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| | | | A-1 | | | |
| | | | B1-1 | | | |
| | | | B2-1 | | | |
| | | | C-1 | | |
| | | Implied Premium Represented by the $12.50 in cash per Share of Glu Common Stock | | |||
Reference Price Per Share of Common Stock: | | | | | | | |
February 5, 2021 Closing Price of $9.19 | | | | | 36% | | |
30-Day VWAP of $9.14 | | | | | 37% | | |
90-Day VWAP of $9.17 | | | | | 36% | | |
6-Month VWAP of $8.32 | | | | | 50% | | |
52-Week High of $10.50 | | | | | 19% | | |
Implied Enterprise Value as a Multiple of: | | | Multiples | | |||
2021E Bookings (Studio Plan) | | | | | 2.9x | | |
2021E Bookings (Sensitivity Case) | | | | | 3.5x | | |
2021E Bookings (IBES) | | | | | 3.4x | | |
2021E EBITDA (Studio Plan) | | | | | 16.9x | | |
2021E EBITDA (Sensitivity Case) | | | | | 23.6x | | |
2021E EBITDA (IBES) | | | | | 20.6x | | |
Announced | | | Acquiror | | | Target | | | Enterprise Value / LTM EBITDA | |
13-Dec-20 | | | Electronic Arts Inc. | | | Codemasters Group Holdings PLC | | | 29.9x | |
27-Aug-20 | | | Tencent Holdings Ltd. | | | Leyou Technologies Holdings Ltd. | | | 15.8x | |
30-Nov-17 | | | Aristocrat Leisure Ltd. | | | Big Fish Games, Inc. | | | 11.9x | |
17-Apr-17 | | | DoubleU Games Co., Ltd. | | | Double Down Interactive LLC | | | 10.5x | |
30-Jul-16 | | | Giant Investment Co., Ltd. | | | Playtika Holdings, LLC | | | 13.0x | |
21-Jun-16 | | | Tencent Holdings Ltd. | | | Supercell Oy. | | | 9.8x | |
2-Nov-15 | | | Activision Blizzard, Inc. | | | King Digital Entertainment plc | | | 5.6x | |
| | | Median | | | | | | 11.9x | |
| | | Mean | | | | | | 13.8x | |
| | | High | | | | | | 29.9x | |
| | | Low | | | | | | 5.6x | |
| | | Implied Premium Represented by the $12.50 in cash per Share of Glu Common Stock | | |||
Reference Price Per Share of Common Stock: | | | | | | | |
February 5, 2021 Closing Price of $9.19 | | | | | 36% | | |
30-Day VWAP of $9.14 | | | | | 37% | | |
90-Day VWAP of $9.17 | | | | | 36% | | |
6-Month VWAP of $8.32 | | | | | 50% | | |
52-Week High of $10.50 | | | | | 19% | | |
Implied Enterprise Value as a Multiple of: | | | Multiples | | |||
2021E Bookings (Studio Plan) | | | | | 2.9x | | |
2021E Bookings (Sensitivity Case) | | | | | 3.5x | | |
2021E Bookings (IBES) | | | | | 3.4x | | |
2021E EBITDA (Studio Plan) | | | | | 16.9x | | |
2021E EBITDA (Sensitivity Case) | | | | | 23.6x | | |
2021E EBITDA (IBES) | | | | | 20.6x | | |
| | | Premium to Undisturbed Price | | | Premium to 52-Week High | | ||||||
Entire Period | | | | | | | | | | | | | |
Top Quartile | | | | | 44% | | | | | | 14% | | |
Median | | | | | 26% | | | | | | 5% | | |
Bottom Quartile | | | | | 15% | | | | | | (2)% | | |
Calendar Years | | | | | | | | | | | | | |
2015 median | | | | | 32% | | | | | | 5% | | |
2016 median | | | | | 30% | | | | | | 2% | | |
2017 median | | | | | 25% | | | | | | 7% | | |
2018 median | | | | | 25% | | | | | | 7% | | |
2019 median | | | | | 21% | | | | | | 0% | | |
2020 median | | | | | 27% | | | | | | 3% | | |
2021 year to date median | | | | | 41% | | | | | | 0% | | |
Announced | | | Acquiror | | | Target | | | Enterprise Value / LTM EBITDA | |
13-Dec-20 | | | Electronic Arts Inc. | | | Codemasters Group Holdings PLC | | | 29.9x | |
27-Aug-20 | | | Tencent Holdings Ltd. | | | Leyou Technologies Holdings Ltd. | | | 15.8x | |
30-Nov-17 | | | Aristocrat Leisure Ltd. | | | Big Fish Games, Inc. | | | 11.9x | |
17-Apr-17 | | | DoubleU Games Co., Ltd. | | | Double Down Interactive LLC | | | 10.5x | |
30-Jul-16 | | | Giant Investment Co., Ltd. | | | Playtika Holdings, LLC | | | 13.0x | |
21-Jun-16 | | | Tencent Holdings Ltd. | | | Supercell Oy. | | | 9.8x | |
2-Nov-15 | | | Activision Blizzard, Inc. | | | King Digital Entertainment plc | | | 5.6x | |
| | | Median | | | | | | 11.9x | |
| | | Mean | | | | | | 13.8x | |
| | | High | | | | | | 29.9x | |
| | | Low | | | | | | 5.6x | |
| | | Implied Premium Represented by the $12.50 in cash per Share of Glu Common Stock | | |||
Reference Price Per Share of Common Stock: | | | | | | | |
February 5, 2021 Closing Price of $9.19 | | | | | 36% | | |
30-Day VWAP of $9.14 | | | | | 37% | | |
90-Day VWAP of $9.17 | | | | | 36% | | |
6-Month VWAP of $8.32 | | | | | 50% | | |
52-Week High of $10.50 | | | | | 19% | | |
Implied Enterprise Value as a Multiple of: | | | Multiples | | |||
2021E Bookings (Studio Plan) | | | | | 2.9x | | |
2021E Bookings (Sensitivity Case) | | | | | 3.5x | | |
2021E Bookings (IBES) | | | | | 3.4x | | |
2021E EBITDA (Studio Plan) | | | | | 16.9x | | |
2021E EBITDA (Sensitivity Case) | | | | | 23.6x | | |
2021E EBITDA (IBES) | | | | | 20.6x | | |
Announced | | | Acquiror | | | Target | | | Enterprise Value / LTM EBITDA | |
13-Dec-20 | | | Electronic Arts Inc. | | | Codemasters Group Holdings PLC | | | 29.9x | |
27-Aug-20 | | | Tencent Holdings Ltd. | | | Leyou Technologies Holdings Ltd. | | | 15.8x | |
30-Nov-17 | | | Aristocrat Leisure Ltd. | | | Big Fish Games, Inc. | | | 11.9x | |
17-Apr-17 | | | DoubleU Games Co., Ltd. | | | Double Down Interactive LLC | | | 10.5x | |
30-Jul-16 | | | Giant Investment Co., Ltd. | | | Playtika Holdings, LLC | | | 13.0x | |
21-Jun-16 | | | Tencent Holdings Ltd. | | | Supercell Oy. | | | 9.8x | |
2-Nov-15 | | | Activision Blizzard, Inc. | | | King Digital Entertainment plc | | | 5.6x | |
| | | Median | | | | | | 11.9x | |
| | | Mean | | | | | | 13.8x | |
| | | High | | | | | | 29.9x | |
| | | Low | | | | | | 5.6x | |
| | | Premium to Undisturbed Price | | | Premium to 52-Week High | | ||||||
Entire Period | | | | | | | | | | | | | |
Top Quartile | | | | | 44% | | | | | | 14% | | |
Median | | | | | 26% | | | | | | 5% | | |
Bottom Quartile | | | | | 15% | | | | | | (2)% | | |
Calendar Years | | | | | | | | | | | | | |
2015 median | | | | | 32% | | | | | | 5% | | |
2016 median | | | | | 30% | | | | | | 2% | | |
2017 median | | | | | 25% | | | | | | 7% | | |
2018 median | | | | | 25% | | | | | | 7% | | |
2019 median | | | | | 21% | | | | | | 0% | | |
2020 median | | | | | 27% | | | | | | 3% | | |
2021 year to date median | | | | | 41% | | | | | | 0% | | |
| | | AV to Estimated 2021 EBITDA | | |||
Gaming Peers | | | | | | | |
Activision Blizzard, Inc. | | | | | 21.6x | | |
Electronic Arts | | | | | 16.2x | | |
Take-Two Interactive Software, Inc. | | | | | 25.7x | | |
SciPlay Corporation | | | | | 11.0x | | |
Zynga Inc. | | | | | 18.7x | | |
Glu | | | | | | | |
Studio Plan | | | | | 11.5x | | |
Board Plan | | | | | 13.4x | | |
Sensitivity Case | | | | | 16.0x | | |
| | | AV to Estimated 2021 Adjusted EBITDA Multiple Ranges | | | Implied Value Per Share of Glu Common Stock ($) | |
Studio Plan | | | 14.0x – 18.0x | | | 10.70 – 13.15 | |
Board Plan | | | 13.0x – 17.0x | | | 8.96 – 11.06 | |
Sensitivity Case | | | 12.0x – 16.0x | | | 7.42 – 9.18 | |
Based on Calendar Year 2023 Estimated Adjusted EBITDA | | | Selected AV / Adjusted EBITDA Multiple Ranges | | | Implied Value Per Share of Glu Common Stock ($) | |
Studio Plan | | | 14.0x – 18.0x | | | 17.05 – 21.15 | |
Board Plan | | | 13.0x – 17.0x | | | 13.90 – 17.40 | |
Sensitivity Case | | | 12.0x – 16.0x | | | 8.32 – 10.33 | |
| | | Implied Value Per Glu Share of Common Stock ($) | |
Studio Plan | | | 13.61 – 22.25 | |
Board Plan | | | 11.61 – 18.72 | |
Sensitivity Case | | | 6.52 – 9.63 | |
Selected Gaming Transactions (Target/Acquiror) | | | AV / LTM EBITDA | | |||
Big Fish Games, Inc. / Aristocrat Leisure Australia Pty Ltd. | | | | | 11.9x | | |
Codemasters Software Company Ltd. / Electronic Arts | | | | | 29.9x | | |
Double Down Interactive LLC / DoubleU Games Co., Ltd. | | | | | 10.5x | | |
King.com Ltd. / Activision Blizzard, Inc. | | | | | 5.6x | | |
Playtika Ltd. / Giant Network Group Co., Ltd. | | | | | 13.0x | | |
LeYou Technologies Holding Ltd. / Tencent Holdings Ltd. | | | | | 15.8x | | |
Supercell Oy / Tencent Holdings Ltd. | | | | | 9.8x | | |
Precedent Multiples | | | Representative Ranges | | | Implied Value Per Share of Glu Common Stock ($) | | ||||||
AV to Estimated LTM Adjusted EBITDA | | | | | 8.0x – 13.0x | | | | | | 5.21 – 7.12 | | |
Premia | | | Representative Ranges | | | Implied Value Per Share of Glu Common Stock ($) | |
Premia to 1-Day Unaffected Share Price | | | 15% – 45% | | | 10.57 – 13.33 | |
Premia to 30-Day Unaffected Average Share Price | | | 20% – 50% | | | 10.99 – 13.73 | |
Periods Ended February 5, 2021 | | | Range of Trading Prices Per Share of Glu Common Stock ($) | |
Last 30 Trading Days | | | 8.64 – 9.92 | |
Last 12 Months | | | 4.53 – 10.50 | |
| | | 2021E | | | 2022E | | | 2023E | | | 2024E | | | 2025E | | |||||||||||||||
Bookings(1) | | | | $ | 700 | | | | | $ | 854 | | | | | $ | 1,025 | | | | | $ | 1,210 | | | | | $ | 1,403 | | |
Gross profit | | | | | 472 | | | | | | 581 | | | | | | 701 | | | | | | 829 | | | | | | 967 | | |
Total operating expenses | | | | | (356) | | | | | | (411) | | | | | | (473) | | | | | | (558) | | | | | | (647) | | |
Net income | | | | | 58 | | | | | | 112 | | | | | | 133 | | | | | | 161 | | | | | | 197 | | |
Adjusted EBITDA(2) | | | | | 122 | | | | | | 176 | | | | | | 236 | | | | | | 281 | | | | | | 331 | | |
Stock-based compensation | | | | | (30) | | | | | | (31) | | | | | | (33) | | | | | | (35) | | | | | | (36) | | |
Capital expenditures | | | | | (3) | | | | | | (6) | | | | | | (8) | | | | | | (10) | | | | | | (12) | | |
Decrease (increase) in net working capital | | | | | (32) | | | | | | 7 | | | | | | (15) | | | | | | (15) | | | | | | (15) | | |
Taxes(3) | | | | | (2) | | | | | | 0 | | | | | | (33) | | | | | | (43) | | | | | | (52) | | |
Unlevered free cash flow (excluding NOL impact)(4) | | | | | 39 | | | | | | 117 | | | | | | 139 | | | | | | 172 | | | | | | 208 | | |
Unlevered free cash flow (including NOL impact)(4) | | | | | 56 | | | | | | 146 | | | | | | 147 | | | | | | 179 | | | | | | 215 | | |
| | | 2021E | | | 2022E | | | 2023E | | | 2024E | | | 2025E | | |||||||||||||||
Bookings(1) | | | | $ | 680 | | | | | $ | 803 | | | | | $ | 931 | | | | | $ | 1,061 | | | | | $ | 1,189 | | |
Gross profit | | | | | 460 | | | | | | 542 | | | | | | 634 | | | | | | 728 | | | | | | 819 | | |
Total operating expenses | | | | | (361) | | | | | | (396) | | | | | | (439) | | | | | | (489) | | | | | | (548) | | |
Net income | | | | | 43 | | | | | | 95 | | | | | | 119 | | | | | | 142 | | | | | | 167 | | |
Adjusted EBITDA(2) | | | | | 104 | | | | | | 153 | | | | | | 202 | | | | | | 247 | | | | | | 281 | | |
Stock-based compensation | | | | | (30) | | | | | | (31) | | | | | | (33) | | | | | | (35) | | | | | | (36) | | |
Capital expenditure | | | | | (6) | | | | | | (6) | | | | | | (8) | | | | | | (10) | | | | | | (12) | | |
Decrease (increase) in net working capital | | | | | (10) | | | | | | (12) | | | | | | (11) | | | | | | (11) | | | | | | (10) | | |
Taxes(3) | | | | | (2) | | | | | | 0 | | | | | | (20) | | | | | | (38) | | | | | | (45) | | |
Unlevered free cash flow (including NOL impact)(4) | | | | | 57 | | | | | | 104 | | | | | | 130 | | | | | | 153 | | | | | | 178 | | |
| | | 2021E | | | 2022E | | | 2023E | | | 2024E | | | 2025E | | |||||||||||||||
Bookings(1) | | | | $ | 584 | | | | | $ | 637 | | | | | $ | 688 | | | | | $ | 736 | | | | | $ | 780 | | |
Gross profit | | | | | 387 | | | | | | 422 | | | | | | 460 | | | | | | 496 | | | | | | 528 | | |
Total operating expenses | | | | | (305) | | | | | | (326) | | | | | | (349) | | | | | | (367) | | | | | | (384) | | |
Net Income | | | | | 44 | | | | | | 56 | | | | | | 68 | | | | | | 70 | | | | | | 78 | | |
Adjusted EBITDA(2) | | | | | 88 | | | | | | 102 | | | | | | 116 | | | | | | 134 | | | | | | 150 | | |
Stock-based compensation | | | | | (30) | | | | | | (31) | | | | | | (33) | | | | | | (35) | | | | | | (36) | | |
Capital expenditure | | | | | (6) | | | | | | (6) | | | | | | (8) | | | | | | (10) | | | | | | (12) | | |
Decrease (increase) in net working capital | | | | | (3) | | | | | | (4) | | | | | | (4) | | | | | | (4) | | | | | | (4) | | |
Taxes(3) | | | | | (2) | | | | | | 0 | | | | | | 0 | | | | | | (15) | | | | | | (21) | | |
Unlevered free cash flow (excluding NOL impact)(4) | | | | | 38 | | | | | | 46 | | | | | | 55 | | | | | | 66 | | | | | | 75 | | |
Unlevered free cash flow (including NOL impact)(4) | | | | | 47 | | | | | | 60 | | | | | | 71 | | | | | | 71 | | | | | | 77 | | |
Named Executive Officer | | Cash($)(1) | | Equity Awards($)(2) | | Heath Insurance Premiums($)(3) | | Total($) | | | Cash($)(1) | | Equity Awards($)(2) | | Heath Insurance Premiums($)(3) | | Total($) | | ||||||||||||||||||||||||||||||||
Nick Earl | | | $ | 950,000 | | | | $ | 16,717,109 | | | | $ | 20,467 | | | | $ | 17,687,576 | | | | | $ | 950,000 | | | | $ | 17,490,234 | | | | $ | 20,467 | | | | $ | 18,460,701 | | | ||||||||
Eric R. Ludwig | | | $ | 750,000 | | | | $ | 8,527,252 | | | | $ | 33,607 | | | | $ | 9,310,859 | | | | | $ | 750,000 | | | | $ | 9,085,619 | | | | $ | 33,607 | | | | $ | 9,869,226 | | | ||||||||
Chris Akhavan | | | $ | 280,000 | | | | $ | 2,952,519 | | | | $ | 5,332 | | | | $ | 3,237,851 | | | | | $ | 280,000 | | | | $ | 2,912,763 | | | | $ | 5,332 | | | | $ | 3,198,095 | | | ||||||||
Becky Ann Hughes | | | $ | 342,000 | | | | $ | 3,658,382 | | | | $ | 7,598 | | | | $ | 4,007,980 | | | | | $ | 342,000 | | | | $ | 3,633,826 | | | | $ | 7,598 | | | | $ | 3,983,424 | | | ||||||||
Scott J. Leichtner | | | $ | 258,750 | | | | $ | 2,437,254 | | | | $ | 11,514 | | | | $ | 2,707,518 | | | | | $ | 258,750 | | | | $ | 2,402,176 | | | | $ | 11,514 | | | | $ | 2,672,440 | | |
Named Executive Officer | | | Base Salary Component of Severance($) | | | Bonus Component of Severance($) | | | Total($) | | |||||||||
Nick Earl | | | | $ | 475,000 | | | | | $ | 475,000 | | | | | $ | 950,000 | | |
Eric R. Ludwig | | | | $ | 375,000 | | | | | $ | 375,000 | | | | | $ | 750,000 | | |
Chris Akhavan | | | | $ | 200,000 | | | | | $ | 80,000 | | | | | $ | 280,000 | | |
Becky Ann Hughes | | | | $ | 180,000 | | | | | $ | 162,000 | | | | | $ | 342,000 | | |
Scott J. Leichtner | | | | $ | 172,500 | | | | | $ | 86,250 | | | | | $ | 258,750 | | |
Named Executive Officer | | Value of Unvested Stock Options($) | | Value of Unvested RSUs($) | | Total($) | | | Value of Unvested Stock Options($) | | Value of Unvested RSUs($) | | Total($) | | ||||||||||||||||||||||||
Nick Earl | | | $ | 3,048,959 | | | | $ | 13,668,150 | | | | $ | 16,717,109 | | | | | $ | 3,048,959 | | | | $ | 14,441,275 | | | | $ | 17,490,234 | | | ||||||
Eric R. Ludwig | | | $ | 1,482,227 | | | | $ | 7,045,025 | | | | $ | 8,527,252 | | | | | $ | 1,430,219 | | | | $ | 7,655,400 | | | | $ | 9,085,619 | | | ||||||
Chris Akhavan | | | $ | 708,894 | | | | $ | 2,243,625 | | | | $ | 2,952,519 | | | | | $ | 669,138 | | | | $ | 2,243,625 | | | | $ | 2,912,763 | | | ||||||
Becky Ann Hughes | | | $ | 196,457 | | | | $ | 3,461,925 | | | | $ | 3,658,382 | | | | | $ | 171,901 | | | | $ | 3,461,925 | | | | $ | 3,633,826 | | | ||||||
Scott J. Leichtner | | | $ | 427,591 | | | | $ | 2,009,663 | | | | $ | 2,437,254 | | | | | $ | 392,513 | | | | $ | 2,009,663 | | | | $ | 2,402,176 | | |
| | Glu Common Stock Closing Price | | | Glu Common Stock Closing Price | | ||||||||
February 5, 2021 | | | $ | 9.19 | | | | | $ | 9.19 | | | ||
, 2021 | | | $ | | | | ||||||||
March 23, 2021 | | | $ | 12.43 | | |
Name of Beneficial Owner | | Amount and Nature of Beneficial Ownership | | Percent of Class | | | Amount and Nature of Beneficial Ownership | | Percent of Class | | ||||||||||||||||
5% Stockholders | | | | | | | | | | | | | | | | | | | | | | | ||||
BlackRock Inc.(1) | | | | 22,266,614 | | | | | 12.63% | | | | | | 22,266,614 | | | | | 12.63% | | | ||||
Red River Investment Limited(2) | | | | 21,000,000 | | | | | 11.91% | | | | | | 21,000,000 | | | | | 11.91% | | | ||||
Vanguard Group Inc.(3) | | | | 10,219,184 | | | | | 5.80% | | | | | | 10,219,184 | | | | | 5.80% | | | ||||
Named Executive Officers and Directors | | | | | | | | | | | | | | | | | | | | | | | ||||
Nick Earl(4) | | | | 5,523,766 | | | | | 3.05% | ��� | | | | | 5,546,834 | | | | | 3.06% | | | ||||
Eric R. Ludwig(5) | | | | 2,737,830 | | | | | 1.53% | | | | | | 2,756,608 | | | | | 1.53% | | | ||||
Chris Akhavan(6) | | | | 884,845 | | | | | * | | | | | | 894,382 | | | | | * | | | ||||
Becky Ann Hughes(7) | | | | 436,239 | | | | | * | | | | | | 444,199 | | | | | * | | | ||||
Scott Leichtner(8) | | | | 1,093,054 | | | | | * | | | | | | 1,101,632 | | | | | * | | | ||||
Darla Anderson(9) | | | | 53,291 | | | | | * | | | | | | 54,958 | | | | | * | | | ||||
Eric R. Ball(10) | | | | 432,312 | | | | | * | | | | | | 432,312 | | | | | * | | | ||||
Greg Brandeau(11) | | | | 179,780 | | | | | * | | | | | | 171,780 | | | | | * | | | ||||
Niccolo M. de Masi(12) | | | | 512,029 | | | | | * | | | | | | 512,029 | | | | | * | | | ||||
Ben Feder(13) | | | | | | | | | — | | | | | | | | | | | — | | | ||||
Hany M. Nada(14) | | | | 456,825 | | | | | * | | | | | | 456,825 | | | | | * | | | ||||
Benjamin T. Smith, IV(15) | | | | 276,625 | | | | | * | | | | | | 276,625 | | | | | * | | | ||||
Gabrielle Toledano(16) | | | | 176,625 | | | | | * | | | | | | 176,625 | | | | | * | | | ||||
All directors and executive officers as a group (13 persons)(17) | | | | 12,763,221 | | | | | 6.85% | | | | | | 12,824,809 | | | | | 6.88% | | |
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ARTICLE I. DESCRIPTION OF TRANSACTION | | | | | | | |
| | | | A-1 | | | |
| | | | A-1 | | | |
| | | | A-2 | | | |
| | | | A-2 | | | |
| | | | A-2 | | | |
| | | | A-5 | | | |
| | | | A-5 | | | |
| | | | A-6 | | | |
| | | | A-7 | | | |
ARTICLE II. REPRESENTATIONS AND WARRANTIES OF THE COMPANY | | | | | | | |
| | | | A-8 | | | |
| | | | A-8 | | | |
| | | | A-9 | | | |
| | | | A-10 | | | |
| | | | A-10 | | | |
| | | | A-12 | | | |
| | | | A-12 | | | |
| | | | A-14 | | | |
| | | | A-14 | | | |
| | | | A-16 | | | |
| | | | A-18 | | | |
| | | | A-18 | | | |
| | | | A-20 | | | |
| | | | A-21 | | | |
| | | | A-21 | | | |
| | | | A-22 | | | |
| | | | A-22 | | | |
| | | | A-22 | | | |
| | | | A-22 | | | |
| | | | A-23 | | | |
| | | | A-23 | | | |
ARTICLE III. REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB | | | | | | | |
| | | | A-23 | | | |
| | | | A-24 | | | |
| | | | A-24 | | | |
| | | | A-25 | | | |
| | | | A-25 | | | |
| | | | A-25 | | |
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| | | | A-25 | | | |
| | | | A-25 | | | |
| | | | A-25 | | | |
| | | | A-25 | | | |
| | | | A-25 | | | |
| | | | A-26 | | | |
ARTICLE IV. CERTAIN COVENANTS | | | | | | | |
| | | | A-26 | | | |
| | | | A-30 | | | |
| | | | A-31 | | | |
| | | | A-33 | | | |
| | | | A-37 | | | |
| | | | A-39 | | | |
| | | | A-39 | | | |
| | | | A-41 | | | |
| | | | A-41 | | | |
| | | | A-43 | | | |
| | | | A-43 | | | |
| | | | A-43 | | | |
| | | | A-43 | | | |
| | | | A-43 | | | |
| | | | A-44 | | | |
| | | | A-44 | | | |
ARTICLE V. CONDITIONS TO CONSUMMATION OF THE MERGER | | | | | | | |
| | | | A-44 | | | |
| | | | A-44 | | | |
| | | | A-45 | | | |
| | | | A-45 | | | |
ARTICLE VI. TERMINATION, AMENDMENT AND WAIVER | | | | | | | |
| | | | A-45 | | | |
| | | | A-46 | | | |
ARTICLE VII. MISCELLANEOUS PROVISIONS | | | | | | | |
| | | | A-48 | | | |
| | | | A-48 | | | |
| | | | A-48 | | | |
| | | | A-49 | | | |
| | | | A-49 | | | |
| | | | A-49 | | | |
| | | | A-49 | | | |
| | | | A-50 | | | |
| | | | A-50 | | |
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| | | | A-50 | | | |
| | | | A-51 | | | |
| | | | A-51 | | | |
| | | | A-51 | | | |
| | | | A-51 | | | |
Exhibits | | | |||||
Exhibit A – Certain Definitions and Index of Defined Terms | | | |||||
Exhibit B – Form of Certificate of Incorporation of Surviving Corporation | | |
| | | | Electronic Arts Inc. | | |||
| | | | By: | | | /s/ Blake Jorgensen | |
| | | | Name: | | | Blake Jorgensen | |
| | | | Title: | | | Chief Operating Officer & Chief Financial Officer | |
| | | | Giants Acquisition Sub, Inc. | | |||
| | | | By: | | | /s/ Jacob J. Schatz | |
| | | | Name: | | | Jacob J. Schatz | |
| | | | Title: | | | Vice President and Secretary | |
| | | | Glu Mobile Inc. | | |||
| | | | By: | | | /s/ Nick Earl | |
| | | | Name: | | | Nick Earl | |
| | | | Title: | | | President & Chief Executive Officer | |
| 401(k) Plan | | | Section 4.7(d) | |
| Agreement | | | Preamble | |
| Agreement Date | | | Preamble | |
| Alternative Acquisition Agreement | | | Section 4.4(b)(iii) | |
| Antitrust Order | | | Section 4.5(c) | |
| Assumed Company Option | | | Section 1.5(a)(iv)(B) | |
| Assumed Company RSU | | | Section 1.5(a)(v)(B) | |
| Audit Committee | | | Section 2.7(f) | |
| Board of Directors | | | Recitals | |
| Book-Entry Shares | | | Section 1.8(b) | |
| Business Information Systems | | | Section 2.12(j) | |
| Cancelled Shares | | | Section 1.5(a)(iii) | |
| Capitalization Date | | | Section 2.2(a) | |
| Certificate of Merger | | | Section 1.3 | |
| Change of Board Recommendation | | | Section 4.4(e) | |
| Closing | | | Section 1.3 | |
| Closing Date | | | Section 1.3 | |
| Company | | | Preamble | |
| Company Associated Party Contract | | | Section 2.18 | |
| Company Board | | | Recitals | |
| Company Board Recommendation | | | Recitals | |
| Company Bylaws | | | Section 2.1(b) | |
| Company Certificate | | | Section 2.1(b) | |
| Company Disclosure Letter | | | Article II | |
| Company Employees | | | Section 4.7(a) | |
| Company Financial Statements | | | Section 2.7(a) | |
| Company Material Contract | | | Section 2.10(a) | |
| Company Representatives | | | Section 4.2(a) | |
| Company SEC Documents | | | Section 2.6(a) | |
| Company Stock Certificate | | | Section 1.7 | |
| Company Stockholder Approval | | | Section 2.3(c) | |
| Company Stockholder Meeting | | | Section 4.3(b)(i) | |
| Continuing Employee | | | Section 4.7(b) | |
| D&O Indemnification Agreements | | | Section 4.9(a) | |
| D&O Runoff Insurance | | | Section 4.9(d) | |
| Dissenting Shares | | | Section 1.6 | |
| Effective Time | | | Section 1.3 | |
| Electronic Delivery | | | Section 7.11 | |
| Equity Interests | | | Section 2.1(c) | |
| Exchange Fund | | | Section 1.8(a) | |
| Financial Advisor | | | Section 2.17 | |
| Financial Assistance | | | Section 2.21 | |
| Fundamental Representations | | | Section 5.2(a) | |
| Indemnified Person | | | Section 4.9(a) | |
| Indemnified Persons | | | Section 4.9(a) | |
| Information Systems | | | Section 2.12(j) | |
| Insurance Policies | | | Section 2.20 | |
| Intervening Event Notice Period | | | Section 4.4(g)(i) | |
| Lease | | | Section 2.15(b) | |
| Leased Real Property | | | Section 2.15(b) | |
| Maximum Amount | | | Section 4.9(d) | |
| Merger | | | Recitals | |
| Merger Sub | | | Preamble | |
| New Plans | | | Section 4.7(a) | |
| OFAC | | | Section 2.5(d) | |
| Open Source Technology | | | Section 2.12(g) | |
| Other Required Company Filing | | | Section 4.3(a)(ii) | |
| Parent | | | Preamble | |
| Parent Representatives | | | Section 4.2(a) | |
| Parent Welfare Plan | | | Section 4.7(a) | |
| Parties | | | Preamble | |
| Paying Agent | | | Section 1.8(a) | |
| Per Share Merger Consideration | | | Section 1.5(a)(iii) | |
| Performance Company Option Conversion | | | Section 1.5(a)(iv)(C) | |
| Performance Company RSU Conversion | | | Section 1.5(a)(v)(C) | |
| Pre-Closing Period | | | Section 4.1 | |
| Preferred Stock | | | Section 2.2(a) | |
| Proxy Statement | | | Section 4.3(a)(i) | |
| Qualifying Acquisition Proposal | | | Section 4.4(c) | |
| Required Parent Filing | | | Section 4.3(a)(iii) | |
| Sarbanes-Oxley Act | | | Section 2.6(a) | |
| Share | | | Recitals | |
| Shares | | | Recitals | |
| State Department | | | Section 2.5(d) | |
| Superior Proposal Notice Period | | | Section 4.4(f)(ii) | |
| Surviving Corporation | | | Section 1.1 | |
| Takeover Law | | | Section 2.3(b) | |
| Termination Fee | | | Section 6.2(b)(i) | |
| Transactions | | | Recitals | |
| Unvested Company Option | | | Section 1.5(a)(iv)(B) | |
| Unvested Company RSU | | | Section 1.5(a)(v)(B) | |
| Vested Company Option | | | Section 1.5(a)(iv)(A) | |
| Vested Company RSU | | | Section 1.5(a)(v)(A) | |
| Voting Agreement | | | Recitals | |
| Voting Company Debt | | | Section 2.2(e) | |
| WARN | | | Section 2.9(b) | |