Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub an option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, to purchase that number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares. (b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty. (c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares. (d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 5 contracts
Sources: Merger Agreement (3PAR Inc.), Merger Agreement (Hewlett Packard Co), Merger Agreement (Hewlett Packard Co)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Parent and Purchaser an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase up to that number of authorized and unissued Company newly issued Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at and Purchaser immediately following consummation of the time of such exerciseOffer, shall constitute 100 Company Shares one Share more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days then outstanding on a Fully Diluted Basis (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares) at a price for consideration per share Top-Up Option Share equal to the Per Share Amount.
(b) The Top-Up Option shall be exercisable only after the purchase of and payment for Shares pursuant to the Offer Price; provided, however, that by Parent or Purchaser as a result of which Parent and Purchaser own beneficially at least a majority of the outstanding Shares. The Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by subject thereto exceeds the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value number of the purchased Top-Up Option authorized Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyavailable for issuance.
(c) In the event Acquisition Sub wishes that Parent or Purchaser wish to exercise the Top-Up Option, Acquisition Sub Purchaser shall deliver to give the Company one day’s prior written notice specifying the number of Shares that are or will be owned by Parent and Purchaser immediately following consummation of the Offer and specifying a place and a time for the closing of the purchase. The Company shall, as soon as practicable following receipt of such notice, deliver written notice (the “Top-Up Notice”) setting forth (i) to Purchaser specifying the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company portion of the consideration required to be delivered in exchange for purchase price owing upon exercise of the Top-Up Option that equals the product of (i) the number of Shares being purchased pursuant to the Top-Up Option, and multiplied by (ii) the Company Per Share Amount, shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, paid to the extent possibleCompany, on at the same day aselection of Parent and Purchaser, in cash (by wire transfer or cashier’s check) the issuance or by delivery of the Top-Up Option Sharesa promissory note having full recourse to Parent.
(d) Parent and Acquisition Sub understand Purchaser acknowledge that the Company Top-Up Option Shares which Acquisition Sub that Purchaser may acquire upon exercise of pursuant to the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub Purchaser represent and warrant to the Company that Acquisition Sub Purchaser is, or will be upon the purchase of the Top-Up Option Options Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub Purchaser agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub Purchaser for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 3 contracts
Sources: Merger Agreement (Comtech Telecommunications Corp /De/), Merger Agreement (Radyne Corp), Merger Agreement (Comtech Telecommunications Corp /De/)
Top-Up Option. (a) The Subject to Section 2.6(b) and Section 2.6(c), the Company hereby irrevocably grants to Acquisition Sub the Purchaser an option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase that from the Company the number of authorized and unissued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or Acquisition Sub at the time Parent, the Purchaser and their respective Affiliates as of such exerciseimmediately prior to the exercise of the Top-Up Option, shall constitute 100 Company Shares constitutes one share more than 90% of the Company Shares outstanding, assuming the issuance number of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance shares of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares Common Stock then outstanding (assuming the issuance of the Top-Up Option Shares); and provided furtherprovided, however, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares shares in excess of the Company’s then authorized and unissued aggregate of the number of shares of Company Common Stock held as treasury shares by the Company or by its Subsidiaries and the number of shares of Company Common Stock that the Company is authorized to issue under its certificate of incorporation but that are not issued and outstanding (and are not otherwise reserved for issuance to satisfy outstanding rights to acquire shares of Company Common Stock) as of immediately prior to the exercise of the Top-Up Option.
(b) The Top-Up Option may be exercised by the Purchaser, in whole but not in part, at any time at or after the Acceptance Time and the expiration of any subsequent offering period and on or prior to the fifth Business Day after the later of (i) the expiration date of the Offer or (Bii) if the expiration of any applicable Law or any applicable Order shall prohibit subsequent offering period; provided, however, that the obligation of the Company to deliver Top-Up Option Shares upon the exercise of the Top-Up Option is subject to the conditions, unless waived by the Company, that (A) no provision of any applicable Law, and no temporary restraining order, preliminary or the delivery permanent injunction or other judgment or order issued by a court of the Top-Up Option Shares.
(b) Provided that no applicable Law competent jurisdiction or Order other Governmental Entity of competent jurisdiction, shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereofof such exercise, Acquisition Sub may (B) the issuance of Top-Up Option Shares pursuant to the Top-Up Option would not require approval of the Company’s stockholders under applicable Law, (C) upon exercise of the Top-Up Option, in whole but not in partthe number of shares of Company Common Stock owned by the Parent, at any the Purchaser and their respective Affiliates constitutes one time share more than 90% of the number of shares of Company Common Stock that will be outstanding immediately after the Appointment Time and prior to issuance of the earlier to occur of Top-Up Option Shares, (iD) the Effective Time Purchaser has accepted for payment and paid for all shares of Company Common Stock validly tendered in the Offer and not withdrawn and (iiE) the Minimum Condition shall have been satisfied; and, provided, further, that the Top-Up Option shall terminate concurrently with the termination of this Agreement Agreement. The Purchaser shall exercise the Top-Up Option if doing so would be lawful and would allow it to consummate the Merger pursuant to Section 253 of the DGCL. The parties hereto shall cooperate to ensure that the issuance of the Top-Up Option Shares is accomplished in accordance a manner consistent with its termsall applicable Laws, including compliance with an applicable exemption from registration of the Top-Up Option Shares under the Securities Act. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may shall be paid by Acquisition Sub, at its election, either the Purchaser (Ax) entirely in cash or (By) by delivering Parent’s promissory note in cash in an the principal amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder balance of such purchase price. Any such , which promissory note shall bear interest at a rate per annum equal be on terms reasonably satisfactory to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyCompany.
(c) In the event Acquisition Sub that the Purchaser wishes to exercise the Top-Up Option, Acquisition Sub it shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such the Top-Up Option Shares by Acquisition Sub the Purchaser is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub the Purchaser shall cause to be delivered to the Company the consideration required to be delivered in exchange for the such Top-Up Option Shares being purchased pursuant to the Top-Up OptionShares, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on be issued to the same day that Purchaser via book-entry delivery. The Purchaser shall consummate the Top-Up Notice is deemed received by the Company Merger pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL promptly (and as contemplated by Section 8.3(cin any event within one Business Day) as close in time as possible to (including, to following the extent possible, on closing of the same day as) the issuance purchase of the Top-Up Option Shares.
(d) The Parent and Acquisition Sub understand the Purchaser acknowledge that the Company Top-Up Option Shares which Acquisition Sub that the Purchaser may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act of 1933 (the “Securities Act”), and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. The Parent and Acquisition Sub the Purchaser represent and warrant to the Company that Acquisition Sub the Purchaser is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub The Purchaser agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub the Purchaser for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof within the meaning in violation of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 3 contracts
Sources: Merger Agreement (Covidien PLC), Merger Agreement (Aspect Medical Systems Inc), Merger Agreement (Aspect Medical Systems Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Parent and Purchaser an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase from the Company up to that number of authorized and unissued newly issued shares of Company Shares common stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares common stock that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at and Purchaser immediately following consummation of the time of such exerciseOffer, shall constitute 100 Company Shares one share more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days outstanding on a fully diluted basis (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares) at a price for consideration per share Top-Up Option Share equal to the Offer Price; provided, however, that .
(b) The Top-Up Option shall be exercisable only after the purchase of and payment for Shares pursuant to the Offer by Parent or Purchaser as a result of which Parent and Purchaser own beneficially at least 85% of the Shares. The Top-Up Option shall not be exercisable unless immediately after such exercise and if the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying common stock subject thereto exceeds the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value authorized shares of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltycommon stock available for issuance.
(c) In the event Acquisition Sub wishes that Parent or Purchaser wish to exercise the Top-Up Option, Acquisition Sub Parent and Purchaser shall deliver to give the Company one day’s prior written notice specifying the number of shares of Company common stock that are or will be owned by Parent and Purchaser immediately following consummation of the Offer and specifying a place and a time for the closing of the purchase. The Company shall, as soon as practicable following receipt of such notice, deliver written notice (the “Top-Up Notice”) setting forth (i) to Purchaser specifying the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company portion of the consideration required to be delivered in exchange for purchase price owing upon exercise of the Top-Up Option Shares being that equals the product of (i) the number of shares of Company common stock purchased pursuant to the Top-Up Option, and multiplied by (ii) the Company Offer Price, shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, paid to the extent possibleCompany, on at the same day as) the issuance election of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise Purchaser, in cash (by wire transfer or cashiers’ check) or by delivery of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant promissory note having full recourse to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities LawsParent.
Appears in 3 contracts
Sources: Merger Agreement (Esmark INC), Merger Agreement (OAO Severstal), Merger Agreement (OAO Severstal)
Top-Up Option. (a) The Company hereby irrevocably grants to Parent and Acquisition Sub an irrevocable option (the “"Top-Up Option”)") to purchase, exercisable only upon the terms and conditions set forth in this Section 2.4, to purchase that number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, howevera number of shares of Company Common Stock (the "Top-Up Option Shares") that, that when added to the number of shares of Company Common Stock owned by Parent or any wholly-owned Subsidiary of Parent at the time of exercise of the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance Option, constitutes one share of Company Shares pursuant thereto, Acquisition Sub would own Common Stock more than 90% of the number of shares of Company Shares then Common Stock that will be outstanding (assuming immediately after the issuance of the Top-Up Option Shares); and provided further, that in no event shall the . The Top-Up Option may be exercisable exercised by Parent or Acquisition Sub, in whole but not in part, at any time on or after the Acceptance Date and on or prior to the tenth business day after the later of (Ai) for a number the Acceptance Date or (ii) the expiration of Company Shares in excess any subsequent offering period; PROVIDED, HOWEVER, that the obligation of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit to deliver Top-Up Option Shares upon the exercise of the Top-Up Option or is subject to the delivery of the Top-Up Option Shares.
(b) Provided condition that no provision of any applicable Law law and no judgment, injunction, order or Order decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termssuch exercise. The aggregate purchase price payable for parties shall cooperate to ensure that the issuance of the Top-Up Option Shares being purchased by Acquisition Sub pursuant to is accomplished consistent with all applicable Legal Requirements, including compliance with an applicable exemption from registration of the Top-Up Option shall be determined by multiplying Shares under the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltySecurities Act.
(cb) In the event Parent or Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub Parent shall deliver to so notify the Company a and shall set forth in such notice (i) the “number of shares of Company Common Stock that are expected to be owned by Parent or any wholly-owned Subsidiary of Parent immediately preceding the purchase of the Top-Up Notice”Option Shares and (ii) setting forth (i) a place and time for the closing of the purchase of the Top-Up Option Shares. The Company shall, as soon as practicable following receipt of such notice, notify Parent of the number of shares of Company Common Stock then outstanding and the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and or Acquisition Sub Sub, as the case may be, shall cause to be delivered to pay the Company the consideration aggregate price required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.be
Appears in 3 contracts
Sources: Merger Agreement (Triangle Pharmaceuticals Inc), Merger Agreement (Triangle Pharmaceuticals Inc), Merger Agreement (Gilead Sciences Inc)
Top-Up Option. (a) The Company Subject to Section 1.4(b) and Section 1.4(c), Seller hereby irrevocably grants to Acquisition Sub Purchaser an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase that from Seller, at a price per share equal to the Offer Price, the number of authorized and unissued Company Shares shares of Seller Common Stock (the “Top-Up Option Shares”) equal to the lowest number of Company Shares shares of Seller Common Stock that, when added to the number of Company Shares beneficially shares of Seller Common Stock owned by Parent and/or Acquisition Sub at Purchaser as of immediately prior to the time exercise of such exercisethe Top-Up Option, shall constitute 100 Company Shares constitutes one share more than 90% of the Company Shares outstanding, assuming the issuance number of all Company Shares that are issuable within ten Business Days after the scheduled closing shares of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares Seller Common Stock then outstanding on a fully diluted basis (determined in accordance with Annex I) (assuming the issuance of the Top-Up Option Shares); and provided furtherprovided, however, that in no event shall the Top-Up Option may not be exercisable (A) for a exercised unless the aggregate number of Company Top-Up Option Shares in excess does not exceed the aggregate number of the Company’s then authorized and unissued shares of Company Seller Common Stock or (B) if any applicable Law or any applicable Order shall prohibit at the time of exercise of the Top-Up Option or which are not then outstanding (giving effect to the delivery shares of the Seller Common Stock issued pursuant to all then-outstanding stock options, restricted stock units and any other rights to acquire Seller Common Stock as if such shares were outstanding). The Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, be exercisable once at any one time after following the Appointment Time Acceptance Date and prior to the earlier to occur of (ia) the Effective Time and (iib) the termination of this Agreement in accordance with its terms. .
(b) The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition SubPurchaser, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company Seller a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder such payment, or by any combination of cash and such purchase pricepromissory note. Any such promissory note shall bear interest at a the applicable federal rate per annum equal to the prime lending rate prevailing during the period in which any portion determined under Section 1274(d) of the principal amount Code, shall mature on the first anniversary of the date of execution and delivery of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub that Purchaser wishes to exercise the Top-Up Option, Acquisition Sub it shall deliver to the Company Seller a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to shares of Seller Common Stock owned by Parent and Purchaser at the Top-Up Optiontime of such notice, (ii) the manner in which Acquisition Sub it intends to pay the applicable purchase price corresponding Top-Up Option Purchase Price and (iii) the place and time at which the closing of the purchase of such the Top-Up Option Shares by Acquisition Sub Purchaser is to take place. Seller shall, as soon as practicable following receipt of such notice, deliver written notice to Purchaser specifying, based on the information provided by Purchaser in its notice, the number of Top-Up Option Shares. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub Purchaser shall cause to be delivered to the Company Seller the consideration required to be delivered in exchange for the such Top-Up Option Shares being purchased pursuant to the Top-Up OptionShares, and the Company Seller shall cause to be issued to Acquisition Sub Purchaser a certificate representing such Topshares or, if Seller does not then have certificated shares of Seller Common Stock, the applicable number of book-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing entry shares of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option SharesSeller Common Stock.
(d) Parent and Acquisition Sub understand Purchaser acknowledge that the Company Top-Up Option Shares which Acquisition Sub that Purchaser may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub Purchaser represent and warrant to the Company Seller that Acquisition Sub Purchaser is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” Accredited Investor”, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub Purchaser agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub Purchaser for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof within the meaning in violation of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 3 contracts
Sources: Merger Agreement (Kenexa Corp), Merger Agreement (Kenexa Corp), Merger Agreement (Kenexa Corp)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Purchaser an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and subject to the conditions set forth in this Section 2.4herein, to purchase that at a price per share equal to the Common Offer Price an aggregate number of authorized and unissued Company Common Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Common Shares that, when added to the number of Company Common Shares beneficially owned by Parent and/or Acquisition Sub Parent, the Purchaser or their Affiliates at the time of such exercise, shall constitute 100 Company Shares one share more than ninety percent (90% %) of the Company total Common Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all then outstanding options, warrants, convertible or exchangeable securities on a Fully Diluted Basis (and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price); provided, however, that the Top-Up Option shall not be exercisable unless unless, immediately after such exercise and the issuance of Company Common Shares pursuant thereto, Acquisition Sub the Short Form Threshold would own more than 90% of the Company Shares then outstanding be reached (assuming the issuance of the Top-Up Option Shares); and provided provided, further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Common Shares in excess of the Company’s then total authorized and unissued shares Common Shares. Upon Parent’s request, the Company shall cause its transfer agent to certify in writing to Parent the number of Common Shares issued and outstanding as of immediately prior to the exercise of the Top-Up Option and after giving effect to the issuance of the Top-Up Option Shares.
(b) Purchaser shall pay the Company Common Stock the aggregate price required to be paid for the Top-Up Option Shares by delivery of either (i) cash for the full purchase price of the Top-Up Option Shares or (Bii) if any (x) cash in an amount equal to not less than the aggregate par value of the Top-Up Option Shares and (y) a promissory note (the “Promissory Note”) with a principal amount equal to the full purchase price of the Top-Up Option Shares less the amount of cash paid pursuant to immediately preceding clause (x), bearing simple interest at 6% per annum, and due 60 Business Days after the purchase of the Top-Up Option Shares.
(c) Provided that no applicable Law or any applicable Order regulation shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares in respect thereofpursuant thereto, Acquisition Sub or otherwise make such exercise or issuance illegal, the Purchaser may exercise the Top-Up OptionOption on one or more occasions, in whole but not or in part, at any one time after the Appointment Acceptance Time and prior to the earlier to occur of (i) the Effective Time and (ii) the valid termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyAgreement.
(cd) In Each time that the event Acquisition Sub Purchaser wishes to exercise the Top-Up Option, Acquisition Sub the Purchaser shall deliver send to the Company a written notice (a “Top-Up Exercise Notice”) specifying the denominations of the certificate or certificates evidencing the Top-Up Option Shares that the Purchaser wishes to receive, and the place, time and date for the closing of the purchase and sale pursuant to the Top-Up Option (the “Top-Up Closing”). The Company shall, promptly after receipt of the Top-Up Exercise Notice”) setting forth (i) , deliver a written notice to the Purchaser confirming the number of Top-Up Option Shares that Acquisition Sub intends to and the aggregate purchase pursuant to price therefor (the “Top-Up Notice Receipt”). At the Top-Up OptionClosing, (ii) the manner in which Acquisition Sub intends to Purchaser shall pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, in accordance with Section 1.8(b) and the Company shall cause to be issued and delivered to Acquisition Sub the Purchaser a certificate or certificates representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise or, at the Purchaser’s request or otherwise if the Company does not then have certificated Common Shares, the applicable number of the TopBook-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to Entry Shares. Such certificates or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing TopBook-Up Option Entry Shares shall may include any legends that are required by applicable securities LawsLaw.
Appears in 3 contracts
Sources: Merger Agreement, Merger Agreement (General Electric Co), Merger Agreement (Clarient, Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Purchaser an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and subject to the conditions set forth in this Section 2.4herein, to purchase purchase, at a price per share equal to the Offer Price, that number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lesser of (x) the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub Parent, Purchaser and their respective Subsidiaries and Affiliates at the time of such exercise, shall constitute 100 Company Shares ten thousand (10,000) shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days then outstanding (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares) at a price per share and (y) an aggregate number of Company Shares that is equal to 19.9% of the Offer PriceCompany Shares issued and outstanding as of the date hereof; provided, however, that the Top-Up Option shall not be exercisable unless unless, (i) immediately prior to such exercise, Parent, Purchaser and their respective Subsidiaries and Affiliates own more than 80% of the Company Shares then outstanding and (ii) immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would Parent, Purchaser and their respective Subsidiaries and Affiliates own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares)outstanding; and provided provided, further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then total authorized and unissued shares of Company Common Stock or Shares.
(Bb) if any Provided that no applicable Law or any applicable Order Legal Requirement shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares in respect thereofpursuant thereto, Acquisition Sub or otherwise make such exercise or issuance illegal, Purchaser may exercise and re-exercise the Top-Up OptionOption multiple times, in whole but not in part, at any one time or times after the Appointment Acceptance Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltySection 7.
(c) In the event Acquisition Sub Each time that Purchaser wishes to exercise the Top-Up Option, Acquisition Sub Purchaser shall deliver send to the Company a written notice (the a “Top-Up Exercise Notice”) setting forth specifying the denominations of the certificate or certificates evidencing the Top-Up Option Shares which the Purchaser wishes to receive, and the place, time and date for the closing of the purchase and sale pursuant to the Top-Up Option (i) a “Top-Up Closing”). The Company shall, promptly after receipt of a Top-Up Exercise Notice, deliver a written notice to the Purchaser confirming the number of Top-Up Option Shares that Acquisition Sub intends to and the aggregate purchase pursuant to the price therefore. At each Top-Up OptionClosing, (ii) the manner in which Acquisition Sub intends to Purchaser shall pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant issuable at such Top-Up Closing, by delivery of, at Purchaser’s option, (A) immediately available funds by wire transfer to an account designated by the Company, (B) a promissory note, bearing simple interest at 5% per annum, and due six months after the Top-Up OptionClosing, and or (C) any combination thereof. At each Top-Up Closing, the Company shall cause to be issued to Acquisition Sub Purchaser a certificate or certificates representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of issuable at such Top-Up Closing. Certificates representing Company Shares in connection with the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall may include any legends that are required by applicable federal or state securities Lawslaws.
Appears in 3 contracts
Sources: Merger Agreement (Biosite Inc), Merger Agreement (Beckman Coulter Inc), Merger Agreement (Biosite Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and subject to the conditions set forth in this Section 2.4herein, to purchase that at a price per share equal to the Offer Price the number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub and its Subsidiaries at the time of such exercise, shall constitute 100 Company Shares one (1) share more than 90% of the Company Shares outstanding, assuming then outstanding (the issuance of all Company Shares that are issuable within ten Business Days “Short Form Threshold”) (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price); provided, however, that (x) the Top-Up Option shall not be exercisable unless unless, immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub the Short Form Threshold would own more than 90% of the Company Shares then outstanding be reached (assuming the issuance of the Top-Up Option Shares); and provided further, that (y) in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then total authorized and unissued shares Company Shares (treating any Company Shares held in the treasury of the Company Common Stock as unissued).
(b) Merger Sub may pay the Company the aggregate price required to be paid for the Top-Up Option Shares either (i) entirely in cash or (Bii) if any applicable Law or any applicable Order shall prohibit at Merger Sub’s election, by (x) paying in cash an amount equal to not less than the exercise aggregate par value of the Top-Up Option or Shares and (y) executing and delivering to the delivery Company a promissory note having a principal amount equal to the balance of the aggregate purchase price pursuant to the Top-Up Option Sharesless the amount paid in cash pursuant to the preceding clause (x) (a “Promissory Note”). Any such Promissory Note shall be full recourse against Parent and Merger Sub and (i) shall bear simple interest at a rate of 3% per annum, (ii) shall mature on the first anniversary of the date of execution and delivery of such Promissory Note, (iii) may be prepaid at any time, in whole or in part, without premium or penalty and (iv) shall have no other material terms.
(bc) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares in respect thereofpursuant thereto, Acquisition or otherwise make such exercise or issuance illegal, (i) Merger Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Acceptance Time and prior to the earlier to occur of (ix) the Effective Time and (iiy) the termination of this Agreement pursuant to Article IX hereof and (ii) at the Company’s request, Merger Sub shall exercise the Top-Up Option, in accordance with its terms. The aggregate purchase price payable for whole but not in part, at such place, time and date specified by the Company after the Acceptance Time and prior to the earliest to occur of (x) the Effective Time and (y) the termination of this Agreement pursuant to Article IX hereof if, immediately after such exercise and the issuance of Company Shares pursuant thereto, the Short Form Threshold would be reached (assuming the issuance of the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyShares).
(cd) In the event Acquisition Merger Sub wishes to exercise the Top-Up Option, Acquisition Parent or Merger Sub shall deliver send to the Company a written notice (a “Top-Up Exercise Notice”) specifying the denominations of the certificate or certificates evidencing the Top-Up Option Shares which such party wishes to receive, and the place, time and date for the closing of the purchase and sale pursuant to the Top-Up Option (the “Top-Up Closing”). The Company shall, promptly after receipt of the Top-Up Exercise Notice”) setting forth (i) , deliver a written notice to Parent and Merger Sub confirming the number of Top-Up Option Shares that Acquisition Sub intends to and the aggregate purchase pursuant to price therefore (the “Top-Up Notice Receipt”). At the Top-Up OptionClosing, (ii) the manner in which Acquisition Merger Sub intends to shall pay the applicable purchase Company the aggregate price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is required to take place. At the closing of the purchase of be paid for the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered by delivery of cash and, if applicable, a Promissory Note in an aggregate principal amount equal to the Company the consideration required to be delivered amount specified in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionNotice Receipt, and the Company shall cause to be issued and delivered to Acquisition Merger Sub a certificate Certificate or Certificates representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on or, if the same day Company does not then have certificated shares, the applicable number of Book-Entry Shares. Such Certificates or Book-Entry Shares may include any legends that are required by federal or state securities laws.
(e) Parent and Merger Sub acknowledge that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Option Shares that Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will shall not be registered under the Securities Act and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offeringfrom registration under the Securities Act. Parent and Acquisition Merger Sub represent and warrant to the Company that Acquisition Merger Sub is, or will shall be upon the any purchase of the Top-Up Option Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Merger Sub agrees that the Top-Up Option Option, and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option Option, if any, are being and will shall be acquired by Acquisition Merger Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. ).
(f) Any certificates evidencing dilutive impact on the value of the Company Shares as a result of the issuance of the Top-Up Option Shares shall include will not be taken into account in any legends required determination of the fair value of any Dissenting Company Shares pursuant to Section 262 of the DGCL as contemplated by applicable securities LawsSection 3.7(c).
Appears in 3 contracts
Sources: Merger Agreement (Nuance Communications, Inc.), Merger Agreement (Nuance Communications, Inc.), Merger Agreement (Transcend Services Inc)
Top-Up Option. (a) The Subject to Section 1.04(b) and 1.04(c) of this Agreement, the Company hereby irrevocably grants to Acquisition Sub Merger Sub, an option option, for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, to purchase that from the Company, up to the number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Merger Sub at the time of such exercisethe exercise of the Top-Up Option, shall constitute 100 constitutes at least one Company Shares Share more than 90% of the Company Shares outstanding, assuming that would be outstanding immediately after the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase to be issued upon exercise of the Top-Up Option Option, calculated on a fully-diluted basis or, at Parent’s election, on a primary basis at the Effective Time (such Company Shares to be issued upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option Shares) may be exercised by Merger Sub only once, at any time during the ten Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided in accordance with the terms of this Agreement, during the ten Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Sub shall own as of such time less than 90% of the Shares outstanding on a price per share equal fully-diluted basis; provided that notwithstanding anything in this Agreement to the Offer Price; providedcontrary, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and to the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding extent (assuming i) the issuance of the Top-Up Option Shares); and provided further, that in no event shall Shares would require approval of the Top-Up Option be exercisable Company’s stockholders under any applicable Legal Requirement or (Aii) for a the number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the issuable upon exercise of the Top-Up Option or would exceed the delivery number of the Top-Up Option authorized but unissued and unreserved Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Merger Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may shall be paid by Acquisition Sub, at its election, either (A) entirely payable in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyMerger Sub.
(c) In the event Acquisition Merger Sub wishes to exercise the Top-Up Option, Acquisition Merger Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Merger Sub intends to purchase pursuant to the Top-Up Option, Option and (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Merger Sub (the “Top-Up Closing”) is to take place. At the closing of the purchase of the Top-Up Option SharesClosing, Parent and Acquisition Merger Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionShares, and the Company shall cause to be issued to Acquisition Merger Sub a certificate representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares Closing to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.29.09, and if not so consummated on such day, as promptly thereafter as possiblepossible (provided, however, that the Company shall not be required to issue the Top-Up Shares until the consideration required to be received in exchange of the Top-Up Shares has been received). The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and Delaware Law as contemplated by Section 8.3(c) 6.11 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Merger Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option Shares will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Acquisition Merger Sub represent represents, warrants and warrant agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Each of Parent and Merger Sub represents and warrants to the Company that Acquisition Merger Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Lawslaws.
(e) Any dilutive impact on the value of the Shares as a result of the issuance of the Top-Up Shares will not be taken into account in any determination of the fair value of any dissenting Company Shares pursuant to Section 262 of Delaware Law as contemplated by Section 2.08.
Appears in 3 contracts
Sources: Merger Agreement (Symyx Technologies Inc), Merger Agreement (Symyx Technologies Inc), Merger Agreement (Symyx Technologies Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub the Purchaser an irrevocable option (the “Top-Up Option”)) to purchase, exercisable only upon at a price per share equal to the terms and conditions set forth in this Section 2.4Offer Price, to purchase that a number of authorized and unissued Company Common Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Common Shares beneficially owned by Parent and/or Acquisition Sub or the Purchaser or any direct or indirect wholly owned Subsidiary of Parent or the Purchaser at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares constitutes one Common Share more than 90% of the Company Shares outstanding, assuming the issuance number of all Company Common Shares that are issuable within ten Business Days will be outstanding immediately after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) . The Top-Up Option may be exercised by the Purchaser, in whole, at a price per share equal any time on or after the date on which the Purchaser accepts for payment and pays for all Common Shares validly tendered and not validly withdrawn pursuant to the Offer Price(the “Acceptance Date”) and on or prior to the fifth Business Day after the later of the Acceptance Date and the expiration of any subsequent offering period under Rule 14d-11 under the Exchange Act; provided, however, that the obligation of the Company to deliver Top-Up Option Shares upon the exercise of the Top-Up Option is subject to the conditions that (i) the number of Top-Up Option Shares to be issued by the Company shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90in no event exceed 19.90% of the Company number of outstanding Common Shares then outstanding (assuming or the voting power of the Company, in each case, as of immediately prior to the issuance of the Top-Up Option Shares); and provided further, that in (ii) no event shall the Top-Up Option be exercisable (A) for a number provision of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law and no judgment, injunction, order or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereofof such exercise, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (iiii) the Effective Time and (ii) the termination issuance of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying would not require approval of the Company’s shareholders under applicable Law or regulation (including the NYSE rules and regulations), (iv) upon exercise of the Top-Up Option, the number of such Top-Up Option Common Shares owned by Parent or the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash Purchaser or (B) in cash in an amount equal to any direct or indirect wholly owned Subsidiary of Parent or the aggregate par value Purchaser constitutes one Share more than 90% of the purchased number of Common Shares that will be outstanding immediately after the issuance of the Top-Up Option Shares and by executing (v) the Purchaser has accepted for payment and delivering paid for all Common Shares validly tendered in the Offer and not validly withdrawn. The parties shall cooperate to ensure that the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder issuance of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up OptionOption Shares is accomplished consistent with all applicable legal requirements of all Governmental Entities, Acquisition Sub shall deliver to including compliance with an applicable exemption from registration of the Company a notice (the “Top-Up Notice”Option Shares under the Securities Act.
(b) setting Upon the exercise of the Top-Up Option in accordance with Section 1.4(a), the Purchaser shall so notify the Company and shall set forth in such notice (i) the total number of Common Shares that are expected to be owned by Parent, the Purchaser or any direct or indirect wholly owned Subsidiary of Parent or the Purchaser immediately preceding the purchase of the Top-Up Option Shares and (ii) a place and time for the closing of the purchase of the Top-Up Option Shares. The Company shall, as soon as practicable following receipt of such notice, notify Parent and the Purchaser of the number of Common Shares then outstanding and the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub the Purchaser shall cause to be delivered to pay the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionShares, and the Company shall cause to be issued to Acquisition Sub the Purchaser a certificate representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the aggregate purchase of such Top-Up Option Shares to occur on the same day that price payable for the Top-Up Notice is deemed received Shares may be paid by the Purchaser by executing and delivering to the Company pursuant a full recourse promissory note having a principal amount equal to Section 11.2the balance of the aggregate purchase price for the Top-Up Shares. Any such promissory note shall bear interest at the rate of interest per annum equal to the rate of interest publicly announced by Citibank, and if not so consummated on in the City of New York from time to time during such dayperiod, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause such bank’s Prime Lending Rate, shall mature on the Merger to be consummated in accordance with Section 253 first anniversary of the DGCL date of execution and as contemplated by Section 8.3(c) as close in time as possible to (including, to delivery of such promissory note and may be prepaid without premium or penalty. In the extent possible, on the same day as) the issuance of event that this Agreement is terminated after the Top-Up Option Shares.
(d) Parent is exercised and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant prior to the Company that Acquisition Sub isEffective Time, or will be upon all amounts then owing pursuant to the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option promissory note (including all interest) shall thereupon become immediately due and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Lawspayable.
Appears in 3 contracts
Sources: Merger Agreement (Raven Acquisition Corp.), Merger Agreement (Danaher Corp /De/), Merger Agreement (Tektronix Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Parent and Merger Subsidiary an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.42.03, to purchase that from the Company the number of authorized newly-issued, fully paid and unissued non-assessable shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest lesser of: (i) the number of shares of Company Shares Common Stock that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock owned directly or (B) if any applicable Law or any applicable Order shall prohibit indirectly by Ultimate Parent, Parent and Merger Subsidiary at the time of exercise of the Top-Up Option or Option, constitutes 90% of the delivery number of shares of Company Common Stock that would be outstanding on a fully-diluted basis immediately after taking into account the issuance of all shares of Company Common Stock subject to the Top-Up Option Shares.
Option; or (bii) Provided the aggregate number of shares of Company Common Stock that no applicable Law the Company is authorized to issue under its articles of incorporation but that are not issued and outstanding (and are not subscribed for or Order shall prohibit otherwise committed to be issued or reserved for issuance) at the time of exercise of the Top-Up Option or the delivery of the Option.
(b) The Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Optionbe exercised by Parent or Merger Subsidiary, in whole but not or in part, at any one time at or after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termsAcceptance Time. The aggregate purchase price payable for the Top-Up Option Shares shares of Company Common Stock being purchased by Acquisition Sub Parent or Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition SubParent or Merger Subsidiary, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price, or by any combination of the foregoing. Any such promissory note shall bear interest at a the rate of 3% per annum equal to annum, shall mature on the prime lending rate prevailing during the period in which any portion first anniversary of the principal amount date of execution and delivery of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub Parent or Merger Subsidiary wishes to exercise the Top-Up Option, Acquisition Sub Parent or Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth forth: (i) the number of Top-Up Option Shares shares of Company Common Stock that Acquisition Sub Parent or Merger Subsidiary intends to purchase pursuant to the Top-Up Option, ; (ii) the manner in which Acquisition Sub Parent or Merger Subsidiary intends to pay the applicable purchase price exercise price; and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares shares of Company Common Stock by Acquisition Sub Parent or Merger Subsidiary is to take place. The Company shall, as soon as practicable following receipt of such notice, notify Merger Subsidiary of the number of shares of Company Common Stock then outstanding, the number of shares of Company Common Stock then outstanding on a fully-diluted basis and the number of Top-Up Shares. At the closing of the purchase of the Top-Up Option Sharessuch shares of Company Common Stock, Parent and Acquisition Sub or Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Optionsuch shares, and the Company shall cause to be issued to Acquisition Sub Parent or Merger Subsidiary (as the case may be) a certificate representing such Top-Up Option Sharesshares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand Merger Subsidiary acknowledge that the Company Shares which Acquisition Sub Merger Subsidiary may acquire upon exercise of the Top-–Up Option will not be registered under the Securities 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub Merger Subsidiary represent and warrant to the Company that Acquisition Sub each of Parent or Merger Subsidiary is, or will be upon the purchase of the Top-–Up Option Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities 1933 Act. Acquisition Sub agrees Parent and Merger Subsidiary agree that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub Merger Subsidiary for its own account, for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 3 contracts
Sources: Merger Agreement (Micros Systems Inc), Merger Agreement (Oracle Corp), Merger Agreement (Oracle Corp)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition the Merger Sub an option (the “Top-Up Option”), exercisable only from and after the Acceptance Time upon the terms and subject to the conditions set forth in this Section 2.4herein, to purchase that at a price per share equal to the Offer Price an aggregate number of authorized and unissued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially owned Common Stock owned, directly or indirectly, by Merger Sub or Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares one share more than 90% of the shares of Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days Common Stock then outstanding (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price); provided, however, that the Top-Up Option shall not be exercisable unless unless, immediately after such exercise and the issuance of shares of Company Shares Common Stock pursuant thereto, Acquisition Sub the Short Form Threshold would own more than 90% of the Company Shares then outstanding be reached (assuming the issuance of the Top-Up Option Shares); and provided provided, further, that in no event shall the Top-Up Option be exercisable (A) for a number of shares of Company Shares Common Stock in excess of the Company’s then total authorized and unissued shares of Company Common Stock (treating shares of Company Common Stock owned by the Company as treasury stock as unissued). Upon Parent’s request, the Company shall use commercially reasonable efforts to cause its transfer agent to certify in writing to Parent the number of shares of Company Common Stock issued and outstanding as of immediately prior to the exercise of the Top-Up Option and after giving effect to the issuance of the Top-Up Option Shares. Merger Sub shall pay the Company the aggregate par value of the Top-Up Option Shares in cash and the balance of the aggregate price required to be paid for the Top-Up Option Shares by delivery of a promissory note (the “Promissory Note”). The Promissory Note shall be full recourse against Merger Sub, shall be guaranteed by Parent and shall bear interest at the rate of interest per annum equal to the prime lending rate prevailing from time to time during such period as published in The Wall Street Journal, shall mature on the first anniversary of the date of execution and delivery of such Promissory Note and may be prepaid without premium or penalty; provided, however, upon any event of default under the Promissory Note, all principal and accrued interest thereunder shall immediately become due and payable.
(Bb) if any Provided that no applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares in respect thereofpursuant thereto, Acquisition or otherwise make such exercise or issuance illegal, the Merger Sub may exercise the Top-Up Option, Option only once and in whole but not in part, at any one time after the Appointment Acceptance Time and prior to the earlier to occur of (i) the Effective Time and (ii) the valid termination of this Agreement in accordance with its termsAgreement. The aggregate purchase price payable for Parties shall cooperate to ensure that the issuance of the Top-Up Option Shares being purchased by Acquisition Sub pursuant to is accomplished consistent with all applicable Laws (other than any Laws that require shareholder approval for the issuance of the Top-Up Option shall be determined by multiplying Shares), including compliance with an applicable exemption from registration of the number of such Top-Up Option Shares by under the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltySecurities Act.
(c) In the event Acquisition Sub wishes to To exercise the Top-Up Option, Acquisition Sub Parent shall deliver send to the Company a written notice (the a “Top-Up Exercise Notice”) setting forth specifying (i) the number of Top-Up Option Shares that Acquisition held by Parent and Merger Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of immediately preceding the purchase of the Top-Up Option Shares, Parent (ii) the denominations of the certificate or certificates evidencing the Top-Up Option Shares that Merger Sub wishes to receive, and Acquisition (iii) the place, time and date for the closing of the purchase and sale of the Top-Up Option Shares. Merger Sub agrees that, if requested by the Company, Merger Sub shall exercise the Top-Up Option and cause the Merger to be delivered consummated in accordance with Article II. The Company shall, promptly after receipt of the Top-Up Exercise Notice, deliver a written notice to Parent confirming the number of Top-Up Option Shares and the aggregate purchase price therefor (the “Top-Up Notice Receipt”). At the closing of the purchase and sale pursuant to the Top-Up Option, which shall take place immediately prior to the Merger Closing, Merger Sub shall deliver to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant in an aggregate amount equal to the purchase price specified in the Top-Up OptionNotice Receipt, and the Company shall cause to be issued and delivered to Acquisition Merger Sub a certificate or certificates representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on or, at Parent’s request, the same day applicable number of Book-Entry Shares. Such certificates or Book-Entry Shares may include any legends that are required by applicable Law. Parent and the Merger Sub each acknowledge that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will shall not be registered under the Securities Act and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Merger Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will shall be acquired by Acquisition Merger Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing ).
(d) Notwithstanding anything to the contrary herein, the Parties agree that in any appraisal proceeding under Section 262 of the DGCL, the exercise of the Top-Up Option, the issuance of the Top-Up Option Shares, the delivery by Merger Sub of cash or the Top-Up Promissory Note in payment for such Top-Up Option Shares and the other transactions contemplated in connection with the exercise of the Top-Up Option shall include not be considered in connection with the determination of the fair value of any legends required by applicable securities LawsDissenting Shares in accordance with Section 262 of the DGCL, and the Parties further agree that no Party shall take any position to the contrary in any such proceeding.
Appears in 2 contracts
Sources: Agreement and Plan of Merger (Insite Vision Inc), Merger Agreement (Insite Vision Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub the Purchaser an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and subject to the conditions set forth in this Section 2.4herein, to purchase that at a price per share equal to the Offer Price an aggregate number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal up to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or Acquisition Sub or the Purchaser at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase exercise of the Top-Up Option Shares upon the vestingOption, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless constitutes one (1) Share more than ninety percent (90%) of the conversion or exercise price or other terms and conditions thereof Shares then outstanding on a fully diluted basis (assuming after giving effect to the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price); provided, however, that the Top-Up Option shall not be exercisable unless unless, immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub the Short Form Threshold would own more than 90% of the Company Shares then outstanding be reached (assuming the issuance of the Top-Up Option Shares); and provided provided, further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then total authorized and unissued shares Shares. Upon Parent’s request, the Company shall cause its transfer agent to certify in writing to Parent the number of Shares issued and outstanding as of immediately prior to the exercise of the Top-Up Option and after giving effect to the issuance of the Top-Up Option Shares. The Purchaser may pay the Company Common Stock the aggregate price required to be paid for the Top-Up Option Shares, at the option of Parent, either in cash or by delivery of a promissory note (Bthe “Promissory Note”).
(b) if any Provided that no applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares in respect thereofpursuant thereto, Acquisition Sub or otherwise make such exercise or issuance illegal, the Purchaser may exercise the Top-Up OptionOption on one or more occasions, in whole but not or in part, at any one time on or after the Appointment Time Acceptance Date (at the election of the Purchaser) and prior to the earlier to occur of (i) the Effective Time and (ii) the valid termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyAgreement.
(c) In Each time that the event Acquisition Sub Purchaser wishes to exercise the Top-Up Option, Acquisition Sub the Purchaser shall deliver send to the Company a written notice (a “Top-Up Exercise Notice”) specifying the denominations of the certificate or certificates evidencing the Top-Up Option Shares that the Purchaser wishes to receive, and the place, time and date for the closing of the purchase and sale pursuant to the Top-Up Option (the “Top-Up Closing”). The Company shall, promptly after receipt of the Top-Up Exercise Notice”) setting forth (i) , deliver a written notice to the Purchaser confirming the number of Top-Up Option Shares that Acquisition Sub intends to and the aggregate purchase pursuant to price therefor (the “Top-Up Notice Receipt”). At the Top-Up OptionClosing, (ii) the manner in which Acquisition Sub intends to Purchaser shall pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant by delivery of cash or the Promissory Note in an aggregate principal amount equal to that specified in the Top-Up OptionNotice Receipt, and the Company shall cause to be issued and delivered to Acquisition Sub the Purchaser a certificate or certificates representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day Such certificates may include any legends that the Top-Up Notice is deemed received are required by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Sharesapplicable Law.
(d) Parent Subject to the terms and Acquisition Sub understand that conditions hereof, and for so long as this Agreement has not been terminated pursuant to the provisions hereof, the Company agrees that it shall maintain, free from preemptive rights, sufficient authorized but unissued Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant issuable pursuant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees this Agreement so that the Top-Up Option may be exercised without additional authorization of Shares, after giving effect to all other options, warrants, convertible securities and the Top-Up Option Shares other rights to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Lawspurchase Shares.
Appears in 2 contracts
Sources: Merger Agreement (Gentek Inc), Merger Agreement (ASP GT Holding Corp.)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub the Buyer an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and subject to the conditions set forth in this Section 2.4herein, to purchase that at the Offer Price an aggregate number of authorized and unissued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or Acquisition Sub Parent, Buyer and their affiliates at the time of such exercise, shall constitute 100 one share of Company Shares Common Stock more than 90% of the outstanding shares of Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at Common Stock on a price per share equal to the Offer Pricefully diluted basis; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of shares of Company Shares Common Stock in excess of the Company’s then number of authorized and but unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit as of immediately prior to the exercise issuance of the Top-Up Option or the delivery Shares (giving effect to shares of Company Common Stock reserved for issuance under all outstanding stock options, restricted stock and any other rights to acquire Company Common Stock as if such shares of Company Common Stock were outstanding); provided further, that the Top-Up Option Shares.
shall terminate upon the earlier of: (bx) Provided that no applicable Law or Order shall prohibit the exercise fifth business day after the later of (1) the expiration date of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time Offer and prior to the earlier to occur of (i2) the Effective Time expiration of any “subsequent offering period”; and (iiy) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable Top-Up Option shall not be exercisable until such time as Buyer shall have accepted for payment the shares of Company Common Stock tendered pursuant to the Offer and all shares tendered in any “subsequent offering period” and in no event shall the Top-Up Option Shares being purchased by Acquisition Sub pursuant be exercisable if the Minimum Tender Condition shall have been waived.
(b) The parties shall cooperate to ensure that the issuance of the Top-Up Option shall be determined by multiplying Shares is accomplished consistent with all applicable legal requirements of all Governmental Entities, including compliance with an applicable exemption from registration of the number of such Top-Up Option Shares by under the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltySecurities Act.
(c) In the event Acquisition Sub wishes to To exercise the Top-Up Option, Acquisition Sub the Buyer shall deliver send to the Company a written notice (the a “Top-Up Exercise Notice”) setting forth specifying (i) the number of Top-Up Option Shares shares of Company Common Stock that Acquisition Sub intends to purchase pursuant to the Top-Up Optionshall be owned by Parent, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price Buyer and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of their affiliates immediately preceding the purchase of the Top-Up Option SharesShares and (ii) the place, Parent time and Acquisition Sub date (which date shall cause to be delivered no later than the fifth business day following the date of the Top-Up Exercise Notice) for the closing of the purchase and sale of the Top-Up Shares (the “Top-Up Closing”). The Company shall, promptly after receipt of the Top-Up Exercise Notice, deliver a written notice to the Company Buyer confirming the consideration number of Top-Up Shares and the aggregate purchase price therefor (the “Top-Up Notice Receipt”). At the Top-Up Closing, the Buyer shall pay the Company, in the manner set forth in Section 1.11(d) hereof, the aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant Shares, in an aggregate principal amount equal to that specified in the Top-Up OptionNotice Receipt, and the Company shall cause to be issued and delivered to Acquisition Sub the Buyer a certificate or certificates representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by Shares or, at the Buyer’s request or otherwise if the Company pursuant to Section 11.2does not then have certificated shares of Company Common Stock, and if not so consummated on such day, as promptly thereafter as possiblethe applicable number of uncertificated shares represented by book entry (“Book-Entry Shares”). The parties further agree to use their reasonable best efforts to cause Such certificates or Book-Entry Shares may include any legends that are required by applicable Law.
(d) Buyer may pay the Merger Company the aggregate price required to be consummated paid for the Top-Up Shares either (i) entirely in accordance with Section 253 of cash or (ii) at Buyer’s election, by (x) paying in cash an amount equal to not less than the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance aggregate par value of the Top-Up Shares and (y) executing and delivering to the Company a promissory note having a principal amount equal to the balance of the aggregate purchase price pursuant to the Top-Up Option Sharesless the amount paid in cash pursuant to the preceding clause (x) (a “Promissory Note”). Any such Promissory Note shall be full recourse against Parent and the Buyer and (i) shall bear interest at the rate of 2% per annum, (ii) shall mature on the first anniversary of the date of execution and delivery of such Promissory Note and (iii) may be prepaid, in whole or in part, without premium or penalty.
(de) Parent and Acquisition Sub understand Buyer acknowledge that the shares of Company Shares Common Stock which Acquisition Sub Buyer may acquire upon exercise of the Top-Up Option will shall not be registered under the Securities Act and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub Buyer represent and warrant to the Company that Acquisition Sub Buyer is, or will shall be upon the any purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub Buyer agrees that the Top-Up Option Option, and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option Option, if any, are being and will shall be acquired by Acquisition Sub Buyer for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 2 contracts
Sources: Merger Agreement (iPCS, INC), Merger Agreement (Sprint Nextel Corp)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Parent and Merger Sub an irrevocable option (the “Top-Up Option”)) to purchase, exercisable only upon at a price per share equal to the terms and conditions set forth in this Section 2.4Per Share Amount, to purchase that a number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition or Merger Sub or any wholly-owned Subsidiary of Parent or Merger Sub at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares constitutes one Share more than 90% of the Company Shares outstanding, assuming the issuance number of all Company Shares that are issuable within ten Business Days will be outstanding immediately after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) . The Top-Up Option shall be exercised by Parent or Merger Sub, in whole or in part, at a price per share equal any time on or after the expiration date of the Offer and on or prior to the fifth Business Day after the later of (1) the expiration date of the Offer Priceor (ii) the expiration of any subsequent offering period; provided, however, that the obligation of the Company to deliver Top-Up Option Shares upon the exercise of the Top-Up Option is subject to the conditions that (A) the number of Top-Up Option Shares to be issued by the Company shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90in no event exceed 19.90% of the Company number of outstanding Shares then outstanding (assuming or the voting power of the Company, in each case, as of immediately prior to and after giving effect to the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if no provision of any applicable Law law and no judgment, injunction, order or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereofof such exercise, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (iC) the Effective Time and (ii) the termination issuance of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying would not require approval of the Company’s stockholders under applicable law or regulation (including, without limitation, New York Stock Exchange rules and regulations, (D) upon exercise of the Top-Up Option, the number of such Shares owned by Parent or Merger Sub or any wholly-owned Subsidiary of Parent or Merger Sub constitutes one Share more than 90% of the number of Shares that will be outstanding immediately after the issuance of the Top-Up Option Shares, and (E) Merger Sub has accepted for payment and paid for all Shares validly tendered in the Offer and not withdrawn. The parties shall cooperate to ensure that the issuance of the Top-Up Option Shares by the Offer Priceis accomplished consistent with all applicable legal requirements of all Governmental Entities, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in including compliance with an amount equal to the aggregate par value applicable exemption from registration of the purchased Top-Up Option Shares under the Securities Act. The Top-Up Option shall be exercised (and may only be exercised) if following its exercise, the condition set forth in clause (D) above would be satisfied.
(b) Upon the exercise of the Top-Up Option in accordance with Section 1A.4(a), Parent shall so notify the Company and shall set forth in such notice (i) the number of Shares that are expected to be owned by Parent, Merger Sub or any wholly-owned Subsidiary of Parent or Merger Sub immediately preceding the purchase of the Top-Up Option Shares and by executing (ii) a place and delivering to time for the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion closing of the principal amount purchase of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up OptionOption Shares. The Company shall, Acquisition as soon as practicable following receipt of such notice, notify Parent and Merger Sub shall deliver to of the Company a notice (the “Top-Up Notice”) setting forth (i) number of Shares then outstanding and the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub or Merger Sub, as the case may be, shall cause to be delivered to pay the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionShares, and the Company shall cause to be issued to Acquisition Parent or Merger Sub a certificate representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the aggregate purchase of such Top-Up Option Shares to occur on the same day that price payable for the Top-Up Notice is deemed received Shares may be paid by Merger Sub or Parent by executing and delivering to the Company pursuant a promissory note having a principal amount equal to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 balance of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, aggregate purchase price for the Top-Up Shares. Any such promissory note shall bear interest at the rate of interest per annum equal to the extent possibleInterest Rate, shall mature on the same day as) first anniversary of the issuance date of execution and delivery of such promissory note and may be prepaid without premium or penalty. In the event that this Agreement is terminated after the Top-Up Option Shares.
(d) Parent is exercised and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant prior to the Company that Acquisition Sub isEffective Time, or will be upon all amounts then owing pursuant to the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option promissory note (including all interest) shall thereupon become immediately due and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Lawspayable.
Appears in 2 contracts
Sources: Agreement and Plan of Merger (Elkcorp), Agreement and Plan of Merger (CGEA Investor, Inc.)
Top-Up Option. (a) The Subject to Section 1.4(b) and Section 1.4(c) hereof, the Company hereby irrevocably grants to Acquisition Parent and Merger Sub an option irrevocable and non-transferable option, for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, to purchase that from the Company such number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Merger Sub and/or Parent and/or Acquisition Sub at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 constitutes one share of Company Shares Common Stock more than 90% of the outstanding shares of Company Shares outstandingCommon Stock (calculated on a fully diluted basis), assuming and giving effect to the issuance of all shares of Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of Common Stock subject to the Top-Up Option Shares upon the vesting, conversion or exercise (such shares of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of Company Common Stock subject to the Top-Up Option being hereinafter referred to as the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Parent or Merger Sub, in whole and not in part, only once, at a price per share equal to any time during the Offer Price20 Business Day period next following the Acceptance Date, or if the Subsequent Offering Period is made available, during the 20 Business Day period next following the expiration date of the Subsequent Offering Period; provided, however, that notwithstanding anything in this Agreement to the contrary the Top-Up Option shall not be exercisable unless immediately after such exercise and to the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable extent (A) for a the number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued shares of Company Common Stock, (B) any provision of applicable Law or any judgment, injunction, order or decree of any Governmental Authority shall prohibit such exercise, or require any action, consent, approval, authorization or permit of, action by, or filing with or notification to, any Governmental Authority in connection with such exercise or the delivery of the Top-Up Option Shares.
Shares in respect of such exercise, if such action, consent, approval, authorization or permit, action, filing or notification has not theretofore been obtained or made, (bC) Provided that no applicable Law or Order shall prohibit the issuance of the shares of Company Common Stock upon exercise of the Top-Up Option would require approval of the Company’s shareholders under Nasdaq rules, or (D) the delivery conditions set forth in Sections 7.1(b) and (c) are not satisfied as of the time of the issuance of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termsShares. The aggregate purchase price payable for the Top-Up Option Shares shares of Company Common Stock being purchased by Acquisition Parent or Merger Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such shares then-subject to the Top-Up Option Shares by the Offer Price, without interest. Such purchase price may shall be paid by Acquisition Sub, at its election, either (A) entirely Parent or Merger Sub by paying in cash or (B) in cash in an amount equal to the aggregate par value of such shares which shall be allocated to the purchased TopCompany’s stated (or “paid-Up Option Shares in”) capital account and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder balance of such purchase priceprice which balance shall be allocated to the Company’s “additional capital” account. Any such Such promissory note shall bear interest at a rate per annum equal to at the prime lending rate prevailing during the period as announced by Citibank, N.A. and in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated effect on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until made and shall mature and become due and payable on the date first Business Day next following the Effective Time of payment in full of such promissory note, the Merger and may be prepaid without premium or penalty.
(c) In the event Acquisition Parent or Merger Sub wishes elects, subject to the provisions of Section 1.4(b) to exercise the Top-Up Option, Acquisition Parent or Merger Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth forth
(i) its election to so exercise and purchase the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant then-subject to the Top-Up Option, and (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the simultaneous exercise and purchase of such Top-Up Option Shares by Acquisition Parent or Merger Sub is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Sub that in addition to the provisions of Section 1.4(b), it shall be a condition to the exercise of the Top-Up Option that, simultaneously with such exercise of the Top-Up Option and the issuance of the Top-Up Shares, Merger Sub shall, and Parent shall cause Merger Sub to, simultaneously consummate the Merger in accordance with Section 253 of the DGCL as contemplated by Section 6.14 and file with the SEC a notice of termination of the Company’s Exchange Act reporting status on Form 15. At the closing of the simultaneous exercise and purchase of the Top-Up Option Shares, Parent and Acquisition or Merger Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to and consummation of the Top-Up OptionMerger, and the Company shall cause to be issued to Acquisition Parent or Merger Sub (as the case may be) a certificate representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause (i) the exercise of the Top-Up Option, (ii) the issuance and closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2Shares, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause (iii) the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible 6.14 to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Sharesoccur simultaneously.
(d) Parent and Acquisition Merger Sub understand hereby acknowledge and agree that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option Shares will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Acquisition Merger Sub represent represents, warrants and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option is being, and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be be, acquired by Acquisition Parent or Merger Sub for the purpose of investment and not with a view to or for resale in connection with any public resale or distribution thereof within the meaning in violation of the Securities Act. Any certificates evidencing Top-Up Option Shares shall may include any legends required by applicable Law, U.S. federal securities Lawslaws. Until the earlier to occur of the Effective Time and the termination of this Agreement, the Company shall reserve for issuance the maximum number of shares issuable under the Top-Up Option.
Appears in 2 contracts
Sources: Merger Agreement (Plethico Pharmaceuticals Ltd.), Merger Agreement (Nutra Acquisition CO Inc.)
Top-Up Option. (a) The Company hereby irrevocably grants to Parent and Acquisition Sub an assignable and irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase that from the Company the number of authorized newly-issued, fully paid and unissued non-assessable shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest lesser of: (i) the number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or Option, constitutes 80% of the delivery number of shares of Company Common Stock that would be outstanding on a fully-diluted basis immediately after the issuance of all shares of Company Common Stock subject to the Top-Up Option Shares.
Option; or (bii) Provided the aggregate number of shares of Company Common Stock that no applicable Law the Company is authorized to issue under its articles of incorporation but that are not issued and outstanding (and are not subscribed for or Order shall prohibit otherwise committed to be issued or reserved for issuance) at the time of exercise of the Top-Up Option or the delivery of the Option.
(b) The Top-Up Option Shares in respect thereof, may be exercised by Parent or Acquisition Sub may exercise the Top-Up OptionSub, in whole but not or in part, at any one time at or after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termsAcceptance Time. The aggregate purchase price payable for the Top-Up Option Shares shares of Company Common Stock being purchased by Parent or Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares shares by the Offer Price, without interest. Such purchase price may be paid by Parent or Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price, or by any combination of the foregoing. Any such promissory note shall bear interest at a the rate of 3% per annum equal to annum, shall mature on the prime lending rate prevailing during the period in which any portion first anniversary of the principal amount date of execution and delivery of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Parent or Acquisition Sub wishes to exercise the Top-Up Option, Parent or Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth forth: (i) the number of Top-Up Option Shares shares of Company Common Stock that Parent or Acquisition Sub intends to purchase pursuant to the Top-Up Option, ; (ii) the manner in which Parent or Acquisition Sub intends to pay the applicable purchase price exercise price; and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares shares of Company Common Stock by Parent or Acquisition Sub is to take place. The Company shall, as soon as practicable following receipt of such notice, notify Acquisition Sub of the number of shares of Company Common Stock then outstanding, the number of shares of Company Common Stock then outstanding on a fully-diluted basis and the number of Top-Up Shares. At the closing of the purchase of the Top-Up Option Sharessuch shares of Company Common Stock, Parent and or Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Optionsuch shares, and the Company shall cause to be issued to Parent or Acquisition Sub (as the case may be) a certificate representing such Top-Up Option Sharesshares. The parties hereto agree shall cooperate to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day ensure that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon is effected pursuant to an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated from registration under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 2 contracts
Sources: Merger Agreement (Applied Materials Inc /De), Merger Agreement (Applied Materials Inc /De)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an option (the “Top-Top Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.41.04, to purchase that number of authorized and unissued newly issued shares of Company Shares Common Stock (the “Top-Top Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock directly or indirectly owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares one (1) share more than ninety percent (90% %) of the shares of Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days Common Stock outstanding on a fully-diluted basis immediately after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Top Up Option Shares) Shares at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Top Up Option be exercisable (A) for a number of shares of Company Shares Common Stock in excess of the Company’s then authorized and unissued shares of Company Common Stock or (Bgiving effect to shares of Company Common Stock reserved for issuance under the Company Incentive Plans (as defined herein) as if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Sharessuch shares were outstanding).
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Merger Sub may exercise the Top-Top Up Option, in whole but not in part, at any one time after the Appointment Time consummation of the Offer and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. In the event that Merger Sub wishes to exercise the Top Up Option, it shall notify the Company in writing, and shall set forth in such notice: (i) the number of shares of Company Common Stock that will be owned by Parent and Merger Sub immediately preceding the purchase of the Top Up Option Shares, and (ii) the place and time for the closing of the purchase of the Top Up Option Shares by Merger Sub, which shall not be more than five (5) business days after delivery of such notice (the “Top Up Closing”). The Company shall, as soon as practicable following receipt of such notice, notify Merger Sub of the number of shares of Company Common Stock then outstanding, the number of shares of Company Common Stock outstanding on a fully-diluted basis and the number of Top Up Option Shares. At the Top Up Closing, Parent or Merger Sub shall pay the Company the aggregate purchase price for the Top Up Option Shares (calculated by multiplying the number of such Top Up Option Shares by the Offer Price) and the Company shall cause to be issued to Merger Sub a certificate representing the Top Up Option Shares. The aggregate purchase price payable for the Top-Top Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and Merger Sub by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder balance of such the aggregate purchase priceprice for the Top Up Option Shares. Any such promissory note shall bear interest at a the applicable federal rate per annum equal to as determined for U.S. federal income tax purposes, shall mature on the prime lending rate prevailing during the period in which any portion first (1st) anniversary of the principal amount date of execution and delivery of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty. In the event that this Agreement is terminated after the Top Up Option is exercised and prior to the Effective Time, all amounts then owing pursuant to the promissory note (including all interest) shall thereupon become immediately due and payable.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree shall cooperate to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day ensure that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Top Up Option Shares.
(d) Shares is accomplished consistent with all applicable Laws. Consistent therewith, Parent and Acquisition Merger Sub understand acknowledge that the shares of Company Shares which Acquisition Common Stock that Merger Sub may acquire upon exercise of the Top-Top Up Option will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Merger Sub represent and warrant to the Company that Acquisition Merger Sub is, or will be upon the purchase of the Top-Top Up Option Shares, Shares an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Merger Sub agrees that the Top-Top Up Option and the Top-Top Up Option Shares to be acquired upon exercise of the Top-Top Up Option are being and will be acquired by Acquisition Merger Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 2 contracts
Sources: Merger Agreement (King Pharmaceuticals Inc), Merger Agreement (Alpharma Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an irrevocable option (the “Top-Up Option”), exercisable only upon on the terms and conditions set forth in this Section 2.41.03, to purchase that number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer PricePrice paid in the Offer a number of newly issued shares of Company Common Stock (the “Top-Up Shares”) equal to (and not less than) the lowest number of shares of Company Common Stock that, when added to the number of shares of Company Common Stock directly or indirectly owned by Parent, U.S. Parent and Merger Sub at the time of exercise of the Top-Up Option, shall constitute one share more than 90% of the shares of Company Common Stock outstanding immediately after the issuance of the Top-Up Shares; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance for a number of shares of Company Shares pursuant theretoCommon Stock in excess of the number of shares of Company Common Stock authorized and unissued (and not reserved for issuance) at the time of exercise of the Top-Up Option. The Top-Up Option shall be exercisable only once, Acquisition Sub would at such time as Parent, U.S. Parent and Merger Sub, directly or indirectly, own more than 90at least 80% of the outstanding shares of Company Common Stock (determined on a fully diluted basis) (i) following the expiration of the Offer and any subsequent offering period and (ii) prior to the fifth business day after the applicable expiration date of the Offer or any subsequent offering period. The obligation of the Company to issue and deliver the Top-Up Shares then outstanding (assuming upon the issuance exercise of the Top-Up Option Shares); and provided further, is subject to the condition that in no event shall the Top-Up Option be exercisable (A) for a number provision of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law and no Judgment, injunction, order or any applicable Order decree shall prohibit the exercise of the Top-Up Option or the issuance and delivery of the Top-Up Option SharesShares in respect of such exercise.
(b) Provided The parties shall cooperate to ensure that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the issuance and delivery of the Top-Up Option Shares in respect thereofcomply with all applicable Law, Acquisition Sub may exercise including compliance with an applicable exemption from registration of the Top-Up Option, in whole but not in part, at any one time after Shares under the Appointment Time and prior to the earlier to occur Securities Act of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding1933, as published in The Wall Street Journalamended (including the rules and regulations promulgated thereunder, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) “Securities Act”). In the event Acquisition Merger Sub wishes to exercise the Top-Up Option, Acquisition Merger Sub shall deliver to give the Company a notice (the “Top-Up Notice”) setting forth three business days prior written notice, specifying (i) the number of shares of Company Common Stock directly or indirectly owned by Parent at the time of such notice and (ii) a place and a time for the closing of such purchase. The Company shall, as soon as practicable following receipt of such notice, deliver written notice to Merger Sub specifying, based on the information provided by Merger Sub in its notice, the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition the purchase price owed by Merger Sub shall cause to be delivered to the Company the consideration required to therefor shall be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant paid to the Company that Acquisition (i) in cash, by wire transfer or cashier’s check or (ii) by issuance by Merger Sub isto the Company of a promissory note bearing interest at 5% per annum, or will be upon which shall have full recourse to Parent and U.S. Parent and shall mature on the purchase first anniversary of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 date of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option execution and the Top-Up Option Shares to be acquired upon exercise delivery of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Lawssuch promissory note.
Appears in 2 contracts
Sources: Merger Agreement (Cgi Group Inc), Merger Agreement (Stanley, Inc.)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub the Purchaser an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and subject to the conditions set forth in this Section 2.4herein, to purchase that at a price per share equal to the Offer Price an aggregate number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added up to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities then available authorized and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option unissued Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant theretoto the Top-Up Option, Acquisition Sub the Short Form Threshold would own more than 90% of the Company Shares then outstanding be reached (assuming the issuance of the Top-Up Option Shares); . Upon Parent’s request, the Company shall cause its transfer agent to certify in writing to Parent the number of Shares issued and provided further, that in no event shall outstanding as of immediately prior to the exercise of the Top-Up Option be exercisable (A) for a number of Company Shares in excess and after giving effect to the issuance of the Company’s then authorized Top-Up Option Shares. Purchaser may pay the Company the aggregate price required to be paid for the Top-Up Option Shares by delivery of an unsecured, non-negotiable and unissued shares non-transferable promissory note, bearing simple interest at 3% per annum, with principal and interest due one year after the purchase of Company Common Stock the Top-Up Option Shares, prepayable in whole or in part without premium or penalty (Ba “Promissory Note”).
(b) if any Provided that no applicable Law or any applicable Order law shall prohibit the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares.
(b) Provided that no applicable Law Shares pursuant thereto or Order shall prohibit otherwise make such exercise or issuance illegal, the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub Purchaser may exercise the Top-Up OptionOption on one or more occasions, in whole but not or in part, at any one time only after the Appointment Acceptance Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyTime.
(c) In Each time that the event Acquisition Sub Purchaser wishes to exercise the Top-Up Option, Acquisition Sub the Purchaser shall deliver send to the Company a written notice (a “Top-Up Exercise Notice”) specifying the denominations of the certificate or certificates evidencing the Top-Up Option Shares that the Purchaser wishes to receive, and the place, time and date for the closing of the purchase and sale pursuant to the Top-Up Option (the “Top-Up Closing”). The Company shall, promptly after receipt of the Top-Up Exercise Notice”) setting forth (i) , deliver a written notice to the Purchaser confirming the number of Top-Up Option Shares that Acquisition Sub intends to and the aggregate purchase pursuant to price therefor (the “Top-Up Notice Receipt”). At the Top-Up OptionClosing, (ii) the manner in which Acquisition Sub intends to Purchaser shall pay the applicable purchase Company the aggregate price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is required to take place. At the closing of the purchase of be paid for the Top-Up Option Shares, Parent and Acquisition Sub shall cause including without limitation at the Purchaser’s option by delivery of a Promissory Note in an aggregate principal amount equal to be delivered to the Company the consideration required to be delivered that specified in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionNotice Receipt, and the Company shall cause to be issued and delivered to Acquisition Sub the Purchaser a certificate or certificates representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise or, at the Purchaser’s request or otherwise if the Company does not then have certificated Shares, the applicable number of the TopBook-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to Entry Shares. Such certificates or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing TopBook-Up Option Entry Shares shall may include any legends that are required by applicable securities LawsLaw.
Appears in 2 contracts
Sources: Merger Agreement (Lilly Eli & Co), Merger Agreement (Imclone Systems Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an irrevocable option (the “Top-Up Option”), exercisable only upon on the terms and conditions set forth in this Section 2.41.4, to purchase purchase, at a price per Share equal to the Offer Price paid in the Offer, that number of authorized and unissued Company newly issued Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the aggregate number of Company Shares beneficially owned by Parent and/or Acquisition Parent, Merger Sub and any of their respective Subsidiaries or Affiliates at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase exercise of the Top-Up Option Shares upon the vestingOption, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless shall constitute one Share more than 80% of the conversion or exercise price or other terms and conditions thereof Fully Diluted Shares then outstanding (assuming after giving effect to the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price); provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a to the extent the number of Company Shares in excess issuable upon exercise of the Top-Up Option would exceed the Company’s then authorized and unissued shares Shares and Shares held in the treasury at the time of exercise of the Top-Up Option (assuming all Fully Diluted Shares were issued and outstanding). Upon Parent’s request, the Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit cause its transfer agent to certify in writing to Parent the number of Shares issued and outstanding as of immediately prior to the exercise of the Top-Up Option or and after giving effect to the delivery issuance of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the . The Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Optionshall be exercisable only once, in whole but not in part, at any one time after following the Appointment Time Offer Closing and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(cb) In the event Acquisition Merger Sub wishes to exercise the Top-Up Option, Acquisition Merger Sub shall deliver to give the Company a notice (the “Top-Up Notice”) setting forth written notice, specifying (i) the aggregate number of Shares owned by Parent, Merger Sub and any of their respective Subsidiaries or Affiliates at the time of such notice (after giving effect to the Offer Closing) and (ii) a place and a time for the closing of such purchase. The Company shall, promptly following receipt of such notice, deliver written notice to Merger Sub specifying, based on the information provided by Merger Sub in its notice, the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares be purchased by Acquisition Sub is to take placeMerger Sub. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition the aggregate purchase price owed by Merger Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased shall be paid to the Company at Parent’s election, either (i) entirely in cash, by wire transfer of same-day funds or (ii) by issuing to the Company an unsecured, non-negotiable, non-transferable promissory note having a principal amount equal to the aggregate purchase price pursuant to the Top-Up Option, and . Such promissory note (i) shall bear interest at the Company shall cause to be issued to Acquisition Sub a certificate representing such Topapplicable short-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received term federal rate per annum for U.S. income tax purposes (as periodically set by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.the
Appears in 2 contracts
Sources: Merger Agreement (Pep Boys Manny Moe & Jack), Merger Agreement (Icahn Enterprises Holdings L.P.)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Purchaser an irrevocable option (the “Top-Up Option”), ) exercisable only upon in accordance with the terms and conditions set forth in this Section 2.42.3, to purchase, at a purchase price per share equal to the Per Share Amount, that number of authorized and unissued newly issued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially collectively owned by Parent and/or Acquisition Sub or Purchaser at the time of such exercise, shall constitute 100 exercise (excluding Company Shares more than 90% tendered in the Offer pursuant to guaranteed delivery instructions as to which delivery has not been completed at the time of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase exercise of the Top-Up Option Option), shall constitute one Company Share more than ninety percent (90%) of the sum of (i) the then outstanding Company Shares plus (ii) a number equal to the number of Company Shares issuable upon the vesting, conversion of any convertible securities or upon the exercise of all outstanding any options, warrantswarrants or rights including Company RSUs, Company SARs, the Company Stock Options and Company Shares to be issued pursuant to the ESPP, in each case, which are convertible or exchangeable securities exercisable prior to the date that is ten (10) business days after such exercise and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to . Notwithstanding the Offer Price; providedforegoing provisions of this Section 2.3(a), however, that the Top-Up Option shall not be exercisable unless for Company Shares in excess of the number of Company Shares authorized and unissued or held in the treasury of the Company.
(b) The Top-Up Option shall not be exercisable unless, immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub after accounting for the limitations set forth herein, Parent and Purchaser would own hold one Company Share more than 90% of the Company Shares then outstanding (assuming the issuance of the Company Shares. The Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but and not in part, ) at any one time after the Appointment Acceptance Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement Agreement.
(c) In the event Purchaser desires to exercise the Top-Up Option, Purchaser shall so notify the Company in accordance with its terms. The aggregate writing (the “Top-Up Exercise Notice”), and shall set forth in such notice (i) the number of Company Shares that will be owned by Parent and Purchaser immediately preceding the purchase price payable for of the Top-Up Option Shares, (ii) the number of Company Shares being purchased by Acquisition Sub that Purchaser intends to purchase pursuant to the Top-Up Option shall be determined by multiplying and (iii) the number place and time for the closing of such the purchase of the Top-Up Option Shares by (the Offer Price“Top-Up Closing”). The Company shall, without interestas soon as practicable following receipt of such notice, deliver notice to Parent and Purchaser in writing confirming the number of Top-Up Option Shares and the aggregate purchase price therefor. At the Top-Up Closing, Purchaser shall (and Parent shall cause Purchaser to) pay the Company the aggregate price required to be paid for the Top-Up Option Shares. Such purchase aggregate price may be paid by Acquisition SubPurchaser, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub Purchaser having a principal amount equal to the remainder of such aggregate purchase priceprice (which promissory note either shall be a demand note or shall have a stated maturity date of not more than one (1) year from the date of issuance). Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in by The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes . The Company shall cause to exercise the Top-Up Option, Acquisition Sub shall deliver be issued to the Company Purchaser a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of certificate representing the Top-Up Option Shares, Parent which certificate may include any legends required by applicable securities laws (or, if the Company does not then issue Company Shares in certificated form, the applicable number of Company Shares in non-certificated book-entry form). Upon Purchaser’s request, the Company shall use its reasonable best efforts to cause its transfer agent to certify in writing to Purchaser the number of Company Shares issued and Acquisition Sub shall cause to be delivered outstanding as of immediately prior to the Company the consideration required to be delivered in exchange for exercise of the Top-Up Option Shares being purchased pursuant and after giving effect to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) The parties shall cooperate to ensure that the issuance of the Top-Up Option Shares is accomplished consistent with all applicable legal requirements, including all federal securities laws but excluding the rules and regulations of Nasdaq. To that end, Parent and Acquisition Sub Purchaser understand that the Company Shares which Acquisition Sub Purchaser may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offeringSection 4(2) of the Securities Act and/or Rule 506 promulgated thereunder. Parent and Acquisition Sub Purchaser represent and warrant to the Company that Acquisition Sub Purchaser is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub Purchaser agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub Purchaser for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any .
(e) Upon the delivery by Purchaser to the Company of the Top-Up Exercise Notice and the tender of the consideration described in Section 2.3(c), Purchaser shall, to the extent permitted by applicable Law, be deemed to be the holder of record of the Top-Up Option Shares issuable upon that exercise, notwithstanding that certificates evidencing representing those Top-Up Option Shares shall include not then be actually delivered to Purchaser.
(f) The Company agrees that it shall reserve (and maintain free from preemptive and other similar rights) sufficient authorized but unissued Company Shares so that the Top-Up Option may be exercised without additional authorization of Company Shares (after giving effect to Company Shares issued upon the exercise of Company Options, Company SARs and Company RSUs or purchases under the ESPP prior to the Acceptance Time.
(g) Any dilutive impact on the value of the Company Shares as a result of the issuance of the Top-Up Option Shares will not be taken into account in any legends required determination of the “fair market value” of any Dissenting Company Shares pursuant to Chapter 11 of the CGCL as contemplated by applicable securities LawsSection 3.8(a).
(h) The number of Company Shares issuable pursuant to the Top-Up Option and the Per Share Amount shall be adjusted to the extent appropriate so as to restore Purchaser to its rights hereunder with respect to the Top-Up Option in the event of any stock split, division or subdivision of shares, stock dividend, reverse stock split, consolidation of shares, reclassification, recapitalization or other similar transaction with respect to Company Shares occurring or having a record date on or after the date of this Agreement and prior to the date of exercise of the Top-Up Option; provided, however, that nothing in this Section 2.3(g) shall be construed as permitting the Company to take any action or enter into any transaction otherwise prohibited by this Agreement.
Appears in 2 contracts
Sources: Merger Agreement (Actel Corp), Merger Agreement (Microsemi Corp)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub an the Purchaser a non-transferable, non-assignable option (the “Top-Up Option”), exercisable from and after the Acceptance Time only upon the terms and subject to the conditions set forth in this Section 2.4herein, to purchase that from the Company, at a cash price per share equal to the value of the Offer Price (with the value of the Per Share Exchange Ratio calculated as the dollar amount determined by multiplying such ratio by the closing price of a share of Parent Common Stock on NASDAQ on the last trading day prior to the exercise of the Top-Up Option), an aggregate number of authorized and unissued newly-issued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or Acquisition Sub the Purchaser at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares one share more than 90% of the number of shares of Company Shares outstanding, assuming Common Stock outstanding immediately after the issuance of all shares of Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of Common Stock subject to the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer PriceOption; provided, however, that the Top-Up Option shall not be exercisable unless unless, immediately after such exercise and the issuance of shares of Company Shares Common Stock pursuant thereto, Acquisition Sub the Short Form Threshold would own more than 90% of the Company Shares then outstanding be reached (assuming the issuance of the Top-Up Option Shares)) and all of the conditions to the Merger would be satisfied or waived, as applicable; and provided provided, further, that in no event shall the Top-Up Option be exercisable (A) for a number of shares of Company Shares Common Stock in excess of the Company’s then total authorized and unissued shares Shares. Upon the Purchaser’s request, the Company shall cause its transfer agent to certify in writing to the Purchaser the number of Shares issued and outstanding as of immediately prior to the exercise of the Top-Up Option and after giving effect to the issuance of the Top-Up Option Shares. The Purchaser shall pay the Company Common Stock the aggregate par value of the Top-Up Option Shares in cash and the balance of the aggregate price required to be paid for the Top-Up Option Shares shall be paid by delivery to the Company of a non-negotiable and non-transferable promissory note (the “Promissory Note”). The Promissory Note shall be full recourse against the Purchaser, shall be guaranteed by Parent, shall bear interest at the rate of interest per annum equal to the prime lending rate prevailing from time to time during such period as published in The Wall Street Journal, shall mature on the first anniversary of the date of execution and delivery of such Promissory Note and may be prepaid without premium or penalty. Parent, the Purchaser and the Company acknowledge and agree that, in any appraisal proceeding related to this Agreement, the fair value of the Shares subject to the appraisal proceeding shall be determined in accordance with the DGCL without regard to the exercise by Parent or the Purchaser of the Top-Up Option, any Shares issued upon exercise of the Top-Up Option or the Promissory Note.
(Bb) if any Provided that no applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares in respect thereofpursuant thereto, Acquisition Sub or otherwise make such exercise or issuance illegal, the Purchaser may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Acceptance Time and prior to the earlier to occur of (i) the Effective Time and (ii) the valid termination of this Agreement Agreement. If as of an Expiration Date (x) all the conditions and requirements set forth in Annex I have been satisfied or waived, as applicable, and (y) there shall have been validly tendered and not validly withdrawn a sufficient number of Shares which, when added to the number of shares (the “Requisite Top-Up Shares”) of Company Common Stock which could be owned by the Purchaser through exercise of the Top-Up Option, constitute one share more than 90% of the number of shares of Company Common Stock outstanding immediately after the issuance of all shares of Company Common Stock subject to the Top-Up Option, the Purchaser shall exercise the Top-Up Option with respect to the Requisite Top-Up Shares at such time in accordance with its terms. The the provisions of this Section 1.7.
(c) To exercise the Top-Up Option, the Purchaser shall send to the Company a written notice (a “Top-Up Exercise Notice”) specifying the aggregate purchase price payable for number of Shares as to which the Top-Up Option is being exercised, the denominations of the certificate or certificates evidencing the Top-Up Option Shares being purchased by Acquisition Sub that the Purchaser wishes to receive, and the place, time and date for the closing of the purchase and sale pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Closing”). The Company shall, promptly after receipt of the Top-Up Exercise Notice”) setting forth (i) , deliver a written notice to the Purchaser confirming the number of Top-Up Option Shares that Acquisition Sub intends to and the aggregate purchase pursuant to price therefor (the “Top-Up Notice Receipt”). At the Top-Up OptionClosing, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub Purchaser shall cause to be delivered deliver to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant in an aggregate amount equal to the purchase price specified in the Top-Up OptionNotice Receipt, and the Company shall cause to be issued and delivered to Acquisition Sub the Purchaser a certificate or certificates representing such the Top-Up Option Shares. Such certificates shall include any legends that are required by applicable Law. The parties hereto agree to use their reasonable best efforts to cause Purchaser acknowledges that the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will shall not be registered under the Securities Act Act, and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub The Purchaser agrees that the Top-Up Option Option, and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will shall be acquired by Acquisition Sub the Purchaser for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 2 contracts
Sources: Merger Agreement (PLX Technology Inc), Merger Agreement (Integrated Device Technology Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub SUTIOC an assignable and irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase that from the Company the number of authorized newly-issued shares of Company common stock and unissued Company Shares (the “Top-Up Option Shares”) preferred stock equal to the lowest lesser of: (i) the number of shares of Company Shares common stock and preferred stock that, when added to the number of shares of Company Shares beneficially common stock and preferred stock owned by Parent and/or Acquisition Sub SUTIOC at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares more than 90constitutes 95% of the number of shares of Company Shares outstanding, assuming common stock and preferred stock that would be outstanding immediately after the issuance of all shares of Company Shares common stock and preferred stock subject to the Top-Up Option or (ii) the aggregate number of shares of Company common stock and preferred stock that the Company is authorized to issue under its articles of incorporation but that are issuable within ten Business Days after not issued and outstanding (and are not subscribed for or otherwise committed to be issued) at the scheduled closing time of exercise of the purchase Top-Up Option.
(b) In the event that the number of shares the Company is authorized to issue under its articles of incorporation would not constitute 95% of the total outstanding immediately after issuance, the Company shall take the necessary steps to increase the authorized shares in order to issue the full amount of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless equal to 95% of the conversion or exercise price or other terms and conditions thereof outstanding immediately after issuance.
(assuming the issuance of the c) The Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not may be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Optionexercised by SUTIOC, in whole but not or in part, at any one time and up to two years after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termsClosing. The aggregate purchase price payable for the Top-Up Option Shares shares of Company common stock and preferred stock being purchased by Acquisition Sub SUTIOC pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interestas set forth in Section 1.2(d) herein. Such purchase price may be paid by Acquisition SubSUTIOC, at its election, either (A) entirely in cash or (B) in cash in an amount equal to shares of common stock, valued at no less than the aggregate par value of closing share price on the purchased day immediately preceding the day Top-Up Option Shares is exercised by SUTIOC, of an entity trading on the over the counter bulletin board or a recognized exchange and by executing and delivering which entity is subject to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion reporting requirements of the principal amount Securities Exchange Act of 1934 and is current in all such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, reports which shares are owned and may be prepaid without premium or penaltyheld by SUTIOC.
(cd) The aggregate purchase price SUTIOC will be required to pay to Company when exercising the Top-Up Option will be calculated as 2.5 times the then trailing ninety days annualized revenue, plus current and fixed assets and less any debt, accounts payable and other liabilities exceeding one million dollars ($1,000,000) with the minimum aggregate purchase price being two million dollars ($2,000,000) plus current and fixed assets and less debt, accounts payable and other liabilities. In the event that the Company’s debt, accounts payable and other liabilities is below $1,000,000, then in such a case, the aggregate purchase price shall be calculated as 3 times the then trailing ninety days annualized revenue, plus current and fixed assets and less debt, accounts payable and other liabilities.
(e) In the event Acquisition Sub SUTIOC wishes to exercise the Top-Up Option, Acquisition Sub SUTIOC shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares shares of Company common stock and preferred stock that Acquisition Sub SUTIOC intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub SUTIOC intends to pay the applicable purchase exercise price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares shares of Company common stock by Acquisition Sub SUTIOC is to take place. At the closing of the purchase of the Top-Up Option Sharessuch shares of Company common stock and preferred stock, Parent and Acquisition Sub SUTIOC shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Optionsuch shares, and the Company shall cause to be issued to Acquisition Sub SUTIOC a certificate representing such Top-Up Option Sharesshares. The parties hereto agree to use their reasonable best efforts to cause the closing obligation of the purchase of Company to issue such Top-Up Option Shares shares will be subject to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance compliance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Sharesall applicable regulatory requirements.
(df) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates Certificates evidencing Top-Up Option Shares delivered hereunder shall include any legends required by applicable securities Lawsbear a legend in substantially the following form: THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD OR TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.
Appears in 2 contracts
Sources: Acquisition Agreement (Us Wireless Online Inc), Acquisition Agreement (Sutioc Enterprises, Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub the Purchaser an option (the “Top-Up Option”)option, exercisable from and after the Acceptance Time only upon the terms and subject to the conditions set forth in this Section 2.4herein, to purchase that from the Company, at a price per share equal to the Offer Price, an aggregate number of authorized and unissued newly-issued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or Acquisition Sub the Purchaser at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares one share more than 90% of the number of shares of Company Shares outstanding, assuming Common Stock outstanding immediately after the issuance of all shares of Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of Common Stock subject to the Top-Up Option Shares upon (the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the “Top-Up Option Shares) at a price per share equal to the Offer PriceOption”); provided, however, that the Top-Up Option shall not be exercisable unless unless, immediately after such exercise and the issuance of shares of Company Shares Common Stock pursuant thereto, Acquisition Sub the Short Form Threshold would own more than 90% of the Company Shares then outstanding be reached (assuming the issuance of the Top-Up Option Shares); and provided provided, further, that in no event shall the Top-Up Option be exercisable (A) for a number of shares of Company Shares Common Stock in excess of the Company’s then total authorized and unissued shares Shares. Upon the Purchaser’s request, the Company shall cause its transfer agent to certify in writing to the Purchaser the number of Shares issued and outstanding as of immediately prior to the exercise of the Top-Up Option and after giving effect to the issuance of the Top-Up Option Shares. The Purchaser shall pay the Company Common Stock the aggregate par value of the Top-Up Option Shares in cash and the balance of the aggregate price required to be paid for the Top-Up Option Shares by delivery of a non-negotiable and non-transferable promissory note (the “Promissory Note”). The Promissory Note shall be full recourse against the Purchaser, shall be guaranteed by Parent, shall bear interest at the rate of interest per annum equal to the prime lending rate prevailing from time to time during such period as published in The Wall Street Journal, shall mature on the first anniversary of the date of execution and delivery of such Promissory Note and may be prepaid without premium or penalty. Parent, the Purchaser and the Company acknowledge and agree that, in any appraisal proceeding related to this Agreement, the fair value of the Shares subject to the appraisal proceeding shall be determined in accordance with the DGCL without regard to the exercise by Parent or the Purchaser of the Top-Up Option, any Shares issued upon exercise of the Top-Up Option or the Promissory Note.
(Bb) if any Provided that no applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares in respect thereofpursuant thereto, Acquisition Sub or otherwise make such exercise or issuance illegal, the Purchaser may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Acceptance Time and prior to the earlier to occur of (i) the Effective Time and (ii) the valid termination of this Agreement in accordance with its terms. The aggregate purchase price payable (it being agreed and understood that for all purposes of this Agreement and Annex I, any listing requirement of any national securities exchange shall not be deemed to prohibit or make illegal the exercise of the Top-Up Option or the issuance of the Top-Up Shares).
(c) To exercise the Top-Up Option, the Purchaser shall send to the Company a written notice (a “Top-Up Exercise Notice”) specifying the denominations of the certificate or certificates evidencing the Top-Up Option Shares being purchased by Acquisition Sub that the Purchaser wishes to receive, and the place, time and date for the closing of the purchase and sale pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Closing”). The Company shall, promptly after receipt of the Top-Up Exercise Notice”) setting forth (i) , deliver a written notice to the Purchaser confirming the number of Top-Up Option Shares that Acquisition Sub intends to and the aggregate purchase pursuant to price therefor (the “Top-Up Notice Receipt”). At the Top-Up OptionClosing, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub Purchaser shall cause to be delivered deliver to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant in an aggregate amount equal to the purchase price specified in the Top-Up OptionNotice Receipt, and the Company shall cause to be issued and delivered to Acquisition Sub the Purchaser a certificate or certificates representing such the Top-Up Option Shares. Such certificates shall include any legends that are required by applicable Law. The parties hereto agree to use their reasonable best efforts to cause Purchaser acknowledges that the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will shall not be registered under the Securities Act Act, and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub The Purchaser agrees that the Top-Up Option Option, and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will shall be acquired by Acquisition Sub the Purchaser for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 2 contracts
Sources: Merger Agreement (Interclick, Inc.), Merger Agreement (Yahoo Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub the Purchaser an option (the “Top-Up Option”), exercisable only upon the terms and subject to the conditions set forth in this Section 2.4herein, to purchase that from the Company at a price per share equal to the Offer Price an aggregate number of authorized and unissued newly issued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or Acquisition Sub and the Purchaser at the time of such exercise, shall constitute 100 Company Shares one share more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days then outstanding (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price); provided, however, that the Top-Up Option shall not be exercisable unless unless, (i) the Minimum Condition shall have been satisfied and (ii) immediately after such exercise and the issuance of shares of Company Shares Common Stock pursuant thereto, Acquisition Sub the Purchaser reasonably believes that the Short Form Threshold would own more than 90% of the Company Shares then outstanding be reached (assuming the issuance of the Top-Up Option Shares); and provided provided, further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then total authorized and unissued shares Shares. Upon Parent’s request, the Company shall use commercially reasonable efforts to cause its transfer agent to certify in writing to Parent the number of Shares issued and outstanding as of immediately prior to the exercise of the Top-Up Option and after giving effect to the issuance of the Top-Up Option Shares. The Purchaser shall pay the Company Common Stock the aggregate par value of the Top-Up Option Shares in cash and the balance of the aggregate price required to be paid for the Top-Up Option Shares by delivery of a promissory note (the “Promissory Note”). The Promissory Note shall be full recourse against Parent and Purchaser, be due one year from the date the Top-Up Option Shares are issued and bear interest at a per annum rate equal to the prime lending rate prevailing from time to time during such period as published in The Wall Street Journal and may be prepaid at any time without premium or (B) if penalty. Parent, the Purchaser and the Company acknowledge and agree that, in any applicable Law appraisal proceeding related to this Agreement, the fair value of the Shares subject to the appraisal proceeding shall be determined in accordance with the DGCL without regard to the exercise by Parent or the Purchaser of the Top-Up Option, any applicable Order shall prohibit the Shares issued upon exercise of the Top-Up Option or the delivery of the Top-Up Option SharesPromissory Note.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub The Purchaser may exercise the Top-Up OptionOption on one or more occasions, in whole but not or in part, at any one time after the Appointment Acceptance Time and prior to the earlier to occur of (i) the Effective Time and (ii) the valid termination of this Agreement in accordance with its termsAgreement. The aggregate purchase price payable parties acknowledge and agree that for all purposes of this Agreement and Annex I, any listing rule or requirement of any national securities exchange shall not be deemed to prohibit or make illegal the exercise of the Top-Up Option Shares being purchased by Acquisition Sub pursuant to or the issuance of the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyShares.
(c) In Each time that the event Acquisition Sub Purchaser wishes to exercise the Top-Up Option, Acquisition Sub the Purchaser shall deliver send to the Company a written notice (a “Top-Up Exercise Notice”) specifying the denominations of the certificate or certificates evidencing the Top-Up Option Shares that the Purchaser wishes to receive, and the place, time and date for the closing of the purchase and sale pursuant to the Top-Up Option (the “Top-Up Closing”). The Company shall, promptly after receipt of the Top-Up Exercise Notice”) setting forth (i) , deliver a written notice to the Purchaser confirming the number of Top-Up Option Shares that Acquisition Sub intends to and the aggregate purchase pursuant to price therefor (the “Top-Up Notice Receipt”). At the Top-Up OptionClosing, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub Purchaser shall cause to be delivered deliver to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant in an aggregate amount equal to the purchase price specified in the Top-Up OptionNotice Receipt, and the Company shall cause to be issued and delivered to Acquisition Sub the Purchaser a certificate or certificates representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause Such certificates may include any legends that are required by applicable Law. Parent and the closing of Purchaser acknowledge that the purchase of such Top-Up Option Shares to occur on which Parent or the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub Purchaser may acquire upon exercise of the Top-Up Option will shall not be registered under the Securities Act Act, and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees Purchaser agree that the Top-Up Option Option, and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option Option, if any, are being and will shall be acquired by Acquisition Sub the Purchaser for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 2 contracts
Sources: Merger Agreement (Complete Genomics Inc), Merger Agreement (Complete Genomics Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Parent and Acquisition Sub an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and subject to the conditions set forth in this Section 2.4Agreement, to purchase that from the Company an aggregate number of authorized and unissued newly issued shares of Company Shares (the “Top-Up Option Shares”) Common Stock equal to the lowest lesser of (i) the number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or or Acquisition Sub or any other Subsidiaries of Parent at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase exercise of the Top-Up Option Shares upon Option, constitutes at least one (1) share of Company Common Stock more than ninety percent (90%) of the vesting, conversion or exercise Adjusted Outstanding Share Number immediately after the issuance of all shares of Company Common Stock subject to the Top-Up Option, or (ii) the aggregate number of shares of Company Common Stock that the Company is authorized to issue under its articles of incorporation but that are not issued and outstanding options, warrants, convertible (and are not reserved or exchangeable securities and similar rights, regardless subscribed for or otherwise committed to be issued) at the time of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal Option. The obligation of the Company to the Offer Price; provided, however, that issue and deliver shares pursuant to the Top-Up Option shall not be exercisable unless immediately after such exercise and is subject only to the issuance condition that no legal restraint (other than any listing requirement of Company Shares pursuant thereto, Acquisition Sub would own more than 90% any securities exchange) that has the effect of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit preventing the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the issuance and delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may of such exercise the shall be in effect.
(b) The Top-Up OptionOption may be exercised by Parent or Acquisition Sub, in whole but not or in part, at any one time at or within five (5) Business Days after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termsAcceptance Time. The aggregate purchase price payable for the Top-Up Option Shares shares of Company Common Stock being purchased by Parent or Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares shares by an amount equal to the Offer Price, without interestPer Share Cash Election Consideration. Such purchase price may be paid by Parent or Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued note, secured to the extent required by the Acquisition Sub California Legal Requirements, having a principal amount equal to the remainder of such purchase price, or by any combination of the foregoing. Any such promissory note shall bear interest at a the rate of 3% per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstandingannum, as published in The Wall Street Journal, calculated on a daily basis shall mature on the outstanding principal amount first anniversary of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, execution thereof and may be prepaid without premium or penalty.
(c) In the event Parent or Acquisition Sub wishes to exercise the Top-Up Option, Parent or Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares shares of Company Common Stock that Parent or Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Parent or Acquisition Sub intends to pay the applicable purchase exercise price and (iii) the place place, date and time at which the closing of the purchase of such Top-Up Option Shares shares of Company Common Stock by Parent or Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Sharessuch shares of Company Common Stock, Parent and or Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Optionsuch shares, and the Company shall cause to be issued to Parent or Acquisition Sub (as the case may be) a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by shares or, at Parent or Acquisition Sub’s request or otherwise if the Company pursuant to Section 11.2does not then have certificated shares, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 applicable number of the DGCL and as contemplated uncertificated shares represented by Section 8.3(c) as close in time as possible to book-entry (including, to the extent possible, on the same day as) the issuance of the Top“Book-Up Option Entry Shares”).
(d) Parent and Acquisition Sub understand acknowledge that the Company Top-Up Option Shares which Acquisition that Merger Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act Act, and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Sharesshares, an “accredited investorAccredited Investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof within the meaning in violation of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 2 contracts
Sources: Merger Agreement (Sonic Solutions/Ca/), Agreement and Plan of Merger and Reorganization (Rovi Corp)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an option (the “Top-Top Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.41.4, to purchase that number of authorized and unissued shares of Company Shares Common Stock (the “Top-Top Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of Company Shares beneficially directly or indirectly owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares one share more than 90% of the Company Fully Diluted Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Top Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Top Up Option be exercisable (A) for a number of shares of Company Shares Common Stock in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if including as authorized and unissued shares of Company Common Stock, for purposes of this Section 1.4, any applicable Law or any applicable Order shall prohibit shares held in the exercise treasury of the Top-Up Option or the delivery of the Top-Up Option SharesCompany.)
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Merger Sub may exercise the Top-Top Up Option, in whole but not or in part, provided that upon exercise of the Top Up Option, Parent will directly or indirectly own one share more than 90% of the Company Shares (after giving effect to the issuance of the Top Up Option Shares), at any one time after the Appointment Time consummation of the Offer and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition that Merger Sub wishes to exercise the Top-Top Up Option, Acquisition Sub it shall deliver to notify the Company a notice (the “Top-Up Notice”) setting in writing, and shall set forth in such notice: (i) the number of Top-shares of Company Common Stock that will be owned by Parent and Merger Sub immediately preceding the purchase of the Top Up Option Shares, (ii) the number of Top Up Shares that Acquisition Merger Sub intends to purchase pursuant to the Top-Top Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At for the closing of the purchase of the Top-Top Up Option Shares by Merger Sub, which shall not be more than five Business Days after delivery of such notice (the “Top Up Closing”). At the Top Up Closing, Parent or Merger Sub shall pay the Company the aggregate purchase price for the Top Up Option Shares (calculated by multiplying the number of such Top Up Option Shares by the Offer Price) through the issuance of a promissory note, bearing simple interest at five percent per annum and due on the first anniversary of the Top Up Closing for the purchase price of such Top Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Merger Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Top Up Option Shares.
(dc) Parent and Acquisition Merger Sub understand acknowledge that the shares of Company Shares which Acquisition Common Stock that Merger Sub may acquire upon exercise of the Top-Top Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Merger Sub represent and warrant to the Company that Acquisition Merger Sub is, or will be upon the purchase of the Top-Top Up Option Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Merger Sub agrees that the Top-Top Up Option and the Top-Top Up Option Shares to be acquired upon exercise of the Top-Top Up Option are being and will be acquired by Acquisition Merger Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 2 contracts
Sources: Merger Agreement (United Industrial Corp /De/), Merger Agreement (Textron Inc)
Top-Up Option. (a) The Subject to Section 1.4(b) and Section 1.4(c), the Company hereby irrevocably grants to Acquisition Sub the Buyer an assignable and irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase that from the Company the number of authorized and unissued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest lesser of (i) the number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or Acquisition Sub at the time Buyer as of such exercise, shall constitute 100 Company Shares more than 90% of immediately prior to the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase exercise of the Top-Up Option Shares upon the vestingOption, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless constitutes one share more than ninety percent (90%) of the conversion or exercise price or other terms and conditions thereof (assuming the issuance number of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance shares of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares Common Stock then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall ) or (ii) the Top-Up Option be exercisable (A) for a aggregate of the number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock held as treasury shares by the Company and its Subsidiaries and the number of shares of Company Common Stock that the Company is authorized to issue under its certificate of incorporation but that are not issued and outstanding (and are not reserved for issuance pursuant to the exercise of Company Stock Options or (BCompany Warrants) if any applicable Law or any applicable Order shall prohibit as of immediately prior to the exercise of the Top-Up Option or the delivery of the Top-Up Option SharesOption.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the The Top-Up Option or may be exercised by the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up OptionBuyer, in whole but not or in part, at any one time at or after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termsAcceptance Time. The aggregate purchase price payable for the each Top-Up Option Shares being purchased by Acquisition Sub pursuant Share shall consist of an amount equal to the Offer Consideration (the “Initial Top-Up Option shall be determined by multiplying the number of such Payment”). The aggregate Initial Top-Up Option Shares by the Offer Price, without interest. Such purchase price Payment may be paid by Acquisition Subthe Buyer, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder such payment, or by any combination of cash and such purchase pricepromissory note. Any such promissory note shall bear interest at a the applicable federal rate per annum equal to the prime lending rate prevailing during the period in which any portion determined under Section 1274(d) of the principal amount Internal Revenue Code, shall mature on the first anniversary of the date of execution and delivery of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub that the Buyer wishes to exercise the Top-Up Option, Acquisition Sub it shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub it intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub it intends to pay the applicable purchase price Initial Top-Up Payment and (iii) the place and time at which the closing of the purchase of such the Top-Up Option Shares by Acquisition Sub the Buyer is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub the Buyer shall cause to be delivered to the Company the consideration required to be delivered in exchange for the such Top-Up Option Shares being purchased pursuant to the Top-Up OptionShares, and the Company shall cause to be issued to Acquisition Sub the Buyer a certificate representing such Top-Up Option Shares. shares.
(d) The parties hereto agree to use their reasonable best efforts to cause Buyer and Merger Sub acknowledge that the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub Buyer may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent The Buyer and Acquisition Merger Sub represent and warrant to the Company that Acquisition Sub the Buyer is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” Accredited Investor”, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub The Buyer agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub the Buyer for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof within the meaning in violation of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 2 contracts
Sources: Agreement and Plan of Merger (Skyworks Solutions, Inc.), Agreement and Plan of Merger (Advanced Analogic Technologies Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Parent and Purchaser an irrevocable option (the “Top-Up Option”)) to purchase, exercisable only upon for the terms and conditions set forth in this Section 2.4Offer Price, to purchase that a number of authorized and unissued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at and Purchaser immediately prior to the time of such exerciseexercise of the Top-Up Option, shall constitute 100 constitutes one share of Company Shares Common Stock more than 90% of the number of shares of Company Shares outstanding, assuming the issuance of all Company Shares Common Stock that are issuable within ten Business Days will be outstanding immediately after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares up to a maximum of 6,157,423 Shares) . The Top-Up Option may be exercised by Parent or Purchaser, in whole or in part, at a price per share equal to any time not more than five Business Days after the Offer PriceExpiration Time; provided, however, that the obligation of the Company to deliver Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit upon the exercise of the Top-Up Option or is subject to the delivery conditions that (A) the number of Shares owned by Parent and Purchaser immediately prior to the time of exercise of the Top-Up Option Shares.
constitutes no less than 87.5% of the number of shares of Company Common Stock outstanding immediately prior to the time of exercise of the Top-Up Option, (bB) Provided that the conversion of the Five Star Note shall have occurred, (C) no provision of any applicable Law and no judgment, injunction, order or Order decree of any Governmental Authority shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereofof such exercise, Acquisition Sub (D) the issuance of the Top-Up Option Shares will not cause the Company to have more shares of Company Common Stock issued or reserved for issuance than are authorized by the Company’s certificate of incorporation, and (E) Purchaser has accepted for payment all shares of Company Common Stock validly tendered in the Offer and not withdrawn. The parties shall cooperate to ensure that the issuance of the Top-Up Option Shares is accomplished consistent with all applicable legal requirements of all Governmental Authorities, including compliance with an applicable exemption from registration of the Top-Up Option Shares under the Securities Act.
(b) The Company shall, as soon as practicable following receipt of notice from Parent or Purchaser as the case may be of their exercise of the Top-Up Option, in whole but not in part, at any one time after notify Parent and Purchaser of the Appointment Time number of shares of Company Common Stock then outstanding and prior to the earlier to occur number of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termsTop-Up Option Shares. The aggregate closing of the purchase price payable for of the Top-Up Option Shares being purchased will take place at a time and on a date to be specified by Acquisition Sub pursuant Parent or Purchaser, which shall be no later than one Business Day after the exercise of the Top-Up Option, at the offices of ▇▇▇ ▇▇▇▇▇▇ LLP, ▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ between 41st and 42nd Streets, New York, New York 10036, unless another time, date or place is specified by Parent or Purchaser, Parent or Purchaser, as the case may be, shall pay the Company an amount equal to the Offer Price multiplied by the number of Top-Up Option Shares (the “Top-Up Consideration”), and the Company shall, at Parent’s or Purchaser’s request, cause to be issued to Parent or Purchaser a certificate representing the Top-Up Option shall be determined by multiplying Shares. To the number of such extent permissible under applicable Law, the Top-Up Option Shares by the Offer Price, without interest. Such purchase price Consideration may be paid by Acquisition Sub, at its election, either (A) entirely in cash Purchaser or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and Parent by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder balance of such the aggregate cash purchase priceprice for the Top-Up Shares. Any such promissory note shall bear interest at a the rate of interest per annum equal to the rate of interest publicly announced by JPMorgan Chase, in the City of New York, at the time such note is paid as such bank’s prime lending rate prevailing during rate, shall mature on the period in which any portion first anniversary of the principal amount date of execution and delivery of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 2 contracts
Sources: Tender Offer and Merger Agreement (National Patent Development Corp), Tender Offer and Merger Agreement (Five Star Products Inc)
Top-Up Option. (a) The Subject to Sections 1.6(b) and 1.6(c), the Company hereby irrevocably grants to Parent and Acquisition Sub an assignable and irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase that from the Company at a per share price equal to the Per Share Amount, the number of authorized and unissued newly-issued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or or Acquisition Sub at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares more than 90constitutes 91% of the number of Company Shares outstanding, assuming that would be outstanding immediately after the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of Stock subject to the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer PriceOption); provided, however, that (x) the Top-Up Option shall not be exercisable unless unless, immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub the Short Form Threshold (as defined in Section 5.4(b)) would own more than 90% of the Company Shares then outstanding be reached (assuming the issuance of the Top-Up Option Shares); and provided further, (y) that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then total authorized and unissued shares of Company Common Stock or Shares.
(Bb) if any applicable Law or any applicable Order Provided that no Legal Requirement shall prohibit the granting or exercise of the Top-Up Option or the delivery issuance of Company Shares pursuant to such exercise, the Top-Up Option Shares.
(b) Provided that no applicable Law may be exercised by Parent or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in partSub, at any one time at or after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termsAcceptance Time. The aggregate purchase price payable for the Top-Up Option Company Shares being purchased by Parent or Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares shares by the Offer Price, without interestPer Share Amount. Such purchase price may be paid by Parent or Acquisition Sub, at its election, either (A) entirely in cash or (B) by paying in cash in an amount equal to not less than the aggregate par value of the purchased Top-Up Option Shares such shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder balance of such purchase price. Any such promissory note shall bear simple interest at a the rate of 3% per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyannum.
(c) In the event Parent or Acquisition Sub wishes to exercise the Top-Up Option, Parent or Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Company Shares that Parent or Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Parent or Acquisition Sub intends to pay the applicable purchase exercise price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Company Shares by Parent or Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option such Company Shares, Parent and or Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Optionsuch shares, and the Company shall cause to be issued to Parent or Acquisition Sub (as the case may be) a certificate representing such Top-Up Option Sharesshares. The parties hereto agree to use their reasonable best efforts to cause the closing obligation of the purchase of Company to issue such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and shares will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant subject to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not compliance with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by all applicable securities Lawsregulatory requirements.
Appears in 2 contracts
Sources: Merger Agreement (Simtek Corp), Merger Agreement (Cypress Semiconductor Corp /De/)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Parent and Merger Sub an irrevocable option (the “Top-Up Option”) to purchase, at a price per share equal to the Per Share Amount (the “Per Common Share Price”), exercisable only upon the terms and conditions set forth in this Section 2.4, up to purchase that number of authorized and unissued Company Shares newly issued shares of Common Stock (the “Top-Up Option Shares”) equal not to the lowest number exceed 19.9% of Company Shares that, when added to the number of Company Shares beneficially owned shares of Common Stock outstanding on the Acceptance Date such that the sum of (A) the number of shares of Common Stock owned, directly or indirectly, by Parent and/or Acquisition or Merger Sub at the time of exercise of the Top-Up Option (excluding shares of Common Stock tendered in the Offer pursuant to guaranteed delivery procedures as to which delivery has not been completed as of the time of exercise of the Top-Up Option) and (B) such exercise, shall constitute 100 Company number of Top-Up Option Shares equals one share of Common Stock more than 90% of the Company Shares outstanding, assuming sum of (x) the total number of shares of Common Stock outstanding immediately after the issuance of the Top-Up Option Shares and (y) the total number of shares of Common Stock that are issuable within ten Business Days after the issuance of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof but not giving effect to any shares of Common Stock reserved for issuance pursuant to the Rights, to the extent the Rights Agreement is then in effect. The Top-Up Option may be exercised once during the 20 Business Day period following the Acceptance Date; provided, however, that the obligation of the Company to deliver Top-Up Option Shares upon the exercise of the Top-Up Option is subject to the conditions that (i) no provision of any applicable Law shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect of such exercise, (ii) the issuance of Top-Up Option Shares pursuant to the Top-Up Option would not require approval by the Company’s stockholders under applicable Law, (iii) immediately after the exercise of the Top-Up Option and issuance of the Top-Up Option Shares, the number of shares of Common Stock owned, directly or indirectly, by Parent or Merger Sub (excluding shares of Common Stock tendered in the Offer pursuant to guaranteed delivery procedures as to which delivery has not been completed as of the time of exercise of the Top-Up Option) constitutes one share of Common Stock more than 90% of the total outstanding shares of Common Stock and (iv) the number of Top-Up Option Shares issued pursuant to the Top-Up Option shall in no event exceed the number of authorized and unissued shares of Common Stock not otherwise reserved for issuance for outstanding Company Stock Options or other obligations of the Company. The Parties shall cooperate to ensure that the issuance of the Top-Up Option Shares is accomplished consistent with all applicable Laws, including compliance with an applicable exemption from registration of the Top-Up Option Shares under the Securities Act of 1933, as amended (the “Securities Act”). Parent and Merger Sub acknowledge that the shares of Common Stock that Merger Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Merger Sub each agree that the Top-Up Option and the Top-Up Option Shares are being and will be acquired by Merger Sub for its own account, for the purpose of investment and not with a view to, or for resale in connection with, any distribution thereof (within the meaning of the Securities Act).
(b) Upon the exercise of the Top-Up Option in accordance with Section 1.3(a), Merger Sub shall so notify the Company and shall set forth in such notice (i) the number of shares of Common Stock expected to be owned, directly or indirectly, by Parent or Merger Sub immediately preceding the purchase of the Top-Up Option Shares and (ii) a place and time selected by Merger Sub for the closing of the purchase of the Top-Up Option Shares with the time for the closing being not more than five Business Days after the exercise of the Top-Up Option. The Company shall, as soon as practicable following receipt of such notice, notify Merger Sub of the sum of (1) the number of shares of Common Stock then outstanding and (2) the total number of shares of Common Stock that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Merger Sub shall cause to be delivered to pay the Company the consideration required to be delivered in exchange aggregate purchase price payable for the Top-Up Option Shares being purchased pursuant to the Top-Up Optionthis Section 1.3, and the Company shall cause to be issued to Acquisition Merger Sub a certificate representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause aggregate purchase price payable for the closing of the purchase of such Top-Up Option Shares may be paid either (i) entirely in cash or (ii) at the election of Merger Sub or Parent, by paying in cash an amount equal to occur on not less than the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance aggregate par value of the Top-Up Option Shares.
(d) Parent Shares and Acquisition by Merger Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act executing and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant delivering to the Company that Acquisition Sub is, or will be upon an unsecured promissory note having a principal amount equal to the balance of the aggregate purchase of price for the Top-Up Option Shares. Any such promissory note shall bear interest at the rate of interest of 5.0% per annum and shall mature on the first anniversary of the date of execution and delivery of such promissory note and may be prepaid at any time and from time to time, an “accredited investor,” as defined in Rule 501 whole or in part, without premium or penalty.
(c) In the event of Regulation D promulgated any change in the number of shares of outstanding Common Stock by reason of any stock dividend, stock split, recapitalization, combination, exchange of shares, merger, consolidation, reorganization or the like or any other change in the corporate or capital structure of the Company that would have the effect of diluting Merger Sub’s rights under the Securities Act. Acquisition Sub agrees that the Top-Up Option and Option, the number of Top-Up Option Shares and the Per Common Share Price shall be adjusted appropriately so as to be acquired upon exercise of restore Merger Sub to its rights hereunder with respect to the Top-Up Option are being and will Option; provided, however, that nothing in this Section 1.3 shall be acquired construed as permitting the Company to take any action or enter into any transaction otherwise prohibited by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Lawsthis Agreement.
Appears in 2 contracts
Sources: Merger Agreement (Crane Co /De/), Merger Agreement (Merrimac Industries Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Merger Subsidiary an option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.42.04, to purchase that number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially directly or indirectly owned by Parent and/or Acquisition Sub or Merger Subsidiary at the time of such exercise, shall constitute 100 Company Shares one share more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all then outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-—Up Option be exercisable (A) for a number of Company Shares (i) that would require the Company to obtain shareholder approval under the Marketplace Rules of Nasdaq to issue the Top-Up Option Shares, or (ii) in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) giving effect to Company Shares reserved for issuance under the Company Stock Plans as if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Sharessuch shares were outstanding).
(b) Provided that no applicable Applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub Merger Subsidiary may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time consummation of the Offer and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand Subsidiary acknowledge that the Company Shares which Acquisition Sub Merger Subsidiary may acquire upon exercise of the Top-Up Option will not be registered under the Securities 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub Merger Subsidiary represent and warrant to the Company that Acquisition Sub Merger Subsidiary is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities 1933 Act. Acquisition Sub Merger Subsidiary agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub Merger Subsidiary for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities 1933 Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 2 contracts
Sources: Merger Agreement (Stellent Inc), Merger Agreement (Oracle Corp)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase from the Company up to that number of authorized and unissued Company Shares newly issued shares of Common Stock (the “Top-Up Option Shares”) equal to the lowest lesser of (i) the number of Company Shares shares of Common Stock that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition and Merger Sub at the time of such exercise, shall constitute 100 Company Shares one Share more than 90% the number of Shares necessary for Merger Sub to be merged into the Company pursuant to Section 253 of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days DGCL (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares), and (ii) the aggregate number of shares of Common Stock that the Company is authorized to issue under its certificate of incorporation but that are not issued and outstanding (and are not subscribed for or otherwise committed to be issued or reserved for issuance) at a price the time of exercise of the Top-Up Option, in each case, for consideration per share Top-Up Option Share equal to the Offer Price.
(b) The Top-Up Option shall be exercisable, in whole or in part, any time at or after the Acceptance Time (the “Purchase Date”); provided, however, that the Top-Up Option shall not only be exercisable unless immediately after such exercise and if the issuance of Company Shares pursuant theretoMinimum Tender Condition has been satisfied and, Acquisition Sub would own more than 90% of notwithstanding anything in this Agreement to the Company Shares then outstanding (assuming the issuance of contrary, the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) terminate concurrently with the termination of this Agreement in accordance with its terms.
(c) In the event that Merger Sub wishes to exercise the Top-Up Option, Merger Sub shall give the Company written notice specifying the number of shares of Common Stock that Merger Sub and its Affiliates own immediately preceding the exercise of the Top-Up Option, the manner in which Merger Sub intends to pay the applicable exercise price and the place and a time for the closing of such purchase. The aggregate Company shall, promptly following receipt of such notice, deliver written notice to Merger Sub specifying the number of Top-Up Option Shares to be issued and the consideration due in exchange therefor, calculated in accordance with Section 1.4(a). At the closing of the purchase price payable for the Top-Up Option Shares being purchased by Acquisition Shares, Merger Sub pursuant to shall pay the Top-Up Option shall be determined by multiplying Company the number of consideration due in exchange for such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (Ai) entirely in cash (by wire transfer or cashier’s check) or (Bii) in by delivery of cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares (by Acquisition Sub is wire transfer or cashier’s check) plus a promissory note for the balance due having full recourse to take place. At Parent, bearing interest at the closing rate of three percent (3%) per annum, maturing on the first anniversary of the purchase date of the Topexecution and delivery of such promissory note and being pre-Up Option Shares, Parent payable without penalty and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Optionhaving no other material terms, and the Company shall cause deliver to be issued to Acquisition Merger Sub a certificate representing such Top-Up Option Shares or, upon Merger Sub’s request or otherwise if the Company does not then have certificated Shares, the applicable number of uncertificated Shares represented by book-entry. The parties hereto agree Company Board has determined that such consideration for the Top-Up Option Shares is adequate in accordance with the DGCL and otherwise taken all steps necessary such that upon issuance and delivery in accordance with this Section 1.4(c) the Top-Up Option Shares shall be validly issued, fully paid and non-assessable.
(d) Notwithstanding anything to use their reasonable best efforts to cause the closing contrary contained herein, each of Parent, Merger Sub and the Company acknowledges and agrees that, in any appraisal proceeding under Section 262 of the purchase DGCL with respect to shares of Common Stock held by Dissenting Stockholders, the Top-Up Option, the Top-Up Option Shares or any cash or promissory note delivered by Merger Sub to the Company in payment for such Top-Up Option Shares to occur on shall not be taken into account in connection with the same day that determination of the Top-Up Notice is deemed received fair value of the shares of Common Stock held by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated Dissenting Stockholders in accordance with Section 253 262 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option SharesDGCL.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 2 contracts
Sources: Agreement and Plan of Merger (Gilead Sciences Inc), Merger Agreement (Pharmasset Inc)
Top-Up Option. (a) The Subject to Sections 2.03(b) and 2.03(c), the Company hereby irrevocably grants to Acquisition Sub Parent and Purchaser an option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase that from the Company the number of authorized and unissued Company newly-issued Shares (the “Top-Up Option Shares”) equal to the lowest lesser of (i) the number of Company Shares that, when added to the number of Company Shares beneficially owned collectively by Parent and/or Acquisition Sub and Purchaser at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or Option, constitutes 91% of the delivery number of Shares that would be outstanding immediately after the issuance of all Shares subject to the Top-Up Option Shares.
or (bii) Provided the aggregate number of Shares that no applicable Law the Company is authorized to issue under its Restated Certificate of Incorporation but that are not issued and outstanding (and are not subscribed for or Order shall prohibit otherwise committed to be issued) at the time of exercise of the Top-Up Option or the delivery of the Option.
(b) The Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, be exercised by Parent or Purchaser in whole but not or in part, at any one time at or after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement Acceptance Time, in accordance with its termssole discretion. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub Parent or Purchaser pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares shares by the Offer Price, without interestPer Share Amount. Such purchase price may be paid by Acquisition SubParent or Purchaser, at its election, either (A) entirely in cash or (Bi) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and cash, (ii) by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase priceprice or (iii) any combination thereof. Any such promissory note shall bear interest at a the rate of 3% per annum equal to annum, shall mature on the prime lending rate prevailing during the period in which any portion first anniversary of the principal amount date of execution and delivery of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub Parent or Purchaser wishes to exercise the Top-Up Option, Acquisition Sub Parent or Purchaser shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub Parent or Purchaser intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub Parent or Purchaser intends to pay the applicable purchase exercise price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub Parent or Purchaser is to take place. At the closing of the purchase of the Top-Up Option such Shares, Parent and Acquisition Sub or Purchaser shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Optionsuch Shares, and the Company shall cause to be issued to Acquisition Sub Parent or Purchaser (as the case may be) a certificate representing such Top-Up Option Sharesshares. The parties hereto agree to use their reasonable best efforts to cause the closing obligation of the purchase of Company to issue such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant subject to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not compliance with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by all applicable securities Lawsregulatory requirements.
Appears in 2 contracts
Sources: Merger Agreement (Cryocor Inc), Merger Agreement (Cryocor Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Purchaser an irrevocable option (the “Top-Up Option”), exercisable only once upon the terms and subject to the conditions set forth in this Section 2.4herein, to purchase that at the Offer Price an aggregate number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub Parent, Purchaser and their Affiliates at the time of such exercise, shall constitute 100 Company Shares one Share more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days Short Form Threshold (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price); provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then number of authorized but unissued Shares as of immediately prior to the issuance of the Top-Up Shares; provided, further, that the Top-Up Option shall terminate upon the earlier of: (x) the fifth (5th) Business Day after the later of (1) the Expiration Date and unissued shares (2) the expiration of any “subsequent offering period”; and (y) the termination of this Agreement in accordance with its terms.
(b) The obligation of the Company Common Stock or to deliver Top-Up Shares upon the exercise of the Top-Up Option is subject to the conditions that (Bi) if no provision of any applicable Law (other than the applicable listing and corporate governance rules and regulations of the NASD, which shall not apply for purposes of this Section 1.8) and no judgment, injunction, Order or any applicable Order decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
Shares in respect of such exercise, (bii) Provided that no applicable Law or Order shall prohibit the upon exercise of the Top-Up Option or Option, the delivery number of Shares owned by Parent, Purchaser and their Affiliates will constitute one (1) Share more than the Short Form Threshold, and (iii) Purchaser has accepted for payment all Shares validly tendered in the Offer and not properly withdrawn. The parties shall cooperate to ensure that the issuance of the Top-Up Option Shares in respect thereofis accomplished consistent with all applicable legal requirements of all Governmental Entities, Acquisition Sub may including the availability of an applicable exemption from registration of the issuance of the Top-Up Shares under the Securities Act.
(c) To exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option Purchaser shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering send to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a written notice (the a “Top-Up Exercise Notice”) setting forth specifying (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Optionshall be owned by Parent, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price Purchaser and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of their Affiliates immediately preceding the purchase of the Top-Up Option SharesShares and (ii) the place, Parent time and Acquisition Sub date for the closing of the purchase and sale of the Top-Up Shares (the “Top-Up Closing”). The Company shall, promptly after receipt of the Top-Up Exercise Notice, deliver a written notice to Purchaser confirming the number of Top-Up Shares and the aggregate purchase price therefor (the “Top-Up Notice Receipt”). At the Top-Up Closing, Purchaser shall cause to be delivered to pay the Company Company, in the consideration manner set forth in Section 1.8(d) hereof, the aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant Shares, in an aggregate principal amount equal to that specified in the Top-Up OptionNotice Receipt, and the Company shall cause to be issued and delivered to Acquisition Sub Purchaser a certificate or certificates representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by Shares or, at Purchaser’s request or otherwise if the Company pursuant to Section 11.2does not then have certificated Shares, and if not so consummated on such day, as promptly thereafter as possiblethe applicable number of Book-Entry Shares. The parties further agree to use their reasonable best efforts to cause Such certificates or Book-Entry Shares may include any legends that are required by applicable Law.
(d) Purchaser may pay the Merger Company the aggregate price required to be consummated paid for the Top-Up Shares either (i) entirely in accordance with Section 253 of cash or (ii) at Purchaser’s election, by (x) paying in cash an amount equal to not less than the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance aggregate par value of the Top-Up Option SharesShares and (y) executing and delivering to the Company a promissory note having a principal amount equal to the aggregate price required to be paid for the purchase of the Top-Up Shares but less the amount to be paid in cash pursuant to the preceding clause (x) (a “Promissory Note”). Any such Promissory Note shall be full recourse against Parent and Purchaser and (i) shall bear interest at a market rate of interest per annum, payable in arrears at the end of one (1) year, (ii) shall mature on the first (1st) anniversary of the date of execution and delivery of such Promissory Note and (iii) may be prepaid, in whole or in part, without premium or penalty.
(de) Parent and Acquisition Sub understand Purchaser acknowledge that the Company Shares which Acquisition Sub Purchaser may acquire upon exercise of the Top-Up Option will shall not be registered under the Securities Act and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub Purchaser agrees that the Top-Up Option Option, and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option Option, if any, are being and will shall be acquired by Acquisition Sub Purchaser for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 2 contracts
Sources: Merger Agreement (Pulmuone Cornerstone Corp), Merger Agreement (Monterey Gourmet Foods)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub the Purchaser an option (the “Top-Up Option”), exercisable only upon the terms and subject to the conditions set forth in this Section 2.41.8, to purchase that at a price per share equal to the Offer Price an aggregate number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub and the Purchaser at the time of such exercise, shall constitute 100 Company Shares one share more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days then outstanding (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price); provided, however, that the Top-Up Option shall not be exercisable unless unless, (i) the Minimum Condition shall have been satisfied and (ii) immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub the Purchaser reasonably believes that the Short Form Threshold would own more than 90% of the Company Shares then outstanding be reached (assuming the issuance of the Top-Up Option Shares); and provided provided, further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then total authorized and unissued shares Shares, excluding any Shares that are reserved or otherwise committed for issuance. Upon Parent’s request, the Company shall use commercially reasonable efforts to cause its transfer agent to certify in writing to Parent the number of Shares issued and outstanding as of immediately prior to the exercise of the Top-Up Option and after giving effect to the issuance of the Top-Up Option Shares. The Purchaser shall pay the Company Common Stock the aggregate price required to be paid for the Top-Up Option Shares in cash for the amount equal to the aggregate par value of the Top-Up Option Shares, with the balance payable by delivery of a non-negotiable and non-transferable promissory note (the “Promissory Note”). The Promissory Note shall be secured by the Top-Up Option Shares, be full recourse against Parent and the Purchaser, be due one year from the date the Top-Up Option Shares are issued and bear interest at the rate of 5% per annum and may be prepaid without premium or penalty.
(Bb) if any Provided that no applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares in respect thereofpursuant thereto, Acquisition Sub or otherwise make such exercise or issuance illegal, the Purchaser may exercise the Top-Up OptionOption on one or more occasions, in whole but not or in part, at any one time after the Appointment Acceptance Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In Each time that the event Acquisition Sub Purchaser wishes to exercise the Top-Up Option, Acquisition Sub the Purchaser shall deliver send to the Company a written notice (a “Top-Up Exercise Notice”) specifying the denominations of the certificate or certificates evidencing the Top-Up Option Shares that the Purchaser wishes to receive, and the place, time and date for the closing of the purchase and sale pursuant to the Top-Up Option (the “Top-Up Closing”). The Company shall, promptly after receipt of the Top-Up Exercise Notice”) setting forth (i) , deliver a written notice to the Purchaser confirming the number of Top-Up Option Shares that Acquisition Sub intends to and the aggregate purchase pursuant to price therefor (the “Top-Up Notice Receipt”). At the Top-Up OptionClosing, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub Purchaser shall cause to be delivered deliver to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant in an aggregate amount equal to the purchase price specified in the Top-Up OptionNotice Receipt, and the Company shall cause to be issued and delivered to Acquisition Sub the Purchaser a certificate or certificates representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause Such certificates may include any legends that are required by applicable Law. Parent and the closing of Purchaser acknowledge that the purchase of such Top-Up Option Shares to occur on which Parent or the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub Purchaser may acquire upon exercise of the Top-Up Option will shall not be registered under the Securities Act Act, and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees Purchaser agree that the Top-Up Option Option, and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option Option, if any, are being and will shall be acquired by Acquisition Sub the Purchaser for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 2 contracts
Sources: Merger Agreement, Merger Agreement (MAP Pharmaceuticals, Inc.)
Top-Up Option. (ai) The Subject to Section 1.1(g)(ii) and Section 1.1(g)(iii) hereof, the Company hereby irrevocably grants to the Buyer and the Acquisition Sub an assignable and irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase that from the Company the number of authorized and unissued newly-issued shares of Company Shares (the “Top-Up Option Shares”) Common Stock equal to the lowest lesser of (i) the number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or the Buyer or the Acquisition Sub at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares constitutes more than 90% of the number of shares of Company Shares outstanding, assuming Common Stock that would be outstanding immediately after the issuance of all shares of Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of Common Stock subject to the Top-Up Option Shares upon the vesting, (determined on a “fully diluted basis” (which assumes conversion or exercise of all outstanding options, warrants, convertible or exchangeable derivative securities and similar rights, regardless of the conversion or exercise price price, the vesting schedule or other terms or conditions thereof)) and conditions thereof (assuming ii) the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a aggregate number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock that the Company is authorized to issue under its certificate of incorporation but that are not issued and outstanding (and are not subscribed for or (Botherwise committed to be issued) if any applicable Law or any applicable Order shall prohibit at the time of exercise of the Top-Up Option or the delivery of the Option.
(ii) The Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit may be exercised by the exercise of the Top-Up Option Buyer or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up OptionSub, in whole but not or in part, at any one time after following the Appointment Time Acceptance Time, so long as the total number of shares of Company Common Stock beneficially owned by the Acquisition Sub and prior to the earlier to occur Buyer constitutes at least 80% of (i) the Effective Time and (ii) the termination number of this Agreement in accordance with its termsshares of Common Stock outstanding. The aggregate purchase price payable for the Top-Up Option Shares shares of Common Stock being purchased by the Buyer or the Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares shares by the Common Offer Price, without interest. Such purchase price may be paid by the Buyer or the Acquisition Sub, at its election, either (A) entirely in cash or (B) by paying in cash in an amount equal to not less than the aggregate par value of the purchased Top-Up Option Shares such shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal on terms reasonably satisfactory to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyCompany.
(ciii) In the event the Buyer or the Acquisition Sub wishes to exercise the Top-Up Option, the Buyer or the Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares shares of Company Common Stock that the Buyer or the Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which the Buyer or the Acquisition Sub intends to pay the applicable purchase exercise price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares shares of Company Common Stock by the Buyer or the Acquisition Sub is to take place. At the closing of the purchase of such shares of Common Stock, the Top-Up Option Shares, Parent and Buyer or the Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for such shares, which consideration shall be paid (i) in cash, by wire transfer or cashier’s check or (ii) by issuance by the Top-Up Option Shares being purchased pursuant Buyer or the Acquisition Sub, as applicable, to the Top-Up OptionCompany of a promissory note on terms reasonably satisfactory to the Company, and the Company shall cause to be issued to the Buyer or the Acquisition Sub (as the case may be) a certificate representing such Top-Up Option Sharesshares. The parties hereto agree to use their reasonable best efforts to cause the closing obligation of the purchase of Company to issue such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and shares will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant subject to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not compliance with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by all applicable securities Lawsregulatory requirements.
Appears in 2 contracts
Sources: Merger Agreement (I Trax Inc), Merger Agreement (Walgreen Co)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an irrevocable option (the “Top-Up Option”), exercisable only upon on the terms and conditions set forth in this Section 2.41.3, to purchase at a price per share equal to the Offer Price paid in the Offer up to that number of authorized and unissued newly issued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub Buyer and its Subsidiaries at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares one share more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days outstanding immediately after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at Shares on a price per share equal to “fully diluted basis” (which assumes conversion or exercise of all derivative securities regardless of the Offer Priceconversion or exercise price, the vesting schedule or other terms and conditions thereof); provided, however, that (i) the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company Shares authorized (whether unissued or held in the treasury of the Company’s then authorized ) at the time of exercise of the Top-Up Option (giving effect to the Company Shares issuable pursuant to all then-outstanding stock options, restricted stock units and unissued any other rights to acquire Company Shares as if such shares of Company Common Stock or were outstanding) and (Bii) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or and the issuance and delivery of the Top-Up Option Shares.
Shares shall not be prohibited by any Law (bwhich, for the avoidance of doubt, shall not include the rules of NASDAQ) Provided that no applicable Law or Order shall prohibit the exercise judgment, order, writ, injunction, decree or award of the any Governmental Entity. The Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, shall be exercisable at any one time after following the Appointment Time Offer Closing and prior to the earlier to occur of (ia) the Effective Time and (iib) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for obligation of the Company to issue and deliver the Top-Up Shares upon the exercise of the Top-Up Option is subject only to the condition that no Legal Restraint (other than any listing requirement of any national securities exchange) that has the effect of preventing the exercise of the Top-Up Option or the issuance and delivery of the Top-Up Shares being purchased by Acquisition Sub in respect of such exercise shall be in effect. The parties hereto acknowledge and agree that, notwithstanding anything to the contrary herein, the failure to obtain approval of the Company’s shareholders of the issuance of Company Shares pursuant to the Top-Up Option as a result of applicable stock exchange listing requirements shall not cause any condition of the Offer not to be determined by multiplying met. Upon Buyer’s written request, the Company shall use its reasonable best efforts to cause its transfer agent to certify in writing to Buyer the number of such Company Shares issued and outstanding as of immediately prior to the exercise of the Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal after giving effect to the aggregate par value issuance of the purchased Top-Up Shares. Subject to the terms and conditions hereof, and for so long as this Agreement has not been terminated pursuant to the provisions hereof, the Company agrees that it shall maintain out of its existing authorized capital, free from preemptive rights, sufficient authorized but unissued Company Shares issuable pursuant to this Agreement so that the Top-Up Option Shares and by executing and delivering may be exercised, after giving effect to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal Shares issuable pursuant to the remainder of all other then-outstanding stock options, restricted stock units and any other rights to acquire Company Shares as if such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains shares were outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(cb) The parties shall cooperate to ensure that the issuance and delivery of the Top-Up Shares comply with all applicable Laws, including compliance with an applicable exemption from registration of the Top-Up Shares under the Securities Act of 1933, as amended (including the rules and regulations promulgated thereunder, the “Securities Act”). In the event Acquisition Merger Sub wishes to exercise the Top-Up Option, Acquisition Merger Sub shall deliver to give the Company a notice (the “Top-Up Notice”) setting forth prior written notice, specifying (i) the number of Company Shares owned by Buyer and its Subsidiaries at the time of such notice and (ii) a place and a time for the closing of such purchase. The Company shall, as soon as practicable following receipt of such notice, deliver written notice to Merger Sub specifying, based on the information provided by Merger Sub in its notice, the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of Top-Up Shares, the purchase price owed by Merger Sub to the Company therefor shall be paid to the Company by issuance by Merger Sub to the Company of a non-negotiable and non-transferable promissory note, secured by the Top-Up Option SharesShares and bearing compounding interest at 5% per annum, Parent with principal and Acquisition Sub shall cause to be delivered to interest due one year after the Company the consideration required to be delivered in exchange for purchase of the Top-Up Option Shares being purchased pursuant to the Top-Up OptionShares, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Sharesprepayable in whole or in part without premium or penalty. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such the Top-Up Option Shares to occur on the same day that the Top-Up Notice such notice is deemed received by the Company pursuant to Section 11.2Company, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 14-2-1104 of the DGCL GBCC and as contemplated by Section 8.3(c) without a meeting of shareholders as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 2 contracts
Sources: Merger Agreement (NCR Corp), Merger Agreement (Radiant Systems Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Parent and Acquisition Sub an irrevocable option (the “Top"TOP-Up Option”)UP OPTION") to purchase, exercisable only upon the terms and conditions set forth in this Section 2.4, to purchase that number of authorized and unissued Company Shares (the “Top-Up Option Shares”) at a price per share equal to the lowest Per Share Amount, a number of shares of Company Shares Common Stock (the "TOP-UP OPTION SHARES") that, when added EXECUTION VERSION to the number of shares of Company Shares beneficially Common Stock owned by Parent, Acquisition Sub or any wholly-owned Subsidiary of Parent and/or or Acquisition Sub at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 constitutes one share of Company Shares Common Stock more than 90% of the Fully Diluted Number of Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) . The Top-Up Option may be exercised by Parent or Acquisition Sub, in whole or in part, at a price per share equal any time on or after the first date on which Acquisition Sub accepts any shares of Company Common Stock for payment pursuant to the Offer Price(the "ACCEPTANCE DATE") and on or prior to the tenth Business Day after the later of (i) the Acceptance Date or (ii) the expiration of any Subsequent Offering Period; provided, however, that the obligation of the Company to deliver Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit upon the exercise of the Top-Up Option or is subject to the delivery conditions that (A) no provision of the Top-Up Option Shares.
(b) Provided that no any applicable Law and no judgment, injunction, order or Order decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereofof such exercise, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (iB) the Effective Time and (ii) the termination issuance of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option would not require approval of the Company Stockholders under applicable Law (including, without limitation, Nasdaq rules and regulations, including Section 4350(i)(1)(D)), and (C) Acquisition Sub has accepted for payment and in accordance with Section 1.1(b) paid for all shares of Company Common Stock validly tendered in the Offer and not withdrawn. The parties shall be determined by multiplying cooperate to ensure that the number issuance of such the Top-Up Option Shares by the Offer Priceis accomplished consistent with applicable Law, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in including compliance with an amount equal to the aggregate par value applicable exemption from registration of the purchased Top-Up Option Shares and by executing and delivering to under the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltySecurities Act.
(cb) In the event Parent or Acquisition Sub wishes to exercise the Top-Up Option, Parent shall so notify the Company in writing and shall set forth in such notice (i) the number of shares of Company Common Stock that are expected to be owned by Parent, Acquisition Sub shall deliver to or any wholly-owned Subsidiary of Parent or Acquisition Sub immediately preceding the Company a notice (purchase of the “Top-Up Notice”Option Shares and (ii) setting forth (i) a place and time for the closing of the purchase of the Top-Up Option Shares. The Company shall, as soon as practicable following receipt of such notice, notify Parent and Acquisition Sub of the number of shares of Company Common Stock then outstanding and the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and or Acquisition Sub Sub, as the case may be, shall cause to be delivered to pay the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionShares, and the Company shall cause to be issued to Parent or Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such daySub, as promptly thereafter the case may be, one or more certificates, as possible. The parties further agree to use their reasonable best efforts to cause required by Parent or Acquisition Sub, as the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (includingcase may be, to the extent possible, on the same day as) the issuance of representing the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 2 contracts
Sources: Merger Agreement (Superior Consultant Holdings Corp), Merger Agreement (Affiliated Computer Services Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub an irrevocable option (the “"Top-Up Option”"), exercisable only upon on or after the terms and conditions set forth in this Section 2.4Determination Time, to purchase that number of authorized and unissued shares of Common Stock of the Company Shares (the “"Top-Up Option Shares”") equal to the lowest number of shares of Common Stock of the Company Shares that, when added to the number of shares of Common Stock of the Company Shares beneficially owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares one share more than ninety percent (90% %) of the then outstanding shares of Common Stock of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares), at a price per share equal to the Offer Price payable in the form of an unsecured promissory note issued by Acquisition to the Company with a maturity of one year; and provided furtherprovided, however, that in no event shall the Top-Up Option be exercisable (A) for a number of shares of Common Stock of the Company Shares in excess of the Company’s 's then authorized and but unissued shares of Company Common Stock of the Company (giving effect to such shares of Common Stock of the Company reserved for issuance pursuant to outstanding Options and Warrants).
(b) Acquisition may exercise the Top-Up Option, in whole but not in part, at any one time after the occurrence of a Top-Up Exercise Event and prior to the Top-Up Termination Date. The "Top-Up Termination Date" will occur upon the earliest to occur of the following: (i) the Effective Time; (ii) the termination of this Agreement pursuant to its terms; (iii) ten (10) Business Days after the occurrence of a Top-Up Exercise Event; or (Biv) ten (10) Business Days after the expiration of any Subsequent Offer Period that has not been extended.
(c) For purposes of this Agreement, a "Top-Up Exercise Event" shall occur only if any applicable Law or any applicable Order immediately after consummation of the Offer Acquisition beneficially owns at least eighty percent (80%) of the outstanding shares of Common Stock of the Company.
(d) In the event Acquisition wishes to exercise the Top-Up Option, Acquisition shall prohibit so notify the exercise Company in writing, and shall set forth in such notice (i) the number of shares of Common Stock of the Company that are expected to be owned by Acquisition immediately preceding the purchase of the Top-Up Option or Shares and (ii) the delivery place and time for the closing of the purchase of the Top-Up Option Shares (the "Top-Up Closing"). The Company shall, as soon as practicable following receipt of such notice, notify Acquisition in writing of the number of shares of Common Stock of the Company then outstanding and the number of Top-Up Option Shares. At the Top-Up Closing, Acquisition shall pay the Company the aggregate price required to be paid for the Top-Up Option Shares and the Company shall cause to be issued to Acquisition a certificate representing the Top-Up Option Shares.
(be) Provided that The obligation of the Company to deliver Top-Up Option Shares upon the exercise of the Top-Up Option is subject to the following conditions: (i) any applicable waiting period under the HSR Act and regulations analogous to the HSR Act existing in foreign jurisdictions relating to the issuance of the Top-Up Option Shares will have expired or been terminated; (ii) no provision of any applicable Law and no judgment, order, or Order decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, of any such exercise; and (iii) Acquisition Sub may exercise shall have notified the Company in writing that it intends to cause the Effective Time to occur no later than one (1) Business Day after the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyClosing.
(cf) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent Buyer and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the shares of Common Stock of the Company Shares which that Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offeringtransaction. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” Accredited Investor, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates .
(g) Certificates evidencing the Top-Up Option Shares shall include any legends required by applicable securities Lawsdelivered hereunder may, at the Company's election, contain the following legend: "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933 OR ANY EXEMPTION THEREFROM."
Appears in 2 contracts
Sources: Merger Agreement (T Netix Inc), Merger Agreement (T Netix Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an irrevocable option (the “Top-Up Option”), exercisable only upon on or after the terms and conditions set forth in this Section 2.4Appointment Time, to purchase that number of authorized and unissued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or Acquisition Merger Sub at the time of such exercise, shall constitute 100 Company Shares one share more than 90% of the shares of Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all Common Stock then outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option SharesShares and the exercise of all outstanding exercisable options to purchase shares of Company Common Stock with an exercise price equal to or less than $17.87) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of shares of Company Shares Common Stock pursuant thereto, Acquisition Merger Sub would own more than 90% of the shares of Company Shares Common Stock then outstanding (assuming the issuance of the Top-Up Option Shares)outstanding; and provided further, however, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Top-Up Option Shares (i) in excess of the Company’s then authorized and unissued shares of Company Common Stock (giving effect to shares of Company Common Stock reserved or issuance under the Company Stock Plans as though such shares were outstanding) or (Bii) if any applicable Law or any applicable Order shall prohibit the exercise that would require approval of the Top-Up Option or the delivery of the Top-Up Option SharesCompany Stockholders under applicable NASDAQ rules.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Merger Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time occurrence of a Top-Up Exercise Event and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with pursuant to its terms. The aggregate purchase price payable For purposes of this Agreement, a “Top-Up Exercise Event” shall occur only upon Merger Sub’s acceptance of Company Common Stock for payment pursuant to the Offer or acquisition of Company Common Stock pursuant to the Offer constituting at least 80% of the shares of Company Common Stock then outstanding.
(c) Parent and Merger Sub acknowledge that the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act Act, and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Merger Sub represent and warrant to the Company that Acquisition Merger Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Merger Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Merger Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof within the meaning in violation of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 2 contracts
Sources: Merger Agreement (Cognos Inc), Merger Agreement (Applix Inc /Ma/)
Top-Up Option. (a) The Subject to Section 2.6(b) and Section 2.6(c), the Company hereby irrevocably grants to Acquisition Sub the Purchaser an option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase that from the Company the number of authorized and unissued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or Acquisition Sub at the time Purchaser as of such exerciseimmediately prior to the exercise of the Top-Up Option, shall constitute 100 Company Shares constitutes one share more than 90% of the Company Shares outstanding, assuming the issuance number of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance shares of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares Common Stock then outstanding (assuming the issuance of the Top-Up Option Shares); and provided furtherprovided, that however, in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares shares (i) in excess of the Company’s then authorized and unissued aggregate of the number of shares of Company Common Stock or held as treasury shares by the Company and its Subsidiaries and the number of shares of Company Common Stock that the Company is authorized to issue under its certificate of incorporation but that are not issued and outstanding (Band are not otherwise reserved for issuance) if any applicable Law or any applicable Order shall prohibit as of immediately prior to the exercise of the Top-Up Option or (ii) that would require the delivery of the Top-Up Option SharesCompany to obtain stockholder approval under applicable securities exchange listing standards.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the The Top-Up Option or may be exercised by the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up OptionPurchaser, in whole but not in part, at any one time at or after the Appointment Acceptance Time and prior to the earlier to occur expiration of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termsany subsequent offering period. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interestConsideration. Such purchase price may shall be paid by Acquisition Sub, at its election, either (A) entirely the Purchaser in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltycash.
(c) In the event Acquisition Sub that the Purchaser wishes to exercise the Top-Up Option, Acquisition Sub it shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such the Top-Up Option Shares by Acquisition Sub the Purchaser is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub the Purchaser shall cause to be delivered to the Company the consideration required to be delivered in exchange for the such Top-Up Option Shares being purchased pursuant to the Top-Up OptionShares, and the Company shall cause to be issued to Acquisition Sub the Purchaser a certificate representing such Top-Up Option Shares. shares.
(d) The parties hereto agree to use their reasonable best efforts to cause Parent and the closing of Purchaser acknowledge that the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub Purchaser may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. The Parent and Acquisition Sub the Purchaser represent and warrant to the Company that Acquisition Sub the Purchaser is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub The Purchaser agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub Purchaser for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof within the meaning in violation of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 2 contracts
Sources: Merger Agreement (Mapinfo Corp), Merger Agreement (Mapinfo Corp)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Purchaser an irrevocable option (the “"Top-Up Option”"), exercisable only upon the terms and subject to the conditions set forth in this Section 2.4, to purchase that purchase, at a price per share equal to the Offer Price, an aggregate number of authorized and unissued Company Shares shares of Common Stock (the “"Top-Up Option Shares”") equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially shares of Common Stock directly or indirectly owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares one (1) share more than 90% the number of shares sufficient to reach the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof Short Form Threshold (assuming the issuance of the Top-Up Option Shares); provided that (i) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Top-Up Option Shares pursuant thereto, Acquisition Sub the Short Form Threshold would own more than 90% of the Company Shares then outstanding be reached (assuming the issuance of the Top-Up Option Shares); ) and provided further, that (ii) in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares shares of Common Stock in excess of the Company’s then 's total authorized and unissued shares of Common Stock. Upon Parent's request, the Company Common Stock shall cause its transfer agent to certify in writing to Parent the number of Shares issued and outstanding as of immediately prior to the exercise of the Top-Up Option and after giving effect to the issuance of the Top-Up Option Shares. Purchaser shall pay the Company the aggregate price required to be paid for the Top-Up Option Shares in cash by wire transfer to a bank account designated by the Company.
(b) Provided that no applicable law, rule, regulation, order, injunction or (B) if any applicable Law or any applicable Order other legal impediment shall prohibit or require stockholder approval for the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares.
(b) Provided that no applicable Law Shares pursuant thereto, or Order shall prohibit otherwise make such exercise or issuance illegal, and subject to satisfaction of the conditions for exercise of the Top-Up Option or the delivery of the Top-Up Option Shares set forth in respect thereofSection 2.4(a), Acquisition Sub Purchaser may exercise the Top-Up OptionOption on one or more occasions, in whole but not or in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termspursuant to Section 8.1. The aggregate purchase price payable for Neither Parent nor Purchaser may transfer, assign or otherwise dispose of the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Topany other Person, other than a wholly-Up Option shall be determined by multiplying the number owned direct or indirect Subsidiary of such Top-Up Option Shares by the Offer PriceParent, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value prior written consent of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyCompany.
(c) In the event Acquisition Sub Each time that Purchaser wishes to exercise the Top-Up Option, Acquisition Sub Purchaser shall deliver send to the Company a written notice (the “a "Top-Up Exercise Notice”," the date of which notice is referred to herein as the "Top-Up Notice Date") setting forth specifying the denominations of the certificate or certificates evidencing the Top-Up Option Shares which Purchaser wishes to receive, and the place, time and date for the closing of the purchase and sale pursuant to the Top-Up Option (i) the "Top-Up Closing"). The Company shall, promptly after receipt of the Top-Up Exercise Notice, deliver a written notice to Purchaser confirming the number of Top-Up Option Shares that Acquisition Sub intends to and the aggregate purchase pursuant to price therefor (the "Top-Up Notice Receipt"). At the Top-Up OptionClosing, (ii) the manner in which Acquisition Sub intends to Purchaser shall pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant to as specified in the Top-Up OptionNotice Receipt in cash by wire transfer to a bank account designated by the Company, and the Company shall cause to be issued and delivered to Acquisition Sub Purchaser a certificate or certificates representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by or, if the Company pursuant to Section 11.2does not then have certificated Shares, and if not so consummated on such day, as promptly thereafter as possiblethe applicable number of Book-Entry Shares. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated Such certificates or Book-Entry Shares may include any legends that are required by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Sharesfederal or state securities laws.
(d) Parent and Acquisition Sub Purchaser understand that the Company Shares which Acquisition Sub Purchaser may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offeringSection 4(2) of the Securities Act and/or Rule 506 promulgated thereunder. Parent and Acquisition Sub Purchaser represent and warrant to the Company that Acquisition Sub Purchaser is, or will be upon the purchase of the Top-Up Option Shares, an “"accredited investor,” " as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub Purchaser agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub Purchaser for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 2 contracts
Sources: Merger Agreement (Hewlett Packard Co), Merger Agreement (Opsware Inc)
Top-Up Option. (a) The Company Seller hereby irrevocably grants to Acquisition Sub Purchaser an irrevocable option (the “Top-Up Option”), exercisable only upon on the terms and conditions set forth in this Section 2.41.4, to purchase at a price per share equal to the Offer Price paid in the Offer up to that number of authorized and unissued Company Shares newly issued shares of Seller Common Stock (the “Top-Up Option Shares”) equal to the lowest number of Company Shares shares of Seller Common Stock that, when added to the number of Company Shares beneficially shares of Seller Common Stock directly or indirectly owned by Parent and/or Acquisition Sub or Purchaser at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares one share more than 90% of the Company Shares outstanding, assuming the issuance shares of all Company Shares that are issuable within ten Business Days Seller Common Stock outstanding immediately after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at Shares (determined on a price per share equal to the Offer Price“fully diluted basis”); provided, however, that (i) the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares shares of Seller Common Stock in excess of the Company’s then shares of Seller Common Stock authorized and unissued shares at the time of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of and (ii) the Top-Up Option Shares.
may not be exercised unless, following the time of acceptance by Purchaser of shares of Seller Common Stock tendered in the Offer or after a subsequent offering period, eighty-five percent (b85%) Provided that no applicable Law or Order shall prohibit the exercise more of the shares of Seller Common Stock shall be directly or indirectly owned by Parent or Purchaser. The Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, shall be exercisable once at any one time after following the Appointment Time Acceptance Date and prior to the earlier to occur of (ia) the Effective Time and (iib) the termination of this Agreement in accordance with its terms. .
(b) The aggregate purchase price payable for parties shall cooperate to ensure that the issuance and delivery of the Top-Up Option Shares being purchased by Acquisition Sub pursuant to comply with all applicable Law, including compliance with an applicable exemption from registration of the Top-Up Option shall be determined by multiplying Shares under the number of such Top-Up Option Shares by the Offer Price, without interestSecurities Act. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub If Purchaser wishes to exercise the Top-Up Option, Acquisition Sub Purchaser shall deliver to the Company a notice give Seller one (the “Top-Up Notice”1) setting forth Business Day prior written notice, specifying (i) the number of shares of Seller Common Stock directly or indirectly owned by Parent or Purchaser at the time of such notice and (ii) a place and a time for the closing of such purchase. Seller shall, as soon as practicable following receipt of such notice, deliver written notice to Purchaser specifying, based on the information provided by Purchaser in its notice, the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option SharesShares (A), Parent the purchase price owed by Purchaser to Seller therefor shall be paid to Seller (i) in cash, by wire transfer or cashier’s check or (ii) by issuance by Purchaser to Seller of a promissory note on terms reasonably satisfactory to Seller and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionPurchaser, and the Company (B) Seller shall cause to be issued and delivered to Acquisition Sub Purchaser a certificate or certificates representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by Shares or, if Seller does not then have certificated shares of Seller Common Stock, the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 applicable number of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the TopBook-Up Option Entry Shares.
(dc) Parent and Acquisition Sub understand Purchaser acknowledge that the Company Shares which Acquisition Sub shares of Seller Common Stock that Purchaser may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub Purchaser represent and warrant to the Company Seller that Acquisition Sub Purchaser is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub Purchaser agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub Purchaser for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 2 contracts
Sources: Merger Agreement (BladeLogic, Inc.), Merger Agreement (BMC Software Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.41.4, to purchase up to that number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially directly or indirectly owned by Parent and/or Acquisition or Merger Sub at the time of such exercise, shall constitute 100 Company Shares one share more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days outstanding immediately after the scheduled closing of the purchase exercise of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Priceas set forth below; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized but unissued Shares (less the number of such Shares reserved for issuance in respect of vested Company Stock Options outstanding immediately prior to the expiration of the Offer with an exercise price less than the Per Share Amount (the “Vested In-The-Money Options”). The purchase price for the Top-Up Option Shares shall be equal to the Offer Price, which price shall be payable in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and unissued shares by the issuance of Company Common Stock a full recourse note with a principal amount equal to the remainder of the exercise price in the form attached as Exhibit A.
(b) The Top-Up Option shall be exercised by Merger Sub, in whole or in part, at any time on or after the Acceptance Time (B) if any applicable Law or any applicable Order shall prohibit so long as the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereofwould, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time issuance of Shares thereunder, be sufficient to allow the Short Form Merger to occur), and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for ; provided, however, that the obligation of the Company to deliver Top-Up Option Shares upon the exercise of the Top-Up Option is subject to the conditions that (A) no provision of any applicable Law and no judgment, injunction, order or decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares being purchased in respect of such exercise, (B) upon exercise of the Top-Up Option, the number of Shares owned by Acquisition Parent or Merger Sub pursuant to or any wholly-owned Subsidiary of Parent or Merger Sub constitutes one Share more than 90% of the number of Shares that will be outstanding immediately after the issuance of the Top-Up Option Shares, and (C) Merger Sub has accepted for payment all Shares validly tendered in the Offer and not withdrawn. The parties shall be determined by multiplying cooperate to ensure that the number issuance of such the Top-Up Option Shares by the Offer Priceis accomplished consistent with all applicable legal requirements of all Governmental Entities, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in including compliance with an amount equal to the aggregate par value applicable exemption from registration of the purchased Top-Up Option Shares under the Securities Act.
(c) Upon the exercise of the Top-Up Option in accordance with Section 1.4(a), Parent shall so notify the Company and shall set forth in such notice (i) the number of Shares that are expected to be owned by Parent, Merger Sub or any wholly-owned Subsidiary of Parent or Merger Sub immediately preceding the purchase of the Top-Up Option Shares and by executing (ii) a place and delivering to time for the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion closing of the principal amount purchase of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up OptionOption Shares. The Company shall, Acquisition as soon as practicable following receipt of such notice, notify Parent and Merger Sub shall deliver to of the Company a notice (the “Top-Up Notice”) setting forth (i) number of Shares then outstanding and the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub or Merger Sub, as the case may be, shall cause to be delivered to pay the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionSection 1.4(a), and the Company shall cause to be issued to Acquisition Parent or Merger Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Merger Sub understand acknowledge that the Company Shares which Acquisition Merger Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Merger Sub represent and warrant to the Company that Acquisition Merger Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Merger Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Merger Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 2 contracts
Sources: Merger Agreement (Stealth Acquisition Corp.), Merger Agreement (Safenet Inc)
Top-Up Option. (a) The Subject to the terms and conditions herein, the Company hereby irrevocably grants to Acquisition Sub Parent an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase up to that number of authorized and unissued shares of the Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock collectively owned by Parent and/or Acquisition Parent, Sub at and any of their respective affiliates immediately following consummation of the time of such exercise, Offer shall constitute 100 Company Shares more than 90% of the shares of Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days Common Stock then outstanding (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares) at a purchase price per share Top-Up Option Share equal to the Offer Price; provided. Notwithstanding the foregoing provisions of this Section 1.04(a), however, that the Top-Up Option shall not be exercisable unless immediately after such if the aggregate number of shares issuable upon exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); Option, plus the aggregate number of then-outstanding shares of Company Common Stock, plus the aggregate number of shares of Company Common Stock issuable upon exercise of all options and provided furtherother rights to purchase Company Common Stock, plus the aggregate number of shares reserved for issuance pursuant to the Company Stock Plans (as defined in Section 7.04) would exceed the number of authorized shares of Company Common Stock.
(b) Parent may, at its election, exercise the Top-Up Option, in whole, but not in part, at any one time after the occurrence of a Top-Up Exercise Event and prior to the occurrence of a Top-Up Termination Event.
(i) A Top-Up Exercise Event shall occur upon Parent’s or Sub’s acceptance for payment pursuant to the Offer (which shall include, for sake of clarity, any subsequent offering period that in no event Parent or Sub may elect to extend pursuant to the terms and conditions of this Agreement) of shares of Company Common Stock constituting, together with Company Common Stock owned directly or indirectly by any other affiliates of Parent, at least 80 percent, but less than 90 percent of the shares of the Company Common Stock then outstanding.
(ii) The Top-Up Termination Date shall occur upon the earliest to occur of (A) the Effective Time, (B) the termination of this Agreement, (C) the date that is ten business days after the occurrence of a Top-Up Exercise Event, unless the Top-Up Option be exercisable has been previously exercised in accordance with the terms and conditions hereof and (AD) the date that is ten business days after the Top-Up Notice Date unless the Top-Up Closing shall have previously occurred.
(c) If Parent wishes to exercise the Top-Up Option, Parent shall send to the Company a written notice (a “Top-Up Exercise Notice”, and the date of receipt of which notice is referred to herein as the “Top-Up Notice Date”) specifying the place for a number of Company Shares in excess the closing of the Company’s then authorized purchase and unissued sale of shares of Company Common Stock pursuant to the Top-Up Option (the “Top-Up Closing”) and a date not earlier than one business day nor later than ten business days after the Top-Up Notice Date for the Top-Up Closing. The Company shall, promptly after receipt of the Top-Up Exercise Notice, deliver a written notice to Parent confirming the number of Top-Up Option Shares and the aggregate purchase price therefor.
(d) At the Top-Up Closing, subject to the terms and conditions of this Agreement, (i) the Company shall deliver to Parent a certificate or (B) if any certificates evidencing the applicable Law or any applicable Order shall prohibit number of Top-Up Option Shares, provided that the obligation of the Company to deliver Top-Up Option Shares upon the exercise of the Top-Up Option or is subject to the delivery of the Top-Up Option Shares.
(b) Provided condition that no provision of any applicable Law or Order Judgment shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may of any such exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) Parent shall purchase each Top-Up Option Share from the termination Company at the Offer Price. Payment by Parent of this Agreement in accordance with its terms. The aggregate the purchase price payable for the Top-Up Option Shares being purchased may be made, at Parent’s option, by Acquisition Sub pursuant delivery of (A) immediately available funds by wire transfer to an account designated by the Company or (B) a demand note issued by Parent in customary form that is reasonably acceptable to the parties and in a principal face amount equal to the aggregate amount of the cash portion of the purchase price for the Top-Up Option Shares. Any demand note issued pursuant to the preceding sentence shall be determined accompanied by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal a credit support arrangement reasonably acceptable to the aggregate par value of parties hereto.
(e) Upon the purchased Top-Up Option Shares and delivery by executing and delivering Parent to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up OptionExercise Notice, Acquisition Sub shall deliver to and the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing tender of the purchase consideration described in Section 1.04(d), Parent shall be deemed to be the holder of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase record of the Top-Up Option SharesShares issuable upon that exercise, Parent and Acquisition Sub shall cause to be delivered to notwithstanding that the stock transfer books of the Company the consideration required to shall then be delivered in exchange for the closed or that certificates representing those Top-Up Option Shares being purchased pursuant shall not then be actually delivered to the Top-Up Option, and Parent or the Company shall cause have failed or refused to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause designate the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to bank account described in Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares1.04(d).
(df) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates Certificates evidencing Top-Up Option Shares shall delivered hereunder may include any legends legally required by applicable securities Lawsincluding a legend in substantially the following form: THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY BE REOFFERED OR SOLD ONLY IF SO REGISTERED OR IF AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.
Appears in 2 contracts
Sources: Merger Agreement (Ruby Merger Corp.), Merger Agreement (Ruby Merger Corp.)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub an irrevocable option (the “"Top-Up Option”"), exercisable only upon on the terms and conditions set forth in this Section 2.41.03, to purchase that number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer PricePrice paid in the Offer up to that number of newly issued shares of Company Common Stock (the "Top-Up Shares") equal to the lowest number of shares of Company Common Stock that, when added to the number of shares of Company Common Stock directly or indirectly owned by Parent at the time of exercise of the Top-Up Option, shall constitute one share more than ninety percent (90%) of the shares of Company Common Stock outstanding immediately after the issuance of the Top-Up Shares (determined on a fully diluted basis for all outstanding stock options, restricted stock units and any other rights to acquire Company Common Stock outstanding on the date of determination); provided, however, that (i) the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance for a number of shares of Company Shares pursuant thereto, Acquisition Sub would own more than 90% Common Stock in excess of the shares of Company Shares then Common Stock authorized and unissued at the time of exercise of the Top-Up Option (giving effect to the shares of Company Common Stock issuable pursuant to all then-outstanding stock options, restricted stock units and any other rights to acquire Company Common Stock as if such shares were outstanding) and (assuming ii) the issuance of the Top-Up Option SharesShares shall not require approval of the Company's stockholders under applicable Law (including the rules of NASDAQ); and provided further, that in no event shall the . The Top-Up Option shall be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after following the Appointment Time Offer Closing and prior to the earlier to occur of (ia) the Effective Time and (iib) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for obligation of the Company to issue and deliver the Top-Up Shares upon the exercise of the Top-Up Option Shares being purchased by Acquisition Sub pursuant is subject only to the condition that no Legal Restraint that has the effect of preventing the exercise of the Top-Up Option shall be determined by multiplying or the number issuance and delivery of such the Top-Up Option Shares by in respect of such exercise shall be in effect.
(b) The parties shall cooperate to ensure that the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value issuance and delivery of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion comply with all applicable Laws, including compliance with an applicable exemption from registration of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on Top-Up Shares under the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) Securities Act. In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to give the Company a notice at least three (the “Top-Up Notice”3) setting forth business days prior written notice, specifying (i) the number of shares of the Company Common Stock directly or indirectly owned by Parent at the time of such notice and (ii) a place and a time for the closing of such purchase. The Company shall, as soon as practicable following receipt of such notice, deliver written notice to Sub specifying, based on the information provided by Sub in its notice, the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition the purchase price owed by Sub shall cause to be delivered to the Company the consideration required to therefor shall be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant paid to the Company that Acquisition (i) in cash, by wire transfer or cashier's check or (ii) by issuance by Sub is, or will be upon to the purchase Company of a promissory note on terms reasonably satisfactory to the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities LawsCompany.
Appears in 2 contracts
Sources: Merger Agreement (Kosan Biosciences Inc), Merger Agreement (Bristol Myers Squibb Co)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub an irrevocable option (the “Top-Up Option”), exercisable only upon on or after the terms and conditions set forth in this Section 2.4Determination Time, to purchase that number of authorized and unissued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares one share more than ninety percent (90% %) of the then outstanding shares of Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof Common Stock (assuming the issuance of the Top-Up Option Shares) ), at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than at least ninety percent (90% %) of the Company Shares then outstanding shares of Company Common Stock (assuming the issuance of the Top-Up Option Shares); and provided provided, further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares shares in excess of the Company’s then authorized and but unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise giving effect to such shares of the Top-Up Option or the delivery Company Common Stock reserved for issuance pursuant to outstanding Company Employee Stock Options as though such shares of the Top-Up Option SharesCompany Common Stock were outstanding).
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time occurrence of a Top-Up Exercise Event and prior to the earlier Top-Up Termination Date. The “Top-Up Termination Date” will occur upon the earliest to occur of the following: (i) the Effective Time and Time; (ii) the termination of this Agreement in accordance with pursuant to its terms. The aggregate purchase price payable for ; and (iii) ten (10) Business Days after the occurrence of a Top-Up Option Shares being purchased by Acquisition Exercise Event, if Sub pursuant has failed to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to notify the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder in writing of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes its intent to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 the terms and conditions of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Sharesthis Agreement.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 2 contracts
Sources: Merger Agreement (Click Commerce Inc), Merger Agreement (Illinois Tool Works Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an option (the “Top-Up Option”), exercisable only upon after Merger Sub’s acceptance for payment of Shares validly tendered and not withdrawn as of the expiration date of the Offer and payment for such Shares in accordance with the terms of the Offer by depositing the aggregate purchase price therefor with the Depositary (the “Depositary”) for the Offer (the date and conditions set forth in this Section 2.4time of such deposit with the Depositary being referred to as the “Purchase Time”), and prior to the Effective Time, to purchase from the Company that number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned directly or indirectly by Parent and/or Acquisition or Merger Sub at immediately following the time consummation of such exercisethe Offer, shall constitute 100 Company Shares one share more than 90% of the Company total Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days then outstanding (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares) at a price per share Share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) to the extent it would be exercisable for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if including as authorized and unissued shares of Common Stock, for purposes of this Section 1A.5, any applicable Law or any applicable Order shall prohibit Shares held in the exercise treasury of the Top-Up Option or the delivery of the Top-Up Option SharesCompany).
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition If Merger Sub wishes to exercise the Top-Up Option, Acquisition Parent or Merger Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Merger Sub intends wishes to purchase pursuant to the Top-Up Option, and (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such the Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Merger Sub shall cause to be delivered to pay the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option(which payment, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, except to the extent possible, on of the same day as) the issuance par value of the Top-Up Option Shares.
(d, may be in the form of a note) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of for the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase Up-Shares against delivery of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Lawstherefor.
Appears in 2 contracts
Sources: Merger Agreement (AMICAS, Inc.), Merger Agreement (Emageon Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Merger Subsidiary an option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.42.04, to purchase that number of authorized and unissued Company Shares (the “Top-Up Option Company Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially directly or indirectly owned by Parent and/or Acquisition Sub or Merger Subsidiary at the time of such exercise, shall constitute 100 Company Shares one share more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming taking into account the issuance of the Top-Up Option Company Shares) at a price per share equal to the Common Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued Company Shares (giving effect to Company Shares reserved for issuance under any Company Equity Plan as if such shares of Company Common Stock or were outstanding).
(Bb) if any applicable Provided that no Applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Company Shares in respect thereof, Acquisition Sub Merger Subsidiary may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time consummation of the Offer and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand Subsidiary acknowledge that the Company Shares which Acquisition Sub that Merger Subsidiary may acquire upon exercise of the Top-Up Option will not be registered under the Securities 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Acquisition Sub represent Merger Subsidiary hereby represents and warrant warrants to the Company that Acquisition Sub Merger Subsidiary is, or and will be upon the purchase of the Top-Up Option Company Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities 1933 Act. Acquisition Sub Merger Subsidiary agrees that the Top-Up Option and the Top-Up Option Company Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub Merger Subsidiary for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities 1933 Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 2 contracts
Sources: Merger Agreement (Kla Tencor Corp), Merger Agreement (Therma Wave Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Parent and Acquisition Sub an irrevocable option (the “Top-Up Option”), exercisable only upon on the terms and conditions set forth in this Section 2.41.4, to purchase that from the Company the number of authorized newly-issued, fully paid and unissued non-assessable shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest lesser of: (i) the number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or or Acquisition Sub at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares constitutes at least one share more than 90% of the number of shares of Company Shares outstanding, assuming the issuance of all Company Shares Common Stock that are issuable within ten Business Days after the scheduled closing of the purchase of the Topwould be outstanding on a fully-Up Option Shares upon the vesting, diluted basis (which assumes conversion or exercise of all outstanding options, warrants, convertible or exchangeable derivative securities and similar rights, regardless of the conversion or exercise price price, the vesting schedule or other terms and conditions thereof (assuming thereof) immediately after the issuance of all shares of Company Common Stock subject to the Top-Up Option; or (ii) the aggregate number of shares of Company Common Stock that the Company is authorized to issue under its certificate of incorporation but that are not issued and outstanding (and are not subscribed for or otherwise committed to be issued or reserved for issuance) at the time of exercise of the Top-Up Option SharesOption.
(b) at a price per share equal to the Offer Price; provided, however, that the The Top-Up Option shall not may be exercisable unless immediately exercised by Parent or Acquisition Sub, in whole or in part, at any time at or after such exercise and the issuance Acceptance Time. If: (i) the number of shares of Company Shares pursuant thereto, Common Stock owned by Parent or Acquisition Sub would own immediately following the Acceptance Time does not constitute at least one share more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or that are then outstanding on a fully-diluted basis; (Bii) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option would result in Parent or the delivery Acquisition Sub owning at least one share more than 90% of the Topnumber of shares of Company Common Stock that are then outstanding on a fully-Up Option Shares.
diluted basis; and (biii) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of in accordance with this Section 1.4 would not violate any applicable legal requirements, then the Top-Up Option Shares in respect thereof, shall be exercised by Parent or Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termsSub. The aggregate purchase price payable for the Top-Up Option Shares shares of Company Common Stock being purchased by Parent or Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such shares by the Offer Price (it being understood that, if Parent elects to exercise the Top-Up Option, the Offer Price for purposes of this Section 1.4(b) shall be equal to: (A) the Cash Consideration; plus (B) the dollar amount determined by multiplying the Stock Consideration by the average of the closing sale prices of a share of Parent Common Stock as reported on the Nasdaq Global Select Market for each of the 10 consecutive trading days prior to the date on which the Top-Up Option Shares by the Offer Price, without interestis exercised). Such purchase price may be paid by Parent or Acquisition Sub, at its electionelection either: (1) in cash, either (A) entirely in cash by wire transfer of immediately available funds; or (B2) by: (x) paying in cash in cash, by wire transfer of immediately available funds, an amount equal to not less than the aggregate par value of the purchased Top-Up Option Shares Shares; and by (y) executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such aggregate purchase price. Any such promissory note shall bear interest at a rate per annum equal price pursuant to the prime lending rate prevailing during Top-Up Option less the period amount paid in which any portion of cash pursuant to the principal amount of such promissory note remains outstanding, as published in preceding clause “(x)” (the “Promissory Note”). The Wall Street Journal, calculated on a daily basis Promissory Note: (I) shall be due on the outstanding principal amount first anniversary of such promissory note from the date such promissory note is originally issued until the date of payment execution and delivery thereof; (II) shall bear simple interest at the rate of 3% per annum, payable in arrears at maturity; (III) shall be full of such promissory note, recourse against Parent and Acquisition Sub; (IV) may be prepaid prepaid, in whole or in part, at any time without premium or penalty; and (V) shall have no other material terms. Parent, Acquisition Sub and the Company acknowledge and agree that, in any appraisal proceeding related to this Agreement, the fair value of the shares of Company Common Stock subject to the appraisal proceeding shall be determined in accordance with the DGCL without regard to the exercise by Parent or Acquisition Sub of the Top-Up Option, any shares of Company Common Stock issued upon exercise of the Top-Up Option or the Promissory Note.
(c) In the event Parent or Acquisition Sub wishes to exercise the Top-Up Option, Parent or Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth forth: (i) the number of Top-Up Option Shares shares of Company Common Stock that Parent or Acquisition Sub intends to purchase pursuant to the Top-Up Option, ; (ii) the manner in which Parent or Acquisition Sub intends to pay the applicable purchase price exercise price; and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares shares of Company Common Stock by Parent or Acquisition Sub is to take place. The Company shall, as soon as practicable following receipt of such notice, notify Acquisition Sub of the number of shares of Company Common Stock then outstanding, the number of shares of Company Common Stock then outstanding on a fully-diluted basis and the number of Top-Up Shares. At the closing of the purchase of the Top-Up Option Sharessuch shares of Company Common Stock, Parent and or Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Optionsuch shares, and the Company shall cause to be issued to Parent or Acquisition Sub (as the case may be) a certificate representing such Top-Up Option Sharesshares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand acknowledge that the Company any Top-Up Shares which Acquisition Sub may acquire issued upon exercise of the Top-Up Option will not be registered under the Securities Act and that all such Top-Up Shares will be issued in reliance upon an applicable exemption thereunder for transactions not involving a public offeringfrom registration under the Securities Act. Each of Parent and Acquisition Sub represent hereby represents and warrant warrants to the Company that Parent and Acquisition Sub isare, or and will be be, upon the purchase of the Top-Up Option Shares, an “accredited investorinvestors,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Parent or Acquisition Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing ).
(d) Without the prior written consent of the Company, the right to exercise the Top-Up Option Shares granted pursuant to this Agreement may be exercised only once and shall include any legends required not be assigned by applicable securities LawsParent or Acquisition Sub. Any attempted assignment in violation of this Section 1.4(d) shall be null and void.
Appears in 2 contracts
Sources: Merger Agreement (Riverbed Technology, Inc.), Merger Agreement (Opnet Technologies Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Parent and Acquisition Sub an irrevocable option (the “Top-Up Option”)) to purchase, exercisable only upon at a price per share equal to the terms and conditions set forth in this Section 2.4Per Share Cash Election Consideration, up to purchase that such number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or and Acquisition Sub at and any wholly owned subsidiary of Parent or Acquisition immediately prior to the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares constitutes one Share more than 90% of the Company Shares outstanding, assuming the issuance number of all Company Shares that are issuable within ten Business Days will be outstanding on a fully diluted basis immediately after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) . The Top-Up Option may be exercised by Parent or Acquisition, in whole or in part, at a price per share equal to any time on or after the Offer PriceExpiration Date; provided, however, that the obligation of the Company to deliver Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit upon the exercise of the Top-Up Option is subject to the conditions that (i) no judgment, injunction, order or the delivery decree of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order any Governmental Entity shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereofof such exercise, (ii) the issuance of the Top-Up Option Shares will not cause the Company to have more Shares outstanding than are authorized by the Restated Articles of Incorporation of the Company, and (iii) Acquisition Sub has accepted for payment all Shares validly tendered in the Offer and not withdrawn. The parties shall cooperate to ensure that the issuance of the Top-Up Option Shares is accomplished consistent with all applicable legal requirements of all Governmental Entities, including compliance with an applicable exemption from registration of the Top-Up Option Shares under the Securities Act.
(b) The Company shall, as soon as practicable following receipt of notice from Parent or Acquisition, as the case may be, of their intent to exercise of the Top-Up Option, in whole but not in part, at any one time after the Appointment Time notify Parent and prior to the earlier to occur Acquisition of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interestthen outstanding. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent Shares will take place at a time and Acquisition Sub shall cause on a date to be delivered to specified by Parent or Acquisition, which shall be no later than one business day after the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to exercise of the Top-Up Option, at the offices of Wachtell, Lipton, ▇▇▇▇▇ & ▇▇▇▇, ▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, unless another time, date or place is specified by Parent or Acquisition. Parent or Acquisition, as the case may be, shall pay the Company an amount equal to the Per Share Cash Election Consideration multiplied by the number of Top-Up Option Shares specified by Parent (the “Top-Up Consideration”), and the Company shall shall, at Parent’s or Acquisition’s request, cause to be issued to Parent or Acquisition Sub a certificate representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares Consideration may be paid by Acquisition or Parent by executing and delivering to occur on the same day that Company a promissory note having a principal amount equal to the aggregate cash purchase price for the Top-Up Notice is deemed received by Shares. Any such promissory note shall bear interest at the Company pursuant rate of interest per annum equal to Section 11.2the prime lending rate prevailing from time to time during such period as published in The Wall Street Journal, and if not so consummated shall mature on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 first anniversary of the DGCL date of execution and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance delivery of the Top-Up Option Sharessuch promissory note and may be prepaid without premium or penalty.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 1 contract
Sources: Agreement and Plan of Merger (Smith International Inc)
Top-Up Option. Pursuant to the terms of the HP Merger Agreement following our initial acceptance for payment of Shares pursuant to the Offer (a) The Company hereby irrevocably grants to Acquisition Sub an the "Appointment Time"), if we acquire more than a majority but less than 90% of the Shares outstanding, we would have the option (the “"Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ") to purchase that from 3PAR, subject to certain limitations, up to a number of authorized and unissued Company additional Shares (the “"Top-Up Option Shares”") equal sufficient to the lowest number of Company Shares that, when added cause Purchaser to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute own 100 Company Shares more than 90% of the Company Shares then outstanding, taking into account those Shares outstanding after the exercise of the option, calculated on a fully-diluted basis (assuming the issuance of all Company Shares that are issuable within ten Business Days 10 business days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or ). The exercise price or other terms and conditions thereof (assuming the issuance of for the Top-Up Option Shares) at would equal the Offer Price and would be paid in cash or by issuance by us to 3PAR of a price per share equal full recourse unsecured promissory note. Pursuant to the Offer Price; providedterms of the HP Merger Agreement, however, that the Top-Up Option shall not would be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the effective time of the Merger (the "Effective Time Time") and (ii) the termination of this the HP Merger Agreement in accordance with its terms. The aggregate purchase price payable for Under the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value terms of the purchased Top-Up Option Shares and by executing and delivering to HP Merger Agreement, the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto would agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause consummate the Merger to be consummated in accordance with the short-form merger provisions of Section 253 of the DGCL and (as contemplated by Section 8.3(cdescribed below) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand . Moreover, the HP Merger Agreement provides that the Company Top-Up Option would not be exercisable to the extent that the number of Shares which Acquisition Sub may acquire issuable upon exercise of the Top-Up Option will not be registered would exceed the number of authorized but unissued and unreserved Shares. We could also acquire additional Shares after completion of the Offer through other means, such as open market purchases. In any event, if we acquire at least 90% of the issued and outstanding Shares entitled to vote on the adoption of the HP Merger Agreement, we would effect the Merger under the Securities Act and will be issued "short-form" merger provisions of the DGCL. Stockholders who have not sold their Shares in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant the Offer would have certain appraisal rights with respect to the Company that Acquisition Sub is, or will be upon merger under the purchase applicable provisions of the Top-Up Option SharesDGCL, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option if those rights are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Lawsperfected.
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants Pursuant to Acquisition Sub the Merger Agreement, Steinway granted to Purchaser an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase that at the Offer Price an aggregate number of authorized newly issued, fully paid and unissued Company non assessable Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially directly or indirectly owned by Parent and/or Acquisition Sub and its affiliates at the time of such exerciseexercise (after giving effect to the Offer Closing), shall will constitute 100 Company Shares one Share more than 90% of the Company outstanding Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Topon a fully-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Pricediluted basis; provided, however, that the Top-Up Option shall may not be exercisable unless immediately after such exercised to the extent (i) the number of Shares issuable upon exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Top-Up Option would exceed the number of authorized but unissued Shares then outstanding (assuming or Shares held as treasury stock as of immediately prior to the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable Shares (Agiving effect to Shares reserved for issuance as if such Shares were outstanding) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (Bii) if any provision of applicable Law law has the effect of enjoining or any applicable Order shall prohibit otherwise prohibiting the exercise of the Top-Up Option or the issuance and delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the . The Top-Up Option or shall be exercised on the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement Offer Closing Date in accordance with its termsthe procedures set forth in the Merger Agreement. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub Purchaser pursuant to the Top-Up Option shall will be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Subpayable, at its electionPurchaser’s Option, either (Ai) entirely in cash cash, by wire transfer of same-day funds or (Bii) by (a) paying in cash in cash, by wire transfer of same-day funds, an amount equal to not less than the aggregate par value of the Shares purchased pursuant to the Top-Up Option Shares and by (b) executing and delivering to the Company Steinway a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such aggregate purchase price. Any such promissory note shall bear interest at a rate per annum equal price pursuant to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver Option less the amount paid in cash pursuant to clause (a) above. The promissory note: (A) will be due on the Company a notice (first anniversary of the “Top-Up Notice”) setting forth (i) closing of the number purchase of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (iiB) the manner will bear simple interest of 5% per annum, payable in which Acquisition Sub intends arrears at maturity, (C) will be full recourse to pay the applicable purchase price Purchaser, (D) may be prepaid, in whole or in part, at any time without premium or penalty and (iiiE) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shareswill have no other material terms.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub the Purchaser an irrevocable option (the “Top-Up Option”)) to purchase, exercisable only upon at a price per share equal to the terms and conditions set forth in this Section 2.4Offer Price, to purchase that a number of authorized and unissued Company Common Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Common Shares beneficially owned by Parent and/or Acquisition Sub or the Purchaser or any direct or indirect wholly owned Subsidiary of Parent or the Purchaser at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares constitutes one Common Share more than 90% of the Company Shares outstanding, assuming the issuance number of all Company Common Shares that are issuable within ten Business Days will be outstanding immediately after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) . The Top-Up Option may be exercised by the Purchaser, in whole, at a price per share equal any time on or after the date on which the Purchaser accepts for payment and pays for all Common Shares validly tendered and not validly withdrawn pursuant to the Offer Price(the “Acceptance Date”) on or prior to the earlier of the Effective Time and the termination of this Agreement pursuant to Section 8.1; provided, however, that the obligation of the Company to deliver Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit upon the exercise of the Top-Up Option is subject to the conditions that (i) the number of Common Shares beneficially owned by Parent or Purchaser immediately prior to the delivery time of exercise of the Top-Up Option Shares.
constitutes at least 65% of the number of Common Shares then outstanding, (bii) Provided that no provision of any applicable Law and no judgment, injunction, order or Order decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereofof such exercise, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (iiii) the Effective Time and (ii) the termination issuance of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying would not exceed the Company’s authorized and unissued Common Shares, (iv) upon exercise of the Top-Up Option, the number of such Top-Up Option Common Shares owned by Parent or the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash Purchaser or (B) in cash in an amount equal to any direct or indirect wholly owned Subsidiary of Parent or the aggregate par value Purchaser will constitute one Common Share more than 90% of the purchased number of Common Shares that will be outstanding immediately after the issuance of the Top-Up Option Shares and by executing (v) the Purchaser has accepted for payment and delivering paid for all Common Shares validly tendered in the Offer and not validly withdrawn. The parties shall cooperate to ensure that the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder issuance of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up OptionOption Shares is accomplished consistent with all requirements of applicable Laws, Acquisition Sub shall deliver to including compliance with an applicable exemption from registration of the Company a notice (the “Top-Up Notice”Option Shares under the Securities Act.
(b) setting Upon the exercise of the Top-Up Option in accordance with Section 1.4(a), the Purchaser shall so notify the Company and shall set forth in such notice (i) the total number of Common Shares that are expected to be owned by Parent, the Purchaser or any direct or indirect wholly owned Subsidiary of Parent or the Purchaser immediately preceding the purchase of the Top-Up Option Shares and (ii) a place and time for the closing of the purchase of the Top-Up Option Shares. The Company shall, as soon as practicable following receipt of such notice, notify Parent and the Purchaser of the number of Common Shares then outstanding, the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to and the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable aggregate purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placetherefor. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub the Purchaser shall cause to be delivered to pay the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionShares, and the Company shall cause to be issued to Acquisition Sub the Purchaser a certificate representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the aggregate purchase of such Top-Up Option Shares to occur on the same day that price payable for the Top-Up Notice is deemed received Shares may be paid by the Purchaser by executing and delivering to the Company pursuant a full recourse promissory note having a principal amount equal to Section 11.2the balance of the aggregate purchase price for the Top-Up Shares. Any such promissory note shall bear interest at the rate of interest per annum equal to the rate of interest publicly announced by Bank of America, and if not so consummated on in the City of New York from time to time during such dayperiod, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause such bank’s Prime Lending Rate, shall mature on the Merger to be consummated in accordance with Section 253 first anniversary of the DGCL date of execution and as contemplated by Section 8.3(c) as close in time as possible to (including, to delivery of such promissory note and may be prepaid without premium or penalty. In the extent possible, on the same day as) the issuance of event that this Agreement is terminated after the Top-Up Option Shares.
(d) Parent is exercised and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant prior to the Company that Acquisition Sub isEffective Time, or will be upon all amounts then owing pursuant to the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option promissory note (including all interest) shall thereupon become immediately due and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Lawspayable.
Appears in 1 contract
Sources: Merger Agreement (Infocus Corp)
Top-Up Option. (a) The Immediately following Acceptance, the Company hereby irrevocably grants shall grant to Acquisition Merger Sub an irrevocable option (the “Top-Up Option”)) to purchase, exercisable only upon at a price per share equal to the terms and conditions set forth in this Section 2.4Offer Price, to purchase that a number of authorized and unissued Company Shares newly issued shares of Common Stock (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned shares of Common Stock owned, directly or indirectly, by Parent and/or Acquisition or Merger Sub at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares constitutes one share of Common Stock more than 90% of the Company Shares outstanding, assuming the issuance number of all Company Shares shares of Common Stock that are issuable within ten Business Days will be outstanding immediately after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) . The Top-Up Option may be exercised, in whole or in part, at a price per share equal any time on or after any Expiration Date hereunder and on or prior to the Offer Pricefifth (5th) Business Day after the Expiration Date or the expiration date of any subsequent offering period; provided, however, that the obligation of the Company to deliver Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit upon the exercise of the Top-Up Option or is subject to the delivery conditions that (A) prior to the exercise of the Top-Up Option Shares.
Option, Parent and Merger Sub own at least 80% of the total number of shares of Common Stock then outstanding, (bB) Provided that no provision of any applicable Law or Order and no Restraint shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereofof such exercise, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (iC) the Effective Time and (ii) the termination issuance of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value would not require approval of the purchased Top-Up Option Shares Company’s stockholders under the Act or any rule or regulation of the Nasdaq Global Select Market and by executing and delivering to would not obligate the Company to issue or deliver any Company Securities pursuant to preemptive rights provisions contained in any agreement to which the Company is a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder party, (D) upon exercise of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition the number of shares of Common Stock owned, directly or indirectly, by Parent or Merger Sub shall deliver to constitutes one share of Common Stock more than 90% of the Company a notice (number of shares of Common Stock that will be outstanding immediately after the “issuance of the Top-Up Notice”) setting forth Option Shares, (iE) the number of Top-Up Option Shares that Acquisition Sub intends to purchase issued pursuant to the Top-Up Option, Option shall in no event exceed the number of authorized and unissued shares of Common Stock not otherwise reserved for issuance for outstanding Company Equity Awards or other obligations of the Company and (iiF) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub Acceptance shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shareshave occurred.
(db) Parent and Acquisition Merger Sub understand acknowledge that the Company Shares shares of Common Stock which Acquisition Merger Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Merger Sub represent and warrant to the Company that Acquisition Merger Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities 1933 Act. Acquisition Merger Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Merger Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act▇▇▇▇ ▇▇▇) in violation of the ▇▇▇▇ ▇▇▇. Any certificates evidencing The parties shall cooperate to ensure that the issuance of the Top-Up Option Shares is accomplished consistent with all applicable Laws, including compliance with an applicable exemption from registration of the Top-Up Option Shares under the Securities Act.
(c) Upon the exercise of the Top-Up Option in accordance with Section 1.4(a), Merger Sub shall include any legends so notify the Company and shall set forth in such notice (i) the number of shares of Common Stock that will be owned, directly or indirectly, by Parent or Merger Sub immediately preceding the purchase of the Top-Up Option Shares and (ii) a place and time for the closing of the purchase of the Top-Up Option Shares. The Company shall, as soon as practicable following receipt of such notice, notify Merger Sub of the number of shares of Common Stock then outstanding and the number of Top-Up Option Shares. At the closing of the purchase of the Top-Up Option Shares, Merger Sub shall pay the Company the aggregate price required to be paid for the Top-Up Option Shares, which shall equal the Offer Price multiplied by applicable securities Lawsthe number of Top-Up Option Shares, and the Company shall cause to be issued to Merger Sub a certificate representing the Top-Up Option Shares. The aggregate purchase price payable for the Top-Up Shares may be paid by Merger Sub by payment of cash, executing and delivering to the Company a promissory note having a principal amount equal to the balance of the aggregate purchase price for the Top-Up Shares or a combination thereof as Parent shall determine. Any such promissory note shall bear interest at the rate of 7% per annum, shall mature on the first anniversary of the date of execution and delivery of such promissory note and may be prepaid without premium or penalty. In the event that this Agreement is terminated after the Top-Up Option is exercised and prior to the Effective Time, all amounts then owing pursuant to the promissory note (including all interest) shall thereupon become immediately due and payable and, at the election of Parent, the Top-Up Shares may be returned to the Company in full satisfaction of the amount owed on the promissory note.
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Parent and Merger Sub an irrevocable option (the “Top-Up OptionOption ”)) to purchase, exercisable only upon at a price per Share equal to the terms and conditions set forth in this Section 2.4Offer Price, up to purchase that such number of authorized and unissued Company Shares (the “Top-Up Option SharesShares ”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition and Merger Sub at and any wholly owned Subsidiary of Parent or Merger Sub immediately prior to the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase exercise of the Top-Up Option Shares upon the vestingOption, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless constitutes one Share more than 80% of the conversion or exercise price or other terms and conditions thereof (assuming number of Shares that will be outstanding on a fully diluted basis immediately after the issuance of the Top-Up Option Shares) at a price per share equal to . The Top-Up Option will be exercised by Parent or Merger Sub immediately after the Offer PriceAcceptance Time if following such Acceptance Time, Parent or Merger Sub do not own 80% of the outstanding Shares; provided, however, that the obligation of the Company to deliver Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit upon the exercise of the Top-Up Option is subject to the conditions that (i) no judgment, injunction, order or the delivery decree of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order any Governmental Entity shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereofof such exercise, Acquisition (ii) the issuance of the Top-Up Option Shares will not cause the Company to have more Shares outstanding than are authorized by the Restated Articles of Incorporation of the Company, and (iii) Merger Sub has accepted for payment and paid for all Shares validly tendered in the Offer and not withdrawn. The parties shall cooperate to ensure that the issuance of the Top-Up Option Shares is accomplished consistent with all applicable legal requirements of all Governmental Entities, including compliance with an applicable exemption from registration of the Top-Up Option Shares under the Securities Act.
(b) The Company shall, as soon as practicable following receipt of notice from Parent or Merger Sub, as the case may be, of their intent to exercise of the Top-Up Option, in whole but not in part, at any one time after the Appointment Time notify Parent and prior to the earlier to occur Merger Sub of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interestthen outstanding. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent Shares will take place at a time and Acquisition Sub shall cause on a date to be delivered to specified by Parent or Merger Sub, which shall be no later than one Business Day after the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to exercise of the Top-Up Option, at the offices of ▇▇▇▇▇▇▇▇ & ▇▇▇▇▇ LLP, ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, unless another time, date or place is specified by Parent or Merger Sub. Parent or Merger Sub, as the case may be, shall pay the Company an amount equal to the Offer Price multiplied by the number of Top-Up Option Shares specified by Parent (the “Top-Up Consideration ”), and the Company shall shall, at Parent’s or Merger Sub’s request, cause to be issued to Acquisition Parent or Merger Sub a certificate representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares Consideration may be paid by Merger Sub or Parent by executing and delivering to occur on the same day that Company a promissory note having a principal amount equal to the aggregate cash purchase price for the Top-Up Notice is deemed received by Shares. Any such promissory note shall bear interest at the Company pursuant rate of interest per annum equal to Section 11.2the prime lending rate prevailing from time to time during such period as published in The Wall Street Journal, and if not so consummated shall mature on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 first anniversary of the DGCL date of execution and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance delivery of the Top-Up Option Sharessuch promissory note and may be prepaid without premium or penalty.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 1 contract
Sources: Merger Agreement (Bankrate, Inc.)
Top-Up Option. (a) The Prior to the scheduled Acceptance Time, Parent and the Company shall confer and mutually determine, in good faith, after consulting with their respective outside legal counsel, whether the Merger remains eligible to be effected pursuant to Section 251(h) of the DGCL. Unless Parent and the Company determine that the Merger is ineligible to be effected pursuant to Section 251(h) of the DGCL (the “251(h) Inapplicable Determination”) the Merger shall be effected in accordance with Section 251(h) of the DGCL. If prior to the Effective Time, Parent and the Company make a 251(h) Inapplicable Determination then, contingent and effective upon the occurrence of the 251(h) Inapplicable Determination and the Acceptance Time, the Company hereby irrevocably grants to Acquisition Sub Purchaser an irrevocable option (the “Top-Up Option”), exercisable only once and only upon the terms and subject to the conditions set forth in this Section 2.41.4, and only for so long as this Agreement has not been terminated pursuant to Section 7.1, to purchase that at a price per share equal to the Offer Price an aggregate number of authorized validly issued, fully paid and unissued nonassessable shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added up to the number of then-available authorized and unissued shares of Company Shares beneficially owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer PriceCommon Stock; provided, however, that the Top-Up Option shall not be exercisable deemed to be exercised (i) to purchase an amount of Top-Up Option Shares in excess of the number of shares of Company Common Stock authorized and unissued (treating shares owned by the Company as treasury stock as unissued) at the time of exercise of the Top-Up Option (treating shares of Company Common Stock that the Company may be required to issue upon the vesting (including vesting solely as a result of the consummation of the Offer), conversion, settlement or exercise of all then outstanding warrants, options, benefit plans, obligations or securities convertible or exchangeable into shares of Company Common Stock, or other rights to acquire or be issued shares of Company Common Stock, regardless of the conversion or exercise price or other terms and conditions thereof, as if such shares were outstanding), (ii) unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); , Purchaser and provided furtherParent shall, that in no event shall when added to the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock owned by Purchaser and Parent, own at least 90% of the shares of the Company Common Stock outstanding (excluding from the calculation of the number of shares of Company Common Stock Purchaser and Parent then owns, but not from the calculation of then-outstanding shares of Company Common Stock, the Shares tendered pursuant to guaranteed delivery procedures that have not yet been delivered in settlement or satisfaction of such guarantee) immediately after the Acceptance Time (Bthe “Short-Form Threshold”), (iii) unless the Acceptance Time shall have occurred, (iv) unless Purchaser irrevocably commits upon acquisition of the Top-Up Shares to immediately effect the Merger pursuant to Section 2.3 and (v) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or Option, the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the issuance and delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise and compliance with this Section 1.4 shall be prohibited by any outstanding order or Law (excluding any rules of the Top-Up Option, in whole but not in part, at any one time after NYSE that require stockholder approval). Purchaser shall pay the Appointment Time and prior to Company the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable required to be paid for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely as set forth in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltySection 1.4(b).
(cb) In the event Acquisition Sub wishes there is a 251(h) Inapplicable Determination, and subject to the limitations set forth in Section 1.4(a) and the satisfaction of the conditions to the Merger set forth in Article VI, if there shall not have been validly tendered in the Offer and not validly withdrawn that number of shares of Company Common Stock which, when added to the shares of Company Common Stock owned by Purchaser and Parent prior to giving effect to the exercise of the Top-Up Option, Acquisition Sub does not represent at least the Short-Form Threshold on the Offer Closing Date, Purchaser shall deliver on such date be deemed to have exercised the Company a notice (the “Top-Up Notice”Option for such number of Top-Up Option Shares as is necessary for Purchaser to reach the Short-Form Threshold and on such date shall give the Company prior written notice specifying (x) setting forth the number of shares of Company Common Stock directly or indirectly owned by Purchaser and Parent at the time of such notice (igiving effect to the Offer Closing but prior to giving effect to the exercise of the Top-Up Option) and (y) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to Shares. Such notice will also include an undertaking signed by Purchaser and Parent that, immediately following the Top-Up OptionClosing, (ii) Purchaser will, and Parent will cause Purchaser to, consummate the manner Merger in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase accordance with Section 2.3. The Company shall, as soon as practicable following receipt of such notice (and in any event no later than the Offer Closing), deliver written notice to Purchaser specifying the number of Shares then outstanding and, based on such number and, based on the information provided by Purchaser in its notice, the number of Top-Up Option Shares to be purchased. If the number of Top-Up Option Shares specified in the notice provided delivered by Acquisition Sub Purchaser is to take placedifferent than the number of Top-Up Option Shares specified in the notice delivered by the Company, the Company and Purchaser shall, as promptly as practicable and in any event on the Offer Closing Date, reasonably agree on the appropriate number of Top-Up Option Shares. At the closing of the purchase of the Top-Up Option SharesShares (the “Top-Up Closing”), Parent and Acquisition Sub which shall cause to be delivered take place simultaneously with the Offer Closing, the purchase price owed by Purchaser to the Company the consideration required to be delivered in exchange for purchase the Top-Up Option Shares being purchased shall be paid to the Company, at Purchaser’s option: (i) in cash, by wire transfer of same-day funds; or (ii) by (A) paying by check or in cash, by wire transfer of same-day funds, an amount equal to not less than the aggregate par value of the Top-Up Option Shares and (B) executing and delivering to the Company a promissory note having a principal amount equal to the aggregate purchase price pursuant to the Top-Up OptionOption less the amount paid in cash pursuant to the preceding clause (A) (the “Promissory Note”). The Promissory Note: (1) shall be due on the first anniversary of the Top-Up Closing; (2) shall bear simple interest of 5% per annum, payable in arrears at maturity; (3) shall be fully recourse to Purchaser and Parent; (4) may be prepaid, in whole or in part, at any time without premium or penalty; and (5) shall have no other material terms. At the Top-Up Closing, the Company shall cause to be issued to Acquisition Sub Purchaser a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(dc) Each of Purchaser and Parent and Acquisition Sub understand acknowledges that the Company Top-Up Option Shares which Acquisition Sub that Purchaser may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. The parties hereto shall cooperate to ensure that the issuance of the Top-Up Option Shares is accomplished consistent with all applicable Laws, including compliance with an applicable exemption from registration of the Top-Up Option Shares under the Securities Act. Each of Purchaser and Parent represents and Acquisition Sub represent and warrant warrants to the Company that Acquisition Sub Purchaser is, or and will be upon the purchase exercise of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub Each of Purchaser and Parent represents, warrants and agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub Purchaser for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act). Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
(d) Any dilutive impact on the value of the shares of Company Common Stock resulting from the issuance of the Top-Up Option Shares or the payment by Purchaser to the Company of consideration of the Top-Up Option Shares, including the Promissory Note, will not be taken into account in any determination of the fair value of any Dissenting Shares pursuant to Section 262 of the DGCL as contemplated by Section 2.10 and none of the parties hereto shall take any position to the contrary in any appraisal proceeding.
(e) Purchaser’s right to exercise the Top-Up Option granted pursuant to this Agreement may not be assigned other than in accordance with Section 8.8 without the prior written consent of the Company. Any attempted assignment in violation of this Section 1.4(e) shall be null and void.
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.41.4, to purchase up to that number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially directly or indirectly owned by Parent and/or Acquisition or Merger Sub at the time of such exercise, shall constitute 100 Company Shares more than at least 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days outstanding immediately after the scheduled closing of the purchase exercise of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Priceas set forth below; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized but unissued Shares (calculated on a fully-diluted basis). The purchase price for the Top-Up Option Shares shall be equal to the Offer Price, which price shall be payable in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and unissued shares by the issuance of Company Common Stock or a full recourse note with a principal amount equal to the remainder of the exercise price in the form attached as Exhibit B.
(Bb) if any applicable Law or any applicable Order The Top-Up Option shall prohibit be exercised by Merger Sub (but only so long as the exercise of the Top-Up Option or would, after the delivery issuance of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereofthereunder, Acquisition Sub may exercise the Top-Up Optionbe sufficient to allow a Short Form Merger to occur), in whole but not or in part, at any one time on or after the Appointment Acceptance Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for ; provided, however, that the obligation of the Company to deliver Top-Up Option Shares upon the exercise of the Top-Up Option is subject to the conditions that (A) no provision of any applicable Law and no judgment, injunction, order or decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares being purchased in respect of such exercise, (B) upon exercise of the Top-Up Option, the number of Shares owned by Acquisition Parent or Merger Sub pursuant to or any wholly-owned Subsidiary of Parent or Merger Sub shall constitute at least 90% of the number of Shares that will be outstanding immediately after the issuance of the Top-Up Option Shares, and (C) Merger Sub has accepted for payment all Shares validly tendered in the Offer and not withdrawn. The parties shall be determined by multiplying cooperate to ensure that the number issuance of such the Top-Up Option Shares by is accomplished consistent with all applicable requirements of Law and the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value rules and regulations of the purchased NASDAQ, including compliance with an applicable exemption from registration of the Top-Up Option Shares under the Securities Act.
(c) Upon the exercise of the Top-Up Option in accordance with Section 1.4(a), Parent shall so notify the Company and shall set forth in such notice (i) the number of Shares that are expected to be owned by Parent, Merger Sub or any wholly-owned Subsidiary of Parent or Merger Sub immediately preceding the purchase of the Top-Up Option Shares and by executing (ii) a place and delivering to time for the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion closing of the principal amount purchase of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up OptionOption Shares. The Company shall, Acquisition Sub shall deliver to the Company a as soon as practicable following receipt of such notice (the “Top-Up Notice”but in any event within one (1) setting forth (i) Business Day), notify Parent and Merger Sub of the number of Top-Up Option Shares that Acquisition Sub intends to then outstanding and the number of available Shares for purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub or Merger Sub, as the case may be, shall cause to be delivered to pay the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionSection 1.4(a), and the Company shall cause to be issued to Acquisition Parent or Merger Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received which may include any legends required by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Sharesapplicable securities Laws.
(d) Parent and Acquisition Merger Sub understand acknowledge that the Company Shares which Acquisition Merger Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Merger Sub represent and warrant to the Company that Acquisition Merger Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Merger Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Merger Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Parent and Purchaser an option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase that from the Company the number of authorized and unissued Company newly-issued Shares (such newly-issued shares, the “Top-Up Option Shares”) equal to the lowest lesser of (i) the number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub and its Subsidiaries at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares constitutes one share more than 90% of the Company number of Shares outstanding, assuming that would be outstanding immediately after the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of subject to the Top-Up Option on a fully diluted basis or (ii) the aggregate number of Shares upon that the vesting, conversion Company is authorized to issue under its certificate of incorporation but that are not issued and outstanding (and are not subscribed for or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Sharesotherwise committed to be issued) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance time of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Option. The Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to terminate upon the earlier to occur of (iA) the Effective Time and (iiB) the termination of this Agreement in accordance with its terms.
(b) The Top-Up Option may be exercised by Parent or Purchaser, in whole or in part, at any time on or after the Offer Acceptance Time, in its sole discretion; provided, however, that the obligation of the Company to deliver Top-Up Option Shares upon the exercise of the Top-Up Option is subject to the conditions, unless waived by the Company, that immediately following the exercise of the Top-Up Option, the number of Shares owned in the aggregate by Parent and Purchaser constitutes at least one share more than 90% of the number of Shares that would be outstanding immediately after the issuance of all Top-Up Option Shares. The parties shall cooperate to ensure that the issuance of the Top-Up Option Shares is accomplished consistent with all applicable Legal Requirements, including compliance with an applicable exemption from registration of the Top-Up Option Shares under the Securities Act.
(c) The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition SubParent or Purchaser, at its election, either (Ai) entirely in cash or cash, (Bii) by payment in cash in an amount equal to of the aggregate par value of the purchased Top-Up Option Shares and payment of the balance by executing and delivering to the Company a promissory note (with full recourse unsecured promissory note issued by the Acquisition Sub to Parent) having a principal amount equal to the remainder difference between the purchase price and the aggregate par value of such purchase pricethe Top-Up Option Shares or (iii) any combination thereof. Any such promissory note shall bear interest at a the applicable federal rate per annum equal to as determined for U.S. income tax purposes, shall mature on the prime lending rate prevailing during the period in which any portion first anniversary of the principal amount date of execution and delivery of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid at any time without premium or penalty; provided, however, upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(cd) In the event Acquisition Sub Parent or Purchaser wishes to exercise the Top-Up Option, Acquisition Sub Parent or Purchaser shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub Parent or Purchaser intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub Parent or Purchaser intends to pay the applicable purchase exercise price and (iii) the place and time at which the closing of the purchase of such the Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub or Purchaser shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionShares, and the Company shall cause to be issued and delivered to Acquisition Sub Parent or Purchaser (as the case may be) a certificate or certificates representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on or, at Parent’s or Purchaser’s request or otherwise if the same day Company does not then have certificated Shares, the applicable number of non-certificated Shares represented by book-entry (the “Book-Entry Shares”). Such certificates or Book-Entry Shares may include any legends required by applicable Legal Requirements.
(e) Parent and Purchaser acknowledge that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand Shares that the Company Shares which Acquisition Sub Purchaser may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub Purchaser represent and warrant to the Company that Acquisition Sub Purchaser is, or and will be upon the purchase of the Top-Up Option Shares, an “accredited investorAccredited Investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub Purchaser agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option Option, if any, are being and will be acquired by Acquisition Sub Purchaser for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof within the meaning in violation of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 1 contract
Sources: Merger Agreement (Amgen Inc)
Top-Up Option. (a) The Company hereby irrevocably grants Subject to Acquisition Sub an option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4herein, the Company hereby grants to Parent an irrevocable option (the "TOP-UP OPTION") to purchase up to that number of authorized and unissued shares of Company Shares Common Stock (the “Top"TOP-Up Option Shares”UP OPTION SHARES") equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock collectively owned by Parent and/or Parent, Acquisition Sub at and any of their respective affiliates immediately following consummation of the time of such exerciseOffer, shall constitute 100 Company Shares more than at least 90% of the Company Fully Diluted Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); , at a purchase price per Top-Up Option Share equal to the Offer Consideration, payable in shares of Parent Common Stock or cash or a demand note in an amount equal to the value of the Offer Consideration. The Top-Up Option may be exercised by Parent if and provided furtherto the extent that the exercise of such option would not prevent the Offer and the Merger from qualifying as a reorganization under Section 368(a) of the Code.
(b) Parent may, at its election, exercise the Top-Up Option, whether in whole or in part, at any one time after the occurrence of a Top-Up Exercise Event and prior to the occurrence of a Top-Up Termination Event (as defined below). For the purposes hereof, a "TOP-UP EXERCISE EVENT" shall occur upon Parent's acceptance for payment pursuant to the Offer (including, without limitation, any subsequent offering that in no event shall Parent may elect to extend pursuant to the terms and conditions of this Agreement) of Shares constituting, together with Shares owned directly or indirectly by any other affiliates of Parent, less than 90% of the Fully-Diluted Shares, but only if (i) the issuance of the Top-Up Option be exercisable Shares pursuant thereto would not require the approval of the stockholders of the Company under NASDAQ rules and regulations or NASDAQ has granted a waiver from any such rule or regulation that is reasonably acceptable to the parties hereto, (Aii) for a number of Company Shares in excess there is no other applicable law, rule or regulation that would require the approval of the Company’s then authorized 's stockholders for the issuance of the Top-Up Shares or any such approval shall have been waived and unissued shares of Company (iii) the Top-Up Option Shares and any Parent Common Stock or (B) if any applicable Law or any applicable Order shall prohibit to be issued in connection with the exercise of the Top-Up Option may be issued pursuant to a valid exemption from the registration requirements of the Securities Act or any state securities laws. Upon and after the delivery request of Parent, the Company will use its reasonable best efforts (but without the payment of any money) to obtain such a waiver from NASDAQ as promptly as possible after any such request. For the purposes hereof, the "TOP-UP TERMINATION DATE" shall occur upon the earliest to occur of (A) the Effective Time, (B) the termination of this Agreement, (C) the date that is ten business days after the occurrence of a Top-Up Exercise Event, unless the Top-Up Option has been previously exercised in accordance with the terms and conditions hereof and (D) the date that is ten business days after the Top-Up Notice Date (as defined below), unless the Top-Up Closing shall have previously occurred.
(c) If Parent wishes to exercise the Top-Up Option, Parent shall send to the Company a written notice (a "TOP-UP EXERCISE NOTICE," and the date of receipt of which notice is referred to herein as the "TOP-UP NOTICE DATE"), specifying the place for the closing of the purchase and sale of shares of Company Common Stock pursuant to the Top-Up Option (the "TOP-UP CLOSING") and a date not earlier than one business day nor later than ten business days after the Top-Up Notice Date for the Top-Up Closing. The Company shall, promptly after receipt of the Top-Up Exercise Notice, deliver a written notice to Parent confirming the number of Top-Up Option Shares and the aggregate purchase price therefor.
(d) At the Top-Up Closing, subject to the terms and conditions of this Agreement, (i) the Company shall deliver to Parent a certificate or certificates evidencing the applicable number of Top-Up Option Shares; provided that the obligation of the Company to deliver Top-Up Option Shares upon the exercise of the Top-Up Option Shares.
(b) Provided is subject to the condition that no provision of any applicable Law law or Order regulation and no judgment, injunction, order or decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may of any such exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) Parent shall purchase each Top-Up Option Share from the termination Company for the Offer Consideration. Payment by Parent of this Agreement in accordance with its terms. The aggregate the purchase price payable for the Top-Up Option Shares being purchased may be made, at Parent's option, by Acquisition Sub pursuant delivery of (A) immediately available funds by wire transfer to an account designated by the Company and/or (B) shares of Parent Common Stock.
(e) Upon the delivery by Parent to the Company of the Top-Up Option Exercise Notice, and the tender of the consideration described in Section 1.4(d), Parent shall be determined by multiplying deemed to be the number holder of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase record of the Top-Up Option SharesShares issuable upon that exercise, Parent and Acquisition Sub shall cause to be delivered to notwithstanding that the stock transfer books of the Company the consideration required to shall then be delivered in exchange for the closed or that certificates representing those Top-Up Option Shares being purchased pursuant shall not then be actually delivered to the Top-Up Option, and Parent or the Company shall cause have failed or refused to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause designate the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to bank account described in Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares1.4(d).
(df) Parent shall pay all expenses, and Acquisition Sub understand any and all federal, state and local taxes and other charges, that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale payable in connection with any distribution thereof within the meaning preparation, issuance and delivery of the Securities Act. Any stock certificates under this Section 1.4.
(g) Certificates evidencing Top-Up Option Shares shall delivered hereunder may include any legends required by applicable securities Lawslegally required, including a legend in substantially the following form: THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY BE REOFFERED OR SOLD ONLY IF SO REGISTERED OR IF AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.
Appears in 1 contract
Sources: Merger Agreement (Fotoball Usa Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Parent and Merger Sub an irrevocable option (the “Top-Up Option”)) to purchase, exercisable only upon at a price per Share equal to the terms and conditions set forth in this Section 2.4Offer Price, up to purchase that such number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition and Merger Sub at and any wholly owned Subsidiary of Parent or Merger Sub immediately prior to the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase exercise of the Top-Up Option Shares upon the vestingOption, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless constitutes one Share more than 80% of the conversion or exercise price or other terms and conditions thereof (assuming number of Shares that will be outstanding on a fully diluted basis immediately after the issuance of the Top-Up Option Shares) at a price per share equal to . The Top-Up Option will be exercised by Parent or Merger Sub immediately after the Offer PriceAcceptance Time if following such Acceptance Time, Parent or Merger Sub do not own 80% of the outstanding Shares; provided, however, that the obligation of the Company to deliver Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit upon the exercise of the Top-Up Option is subject to the conditions that (i) no judgment, injunction, order or the delivery decree of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order any Governmental Entity shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereofof such exercise, Acquisition (ii) the issuance of the Top-Up Option Shares will not cause the Company to have more Shares outstanding than are authorized by the Restated Articles of Incorporation of the Company, and (iii) Merger Sub has accepted for payment and paid for all Shares validly tendered in the Offer and not withdrawn. The parties shall cooperate to ensure that the issuance of the Top-Up Option Shares is accomplished consistent with all applicable legal requirements of all Governmental Entities, including compliance with an applicable exemption from registration of the Top-Up Option Shares under the Securities Act.
(b) The Company shall, as soon as practicable following receipt of notice from Parent or Merger Sub, as the case may be, of their intent to exercise of the Top-Up Option, in whole but not in part, at any one time after the Appointment Time notify Parent and prior to the earlier to occur Merger Sub of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interestthen outstanding. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent Shares will take place at a time and Acquisition Sub shall cause on a date to be delivered to specified by Parent or Merger Sub, which shall be no later than one Business Day after the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to exercise of the Top-Up Option, at the offices of K▇▇▇▇▇▇▇ & E▇▇▇▇ LLP, 6▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, unless another time, date or place is specified by Parent or Merger Sub. Parent or Merger Sub, as the case may be, shall pay the Company an amount equal to the Offer Price multiplied by the number of Top-Up Option Shares specified by Parent (the “Top-Up Consideration”), and the Company shall shall, at Parent’s or Merger Sub’s request, cause to be issued to Acquisition Parent or Merger Sub a certificate representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares Consideration may be paid by Merger Sub or Parent by executing and delivering to occur on the same day that Company a promissory note having a principal amount equal to the aggregate cash purchase price for the Top-Up Notice is deemed received by Shares. Any such promissory note shall bear interest at the Company pursuant rate of interest per annum equal to Section 11.2the prime lending rate prevailing from time to time during such period as published in The Wall Street Journal, and if not so consummated shall mature on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 first anniversary of the DGCL date of execution and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance delivery of the Top-Up Option Sharessuch promissory note and may be prepaid without premium or penalty.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Parent and Acquisition Sub an assignable and irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase that from the Company the number of authorized and unissued newly-issued shares of Company Shares (the “Top-Up Option Shares”) Common Stock equal to the lowest lesser of (i) the number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase exercise of the Top-Up Option Shares upon Option, constitutes 91% of the vesting, conversion or exercise number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to the Top-Up Option or (ii) the aggregate number of shares of Company Common Stock that the Company is authorized to issue under its certificate of incorporation but that are not issued and outstanding options, warrants, convertible (and are not subscribed for or exchangeable securities and similar rights, regardless otherwise committed to be issued) at the time of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option SharesOption.
(b) at a price per share equal to the Offer Price; provided, however, that the The Top-Up Option shall not may be exercisable unless immediately exercised by Parent or Acquisition Sub, in whole or in part, at any time on or after such exercise and the issuance of Company Shares pursuant theretoAcceptance Date, Acquisition Sub would own more than 90% of provided that the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock beneficially owned by Parent or (B) if any applicable Law or any applicable Order shall prohibit Acquisition Sub immediately prior to the time of exercise of the Top-Up Option or the delivery constitutes at least 70% of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise number of the Top-Up Option or the delivery shares of the Top-Up Option Shares Company Common Stock then outstanding. Except as otherwise provided in respect thereofSection 1.4(c), Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) if the Effective Time and (ii) All-Cash Election shall not have been made, the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the shares of Company Common Stock being purchased by Parent or Acquisition Sub pursuant to the Top-Up Option Shares shall consist of a combination of a cash payment and shares of Parent Common Stock, and (ii) if the All-Cash Election shall have been made, the aggregate purchase price payable for the shares of Company Common Stock being purchased by Parent or Acquisition Sub pursuant to the Top-Up Option shall be payable in cash. Except as otherwise provided in Section 1.4(c), if the All-Cash Election shall not have been made, the aggregate amount of cash payable to the Company in respect of the shares of Company Common Stock being purchased by Parent or Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such shares of Company Common Stock by the Exchange Offer Cash Amount, and the aggregate number of shares of Parent Common Stock deliverable to the Company for the shares of Company Common Stock being purchased by Parent or Acquisition Sub pursuant to the Top-Up Option Shares shall be determined by multiplying the number of such shares of Company Common Stock by the Offer PriceApplicable Fraction, without interestand rounding up to the next whole share. Such purchase price Except as otherwise provided in Section 1.4(c), if the All-Cash Election shall have been made, the aggregate amount of cash payable to the Company in respect of the shares of Company Common Stock being purchased by Parent or Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such shares of Company Common Stock by the All-Cash Dollar Amount.
(c) Notwithstanding anything to the contrary contained in Section 1.4(b), in lieu of paying cash (or paying cash and delivering shares of Parent Common Stock) to the Company as consideration for the shares of Company Common Stock being purchased pursuant to the Top-Up Option as described in Section 1.4(b), Parent or Acquisition Sub may be paid by Acquisition Sub, at its election, either (Ai) entirely pay to the Company in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares such shares of Company Common Stock, and by executing (ii) execute and delivering deliver to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to: (A) the amount determined by multiplying (1) the number of shares of Company Common Stock being purchased by Parent or Acquisition Sub pursuant to the remainder Top-Up Option by (2) the All-Cash Dollar Amount (whether or not the All-Cash Election shall have been made); minus (B) the dollar amount of such purchase pricethe cash payment made pursuant to clause “(i)” of this sentence. Any such promissory note shall bear interest at a the rate of 3% per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis and shall mature on the outstanding principal amount first anniversary of such promissory note from the date such promissory note is originally issued until the date of payment in full execution and delivery of such promissory note, and may be prepaid without premium or penalty.
(cd) In the event Parent or Acquisition Sub wishes to exercise the Top-Up Option, Parent or Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares shares of Company Common Stock that Parent or Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Parent or Acquisition Sub intends to pay the applicable purchase exercise price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares shares of Company Common Stock by Parent or Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Sharessuch shares of Company Common Stock, Parent and or Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Optionsuch shares, and the Company shall cause to be issued to Parent or Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Sharesshares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 1 contract
Sources: Merger Agreement (Synopsys Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub an irrevocable option (the “"Top-Up Option”"), exercisable only upon on the terms and conditions set forth in this Section 2.41.03, to purchase that number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer PricePrice paid in the Offer that number of newly issued shares of Company Common Stock (the "Top-Up Shares") equal to the lowest number of shares of Company Common Stock that, when added to the number of shares of Company Common Stock directly or indirectly owned by Parent at the time of exercise of the Top-Up Option shall constitute one share more than 90% of the shares of Company Common Stock outstanding immediately after the issuance of the Top-Up Shares; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance for a number of shares of Company Shares pursuant thereto, Acquisition Sub would own more than 90% Common Stock in excess of the shares of Company Shares then outstanding (assuming Common Stock authorized and unissued at the issuance time of exercise of the Top-Up Option Shares); and provided furtherOption. Provided that no applicable law, that in no event rule, regulation, order, injunction or other legal impediment shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit make the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares in respect thereofpursuant thereto illegal, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, Option shall be exercisable at any one time after following the Appointment Time Offer Closing and prior to the earlier to occur of (ia) the Effective Time and (iib) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for Sub may only exercise the Top-Up Option Shares being purchased by Acquisition Sub pursuant to on a single occasion after the expiration of the Offer and in any case only if, as a result of and immediately following the issuance of the Top-Up Option shall be determined by multiplying Shares, Parent will directly or indirectly hold one share more than 90% of the number shares of such Company Common Stock then outstanding (after giving effect to the issuance of the Top-Up Option Shares by Shares).
(b) The parties shall cooperate to ensure that the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value issuance and delivery of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion comply with all applicable Law, including compliance with an applicable exemption from registration of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on Top-Up Shares under the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) Securities Act. In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to give the Company a notice (the “Top-Up Notice”) setting forth one business day prior written notice, specifying (i) the number of shares of the Company Common Stock directly or indirectly owned by Parent at the time of such notice and (ii) a place and a time for the closing of such purchase. The Company shall, as soon as practicable following receipt of such notice, deliver written notice to Sub specifying, based on the information provided by Sub in its notice, the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition the purchase price owed by Sub shall cause to be delivered to the Company the consideration required to therefor shall be delivered in exchange for the Top-Up Option Shares being purchased pursuant paid to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing (i) in an amount of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, cash equal to the extent possible, on the same day as) the issuance aggregate par value of the Top-Up Option Shares.
, by wire transfer or cashier's check, and (dii) by issuance by Sub to the Company of a promissory note in the form of Exhibit C with a principal amount equal to the remaining exercise price of the Top-Up Shares. Parent and Acquisition Sub understand that the shares of Company Shares Common Stock which Acquisition Sub may will acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Accredited Investor within the meaning of Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are not being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an irrevocable option (the “"Top-Up Option”"), exercisable only upon on the terms and conditions set forth in this Section 2.41.4, to purchase purchase, at a price per Share equal to the Offer Price paid in the Offer, that number of authorized and unissued Company newly issued Shares (the “"Top-Up Option Shares”") equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub and its Subsidiaries at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase exercise of the Top-Up Option Shares upon the vestingOption, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless shall constitute one Share more than 80% of the conversion or exercise price or other terms and conditions thereof Fully Diluted Shares then outstanding (assuming after giving effect to the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price); provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a to the extent the number of Company Shares in excess issuable upon exercise of the Top-Up Option would exceed the Company’s then 's authorized and unissued shares Shares and Shares held in the treasury at the time of exercise of the Top-Up Option (assuming all Fully Diluted Shares were issued and outstanding). Upon Parent's request, the Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit cause its transfer agent to certify in writing to Parent the number of Shares issued and outstanding as of immediately prior to the exercise of the Top-Up Option or and after giving effect to the delivery issuance of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the . The Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Optionshall be exercisable only once, in whole but not in part, at any one time after following the Appointment Time Offer Closing and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(cb) In the event Acquisition Merger Sub wishes to exercise the Top-Up Option, Acquisition Merger Sub shall deliver to give the Company a notice (the “Top-Up Notice”) setting forth written notice, specifying (i) the number of Shares owned by Parent and its Subsidiaries at the time of such notice (after giving effect to the Offer Closing) and (ii) a place and a time for the closing of such purchase. The Company shall, promptly following receipt of such notice, deliver written notice to Merger Sub specifying, based on the information provided by Merger Sub in its notice, the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares be purchased by Acquisition Sub is to take placeMerger Sub. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition the aggregate purchase price owed by Merger Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased shall be paid to the Company at Parent's election, either (i) entirely in cash, by wire transfer of same-day funds or (ii) by issuing to the Company an unsecured, non-negotiable, non-transferable promissory note having a principal amount equal to the aggregate purchase price pursuant to the Top-Up Option. Such promissory note (i) shall bear interest at the applicable short-term federal rate per annum for U.S. income tax purposes (as periodically set by the U.S. Internal Revenue Service "IRS"), payable in arrears at maturity, (ii) shall mature on the first anniversary of the date of execution of the promissory note, (iii) shall be full recourse to Parent and Merger Sub, (iv) may be prepaid, at any time, in whole or in part, without premium or penalty, and the (v) shall have no other material terms. The Company shall cause to be issued to Acquisition Merger Sub a certificate Certificate representing such the Top-Up Option Shares or, if the Company does not then have certificated shares, the applicable number of Uncertificated Shares. Such Certificates or Uncertificated Shares may include any legends that are required by federal or state securities Laws. The parties hereto Parties agree to use their reasonable best efforts to cause the closing of the issuance and purchase of such the Top-Up Option Shares to occur on the same day that Merger Sub delivers to the Company its notice of exercise of the Top-Up Notice is deemed received by the Company pursuant to Section 11.2Option and, and if not so consummated on such dayin any event, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the .
(c) Parent and Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Sub acknowledge that no Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire issued upon exercise of the Top-Up Option will not be registered under the Securities Act and that all such Shares will be issued in reliance upon an applicable exemption thereunder for transactions not involving a public offeringfrom registration under the Securities Act. Each of Parent and Acquisition Merger Sub represent hereby represents and warrant warrants to the Company that Acquisition Merger Sub is, or and will be upon the purchase of the Top-Up Option Shares, an “"accredited investor,” " (as defined in Rule 501 of Regulation D promulgated under the Securities Act). Acquisition Merger Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Merger Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. ).
(d) Any certificates evidencing dilutive impact on the value of the Shares as a result of the issuance of the Top-Up Shares or the payment by Merger Sub to the Company of consideration for the Top-Up Shares, will not be taken into account in any determination of the fair value of any Dissenting Shares pursuant to Subchapter 15D of the PBCL as contemplated by Section 2.6(a).
(e) Without the prior written consent of the Company, the right to exercise the Top-Up Option Shares shall include granted pursuant to this Agreement may not be assigned by Merger Sub other than to Parent or a direct or indirect wholly-owned Subsidiary of Parent, including by operation of law or otherwise, and any legends required by applicable securities Lawsattempted assignment in violation of this Section 1.4(e) will be null and void.
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Parent and Merger Sub an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.42.2, to purchase that from the Company, at a price per share equal to the Offer Price, the number of authorized and unissued Company Shares newly-issued shares of Common Stock (the “Top-Up Option Shares”) equal to the lowest number of Company Shares shares of Common Stock that, when added to the number of Company Shares beneficially shares of Common Stock owned by Parent and/or Acquisition and Merger Sub at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares constitutes one share more than ninety percent (90% %) of the Company Shares outstanding, assuming number of shares of Common Stock issued and outstanding immediately after the issuance of all shares of Common Stock subject to the Top-Up Option; provided, however, that the Top-Up Option may not be exercised to the extent that the number of Top-Up Option Shares exceeds that number of shares of Common Stock authorized and unissued (treating shares owned by the Company Shares that are issuable within ten Business Days after as treasury stock as unissued) and not reserved for issuance at the scheduled closing time of exercise of the purchase Top-Up Option with respect to any RSUs then outstanding or any In-the-Money Options. The obligation of the Company to issue and deliver the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible the Top-Up Option is subject to the condition that no applicable Law shall be in effect that has the effect of enjoining or exchangeable securities and similar rights, regardless otherwise prohibiting the exercise of the conversion Top-Up Option or exercise price or other terms and conditions thereof (assuming the issuance and delivery of the Top-Up Option Shares.
(b) The Top-Up Option may be exercised by Parent or Merger Sub only once at a price per share equal any time following the Offer Closing and prior to the Offer Priceearlier to occur of the Effective Time and the termination of this Agreement pursuant to Section 9.1 hereof; provided, however, that the Top-Up Option shall not be exercisable unless unless, immediately after such exercise and the issuance of Company Shares shares of Common Stock pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the TopShort-Up Option Shares); and provided further, that in no event Form Threshold shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termsreached. The aggregate purchase price payable for the Top-Up Option Shares shares of Common Stock being purchased by Acquisition Parent or Merger Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Parent or Merger Sub, at its their election, either (Ai) entirely in cash (by wire transfer of same-day funds) or (Bii) by (x) paying in cash in (by wire transfer of same-day funds) an amount equal to not less than the aggregate par value of the purchased Top-Up Option Shares and by (y) Parent, executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder balance of such purchase price, less the amount paid in cash pursuant to the preceding clause (x), or any combination of the foregoing. Any such promissory note shall bear interest at a rate per annum equal to include the prime lending rate prevailing during the period in which any portion of following (and no other) material terms: (i) the principal amount of such and accrued interest under the promissory note remains outstandingshall be payable upon the demand of the Company, as published in The Wall Street Journal, calculated on a daily basis on (ii) the outstanding unpaid principal amount of such the promissory note from will accrue simple interest at the date such per annum rate of three percent (3.0%), (iii) the promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid in whole or in part at any time and from time to time, without premium or penaltypenalty or prior notice (iv) the promissory note shall be full recourse to Parent and Merger Sub and (v) the unpaid principal amount and accrued interest under the promissory note shall immediately become due and payable in the event that (A) Parent or Merger Sub fails to make any payment of interest on the promissory note as provided therein and such failure continues for a period of thirty (30) days or (B) Parent or Merger Sub files or has filed against it any petition under any bankruptcy or insolvency law or makes a general assignment for the benefit of creditors.
(c) In the event Acquisition Parent or Merger Sub wishes to exercise exercises the Top-Up Option, Acquisition Parent or Merger Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares shares of Common Stock that Acquisition Merger Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Parent or Merger Sub intends to pay the applicable purchase exercise price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares shares of Common Stock by Acquisition Merger Sub is to take place. At the closing of the purchase of the Top-Up Option Sharessuch shares of Common Stock, Parent and Acquisition or Merger Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Optionsuch shares, and the Company shall cause to be issued to Acquisition Merger Sub a certificate representing such shares (or, if the Company does not then issue shares of Common Stock in certificated form, the applicable number of shares of Common Stock in non-certificated book-entry form).
(d) In determining the fair value of any Dissenting Shares pursuant to Section 262 of the DGCL as contemplated by Section 4.3 herein, none of Parent, Merger Sub, the Company or the Surviving Corporation shall take into account the Top-Up Option, the Top-Up Option Shares or any promissory note issued to pay any portion of the purchase price for such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an irrevocable option (the “Top-Up Option”)) to purchase, exercisable only upon at a price per share equal to the terms and conditions set forth in this Section 2.4Common Per Share Amount, to purchase that a number of authorized and unissued Company Common Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Common Shares beneficially owned by Parent and/or Acquisition or Merger Sub or any wholly-owned Subsidiary of Parent or Merger Sub at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares constitutes one Common Share more than 90% of the Company Shares outstanding, assuming the issuance number of all Company Common Shares that are issuable within ten Business Days will be issued and outstanding immediately after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) . The Top-Up Option shall be exercised by Merger Sub, in whole or in part, at a price per share equal any time on or after the Expiration Date and on or prior to the Offer Pricefifth Business Day after the later of (x) the Expiration Date or (y) the expiration of any subsequent offering period (the date on which the Top-Up Option is exercised, the “Top-Up Option Exercise Date”); provided, however, that the obligation of the Company to deliver Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit upon the exercise of the Top-Up Option or is subject to the delivery conditions that (i) neither any provision of the Top-Up Option Shares.
(b) Provided that no any applicable Law nor any judgment, injunction, order or Order decree of any Governmental Entity shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereofof such exercise, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination issuance of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying would not require approval of the Company’s stockholders under applicable Law, (iii) upon exercise of the Top-Up Option, the number of such Common Shares owned by Parent or Merger Sub or any wholly-owned Subsidiary of Parent or Merger Sub will constitute one Common Share more than 90% of the number of Common Shares that will be issued and outstanding immediately after the issuance of the Top-Up Option Shares, (iv) Merger Sub has accepted for payment and paid for all Common Shares validly tendered in the Offer and not withdrawn and (v) this Agreement has not been terminated in accordance with Section 6.1; and provided, further, that the aggregate number of Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to not exceed the aggregate par value number of authorized but unissued Common Shares as of the purchased Top-Up Option Exercise Date. The parties shall cooperate to ensure that the issuance of the Top-Up Option Shares is effected consistent with all applicable Laws, including compliance with an applicable exemption from registration of the Top-Up Option Shares under the Securities Act.
(b) Upon the exercise of the Top-Up Option in accordance with Section 1.4(a), Merger Sub shall give the Company a written notice of such exercise, which notice shall set forth (i) the number of Common Shares that are expected to be owned by Parent, Merger Sub or any wholly-owned Subsidiary of Parent or Merger Sub immediately preceding the purchase of the Top-Up Option Shares and by executing (ii) a place and delivering to time for the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion closing of the principal amount purchase of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up OptionOption Shares. The Company shall, Acquisition as soon as practicable following receipt of such notice, notify Parent and Merger Sub shall deliver to of the Company a notice (the “Top-Up Notice”) setting forth (i) number of Common Shares then issued and outstanding and the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner be purchased in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of connection with such Top-Up Option Shares by Acquisition Sub is to take placeexercise. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Merger Sub shall cause to be delivered to pay the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionShares, and the Company shall cause to be issued to Acquisition Parent or Merger Sub a certificate representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause purchase price for the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, attributable to the extent possible, on the same day as) the issuance par value of each of the Top-Up Option Shares.
(d) Parent and Acquisition Shares shall be payable by Merger Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub isin cash by wire transfer of immediately available funds to an account designated by the Company, or will be upon and the purchase balance of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and aggregate purchase price payable for the Top-Up Option Shares may be paid by Merger Sub, at its option, either in cash by wire transfer of immediately available funds to be acquired upon exercise an account designated by the Company or by executing and delivering to the Company a promissory note having a principal amount equal to the balance of the aggregate purchase price of the Top-Up Option are being Shares and will be acquired by Acquisition Sub for bearing interest at the purpose rate of investment and not with a view interest per annum equal to or for resale in connection with any distribution thereof within the meaning Interest Rate. Any such promissory note shall mature on the first anniversary of the Securities Actdate of execution and delivery of such promissory note and may be prepaid without premium or penalty, provided that it is understood that such promissory note shall be canceled upon the Closing (as defined below). Any certificates evidencing Merger Sub hereby represents and warrants to the Company that it will not offer to sell or otherwise dispose of any Top-Up Option Shares shall include any legends required acquired by applicable securities Lawsit pursuant to this Top-Up Option in violation of the Securities Act or prior to consummation of the Merger.
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an irrevocable option (the “Top-Up Option”), ) exercisable only upon in accordance with the terms and conditions set forth in this Section 2.41.3, to purchase that number of authorized and unissued newly issued shares (but not less than that number) of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock collectively owned, directly or indirectly, by Parent, Merger Sub and any wholly owned by subsidiary of Parent and/or Acquisition Sub at the time of immediately prior to such exercise, shall constitute 100 one share of Company Shares Common Stock more than 9080% of the total shares of Company Shares outstanding, assuming Common Stock outstanding immediately after the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof on a fully diluted basis (assuming the issuance of the Top-Up Option SharesShares and the exercise of all options and other rights to purchase shares of Company Common Stock regardless of exercise price, vesting schedule or other terms or conditions thereof) at a purchase price per share Top-Up Option Share equal to the Offer Price; providedPer Share Amount. Notwithstanding the foregoing provisions of this Section 1.3(a), however, that the Top-Up Option shall not be exercisable unless for shares of Company Common Stock in excess of the number of shares of Company Common Stock authorized and unissued or held in the treasury of the Company at the time of the exercise of the Top-Up Option (giving effect to the shares of Company Common Stock issuable pursuant to all then-outstanding Company Stock Options and any other rights to acquire shares of Company Common Stock as if such shares were outstanding).
(b) The Top-Up Option shall not be exercisable unless, immediately after such exercise and the issuance of shares of Company Shares Common Stock pursuant thereto, Acquisition after accounting for the limitations set forth herein, Parent and Merger Sub or their affiliates would own hold one share of Company Common Stock more than 9080% of the Company Shares then outstanding shares of Company Common Stock on a fully diluted basis (assuming the issuance of the Top-Top Up Option Shares); Shares and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number exercise of Company Shares in excess of the Company’s then authorized all options and unissued other rights to purchase shares of Company Common Stock regardless of exercise price, vesting schedule or (B) if any applicable Law other terms or any applicable Order shall prohibit the exercise of the Top-conditions thereof). The Top Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares may be exercised in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in partwhole, at any one time after following the Appointment Time Acceptance Date and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition If Merger Sub wishes to exercise the Top-Up Option, Acquisition Merger Sub shall deliver send to the Company a written notice (the a “Top-Up Exercise Notice”) setting forth specifying (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At for the closing of the purchase of the Top-Up Option SharesShares (the “Top-Up Closing”) and a date for the Top-Up Closing and (ii) the number of shares of the Company Common Stock owned by Parent, Merger Sub and their affiliates at the time of such notice (giving effect to the closing of the Offer). Such notice shall also include an undertaking signed by Parent and Acquisition Merger Sub that, as promptly as practicable following such exercise of the Top-Up Option, Merger Sub shall, and Parent shall use their respective reasonable best efforts to cause Merger Sub to, consummate the Merger in accordance with the terms hereof. The Company shall, as soon as practicable after receipt of the Top-Up Exercise Notice, deliver a written notice to Merger Sub confirming (y) the number of shares of Company Common Stock then outstanding and then outstanding on a fully diluted basis (assuming the issuance of the Top-Up Option Shares and the exercise of all options and other rights to purchase shares of Company Common Stock regardless of exercise price, vesting schedule or other terms or conditions thereof), and (z) the number of Top-Up Option Shares issuable under the Top-Up Option and the aggregate purchase price therefor. In addition, the Company shall use reasonable best efforts to cause its transfer agent to certify in writing to Merger Sub the number of shares of Company Common Stock issued and outstanding as of immediately prior to the exercise of the Top-Up Option and after giving effect to the issuance of the Top-Up Option Shares.
(d) At the Top-Up Closing, subject to the terms and conditions of this Agreement, (i) the Company shall deliver to Merger Sub a certificate or certificates evidencing the applicable number of Top-Up Option Shares and (ii) Merger Sub shall cause to be delivered to purchase each Top-Up Option Share from the Company at the consideration required to be delivered in exchange Per Share Amount. Payment of the purchase price for the Top-Up Option Shares being purchased pursuant may be made, at Merger Sub’s option, by delivery of (x) immediately available funds by wire transfer to an account designated by the Company or (y) a promissory note, or any combination thereof. Any such promissory note shall be full recourse to Parent and Merger Sub, bear interest at the applicable federal rate as determined for U.S. income tax purposes, shall mature and principal and all accrued interest shall be payable in full on or prior to the first anniversary of the date of execution and delivery of such promissory note, may be prepaid at any time, in whole or in part, without premium or penalty and shall have no other material terms. The parties shall cooperate to ensure that the issuance of the Top-Up OptionOption Shares is accomplished consistent with all applicable legal requirements, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Sharesincluding all federal securities laws. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such the Top-Up Option Shares to occur on the same day that the notice regarding the exercise of the Top-Up Notice Option is deemed received by the Company pursuant to Section 11.2and, and if not so consummated on such dayin any event, as promptly thereafter as possible. The parties further agree .
(e) Upon the delivery by Merger Sub to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 Company of the DGCL Top-Up Exercise Notice and as contemplated by the purchase price described in Section 8.3(c) as close in time as possible to (including1.3(d), Merger Sub shall, to the extent possiblepermitted by Applicable Law, on be deemed to be the same day as) the issuance holder of record of the Top-Up Option SharesShares issuable upon that exercise, notwithstanding that certificates representing those Top-Up Option Shares shall not then be actually delivered to Merger Sub or the Company shall have failed or refused to designate the account described in Section 1.3(d).
(df) Certificates evidencing Top-Up Option Shares delivered hereunder may include legends legally required by applicable securities laws. Parent and Acquisition Merger Sub understand acknowledge that the Company Top-Up Option Shares which Acquisition that Merger Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act of 1933, as amended (together with the rules and regulations thereunder, the “Securities Act”), and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Acquisition Merger Sub represent hereby represents and warrant warrants to the Company that Acquisition Sub it is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees , and that the any Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Purchaser an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and subject to the conditions set forth in this Section 2.4herein, to purchase with a promissory note, bearing simple interest at 6% per annum, and due 30 days after the Top-Up Closing (a “Promissory Note”), at a price per share equal to the Offer Price, that number of authorized and unissued Company Shares shares of Common Stock (the “Top-Up Option Shares”) equal to the lowest number of Company Shares shares of Common Stock that, when added to the number of Company Shares beneficially shares of Common Stock owned by Parent and/or Acquisition Sub Parent, Purchaser and their respective Subsidiaries at the time of such exercise, shall constitute 100 Company Shares 1,000 shares more than 90% of the Company Shares outstanding, assuming the issuance shares of all Company Shares that are issuable within ten Business Days Common Stock then outstanding (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price); provided, however, that the Top-Up Option shall not be exercisable unless unless, immediately after such exercise and the issuance of Company Shares shares of Common Stock pursuant thereto, Acquisition Sub the Short Form Threshold would own more than 90% of the Company Shares then outstanding be reached (assuming the issuance of the Top-Up Option Shares); and provided provided, further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares shares of Common stock in excess of the Company’s then total authorized and unissued shares of Company Common Stock (including shares that are otherwise subscribed to or committed to be issued). The obligation of the Company to issue shares will be subject to compliance with all applicable regulatory and stock exchange requirements.
(Bb) if any Provided that no applicable Law or any applicable Order other legal impediment shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares in respect thereofpursuant thereto, Acquisition Sub or otherwise make such exercise or issuance illegal, Purchaser may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Acceptance Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltySection 7.1.
(c) In the event Acquisition Sub Purchaser wishes to exercise the Top-Up Option, Acquisition Sub Purchaser shall deliver send to the Company a written notice (a “Top-Up Exercise Notice,” the date of which notice is referred to herein as the “Top-Up Notice Date”) specifying the denominations of the certificate or certificates evidencing the Top-Up Option Shares which the Purchaser wishes to receive, and the place, time and date (which shall be no earlier than one business day after the Top-Up Notice Date and no later than seven business days after the Top-Up Notice Date) for the closing of the purchase and sale pursuant to the Top-Up Option (the “Top-Up Closing”). The Company shall, promptly after receipt of the Top-Up Exercise Notice”) setting forth (i) , deliver a written notice to the Purchaser confirming the number of Top-Up Option Shares that Acquisition Sub intends to and the aggregate purchase pursuant to price therefor (the “Top-Up Notice Receipt”). At the Top-Up OptionClosing, (ii) the manner in which Acquisition Sub intends to Purchaser shall pay the applicable purchase Company the aggregate price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is required to take place. At the closing of the purchase of be paid for the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered by delivery of a Promissory Note in an aggregate principal amount equal to the Company the consideration required to be delivered amount specified in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionNotice Receipt, and the Company shall cause to be issued to Acquisition Sub Purchaser a certificate or certificates representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day Such certificates may include any legends that the Top-Up Notice is deemed received are required by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Sharesfederal or state securities laws.
(d) Parent and Acquisition Sub understand Purchaser acknowledge that the Company Top-Up Option Shares which Acquisition Sub that Purchaser may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”) and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub Purchaser represent and warrant to the Company that Acquisition Sub Purchaser is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub Purchaser agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub Purchaser for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof within the meaning in violation of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Parent an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase from the Company up to that number of authorized and unissued newly issued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or Acquisition Sub or any of its Subsidiaries at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase exercise of the Top-Up Option Shares upon Option, would constitute one (1) share more than ninety percent (90%) of the vestingshares of Company Common Stock then outstanding on a fully-diluted basis (on a “fully-diluted basis” meaning the number of shares of Company Common Stock then issued and outstanding plus all shares of Company Common Stock which the Company may be required to issue as of such date pursuant to options (whether or not then vested or exercisable), conversion warrants (only to the extent then exercisable or exercise exercisable as a result of all outstanding optionsthe Transactions), warrantsrights, convertible or exchangeable securities and (only to the extent then convertible or exchangeable into shares of Company Common Stock) or similar rightsobligations then outstanding, regardless of the conversion or exercise price or other terms and conditions thereof (assuming after giving effect to the issuance of the Top-Up Option Shares) at a price (the “Short Form Threshold”) for consideration per share Top-Up Option Share equal to the Offer Price. Parent may assign the Top-Up Option and its rights and obligations pursuant to this Section 1.3, in its sole discretion, to any of its Subsidiaries, including Merger Sub.
(b) The Top-Up Option may be exercised in whole or in part; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and to the issuance extent (i) the number of shares of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of Common Stock subject to the Top-Up Option Shares); and provided further, that in no event shall exceeds the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or available for issuance, (Bii) if any applicable Law or any applicable Order Restraint shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, (iii) immediately after such exercise and issuance of shares of Company Common Stock pursuant thereto, the Short Form Threshold would not be reached, or (iv) Merger Sub has not accepted for payment all shares of Company Common Stock validly tendered in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (Aor during any subsequent offering period) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltynot validly withdrawn.
(c) In the event Acquisition Sub that Parent wishes to exercise the Top-Up Option, Acquisition Sub Parent shall deliver to give the Company written notice specifying the number of shares of Company Common Stock that are or will be owned by Parent or any of its Subsidiaries immediately following the Acceptance Time and specifying a place and a time for the closing of the purchase. The Company shall, as soon as practicable following receipt of such notice, deliver written notice (the “Top-Up Notice”) setting forth (i) to Parent specifying the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, (i) Parent and Acquisition Sub shall pay (or cause to be delivered paid) to the Company an amount equal to the consideration required to be delivered in exchange for product of (x) the Top-Up Option Shares being number of shares of Company Common Stock purchased pursuant to the Top-Up OptionOption and (y) the Offer Price, which amount may be paid, at the election of Parent, either in cash (by wire transfer or cashier’s check) or by delivery of a promissory note, and (ii) the Company shall cause the Top-Up Option Shares to be issued to Acquisition Sub a certificate representing such TopParent (or any of its Subsidiaries designated by Parent), represented by either certificates or book-Up Option Sharesentry shares, at the sole option of Parent. The parties hereto agree Prior to use their reasonable best efforts to cause the closing of the purchase of such the Top-Up Option Shares Shares, upon Parent’s request, the Company shall cause its transfer agent to occur on certify in writing to Parent the same day that number of shares of Company Common Stock issued and outstanding as of immediately prior to the exercise of the Top-Up Notice is deemed received by the Company pursuant Option and after giving effect to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand acknowledges that the Company Top-Up Option Shares which Acquisition Sub Parent (or any of its Subsidiaries) may acquire upon exercise of the Top-Up Option will shall not be registered under the U.S. Securities Act of 1933, as amended (including its rules and will regulations, the “Securities Act”), and shall be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option Option, and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option Option, if any, are being and will shall be acquired by Acquisition Sub Parent (or any of its Subsidiaries) for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 1 contract
Sources: Merger Agreement (Chattem Inc)
Top-Up Option. (a) The Subject to Section 1.4(b) and Section 1.4(c) hereof, the Company hereby irrevocably grants to Acquisition Parent and Merger Sub an option irrevocable and non-transferable option, for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, to purchase that from the Company such number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock owned by Merger Sub and/or Parent and/or Acquisition Sub at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 constitutes one share of Company Shares Common Stock more than 90% of the outstanding shares of Company Shares outstandingCommon Stock (calculated on a fully diluted basis), assuming and giving effect to the issuance of all shares of Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of Common Stock subject to the Top-Up Option Shares upon the vesting, conversion or exercise (such shares of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of Company Common Stock subject to the Top-Up Option being hereinafter referred to as the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Parent or Merger Sub, in whole and not in part, only once, at a price per share equal to any time during the Offer Price20 Business Day period next following the Acceptance Date, or if the Subsequent Offering Period is made available, during the 20 Business Day period next following the expiration date of the Subsequent Offering Period; provided, however, that notwithstanding anything in this Agreement to the contrary the Top-Up Option shall not be exercisable unless immediately after such exercise and to the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable extent (A) for a the number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued shares of Company Common Stock, (B) any provision of applicable Law or any judgment, injunction, order or decree of any Governmental Authority shall prohibit such exercise, or require any action, consent, approval, authorization or permit of, action by, or filing with or notification to, any Governmental Authority in connection with such exercise or the delivery of the Top-Up Option Shares.
Shares in respect of such exercise, if such action, consent, approval, authorization or permit, action, filing or notification has not theretofore been obtained or made, (bC) Provided that no applicable Law or Order shall prohibit the issuance of the shares of Company Common Stock upon exercise of the Top-Up Option would require approval of the Company’s shareholders under Nasdaq rules, or (D) the delivery conditions set forth in Sections 7.1(b) and (c) are not satisfied as of the time of the issuance of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termsShares. The aggregate purchase price payable for the Top-Up Option Shares shares of Company Common Stock being purchased by Acquisition Parent or Merger Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such shares then-subject to the Top-Up Option Shares by the Offer Price, without interest. Such purchase price may shall be paid by Acquisition Sub, at its election, either (A) entirely Parent or Merger Sub by paying in cash or (B) in cash in an amount equal to the aggregate par value of such shares which shall be allocated to the purchased TopCompany’s stated (or “paid-Up Option Shares in”) capital account and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder balance of such purchase priceprice which balance shall be allocated to the Company’s “additional capital” account. Any such Such promissory note shall bear interest at a rate per annum equal to at the prime lending rate prevailing during the period as announced by Citibank, N.A. and in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated effect on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until made and shall mature and become due and payable on the date first Business Day next following the Effective Time of payment in full of such promissory note, the Merger and may be prepaid without premium or penalty.
(c) In the event Acquisition Parent or Merger Sub wishes elects, subject to the provisions of Section 1.4(b) to exercise the Top-Up Option, Acquisition Parent or Merger Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) its election to so exercise and purchase the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant then-subject to the Top-Up Option, and (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the simultaneous exercise and purchase of such Top-Up Option Shares by Acquisition Parent or Merger Sub is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Sub that in addition to the provisions of Section 1.4(b), it shall be a condition to the exercise of the Top-Up Option that, simultaneously with such exercise of the Top-Up Option and the issuance of the Top-Up Shares, Merger Sub shall, and Parent shall cause Merger Sub to, simultaneously consummate the Merger in accordance with Section 253 of the DGCL as contemplated by Section 6.14 and file with the SEC a notice of termination of the Company’s Exchange Act reporting status on Form 15. At the closing of the simultaneous exercise and purchase of the Top-Up Option Shares, Parent and Acquisition or Merger Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to and consummation of the Top-Up OptionMerger, and the Company shall cause to be issued to Acquisition Parent or Merger Sub (as the case may be) a certificate representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause (i) the exercise of the Top-Up Option, (ii) the issuance and closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2Shares, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause (iii) the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible 6.14 to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Sharesoccur simultaneously.
(d) Parent and Acquisition Merger Sub understand hereby acknowledge and agree that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option Shares will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Acquisition Merger Sub represent represents, warrants and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option is being, and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be be, acquired by Acquisition Parent or Merger Sub for the purpose of investment and not with a view to or for resale in connection with any public resale or distribution thereof within the meaning in violation of the Securities Act. Any certificates evidencing Top-Up Option Shares shall may include any legends required by applicable Law, U.S. federal securities Lawslaws. Until the earlier to occur of the Effective Time and the termination of this Agreement, the Company shall reserve for issuance the maximum number of shares issuable under the Top-Up Option.
Appears in 1 contract
Sources: Merger Agreement (Natrol Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub an irrevocable option (the “Top-Up Option”), exercisable only upon on the terms and conditions set forth in this Section 2.42.4 following the Acceptance Time (which, for clarity purposes, requires the satisfaction or waiver (subject to the limitations in the proviso in Section 2.1(b)) of the Tender Offer Conditions), to purchase at a price per share equal to the Offer Price that number of authorized newly issued, fully paid and unissued Company Shares nonassessable shares of Class A Common Stock (the “Top-Up Option Shares”) equal to the lowest number of Company Shares shares of Class A Common Stock that, when added to the number of Company Shares beneficially shares of Class A Common Stock directly or indirectly owned by Parent and/or Acquisition Purchaser and Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase exercise of the Top-Up Option Shares upon the vestingOption, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless shall constitute one share more than ninety percent (90%) of the conversion or exercise price or other terms and conditions thereof (assuming shares of Class A Common Stock outstanding immediately after the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, provided that the Top-Up Option shall may not be exercised to the extent that the number of Top-Up Option Shares needed to satisfy the ninety percent (90%) threshold exceeds that number of shares of Class A Common Stock authorized and unissued (treating any shares of Class A Common Stock owned by the Company as treasury stock as unissued) and not reserved for issuance at the time of exercise of the Top-Up Option. The Top-Up Option shall be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant theretoonly once, Acquisition Sub would own more than 90% in whole but not in part. The obligation of the Company to issue and deliver the Top-Up Option Shares then outstanding (assuming upon the issuance exercise of the Top-Up Option Shares); and provided further, is subject to the condition that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law shall be in effect that has the effect of enjoining or any applicable Order shall prohibit otherwise prohibiting the exercise of the Top-Up Option or the issuance and delivery of the Top-Up Option Shares.
(b) Provided The parties shall cooperate to ensure that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the issuance and delivery of the Top-Up Option Shares complies with all applicable Laws, including compliance with an applicable exemption from registration of the Top-Up Option Shares under the Securities Act. If but only if (A) all of the Tender Offer Conditions have been satisfied or waived (subject to the limitations in respect thereofthe proviso in Section 2.1(b)) other than the Threshold Condition, Acquisition Sub may and (B) at the time of the exercise of the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased when added to the number of shares Class A Common Stock directly owned by Acquisition the Purchaser Group, including those Shares of Class A Common Stock validly tendered and not withdrawn in the Offer as of immediately prior to the Expiration Date, would constitute no less than ninety percent (90%) of the number of shares of Class A Common Stock outstanding on such date, then Sub pursuant shall be deemed to have exercised the Top-Up Option on the Acceptance Date and the Threshold Condition shall be determined by multiplying deemed satisfied as of the Expiration Date. On such Expiration Date, Purchaser or Sub shall give the Company written notice specifying the number of such Top-Up Option Shares shares of Class A Common Stock owned by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, Purchaser Group at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder time of such notice (giving effect to Sub’s purchase priceof Shares in the Offer). Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount The Company shall, as soon as practicable following receipt of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis notice on the outstanding principal amount of such promissory note from Acceptance Date, deliver written notice to Sub specifying, based on the date such promissory note is originally issued until the date of payment information provided by Sub in full of such promissory noteits notice, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option SharesShares (the “Top-Up Closing”), Parent which shall take place at the location specified in Section 2.8 and Acquisition be effective as of or immediately after the Acceptance Time, the purchase price owed by Sub shall cause to be delivered to the Company therefor shall be paid to the consideration required Company, at Sub’s option, (i) in cash, by wire transfer of same-day funds, or (ii) by (x) paying in cash, by wire transfer of same-day funds, an amount equal to be delivered in exchange for not less than the aggregate par value of the Top-Up Option Shares being purchased and (y) executing and delivering to the Company a promissory note having a principal amount equal to the aggregate purchase price pursuant to the Top-Up OptionOption less the amount paid in cash pursuant to the preceding clause “(x)” (the “Promissory Note”). The Promissory Note (i) shall be due on the first (1st) anniversary of the Top-Up Closing, (ii) shall bear simple interest of five percent (5%) per annum, (iii) shall be full recourse to Purchaser and Sub, (iv) may be prepaid, in whole or in part, at any time without premium or penalty, and (v) shall have no other material terms. At the Top-Up Closing, the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(dc) Parent Purchaser and Acquisition Sub understand acknowledge that the Company Top-Up Option Shares which Acquisition that Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an applicable exemption thereunder for transactions not involving a public offeringfrom registration under the Securities Act. Parent Each of Purchaser and Acquisition Sub represent hereby represents and warrant warrants to the Company that Acquisition Sub iswill be, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing ).
(d) In any appraisal proceeding with respect to the Dissenting Shares and to the fullest extent permitted by applicable Law, the fair value of the Dissenting Shares shall be determined in accordance with Section 262(h) of the DGCL without regard to the Top-Up Option, the Top-Up Option Shares or the Promissory Note. The parties hereto agree that in any appraisal proceeding with respect to the Common Stock, none of them shall assert or cause another party to assert that the number of shares of Common Stock issued and outstanding at the Effective Time for purposes of such proceeding shall include any legends required by applicable securities Lawsthe Top-Up Option Shares.
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Merger Subsidiary an irrevocable option (the “Top-Up Option”), exercisable in its sole discretion and only upon on the terms and conditions set forth in this Section 2.42.03 following the Offer Closing, to purchase at a price per share equal to the Offer Price that number of authorized newly issued, fully paid and unissued nonassessable shares of Company Shares Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Stock that, when added to the number of shares of Company Shares beneficially Stock directly or indirectly owned by Parent and/or Acquisition Sub and Merger Subsidiary at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase exercise of the Top-Up Option Shares upon the vestingOption, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless shall constitute ninety percent (90%) of the conversion or exercise price or other terms and conditions thereof (assuming shares of Company Stock outstanding immediately after the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall may not be exercisable unless immediately after such exercise and exercised to the issuance extent that the number of Top-Up Option Shares exceeds that number of shares of Company Shares pursuant theretoStock authorized and unissued (treating shares owned by the Company as treasury stock as unissued) and not reserved for issuance at the time of exercise of the Top-Up Option. The Top-Up Option shall be exercisable only once, Acquisition Sub would own more than 90% in whole but not in part. The obligation of the Company to issue and deliver the Top-Up Option Shares then outstanding (assuming upon the issuance exercise of the Top-Up Option Shares); and provided further, is subject to the condition that no Applicable Law shall be in no event shall effect that has the Top-Up Option be exercisable (A) for a number effect of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock enjoining or (B) if any applicable Law or any applicable Order shall prohibit otherwise prohibiting the exercise of the Top-Up Option or the issuance and delivery of the Top-Up Option Shares. The Top-Up Option will terminate on the earlier of the Effective Time and the termination of this Agreement.
(b) Provided The parties shall cooperate to ensure that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the issuance and delivery of the Top-Up Option Shares in respect thereofcomplies with all Applicable Laws, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur including compliance with an applicable exemption from registration of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to under the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest1933 Act. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes Merger Subsidiary elects to exercise the Top-Up Option, Acquisition Sub Merger Subsidiary shall deliver written notice to the Company a notice (the “Top-Up Notice”) setting forth specifying (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase be issued pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to Merger Subsidiary shall pay the applicable purchase price and (iii) the place date and time at which the closing of the purchase of such the Top-Up Option Shares by Acquisition Sub Merger Subsidiary is to take place. At the closing of the purchase of the Top-Up Option SharesShares (the “Top-Up Closing”), Parent and Acquisition Sub which shall cause to be delivered take place at the location specified in Section 2.04, the purchase price owed by Merger Subsidiary to the Company therefor shall be paid to the consideration required Company, at Merger Subsidiary’s option, (i) in cash, by wire transfer of same-day funds, or (ii) by (x) paying in cash, by wire transfer of same-day funds, an amount equal to be delivered in exchange for not less than the aggregate par value of the Top-Up Option Shares being purchased and (y) executing and delivering to the Company a promissory note having a principal amount equal to the aggregate purchase price pursuant to the Top-Up OptionOption less the amount paid in cash pursuant to the preceding clause (x) (the “Promissory Note”). The Promissory Note (i) shall be due on the first (1st) anniversary of the Top-Up Closing, (ii) shall bear simple interest of three percent (3%) per annum, (iii) shall be full recourse to Parent and Merger Subsidiary, (iv) may be prepaid, in whole or in part, at any time without premium or penalty, and (v) shall have no other material terms. At the Top-Up Closing, the Company shall cause to be issued to Acquisition Sub Merger Subsidiary a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(dc) Parent and Acquisition Sub understand Merger Subsidiary acknowledge that the Company Top-Up Option Shares which Acquisition Sub that Merger Subsidiary may acquire upon exercise of the Top-Up Option will not be registered under the Securities 1933 Act and will be issued in reliance upon an applicable exemption thereunder for transactions not involving a public offeringfrom registration under the 1933 Act. Each of Parent and Acquisition Sub represent Merger Subsidiary hereby represents and warrant warrants to the Company that Acquisition Sub isMerger Subsidiary will be, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities 1933 Act. Acquisition Sub Merger Subsidiary agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub Merger Subsidiary for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities 1933 Act. ).
(d) Any certificates evidencing dilutive impact on the value of the shares of Company Stock as a result of the issuance of the Top-Up Option Shares shall include will not be taken into account in any legends required determination of the fair value of any Dissenting Shares pursuant to Section 262 of the DGCL as contemplated by applicable securities LawsSection 2.09.
Appears in 1 contract
Sources: Merger Agreement (Conmed Healthcare Management, Inc.)
Top-Up Option. (a) The Subject to the terms and conditions herein, the Company hereby irrevocably grants to Acquisition Sub Parent an irrevocable option (the “Top-Up Option”)) to purchase, exercisable only upon at a price per share equal to the terms and conditions set forth in this Section 2.4Offer Price, up to purchase that number of authorized and unissued Company Shares shares of the Common Stock (the “Top-Up Option Shares”) equal to the lesser of (i) the lowest number of Company Shares shares of Common Stock that, when added to the number of Company Shares beneficially shares of Common Stock collectively owned by Parent and/or Acquisition Parent, Merger Sub at and any of their respective Affiliates immediately following consummation of the time of such exercise, Offer shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance shares of all Company Shares that are issuable within ten Business Days Common Stock then outstanding (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares) at a price per share and (ii) an aggregate number of shares of Common Stock that is equal to 19.9% of the Offer Price; shares of Common Stock issued and outstanding immediately prior to the exercise of the Top-Up Option. Notwithstanding the foregoing provisions of this Section 1.5(a), the Top-Up Option shall not be exercisable if the aggregate number of shares issuable upon exercise of the Top-Up Option, plus the aggregate number of then-outstanding shares of Common Stock, plus the aggregate number of shares of Common Stock issuable upon exercise of all options and other rights to purchase Common Stock, plus the aggregate number of shares reserved for issuance pursuant to the Company Stock Option Plans would exceed the number of authorized shares of Common Stock.
(b) Parent may, at its election, exercise the Top-Up Option, in whole, but not in part, at any one time prior to Top-Up Termination Date, provided, however, that the Top-Up Option shall not be exercisable unless exerciseable unless, immediately after such exercise and the issuance of Company Shares pursuant theretothe Top-Up Option Shares, Acquisition Sub the Short Form Merger Threshold would own more than 90% of the Company Shares then outstanding be reached (assuming the issuance of the Top-Up Option Shares); .
(c) If Parent wishes to exercise the Top-Up Option, Parent shall send to the Company a written notice (a “Top-Up Exercise Notice”, and provided further, that in no event shall the date of receipt of which notice is referred to herein as the “Top-Up Notice Date”) specifying the place for the closing of the purchase and sale of shares of Common Stock pursuant to the Top-Up Option be exercisable (Athe “Top-Up Closing”) and a date not earlier than one (1) Business Day nor later than ten (10) Business Days after the Top-Up Notice Date for the Top-Up Closing. The Company shall, promptly after receipt of the Top-Up Exercise Notice, deliver a written notice to Parent confirming the number of Top-Up Option Shares and the aggregate purchase price therefor.
(d) At the Top-Up Closing, subject to the terms and conditions of this Agreement, (i) the Company Shares in excess shall deliver to Parent a certificate or certificates evidencing the applicable number of Top-Up Option Shares, provided that the obligation of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit to deliver Top-Up Option Shares upon the exercise of the Top-Up Option or is subject to the delivery of the Top-Up Option Shares.
(b) Provided condition that no provision of any applicable Law law or Order any ruling, judgment, decision, order or injunction issued by any Court or other Government Entity shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may of any such exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) Parent shall purchase each Top-Up Option Share from the termination Company at the Offer Price. Payment by Parent of this Agreement in accordance with its terms. The aggregate the purchase price payable for the Top-Up Option Shares being purchased may be made, at Parent’s option, by Acquisition Sub pursuant delivery of (A) immediately available funds by wire transfer to an account designated by the Company or (B) a demand note issued by Parent in customary form that is reasonably acceptable to the parties and in a principal face amount equal to the aggregate amount of the cash portion of the purchase price for the Top-Up Option Shares. Any demand note issued pursuant to the preceding sentence shall be determined accompanied by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal a credit support arrangement reasonably acceptable to the aggregate par value of parties hereto.
(e) Upon the purchased Top-Up Option Shares and delivery by executing and delivering Parent to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up OptionExercise Notice, Acquisition Sub shall deliver to and the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing delivery of the purchase consideration described in Section 1.5(d), Parent shall be deemed to be the holder of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase record of the Top-Up Option SharesShares issuable upon that exercise, Parent and Acquisition Sub shall cause to be delivered to notwithstanding that the stock transfer books of the Company the consideration required to shall then be delivered in exchange for the closed or that certificates representing those Top-Up Option Shares being purchased pursuant shall not then be actually delivered to the Top-Up Option, and Parent or the Company shall cause have failed or refused to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause designate the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to bank account described in Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares1.5(d).
(df) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates Certificates evidencing Top-Up Option Shares shall delivered hereunder may include any legends legally required by applicable securities Lawsincluding a legend in substantially the following form: THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY BE REOFFERED OR SOLD ONLY IF SO REGISTERED OR IF AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.
Appears in 1 contract
Sources: Merger Agreement (Analex Corp)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an irrevocable option (the “"Top-Up Option”"), exercisable only upon the terms and conditions set forth in of this Section 2.41.04, to purchase that from the Company a number of authorized and unissued newly-issued shares of Company Shares Common Stock (the “"Top-Up Option Shares”") equal to the lowest lesser of (i) the number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially owned Common Stock held by Parent and/or Acquisition and Merger Sub at the time of such exercise, shall constitute 100 Company Shares one (1) share more than ninety percent (90% %) of the number of shares of Company Shares outstanding, assuming Common Stock that would be outstanding immediately after the issuance of all shares of Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of Common Stock subject to the Top-Up Option Shares upon or (ii) the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a total number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock that the Company is authorized to issue under its Charter Documents but that are not issued and outstanding (and are not subscribed for or (Botherwise reserved to be issued under Company Stock Plans) if any applicable Law or any applicable Order shall prohibit at the time of exercise of the Top-Up Option or the delivery of the Top-Up Option SharesOption.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the The Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Optionshall only be exercisable once, in whole but and not in part, part at or following the Acceptance Time and at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms; provided, however, that (A) the Top-Up Option shall not be exercisable unless the Minimum Condition has been satisfied and Merger Sub reasonably determines that, immediately after such exercise and the issuance of Top-Up Shares, the Short Form Threshold would be reached (assuming the issuance of the Top-Up Shares), and (B) notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable and shall terminate (x) at the Acceptance Time if the number of Top-Up Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued (and not reserved to be issued under Company Stock Plans) shares of Company Common Stock (including as authorized and unissued shares of Company Common Stock, for purposes of this Section 1.04(b), any shares of Company Common Stock held in the treasury of the Company) or (y) if any judgment, injunction, order or decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Shares or (z) upon the termination of the Agreement in accordance with its terms.
(c) The aggregate amount payable to the Company by Merger Sub for the Top-Up Shares shall be equal to the product of the number of Top-Up Shares and the Offer Price (the "Top-Up Consideration"). The aggregate purchase price Top-Up Consideration shall consist of (i) an amount equal to the par value of the Top-Up Shares, to be paid in cash, and (ii) an amount equal to the balance of the Top-Up Consideration, which may be paid in the sole discretion of Parent and Merger Sub (x) in cash or (y) by issuance of a promissory note (which shall be treated as payment for the Top-Up Shares to the extent of the principal amount thereof) with full recourse to Parent, or any combination of the foregoing. Any such promissory note shall (A) accrue simple interest at the rate per annum of 5.0%, (B) shall mature on the first anniversary of the date of execution and delivery of such promissory note, (C) may be prepaid at any time and from time to time, without premium or penalty, (D) shall provide that the unpaid principal amount and accrued interest under the promissory note shall immediately become due and payable in the event that (1) Merger Sub fails to make any payment on the promissory note as provided therein and such failure continues for a period of thirty (30) days or (2) Merger Sub files or has filed against it any petition under any bankruptcy or insolvency law or makes a general assignment for the benefit of creditors, and (E) shall have no other material terms. The Company Board has determined that the Top-Up Consideration is adequate in accordance with the WBCL and otherwise taken all steps necessary such that upon issuance and delivery in accordance with this Section 1.04 the Top-Up Option Shares being purchased by Acquisition Sub pursuant shall be validly issued, fully paid and non-assessable. The parties acknowledge and agree that for all purposes of this Agreement and Annex III, any listing rule or requirement of any national securities exchange shall not be deemed to prohibit or make illegal the exercise of the Top-Up Option shall be determined by multiplying or the number issuance of such the Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyShares.
(cd) In the event Acquisition Merger Sub wishes to exercise the Top-Up Option, Acquisition Merger Sub shall deliver to give the Company a written notice, and shall set forth in such notice (the “Top-Up Notice”) setting forth (i) the number of Shares that will be owned by Parent and Merger Sub immediately preceding the purchase of the Top-Up Option Shares (including the Shares purchased pursuant to the Offer), (ii) the place and time for the closing of the purchase of the Top-Up Shares, (iii) the number of shares of Company Common Stock that Acquisition Merger Sub intends to purchase pursuant to the Top-Up Option, Option and (iiiv) the manner in which Acquisition Merger Sub intends to pay the applicable purchase price Top-Up Consideration. Such notice shall also include an undertaking signed by Parent and (iii) the place Merger Sub that Merger Sub shall, and time at which the closing Parent shall cause Merger Sub to, as promptly as practicable after such exercise of the purchase of such Top-Up Option Shares and the delivery by Acquisition Sub is to take placethe Company of the Top-Up Shares, consummate the Merger in accordance with the terms hereof. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition or Merger Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionConsideration, and the Company shall cause to be issued to Acquisition Parent or Merger Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by Shares.
(e) Any dilutive impact on the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 value of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) shares of Company Common Stock resulting from the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise or any promissory note issued to pay any portion of the purchase price for such Top-Up Option Shares will not be registered under taken into account in any determination of the Securities Act fair value of any Dissenting Shares pursuant to Section 180.1301 of the WBCL as contemplated by Section 3.07 of this Agreement and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant none of the Parties shall take any position to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined contrary in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Lawsappraisal proceeding.
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and subject to the conditions set forth in this Section 2.4herein, to purchase at a price per share equal to the Offer Price that number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub and its Subsidiaries at the time of such exercise, shall constitute 100 Company Shares one share more than 90% of the Company Shares outstanding, assuming then outstanding (the issuance of all Company Shares that are issuable within ten Business Days “Short Form Threshold”) (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price); provided, however, (x) that the Top-Up Option shall not be exercisable unless the Minimum Condition has been satisfied and, immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub the Short Form Threshold would own more than 90% of the Company Shares then outstanding be reached (assuming the issuance of the Top-Up Option Shares); and provided further, (y) that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then total authorized and unissued shares Company Shares (treating any Company Shares held in the treasury of the Company Common Stock as unissued).
(b) The parties shall cooperate to ensure that the issuance and delivery of the Top-Up Shares comply with all applicable Law, including compliance with an applicable exemption -66- from registration of the Top-Up Shares under the Securities Act. Merger Sub may pay the Company the aggregate price required to be paid for the Top-Up Option Shares either (i) entirely in cash or (Bii) if any applicable Law or any applicable Order shall prohibit at Merger Sub’s election, by (x) paying in cash an amount equal to not less than the exercise aggregate par value of the Top-Up Option or Shares and (y) executing and delivering to the delivery Company a promissory note having a principal amount equal to the balance of the aggregate purchase price pursuant to the Top-Up Option Sharesless the amount paid in cash pursuant to the preceding clause (x) (a “Promissory Note”). Any such Promissory Note shall be full recourse against Parent and Merger Sub and (i) shall bear simple interest at the prime rate of Bank of America, N.A. in effect on the date such Promissory Note is executed and delivered, (ii) shall mature thirty (30) days after the date of execution and delivery of such Promissory Note and (iii) shall have no other material terms.
(bc) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares in respect thereofpursuant thereto, Acquisition or otherwise make such exercise or issuance illegal, Merger Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyArticle VII.
(cd) In the event Acquisition Merger Sub wishes to exercise the Top-Up Option, Acquisition Parent or Merger Sub shall deliver provide to the Company one (1) Business Day prior written notice (a “Top-Up Exercise Notice,” the date of which notice is referred to herein as the “Top-Up Notice Date”) specifying the denominations of the certificate or certificates evidencing the Top-Up Option Shares which such party wishes to receive, and the place, time and date for the closing of the purchase and sale pursuant to the Top-Up Option (the “Top-Up Closing”). The Company shall, as soon as practicable after receipt of the Top-Up Exercise Notice”) setting forth (i) , deliver a written notice to Parent and Merger Sub confirming the number of Top-Up Option Shares that Acquisition Sub intends to and the aggregate purchase pursuant to price therefore (the “Top-Up Notice Receipt”). At the Top-Up OptionClosing, (ii) the manner in which Acquisition Merger Sub intends to shall pay the applicable purchase Company the aggregate price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is required to take place. At the closing of the purchase of be paid for the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered by delivery of cash and, if applicable, a Promissory Note in an aggregate principal amount equal to the Company the consideration required to be delivered amount specified in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionNotice Receipt, and the Company shall cause to be issued and delivered to Acquisition Merger Sub a certificate Certificate or Certificates representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on or, if the same day Company does not then have certificated shares, the applicable number of Book-Entry Shares. Such Certificates or Book-Entry Shares may include any legends that are required by federal or state securities laws.
(e) Parent and Merger Sub acknowledge that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Option Shares that Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will shall not be registered under the Securities Act and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offeringfrom registration under the Securities Act. Parent and Acquisition Merger Sub represent and warrant to the Company that Acquisition Merger Sub is, or will shall be upon the any purchase of the Top-Up Option Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Merger Sub agrees that the Top-Up Option Option, and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option Option, if any, are being and will shall be acquired by Acquisition Merger Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. ).
(f) Any certificates evidencing impact on the value of the Company Shares as a result of the issuance of the Top-Up Option Shares shall include will not be taken into account in any legends required by applicable securities Lawsdetermination of the fair value of any Dissenting Company Shares pursuant to Section 262 of the DGCL.
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub an irrevocable option (the “Top-Up Option”), exercisable only upon on the terms and conditions set forth in this Section 2.41.03, to purchase at a price per share equal to the Offer Price paid in the Offer that number of authorized and unissued newly issued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock directly or indirectly owned by Parent and/or Acquisition Sub at the time of such exercise, exercise of the Top-Up Option shall constitute 100 Company Shares one share more than 90% of the shares of Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days Common Stock outstanding immediately after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance for a number of shares of Company Shares pursuant thereto, Acquisition Sub would own more than 90% Common Stock in excess of the shares of Company Shares then outstanding (assuming Common Stock authorized and unissued at the issuance time of exercise of the Top-Up Option Shares); and provided furtherOption. Provided that no applicable law, that in no event rule, regulation, order, injunction or other legal impediment shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit make the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares in respect thereofpursuant thereto illegal, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, Option shall be exercisable at any one time after following the Appointment Time Offer Closing and prior to the earlier to occur of (ia) the Effective Time and (iib) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for Sub may only exercise the Top-Up Option Shares being purchased by Acquisition Sub pursuant to on a single occasion after the expiration of the Offer and in any case only if, as a result of and immediately following the issuance of the Top-Up Option shall be determined by multiplying Shares, Parent will directly or indirectly hold one share more than 90% of the number shares of such Company Common Stock then outstanding (after giving effect to the issuance of the Top-Up Option Shares by Shares).
(b) The parties shall cooperate to ensure that the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value issuance and delivery of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion comply with all applicable Law, including compliance with an applicable exemption from registration of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on Top-Up Shares under the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) Securities Act. In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to give the Company a notice (the “Top-Up Notice”) setting forth one business day prior written notice, specifying (i) the number of shares of the Company Common Stock directly or indirectly owned by Parent at the time of such notice and (ii) a place and a time for the closing of such purchase. The Company shall, as soon as practicable following receipt of such notice, deliver written notice to Sub specifying, based on the information provided by Sub in its notice, the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition the purchase price owed by Sub shall cause to be delivered to the Company the consideration required to therefor shall be delivered in exchange for the Top-Up Option Shares being purchased pursuant paid to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing (i) in an amount of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, cash equal to the extent possible, on the same day as) the issuance aggregate par value of the Top-Up Option Shares.
, by wire transfer or cashier’s check, and (dii) by issuance by Sub to the Company of a promissory note in the form of Exhibit C with a principal amount equal to the remaining exercise price of the Top-Up Shares. Parent and Acquisition Sub understand that the shares of Company Shares Common Stock which Acquisition Sub may will acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Accredited Investor within the meaning of Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are not being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 1 contract
Sources: Merger Agreement (Komag Inc /De/)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub an irrevocable option (the “Top-Up Option”), exercisable only upon on the terms and conditions set forth in this Section 2.42.3 following the Offer Closing, to purchase at a price per share equal to the Offer Price that number of authorized newly issued, fully paid and unissued nonassessable shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock directly or indirectly owned by Parent and/or and Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase exercise of the Top-Up Option Shares upon the vestingOption, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless shall constitute one share more than ninety percent (90%) of the conversion or exercise price or other terms and conditions thereof (assuming shares of Company Common Stock outstanding immediately after the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall may not be exercisable unless immediately after such exercise and exercised to the issuance extent that the number of Top-Up Option Shares exceeds that number of shares of Company Shares pursuant theretoCommon Stock authorized and unissued (treating shares owned by the Company as treasury stock as unissued) and not reserved for issuance at the time of exercise of the Top-Up Option. The Top-Up Option shall be exercisable only once, Acquisition Sub would own more than 90% in whole but not in part. The obligation of the Company to issue and deliver the Top-Up Option Shares then outstanding (assuming upon the issuance exercise of the Top-Up Option Shares); and provided further, is subject to the condition that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law shall be in effect that has the effect of enjoining or any applicable Order shall prohibit otherwise prohibiting the exercise of the Top-Up Option or the issuance and delivery of the Top-Up Option Shares.
(b) Provided The parties shall cooperate to ensure that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the issuance and delivery of the Top-Up Option Shares in respect thereofcomplies with all applicable Laws, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur including compliance with an applicable exemption from registration of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased under the Securities Act. If the Offer Conditions have been satisfied or waived and there shall have not been validly tendered and not validly withdrawn that number of shares of Company Common Stock which, when added to the shares of Company Common Stock owned by Parent and its affiliates, would represent at least ninety percent (90%) of the shares of Company Common Stock outstanding on the Offer Closing Date, Acquisition Sub pursuant shall be deemed to have exercised the Top-Up Option on the Offer Closing Date and on such date shall be determined by multiplying give the Company written notice specifying the number of shares of Company Common Stock directly or indirectly owned by Parent and its subsidiaries at the time of such Top-Up Option Shares by notice (giving effect to the Offer PriceClosing). The Company shall, without interest. Such purchase price may be paid as soon as practicable following receipt of such notice on the Offer Closing Date, deliver written notice to Acquisition Sub specifying, based on the information provided by Acquisition SubSub in its notice, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option SharesShares (the “Top-Up Closing”), Parent and which shall take place at the location specified in Section 2.5 on a date specified by Parent, the purchase price owed by Acquisition Sub shall cause to be delivered to the Company therefor shall be paid to the consideration required Company, at Acquisition Sub’s option, (i) in cash, by wire transfer of same-day funds, or (ii) by (x) paying in cash, by wire transfer of same-day funds, an amount equal to be delivered in exchange for not less than the aggregate par value of the Top-Up Option Shares being purchased and (y) executing and delivering to the Company a promissory note having a principal amount equal to the aggregate purchase price pursuant to the Top-Up OptionOption less the amount paid in cash pursuant to the preceding clause (x) (the “Promissory Note”). The Promissory Note (i) shall be due on the first (1st) anniversary of the Top-Up Closing, (ii) shall bear simple interest of five percent (5%) per annum, (iii) shall be full recourse to Parent and Acquisition Sub, (iv) may be prepaid, in whole or in part, at any time without premium or penalty, and (v) shall have no other material terms. At the Top-Up Closing, the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(dc) Parent and Acquisition Sub understand acknowledge that the Company Top-Up Option Shares which that Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an applicable exemption thereunder for transactions not involving a public offeringfrom registration under the Securities Act. Each of Parent and Acquisition Sub represent hereby represents and warrant warrants to the Company that Acquisition Sub iswill be, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. ).
(d) Any certificates evidencing dilutive impact on the value of the shares of Company Common Stock as a result of the issuance of the Top-Up Option Shares shall include will not be taken into account in any legends required determination of the fair value of any Dissenting Shares pursuant to Section 262 of the DGCL as contemplated by applicable securities LawsSection 3.5.
Appears in 1 contract
Sources: Merger Agreement (Gymboree Corp)
Top-Up Option. (a) The Subject to the terms and conditions herein, the Company hereby irrevocably grants to Acquisition Sub Parent an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase up to that number of authorized and unissued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock collectively owned by Parent and/or Parent, Acquisition Sub at and any of their respective affiliates immediately following consummation of the time of such exerciseOffer, shall constitute 100 Company Shares more than at least 90% of the Company Fully Diluted Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); , at a purchase price per Top-Up Option Share equal to the Offer Consideration, payable in shares of Parent Common Stock or cash or a demand note in an amount equal to the value of the Offer Consideration. The Top-Up Option may be exercised by Parent if and provided furtherto the extent that the exercise of such option would not prevent the Offer and the Merger from qualifying as a reorganization under Section 368(a) of the Code.
(b) Parent may, at its election, exercise the Top-Up Option, whether in whole or in part, at any one time after the occurrence of a Top-Up Exercise Event and prior to the occurrence of a Top-Up Termination Event (as defined below). For the purposes hereof, a “Top-Up Exercise Event” shall occur upon Parent’s acceptance for payment pursuant to the Offer (including, without limitation, any subsequent offering that in no event shall Parent may elect to extend pursuant to the terms and conditions of this Agreement) of Shares constituting, together with Shares owned directly or indirectly by any other affiliates of Parent, less than 90% of the Fully-Diluted Shares, but only if (i) the issuance of the Top-Up Option be exercisable Shares pursuant thereto would not require the approval of the stockholders of the Company under NASDAQ rules and regulations or NASDAQ has granted a waiver from any such rule or regulation that is reasonably acceptable to the parties hereto, (Aii) for a number of Company Shares in excess there is no other applicable law, rule or regulation that would require the approval of the Company’s then authorized stockholders for the issuance of the Top-Up Shares or any such approval shall have been waived and unissued shares of Company (iii) the Top-Up Option Shares and any Parent Common Stock or (B) if any applicable Law or any applicable Order shall prohibit to be issued in connection with the exercise of the Top-Up Option may be issued pursuant to a valid exemption from the registration requirements of the Securities Act or any state securities laws. Upon and after the delivery request of Parent, the Company will use its reasonable best efforts (but without the payment of any money) to obtain such a waiver from NASDAQ as promptly as possible after any such request. For the purposes hereof, the “Top-Up Termination Date” shall occur upon the earliest to occur of (A) the Effective Time, (B) the termination of this Agreement, (C) the date that is ten business days after the occurrence of a Top-Up Exercise Event, unless the Top-Up Option has been previously exercised in accordance with the terms and conditions hereof and (D) the date that is ten business days after the Top-Up Notice Date (as defined below), unless the Top-Up Closing shall have previously occurred.
(c) If Parent wishes to exercise the Top-Up Option, Parent shall send to the Company a written notice (a “Top-Up Exercise Notice,” and the date of receipt of which notice is referred to herein as the “Top-Up Notice Date”), specifying the place for the closing of the purchase and sale of shares of Company Common Stock pursuant to the Top-Up Option (the “Top-Up Closing”) and a date not earlier than one business day nor later than ten business days after the Top-Up Notice Date for the Top-Up Closing. The Company shall, promptly after receipt of the Top-Up Exercise Notice, deliver a written notice to Parent confirming the number of Top-Up Option Shares and the aggregate purchase price therefor.
(d) At the Top-Up Closing, subject to the terms and conditions of this Agreement, (i) the Company shall deliver to Parent a certificate or certificates evidencing the applicable number of Top-Up Option Shares; provided that the obligation of the Company to deliver Top-Up Option Shares upon the exercise of the Top-Up Option Shares.
(b) Provided is subject to the condition that no provision of any applicable Law law or Order regulation and no judgment, injunction, order or decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may of any such exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate Parent shall purchase price payable for the each Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note Share from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.the
Appears in 1 contract
Sources: Merger Agreement (K2 Inc)
Top-Up Option. (a) The On the terms and subject to the conditions set forth in this Section 2.04, the Company hereby irrevocably grants to Acquisition Merger Sub an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase at a price per share equal to the Offer Price that number of authorized and unissued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares Common Stock beneficially owned by Parent and/or Acquisition Merger Sub at the time of such exercise, shall constitute 100 Company Shares constitutes one share more than ninety percent (90% %) of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit Stock, calculated after giving effect to the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit The number of shares of Company Common Stock issuable upon the exercise of the Top-Up Option or may not exceed the delivery number of then authorized but unissued shares of Company Common Stock. Merger Sub shall not be permitted to exercise the Top-Up Option if (i) as a result of the foregoing limitation, the number of Top-Up Option Shares, when added to the number of shares of Company Common Stock beneficially owned by Merger Sub, would constitute less than 90% of the then outstanding shares of Company Common Stock, calculated after giving effect to the issuance of the Top-Up Option Shares, (ii) any provision of applicable Law or any judgment, injunction, order or decree of any governmental authority shall prohibit such exercise, or require any action, consent, approval, authorization or permit of, action by, or filing with or notification to, any governmental authority in connection with such exercise or the delivery of Top-Up Option Shares, if such action, consent, approval, authorization, permit, filing or notification has not theretofore been obtained or made, (iii) the issuance of Top-Up Option Shares in respect thereofpursuant to the Top-Up Option would require approval of the Company Stockholders under applicable laws, Acquisition Sub may rules or regulations (including, without limitation, the Amex rules and regulations to the extent that the Merger does not become effective on the same Business Day as the exercise of the Top-Up Option) or (iv) the conditions set forth in Sections 9.01(b) and (c) are not satisfied at the time of the issuance of the Top-Up Option Shares.
(c) The Top-Up Option may be exercised, in whole but not in part, at any one time after during the Appointment Time and prior ten (10) Business Day period commencing as of the Acceptance Time.
(d) If Merger Sub determines to exercise the Top-Up Option, it shall deliver a written notice of exercise to the earlier to occur of Company setting forth (i) the Effective Time number of shares of Company Common Stock that are expected to be owned by Merger Sub immediately prior to the purchase of the Top-Up Option Shares and (ii) the termination place and time for the closing of this Agreement the purchase of the Top-Up Option Shares (the “Top-Up Closing”). Merger Sub’s notice shall include an undertaking by Merger Sub to consummate the Merger within three (3) Business Days after the date of the Top-Up Closing. The Company shall, as soon as practicable following receipt of such notice, notify Merger Sub in accordance with its termswriting of the number of shares of Company Common Stock then outstanding and the number of Top-Up Option Shares. The aggregate purchase price payable for the Top-Up Option Shares shares of Company Common Stock being purchased by Acquisition Merger Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such shares then subject to the Top-Up Option Shares by the Offer Price, without interest. Such purchase price may shall be paid by Acquisition Sub, at its election, either (A) entirely Merger Sub by paying in cash or (B) in cash in an amount equal to the aggregate par value of such shares, which shall be allocated to the purchased TopCompany’s stated (or “paid-Up Option Shares in”) capital account, and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder balance of such purchase price, which balance shall be allocated to the Company’s “additional capital” account. Any such Such promissory note shall bear interest at a rate per annum equal to at the prime lending rate prevailing during the period as announced from time to time by ▇▇ ▇▇▇▇▇▇ Chase and in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated effect on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until made, shall mature and become due and payable on the date of payment in full of such promissory note, first Business Day following the Merger Effective Time and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise . At the Top-Up OptionClosing, Acquisition Merger Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange aggregate purchase price for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Merger Sub or its designee a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(de) Parent The Buyer Parties acknowledge and Acquisition Sub understand agree that the shares of Company Shares which Acquisition Common Stock that Merger Sub may acquire upon exercise of the Top-Up Option will shall not be registered under the Securities Act and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offeringoffer. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Merger Sub is, or will shall be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Merger Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will shall be acquired by Acquisition Merger Sub for the purpose of investment and not with a view to to, or for for, resale in connection with any distribution thereof within the meaning of the Securities Act. Any .
(f) Merger Sub agrees that the share certificates evidencing the Top-Up Option Shares shall may, at the Company’s election, include any legends required by applicable securities Lawsthe following legend: “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933 OR ANY EXEMPTION THEREFROM.”
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Purchaser an option option, for so long as this Agreement has not been terminated pursuant to Section 10.01 (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, to purchase that from the Company up to a number of authorized and unissued newly-issued Company Common Shares (such number of Company Common Shares, the “Top-Up Option SharesAmount”) equal to the lowest number of Company Shares that, when added to the number of Company Common Shares beneficially owned by Parent and/or Acquisition Sub Purchaser at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 constitutes one (1) Company Shares Common Share more than 90% of the number of Company Common Shares outstanding, assuming that would be outstanding immediately after the issuance of all Company Common Shares that are issuable within ten Business Days after the scheduled closing of the purchase of issued pursuant to the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer PriceOption; provided, however, provided that the Top-Up Option shall not be exercisable unless (i) immediately prior to such exercise, Purchaser owns a majority of the Company Common Shares then outstanding on a fully diluted basis as a result of the consummation of the Offer in accordance with the terms of this Agreement, and (ii) immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub Purchaser would own more than ninety percent (90% %) of the Company Common Shares then outstanding outstanding.
(assuming b) Subject to there being no statute, rule or regulation having been enacted or promulgated by any Governmental Authority which prohibits the issuance consummation of the Top-Up Option Shares); Merger and provided further, that no order or injunction of a court of competent jurisdiction in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise effect preventing consummation of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares Merger, Purchaser may, in respect thereofits sole discretion, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time occurrence of a Top-Up Exercise Event and prior to the earlier to Merger Effective Time. For purposes of this Agreement, a “Top-Up Exercise Event” shall occur of if (i) the Effective Time Acceptance Date shall have occurred and (ii) the termination Company has a number of this Agreement in accordance with its termsauthorized but unissued Company Common Shares at least equal to the Top-Up Amount. The aggregate purchase price payable for the Company Common Shares being purchased by Purchaser pursuant to the Top-Up Option shall be payable, at the option of Parent, either in cash or by delivery of a promissory note having a principal amount equal to such aggregate purchase price. The aggregate amount payable to the Company in respect of the Company Common Shares being purchased by Acquisition Sub Purchaser pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Company Common Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub that Purchaser wishes to exercise the Top-Up Option, Acquisition Sub Purchaser shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Company Common Shares that Acquisition Sub Purchaser intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Company Common Shares by Acquisition Sub Purchaser is to take placeplace and (iii) the form of payment for the purchase of such Company Common Shares, as elected by Purchaser in accordance with Section 2.06(b). At the closing of the purchase of the Top-Up Option such Company Common Shares, Parent and Acquisition Sub Purchaser shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Optionsuch Company Common Shares, and the Company shall cause to be issued to Acquisition Sub Purchaser a certificate representing such Top-Up Option Company Common Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company Common Shares issuable pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon Purchaser’s exercise of the Top-Up Option will not be registered under shall occur within three (3) Business Days following the Securities Act and will be issued notice delivered by Purchaser in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not accordance with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Lawsthis Section 2.06(c).
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Parent and Purchaser an irrevocable option (the “Top-Up Option”), such option to be exercisable only upon after Purchaser has purchased and paid for Company Shares constituting 88% of the terms and conditions set forth in this Section 2.4then outstanding Company Shares, to purchase that purchase, at a price per share equal to the Per Share Amount, a number of authorized and unissued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or Acquisition Sub or Purchaser or any wholly-owned subsidiary of Parent or Purchaser at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 constitutes one share of Company Shares Common Stock more than 90% of the number of shares of Company Shares outstanding, assuming the issuance of all Company Shares Common Stock that are issuable within ten Business Days will be outstanding immediately after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued more than 1,682,784 shares of Company Common Stock Stock. The Top-Up Option may be exercised by Parent or (B) if Purchaser, in whole or in part, at any applicable Law one time on or after the expiration date of the Offer and on or prior to the tenth business day after the later of the expiration date of the Offer or the expiration of any applicable Order shall prohibit subsequent offering period; provided, however, that the obligation of the Company to deliver Top-Up Option Shares upon the exercise of the Top-Up Option or is subject to the delivery of the Top-Up Option Shares.
(b) Provided condition that no provision of any applicable Law and no judgment, injunction, order or Order decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termssuch exercise. The aggregate purchase price payable for parties shall cooperate to ensure that the issuance of the Top-Up Option Shares being purchased by Acquisition Sub pursuant to is accomplished consistent with all applicable legal requirements of all Governmental Entities, including compliance with an applicable exemption from registration of the Top-Up Option shall be determined by multiplying Shares under the number Securities Act of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding1933, as published in The Wall Street Journal, calculated on a daily basis on amended (the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty“Securities Act”).
(cb) In the event Acquisition Sub Parent or Purchaser wishes to exercise the Top-Up Option, Acquisition Sub Parent shall deliver to so notify the Company a and shall set forth in such notice (the “number of shares of Company Common Stock that are expected to be owned by Parent, Purchaser or any wholly-owned subsidiary of Parent or Purchaser immediately preceding the purchase of the Top-Up Notice”) setting forth (i) Option Shares and a place and time for the closing of the purchase of the Top-Up Option Shares. The Company shall, as soon as practicable following receipt of such notice, notify Parent and Purchaser of the number of shares of Company Common Stock then outstanding and the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub or Purchaser, as the case may be, shall cause to be delivered to pay the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionShares, and the Company shall cause to be issued to Acquisition Sub Parent or Purchaser a certificate representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing Table of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.Contents
Appears in 1 contract
Sources: Merger Agreement (Invitrogen Corp)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub an irrevocable option (the “Top-Up Option”), exercisable only upon on the terms and conditions set forth in this Section 2.42.3, to purchase at a price per share equal to the Offer Price that number of authorized newly issued, fully paid and unissued nonassessable shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of shares of Company Shares Common Stock that, when added to the number of shares of Company Shares beneficially Common Stock directly or indirectly owned by Parent and/or and Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase exercise of the Top-Up Option Shares upon the vestingOption, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless shall constitute one share more than ninety percent (90%) of the conversion or exercise price or other terms and conditions thereof (assuming shares of Company Common Stock outstanding on a “fully diluted basis” immediately after the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall may not be exercisable unless immediately after such exercise and exercised to the issuance extent that the number of Top-Up Option Shares exceeds that number of shares of Company Shares pursuant theretoCommon Stock authorized and unissued (treating shares owned by the Company as treasury stock as unissued) and not reserved for issuance at the time of exercise of the Top-Up Option. The Top-Up Option shall be exercisable only once, Acquisition Sub would own more than 90% in whole but not in part. The obligation of the Company to issue and deliver the Top-Up Option Shares then outstanding (assuming upon the issuance exercise of the Top-Up Option Shares); and provided further, is subject to the condition that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law shall be in effect that has the effect of enjoining or any applicable Order shall prohibit otherwise prohibiting the exercise of the Top-Up Option or the issuance and delivery of the Top-Up Option Shares.
(b) Provided The parties shall cooperate to ensure that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the issuance and delivery of the Top-Up Option Shares in respect thereofcomplies with all applicable Laws, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur including compliance with an applicable exemption from registration of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased under the Securities Act. If (i) the Merger Closing has not occurred within one (1) Business Day following the Offer Closing (or, if later, one (1) Business Day following the satisfaction or waiver of the conditions set forth in Article VII (other than those conditions that by their terms are to be satisfied at the Closing, but subject to the satisfaction or waiver of such conditions), and (ii) there shall have not been validly tendered and not validly withdrawn that number of shares of Company Common Stock which, when added to the shares of Company Common Stock owned by Parent and its affiliates, would represent at least ninety percent (90%) of the shares of Company Common Stock outstanding on a “fully diluted” basis on the Offer Closing Date, Acquisition Sub pursuant shall be deemed to have exercised the Top-Up Option shall be determined by multiplying the number of on such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up NoticeExercise Date”) setting forth ). On the Top-Up Exercise Date, (i) Parent shall give the Company written notice specifying the number of shares of Company Common Stock directly or indirectly owned by Parent and its subsidiaries at the time of such notice (giving effect to the Offer Closing) and (ii) the Company shall, immediately following receipt of such notice on the Top-Up Exercise Date, deliver written notice to Acquisition Sub specifying, based on the information provided by Acquisition Sub in its notice, the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option SharesShares (the “Top-Up Closing”), Parent which shall take place at the location specified in Section 2.6 and shall be deemed to occur immediately following the Offer Closing and immediately preceding the Merger Closing, the purchase price owed by Acquisition Sub shall cause to be delivered to the Company therefor shall be paid to the consideration required Company, at Acquisition Sub’s option, (i) in cash, by wire transfer of same-day funds, or (ii) by (x) paying in cash, by wire transfer of same-day funds, an amount equal to be delivered in exchange for not less than the aggregate par value of the Top-Up Option Shares being purchased and (y) executing and delivering to the Company a promissory note having a principal amount equal to the aggregate purchase price pursuant to the Top-Up OptionOption less the amount paid in cash pursuant to the preceding clause (x) (the “Promissory Note”). The Promissory Note (i) shall be due on the first (1st) anniversary of the Top-Up Closing, (ii) shall bear simple interest of five percent (5%) per annum, (iii) shall be full recourse to Acquisition Sub, (iv) may be prepaid, in whole or in part, at any time without premium or penalty, and (v) shall have no other material terms. At the Top-Up Closing, the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(dc) Parent and Acquisition Sub understand acknowledge that the Company Top-Up Option Shares which that Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an applicable exemption thereunder for transactions not involving a public offeringfrom registration under the Securities Act. Each of Parent and Acquisition Sub represent hereby represents and warrant warrants to the Company that Acquisition Sub iswill be, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. ).
(d) Any certificates evidencing dilutive impact on the value of the shares of Company Common Stock as a result of the issuance of the Top-Up Option Shares shall include will not be taken into account in any legends required determination of the fair value of any Dissenting Shares pursuant to Section 262 of the DGCL as contemplated by applicable securities LawsSection 3.5.
Appears in 1 contract
Sources: Merger Agreement (Steinway Musical Instruments Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Parent and Purchaser an irrevocable option (the “Top-Up Option”), such option to be exercisable only upon after Purchaser has purchased and paid for Company Shares constituting 88% of the terms and conditions set forth in this Section 2.4then outstanding Company Shares, to purchase that purchase, at a price per share equal to the Per Share Amount, a number of authorized and unissued shares of Company Shares Common Stock (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of shares of Company Shares beneficially Common Stock owned by Parent and/or Acquisition Sub or Purchaser or any wholly-owned subsidiary of Parent or Purchaser at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 constitutes one share of Company Shares Common Stock more than 90% of the number of shares of Company Shares outstanding, assuming the issuance of all Company Shares Common Stock that are issuable within ten Business Days will be outstanding immediately after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued more than 1,682,784 shares of Company Common Stock Stock. The Top-Up Option may be exercised by Parent or (B) if Purchaser, in whole or in part, at any applicable Law one time on or after the expiration date of the Offer and on or prior to the tenth business day after the later of the expiration date of the Offer or the expiration of any applicable Order shall prohibit subsequent offering period; provided, however, that the obligation of the Company to deliver Top-Up Option Shares upon the exercise of the Top-Up Option or is subject to the delivery of the Top-Up Option Shares.
(b) Provided condition that no provision of any applicable Law and no judgment, injunction, order or Order decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termssuch exercise. The aggregate purchase price payable for parties shall cooperate to ensure that the issuance of the Top-Up Option Shares being purchased by Acquisition Sub pursuant to is accomplished consistent with all applicable legal requirements of all Governmental Entities, including compliance with an applicable exemption from registration of the Top-Up Option shall be determined by multiplying Shares under the number Securities Act of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding1933, as published in The Wall Street Journal, calculated on a daily basis on amended (the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty“Securities Act”).
(cb) In the event Acquisition Sub Parent or Purchaser wishes to exercise the Top-Up Option, Acquisition Sub Parent shall deliver to so notify the Company a and shall set forth in such notice (the “number of shares of Company Common Stock that are expected to be owned by Parent, Purchaser or any wholly-owned subsidiary of Parent or Purchaser immediately preceding the purchase of the Top-Up Notice”) setting forth (i) Option Shares and a place and time for the closing of the purchase of the Top-Up Option Shares. The Company shall, as soon as practicable following receipt of such notice, notify Parent and Purchaser of the number of shares of Company Common Stock then outstanding and the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub or Purchaser, as the case may be, shall cause to be delivered to pay the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionShares, and the Company shall cause to be issued to Acquisition Sub Parent or Purchaser a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 1 contract
Sources: Merger Agreement (Bioreliance Corp)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an irrevocable option (the “Top-Up Option”), exercisable only after the Acceptance Time and only upon the terms and subject to the conditions set forth in this Section 2.4herein, to purchase that at a price per share equal to the Offer Price an aggregate number of authorized and unissued Company Common Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Common Shares that, when added to the number of Company Common Shares beneficially owned by Parent and/or Acquisition or Merger Sub or any of Parent’s wholly-owned Subsidiaries at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares constitutes one share more than 90% of the then outstanding Company Common Shares outstanding, assuming (on a fully diluted basis) (the issuance of all Company Shares “Short-Form Merger Threshold”) that are issuable within ten Business Days would be outstanding immediately after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option Shares shall not exceed the number of Company Common Shares then authorized and unissued and not reserved for issuance under the Company Employee Benefit Plans as of the date hereof (including as authorized and unissued Company Common Shares, for purposes of this Section 1.4, any Company Common Shares held in the treasury of the Company and the Company Subsidiaries) (collectively, “Available Shares”) and shall not be exercisable unless if immediately after such exercise and the issuance of Company all Available Shares pursuant theretoto the Top-Up Option, Acquisition Sub the Short-Form Merger Threshold would own not be reached; provided, further, that the Top-Up Option may not be exercisable on more than 90% one occasion. Upon Parent’s request, the Company shall use its reasonable best efforts to cause its transfer agent to certify in writing to Parent the number of Company Common Shares issued and outstanding as of immediately prior to the exercise of the Company Shares then outstanding (assuming Top-Up Option and immediately after giving effect to the issuance of the Top-Up Option Shares); and provided further, that in no event shall . Merger Sub may pay the Company the aggregate price required to be paid for the Top-Up Option be exercisable Shares either entirely in cash or, at Merger Sub’s election, by paying (Ax) for a number of Company Shares in excess cash an amount equal to not less than the aggregate par value of the Company’s then authorized Top-Up Option Shares and unissued shares (y) Parent and Merger Sub executing and delivering to the Company a promissory note having a principal amount equal to the balance of Company Common Stock the aggregate purchase price pursuant to the Top-Up Option less the amount paid in cash (the “Promissory Note”). The Promissory Note shall be unsecured, full recourse to Parent and Merger Sub, non-negotiable and non-transferable, shall bear simple interest at 1% per annum, shall provide that principal and interest is due one year after the purchase of the Top-Up Option Shares, shall be prepayable in whole or in part without premium or penalty and shall have no other material terms.
(Bb) if any Provided that no applicable Law or any applicable Order (other than NASDAQ Rules, which shall not apply for purposes of this Section 1.4) shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares in respect thereofpursuant thereto, Acquisition or otherwise make such exercise or issuance illegal, Merger Sub may exercise the Top-Up Option, in whole but not in part, at any one time Option after the Appointment Time Top-Up Option has become exercisable and prior to the Effective Time. The Top-Up Option shall expire upon the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to To exercise the Top-Up Option, Acquisition Merger Sub shall deliver send to the Company a written notice (the a “Top-Up Exercise Notice”) setting forth specifying (i) the number of Top-Up Option Shares that Acquisition Merger Sub intends wishes to purchase pursuant to the Top-Up Optionreceive, (ii) whether the manner exercise price will be paid in which Acquisition Sub intends to pay the applicable purchase price form of cash or a combination of cash and a Promissory Note, and (iii) the place place, time and time at which date for the closing of the purchase and sale of such the Top-Up Option Shares by Acquisition (the “Top-Up Closing”). The Company shall, promptly after receipt of the Top-Up Exercise Notice, deliver a written notice to Merger Sub is to take placeconfirming the number of Top-Up Option Shares and the aggregate purchase price therefor (the “Top-Up Notice Receipt”). At the closing of Top-Up Closing, Merger Sub shall pay the purchase of Company the aggregate price required to be paid for the Top-Up Option Shares, Parent and Acquisition Sub shall cause including, at Merger Sub’s option, by delivery of a Promissory Note in an aggregate principal amount equal to be delivered to the Company the consideration required to be delivered that specified in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionNotice Receipt, and the Company shall cause to be issued and delivered to Acquisition Merger Sub a certificate or certificates representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by or, at Merger Sub’s request or otherwise if the Company pursuant to Section 11.2does not then have certificated shares, and if not so consummated on such day, as promptly thereafter as possiblethe applicable number of Book-Entry Shares. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated Such certificates or Book-Entry Shares may include any legends that are required by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Sharesapplicable Law.
(d) Parent and Acquisition Merger Sub understand acknowledge that the Company Common Shares which Acquisition Merger Sub may acquire upon exercise of the Top-Up Option will shall not be registered under the Securities Act and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Merger Sub represent and warrant to the Company that Acquisition Merger Sub is, or will and shall be upon the any purchase of the Top-Up Option Shares, an “accredited investor,” ”, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Merger Sub agrees that the Top-Up Option Option, and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option Option, if any, are being and will shall be acquired by Acquisition Merger Sub for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 1 contract
Sources: Merger Agreement (Fx Energy Inc)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Merger Sub an irrevocable option (the “"Top-Up Option”)") to purchase, exercisable only upon the terms and conditions set forth in this Section 2.4, to purchase that number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, howevera number of newly issued shares of Common Stock (the "Top-Up Option Shares") that, that when added to the number of shares of Common Stock owned, directly or indirectly, by Parent or Merger Sub at the time of exercise of the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance Option, constitutes one share of Company Shares pursuant thereto, Acquisition Sub would own Common Stock more than 90% of the Company Shares then number of shares of Common Stock that will be outstanding (assuming immediately after the issuance of the Top-Up Option Shares); and provided further, that in no event shall the . The Top-Up Option may be exercisable (A) for a number exercised, in whole or in part, at any time on or after any Expiration Date hereunder and on or prior to the fifth Business Day after the Expiration Date or the expiration date of Company Shares in excess any subsequent offering period; provided, however, that the obligation of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit to deliver Top-Up Option Shares upon the exercise of the Top-Up Option or is subject to the delivery conditions that (A) no provision of the Top-Up Option Shares.
(b) Provided that no any applicable Law or Order and no Restraint shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereofof such exercise, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (iB) the Effective Time and (ii) the termination issuance of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value would not require approval of the purchased Top-Up Option Shares Company's stockholders under applicable law or regulation (including Nasdaq Global Select Market rules and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder regulations), (C) upon exercise of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition the number of shares of Common Stock owned, directly or indirectly, by Parent or Merger Sub shall deliver to constitutes one share of Common Stock more than 90% of the Company a notice (number of shares of Common Stock that will be outstanding immediately after the “issuance of the Top-Up Notice”) setting forth Option Shares, (iD) the number of Top-Up Option Shares that Acquisition Sub intends to purchase issued pursuant to the Top-Up OptionOption shall in no event exceed the number of authorized and unissued shares of Common Stock not otherwise reserved for issuance for outstanding Company Options or other obligations of the Company and (E) Merger Sub has accepted for payment and paid for all shares of Common Stock validly tendered in the Offer and not withdrawn. The parties shall cooperate to ensure that the issuance of the Top-Up Option Shares is accomplished consistent with all applicable Laws, including compliance with an applicable exemption from registration of the Top-Up Option Shares under the Securities Act.
(b) Upon the exercise of the Top-Up Option in accordance with Section 1A.4(a), Merger Sub shall so notify the Company and shall set forth in such notice (i) the number of shares of Common Stock that will be owned, directly or indirectly, by Parent or Merger Sub immediately preceding the purchase of the Top-Up Option Shares and (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the a place and time at which for the closing of the purchase of such the Top-Up Option Shares by Acquisition Shares. The Company shall, as soon as practicable following receipt of such notice, notify Merger Sub is to take placeof the number of shares of Common Stock then outstanding and the number of Top-Up Option Shares. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Merger Sub shall cause to be delivered to pay the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant to the Top-Up Optionthis Section 1A.4, and the Company shall cause to be issued to Acquisition Merger Sub a certificate representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the aggregate purchase of such Top-Up Option Shares to occur on the same day that price payable for the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to Shares may be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.paid
Appears in 1 contract
Sources: Agreement and Plan of Merger (Laureate Education, Inc.)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Parent and Merger Sub an irrevocable option (the “Top-Up Option”)) to purchase, exercisable only upon at a price per share equal to the terms and conditions set forth in this Section 2.4Per Share Amount, to purchase that a number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition or Merger Sub or any wholly-owned Subsidiary of Parent or Merger Sub at the time of such exerciseexercise of the Top-Up Option, shall constitute 100 Company Shares constitutes one Share more than 90% of the Company Shares outstanding, assuming the issuance number of all Company Shares that are issuable within ten Business Days will be outstanding immediately after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) . The Top-Up Option shall be exercised by Parent or Merger Sub, in whole or in part, at a price per share equal any time on or after the expiration date of the Offer and on or prior to the fifth Business Day after the later of (i) the expiration date of the Offer Priceor (ii) the expiration of any subsequent offering period; provided, however, that the obligation of the Company to deliver Top-Up Option Shares upon the exercise of the Top-Up Option is subject to the conditions that (A) the number of Top-Up Option Shares to be issued by the Company shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90in no event exceed 19.90% of the Company number of outstanding Shares then outstanding (assuming or the voting power of the Company, in each case, as of immediately prior to and after giving effect to the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if no provision of any applicable Law law and no judgment, injunction, order or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereofof such exercise, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (iC) the Effective Time and (ii) the termination issuance of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying would not require approval of the Company’s stockholders under applicable law or regulation (including, without limitation, New York Stock Exchange rules and regulations), (D) upon exercise of the Top-Up Option, the number of such Shares owned by Parent or Merger Sub or any wholly-owned Subsidiary of Parent or Merger Sub constitutes one Share more than 90% of the number of Shares that will be outstanding immediately after the issuance of the Top-Up Option Shares, and (E) Merger Sub has accepted for payment and paid for all Shares validly tendered in the Offer and not withdrawn. The parties shall cooperate to ensure that the issuance of the Top-Up Option Shares by the Offer Priceis accomplished consistent with all applicable legal requirements of all Governmental Entities, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in including compliance with an amount equal to the aggregate par value applicable exemption from registration of the purchased Top-Up Option Shares under the Securities Act. The Top-Up Option shall be exercised (and may only be exercised) if following its exercise, the condition set forth in clause (D) above would be satisfied.
(b) Upon the exercise of the Top-Up Option in accordance with Section 1A.4(a), Parent shall so notify the Company and shall set forth in such notice (i) the number of Shares that are expected to be owned by Parent, Merger Sub or any wholly-owned Subsidiary of Parent or Merger Sub immediately preceding the purchase of the Top-Up Option Shares and by executing (ii) a place and delivering to time for the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion closing of the principal amount purchase of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up OptionOption Shares. The Company shall, Acquisition as soon as practicable following receipt of such notice, notify Parent and Merger Sub shall deliver to of the Company a notice (the “Top-Up Notice”) setting forth (i) number of Shares then outstanding and the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub or Merger Sub, as the case may be, shall cause to be delivered to pay the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionShares, and the Company shall cause to be issued to Acquisition Parent or Merger Sub a certificate representing such the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the aggregate purchase of such Top-Up Option Shares to occur on the same day that price payable for the Top-Up Notice is deemed received Shares may be paid by Merger Sub or Parent by executing and delivering to the Company pursuant a promissory note having a principal amount equal to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 balance of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, aggregate purchase price for the Top-Up Shares. Any such promissory note shall bear interest at the rate of interest per annum equal to the extent possibleInterest Rate, shall mature on the same day as) first anniversary of the issuance date of execution and delivery of such promissory note and may be prepaid without premium or penalty. In the event that this Agreement is terminated after the Top-Up Option Shares.
(d) Parent is exercised and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant prior to the Company that Acquisition Sub isEffective Time, or will be upon all amounts then owing pursuant to the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option promissory note (including all interest) shall thereupon become immediately due and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Lawspayable.
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub an the Purchaser a non-transferable, non-assignable option (the “Top-Up Option”), exercisable from and after the Acceptance Time only upon the terms and subject to the conditions set forth in this Section 2.4herein, to purchase that at a price per share equal to the Offer Price an aggregate number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned of record by Parent and/or Acquisition Sub the Purchaser at the time of such exercise, shall constitute 100 Company Shares one (1) share more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days then outstanding (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price); provided, however, that the Top-Up Option shall not be exercisable unless unless, immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub the Short Form Threshold would own more than 90% of the Company Shares then outstanding be reached (assuming the issuance of the Top-Up Option Shares)) and all of the conditions to the Merger would be satisfied; and provided provided, further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then total authorized and unissued shares Shares. Upon the Purchaser’s request, the Company shall cause its transfer agent to certify in writing to the Purchaser the number of Shares issued and outstanding as of immediately prior to the exercise of the Top-Up Option and after giving effect to the issuance of the Top-Up Option Shares. The Purchaser shall pay the Company Common Stock the aggregate par value of the Top-Up Option Shares in cash and the balance of the aggregate price required to be paid for the Top-Up Option Shares shall be paid by delivery to the Company of a promissory note (the “Promissory Note”). The Promissory Note shall be substantially in the form of Exhibit A hereto and shall be full recourse against the Purchaser, shall be guaranteed by Parent and U.S. Parent, shall bear interest at the rate of interest per annum equal to the prime lending rate prevailing from time to time during such period as published in The Wall Street Journal, shall mature on the first anniversary of the date of execution and delivery of such Promissory Note and may be prepaid without premium or penalty.
(Bb) if any Provided that no applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares in respect thereofpursuant thereto, Acquisition Sub or otherwise make such exercise or issuance illegal, the Purchaser may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Acceptance Time and prior to the earlier to occur of (i) the Effective Time and (ii) the valid termination of this Agreement in accordance with its terms. The Agreement.
(c) To exercise the Top-Up Option, the Purchaser shall send to the Company a written notice (a “Top-Up Exercise Notice”) specifying the aggregate purchase price payable for number of Shares as to which the Top-Up Option is being exercised, the denominations of the certificate or certificates evidencing the Top-Up Option Shares being purchased by Acquisition Sub that the Purchaser wishes to receive, and the place, time and date for the closing of the purchase and sale pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Closing”). The Company shall, promptly after receipt of the Top-Up Exercise Notice”) setting forth (i) , deliver a written notice to the Purchaser confirming the number of Top-Up Option Shares that Acquisition Sub intends to and the aggregate purchase pursuant to price therefor (the “Top-Up Notice Receipt”). At the Top-Up OptionClosing, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub Purchaser shall cause to be delivered deliver to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant in an aggregate amount equal to the purchase price specified in the Top-Up OptionNotice Receipt, and the Company shall cause to be issued and delivered to Acquisition Sub the Purchaser a certificate or certificates representing such the Top-Up Option Shares. Such certificates shall include any legends that are required by applicable Law. The parties hereto agree to use their reasonable best efforts to cause Purchaser acknowledges that the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will shall not be registered under the Securities Act Act, and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub The Purchaser agrees that the Top-Up Option Option, and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will shall be acquired by Acquisition Sub the Purchaser for the purpose of investment and not with a view to to, or for resale in connection with with, any distribution thereof (within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws).
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Parent and Purchaser an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase from the Company up to that number of authorized and unissued newly issued shares of common stock, par value $0.01 per share (“Common Stock”), of the Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares shares of Common Stock that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at and Purchaser immediately following consummation of the time of such exerciseOffer, shall constitute 100 Company Shares one share more than 90% of the Company Shares outstanding, assuming outstanding on a fully diluted basis (after giving effect to the issuance of all the Top-Up Option Shares) for consideration per Top-Up Option Share equal to the Offer Price.
(b) The Top-Up Option shall be exercisable only after the purchase of and payment for Shares pursuant to the Offer by Parent or Purchaser as a result of which Parent and Purchaser own beneficially at least 85% of the Shares. The Top-Up Option shall not be exercisable if the number of shares of Common Stock subject thereto exceeds the number of authorized shares of Common Stock available for issuance.
(c) In the event that Parent or Purchaser wish to exercise the Top-Up Option, Parent and Purchaser shall give the Company Shares one day’s prior written notice specifying the number of shares of Common Stock that are issuable within ten Business Days after or will be owned by Parent and Purchaser immediately following consummation of the scheduled Offer and specifying a place and a time for the closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number Company shall, as soon as practicable following receipt of such Top-Up Option Shares by the Offer Pricenotice, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal deliver written notice to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) Purchaser specifying the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company portion of the consideration required to be delivered in exchange for purchase price owing upon exercise of the Top-Up Option Shares being that equals the product of (i) the number of shares of Common Stock purchased pursuant to the Top-Up Option, and multiplied by (ii) the Company Offer Price, shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, paid to the extent possibleCompany, on at the same day as) the issuance election of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise Purchaser, in cash (by wire transfer or cashiers’ check) or by delivery of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant promissory note having full recourse to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities LawsParent.
Appears in 1 contract
Sources: Merger Agreement (Esmark INC)
Top-Up Option. (a) The Pursuant to the Merger Agreement, the Company hereby has irrevocably grants granted to Acquisition Sub an Intersil and the Purchaser the option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase from the Company, at a price per Share equal to the Per Share Amount, up to that number of authorized and unissued Company newly issued Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned owned, directly or indirectly, by Parent and/or Acquisition Sub Intersil or the Purchaser at the time of such exercise, shall constitute 100 Company Shares constitutes one share more than 90% of the Company Shares outstanding, assuming total outstanding Shares. At the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares, the portion of the purchase price owing upon exercise of the Top-Up Option that equals the product of (i) the number of Shares upon purchased pursuant to the vestingTop-Up Option, multiplied by (ii) the Per Share Amount, shall be paid to the Company, at the election of Intersil and Purchaser, in cash (by wire transfer or cashier’s check) or by delivery of an unsecured promissory note having full recourse to Intersil and such other terms reasonably satisfactory to the Company. The Top-Up Option shall be exercisable only once and only after the acceptance for payment for Shares pursuant to the Offer by Intersil or Purchaser as a result of which Intersil and Purchaser own beneficially at least a majority of the outstanding Shares on a fully diluted basis, taking into account all outstanding Shares and assuming the exercise, conversion or exercise exchange of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless rights of the conversion Company and the issuance of all Shares that the Company is obligated to issue thereunder. The Top-Up Option shall not be exercisable if the number of Shares subject thereto exceeds the number of authorized Shares available for issuance by the Company or held in the treasury of the Company at the time of exercise price or of the Top-Up Option (giving effect to the Shares issuable pursuant to all then-outstanding stock options and any other terms and conditions thereof (assuming rights issued by the Company to acquire Shares as if such Shares were outstanding), if the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess require approval of the Company’s then authorized and unissued shares stockholders under any provision of Company Common applicable law or the rules of the NASDAQ Stock Market, or (B) if any applicable Law or provision of any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit law prohibits the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its termssuch exercise. The aggregate purchase price payable for purpose of the Top-Up Option Shares is to facilitate a short-form merger, in accordance with Delaware law, following completion of the Offer. The Merger. The Merger Agreement provides that, at the effective time of the Merger (the “Effective Time”), the Purchaser will be merged with and into the Company with the Company being purchased by Acquisition Sub pursuant the surviving corporation (the “Surviving Corporation”). Following the Merger, the separate existence of the Purchaser will cease, and the Company will continue as the Surviving Corporation and an indirect, wholly-owned subsidiary of Intersil. Pursuant to the Top-Up Option Merger Agreement, each Share then held by the Company or any direct or indirect wholly owned subsidiary of the Company (or held in the Company’s treasury) or held by Intersil, Purchaser or any direct or indirect wholly owned subsidiary of Intersil shall be determined by multiplying canceled and shall cease to exist, and no consideration shall be delivered in exchange therefor. Each Share issued and outstanding immediately prior to the number of such Top-Up Option Effective Time (other than other than Shares by to be canceled in accordance with the Offer Price, without interest. Such purchase price may immediately preceding sentence and any Dissenting Shares (as defined below) shall be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in canceled and shall be converted automatically into the right to receive cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice Per Share Amount (the “Top-Up NoticeMerger Consideration”) setting forth payable, without interest, to the holder of such Share, upon surrender of the Certificate that formerly evidenced such Share (iprovided, however, that, with respect to each restricted share issued under a restricted award granted under the Company’s equity based compensation plans (each, a “Company RSA”) will be exchanged at the Effective Time for a restricted stock award representing the right to receive, on substantially the same terms and conditions (including vesting) as were applicable to such RSA immediately prior to the Effective Time, the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant shares of Intersil Common Stock (rounded down to the Top-Up Option, (iinearest whole share) determined by multiplying the manner in which Acquisition Sub intends number of restricted shares subject to pay such RSA that are being converted by the applicable purchase price and (iii) the place and time at which the closing Option Exchange Ratio). As of the purchase Effective Time, all such Shares shall no longer be outstanding and shall automatically be cancelled and shall cease to exist, and each Table of Contents holder of a certificate representing any such Top-Up Option Shares shall cease to have any rights with respect thereto, except the right to receive the Merger Consideration. Shares outstanding immediately prior to the Effective Time held by Acquisition Sub is a holder (if any) who shall have neither voted in favor of the Merger nor consented thereto in writing and who properly demands in writing appraisal for such Shares in accordance with and who complies in all respects with, Section 262 of the DGCL (“Dissenting Shares”) shall not be converted into, or represent the right to take placereceive, the Merger Consideration unless such holder fails to perfect or shall have waived, withdrawn or otherwise lost such holder’s right to appraisal, if any. At the closing Effective Time such Dissenting Shares shall no longer be outstanding and shall automatically be cancelled and shall cease to exist, and such stockholders shall be entitled to receive payment of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase fair value of such Top-Up Option Dissenting Shares to occur on the same day that the Top-Up Notice is deemed received held by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated them in accordance with the provisions of Section 253 262 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option SharesDGCL.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 1 contract
Sources: Offer to Purchase (Intersil Corp/De)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub an option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, to purchase that number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all then outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares (excluding any listing requirements of Nasdaq). The Company shall use reasonable best efforts to cause its transfer agent to certify in writing to Acquisition Sub the number of Company Shares outstanding as of immediately prior to the exercise of the Top-Up Option and after giving effect to the issuance of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, which shall not exceed two (2) years from the date of issuance, and may be prepaid without premium or penalty. The unpaid principal amount and accrued interest under the promissory note shall immediately become due and payable in the event that (x) Acquisition Sub fails to make any payment of interest on the promissory note as provided therein and such failure continues for a period of 30 days or (y) Acquisition Sub files or has filed against it any petition under any bankruptcy or insolvency law or makes a general assignment for the benefit of creditors.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.210.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c7.4(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
(e) The number of Company Shares issuable pursuant to the Top-Up Option shall be adjusted to the extent appropriate so as to restore Acquisition Sub to its rights hereunder with respect to the Top-Up Option in the event of any reclassification, stock split (including a reverse stock split), stock dividend or stock distribution, recapitalization, merger, issuer tender or exchange offer, or other similar transaction with respect to Company Shares occurring or having a record date on or after the date of this Agreement and prior to the date of exercise of the Top-Up Option.
Appears in 1 contract
Top-Up Option. (a) The Company On the terms and subject to the conditions set forth in this Section 1.4, HDI hereby irrevocably grants to the Acquisition Sub Corporation an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase at a price per share equal to the Offer Price that number of authorized and unissued Company Shares shares of Common Stock (the “Top-Up Option Shares”) equal to the lowest number of Company Shares shares of Common Stock that, when added to the number of Company Shares shares of Common Stock beneficially owned by Parent and/or the Acquisition Sub Corporation at the time of such exercise, shall constitute 100 Company Shares constitutes one share more than 90% of the Company Shares outstandingthen outstanding shares of Common Stock, assuming calculated after giving effect to the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit The number of shares of Common Stock issuable upon the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of exceed (i) the Effective Time and number of then authorized but unissued shares of Common Stock, or (ii) the termination number of this Agreement shares of Common Stock that may be issued by HDI without the prior approval of its stockholders in accordance with its termsthe listing rules of the Nasdaq Global Select Market. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall Corporation will not be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes permitted to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth Option if (i) as a result of the foregoing limitations, the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant Shares, when added to the Top-Up Optionnumber of shares of Common Stock beneficially owned by the Acquisition Corporation, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing would constitute less than 90% of the purchase then outstanding shares of such Top-Up Option Shares by Acquisition Sub is Common Stock, calculated after giving effect to take place. At the closing of the purchase issuance of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to (ii) any provision of applicable law or any judgment, injunction, order or decree of any governmental authority will prohibit such exercise, or require any action, consent, approval, authorization or permit of, action by, or filing with or notification to, any governmental authority in connection with such exercise or the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such delivery of Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause , if such action, consent, approval, authorization, permit, filing or notification has not theretofore been obtained or made, or (iii) the closing conditions set forth in Sections 7.1(b) and (c) are not satisfied at the time of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(c) The Top-Up Option may be exercised, in whole but not in part, during the 10 business day period commencing as of date of the Acquisition Corporation’s acceptance for payment of shares of Common Stock pursuant to the Offer.
(d) Parent If the Acquisition Corporation determines to exercise the Top-Up Option, it will deliver a written notice of exercise to HDI setting forth (i) the number of shares of Common Stock that are expected to be owned by the Acquisition Corporation immediately prior to the purchase of the Top-Up Option Shares and (ii) the place and time for the closing of the purchase of the Top-Up Option Shares (the “Top-Up Closing”). The Acquisition Sub understand Corporation’s notice will include an undertaking by the Acquisition Corporation to consummate the Merger within three business days after the date of the Top-Up Closing. HDI will, as soon as practicable following receipt of such notice, notify the Acquisition Corporation in writing of the number of shares of Common Stock then outstanding and the number of Top-Up Option Shares. The aggregate purchase price payable for the shares of Common Stock being purchased by the Acquisition Corporation pursuant to the Top-Up Option will be determined by multiplying the number of such shares then subject to the Top-Up Option by the Offer Price. Such purchase price will be paid by the Acquisition Corporation by paying in cash an amount equal to the aggregate par value of such shares, which will be allocated to HDI’s stated (or “paid-in”) capital account, and by executing and delivering to HDI a promissory note having a principal amount equal to he balance of such purchase price, which balance will be allocated to HDI’s “additional capital” account. Such promissory note will bear interest per annum at the prime lending rate as announced from time to time by ▇▇ ▇▇▇▇▇▇ Chase and in effect on the date such promissory note is made, will mature and become due and payable on the first business day following the Effective Time and may be prepaid without premium or penalty. At the Top-Up Closing, the Acquisition Corporation will pay HDI the aggregate purchase price for the Top-Up Option Shares and HDI will cause to be issued to the Acquisition Corporation or its designee a certificate representing the Top-Up Option Shares.
(e) Nipro and the Acquisition Corporation acknowledge and agree that the Company Shares which shares of Common Stock that the Acquisition Sub Corporation may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offeringoffer. Parent and The Acquisition Sub represent and warrant to the Company that Acquisition Sub Corporation is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. The Acquisition Sub Corporation agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by the Acquisition Sub Corporation for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any .
(f) The Acquisition Corporation agrees that the share certificates evidencing the Top-Up Option Shares shall may, at HDI’s election, include any legends required by applicable securities Lawsthe following legend: “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933 OR ANY EXEMPTION THEREFROM.”
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Parent and Purchaser an option (the “Top-Up Option”), exercisable only upon if, at the Expiration Date, the aggregate number of Shares validly tendered in accordance with the terms of the Offer and conditions set forth in this Section 2.4not withdrawn, when taken together with all Shares then owned by Parent, Purchaser and their Affiliates (collectively, the “Base Shares”), equal or exceed 80% of the outstanding Shares on a fully diluted basis immediately prior to such Expiration Date, to purchase that number of authorized and unissued from the Company Shares (the “Top-Up Option SharesPurchase”) equal to the lowest number of Company Shares that), when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; provided, however, that number of newly issued shares of Company Common Stock as may be designated in writing by the Parent or Purchaser (but not in excess of the lowest number of shares of Company Common Stock that, when added to the Base Shares, shall constitute a sufficient number of shares of Company Common Stock to effect a short-form merger under URBCA 16-10a-1104) (the “Top-Up Shares”). If such Top-Up Option is exercised, Parent and Purchaser shall consummate the Top-Up Purchase within five (5) Business Days of the Expiration Date and contemporaneously with the acceptance for payment and purchase of all Shares validly tendered pursuant to the Offer, whereupon the Company shall issue the Top-Up Shares to Purchaser, and Purchaser shall (and Parent shall cause Purchaser to) promptly pay to the Company, in, at the option of Purchaser, (i) cash and/or (ii) a full-recourse promissory note issued by Purchaser to the Company with a maturity of one year, bearing interest at an annual rate equal to four percent (4%), in a principal amount equal to the Offer Price multiplied by the number of Top-Up Shares. The parties shall cooperate to ensure that the issuance of the Top-Up Shares is accomplished consistent with all applicable legal and stock exchange listing requirements. Notwithstanding anything in this Agreement to the contrary (x) the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance if any provision of Company Shares pursuant theretoapplicable laws or any judgment, Acquisition Sub injunction, order or decree of any Governmental Entity would own more than 90% of the Company Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided furtherprohibit, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of or require any action, consent, approval, authorization or permit of, or filing with or notification to, any Governmental Entity or the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit stockholders in connection with the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereofof such exercise, Acquisition Sub may exercise which action, consent, approval, authorization, permit, filing or notification has not theretofore been obtained or made, as applicable (other than any filings required under the Top-Up OptionExchange Act or applicable stock exchange listing requirements), in whole but not in part, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (iiy) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying exercisable only up to the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value authorized but unissued shares of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyCompany’s Common Stock.
(cb) In the event Acquisition Sub Purchaser wishes to exercise the Top-Up Option, Acquisition Sub Purchaser shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub Purchaser intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub Purchaser intends to pay the applicable purchase price price, and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeoccur. At the closing of the purchase of the Top-Up Option Sharessuch closing, Parent and Acquisition Sub Purchaser shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up OptionShares, and the Company shall cause to be issued to Acquisition Sub Purchaser a certificate representing such the Top-Up Option Shares. The parties hereto agree to use their commercially reasonable best efforts to cause the such closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2this Agreement, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their commercially reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and URBCA as contemplated by Section 8.3(c) soon as close in time as possible to (including, to the extent possible, on the same day as) practicable following the issuance of the Top-Up Option Shares.
(dc) Parent and Acquisition Sub Purchaser understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option Shares will not be registered under the Securities Act any securities laws and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub Purchaser represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option is being, and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be be, acquired by Acquisition Sub Purchaser for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Actany securities laws. Any certificates evidencing Top-Up Option Shares shall may include any legends required by applicable securities Lawslaws.
Appears in 1 contract
Top-Up Option. (a) The Company hereby irrevocably grants has granted to Acquisition Sub Purchaser an irrevocable option (the “Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ) to purchase that from the Company a number of authorized and unissued Company newly issued Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub Parent, Purchaser and any of their wholly owned subsidiaries at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase exercise of the Top-Up Option Shares upon Option, constitutes, (x) if the vestingMinimum Condition is applicable, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless at least 90% of the conversion or exercise price or other terms number of Shares that will be issued and conditions thereof (assuming outstanding immediately after the issuance of the Top-Up Option Shareson a fully-diluted basis (including all Shares issuable in respect of the Company’s options or warrants) at a price per share equal or (y) if the Lowered Minimum Condition is applicable, the number of unissued Shares that the Company is authorized to issue as of the date Purchaser accepts the Shares tendered in the Offer and which are not reserved for issuance pursuant to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub would own more options or warrants and which will constitute not less than 90% of the Company number of Shares then that will be issued and outstanding upon the acceptance for payment by Purchaser of the Shares tendered in the Offer (assuming including the issuance of shares issuable pursuant to the Top-Up Option SharesOption); and provided further, that in no event shall the . The Top-Up Option may not be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) exercised if any provision of applicable Law law or any applicable Order shall prohibit judgment, injunction, order or decree of any governmental entity prohibits the exercise of the Top-Up Option or the delivery of the Shares to be purchased under the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the Option. The exercise of the Top-Up Option or by Purchaser is subject to certain conditions set forth in the delivery of the Merger Agreement. The Top-Up Option Shares may be exercised by Purchaser, in respect thereofwhole or in part, Acquisition Sub may at any time within five (5) business days following the Expiration Date. Upon exercise of the Top-Up Option, in whole but not in partif required, Purchaser shall consummate the Merger as a short-form merger pursuant to Section 253 of the DGCL. The Merger. The Merger Agreement provides that, at any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time Time, as defined below, Purchaser will be merged (the “Merger”) with and into the Company and the Company will continue as the surviving corporation (iithe “Surviving Corporation”). Following the Merger, the Surviving Corporation will be a wholly owned subsidiary of Parent. In the Merger, each outstanding Share (other than Shares held in the treasury of the Company or owned by Purchaser or Parent, which will automatically be cancelled) the termination of this Agreement in accordance will automatically be cancelled and, other than Shares with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant respect to the Top-Up Option shall which appraisal rights are properly exercised, will be determined by multiplying the number of such Top-Up Option Shares by converted into and become a right to receive the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely to the seller in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase pricewithout interest thereon, less any required withholding taxes. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penalty.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares Merger Agreement further provides that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase Merger (the “Closing”) will take place on a date to be specified by Parent and the Company (the “Closing Date”), which will be no later than the first business day after satisfaction or waiver of certain conditions under the Merger Agreement or such Top-Up Option Shares later date as determined by Acquisition Sub is to take placeParent and the Company. At the closing of the purchase of the Top-Up Option SharesClosing, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Sharesof merger (the “Certificate of Merger”), be filed with the Secretary of State of the State of Delaware and will make all other filings or recordings required 34 Table of Contents under the DGCL to effect the Merger. The parties hereto agree to use their reasonable best efforts to cause the closing Merger will become effective when such Certificate of the purchase of Merger has been duly filed or at such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received later date or time as may be agreed by Parent and the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause specified in the Certificate of Merger to be consummated in accordance with Section 253 the DGCL (the effective time of the DGCL and Merger being thereinafter referred to as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares“Effective Time”).
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
Appears in 1 contract
Sources: Offer to Purchase (Alcatel Lucent)
Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Purchaser an option (the “Top-Up Option”), exercisable only upon after the terms acceptance by Purchaser of, and conditions set forth payment for, Shares tendered in this Section 2.4the Offer, to purchase that number (but not less than that number) of authorized and unissued Company Shares (the “Top-Up Option Shares”) as is equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned directly or indirectly by Parent and/or Acquisition Sub or Purchaser at the time of such exercise, shall constitute 100 Company Shares one share more than 90% of the Company total Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all then outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share Share equal to the Offer Price; provided, however, that the Top-Up Option shall not be exercisable unless immediately after only once, at such exercise time as Parent and the issuance of Company Shares pursuant theretoPurchaser, Acquisition Sub would directly or indirectly, own more than 90at least 85% of the Company total number of Shares then outstanding (assuming and on or prior to the issuance fifth Business Day after the expiration of the Top-Up Option Shares)Offer or the expiration date of any subsequent offering period; and provided provided, further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of common stock (including, for purposes of this Section 1.05, as authorized and unissued shares of common stock any Shares held in the treasury of the Company). The obligation of the Company Common Stock or (B) if to deliver the Top-Up Shares upon the exercise of the Top-Up Option is subject to the condition that no provision of any applicable Law law (which for the avoidance of doubt, does not include the rules or regulations of the NYSE which shall not apply) and no judgment, injunction, order or decree shall prohibit, or require any applicable Order shall prohibit action or consent of the Company’s stockholders in connection with, the exercise of the Top-Up Option or the delivery of the Top-Up Option SharesShares in respect of such exercise.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Any certificates evidencing Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at include any one time after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased legends required by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyapplicable securities laws.
(c) In the event Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take place. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub Purchaser understand that the Company Shares which Acquisition Sub that Purchaser may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub Purchaser represent and warrant to the Company that Acquisition Sub Purchaser is, or will be upon the purchase exercise of the Top-Up Option SharesOption, an “accredited investor,” (as defined in Rule 501 of Regulation D promulgated under the Securities Act). Acquisition Sub Purchaser agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option thereof are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
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Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub the Purchaser an option (the “Top-Up Option”), exercisable only from and after the Acceptance Time upon the terms and subject to the conditions set forth in this Section 2.4herein, to purchase that at a price per share equal to the Offer Price an aggregate number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned owned, directly or indirectly, by the Purchaser or the Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares one share more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days then outstanding (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price); provided, however, that the Top-Up Option shall not be exercisable unless unless, immediately after such exercise and the issuance of Company Shares pursuant thereto, Acquisition Sub the Short Form Threshold would own more than 90% of the Company Shares then outstanding be reached (assuming the issuance of the Top-Up Option Shares); and provided provided, further, that in no event shall the Top-Up Option be exercisable (A) for a number of Company Shares in excess of the Company’s then total authorized and unissued shares Shares (treating Shares owned by the Company as treasury stock as unissued). Upon the Purchaser’s request, the Company shall cause its transfer agent to certify in writing to the Purchaser the number of Shares issued and outstanding as of immediately prior to the exercise of the Top-Up Option and after giving effect to the issuance of the Top-Up Option Shares. The Purchaser shall pay the Company Common Stock the aggregate par value of the Top-Up Option Shares in cash and the balance of the aggregate price required to be paid for the Top-Up Option Shares by delivery of a promissory note (the “Promissory Note”). The Promissory Note shall be full recourse against the Purchaser, shall be guaranteed by the Parent and shall bear interest at the rate of interest per annum equal to the prime lending rate prevailing from time to time during such period as published in The Wall Street Journal, shall mature on the first anniversary of the date of execution and delivery of such Promissory Note and may be prepaid without premium or penalty; provided, however, upon any event of default under the Promissory Note, all principal and accrued interest thereunder shall immediately become due and payable.
(Bb) if any Provided that no applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery issuance of the Top-Up Option Shares in respect thereofpursuant thereto, Acquisition Sub or otherwise make such exercise or issuance illegal, the Purchaser may exercise the Top-Up Option, Option only once and in whole but not in part, at any one time after the Appointment Acceptance Time and prior to the earlier to occur of (i) the Effective Time and (ii) the valid termination of this Agreement in accordance with its termsAgreement. The aggregate purchase price payable for parties shall cooperate to ensure that the issuance of the Top-Up Option Shares being purchased by Acquisition Sub pursuant to is accomplished consistent with all applicable Laws, including compliance with an applicable exemption from registration of the Top-Up Option shall be determined by multiplying Shares under the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltySecurities Act.
(c) In the event Acquisition Sub wishes to To exercise the Top-Up Option, Acquisition Sub the Purchaser shall deliver send to the Company a written notice (the a “Top-Up Exercise Notice”) setting forth (i) specifying the denominations of the certificate or certificates evidencing the Top-Up Option Shares that the Purchaser wishes to receive. The Purchaser agrees that, if requested by the Company, the Purchaser shall exercise the Top-Up Option and cause the Merger to be consummated in accordance with Section 1.6. The Company shall, promptly after receipt of the Top-Up Exercise Notice, deliver a written notice to the Purchaser confirming the number of Top-Up Option Shares that Acquisition Sub intends to and the aggregate purchase pursuant to price therefor (the “Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeNotice Receipt”). At the closing of the purchase of and sale pursuant to the Top-Up Option Shares(the “Top-Up Closing”), Parent and Acquisition Sub which shall cause take place immediately prior to be delivered the Closing, the Purchaser shall deliver to the Company the consideration required to be delivered in exchange for the Top-Up Option Shares being purchased pursuant in an aggregate amount equal to the purchase price specified in the Top-Up OptionNotice Receipt, and the Company shall cause to be issued and delivered to Acquisition Sub the Purchaser a certificate or certificates representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on or, at the same day Purchaser’s request, the applicable number of Book-Entry Shares. Such certificates or Book-Entry Shares may include any legends that are required by applicable Law. The Parent and the Purchaser each acknowledge that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will shall not be registered under the Securities Act and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offering. The Purchaser agrees that the Top-Up Option and the Top-Up Option Shares are being and shall be acquired by the Purchaser for the purpose of investment and not with a view to, or for resale in connection with, any distribution thereof (within the meaning of the Securities Act). Each of the Parent and Acquisition Sub represent the Purchaser represents and warrant to warrants that the Company that Acquisition Sub isPurchaser will be, or will be upon at the time of the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees .
(d) Notwithstanding anything to the contrary herein, the parties agree that in any appraisal proceeding under Section 262 of the DGCL, the exercise of the Top-Up Option, the issuance of the Top-Up Option and Shares, the delivery by the Purchaser of cash or the Promissory Note in payment for such Top-Up Option Shares to be acquired upon and the other transactions contemplated in connection with the exercise of the Top-Up Option are being and will shall not be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale considered in connection with any distribution thereof within the meaning determination of the Securities Act. Any certificates evidencing fair value of any Dissenting Shares in accordance with Section 262 of the DGCL, and the parties further agree that no party shall take any position to the contrary in any such proceeding.
(e) Notwithstanding anything to the contrary set forth in this Agreement, without the prior written consent of the Company, the right to exercise the Top-Up Option Shares granted pursuant to this Agreement shall include not be assigned by the Purchaser other than to the Parent or a direct or indirect wholly-owned Subsidiary of the Parent, including by operation of Law or otherwise, and any legends required by applicable securities Lawsattempted assignment in violation of this Section 1.7(e) shall be null and void.
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Top-Up Option. (a) The Contingent on the number of Parent Owned Shares being equal to at least 80% of the Adjusted Outstanding Share Number, the Company hereby irrevocably grants to Parent and Acquisition Sub an irrevocable option (the “"Top-Up Option”), exercisable only upon the terms and conditions set forth in this Section 2.4, ") to purchase that number of authorized and unissued Company Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at the time of such exercise, shall constitute 100 Company Shares more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming the issuance of the Top-Up Option Shares) at a price per share equal to the Offer Price; providedPrice a number of shares of Company Voting Common Stock (the "Top-Up Option Shares") that, however, that when added to the number of shares of Company Common Stock included in the Parent Owned Shares at the time of exercise of the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance Option, constitutes one share of Company Shares pursuant thereto, Acquisition Sub would own Common Stock more than 90% of the number of shares of Company Shares Common Stock then outstanding on a fully diluted basis (assuming after giving effect to the issuance of the Top-Up Option Shares); and provided further, that in no event shall the . The Top-Up Option may be exercisable (A) for a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock exercised by Parent or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up OptionSub, in whole but not in part, at any one time on or after the Appointment Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by the Offer Price, without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Option Shares and by executing and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may be prepaid without premium or penaltyAcceptance Date.
(cb) In the event Parent or Acquisition Sub wishes to exercise the Top-Up Option, Acquisition Sub Parent shall deliver to so notify the Company a and shall set forth in such notice (i) the “number of Parent Owned Shares that are expected to be owned immediately preceding the purchase of the Top-Up Notice”Option Shares and (ii) setting forth (i) a place and time for the closing of the purchase of the Top-Up Option Shares. The Company shall, as soon as practicable following receipt of such notice, notify Parent of the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and or Acquisition Sub Sub, as the case may be, shall cause to be delivered to pay the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Option Shares being purchased pursuant (such payment to be made by (i) check, (ii) wire transfer of immediately available funds, (iii) cancellation of indebtedness or (iv) check or wire transfer of immediately available funds for the aggregate par value of the Top-Up OptionOption Shares and the delivery of a promissory note for the balance of the aggregate price required to be paid for the Top-Up Option Shares), and the Company shall cause to be issued to Parent or Acquisition Sub a certificate representing such Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of such Top-Up Option Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Shares.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
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Top-Up Option. (a) The Company hereby irrevocably grants to Acquisition Sub Parent and Purchaser an irrevocable option (the “Top-Up Option”)) to purchase, exercisable only upon the terms and conditions set forth in this Section 2.4whole but not in part, up to purchase that number of authorized and unissued Company newly issued Shares (the “Top-Up Option Shares”) equal to the lowest number of Company Shares that, when added to the number of Company Shares beneficially owned by Parent and/or Acquisition Sub at and Purchaser following consummation of the time of such exerciseOffer (or, if applicable, any subsequent offering period), shall constitute 100 Company Shares one Share more than 90% of the Company Shares outstanding, assuming the issuance of all Company Shares that are issuable within ten Business Days then outstanding (after the scheduled closing of the purchase of the Top-Up Option Shares upon the vesting, conversion or exercise of all outstanding options, warrants, convertible or exchangeable securities and similar rights, regardless of the conversion or exercise price or other terms and conditions thereof (assuming giving effect to the issuance of the Top-Up Option Shares) at a price for consideration per share Top-Up Option Share equal to the Offer Price; provided, however, that the Per Share Amount.
(b) The Top-Up Option shall not be exercisable unless immediately only once and only after such exercise and the issuance of Company acceptance for payment for Shares pursuant theretoto the Offer (or, Acquisition Sub would if applicable, any subsequent offering period) by Parent or Purchaser as a result of which Parent and Purchaser own more than 90% beneficially at least a majority of the Company outstanding Shares then outstanding (assuming the issuance of the Top-Up Option Shares); and provided further, that in no event shall the Top-Up Option be exercisable (A) for on a number of Company Shares in excess of the Company’s then authorized and unissued shares of Company Common Stock or (B) if any applicable Law or any applicable Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares.
(b) Provided that no applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect thereof, Acquisition Sub may exercise the Top-Up Option, in whole but not in part, at any one time after the Appointment Time Fully Diluted Basis and prior to the earlier to occur of (i) the Effective Time (as defined in Section 2.3) and (ii) the termination of this Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Acquisition Sub pursuant to ; provided, however, that (A) the Top-Up Option shall not be determined by multiplying the exercisable for a number of such shares of Company Common Stock in excess of the shares of Company Common Stock authorized and unissued or held in the treasury of the Company at the time of exercise of the Top-Up Option Shares (giving effect to the shares of Company Common Stock issuable pursuant to all then-outstanding stock options, restricted stock awards and any other rights issued by the Offer PriceCompany to acquire Company Common Stock as if such shares were outstanding), without interest. Such purchase price may be paid by Acquisition Sub, at its election, either (A) entirely in cash or (B) in cash in an amount equal to the aggregate par value issuance of the purchased Top-Up Shares shall not require approval of the Company’s stockholders under applicable Law (including the rules of The NASDAQ Stock Market) and (C) the exercise of the Top-Up Option Shares and by executing the issuance and delivering to the Company a full recourse unsecured promissory note issued by the Acquisition Sub having a principal amount equal to the remainder of such purchase price. Any such promissory note shall bear interest at a rate per annum equal to the prime lending rate prevailing during the period in which any portion delivery of the principal amount of such promissory note remains outstanding, as published in The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of such promissory note from the date such promissory note is originally issued until the date of payment in full of such promissory note, and may Top-Up Shares shall not be prepaid without premium prohibited by any applicable Legal Requirement or penaltyRestraint.
(c) In the event Acquisition Sub wishes that Parent or Purchaser wish to exercise the Top-Up Option, Acquisition Sub Purchaser shall deliver to give the Company at least one day’s prior written notice specifying the number of Shares that are or will be owned by Parent and Purchaser immediately following consummation of the Offer (or, if applicable, any subsequent offering period) and specifying a place and a time for the closing of the purchase. The Company shall, as soon as practicable following receipt of such notice, deliver written notice (to Purchaser specifying, based on the “Top-Up Notice”) setting forth (i) information provided by Purchaser in its notice, the number of Top-Up Option Shares that Acquisition Sub intends to purchase pursuant to the Top-Up Option, (ii) the manner in which Acquisition Sub intends to pay the applicable purchase price and (iii) the place and time at which the closing of the purchase of such Top-Up Option Shares by Acquisition Sub is to take placeShares. At the closing of the purchase of the Top-Up Option Shares, Parent and Acquisition Sub shall cause to be delivered an amount equal to the Company product of (i) the consideration required to be delivered in exchange for the Top-Up Option number of Shares being purchased pursuant to the Top-Up Option, multiplied by (ii) the Per Share Amount, shall be paid to the Company, at the election of Parent and Purchaser, in cash (by wire transfer or cashier’s check) or by delivery of a promissory note having full recourse to Parent and such other terms reasonably satisfactory to the Company.
(d) In the event of any change in the number of shares of outstanding Company Common Stock by reason of any stock dividend, stock split, recapitalization, combination, exchange of shares, merger, consolidation, reorganization or the like or any other change in the corporate or capital structure of the Company shall cause to be issued to Acquisition Sub a certificate representing such that would have the effect of diluting Parent’s and Purchaser’s rights under the Top-Up Option Shares. The parties hereto agree to use their reasonable best efforts to cause Option, the closing number of the purchase of such Top-Up Option Shares and the Per Share Amount shall be adjusted appropriately so as to occur on the same day that restore to Parent and Purchaser their rights hereunder with respect to the Top-Up Notice is deemed received by Option; provided, however, that nothing in this Section 1.3(d) shall be construed as permitting the Company pursuant to Section 11.2, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of the DGCL and as contemplated take any action or enter into any transaction otherwise prohibited by Section 8.3(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Option Sharesthis Agreement.
(d) Parent and Acquisition Sub understand that the Company Shares which Acquisition Sub may acquire upon exercise of the Top-Up Option will not be registered under the Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Parent and Acquisition Sub represent and warrant to the Company that Acquisition Sub is, or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Option Shares to be acquired upon exercise of the Top-Up Option are being and will be acquired by Acquisition Sub for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the Securities Act. Any certificates evidencing Top-Up Option Shares shall include any legends required by applicable securities Laws.
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Sources: Merger Agreement (Intersil Corp/De)