agreement with the Company or any of its subsidiaries or affiliates.  In the event of an Employment Violation, the
Company shall have the right to require (a) the forfeiture by Grantee to the
Company of any Restricted Shares and (b) 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 Shares 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 Grantee’s employment if not already
terminated and to seek injunctive relief and additional monetary damages.

14.           Legends.

(a)           Restrictions.  The Company shall cause any Restricted Book
Entry evidencing the Restricted Shares to bear a notation substantially as
follows:

“THE SALE OR TRANSFER OF THE SHARES OF COMMON STOCK
REPRESENTED HEREBY, WHETHER VOLUNTARY, INVOLUNTARY OR BY OPERATION OF LAW, IS
SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AS SET FORTH IN THE ACTIVISION,
INC. AMENDED AND RESTATED 2003 INCENTIVE PLAN (THE “PLAN”), AND IN THE
ASSOCIATED NOTICE OF RESTRICTED SHARE AWARD, INCLUDING THE RESTRICTED SHARE
AWARD TERMS ATTACHED THERETO (THE “AWARD NOTICE”).  A COPY OF THE PLAN AND AWARD NOTICE MAY BE
OBTAINED FROM ACTIVISION, INC.”

(b)           Securities Laws.  The Company may, if determined by it based on
the advice of counsel to be appropriate, cause any Restricted Book Entry
evidencing Restricted Shares or any certificate evidencing Vested Shares to
bear a notation or legend, as the case may be, substantially as follows:

 6
 

“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.           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.

17.           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.

18.           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 12 hereof and  Grantee’s estate or beneficiary(ies) as determined by will or
the laws of descent and distribution.

19.           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 on any employment agreement or offer
letter between Grantee and the Company or any of its subsidiaries or affiliates
in effect from time to time, 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.

20.           Conflict with Employment Agreement
or Plan.  In the event of any
conflict between the terms of any employment agreement or offer letter between
Grantee and the Company or any of its subsidiaries or affiliates in effect from
time to time 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 any employment agreement or offer letter between Grantee
and the Company or any of its subsidiaries or affiliates in effect from time to
time, the Grant Notice or these Award Terms and the terms of the Plan, the
terms of the Plan shall control.

 7

EXHIBIT
B

ACTIVISION,
INC.

AMENDED
AND RESTATED 2003 INCENTIVE PLAN

SECTION
83(b) ELECTION FORM

Election to Include Value
of Restricted Property in Gross Income

in Year of Transfer under Internal Revenue Code § 83(b)

The undersigned (the “Taxpayer”) hereby makes an election pursuant to Section 83(b) of
the Internal Revenue Code of 1986, as amended, with respect to the property
described below and supplies the following information in accordance with the
applicable federal income tax regulations:

1.             The name, address and
taxpayer identification number of the Taxpayer are:

	
  Name: 

  	
  [

  	
   

  	
  ]

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Taxpayer I.D. Number:

  	
   

  	
   

  
						

 

2.             Description of property with respect to which
the election is being made:

[_______] shares of
Common Stock, par value $0.000001 per share, of Activision, Inc., a Delaware
corporation (the “Company”).

3.             Date of transfer; taxable year:  The date on which property was transferred is
[____________].  The taxable year to which this election
relates is calendar year [______].

4.             The nature of the restrictions to which the
property is subject:  The
property is subject to transfer restrictions by virtue of an agreement between
the Taxpayer and the Company, and the book entry on the Company’s stock
register evidencing the property bears a notation to that effect.  Except as otherwise described below, the
restrictions on the property will lapse as follows:

Schedule
for Lapse of Restrictions

	
  Date on which

  	
   

  	
  Number of Shares

  	
   

  
	
  Restrictions Lapse

  	
   

  	
  as to which Restrictions Lapse

  	
   

  
	
  First anniversary of
  Date of Grant

  	
   

  	
  [

  	
   

  	
  ]

  	
   

  
	
  Second anniversary of
  Date of Grant

  	
   

  	
  [

  	
   

  	
  ]

  	
   

  
	
  Third anniversary of
  Date of Grant

  	
   

  	
  [

  	
   

  	
  ]

  	
   

  
	
  [Fourth anniversary of Date of
  Grant]

  	
   

  	
  [

  	
   

  	
  ]

  	
   

  
	
  [Fifth anniversary of Date of Grant]

  	
   

  	
  [

  	
   

  	
  ]

  	
   

  

 

Unless the Company decides otherwise, in the event
that Taxpayer’s employment is terminated for any reason, as of the date of such
termination of employment the restrictions will 

cease to lapse and all restricted property will immediately
be forfeited to the Company without payment of consideration by the Company.

5.             Fair market value:  The fair market value at time of transfer
(determined without regard to any restrictions other than restrictions which by
their terms will never lapse) of the property with respect to which this
election is being made is $[_______]
per share.

6.             Amount paid for property:  Taxpayer did not pay any cash amount for the
property.

7.             Furnishing statement to employer:  A copy of this statement has been furnished
to the Company.

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature of Taxpayer

  

 

 2
 

Instructions for Section 83(b) Election Form

1.                                       The
form must be filed with the Internal Revenue Service Center (or other IRS
office) at which the Taxpayer files his or her federal income tax return and
with the Company, in each case no later than the 30th day after the date of grant set forth on the
Notice of Restricted Share Award to which this Section 83(b) Election Form
is attached as Exhibit B.

2.                                       In
addition, the Taxpayer must submit one copy of the form with his or her federal
income tax return for the year in which the date of grant occurred.

3.                                       The
Section 83(b) election, once made, is irrevocable, unless the Internal Revenue
Service consents to the revocation.

4.                                       The
Taxpayer must sign the form.

 3

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