Armin Zerza - 12 Oct 2023 Form 4 Insider Report for Activision Blizzard, Inc.

Footnote F1

Grant to reporting person of restricted stock units, each representing the right to receive one share of Issuer's common stock, scheduled to vest in equal installments on each of October 12, 2023, October 12, 2025, and October 12, 2026. The 7,018 units that vested on October 12, 2023 were settled as described in footnote 3 below.

Footnote F2

On October 13, 2023 (the "Transaction Date"), Issuer completed the previously announced transaction with Microsoft Corporation, a Washington corporation ("Microsoft"), pursuant to the Agreement and Plan of Merger, dated as of January 18, 2022 (as amended, supplemented or otherwise modified from time to time, the "Merger Agreement"), by and among Issuer, Microsoft and Anchorage Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of Microsoft (Merger Sub), providing for the merger of Merger Sub with and into Issuer (the Merger), with Issuer surviving the Merger as a wholly owned subsidiary of Microsoft.

Footnote F3

Reflects the disposition pursuant to the Merger Agreement, as of the effective time of the Merger (the "Effective Time"), of the following Issuer securities for $95.00 in cash per share/unit (less any applicable withholding taxes, in the case of units): (a) 43,859 shares of common stock and (b) 7,018 restricted stock units that vested on October 12, 2023 as described in footnote 1.

Footnote F4

Reflects the disposition pursuant to the Merger Agreement, as of the Effective Time, of the following Issuer securities: (a) 47,236 restricted stock units (the "Assumed RSUs") and (b) 119,107 performance-vesting restricted stock units (the "Assumed PSUs"), in each case that were converted into a number of time-based vesting restricted stock units of Microsoft equal to the product (rounded down to the nearest whole share) of (i) the number of Assumed RSUs or Assumed PSUs (determined based on target performance levels), as applicable, multiplied by (ii) a fraction, (A) the numerator of which was $95.00 and (B) the denominator of which was the volume weighted average price per share of Microsoft common stock on NASDAQ for the five consecutive trading days ending with the last trading day ending immediately prior to the Transaction Date (such fraction, the "Exchange Ratio").

Footnote F5

Reflects the disposition pursuant to the Merger Agreement, as of the Effective Time, of options that were fully vested as of the Effective Time in accordance with their terms, each for an amount in cash equal to $95.00 less the applicable option exercise price and any applicable withholding taxes.

Footnote F6

Reflects the disposition pursuant to the Merger Agreement, as of the Effective Time, of (a) 2,396 options that were fully vested as of the Effective Time in accordance with their terms and (b) 1,197 options that were scheduled to vest within 120 days following the Transaction Date, but were accelerated and became fully vested as of immediately prior to the Effective Time, in each case each for an amount in cash equal to $95.00 less the applicable option exercise price and any applicable withholding taxes.

Footnote F7

Reflects the disposition pursuant to the Merger Agreement, as of the Effective Time, of options that were scheduled to vest in 2 equal tranches on March 31, 2024 and March 31, 2025 (the "Assumed Options") that were converted into nonqualified stock options of Microsoft in respect of a number of shares of Microsoft common stock equal to the product (rounded down to the nearest whole share) of (a) the number of Assumed Options multiplied by (b) the Exchange Ratio, at an exercise price per share of Microsoft common stock equal to the quotient of (x) the option exercise price of the Assumed Options divided by (y) the Exchange Ratio (rounded up to the nearest whole cent).