1
EXHIBIT 2.3
MOTIVEPOWER STOCK OPTION AGREEMENT
BETWEEN
WESTINGHOUSE AIR BRAKE COMPANY,
A DELAWARE CORPORATION,
AND
MOTIVEPOWER INDUSTRIES, INC.,
A PENNSYLVANIA CORPORATION
DATED AS OF JUNE 2, 1999
2
TABLE OF CONTENTS
-----------
PAGE
----
1. The Option; Exercise; Payment of Spread.......................................................................1
2. Adjustments...................................................................................................2
3. Conditions to Delivery of Shares..............................................................................3
4. The Closing...................................................................................................4
5. Listing of Shares; Filings; Governmental Consents.............................................................4
6. Repurchase of Shares..........................................................................................4
7. Sale of Shares................................................................................................5
8. Registration Rights...........................................................................................5
9. Expenses......................................................................................................7
10. Specific Performance..........................................................................................7
11. Notice........................................................................................................7
12. Interpretation................................................................................................8
13. Entire Agreement..............................................................................................8
14. Amendment.....................................................................................................8
15. Severability..................................................................................................8
16. Governing Law.................................................................................................9
17. Counterparts..................................................................................................9
18. Parties in Interest...........................................................................................9
19. Corporate Authorization.......................................................................................9
20. Assignment....................................................................................................9
21. Termination...................................................................................................9
22. Profit Limitation............................................................................................10
23. Public Announcement..........................................................................................10
3
MOTIVEPOWER STOCK OPTION AGREEMENT
STOCK OPTION AGREEMENT dated as of June 2, 1999 (the "Agreement")
between MotivePower Industries, Inc., a Pennsylvania corporation (the
"Grantor") and Westinghouse Air Brake Company, a Delaware corporation (the
"Grantee").
WHEREAS, the Grantor and the Grantee are entering into an Agreement
and Plan of Merger dated as of the date hereof (the "Merger Agreement"), which
provides, among other things, for the merger of Grantee with and into Grantor
(the "Merger");
WHEREAS, as a condition and inducement to Grantee's willingness to
enter into the Merger Agreement, the Grantee has requested that the Grantor
grant to the Grantee an option to purchase up to 5,133,655 shares of Common
Stock, par value $0.01 per share, of the Grantor (the "Common Stock"), upon the
terms and subject to the conditions hereof; and
WHEREAS, in order to induce the Grantee to enter into the Merger
Agreement, the Grantor is willing to grant the Grantee the requested option.
NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements set forth herein, the parties hereto agree as follows:
1. The Option; Exercise; Payment of Spread. (a) Contemporaneously
herewith the Grantee and the Grantor are entering into the Merger Agreement.
Subject to the other terms and conditions set forth herein, the Grantor hereby
grants to the Grantee an irrevocable option (the "Option") to purchase up to
5,133,655 shares of Common Stock (the "Shares") at a cash purchase price equal
to $16.625 per share (the "Purchase Price"). The Option may be exercised by the
Grantee, in whole or in part, at any time, or from time to time, following (but
not prior to) the occurrence of one of the events set forth in Section 3(c)
hereof, and prior to the termination of the Option in accordance with the terms
of this Agreement.
(b) In the event the Grantee wishes to exercise the Option, the
Grantee shall send a written notice to the Grantor (the "Stock Exercise
Notice") specifying a date (subject to the HSR Act (as defined below) and any
other applicable regulatory approvals) not later than 10 business days and not
earlier than three business days following the date such notice is given for
the closing of such purchase.
(c) If at any time the Option is then exercisable pursuant to the
terms of Section 1(a) hereof, the Grantee may elect, in lieu of exercising the
Option to purchase Shares provided in Section 1(a) hereof, to send a written
notice to the
4
Grantor (the "Cash Exercise Notice") specifying a date not later than 20
business days and not earlier than 10 business days following the date such
notice is given on which date the Grantor shall pay to the Grantee an amount in
cash equal to the Spread (as hereinafter defined) multiplied by all or such
portion of the Shares subject to the Option as Grantee shall specify. As used
herein, "Spread" shall mean the excess, if any, over the Purchase Price of the
higher (x) if applicable, the highest price per share of Common Stock
(including any brokerage commissions, transfer taxes and soliciting dealers'
fees) paid or proposed to be paid by any person pursuant to any Takeover
Proposal (as defined in the Merger Agreement) (the "Alternative Purchase
Price") or (y) the closing price of the shares of Common Stock on the New York
Stock Exchange (the "NYSE") Composite Tape, the American Stock Exchange (the
"AMEX") or The Nasdaq National Market (the "Nasdaq"), as the case may be, on
the last trading day immediately prior to the date of the Cash Exercise Notice
(the "Closing Price"). If the Alternative Purchase Price includes any property
other than cash, the Alternative Purchase Price shall be the sum of (i) the
fixed cash amount, if any, included in the Alternative Purchase Price plus (ii)
the fair market value of such other property. If such other property consists
of securities with an existing public trading market, the average of the
closing prices (or the average of the closing bid and asked prices if closing
prices are unavailable) for such securities in their principal public trading
market on the five trading days ending five days prior to the date of the Cash
Exercise Notice shall be deemed to equal the fair market value of such
property. If such other property consists of something other than cash or
securities with an existing public trading market and, as of the payment date
for the Spread, agreement on the value of such other property has not been
reached, the Alternative Purchase Price shall be deemed to equal the Closing
Price. Upon exercise of its right to receive cash pursuant to this Section
1(c), the obligations of the Grantor to deliver Shares pursuant to Section 4
shall be terminated with respect to such number of Shares for which the Grantee
shall have elected to be paid the Spread.
2. Adjustments. (a) In the event of any change in the number of issued
and outstanding shares of Common Stock by reason of any stock dividend, stock
split, split-up, recapitalization, merger or other change in the corporate or
capital structure of the Grantor, the number of Shares subject to this Option
and the purchase price per Share shall be appropriately adjusted to restore the
Grantee to its rights hereunder, including its right to purchase Shares
representing 19% of the capital stock of the Grantor entitled to vote generally
for the election of the directors of Grantor which is issued and outstanding
immediately prior to the exercise of the Option.
- 2 -
5
(b) Without limiting the parties' relative rights and obligations
under the Merger Agreement, in the event that Grantor enters into an agreement
(i) to consolidate with or merge into any person, other than Grantee or one of
its subsidiaries, and Grantor will not be the continuing or surviving
corporation in such consolidation or merger, (ii) to permit any person, other
than Grantee or one of its subsidiaries, to merge into Grantor, and Grantor
will be the continuing or surviving corporation, but in connection with such
merger, the shares of Common Stock outstanding immediately prior to the
consummation of such merger will be changed into or exchanged for stock or
other securities of Grantor or any other person or cash or any other property,
or the shares of Common Stock outstanding immediately prior to the consummation
of such merger will, after such merger, represent less than 50% of the
outstanding voting securities of the merged company, or (iii) to sell or
otherwise transfer all or substantially all of its assets to any person, other
than Grantee or one of its subsidiaries, then, and in each such case, the
agreement governing such transaction will make proper provision so that the
Option will, upon the consummation of any such transaction and upon the terms
and conditions set forth herein, be converted into, or exchanged for, an option
with identical terms appropriately adjusted to acquire the number and class of
shares or other securities or property that Grantee would have received in
respect to Common Stock if the Option had been exercised immediately prior to
such consolidation, merger, sale, or transfer, or the record date therefor, as
applicable and make any other necessary adjustments.
3. Conditions to Delivery of Shares. The Grantor's obligation to
deliver Shares upon exercise of the Option is subject only to the conditions
that:
(a) No preliminary or permanent injunction or other order issued by
any federal or state court of competent jurisdiction in the United States
prohibiting the delivery of the Shares shall be in effect; and
(b) Any applicable waiting periods under the ▇▇▇▇- ▇▇▇▇▇-▇▇▇▇▇▇
Antitrust Improvements Act of ▇▇▇▇ (▇▇▇ "▇▇▇ ▇▇▇") shall have expired or been
terminated; and
(c) (i) the Merger Agreement is terminated pursuant to Section
7.1(d)(ii) and either (I) a Takeover Proposal with respect to Grantor shall
have been made after the date of the Merger Agreement and prior to the Grantor
Stockholders Meeting (as defined in the Merger Agreement) or (II) the Board of
Directors of Grantor shall not have recommended or shall have modified in a
manner materially adverse to Grantee its recommendation of the Merger Agreement
and the Merger; or (ii) the Merger Agreement is terminated pursuant to Section
7.1(e), 7.1(f) or 7.1(g) of the Merger Agreement.
- 3 -
6
4. The Closing. (a) Any closing hereunder shall take place on the date
specified by the Grantee in its Stock Exercise Notice or Cash Exercise Notice,
as the case may be, at 9:00 A.M., local time, at the offices of Doepken
Keevican & ▇▇▇▇▇, 58th Floor, USX Tower, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇,
▇▇▇▇▇▇▇▇▇▇▇▇, or, if the conditions set forth in Section 3(a), (b) or (c) have
not then been satisfied, on the second business day following the satisfaction
of such conditions, or at such other time and place as the parties hereto may
agree (the "Closing Date"). On the Closing Date, (i) in the event of a closing
pursuant to Section 1(b) hereof, the Grantor will deliver to the Grantee a
certificate or certificates representing the Shares in the denominations
designated by the Grantee in its Stock Exercise Notice and the Grantee will
purchase such Shares from the Grantor at the price per Share equal to the
Purchase Price or (ii) in the event of a closing pursuant to Section 1(c)
hereof, the Grantor will deliver to the Grantee cash in an amount determined
pursuant to Section 1(c) hereof. Any payment made pursuant to this Agreement
shall be made by certified or official bank check or by wire transfer of
federal funds to a bank designated by the party receiving such funds.
(b) The certificates representing the Shares shall bear an appropriate
legend relating to the fact that such Shares have not been registered under the
Securities Act of 1933, as amended (the "Securities Act").
5. Listing of Shares; Filings; Governmental Consents. Subject to
applicable law and the rules and regulations of the NYSE, the AMEX or the
Nasdaq, as the case may be, after the Option becomes exercisable hereunder, the
Grantor will promptly file an application to list the Shares on the NYSE or the
AMEX or quote the Shares on Nasdaq, as the case may be, and will use its
reasonable best efforts to obtain approval of such listing and to effect all
necessary filings by the Grantor under the HSR Act and the applicable laws of
each state and foreign jurisdiction; provided, however, that if the Grantor is
unable to effect such listing by the Closing Date, the Grantor will
nevertheless be obligated to deliver the Shares upon the Closing Date. Each of
the parties hereto will use its reasonable best efforts to obtain consents of
all third parties and governmental authorities, if any, necessary to the
consummation of the transactions contemplated.
6. Repurchase of Shares. If by the date that is the first anniversary
of the date the Merger Agreement was terminated pursuant to the terms thereof
(the "Merger Termination Date"), neither the Grantee nor any other Person has
acquired more than fifty percent (excluding the Shares) of the shares of
outstanding Common Stock, then the Grantor has the right to purchase (the
"Repurchase Right") all, but not less than all, of the Shares acquired upon
exercise of this Option at the greater of (i) the Purchase Price or (ii) the
average of the last sales prices for
- 4 -
7
shares of Common Stock on the five trading days ending five days prior to the
date the Grantor gives written notice of its intention to exercise the
Repurchase Right. If the Grantor does not exercise the Repurchase Right within
thirty days following the end of the one-year period after the Merger
Termination Date, the Repurchase Right lapses. In the event the Grantor wishes
to exercise the Repurchase Right, the Grantor shall send a written notice to
the Grantee specifying a date (not later than 20 business days and not earlier
than 10 business days following the date such notice is given) for the closing
of such purchase.
7. Sale of Shares. At any time prior to the first anniversary of the
Merger Termination Date, the Grantee shall have the right to sell (the "Sale
Right") to the Grantor all, but not less than all, of the Shares acquired upon
exercise of this Option at the greater of (i) the Purchase Price or (ii) the
average of the last sales prices for shares of Common Stock on the five trading
days ending five days prior to the date the Grantee gives written notice of its
intention to exercise the Sale Right. If the Grantee does not exercise the Sale
Right prior to the first anniversary of the Merger Termination Date, the Sale
Right terminates. In the event the Grantee wishes to exercise the Sale Right,
the Grantee shall send a written notice to the Grantor specifying a date not
later than 20 business days and not earlier than 10 business days following the
date such notice is given for the closing of such sale.
8. Registration Rights. (a) In the event that the Grantee shall desire
to sell any of the Shares within three years after the purchase of such Shares
pursuant hereto, and such sale requires, in the opinion of counsel to the
Grantee, which opinion shall be reasonably satisfactory to the Grantor and its
counsel, registration of such Shares under the Securities Act, the Grantor will
cooperate with the Grantee and any underwriters in registering such Shares for
resale, including, without limitation, promptly filing a registration
statement, including if requested by Grantee a "shelf" registration statement
under Rule 145 under the Securities Act or any successor provision, which
complies with the requirements of applicable federal and state securities laws,
and entering into an underwriting agreement with such underwriters upon such
terms and conditions as are customarily contained in underwriting agreements
with respect to secondary distributions; provided, however, that the Grantor
shall not be required to have declared effective more than one registration
statement hereunder and shall be entitled to delay the filing or effectiveness
of any registration statement for up to 180 days if the offering would, in the
judgment of the Board of Directors of the Grantor, require premature disclosure
of any material corporate development or material transaction involving the
Grantor or interfere with any previously planned securities offering by the
Grantor.
- 5 -
8
(b) If the Common Stock is registered pursuant to the provisions of
this Section 8, the Grantor agrees (i) to furnish copies of the registration
statement and the prospectus relating to the Shares covered thereby in such
numbers as the Grantee may from time to time reasonably request and (ii) if any
event shall occur as a result of which it becomes necessary to amend or
supplement any registration statement or prospectus, to prepare and file under
the applicable securities laws such amendments and supplements as may be
necessary to keep available for at least 120 days a prospectus covering the
Common Stock meeting the requirements of such securities laws, and to furnish
the Grantee such numbers of copies of the registration statement and prospectus
as amended or supplemented as may reasonably be requested. The Grantor shall
bear the cost of the registration, including, but not limited to, all
registration and filing fees, printing expenses, and fees and disbursements of
counsel and accountants for the Grantor, except that the Grantee shall pay the
fees and disbursements of its counsel, and the underwriting fees and selling
commissions applicable to the shares of Common Stock sold by the Grantee. The
Grantor shall indemnify and hold harmless (i) Grantee, its affiliates and its
officers and directors and (ii) each underwriter and each person who controls
any underwriter within the meaning of the Securities Act or the Securities
Exchange Act of 1934, as amended (collectively, the "Underwriters") ((i) and
(ii) being referred to as "Indemnified Parties") against any losses, claims,
damages, liabilities or expenses, to which the Indemnified Parties may become
subject, insofar as such losses, claims, damages, liabilities (or actions in
respect thereof) and expenses arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained or
incorporated by reference in any registration statement filed pursuant to this
paragraph, or arise out of or are based upon the omission or alleged omission
to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading; provided, however, that the Grantor
will not be liable in any such case to the extent that any such loss,
liability, claim, damage or expense arises out of or is based upon an untrue
statement or alleged untrue statement in or omission or alleged omission from
any such documents in reliance upon and in conformity with written information
furnished to Grantor by the Indemnified Parties expressly for use or
incorporation by reference therein.
(c) The Grantee shall indemnify and hold harmless the Grantor, its
affiliates and its officers and directors against any losses, claims, damages,
liabilities or expenses to which the Grantor, its affiliates and its officers
and directors may become subject, insofar as such losses, claims, damages,
liabilities (or actions in respect thereof) and expenses arise out of or are
based upon any untrue statement of any material fact contained or incorporated
by reference in any registration statement filed pursuant to this paragraph, or
arise out of or are based upon the omission or alleged omission to state
therein a material fact
- 6 -
9
required to be stated therein or necessary to make the statements therein not
misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission
was made in reliance upon and in conformity with written information furnished
to the Grantor by the Grantee specifically for use or incorporation by
reference therein.
9. Expenses. Each party hereto shall pay its own expenses incurred in
connection with this Agreement, except as otherwise specifically provided
herein.
10. Specific Performance. The Grantor acknowledges that if the Grantor
fails to perform any of its obligations under this Agreement immediate and
irreparable harm or injury would be caused to the Grantee for which money
damages would not be an adequate remedy. In such event, the Grantor agrees that
the Grantee shall have the right, in addition to any other rights it may have,
to specific performance of this Agreement. Accordingly, if the Grantee should
institute an action or proceeding seeking specific enforcement of the
provisions hereof, the Grantor hereby waives the claim or defense that the
Grantee has an adequate remedy at law and hereby agrees not to assert in any
such action or proceeding the claim or defense that such a remedy at law
exists. The Grantor further agrees to waive any requirements for the securing
or posting of any bond in connection with obtaining any such equitable relief.
11. Notice. All notices and other communications hereunder shall be in
writing and shall be deemed given when delivered personally, one day after
being delivered to a nationally recognized overnight courier or when telecopied
(with a confirmatory copy sent by such overnight courier) to the parties at the
following addresses (or at such other address for a party as shall be specified
by like notice):
(a) if to the Grantor, to:
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: Chief Executive Officer
Facsimile No.: (▇▇▇) ▇▇▇-▇▇▇▇
with copies to:
Doepken Keevican & ▇▇▇▇▇
58th Floor, USX Tower
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇.
Facsimile No.: (▇▇▇) ▇▇▇-▇▇▇▇
- 7 -
10
and
Sidley & Austin
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Facsimile No.: (▇▇▇) ▇▇▇-▇▇▇▇
if to the Grantee, to:
1001 Air Brake ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: Chief Executive Officer
Facsimile No.: (▇▇▇) ▇▇▇-▇▇▇▇
with copies to:
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇▇▇▇
Facsimile No.: (▇▇▇) ▇▇▇-▇▇▇▇
and
▇▇▇▇▇▇▇▇ & ▇▇▇▇▇
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇.▇.
▇▇▇▇▇▇▇▇▇▇, ▇.▇. ▇▇▇▇▇
Attention: ▇▇▇▇ ▇▇▇▇▇
Facsimile No.: (▇▇▇) ▇▇▇-▇▇▇▇
12. Interpretation. When a reference is made in this Agreement to a
section, such reference shall be to a Section of this Agreement unless
otherwise indicated. The headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement. Whenever the words "include," "includes" or "including" are
used in this Agreement they shall be deemed to be followed by the words
"without limitation."
13. Entire Agreement. This Agreement (including the documents and the
instruments referred to herein) constitutes the entire agreement and supersedes
all prior agreements and understandings, both written and oral, among the
parties with respect to the subject matter hereof.
14. Amendment. This Agreement may not be amended except by an
instrument in writing signed on behalf of each of the parties hereto.
15. Severability. The invalidity or unenforceability of any provision
of this Agreement in any jurisdiction shall not
- 8 -
11
affect the validity or enforceability of any other provision of this Agreement
in such jurisdiction, or the validity or enforceability of any provision of
this Agreement in any other jurisdiction.
16. Governing Law. This Agreement shall be governed by, and construed
in accordance with, the laws of the State of Pennsylvania, regardless of the
laws that might otherwise govern under the applicable principles of conflicts
of laws thereof.
17. Counterparts. This Agreement may be executed in two or more
counterparts, all of which shall be considered one and the same agreement and
shall become effective when two or more counterparts have been signed by each
of the parties and delivered to the other parties, it being understood that all
parties need not sign the same counterpart.
18. Parties in Interest. This Agreement shall inure to the benefit of
and be binding upon the parties named herein and their respective successors
and assigns; provided, however, that such successor in interest or assigns
shall agree to be bound by the provisions of this Agreement. Nothing in this
Agreement, express or implied, is intended to confer upon any person other than
the Grantor or the Grantee, or their successors or assigns, any rights or
remedies under or by reason of this Agreement.
19. Corporate Authorization. The Grantor agrees to take all necessary
corporate action to authorize and reserve the Shares issuable upon exercise of
the Option and to insure that, when issued and delivered by the Grantor upon
exercise of the Option and paid for by Grantee as contemplated hereby, the
Shares will be duly authorized, validly issued, fully paid and nonassessable
and free of preemptive rights.
20. Assignment. No party to this Agreement may assign any of its
rights or obligations under this Agreement without the prior written consent of
the other party hereto, except that the Grantee may assign its rights and
obligations hereunder to any of its direct or indirect wholly owned
subsidiaries, but no such transfer shall relieve the Grantee of its obligations
hereunder if such transferee does not perform such obligations.
21. Termination. The right to exercise the Option granted pursuant to
this Agreement shall terminate at the earliest of (i) the Effective Time (as
defined in the Merger Agreement), (ii) if the Option is not exercised within 12
months days after first becoming exercisable and (iii) if not then exercisable,
thirty days after termination of the Merger Agreement in accordance with its
terms (the dates referred to in clause (ii) and (iii) being hereinafter
referred to as the "Termination Date"); provided, however, that if the Option
cannot be exercised or the Shares cannot be delivered to Grantee upon
- 9 -
12
such exercise because the conditions set forth in Section 3(a), (b) or (c)
hereof have not yet been satisfied, the Termination Date shall be extended
until thirty days after such impediment to exercise or delivery has been
removed.
22. Profit Limitation. (a) Notwithstanding any other provision of this
Agreement or the Merger Agreement, in no event shall the Grantee's Total Profit
(as hereinafter defined) exceed $30 million and, if it otherwise would exceed
such amount, the Grantee shall repay such excess amount to Grantor in cash (or
the purchase price for purposes of Section 6 or 7, as applicable, shall be
reduced) so that Grantee's Total Profit shall not exceed $30 million after
taking into account the foregoing actions.
Notwithstanding any other provision of this Agreement, this Option may
not be exercised for a number of Shares as would, as of the date of the Stock
Exercise Notice, result in a Notional Total Profit (as defined below) of more
than $15 million and, if exercise of the Option otherwise would exceed such
amount, the Grantee, at its discretion, may increase the Purchase Price for
that number of Shares set forth in the Stock Exercise Notice so that the
Notional Total Profit shall not exceed $15 million; provided, however, that
nothing in this sentence shall restrict any exercise of the Option permitted
hereby on any subsequent date at the Purchase Price set forth in Section 1(a)
hereof.
As used herein, the term "Total Profit" shall mean the aggregate
amount (before taxes) of the following: (i)(x) the amount of cash received by
Grantee pursuant to Sections 7.3(d)(ii) and (e) (ii) of the Merger Agreement
and Section 1(c) hereof, less (y) any repayment of such cash to Grantor,
(ii)(x) the amount received by Grantee pursuant to the Grantor's repurchase of
Shares pursuant to Sections 6 or 7 hereof, less (y) the Grantee's purchase
price for such Shares, and (iii)(x) the net cash amounts received by Grantee
pursuant to the sale of Shares (or any other securities into or for which such
Shares are converted or exchanged) to any unaffiliated party, less (y) the
Grantee's purchase price for such Shares.
As used herein, the term "Notional Total Profit" with respect to any
number of Shares as to which Grantee may propose to exercise this Option shall
be the Total Profit determined as of the date of the Stock Exercise Notice
assuming that this Option was exercised on such date for such number of Shares
and assuming that such Shares, together with all Shares acquired upon exercise
of the Option and held by Grantee and its affiliates as of such date, were sold
for cash at the closing market price for the Common Stock as of the close of
business on the preceding trading day (less customary brokerage commissions).
23. Public Announcement. Grantor and Grantee shall consult with each
other before issuing any press release or otherwise making any public statement
with respect to this Option
- 10 -
13
and shall not issue any such press release or make any such public statement
prior to such consultation and the receipt of approval therefor by the other
party, which consent shall not be unreasonably withheld, except as may be
required by law, court process or by stock exchange rules.
- 11 -
14
IN WITNESS WHEREOF, the Grantee and the Grantor have caused this
Agreement to be duly executed and delivered on the day and year first above
written.
MOTIVEPOWER INDUSTRIES, INC.
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇
-------------------------------------
Name: ▇▇▇▇ ▇. ▇▇▇▇
Title: Chairman of the Board
WESTINGHOUSE AIR BRAKE COMPANY
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
-------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title: Chief Executive Officer
- 12 -