This excerpt taken from the ATVI 8-K filed Jul 15, 2008.
Hack Employment Agreement
On December 1, 2007, Bruce L. Hack entered into an employment agreement (the Hack Agreement) with Vivendi Holding I Corp., pursuant to which, Mr. Hack will serve as Vice Chairman and Chief Corporate Officer of the Company, effective as of July 9, 2008. The Hack Agreement became effective upon the completion of the Transactions and expires on June 30, 2010, unless terminated earlier in accordance with its terms.
Mr. Hacks annual base salary will be $1,500,000. Mr. Hack will be eligible to receive an annual bonus with a target amount of $1,000,000 and a guaranteed minimum bonus of $500,000 per fiscal year. Additionally, on July 9, 2008, he received a pro-rated bonus from Vivendi Holding I Corp. for the 2008 fiscal year as well as a $1,000,000 transaction bonus. Mr. Hack is further entitled to receive a merger integration bonus targeted at $1,000,000, subject to the achievement of specified goals and board approval.
During each year Mr. Hack remains employed and regular annual equity grants are made to Company senior executive officers, the Company has agreed to recommend to the compensation committee of the board of directors that Mr. Hack be granted an option to purchase 200,000 shares of the Companys common stock, or a similar equity award of comparable value, at the same time such regular annual equity grants are made to such other senior executive officers of the Company. The Company has agreed to recommend three such grants during the term of the Hack Agreement. Equity awards granted to Mr. Hack will be subject to the terms and conditions of the Activision Inc. 2007 Incentive Plan (the 2007 Plan); however, following the termination of the Hack Agreement, Mr. Hacks then-vested options will remain exercisable until the end of the normal term. Further, if Mr. Hack is terminated without cause or for good reason, all equity awards granted under the Hack Agreement will become immediately vested and exercisable. On July 14, 2008, Mr. Hack received a grant of 200,000 options pursuant to the 2007 Plan. The options have an exercise price of $32.94, vest ratably over three years beginning on the first anniversary of the date of grant, and have a ten-year term.
Mr. Hack is also eligible to participate in all benefit and perquisite plans, programs, and arrangements generally made available to the Companys executives. Mr. Hack is also eligible to receive certain severance benefits in the event his employment is terminated on or prior to June 30, 2010.