Project Polar Workplan April 10, 2007
Polar Acquisition Process and Responsibilities Due Diligence Business Strategy, Financial and User Metrics – Calkins / Lake / Wiggins Legal – Borak Technology – TBD Accounting and Tax Treatment – TBD Human Resources – TBD Deal Process Weekly update calls - periodic reviews with Lynton Agreements – Borak Approval Process – Calkins Day-to-Day Management Calkins / Lake
Diligence and Deal Process Timeline Timeline Action Items 4/94/164/234/305/75/145/215/286/4 Diligence (Financial, Legal, Technical) Preliminary review of due diligence materials Send follow-on due diligence requests Site visit and Polar response to requests Follow-on review Complete due diligence Diligence (Financial, Legal, Technical) Preliminary review of due diligence materials Send follow-on due diligence requests Site visit and Polar response to requests Follow-on review Complete due diligence Approval Process Internal meeting to approve LOI SPE review of deal structure Transaction review with SCA Send presentation to SCA for review SCA meeting and approval Review materials with Tokyo Corp Dev Investment Committee review GEC review and approval RAD for closing Sign contract Close acquisition Approval Process Internal meeting to approve LOI SPE review of deal structure Transaction review with SCA Send presentation to SCA for review SCA meeting and approval Review materials with Tokyo Corp Dev Investment Committee review GEC review and approval RAD for closing Sign contract Close acquisition Contracts, Agreements and Documentation Submit LOI Non-binding LOI signed Exclusive negotiation period (45 days) Negotiate purchase agreement Negotiate employment contracts Contracts, Agreements and Documentation Submit LOI Non-binding LOI signed Exclusive negotiation period (45 days) Negotiate purchase agreement Negotiate employment contracts
Business Strategy, Financial & User Metrics (Calkins, Lake, Wiggins) Action Responsibility Deadline
Legal (Borak) Action Responsibility Deadline
Accounting and Tax Treatment (TBD) Action Responsibility Deadline
Technical / Infrastructure Diligence (TBD) Action Responsibility Deadline
Near-Term Priorities Determine purchase price amortization treatment and impact to projected earnings Validate financials, operating metrics and model assumptions Build valuation model Quantify incremental value creation opportunities Identify alternative financing structures / potential acquisition partners
Project Polar Working Group List - Internal Corporate Development John Calkins EVP, Corporate Development P: (310) F: (310) Asst. Anne Smart P: (310) F: (310) Randy Lake VP, Corporate Development P: (310) F: (310) Asst. Alida Henschel P: (310) F: (310) Daniel Wiggins Sr. Analyst, Corporate Development P: (310) Divisional Support Jim Underwood VP, Business Development - Digital Services P: (310) Asst. Alida Henschel P: (310) F: (310) John Smedley President - Sony Online Entertainment P: (858) F: (858) Asst. Christina Lena P: (858) F: (858) John Needham CFO - Sony Online Entertainment P: (858) F: (858) Asst. Pam Impson P: (858) F: (858) Business and Legal Affairs Sharon Borak SVP, Legal Affairs P: (310) F: (310) Finance and Tax [David Mastalski] [Michael Nazitto] Sony Outside Legal Counsel, U.S. and Canada Partner Associate
Project Polar Working Group List - External Montgomery & Co (Polar Financial Advisor) Michael Montgomery President, Head of Media Investment Banking P: (310) F: (310) M: (310) Asst. Victoria Houser P: (310) Daniel Gossels Principal P: (310) F: (310) Asst. Caroline L. Schuette P: (310) Dan Chen Sr. Associate P: (310) M: (310) Alex Niehenke Analyst P: (310) M: (510) Polar Lane Merrifield, CEO Dave Krysko, President Lance Priebe, CTO Latham & Watkins (Polar Legal Counsel) Partner Associate