Capped Calls Clause Samples
A Capped Calls clause sets a maximum limit on the amount that can be paid or received under certain call options, typically in the context of convertible securities or derivatives. In practice, this means that if the underlying asset's value rises above a specified cap, the holder's potential gain is limited to the cap amount, regardless of further increases in value. This clause is used to control costs and manage risk exposure, ensuring that neither party faces unlimited financial obligations due to extreme market movements.
Capped Calls. Prior to the Effective Time, the Company will cooperate with, and assist, Parent, upon ▇▇▇▇▇▇’s request, in terminating the Capped Calls at, or as promptly as practicable following, the Effective Time; provided that the Company will not be required to agree to any termination or amendment of the Capped Calls that would not be conditioned on the occurrence of Closing. Prior to the Effective Time, the Company will, and will cause its Representatives to, reasonably cooperate with and assist Parent in connection with discussions, negotiations or agreements with the counterparties to the Capped Calls with respect to any determination, adjustment, cancellation, termination, exercise, settlement or computation in connection with the Capped Calls, including with respect to any cash amounts or shares of Company Common Stock that may be receivable by the Company pursuant to the Capped Calls. The Company shall also, as promptly as reasonably practicable, provide Parent and its counsel with copies of any notices or other written communications received from or to be delivered to, the counterparties to the Capped Calls, and shall give Parent reasonable opportunity to review and comment on any written response to any such notice or other document, and shall give good faith consideration to including any such comments timely provided. If requested by Parent, the Company shall use commercially reasonable efforts to engage an advisor in connection with the negotiations with counterparties to the Capped Calls regarding the termination thereof; provided that all fees, costs or other liabilities that may be owing to any such advisor that are not contingent upon the occurrence of the Closing or are payable prior to the Closing, shall be at Parent’s sole cost and expense. The Company shall not (i) enter into any binding agreements in respect of the Capped Calls, (ii) agree to any amendments, modifications or other changes to the terms of the Capped Calls, or (iii) exercise any right it may have to terminate, or to trigger an early settlement of, any of the Capped Calls (other than in connection with an early conversion of any 2027 Notes or the occurrence of an event of default with respect to a counterparty to the Capped Call), in each case without the prior written consent of Parent, which shall not be unreasonably withheld or delayed.
Capped Calls. Prior to the Effective Time, (i) within the time periods required by the terms of the Capped Call Documentation, the Company shall use commercially reasonable efforts to give all notices and take all other actions that may be required under or in connection with the Capped Calls prior to the Capped Calls Expiration Date as a result of the execution and delivery of this Agreement or the consummation of the Transaction, in each case in a form reasonably acceptable to Parent; and (ii) the Company shall not amend, modify or terminate the Capped Call Transactions without the prior written consent of Parent (other than the termination of the Capped Calls pursuant to their terms and any modification, adjustment or termination made by counterparties to the Capped Call Documentation without the need for consent of or agreement by the Company pursuant to the terms of the Capped Call Documentation); and (iii) use its reasonable best efforts to provide all assistance and take other actions reasonably requested by Parent (which shall not require any payment by the Company or its Subsidiaries) that are customary or necessary in connection therewith or required to the fulfillment of the Company’s obligations under the terms of the Capped Call Documentation.
Capped Calls. Notwithstanding anything to the contrary in this Agreement, prior to the Effective Time and subject to applicable Law, the Company shall not amend, modify, waive or terminate the Capped Call Transactions or any provisions thereof and shall not provide any notices or enter into any agreements with the counterparties to the Capped Call Transactions without the prior written consent of Parent (such consent not to be unreasonably withheld, condition or delayed). The Company shall reasonably cooperate with Parent with respect to the negotiation of the termination of the Capped Call Transactions at or immediately following the Closing Date in good faith and in a commercially reasonable manner, and shall consult with Parent, to the extent practicable, at least five (5) Business Days prior to delivering any notices or taking any other actions with respect to the Capped Call Transactions, provided that the Company shall not be required to agree to any termination or amendment of the Capped Call Transactions that would not be conditioned on the occurrence of the Closing. If reasonably requested by Parent, the Company shall (i) engage a hedging advisor specified by Parent in connection with the foregoing and/or (ii) facilitate direct discussions between Parent and the counterparties to the Capped Call Transactions in connection with the foregoing.
Capped Calls. In connection with the offering of the New Notes, the Company is entering into capped call transactions with certain counterparties (the “Capped Call Counterparties”) pursuant to one or more capped call transaction confirmations (the “Capped Call Confirmations”). The Capped Call Confirmations have been duly authorized by the Company and, when executed and delivered by the Company and, assuming due execution and delivery thereof by the Capped Call Counterparties, constitute valid and legally binding agreements of the Company enforceable against the Company in accordance with their terms, subject to the Enforceability Exceptions.