Document:

Glu_Ex_4_02

		
			Exhibit 4.02
		

		
			 
		

		
			DESCRIPTION OF THE REGISTRANT’S SECURITIES
		

		
			REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES
		

		
			EXCHANGE ACT OF 1934
		

		
			 As of December 31, 2019, Glu Mobile, Inc. (the “Company,” “we” or “our”) had one class of securities registered under Section 12 of the Securities Exchange Act of 1934: our common stock.
		

		
			Description of Capital Stock
		

		
			The following summary of the terms of our capital stock is based upon our restated certificate of incorporation and our amended and restated bylaws. The summary is not complete, and is qualified by reference to our restated certificate of incorporation and our amended and restated bylaws, which are filed as exhibits to this Annual Report on Form 10-K and are incorporated by reference herein. We encourage you to read our restated certificate of incorporation, our amended and restated bylaws and the applicable provisions of the Delaware General Corporation Law, or DGCL, for additional information.
		

		
			General
		

		
			We have authorized capital stock consisting of 250,000,000 shares of common stock, $0.0001 par value per share, and 5,000,000 shares of undesignated preferred stock, $0.0001 par value per share.
		

		
			Common Stock
		

		
			Dividend rights
		

		
			Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of our common stock are entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue dividends and then only at the times and in the amounts that our board of directors may determine.
		

		
			Voting rights
		

		
			Each holder of our common stock is entitled to one vote for each share of common stock held on all matters properly submitted to a vote of stockholders. Cumulative voting for the election of directors is not provided for in our restated certificate of incorporation, which means that the holders of a majority of our shares of common stock voted can elect all of the directors then standing for election. Our restated certificate of incorporation establishes a classified board of directors that is divided into three classes with staggered three-year terms. Only one class of
		

		
			
		

		
			

		 

		

		
			directors will be elected at each annual meeting of our stockholders, with the other classes continuing for the remainder of their respective three-year terms.
		

		
			No preemptive or similar rights
		

		
			Our common stock is not entitled to preemptive rights, and is not subject to conversion, redemption or sinking fund provisions.
		

		
			Right to receive liquidation distributions
		

		
			Upon our liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our common stock and any participating preferred stock outstanding at that time after payment of liquidation preferences, if any, on any outstanding shares of our preferred stock and payment of other claims of creditors.
		

		
			Preferred Stock
		

		
			Our board of directors is authorized, subject to limitations prescribed by Delaware law, to issue preferred stock in one or more series, to establish from time to time the number of shares to be included in each series, and to fix the designation, powers, preferences, and rights of the shares of each series and any of its qualifications, limitations, or restrictions, in each case without further vote or action by our stockholders. Our board of directors can also increase or decrease the number of shares of any series of preferred stock, but not below the number of shares of that series then outstanding. The number of authorized shares of preferred stock may be increased or decreased, but not below the number of shares of preferred stock then outstanding, by the affirmative vote of the holders of a majority of our capital stock entitled to vote, or such other vote as may be required by the certificate of designation establishing the series. Our board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of our common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring, or preventing a change in our control and might adversely affect the market price of our common stock and the voting and other rights of the holders of our common stock. We have no current plan to issue any shares of our preferred stock.
		

		
			Anti-Takeover Provisions
		

		
			The provisions of Delaware law, our restated certificate of incorporation, and our amended and restated bylaws could have the effect of delaying, deferring, or discouraging another person from acquiring control of our company. These provisions, which are summarized below, may have the effect of discouraging takeover bids.
		

		
			Delaware Law
		

		
			We are subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. In general, DGCL Section 203 prohibits a publicly held Delaware corporation from
		

		
			
		

		
			

		 

		

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			engaging in a business combination with an interested stockholder for a period of three years following the date on which the person became an interested stockholder unless:
		

		
			     prior to the date of the transaction, the board of directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;
		

		
			     the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding, but not the outstanding voting stock owned by the interested stockholder, (i) shares owned by persons who are directors and also officers and (ii) shares owned by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
		

		
			     at or subsequent to the date of the transaction, the business combination is approved by the board of directors of the corporation and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66.67% of the outstanding voting stock that is not owned by the interested stockholder.
		

		
			Generally, a business combination includes a merger, asset or stock sale, or other transaction or series of transactions together resulting in a financial benefit to the interested stockholder. An interested stockholder is a person who, together with affiliates and associates, owns or, within three years prior to the determination of interested stockholder status, did own 15% or more of a corporation’s outstanding voting stock. We expect the existence of this provision to have an anti-takeover effect with respect to transactions our board of directors does not approve in advance. We also anticipate that DGCL Section 203 may also discourage attempts that might result in a premium over the market price for the shares of common stock held by stockholders.
		

		
			Restated Certificate of Incorporation and Amended and Restated Bylaws Provisions
		

		
			Our restated certificate of incorporation and our amended and restated bylaws include a number of provisions that could deter hostile takeovers or delay or prevent changes in control of our management team, including the following:
		

		
			    Board of Directors Vacancies. Our restated certificate of incorporation and amended and restated bylaws authorize only our board of directors to fill vacant directorships, including newly created seats. In addition, the number of directors constituting our board of directors is permitted to be set only by a resolution adopted by a majority vote of our entire board of directors. These provisions prevent a stockholder from increasing the size of our board of directors and then gaining control of our board of directors by filling the resulting vacancies with its own nominees. This makes it more difficult to change the composition of our board of directors but promotes continuity of management.
		

		
			    Classified Board. Our restated certificate of incorporation provides that our board of directors is classified into three classes of directors. The existence of a classified board of directors could discourage a third-party from making a tender offer or otherwise attempting to obtain control of us as it is more difficult and time consuming for stockholders to replace a majority of the directors on a classified board of directors.
		

		
			
		

		
			

		 

		

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			    Directors Removed Only for Cause. Our restated certificate of incorporation provides that stockholders may remove directors only for cause.
		

		
			    Supermajority Requirements for Amendments of Our Amended and Restated Bylaws. Our amended and restated bylaws provide that the affirmative vote of holders of at least two-thirds of the voting power of the Corporation’s outstanding voting stock then entitled to vote at an election of directors is required to amend certain provisions of our amended and restated bylaws, including provisions relating to stockholder proposals at annual and special meetings of the stockholders, the size of the board, removal of directors and the Delaware forum selection provision of our amended and restated bylaws.
		

		
			    Stockholder Action; Special Meeting of Stockholders.  Our restated certificate of incorporation and our amended and restated bylaws provide that special meetings of our stockholders may be called only by a majority of our board of directors, the chairman of our board of directors, our lead independent director, our chief executive officer, or our president, thus prohibiting a stockholder from calling a special meeting. Our restated certificate of incorporation further provides that our stockholders may not take action by written consent, but may only take action at annual or special meetings of our stockholders. As a result, holders of our capital stock would not be able to amend our amended and restated bylaws or remove directors without a meeting of our stockholders called in accordance with our restated certificate of incorporation. These provisions might delay the ability of our stockholders to force consideration of a proposal or for stockholders to take any action, including the removal of directors.
		

		
			    Advance Notice Requirements for Stockholder Proposals and Director Nominations.    Our amended and restated bylaws provide advance notice procedures for stockholders seeking to bring business before our annual meeting of stockholders or to nominate candidates for election as directors at our annual meeting of stockholders. Our amended and restated bylaws also specify certain requirements regarding the form and content of a stockholder’s notice. These provisions might preclude our stockholders from bringing matters before our annual meeting of stockholders or from making nominations for directors at our annual meeting of stockholders if the proper procedures are not followed. We expect that these provisions might also discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of our company.
		

		
			    No Cumulative Voting.  The DGCL provides that stockholders are not entitled to the right to cumulate votes in the election of directors unless a corporation’s certificate of incorporation provides otherwise. Our restated certificate of incorporation and amended and restated bylaws do not provide for cumulative voting.
		

		
			    Issuance of Undesignated Preferred Stock.  Our board of directors has the authority, without further action by the stockholders, to issue up to 5,000,000 shares of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by our board of directors. The existence of authorized but
		

		
			
		

		
			

		 

		

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			unissued shares of preferred stock enables our board of directors to render more difficult or to discourage an attempt to obtain control of us by means of a merger, tender offer, proxy contest, or other means.
		

		
			    Choice of Forum.  Our amended and restated bylaws provide that the Court of Chancery of the State of Delaware is the exclusive forum for any derivative action or proceeding brought on our behalf, any action asserting a breach of fiduciary duty, any action asserting a claim against us arising pursuant to the DGCL, our restated certificate of incorporation, or our amended and restated bylaws, or any action asserting a claim against us that is governed by the internal affairs doctrine.
		

		
			Exchange Listing
		

		
			Our common stock is listed on The Nasdaq Global Select Market under the symbol “GLUU.”
		

		
			Transfer Agent and Registrar
		

		
			The transfer agent and registrar for our common stock is American Stock Transfer & Trust Company, LLC.
		

		 

		

			5Glu_Ex_10_18

		
			Exhibit 10.18
		

		
			 
		

		
			GLU MOBILE INC.
		

		
			SUMMARY OF COMPENSATION TERMS
		

		
			BECKY ANN HUGHES
		

		
			 
		

		
			The following is a summary of the compensation terms for Becky Ann Hughes, our Senior Vice President of Revenue:
		

		
			 
		

		
			On December 17, 2019, the Compensation Committee of Glu’s Board of Directors approved an increase of Ms. Hughes’ annual base salary to $360,000 in connection with her promotion to Senior Vice President of Revenue.
		

		
			 
		

		
			In addition, the Compensation Committee approved for Ms. Hughes a target annual bonus of 90% of her annual base salary and a maximum annual bonus for 180% of her annual base salary.  For 2020, Ms. Hughes’ maximum bonus opportunity was converted into a performance-based restricted stock unit (a “PSU”) covering 117,000 shares that was issued on December 17, 2019.  Ms. Hughes will fully earn this PSU only if Glu both (1) achieves a minimum Adjusted EBITDA goal for 2020 (the “Adjusted EBITDA Threshold”) and (2) generates bookings for 2020 that equal or exceed a specified maximum level of performance (the “Maximum Bookings Goal”). If Glu does not achieve the Maximum Bookings Goal, Ms. Hughes can earn (1) 50% of the maximum amount of PSUs if Glu achieves the Adjusted EBITDA Threshold in 2020 and generates 2020 bookings that are approximately 4% below the Maximum Bookings Goal (the “Target Bookings Goal”) and (2) 15% of the maximum amount of PSUs if Glu achieves the Adjusted EBITDA Threshold in 2020 and generates 2020 bookings that are approximately 12% below the Maximum Bookings Goal (the “Minimum Bookings Goal”). Each of the Maximum Bookings Goal, Target Bookings Goal and the Minimum Bookings Goal represents a significant increase over Glu’s 2019 bookings. To the extent that Glu achieves the Adjusted EBITDA Threshold in 2020 and generates bookings between two of the goals, the number of PSUs earned by Ms. Hughes will be calculated on a linear basis.  Glu will determine its 2020 Adjusted EBITDA and bookings in early 2021, and to the extent that Ms. Hughes earn any PSUs based on Glu’s 2020 bookings and Adjusted EBITDA, such PSUs will fully vest in February 2021 (consistent with the timing of when Glu historically paid cash bonuses to its executives).

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