The Merger (Part 2) — Activision Blizzard / Microsoft

The Merger

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Article I DEFINITIONS & INTERPRETATIONS
1.1 Certain Definitions		A-1
1.2 Additional Definitions		A-12
1.3 Certain Interpretations		A-14
1.4 Disclosure Letters		A-15
Article II THE MERGER
2.1 The Merger		A-16
2.2 The Effective Time		A-16
2.3 The Closing		A-16
2.4 Effect of the Merger		A-16
2.5 Certificate of Incorporation and Bylaws		A-16
2.6 Directors and Officers		A-16
2.7 Effect on Capital Stock		A-17
2.8 Equity Awards		A-18
2.9 Surrender of Shares		A-20
2.10 No Further Ownership Rights in Company Common Stock		A-22
2.11 Lost, Stolen or Destroyed Certificates		A-22
2.12 Required Withholding		A-22
2.13 Necessary Further Actions		A-22
2.14 Adjustment to Merger Consideration		A-23
Article III REPRESENTATIONS AND WARRANTIES OF THE COMPANY
3.1 Organization; Good Standing		A-23
3.2 Corporate Power; Enforceability		A-23
3.3 Company Board Approval; Opinion of the Company’s Financial Advisor; Anti-Takeover Laws		A-24
3.4 Requisite Stockholder Approval		A-24
3.5 Non-Contravention		A-24
3.6 Requisite Governmental Approvals		A-24
3.7 Company Capitalization		A-25
3.8 Subsidiaries		A-26
3.9 Company SEC Reports		A-27
3.10 Company Financial Statements; Internal Controls; Indebtedness		A-27
3.11 No Undisclosed Liabilities		A-28
3.12 Absence of Certain Changes; No Company Material Adverse Effect		A-28
3.13 Material Contracts		A-28
3.14 Real Property		A-29
3.15 Environmental Matters		A-29
3.16 Intellectual Property; Privacy and Security		A-30
3.17 Tax Matters		A-31
3.18 Employee Plans		A-33
3.19 Labor and Employment Matters		A-35

A-i

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3.20 Permits		A-36
3.21 Compliance with Laws		A-36
3.22 Anti-Money Laundering Laws		A-37
3.23 Legal Proceedings; Orders		A-38
3.24 Insurance		A-38
3.25 Related Person Transactions		A-38
3.26 Brokers		A-38
3.27 Exclusivity of Representations and Warranties		A-38
Article IV REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
4.1 Organization; Good Standing		A-39
4.2 Corporate Power; Enforceability		A-40
4.3 Non-Contravention		A-40
4.4 Requisite Governmental Approvals		A-41
4.5 Legal Proceedings; Orders		A-41
4.6 Ownership of Company Common Stock		A-41
4.7 Brokers		A-41
4.8 No Parent Vote or Approval Required		A-41
4.9 Sufficient Funds		A-41
4.10 Exclusivity of Representations and Warranties		A-41
Article V INTERIM OPERATIONS OF THE COMPANY
5.1 Affirmative Obligations		A-42
5.2 Forbearance Covenants		A-42
5.3 No Solicitation		A-45
5.4 No Control of the Company’s Business		A-49
Article VI ADDITIONAL COVENANTS
6.1 Required Action and Forbearance; Efforts		A-49
6.2 Regulatory Approvals		A-50
6.3 Proxy Statement		A-51
6.4 Company Stockholder Meeting		A-52
6.5 Anti-Takeover Laws		A-53
6.6 Access		A-53
6.7 Section 16(b) Exemption		A-53
6.8 Directors’ and Officers’ Exculpation, Indemnification and Insurance		A-53
6.9 Employee Matters		A-55
6.10 Obligations of Merger Sub		A-57
6.11 Notification of Certain Matters		A-57
6.12 Public Statements and Disclosure		A-58
6.13 Specified and Transaction Litigation		A-58
6.14 Stock Exchange Delisting; Deregistration		A-58
6.15 Additional Agreements		A-58
6.16 Senior Notes; Credit Facility		A-59
6.17 Parent Vote; Merger Sub		A-60
6.18 Tax Matters		A-60

A-ii

The Merger

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