(Translation)
August 2, 2016
Dear Sirs
Name of Company:
Name of Representative:

SEGA SAMMY HOLDINGS INC.
Hajime Satomi,
Chairman of the Boardand CEO and COO(Code No. 6460, Tokyo Stock Exchange 1st Section)
Further Inquiries:

Yoichi Owaki,
Executive Officer
Division Manager,
Finance & Accounting Division(TEL: 03-6215-9955)

Notice of Issuance of Stock Options (Stock Acquisition Rights) to Employees of theCompany and Directors and Employees of the Company’s Subsidiaries
Notice is hereby given that SEGA SAMMY HOLDINGS INC. (the "Company"), at
the meeting of its Board of Directors held today, resolved that the Company would issue
stock acquisition rights as stock options, as described below.
Description
1.

Reason for issuing acquisition stock rights as stock options
To raise morale of allottees to achieve much improved business results of our Group
as a whole and operate the business in consideration of our shareholders and stockprices.

2.

Name of stock acquisition rights
SEGA SAMMY HOLDINGS INC. stock acquisition rights issued in September 2016
(for use by employees)

3.

Number to be issued
38,530 rights

4.

Paid-in price in exchange for stock acquisition rightNo cash payment shall be required in exchange for a stock acquisition right.

5.

Class, details and number of shares to be issued or transferred upon exercise of stockacquisition rights
The number of shares of common stock shall be 3,853,000 shares. Furthermore, thenumber of shares to be issued or transferred upon exercise of each stock acquisitionright shall be 100 shares.
If it is appropriate to adjust the number of shares issued or transferred upon exerciseof each right in the event of a merger, amalgamation or consolidation, a corporate
separation, a share exchange, a share split, a stock consolidation or any other similarevent by the Company, the Company shall make such adjustments as it deems necessary.
6.

Price of asset to be capitalized upon exercise of a stock acquisition right
The price of the asset to be capitalized upon exercise of each stock acquisition rightshall be the paid-in amount per share deliverable upon exercise thereof (the "exerciseprice"), multiplied by the number of shares to be issued or transferred for each suchstock acquisition right.
The exercise price shall be an amount obtained by multiplying by 1.05 the average ofthe daily closing prices (regular transactions) of the shares of common stock of theCompany on the Tokyo Stock Exchange for the days (exclusive of any day on whichtransactions are not validly made) of the month immediately preceding the month underwhich the allotment date of the stock acquisition rights falls, with any fraction of one
yen rounded upward to the nearest one yen. Provided, however, that if the amount so
obtained falls below the closing price on the day immediately preceding the allotment
date of the stock acquisition rights (or if the closing price is not available on that day,the closing price on any day immediately preceding that day), the exercise price shall besuch closing price.
If it is appropriate to adjust the number of shares issued or transferred upon exerciseof each right in the event of a merger, amalgamation or consolidation, a corporate
separation, a share exchange, a share split, a share consolidation or any other similar
event by the Company, the Company shall make such adjustments as it deems necessary.

7.

Stock acquisition right allotment date
September 1, 20168.

Stock acquisition right exercise period
From September 2, 2018 to September 1, 20209.

Conditions for the exercise of stock acquisition rights(1) Any person to whom the stock acquisition rights are allotted shall remain in office
as a Director of the Company or in any other similar office when he or she exercises
the rights, unless he or she leaves office upon expiration of the term of office or due
to any other good reason.
(2) Other conditions for the exercise of stock acquisition rights are as determined by thestock acquisition right allotment agreement concluded between the Company andsubject persons based on resolutions of the meeting of the Board of Directors.

10. Matters concerning the increase in stated capital and capital reserves in the event thatshares are issued due to the exercise of stock acquisition rights
The amount of increase in stated capital in the event that shares are issued due to theexercise of stock acquisition rights shall be limited to one-half the amount of themaximum capital and other increase amount as calculated in accordance with Article 17
Paragraph 1 of the Rules of Account Settlement of Corporations, with any fraction ofone yen resulting from the calculations rounded upward to the nearest one yen.
In addition, the amount of increase in capital reserves shall be the amount of theabovementioned maximum capital and other increase amount less the amount of
increase in stated capital.
11. Matters concerning the transfer of stock acquisition rights
Any transfer of the stock acquisition rights shall be subject to the approval of theBoard of Directors of the Company.
12. Provision of acquisition of stock acquisition rights
The Company may acquire the offered stock acquisition rights without compensation
on a date prescribed by the Board of Directors if any proposal described below isapproved at the Company’s general meeting of shareholders:(1) a proposal for approval of a merger agreement under which the Company become acompany absorbed in absorption-type merger or a company consolidated throughconsolidation-type Merger(2) a proposal for approval of a company split agreement or a company split plan underwhich the Company become a split company(3) a proposal for approval of a share exchange agreement or a share transfer planunder which the Company become a wholly owned subsidiary
13. Number and breakdown of parties to whom stock acquisition rights are to be allotted
Company executive officers: 7Rights: 930
Company employees: 11
Rights: 428
Subsidiary Directors: 43
Rights: 5,655
Subsidiary executive officers: 47 Rights: 5,085
Subsidiary employees: 822
Rights: 26,432
14. Content of agreement between invited parties and the filing company
As determined by the stock acquisition right subscription agreement concluded
between the Company and the subject persons.

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