Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the Company grants to Merger Subsidiary an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”), to purchase from the Company, up to the number of authorized and unissued Shares, the number of Shares that, when added to the number of Shares owned by Merger Subsidiary at the time of exercise of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”). (b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable. (c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares. (d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 3 contracts
Samples: Merger Agreement (RP Management, LLC), Merger Agreement (Ramius Value & Opportunity LLC), Merger Agreement (Cypress Bioscience Inc)
Top-Up Option. (a) Subject to Sections Section 1.04(b) and 1.04(c)) of this Agreement, the Company hereby irrevocably grants to Merger Subsidiary Sub, an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”), to purchase from the Company, up to the number of authorized and unissued Shares, Company Shares equal to the number of Company Shares that, when added to the number of Company Shares owned by Merger Subsidiary Sub at the time of the exercise of the Top-Up Option, constitutes at least one Company Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Company Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis or, at Parent’s election, on a primary basis at the Effective Time (the such Company Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, Sub only once, at any time during the 10 ten Business Day period following the Acceptance Date, or if any Subsequent Offering Period is providedprovided in accordance with the terms of this Agreement, during the 10 ten Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary Sub shall own as of such time less than 90% of the Shares outstanding Shareson a fully-diluted basis; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable to the extent (i) to the extent issuance of the Top-Up Shares would require approval of the Company’s stockholders under any applicable Legal Requirement or (ii) the number of Company Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Shares by an amount equal to the price paid for each Share in the OfferOffer Price, without interest. Such purchase price shall be payable in cash by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payableSub.
(c) In the event Merger Subsidiary Sub wishes to exercise the Top-Up Option, Merger Subsidiary Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary Sub intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary Sub (the “Top-Up Closing”) is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of At the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up SharesClosing, Parent and Merger Subsidiary Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entryShares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares Closing to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.019.09, 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 Delaware Law as contemplated by Section 9.05 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 Shares.
(d) Parent and Merger Subsidiary Sub understand that the Top-Up Shares will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary Sub represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Securities Act. Each of Parent and Merger Sub represents and warrants to the Company that 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 under the Securities Act. Any certificates evidencing Top-Up Shares may shall include any legends required by applicable securities laws.
(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
Samples: Merger Agreement (Symyx Technologies Inc), Merger Agreement (Symyx Technologies Inc), Merger Agreement (Symyx Technologies Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and subject to the conditions set forth in this Agreement, to purchase from the Company, up at a price per share equal to the Offer Price paid in the Offer that number of authorized and unissued newly issued Shares (the “Top-Up Shares, ”) equal to the lowest number of Shares that, when added to the number of Shares directly or indirectly owned by Merger Subsidiary Parent or Sub at the time of exercise of the Top-Up Option, constitutes shall constitute one Share share more than ninety percent (90% %) of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated Shares (determined on a fully-fully diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”basis).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is ; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, (i) the Top-Up Option shall not be exercisable (i) to the extent the for a number of Shares issuable upon in excess of the Shares authorized and unissued at the time of exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately the Top-Up Option may not be exercised unless, (x) following the Acceptance Time or after a subsequent offering period, eighty percent (80%) or more of the Shares shall be directly or indirectly owned by Parent or Sub and (y) after the giving effect to the exercise of the Top-Up Option, the number Parent, Sub and any wholly owned subsidiary of shares of the Company Common Stock owned Parent or Sub would own in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than ninety percent (90% %) of the number of shares of Company Common Stock that would be outstanding immediately Shares (after giving effect to the issuance of all shares the Top-Up Option but excluding Shares tendered pursuant to guaranteed delivery procedures that have not yet been delivered in settlement or satisfaction of Company Common Stock subject such guarantee). The Top-Up Option shall be exercisable only once at any time following the Acceptance Time and prior to such the earlier to occur of (A) the Effective Time and (B) the termination of this Agreement in accordance with its terms; provided, however, that so long as the Minimum Condition is satisfied upon the Acceptance Time, Parent and Sub may exercise of the Top-Up Option, on a second occasion, on the same terms and conditions set forth in this Section 1.10 in the event the Shares that were subject to guarantees of delivery were not properly tendered in the Offer.
(b) If Sub wishes to exercise the Top-Up Option, Sub shall give the Company one (1) business day prior written notice, specifying (i) the number of Shares directly or indirectly owned by Parent and Sub at the time of such notice, (ii) a place and a time for the closing of such purchase, (iii) unless the Minimum Condition shall have been satisfiednumber of Shares Parent or Sub intends to purchase pursuant to the Top-Up Option and (iv) manner in which Parent or Sub intends to pay the applicable purchase price. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary Sub or Parent pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal the Offer Price. 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 Shares. At the closing of the purchase of Top-Up Shares, the purchase price owed by Sub to the price paid for each Share in the Offer, without interest. Such purchase price Company therefor shall be payable by Merger Subsidiary paid to the Company (A) in cash, by wire transfer or cashier’s check or (B) by executing and delivering issuance by Sub to the Company of a promissory note having a principal amount equal to the purchase pricenote, or (C) any combination of the foregoing. Any such promissory note which shall bear interest at the rate of 6% three percent (3%) per annum, shall mature on the first anniversary of the date of execution and delivery of such promissory note and may be prepaid prepaid, in whole or in part, without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In Parent and Sub acknowledge that the event Merger Subsidiary wishes Shares that Sub may acquire upon exercise of the Top-Up Option shall not be registered under the Securities Act and shall be issued in reliance upon an exemption for transactions not involving a public offering. Parent and Sub represent and warrant to exercise the Company that Sub is, or shall be upon any purchase of Top-Up Shares, an “accredited investor,” as defined in Rule 501 of Regulation D under the Securities Act. Sub agrees that the Top-Up Option, Merger Subsidiary shall deliver to and the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such be acquired upon exercise of the Top-Up Option, Merger Subsidiary intends to (if any, are being and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Securities Act). Any certificates evidencing the shares acquired pursuant to the Top-Up Shares may Option shall include any legends required by applicable securities laws.
Appears in 3 contracts
Samples: Merger Agreement (Somanetics Corp), Merger Agreement (Somanetics Corp), Merger Agreement (Covidien PLC)
Top-Up Option. (a) Subject to Sections 1.04(bclause (c) and 1.04(c)below, the Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Agreement, to purchase from at a price per share equal to the Company, Offer Price paid in the Offer up to the that number of authorized and unissued newly issued Shares (the “Top-Up Shares, ”) equal to the lowest number of Shares that, when added to the number of Shares directly or indirectly owned by Merger Subsidiary Parent or Sub at the time of exercise of the Top-Up Option, constitutes shall constitute one Share share more than ninety percent (90% %) of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated Shares (determined on a fully-fully diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”basis).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is ; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, (i) the Top-Up Option shall not be exercisable (i) to the extent the for a number of Shares issuable upon in excess of the Shares authorized and unissued at the time of exercise of the Top-Up Option would exceed and (ii) the Top-Up Option may not be exercised unless, following the Acceptance Time or after a subsequent offering period, eighty percent (80%) or more of the Shares shall be directly or indirectly owned by Parent or Sub. The Top-Up Option shall be exercisable only once at any time following the Acceptance Time and prior to the earlier to occur of (A) the Effective Time and (B) the termination of this Agreement in accordance with its terms.
(b) 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. If Sub wishes to exercise the Top-Up Option, Sub shall give the Company one (1) business day’s prior written notice, specifying (i) the number of authorized but unissued Shares directly or indirectly owned by Parent at the time of such notice and unreserved (ii) a place and a time for the closing of such purchase. The Company shall, as soon as reasonably 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 Shares. At the closing of the purchase of Top-Up Shares, the purchase price owed by Sub to the Company therefor shall be paid to the Company (A) in cash, by wire transfer or cashier’s check or (B) by issuance by Sub to the Company of a promissory note on terms reasonably satisfactory to the Company.
(c) The obligation of the Company to deliver Top-Up Shares upon the exercise of the Top-Up Option is subject to the conditions that (i) 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 Shares in respect of such exercise, (ii) unless immediately following due to the exercise of the Top-Up Option, the number of shares of the Company Common Stock Shares owned in the aggregate by Parent Parent, Sub and Merger Subsidiary constitutes at least their Affiliates will constitute one share Share more than ninety percent (90% %) of the number of shares of Company Common Stock Shares that would will be outstanding on a fully-diluted basis immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up SharesShares and (iii) Sub has accepted for payment all Shares validly tendered in the Offer and not withdrawn. For all purposes of this Agreement, the term “Affiliate” when used with respect to any person means any other person who is an “affiliate” of that first person within the meaning of Rule 405 under the Securities Act.
(d) Parent and Merger Subsidiary understand Sub acknowledge that the Shares that Sub may acquire upon exercise of the Top-Up Shares Option will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsSub represent and warrant to the Company that Sub is, warrants and or will be upon any purchase of Top-Up Shares, an “accredited investor,” as defined in Rule 501 of Regulation D under the Securities Act. Sub agrees that the Top-Up Option is beingOption, and the Top-Up Shares to be acquired upon exercise of the Top-Up Option, if any, are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws).
Appears in 3 contracts
Samples: Merger Agreement (Covidien PLC), Merger Agreement (Power Medical Interventions, Inc.), Merger Agreement (Covidien Delaware Corp.)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 1.10, to purchase from the Company, up at a price per share equal to the number greater of authorized and unissued (i) the last reported sale price of a Share on The Nasdaq Stock Market on the last trading day prior to the date on which the Top-Up Option is exercised or (ii) the Closing Amount, newly issued Shares (the “Top-Up Shares, the number of Shares ”) so that, when added to the number of Shares owned by Merger Subsidiary Sub prior to the exercise of the Top-Up Option, Sub will own at least ninety percent (90%) of the Shares outstanding immediately after the issuance of the Top-Up Shares (not including in the Shares owned by Sub any Shares tendered pursuant to unfulfilled guaranteed delivery procedures); provided, however, that (i) the Top-Up Option shall not be exercisable for a number of Shares in excess of the Shares authorized and unissued at the time of exercise of the Top-Up OptionOption and (ii) the Top-Up Option may not be exercised unless, constitutes one Share following the Acceptance Time or after a subsequent offering period, seventy percent (70%) or more than 90% of the Shares shall be owned by Sub. The Top-Up Option shall be exercisable once at any time following the Acceptance Time and prior to the earlier to occur of (A) the Effective Time and (B) the termination of this Agreement in accordance with its terms. Sub may assign the Top-Up Option and its rights and obligations pursuant to this Section 1.10, in its sole discretion, to Parent.
(b) The parties shall cooperate to ensure that would be outstanding immediately after the issuance and delivery of the Top-Up Shares complies with all Shares applicable Laws, including compliance with an applicable exemption from registration under the Securities Act. If Sub wishes to be issued upon exercise of the Top-Up Option, calculated Sub shall give the Company written notice, specifying (i) the number of Shares owned by Sub, (ii) a place and a time for the closing of such purchase and (iii) the manner in which Sub intends to pay the applicable purchase price. The Company shall, as soon as practicable following receipt of such notice, deliver written notice to Sub specifying, based on a fullythe information provided by Sub in its notice, the number of Top-diluted basis (Up Shares. Prior to the Shares to be issued upon exercise closing of the purchase of the Top-Up OptionShares, upon Sub’s request, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary Company shall use its reasonable best efforts to cause its transfer agent to certify in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement writing to the contrary, the Top-Up Option shall not be exercisable (i) to the extent Sub the number of Shares issuable upon issued and outstanding (A) as of immediately prior to the exercise of the Top-Up Option would exceed and (B) after giving effect to the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise issuance of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or Shares.
(iiic) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall may be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offerpaid, without interest. Such purchase price shall be payable by Merger Subsidiary at Sub’s option, (Ai) in cash, (Bii) by executing and delivering to the Company a promissory note having a principal amount equal to the balance of the remaining aggregate purchase price, or (Ciii) any a combination thereof, provided that Sub shall use cash for at least the aggregate par value of the foregoingTop-Up Shares. The Company Board has approved such consideration for the Top-Up Shares. Any such promissory note shall bear include the following terms: (1) the maturity date shall be one (1) year after issuance, (2) the unpaid principal amount of the promissory note shall accrue simple interest at the a per annum rate of 63.00% per annum, shall mature on and (3) the first anniversary of the date of execution and delivery of such promissory note and may be prepaid in whole or in part at any time, without premium penalty or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payableprior notice.
(cd) In Parent and Sub acknowledge that the event Merger Subsidiary wishes to Shares that Sub may acquire upon exercise of the Top-Up Option shall not be registered under the Securities Act and shall be issued in reliance upon an exemption for transactions not involving a public offering. Sub agrees that the Top-Up Option, Merger Subsidiary shall deliver to and the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such be acquired upon exercise of the Top-Up Option, Merger Subsidiary intends to (if any, are being and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing ).
(e) The obligation of the Company to deliver Top-Up Shares may include upon the exercise of the Top-Up Option is subject to the conditions that (i) no provision of any legends required 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 Shares in respect of such exercise, (ii) due to the exercise of the Top-Up Option, the number of Shares owned by applicable securities lawsParent, Sub and their Affiliates will constitute more than ninety percent (90%) of the number of Shares that will be outstanding on a fully-diluted basis immediately after the issuance of the Top-Up Shares, and (iii) Sub has accepted for payment all Shares validly tendered in the Offer and not withdrawn.
Appears in 3 contracts
Samples: Merger Agreement (Cubist Pharmaceuticals Inc), Merger Agreement (Adolor Corp), Merger Agreement (Cubist Pharmaceuticals Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary the Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), ) to purchase from that number of Shares (the Company, up “Top-Up Option Shares”) equal to the number of authorized and unissued Shares, the lowest number of Shares that, when added to the number of Shares owned by Merger Subsidiary the Purchaser at the time of exercise such exercise, shall constitute one (1) Share more than ninety percent (90%) of the Shares then outstanding, on a fully diluted basis, at a price per Top-Up Option Share equal to the Offer Consideration, payable (at the Purchaser’s option) in shares of Purchaser Common Stock or cash in an amount equal to the value of the Offer Consideration; provided, however, that the Top-Up OptionOption shall not be exercisable, constitutes one Share unless immediately after such exercise the Purchaser would own more than ninety percent (90% %) of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Optionthen outstanding, calculated on a fully-fully diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is basis; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodfurther, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent doing so would cause the number merger not to qualify as a reorganization within the meaning of Shares issuable upon exercise Section 368(a) of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payableCode.
(cb) In the event Merger Subsidiary wishes to The Purchaser may exercise the Top-Up Option, Merger Subsidiary shall deliver in whole but not in part, at any one time after the occurrence of a Top-Up Exercise Event and prior to the Company Effective Time. For purposes of this Agreement, a notice (the “Top-Up Notice”Exercise Event” shall occur if the Purchaser shall have accepted at least a majority of the Shares then outstanding, on a fully diluted basis, for exchange pursuant to the Offer (including, without limitation, any subsequent offering that the Purchaser may elect to extend pursuant to the terms and conditions of this Agreement) setting forth (i) but constituting, together with the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to owned by the Top-Up Option and Purchaser at the time of such acceptance, less than ninety percent (ii90%) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possibleoutstanding, on the same day as) the issuance of the Top-Up Sharesa fully diluted basis.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 3 contracts
Samples: Merger Agreement (Point 360), Merger Agreement (New 360), Merger Agreement (DG FastChannel, Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary the Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Top Up Option”), exercisable only after acceptance by the Purchaser of, and payment for, Shares tendered in the Offer and thereafter upon the terms and conditions set forth in this Section 2.4, to purchase from purchase, for consideration per Top Up Option Share equal to the CompanyOffer Price, up to the that number of authorized and unissued newly issued Shares (the “Top Up Option Shares, ”) equal to the number of Shares that, when added to the number of Shares owned by Merger Subsidiary at Parent and the time of exercise Purchaser immediately following the consummation of the Top-Up OptionOffer, constitutes shall constitute one Share share more than 90% of the Shares that would be then outstanding immediately on a fully diluted basis (after giving effect to the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Top Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c)Shares but excluding from Purchaser’s ownership, in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of but not from the outstanding Shares, Shares tendered pursuant to guaranteed delivery procedures that have not yet been delivered in settlement or satisfaction of such guarantee); provided provided, however, that notwithstanding anything in this Agreement to the contrary, (i) that the Top-Up Option shall not be exercisable unless, immediately after such exercise and the issuance of Shares pursuant thereto, the Short Form Threshold would be reached (iassuming the issuance of the Top-Up Option Shares) and (ii) in no event shall the Top Up Option be exercisable to the extent the number of Shares issuable upon the exercise of the Top-Top Up Option would exceed the number of the Company’s then authorized but and unissued Shares (including Shares held in the treasury of the Company).
(b) In the event that the Purchaser wishes to exercise the Top Up Option, Parent shall give the Company three (3) Business Days’ prior written notice specifying the number of Shares that are owned by Parent and unreserved the 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 to the Purchaser specifying the number of Top Up Option Shares. At the closing of the purchase of the Top Up Option Shares, Parent or the Purchaser shall pay to the Company an aggregate purchase price equal to the product of (i) the number of Top Up Option Shares, multiplied by (ii) unless immediately following the exercise Offer Price as follows: (A) the portion of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price par value of the Top Up Option Shares shall be paid for each Share in cash and (B) the Offer, without interest. Such balance of the remaining aggregate purchase price shall may be payable by Merger Subsidiary paid (A1) in cash, cash or (B2) by executing and delivering to the Company a promissory note having a principal amount equal to the balance of the remaining aggregate purchase price, or (C) any some combination of the foregoingthereof. Any such promissory note shall bear be on terms as provided by Parent or Purchaser to the Company, which terms shall include the following: (w) the principal amount and accrued interest under the promissory note shall be payable upon five (5) Business Days following the demand of the Company therefor, (x) the unpaid principal amount of the promissory note will accrue simple interest at a per annum rate equal to the short-term applicable federal rate of 6% per annum, shall mature on at the first anniversary of the date of execution and delivery of time such promissory note is executed and delivered, (y) the promissory note may be prepaid in whole or in part at any time, without premium penalty or penalty; provided, however, that upon any Event of Default, all prior notice and (z) the unpaid principal amount and accrued interest thereunder under the promissory note shall immediately become due and payablepayable in the event that there is a failure to pay interest on the promissory note as provided therein and such failure continues for a period of 30 days after written notice from the Company. The Company, Parent and Purchaser 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 Purchaser of the Top Up Option, any Shares issued upon exercise of the Top Up Option or the promissory note referred to in this Section 2.4(b).
(c) In Parent and the event Merger Subsidiary wishes to exercise Purchaser acknowledge that the Top-Top Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Option Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such Purchaser may acquire upon exercise of the Top-Top Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsthe Purchaser represent and warrant to the Company that the Purchaser is, warrants and or will be upon the purchase of the Top Up Option Shares, an “Accredited Investor,” as defined in Rule 501 of Regulation D under the Securities Act. The Purchaser agrees that the Top-Top Up Option is being, and the Top-Top Up Option Shares to be acquired upon exercise of the Top Up Option are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 3 contracts
Samples: Merger Agreement, Merger Agreement (Quest Diagnostics Inc), Merger Agreement (Celera CORP)
Top-Up Option. (a) Subject to Sections Section 1.04(b) and 1.04(c), (c) the Company grants to Merger Subsidiary Sub an irrevocable option, for so long as this Agreement has not been terminated pursuant to the provisions hereof and exercisable only on the terms and subject to the conditions set forth in this Agreement (the “Top-Up Option”), to purchase from the Company, up Company at a price equal to the Offer Price paid in the Offer, the lowest number of authorized and unissued Shares, the number of Shares that, when added to the number of Shares Shares, directly or indirectly, owned by Merger Subsidiary Parent or Sub or their Affiliates at the time of exercise of the Top-Up Option, constitutes one Share more than 90% of the Shares on a Fully Diluted Basis that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis Option (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary Sub in accordance with Section 1.04(c)) only once, in whole or whole, but not in part, only once, at any time during the 10 ten (10) Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary Sub shall own as of such time less than 90% of the outstanding SharesShares on a Fully Diluted Basis; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock Shares owned in the aggregate by Parent and Merger Subsidiary Sub constitutes at least one share Share more than 90% of the number of shares of Company Common Stock Shares on a Fully Diluted Basis that would be outstanding immediately after the issuance of all shares of Company Common Stock subject Shares to such be issued upon exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied, (iv) on or after the earlier of (A) the Effective Time and (B) the termination of this Agreement in accordance with its terms, (v) to the extent that the issuance of the Top-Up Option Shares would require approval of the Company’s shareholders under Nasdaq Global Market Rule 4350, or (vi) if any applicable Law shall be in effect that has the effect of enjoining or otherwise prohibiting the exercise of the Top-Up Option or the issuance and delivery of the Top-Up Option Shares. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the OfferOffer Price, without interest. Such purchase price shall be payable by Merger Subsidiary Sub (A) in cashcash or by wire transfer or cashier’s check, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% per annumthe 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, that upon any Event of Default, all principal penalty and accrued interest thereunder shall immediately become due and payablehave no other material terms.
(c) In the event Merger Subsidiary Sub wishes to exercise the Top-Up Option, Merger Subsidiary Sub shall deliver to give the Company a at least two (2) Business Days’ prior written notice (the “Top-Up Notice”) setting forth (i) the number of Shares, directly or indirectly, owned by Parent and Sub at the time of such notice (giving effect to the acceptance of Shares in the Offer), (ii) the number of Top-Up Shares that Merger Subsidiary Sub intends to purchase pursuant to the Top-Up Option and (iiiii) the place and time at manner in which Sub intends to pay the closing of the applicable purchase of such Top-Up Shares by Merger Subsidiary is to take placeprice. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary Sub that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary Sub intends to (and Merger Subsidiary Sub shall, and Parent shall cause Merger Subsidiary Sub to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law the MBCA as contemplated by Section 9.058.05. At the closing of the purchase of the Top-Up Shares, which shall take place at the location specified in Section 2.01(d), Parent and Merger Subsidiary Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate Sub certificates representing the Top-Up Shares or, at Parent’s or Merger SubsidiarySub’s request or otherwise if the Company does not then have certificated shares of Company Common StockShares, the applicable number of non-certificated shares of Company Common Stock Shares represented by book-entry. The parties hereto agree to use their commercially reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law the MBCA as contemplated by Section 9.05 8.05 as close in time as possible practicable to (including, to the extent possiblepracticable, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary Sub understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an applicable exemption thereunder for transactions not involving a public offeringthereunder. Each of Parent and Merger Subsidiary representsSub represent and warrant to the Company that Sub is, warrants and will be upon the purchase of the Top-Up Option Shares, an “Accredited Investor,” as defined in Rule 501 of Regulation D under the 1933 Act. Sub agrees that the Top-Up Option is being, and the Top-Up Shares to be acquired upon exercise of the Top-Up Option, if any, are being and will be, be acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 3 contracts
Samples: Merger Agreement (Mueller Industries Inc), Merger Agreement (Tecumseh Products Co), Merger Agreement (Tecumseh Products Co)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and subject to the conditions set forth in this Agreement, to purchase from the Company, up at a price per share equal to the Offer Price paid in the Offer that number of authorized and unissued newly issued Shares (the “Top-Up Shares, ”) equal to the lowest number of Shares that, when added to the number of Shares directly or indirectly owned by Merger Subsidiary Parent or Sub at the time of exercise of the Top-Up Option, constitutes shall constitute one Share share more than ninety percent (90% %) of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated Shares (determined on a fully-fully diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”basis).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is ; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, (i) the Top-Up Option shall not be exercisable (i) to the extent the for a number of Shares issuable upon in excess of the Shares authorized and unissued at the time of exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Option may not be exercised unless, following the Acceptance Time or after a subsequent offering period, eighty percent (80%) or more of the Shares shall be directly or indirectly owned by Merger Subsidiary is to take placeParent or Sub. The Top-Up Notice Option shall also include be exercisable only once at any time following the Acceptance Time and prior to the earlier to occur of (A) the Effective Time and (B) the termination of this Agreement in accordance with its terms.
(b) 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 undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such applicable exemption from registration of the Top-Up Shares under the Securities Act. If Sub wishes to exercise of the Top-Up Option, Merger Subsidiary intends to Sub shall give the Company one (1) business day prior written notice, specifying (i) the number of Shares directly or indirectly owned by Parent at the time of such notice and Merger Subsidiary (ii) a place and a time for the closing of such purchase. The Company shall, and Parent shall cause Merger Subsidiary to, as promptly soon as practicable after following receipt of such exercise) consummate notice, deliver written notice to Sub specifying, based on the Merger information provided by Sub in accordance with Section 253 its notice, the number of Delaware Law as contemplated by Section 9.05Top-Up Shares. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered the purchase price owed by Sub to the Company the consideration required therefor shall be paid to be delivered in exchange for the Top-Up Shares, and the Company shall cause (A) in cash, by wire transfer or cashier’s check or (B) by issuance by Sub to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur a promissory note on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, terms reasonably satisfactory to the extent possible, on the same day as) the issuance of the Top-Up SharesCompany.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 3 contracts
Samples: Merger Agreement (Covidien Group S.a.r.l.), Merger Agreement (Vnus Medical Technologies Inc), Merger Agreement (Covidien PLC)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), to purchase from exercisable only upon the Company, up terms and subject to the conditions set forth herein, 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 lesser of (x) the lowest number of Company Shares that, when added to the number of Company Shares owned by Merger Subsidiary Parent, Purchaser and their respective Subsidiaries and Affiliates at the time of exercise of the Top-Up Optionsuch exercise, constitutes one Share shall constitute ten thousand (10,000) shares more than 90% of the Company Shares that would be then outstanding immediately (after giving effect to the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis Option Shares) and (the y) an aggregate number of Company Shares that is equal to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 9019.9% of the Company Shares issued and outstanding Sharesas of the date hereof; provided provided, however, that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable unless, (i) immediately prior to such exercise, Parent, Purchaser and their respective Subsidiaries and Affiliates own more than 80% of the extent Company Shares then outstanding and (ii) immediately after such exercise and the issuance of Company Shares pursuant thereto, Parent, Purchaser and their respective Subsidiaries and Affiliates own more than 90% of the Company Shares then outstanding; and provided, further, that in no event shall the Top-Up Option be exercisable for a number of Company Shares issuable upon in excess of the Company’s total authorized and unissued Company Shares.
(b) Provided that no applicable Legal Requirement shall prohibit the exercise of the Top-Up Option would exceed or the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise issuance of the Top-Up OptionOption Shares pursuant thereto, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to or otherwise make such exercise of the Topor issuance illegal, Purchaser may exercise and re-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to exercise the Top-Up Option shall be determined by multiplying multiple times, in whole but not in part, at any time or times after the number of such Shares by an amount equal Acceptance Time and prior to the price paid for each Share in earlier to occur of (i) the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary Effective Time and (Aii) in cash, (B) by executing and delivering the termination of this Agreement pursuant to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payableSection 7.
(c) In the event Merger Subsidiary Each time that Purchaser wishes to exercise the Top-Up Option, Merger Subsidiary Purchaser shall deliver send to the Company a written notice (the a “Top-Up Exercise Notice”) setting forth (i) specifying the number denominations of the certificate or certificates evidencing the Top-Up Option Shares that Merger Subsidiary intends 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 and (ii) the place and time at which the closing of the purchase of such a “Top-Up Shares by Merger Subsidiary is to take placeClosing”). The Company shall, promptly after receipt of a Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary thatExercise Notice, as promptly as practicable following such exercise deliver a written notice to the Purchaser confirming the number of the Top-Up Option, Merger Subsidiary intends to (Option Shares and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05aggregate purchase price therefore. At the closing of the purchase of the each Top-Up SharesClosing, Parent and Merger Subsidiary 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 SharesOption Shares 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 Closing, or (C) any combination thereof. At each Top-Up Closing, the Company shall cause to be issued to Merger Subsidiary Purchaser a certificate or certificates representing the Top-Up Option Shares or, issuable at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the such Top-Up Closing. Certificates representing Company Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 connection with Section 253 of Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends that are required by applicable federal or state securities laws.
Appears in 3 contracts
Samples: Merger Agreement (Biosite Inc), Merger Agreement (Biosite Inc), Merger Agreement (Beckman Coulter Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 1.04, to purchase from the Company, up at a price per share equal to the Offer Price paid in the Offer that number of authorized and unissued newly issued shares of Common Stock (the “Top-Up Shares, ”) equal to the lowest number of Shares shares of Common Stock that, when added to the number of Shares shares of Common Stock owned by Merger Subsidiary Parent and its Subsidiaries at the time of exercise of the Top-Up Option, constitutes shall constitute one Share share more than 9080% of the Shares that would be shares of Common Stock outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated Shares on a fully-fully diluted basis (the Shares to be issued upon which assumes conversion or exercise of all derivative securities regardless of the Top-Up Optionconversion or exercise price, the “Top-Up Shares”vesting schedule or other terms and conditions thereof).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary. Upon Parent’s request, the Top-Up Option Company shall not be exercisable (i) use its reasonable best efforts to the extent cause its transfer agent to certify in writing to Parent the number of Shares issuable upon shares of Common Stock issued and outstanding as of immediately prior to the exercise of the Top-Up Option would exceed and after giving effect to the number issuance of authorized the Top-Up Shares. The Top-Up Option shall be exercisable only once, in whole but unissued and unreserved Sharesnot in part, (ii) unless immediately at any time following the Offer Closing and prior to the earlier to occur of (A) the Effective Time and (B) the termination of this Agreement in accordance with its terms.
(b) In the event Merger Sub wishes to exercise of the Top-Up Option, Merger Sub shall deliver to the Company written notice (the “Top-Up Notice”), specifying (i) the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes its Subsidiaries at least one share more than 90% the time of such notice (giving effect to the number Offer Closing) and (ii) a place and a time for the closing of shares of such purchase. The Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise shall, as soon as practicable following receipt of the Top-Up OptionNotice, or (iii) unless deliver written notice to Merger Sub specifying, based on the Minimum Condition shall have been satisfiedinformation provided by Merger Sub in its notice, the number of Top-Up Shares to be purchased by Merger Sub. The At the closing of the purchase of Top-Up Shares, the aggregate purchase price payable owed by Merger Sub to the Company for the Top-Up Shares being purchased shall be paid to the Company at Parent’s election, either (i) entirely in cash, by Merger Subsidiary pursuant wire transfer of same-day funds or (ii) by (A) paying 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 shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, and (B) by executing and delivering issuing to the Company a promissory note having a principal amount equal to the aggregate purchase price, or price pursuant to the Top-Up Option less the amount paid in cash pursuant to the preceding clause (CA) any combination of (the foregoing“Promissory Note”). Any such promissory note The Promissory Note (i) shall bear simple interest at the a rate of 6% five percent (5%) per annum, 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 delivery of such promissory note and Merger Sub, (iv) may be prepaid prepaid, at any time, in whole or in part, without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (iiv) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take placeshall have no other material terms. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stockshares, the applicable number of nonBook-certificated shares of Company Common Stock represented Entry Shares. Such certificates or Book-Entry Shares may include any legends that are required by book-entryfederal or state securities Laws. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.0110.07, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 3 contracts
Samples: Merger Agreement (Campbell Thomas J), Merger Agreement (Michael Baker Corp), Merger Agreement (Michael Baker Corp)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 1.10, to purchase from at a price per share equal to the Company, Offer Price paid in the Offer up to the that number of authorized and unissued newly issued shares of Company Common Stock (the “Top-Up Shares, ”) equal to the lowest number of Shares shares of Company Common Stock that, when added to the number of Shares shares of Company Common Stock directly or indirectly owned by Merger Subsidiary the Parent or the Sub at the time of exercise of the Top-Up Option, constitutes shall constitute one Share share more than 90% of the Shares that would be shares of Company Common Stock outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated Shares (determined on a fully-“fully diluted basis basis” (the Shares to be issued upon which assumes conversion or exercise of all derivative securities regardless of the Top-Up Optionconversion or exercise price, the “Top-Up Shares”vesting schedule or other terms and conditions thereof).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is ; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, (i) the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the for a number of shares of Company Common Stock that would be outstanding immediately after in excess of the issuance of all shares of Company Common Stock subject to such authorized and unissued at the time of exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares Option may not be exercised unless, following the time of acceptance by Merger Subsidiary is to take placethe Sub of shares of Company Common Stock tendered in the Offer or after a subsequent offering period, eighty-five percent (85%) or more of the shares of Company Common Stock shall be directly or indirectly owned by the Parent or the Sub. The Top-Up Notice Option shall also include be exercisable once at any time following the Acceptance Date and prior to the earlier to occur of (a) the Effective Time and (b) the termination of this Agreement in accordance with its terms.
(b) 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 undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such applicable exemption from registration of the Top-Up Shares under the Securities Act. If Sub wishes to exercise of the Top-Up Option, Merger Subsidiary intends to Sub shall give the Company one business day prior written notice, specifying (i) the number of shares of Company Common Stock directly or indirectly owned by the Parent at the time of such notice and Merger Subsidiary (ii) a place and a time for the closing of such purchase. The Company shall, and Parent shall cause Merger Subsidiary to, as promptly soon as practicable after following receipt of such exercise) consummate notice, deliver written notice to Sub specifying, based on the Merger information provided by Sub in accordance with Section 253 its notice, the number of Delaware Law as contemplated by Section 9.05Top-Up Shares. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered the purchase price owed by Sub to the Company the consideration required therefor shall be paid to be delivered in exchange for the Top-Up Shares, and the Company shall cause (i) in cash, by wire transfer or cashier’s check or (ii) by issuance by Sub to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur a promissory note on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, terms reasonably satisfactory to the extent possible, on the same day as) the issuance of the Top-Up SharesCompany.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Genzyme Corp), Merger Agreement (Bioenvision Inc)
Top-Up Option. (a) Subject Prior to Sections 1.04(bthe 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 1.04(c)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 grants to Merger Subsidiary Acquisition Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 1.4, to purchase from the CompanyCompany the number of newly-issued, up fully paid and non-assessable shares of Company Common Stock (the “Top-Up Shares”) equal to the number of authorized and unissued Shares, the number shares of Shares Company Common Stock that, when added to the number of Shares shares of Company Common Stock owned by Merger Subsidiary Parent or Acquisition Sub at the time of exercise of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be are then issued and outstanding immediately after taking into account the issuance of all shares of Company Common Stock subject to such be issued upon exercise of the Top-Up Option.
(b) The Top-Up Option shall be exercised by Acquisition Sub from and after the Acceptance Time and prior to the earlier to occur of (1) the Effective Time and (2) the valid termination of this Agreement. The Top-Up Option may be exercised by Acquisition Sub, if: (i) the 251(h) Inapplicable Determination has been made; (ii) all of the Conditions to the Offer have been satisfied or (to the extent permitted) waived; (iii) at the time of exercise of the Top-Up Option, the number of shares of Company Common Stock owned by Parent or Acquisition Sub immediately following the Acceptance Time does not constitute at least one share more than 90% of the number of shares of Company Common Stock that are then issued and outstanding; (iiiiv) unless the Minimum Condition exercise of the Top-Up Option would result in Parent or Acquisition Sub owning at least one share more than 90% of the number of shares of Company Common Stock that are then issued and outstanding taking into account the issuance of all shares of Company Common Stock to be issued upon exercise of the Top-Up Option; and (v) the exercise of the Top-Up Option in accordance with this Section 1.4 would not violate any applicable Legal Requirements. The Top-Up Option shall have been satisfiednot be exercised if the number of shares of the Company Common Stock issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued shares of the Company Common Stock that are not reserved or otherwise committed to be issued. The Top-Up Option shall not be exercised if Acquisition Sub has not accepted for payment all shares of Company Common Stock validly tendered in the Offer and not withdrawn.
(c) The aggregate purchase price payable for the Top-Up Shares shares of Company Common Stock being purchased by Merger Subsidiary Acquisition Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such shares by the Offer Price. Acquisition Sub shall pay the Company a portion of the purchase price equal to the aggregate par value of the Top-Up Shares in cash by an wire transfer of immediately available funds. The balance of such purchase price may be paid by Acquisition Sub, at its election: (1) entirely in cash, by wire transfer of immediately available funds; (2) by executing and delivering to the Company a full recourse promissory note having a principal amount equal to the price paid for each Share balance of the purchase price, or (3) partly in the Offer, without interest. Such purchase price shall be payable cash and partly by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination balance of the foregoingpurchase price not paid in cash. Any such promissory note note: (I) shall bear interest at the rate of 6% per annum, be executed by Parent and Acquisition Sub; (II) shall mature be due and payable on the first anniversary of the date of execution and delivery thereof; (III) shall bear simple interest at the rate of such 3% per annum, payable in arrears at the time the promissory note is repaid; (IV) shall be full recourse against Parent and Acquisition Sub; (V) may be prepaid prepaid, in whole or in part, at any time without premium or penalty; provided, however, (VI) shall provide that upon any Event of Default, all the unpaid principal amount and accrued interest thereunder under the promissory note shall immediately become due and payablepayable in the event that (a) Parent or Acquisition 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 Acquisition Sub files or has filed against it any petition under any bankruptcy or insolvency Legal Requirements or makes a general assignment for the benefit of creditors and shall have no other material terms; and (VII) shall have no other material terms.
(cd) 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 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.
(e) In the event Merger Subsidiary Acquisition Sub wishes to exercise the Top-Up Option, Merger Subsidiary Acquisition Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth forth: (i) the number of Top-Up Shares that Merger Subsidiary manner in which Acquisition Sub intends to pay the applicable purchase pursuant to the Top-Up Option price; and (ii) the place and time at which the closing of the purchase of such Top-Up Shares shares of Company Common Stock by Merger Subsidiary 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 that are then issued and outstanding and the number of Top-Up Notice Shares as of such time, and, upon Parent’s request, the Company shall also include an undertaking signed by Parent use commercially reasonable efforts to cause its transfer agent to certify in writing to Acquisition Sub the number of shares of Company Common Stock issued and Merger Subsidiary that, outstanding as promptly as practicable following such of immediately prior to the exercise of the Top-Up Option, Merger Subsidiary intends Option and after giving effect to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 issuance of Delaware Law as contemplated by Section 9.05the Top-Up Shares. At the closing of the purchase of the Top-Up Sharessuch shares of Company Common Stock, Parent and Merger Subsidiary Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Sharessuch shares, and the Company shall cause to be issued to Merger Subsidiary Acquisition Sub a certificate representing such shares.
(f) Parent and Acquisition Sub acknowledge that any Top-Up Shares issued upon exercise of the Top-Up Option shall not be registered under the Securities Act and that all such Top-Up Shares shall be issued in reliance upon an applicable exemption from registration under the Securities Act. Each of Parent and Acquisition Sub hereby represents and warrants to the Company that Parent and Acquisition Sub are, and shall be, upon the purchase of the Top-Up Shares, “accredited investors,” as defined in Rule 501 of Regulation D under the Securities Act. Acquisition Sub agrees that the Top-Up Option and the Top-Up Shares orto be acquired upon exercise of the Top-Up Option are being and shall be acquired by Acquisition Sub for the purpose of investment and not with a view to, at Parent’s or Merger Subsidiary’s request or otherwise if for resale in connection with, any distribution thereof (within the Company does not then have certificated shares meaning of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. Securities Act).
(g) The parties hereto agree to use their commercially reasonable best efforts to cause the closing of the purchase of the Top-Up Shares Shares, including the payment for such shares, to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.019.9, and if not so consummated on such day, as promptly thereafter as possible. The If the Top-Up Option is exercised, the parties hereto further agree to use their commercially reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of Delaware Law as contemplated by Section 9.05 the DGCL, subject to applicable Legal Requirements, as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent . Parent, Acquisition Sub and Merger Subsidiary understand the Company shall cooperate to ensure that any issuance of the Top-Up Shares will not be registered under is accomplished in a manner consistent with all applicable Legal Requirements.
(h) Without the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each prior written consent of Parent and Merger Subsidiary representsthe Company, warrants and agrees that the right to exercise the Top-Up Option is being, granted pursuant to this Agreement may be exercised only once and the Top-Up Shares will be, acquired shall not be assigned by Merger Subsidiary for the purpose of investment and not with a view to Parent or for resale in connection with any distribution thereof within the meaning of the 1933 ActAcquisition Sub. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities lawsattempted assignment in violation of this Section 1.4(h) shall be null and void.
Appears in 2 contracts
Samples: Merger Agreement (Maxim Integrated Products Inc), Agreement and Plan of Merger (Volterra Semiconductor Corp)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Parent and Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof option (the “Top-Up Option”), ) to purchase from the Company, up to Company the number of authorized and unissued Shares (such shares, the “Top-Up Option Shares, ”) equal to the lesser of (i) the number of Shares that, when added to the number of Shares owned by Merger Subsidiary Parent and its Subsidiaries at the time of exercise of the Top-Up Option, constitutes one Share share more than 90% of the number of Shares that would be outstanding in each class of Company Common Stock immediately after the issuance of all Shares subject to the Top-Up Option on a fully diluted basis or (ii) the aggregate number of Shares that the Company is authorized to issue under its articles of incorporation, but that are not issued and outstanding (and are not subscribed for or otherwise committed to be issued upon issued) at the time of exercise of the Top-Up Option, calculated on at a fully-diluted basis (price per share of Company Common Stock equal to the Shares to be issued upon exercise of the Offer Price. The Top-Up Option, Option shall terminate upon the “Top-Up Shares”)earlier to occur of (A) the Effective Time and (B) the termination of this Agreement in accordance with its terms.
(b) The Top-Up Option may be exercised by Parent or Merger Subsidiary in accordance with Section 1.04(c), Sub once in whole and not in part on or in part, only once, at any time during prior to the 10 fifth Business Day period following after the later of the Offer Acceptance Date, or if Time and the expiration of any Subsequent Offering Period is providedpursuant to Section 1.1(f), during if applicable, if at such time, Parent, Merger Sub or any Subsidiary of Parent or Merger Sub do not own in the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than aggregate at least 90% of the total then-outstanding Sharesshares of each class of Company Common Stock (determined on a fully diluted basis); provided provided, however, that notwithstanding anything in this Agreement the obligation of the Company to the contrary, deliver the Top-Up Option shall not be exercisable Shares is subject to the conditions that (i) to no Order of any Governmental Entity shall restrain, enjoin or otherwise prohibit the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed or the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise delivery of the Top-Up Option, the number Option Shares in respect of shares of the Company Common Stock owned such exercise; and (ii) Merger Sub has accepted for payment and paid for all Shares validly tendered in the aggregate by Parent Offer and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or not withdrawn.
(iiic) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by an amount equal to the price paid for each Share in the Offer, without interestOffer Price. Such purchase price shall may be payable paid by Parent or Merger Subsidiary Sub, at its election, either (Ai) entirely in cash, (Bii) by payment in cash of no less than $0.01 per share and payment of the balance by executing and delivering to the Company a promissory note (with full recourse to Parent) having a principal amount equal to the difference between the purchase price, price and the aggregate par value of the Top-Up Option Shares or (Ciii) any combination of the foregoingthereof. Any such promissory note shall bear interest at the applicable federal rate of 6% per annumas determined for U.S. income tax purposes, shall mature on the first anniversary of the date of execution and delivery of such promissory note and may be prepaid at any time without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(cd) In the event Merger Subsidiary wishes If they elect to exercise the Top-Up Option, Parent or Merger Subsidiary Sub shall deliver to the Company a written notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that will be owned by Parent and Merger Subsidiary intends to Sub immediately preceding the purchase pursuant to of the Top-Up Option Shares together with the number of Top-Up Option Shares, (ii) the manner in which Parent or Merger Sub intends to pay the applicable exercise price and (iiiii) the place and time at which the closing of the purchase of such the Top-Up Option Shares by Merger Subsidiary is to take place, which shall take place not later than five (5) Business Days following the Offer Acceptance Time or the expiration of any Subsequent Offering Period pursuant to Section 1.1(f). The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary thatCompany shall, as promptly soon as practicable following receipt of such exercise of notice (and in no event later than the Top-Up OptionOption closing date), Merger Subsidiary intends to (notify Parent and Merger Subsidiary shall, Sub in writing of the number of Shares then outstanding and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 number of Delaware Law as contemplated by Section 9.05Top-Up Option Shares. At the closing of the purchase of the Top-Up Option Shares, Parent and or Merger Subsidiary Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the issuance of the Top-Up Option Shares, and the Company shall cause to be issued and delivered to Parent or Merger Subsidiary Sub (as the case may be) a certificate or certificates representing the Top-Up Option Shares or, at Parent’s or Merger SubsidiarySub’s request or otherwise if the Company does not then have certificated shares of Company Common StockShares, the applicable number of non-certificated shares of Company Common Stock Shares represented by book-entryentry (“Book-Entry Shares”). The parties hereto agree to use their reasonable best efforts to cause Such certificates or Book-Entry Shares may include any legends required by applicable Laws. Without the closing prior written consent of the purchase Company, the right to exercise the Top-Up Option granted pursuant to this Agreement shall not be assigned by Parent or Merger Sub except in connection with an assignment in compliance with Section 9.10. Any attempted assignment in violation of this Section 1.4(d) shall be null and void.
(e) Parent and Merger Sub acknowledge that the Top-Up Option Shares that Merger Sub may acquire upon exercise of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsSub represent and warrant to the Company that Merger Sub is, warrants and will be upon the purchase of the Top-Up Option Shares, an “Accredited Investor,” as defined in Rule 501 of Regulation D under the Securities Act. Merger 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, if any, are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Schiff Nutrition International, Inc.), Merger Agreement (Reckitt Benckiser Group PLC)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Parent an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only upon the terms and subject to the conditions set forth in this Agreement, to purchase from the Company, at a price per share equal to the Offer Price paid in the Offer, up to the that number of authorized and unissued newly issued shares of Company Common Stock (the “Top-Up Option Shares, the number of Shares ”) that, when added to the number of Shares shares of Company Common Stock owned by Merger Subsidiary Parent (or any of its Subsidiaries) at the time of exercise of the Top-Up Option, constitutes would constitute one Share (1) share more than ninety percent (90% %) of the Shares that would be shares of Company Common Stock then outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (“on a fully-diluted basis” meaning the Shares number of shares of Company Common Stock then issued and outstanding, plus all shares of Company Common Stock that the Company may be required to be issued upon exercise issue as of such date pursuant to options (whether or not then vested or exercisable), rights, convertible or exchangeable securities (only to the extent then convertible or exchangeable into shares of Company Common Stock) or similar obligations then outstanding, and after giving effect to the issuance of the Top-Up OptionOption Shares, but excluding from Parent’s (and any of its Subsidiaries’) ownership, but not from the outstanding shares of Company Common Stock, shares of Company Common Stock tendered pursuant to guaranteed delivery procedures that have not yet been delivered in settlement or satisfaction of such guarantee) (the “Short Form Threshold”). Parent may assign the Top-Up Shares”)Option and its respective rights and obligations pursuant to this Section 1.3, in its sole discretion, to any of its Subsidiaries.
(b) The Top-Up Option may be exercised by Merger Subsidiary at any time upon and after consummation of the Offer and prior to the earlier of (i) the Effective Time and (ii) the termination of this Agreement in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is its terms; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contraryhowever, the Top-Up Option shall not be exercisable (i) to the extent (A) the number of Shares issuable upon shares of Company Common Stock subject to the Top-Up Option exceeds the number of authorized and unissued shares of Company Common Stock available for issuance (less the maximum number of shares of Company Common Stock potentially necessary for issuance with respect to outstanding Company Options and other obligations of the Company), (B) any Restraint or Law shall prohibit the exercise of the Top-Up Option would exceed or the number delivery of authorized but unissued and unreserved the Top-Up Option Shares, (iiC) unless immediately following after such exercise and issuance of shares of Company Common Stock pursuant thereto, the Short Form Threshold would not be reached or (D) Merger Sub has not accepted for payment all shares of Company Common Stock validly tendered in the Offer (or during any subsequent offering period) and not validly withdrawn. The Top-Up Option shall be exercisable only once.
(c) In the event that Parent wishes to exercise of the Top-Up Option, the number of shares of Parent shall give the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of written notice (i) specifying the number of shares of Company Common Stock that would are or will be outstanding owned by Parent or any of its Subsidiaries or Merger Sub immediately after following the issuance Acceptance Time (or any closing relating to a subsequent offering period), (ii) specifying a place and a time for the closing of all shares of Company Common Stock subject the purchase and (iii) undertaking to such exercise effect the Merger pursuant to Article II (including the proviso in Section 2.2) as promptly as practicable following the acquisition of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfiedOption Shares. The aggregate purchase price payable for Company shall, as soon as practicable following receipt of such notice, deliver written notice to Parent specifying the estimated number of Top-Up Shares being purchased by Merger Subsidiary pursuant Option Shares. Prior to the closing of the purchase of the Top-Up Option Shares, the Company shall be determined by multiplying (A) cause its transfer agent to certify in writing to Parent the number of such Shares by an amount equal issued and outstanding (x) as of immediately prior to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination closing of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (iiy) after giving effect to the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise issuance of the Top-Up OptionOption Shares and, Merger Subsidiary intends to (and Merger Subsidiary shallB) based thereon, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate determine the Merger in accordance with Section 253 final number of Delaware Law as contemplated by Section 9.05Top-Up Option Shares. At the closing of the purchase of the Top-Up Option Shares, (i) Parent and Merger Subsidiary shall pay (or cause to be delivered paid) to the Company the consideration required to be delivered in exchange aggregate purchase price payable for the Top-Up Shares, and Option Shares (in an amount equal to the Company shall cause to be issued to Merger Subsidiary a certificate representing product of (x) the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree purchased pursuant to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares Option 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 execution and delivery of a promissory note having a principal amount equal to occur on the same day aggregate purchase price for the Top Up Option Shares, or any combination thereof; provided, however, that a minimum portion equal to the product of (1) the $0.05 par value per share of Company Common Stock and (2) the number of shares of Company Common Stock purchased pursuant to the Top-Up Notice is deemed received Option, shall be paid in cash), and (ii) the Company shall cause the Top-Up Option Shares to be issued to Parent (or any of its Subsidiaries designated by Parent), represented by either certificates or book-entry shares, at the sole option of Parent. Any promissory note issued pursuant to the immediately preceding sentence shall be in the form attached as Annex B hereto and shall include the following terms: (A) the maturity date shall be one year after issuance, (B) the unpaid principal amount of the promissory note shall accrue simple interest at a per annum rate of 1.5% per annum, (C) the promissory note may be prepaid in whole or in part at any time, without penalty or prior notice, (D) the promissory note shall be with full recourse and shall be fully secured by the Company pursuant Top-Up Option Shares, (E) the promissory note shall be nonnegotiable and nontransferable (other than to Section 12.01, Affiliates) and if not so consummated on such day, as promptly thereafter as possible(F) the promissory note shall have no other material terms. The parties further agree will cooperate to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) ensure that the issuance of the Top-Up SharesOption Shares is accomplished consistent with applicable Laws, including compliance with an applicable exemption from registration under the Securities Act. The Top-Up Option shall terminate concurrently with the termination of this Agreement in accordance with its terms.
(d) Parent and Merger Subsidiary understand acknowledges that the Top-Up Option Shares will which Parent (or any of its Subsidiaries) may acquire upon exercise of the Top-Up Option shall not be registered under the 1933 Act Securities Act, and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is beingOption, and the Top-Up Option Shares will beto be acquired upon exercise of the Top-Up Option, if any, are being and shall be acquired by Merger Subsidiary 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 1933 Securities Act). Any certificates evidencing Each of Parent and Merger Sub hereby represents and warrants to the Company that Parent is, and will be, upon the purchase of the Top-Up Shares may include any legends required by applicable securities lawsOption Shares, an “accredited investor,” as defined in Rule 501 of Regulation D under the Securities Act.
Appears in 2 contracts
Samples: Agreement and Plan of Merger (Fidelity National Financial, Inc.), Agreement and Plan of Merger (Alexanders J Corp)
Top-Up Option. (ai) Subject to Sections 1.04(bSection 1.4(a)(ii) and 1.04(c)Section 1.4(a)(iii) hereof, the Company grants to Merger Subsidiary Parent and Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof assignable and irrevocable option (the “Top-Up Option”), ) to purchase from the Company, up to Company the number of authorized and unissued newly-issued shares of Common Stock (the “Top-Up Option Shares, ”) equal to the lesser of (i) the number of Shares shares of Common Stock that, when added to the number of Shares shares of Common Stock owned by Merger Subsidiary Parent or Purchaser at the time of exercise of the Top-Up Option, constitutes one (1) Share more than 90% of the Shares that would be of Common Stock then outstanding immediately on a fully diluted basis (after giving effect to the issuance of all Shares the Top-Up Option Shares) or (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 upon issued) at the time of exercise of the Top-Up Option. The Top-Up Option shall be exercisable only once, calculated on a fully-diluted basis at such time as Purchaser owns at least eighty percent (80%) of the Shares to be issued upon shares of Common Stock then outstanding and provide notice of exercise of the Top-Up Option, Option prior to the “Top-Up Shares”)tenth (10) Business Day after the later of the expiration date of the Offer or the expiration date of any subsequent offering period.
(bii) The Subject to the last sentence of Section 1.4(a)(i), the Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c)Parent or Purchaser, in whole or in part, only once, at any time during the 10 Business Day period following at or after the Acceptance Date, or if any Subsequent Offering Period is Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement pursuant to Article VIII; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable unless, immediately after such exercise and the issuance of shares of Common Stock pursuant thereto, Parent and Purchaser will collectively hold at least 90 percent (i90%) to of the extent Shares of Common Stock then outstanding (assuming the number of Shares issuable upon exercise issuance of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied). The aggregate purchase price payable for the Top-Up Shares shares of Common Stock being purchased by Merger Subsidiary Parent or Purchaser pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by an amount equal to the price paid for each Share in the Offer, without interestOffer Price. Such purchase price shall may be payable paid by Merger Subsidiary (A) Parent or Purchaser, at its election, either entirely in cash, (B) cash or by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 63% per annum, shall mature on not later than the first fifth anniversary of the date of execution and delivery of such promissory note and may be prepaid without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(ciii) In the event Merger Subsidiary Parent or Purchaser wishes to exercise the Top-Up Option, Merger Subsidiary Parent or Purchaser shall deliver to the Company a at least one (1) Business Day’s prior written notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares shares of Company Common Stock that Merger Subsidiary Parent or Purchaser intends to purchase pursuant to the Top-Up Option Option, (ii) the manner in which Parent or Purchaser intends to pay the applicable exercise price and (iiiii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary Parent or Purchaser is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Sharessuch Shares of Common Stock, Parent and Merger Subsidiary or Purchaser shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up such Shares, and the Company shall cause to be issued to Merger Subsidiary Parent or Purchaser (as the case may be) a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if such Shares. The obligation of the Company does not then have certificated shares to issue Shares in connection with the exercise of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is beingsubject to the conditions that (x) no provision of any applicable Law and no judgment, and injunction, order or decree shall prohibit the exercise of the Top-Up Shares will be, acquired by Merger Subsidiary for Option or the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning delivery of the 1933 Act. Any certificates evidencing Shares in respect of such exercise, (y) the issuance of Shares pursuant to the Top-Up Option would not require approval of the Company’s stockholders under applicable Law or regulation (including, without limitation, NASDAQ National Market rules and regulations, including Section 4350) and (z) Parent or Purchaser has accepted for payment and paid for all Shares may include validly tendered in the Offer and not withdrawn. The parties shall cooperate to ensure that the issuance of the Shares upon exercise of the Top-Up Option is accomplished in a manner consistent with all applicable legal requirements of any legends required by Governmental Entity, including compliance with an applicable securities lawsexemption from registration of the Shares under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”).
Appears in 2 contracts
Samples: Merger Agreement (Barrier Therapeutics Inc), Merger Agreement (Stiefel Laboratories, Inc.)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby irrevocably grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof option (the “Top-Up Option”), exercisable only after the acceptance by Purchaser of, and payment for, Shares tendered in the Offer, to purchase from that number (but not less than that number) of Shares (the Company, up “Top-Up Shares”) as is equal to the number of authorized and unissued Shares, the lowest number of Shares that, when added to the number of Shares owned directly or indirectly by Merger Subsidiary Parent or Purchaser at the time of exercise of the Top-Up Optionsuch exercise, constitutes shall constitute one Share share more than 90% of the total Shares that would be then outstanding immediately after (assuming the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on Shares) at a fully-diluted basis (price per Share equal to the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is Offer Price; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, (i) the Top-Up Option shall not be exercisable (i) to only once, at such time as Parent and Purchaser, directly or indirectly, own at least 80% of the extent the total number of Shares issuable upon exercise then outstanding and on or prior to the 10th Business Day after the Expiration Date or the expiration date of any subsequent offering period; (ii) in no event shall the Top-Up Option would exceed the be exercisable for a number of Shares in excess of the Company’s then authorized but and unissued shares of Common Stock (including, for purposes of this Section 1.05, as authorized and unreserved Sharesunissued shares of Common Stock any Shares held in the treasury of the Company); (iii) Purchaser shall, (ii) unless immediately following concurrently with the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering give written notice to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Optionexercise, Merger Subsidiary Purchaser intends to (and Merger Subsidiary Purchaser shall, and Parent shall cause Merger Subsidiary Purchaser to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware the Corporation Law as contemplated by Section 9.05. At 2.09; and (iv) the closing Top-Up Option may not be exercised if any provision of applicable law (which, for the purchase avoidance of doubt, does not include the rules and regulations of NASDAQ which shall not apply) or any judgment, injunction, order or decree shall prohibit, or require any action or consent, approval, authorization or permit of any Governmental Entity or the Company’s stockholders in connection with the exercise of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to Option or the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase delivery of the Top-Up Shares to occur on the same day that the in respect of such exercise, which action, consent, approval, authorization or permit has not theretofore been obtained or made, as applicable.
(b) Any certificates evidencing Top-Up Notice is deemed received Shares may include any legends required by applicable securities laws.
(c) Parent and Purchaser understand that the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance Shares that Purchaser may acquire upon exercise of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 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. Each of Parent and Merger Subsidiary representsPurchaser represent and warrant to the Company that Purchaser is, warrants and or will be upon exercise of the Top-Up Option, an “accredited investor” (as defined in Rule 501 of Regulation D promulgated under the Securities Act). Purchaser agrees that the Top-Up Option is being, and the Top-Up Shares to be acquired upon exercise thereof are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Claymont Steel Holdings, Inc.), Merger Agreement (Evraz Group S.A.)
Top-Up Option. (ai) Subject to Sections 1.04(bSection 1.4(a)(ii), Section 1.4(a)(iii) and 1.04(c)Section 1.4(a)(iv) hereof, the Company grants to Merger Subsidiary an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof Parent and Purchaser a non-assignable and irrevocable option (the “Top-Up Option”), ) to purchase from the Company, up to Company the number of authorized and unissued shares of Common Stock (the “Top-Up Option Shares, ”) equal to the lesser of (A) the number of Shares shares of Common Stock that, when added to the number of Shares shares of Common Stock (if any) owned by Merger Subsidiary Parent, Purchaser or their respective Affiliates at the time of exercise of the Top-Up Option, constitutes one (1) Share more than 90% of the Shares that would be of Common Stock then outstanding immediately on a fully diluted basis (after giving effect to the issuance of all Shares the Top-Up Option Shares) or (B) 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 upon issued) at the time of exercise of the Top-Up OptionOption (it being understood that for the purpose of this Section 1.4, calculated on a fully-diluted basis (the Shares shares of Common Stock authorized but not issued and outstanding shall be deemed to be issued upon exercise include, without limitation, shares of Common Stock of the Top-Up Option, Company held in the “Top-Up Shares”treasury of the Company).
(bii) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c)Parent or Purchaser, in whole or (but not in part, only once), at any time during the 10 Business Day period following after the Acceptance Date, or if any Subsequent Offering Period is Time and prior to the earlier to occur of (A) the Effective Time and (B) the termination of this Agreement pursuant to Article VIII; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not only be exercisable if: (i1) to the extent Minimum Tender Condition has been satisfied, (2) no provision of any applicable Law and no judgment, injunction, order or decree shall prohibit the number of Shares issuable upon exercise of the Top-Up Option would exceed or the number delivery of authorized but unissued and unreserved Sharesthe shares of Common Stock in respect of such exercise, (ii3) unless immediately following the exercise issuance of shares of Common Stock pursuant to the Top-Up Option, the number of shares Option would not require approval of the Company Common Stock owned Company’s stockholders under applicable Law or regulation, and (4) Parent or Purchaser has accepted for payment and paid for all Shares validly tendered in the aggregate by Parent Offer and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or not withdrawn.
(iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares shares of Common Stock being purchased by Merger Subsidiary Parent or Purchaser pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by an amount equal to the price paid for each Share in the Offer, without interestOffer Price. Such purchase price shall may be payable paid by Merger Subsidiary (A) Parent or Purchaser, at its election, either entirely in cash, (B) cash or by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of price for the foregoingTop-Up Option Shares. Any such promissory note shall bear interest at the rate of 6% interest per annumannum equal to the rate of interest publicly announced by JPMorgan Chase Bank, N.A., in the City of New York, at the time such note is paid as such bank’s prime lending rate, shall mature on not later than the first fifth anniversary of the date of execution and delivery of such promissory note and may be prepaid without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(civ) In the event Merger Subsidiary Parent or Purchaser wishes to exercise the Top-Up Option, Merger Subsidiary Parent or Purchaser shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (iA) the number of Top-Up Shares shares of Common Stock that Merger Subsidiary Parent or Purchaser intends to purchase pursuant to the Top-Up Option Option, (B) the manner in which Parent or Purchaser intends to pay the applicable exercise price and (iiC) the place and time at which the closing of the purchase of such Top-Up Shares shares by Merger Subsidiary Parent or Purchaser is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Sharessuch shares of Common Stock, Parent and Merger Subsidiary or Purchaser shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Sharessuch shares, and the Company shall cause to be issued to Merger Subsidiary Parent or Purchaser (as the case may be) a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entrysuch shares. The parties hereto agree shall cooperate to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day ensure that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance shares of Common Stock upon an exemption thereunder for transactions not involving a public offering. Each exercise of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is beingaccomplished in a manner consistent with all applicable legal requirements of any Governmental Entity, including compliance with an applicable exemption from registration of the Shares under the Securities Act of 1933, as amended, and the Top-Up Shares will be, acquired by Merger Subsidiary for rules and regulations promulgated thereunder (the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning of the 1933 “Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws”).
Appears in 2 contracts
Samples: Merger Agreement (Hampshire Group LTD), Merger Agreement (Naf Holdings Ii, LLC)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary an optionirrevocable option (the “Top-Up Option”), for so long as this Agreement has not been terminated pursuant to the provisions hereof and exercisable only in accordance with the terms and conditions set forth in this Section 2.3, to purchase that number of Shares (but not less than that number) (the “Top-Up OptionOption Shares”), to purchase from the Company, up ) equal to the number of authorized and unissued Shares, the lowest number of Shares that, when added to together with the number of Shares owned collectively owned, directly or indirectly, by Parent, Merger Subsidiary and/or their affiliates at the time of exercise of the Top-Up Optionsuch exercise, constitutes shall constitute one Share more than 90% of the total Shares that would be then outstanding immediately after (assuming the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on Option Shares) at a fully-diluted basis (the Shares to be issued upon exercise of the purchase price per Top-Up Option, Option Share equal to the “Top-Up Shares”)Offer Price.
(b) The Subject to satisfaction of all of the conditions set forth in Article VII (other than those conditions that by their nature must be satisfied on the Closing Date), if there shall not have been validly tendered in the Offer and not validly withdrawn that number of Shares which, when added to the Shares owned by Parent, Merger Subsidiary or their respective Affiliates, would represent at least 90% of the Shares outstanding (treating Shares owned by the Company as treasury stock as not outstanding) at the Acceptance Time (the “Short-Form Threshold”), then Parent shall exercise the Top-Up Option may for such number of Top-Up Option Shares as is necessary for Parent to reach the Short-Form Threshold. Moreover, the Top-Up Option shall be exercised by exercisable only once in whole and not in part and only at such time as Parent and Merger Subsidiary in accordance with Section 1.04(c)and their affiliates hold, in whole or in part, only oncethe aggregate, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% least a majority of the issued and outstanding Shares; provided that notwithstanding . Notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable exercisable: (i) to the extent the number of Shares issuable upon exercise of that the Top-Up Option Shares would exceed the number of authorized but unissued and unreserved Shares, shares of the Company’s common stock that are not reserved or otherwise committed to be issued; (ii) unless immediately following if any Law or Order then in effect shall prohibit the exercise of the Top-Up Option, Option or the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise delivery of the Top-Up Option, Option Shares; or (iii) unless if Parent or Merger Subsidiary has not accepted for payment all Shares validly tendered in the Minimum Condition shall have been satisfiedOffer and not withdrawn. The aggregate closing of the purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to of the Top-Up Option Shares shall take place at the location of the Closing specified in Section 3.1(b), and shall take place simultaneously with, or as soon as reasonably practicable after, the Acceptance Time. Without the prior written consent of the Company, the right to exercise the Top-Up Option granted pursuant to this Agreement shall not be assigned by Parent other than to a wholly owned Subsidiary of Parent, including by operation of Law or otherwise, without the prior written consent of the Company. Any attempted assignment in violation of this Section 2.3(b) shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing null and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payablevoid.
(c) In the event Merger Subsidiary wishes to that Parent shall exercise the Top-Up Option, Merger Subsidiary 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 Shares that owned by Parent, Merger Subsidiary and their affiliates at the time of such notice (giving effect to the closing of the Offer) and (ii) the manner in which Parent intends to pay the applicable purchase pursuant to price of the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Shares. Such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Exercise Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated the DGCL. The Company shall, promptly after receipt of the Top-Up Exercise Notice, deliver a written notice to Merger Subsidiary confirming, based on the information provided by Section 9.05. Parent in the Top-Up Exercise Notice, (i) the number of Shares then outstanding (assuming the issuance of the Top-Up Option Shares), and (ii) the number of Top-Up Option Shares issuable under the Top-Up Option and the aggregate purchase price therefore.
(d) At the closing Closing of the purchase of the Top-Up Option Shares, Parent subject to the terms and conditions of this Agreement, (i) the Company shall deliver to Merger Subsidiary the Top-Up Option Shares and (ii) Merger Subsidiary shall cause to be delivered to purchase each Top-Up Option Share from the Company at the consideration required to be delivered in exchange Offer Price. Payment of the aggregate purchase price for the Top-Up Shares, and the Company shall cause to Option Shares may be issued to Merger Subsidiary a certificate representing the Top-Up Shares ormade, at Parent’s or Merger Subsidiary’s request or otherwise if option, by delivery of (x) immediately available funds by wire transfer to an account designated by the Company does or (y) a combination of cash equal to an amount not then have certificated shares of Company Common Stock, less than the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase aggregate par value of the Top-Up Option Shares and a promissory note for the remainder of the purchase price for the Top-Up Option Shares. Any such promissory note shall be full recourse to occur Parent and Merger Subsidiary, shall bear interest at the applicable federal rate as determined for U.S. income tax purposes, shall mature on the same day first anniversary of the date of execution and delivery of such promissory note, may be prepaid at any time without premium or penalty and shall have no other material terms.
(e) Parent and Merger Subsidiary acknowledge that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance Subsidiary may acquire upon exercise of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 Act Securities Act, and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representshereby represents and warrants to the Company that it is, warrants and agrees that or will be upon the purchase of the Top-Up Option is beingShares, an “accredited investor”, as defined in Rule 501 of Regulation D promulgated under the Securities Act, and the that any Top-Up Option Shares will be, are being acquired by 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 1933 Securities Act. Any certificates evidencing ).
(f) The parties will cooperate and use reasonable best efforts to ensure that the issuance and delivery of the Top-Up Option Shares comply with all applicable Laws.
(g) Notwithstanding anything to the contrary contained herein, each of Parent, Merger Subsidiary and the Company agrees and acknowledges that, in any appraisal proceeding under Section 262 of the DGCL with respect to Dissenting Shares, the Surviving Corporation shall not assert that the Top-Up Option, the Top-Up Option Shares or any cash or promissory note delivered by Purchaser to the Company in payment for the Top-Up Shares may include any legends required should be considered in connection with the determination of the fair market value of the shares of Company Common Stock held by applicable securities lawsdissenting stockholders in accordance with Section 262 of the DGCL.
Appears in 2 contracts
Samples: Merger Agreement (Dune Energy Inc), Merger Agreement (Eos Petro, Inc.)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 1.04, to purchase from at a price per share equal to the Company, Common Offer Price paid in the Offer up to that number (but not less than that number) of newly issued shares of Company Common Stock (the “Top-Up Shares”) equal to the lowest number of authorized and unissued Shares, the number shares of Shares Company Common Stock that, when added to the number of Shares owned shares of Company Common Stock owned, directly or indirectly, by Parent or Merger Subsidiary Sub and their respective Subsidiaries at the time of exercise of the Top-Up Option, constitutes shall constitute no less than one Share share more than 90% of the Shares shares of Company Common Stock that would will be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) . The Top-Up Option may shall be exercised by Merger Subsidiary in accordance with Section 1.04(c)exercisable only once, in whole or but not in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is Offer Closing and prior to the earlier to occur of (A) the Effective Time and (B) the termination of this Agreement in accordance with its terms; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate owned, directly or indirectly, by Parent or Merger Sub and Merger Subsidiary constitutes at least their respective Subsidiaries shall constitute no less than one share more than 90% of the number of shares of Company Common Stock that would will be outstanding immediately after the issuance of all the Top-Up Shares; (ii) the Top-Up Option shall not be exercisable for a number of shares of Company Common Stock subject to such 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, or Option (giving effect to the shares of Company Common Stock issuable pursuant to all then-outstanding restricted stock units and any other rights to acquire Company Common Stock as if such shares were outstanding); (iii) unless the Minimum Condition Merger Sub shall have been satisfiedaccepted for payment all Shares validly tendered in the Offer and not validly withdrawn; and (iv) the exercise of the Top-Up Option and the issuance and delivery of the Top-Up Shares shall not be prohibited by any Law or Order.
(b) In the event Merger Sub wishes to exercise the Top-Up Option in accordance with Section 1.04(a), Parent shall so notify the Company, and shall set forth in such notice (i) the number of Shares expected to be owned, directly or indirectly, by Parent or Merger Sub and their respective Subsidiaries immediately preceding the purchase of the Top-Up Shares (giving effect to the Offer Closing), (ii) the number of Top-Up Shares, (iii) a place and a time for the closing of such purchase, and (iv) Merger Sub’s agreement to (and Parent’s agreement to cause Merger Sub to) consummate the Merger in accordance with the DGCL as promptly as practicable following issuance of the Top-Up Shares. The At the closing of the purchase of Top-Up Shares, the aggregate purchase price payable owed by Parent or Merger Sub to the Company for the Top-Up Shares being purchased shall be paid to the Company by Merger Subsidiary Sub, at Merger Sub’s election, either (i) entirely in cash, by wire transfer of immediately available funds to an account designated by the Company, (ii) by (A) paying in cash by wire transfer of same day funds an amount equal to not less than the aggregate par value of the Top-Up Shares and (B) issuing to the Company a promissory note in form and substance reasonably satisfactory to the Company having a principal amount equal to the aggregate purchase price pursuant to the Top-Up Option shall be determined by multiplying less the number of such Shares by an amount equal paid in cash pursuant to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary preceding clause (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price“Promissory Note”), or (Ciii) any by a combination of the foregoingmethods set forth in the preceding clauses (i) and (ii). Any such promissory note The Promissory Note (i) shall bear simple interest at the a rate of 65% per annum, (ii) shall mature on the first anniversary of the date of execution of the Promissory Note, (iii) shall be full recourse to Parent and delivery of such promissory note and Merger Sub, (iv) may be prepaid prepaid, at any time, in whole or in part, without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (iiv) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take placeshall have no other material terms. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common StockShares, the applicable number of nonBook-certificated shares of Company Common Stock represented Entry Shares. Such certificates or Book-Entry Shares may include any legends that are required by book-entryfederal or state securities Laws. The parties hereto agree shall cooperate to use their reasonable best efforts to cause the closing ensure that any issuance of the purchase Top-Up Shares is accomplished consistent with all applicable Laws.
(c) Parent and Merger Sub acknowledge that no Top-Up Shares issued upon exercise of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”) and that all such shares will be issued in reliance upon an applicable exemption thereunder from registration under the Securities Act for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsSub hereby represents and warrants to the Company that each of Parent and Merger Sub are, warrants and will be, upon the exercise of the Top-Up Option and purchase of the Top-Up Shares, an “accredited investor,” as defined in Rule 501 of Regulation D under the Securities Act. Each of Parent and Merger Sub agrees that the Top-Up Option is being, and the Top-Up Shares to be acquired upon exercise of the Top-Up Option are being and will be, be acquired by Merger Subsidiary it 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 1933 Securities Act. Any certificates evidencing ).
(d) The parties agree and acknowledge that in any appraisal proceeding to determine the fair value of any Dissenting Shares pursuant to Section 262 of the DGCL as contemplated by Section 3.03, to the fullest extent permitted by applicable Law, the Surviving Corporation shall not assert that the Top-Up Option, the issuance of the Top-Up Shares or the payment by Merger Sub to the Company of any consideration for the Top-Up Shares should be taken into account.
(e) Without limiting any other provision in this Agreement, in the event of any change in the number of outstanding Shares 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 Top-Up Option, the number of Top-Up Option Shares will be adjusted appropriately so as to restore to Merger Sub its rights hereunder with respect to the Top-Up Option as the same exists as of the date of this Agreement; provided that this Section 1.04(e) shall not be deemed to constitute a waiver of any breach by the Company of Section 6.01.
(f) Notwithstanding anything to the contrary in this Agreement, Merger Sub may include assign the right to exercise the Top-Up Option to Parent or to any legends required by applicable securities lawsAffiliate of Parent that becomes the owner of the Shares purchased in the Offer.
Appears in 2 contracts
Samples: Merger Agreement (Bishop Infrastructure III Acquisition Company, Inc.), Merger Agreement (Westway Group, Inc.)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Parent and Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), ) to purchase from the Company, up to the 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 collectively owned by Merger Subsidiary Parent or Purchaser at the time of exercise of the Top-Up Optionexercise, constitutes shall constitute one Company Share more than 90% of the then outstanding Company Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-fully diluted basis (including all Company Shares potentially issuable upon the Shares to be issued conversion of any convertible securities or upon the exercise of any options, warrants or rights (other than the Top-Up OptionRights) including the Company RSUs, in each case, which are convertible or exercisable prior to the “Top-Up Shares”Outside Date).
(b) The , at a purchase price per Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement Share equal to the contraryPer Share Amount. Notwithstanding the foregoing provisions of this Section 2.3(a), the Top-Up Option shall not be exercisable (i) to the extent for Company Shares in excess of the number of Company Shares authorized and unissued or held in the treasury of the Company (giving effect to the Company Shares issuable upon pursuant to all then-outstanding Company Stock Options, RSUs and any other rights to acquire Company Shares as if such shares were outstanding).
(b) Either Parent or Purchaser may, at its election, exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately any time after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant Acceptance Date and prior to the Top-Up Option shall be determined by multiplying the number earlier of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, the Effective Time and (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination termination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payablethis Agreement.
(c) In the event Merger Subsidiary If either Parent or Purchaser wishes to exercise the Top-Up Option, Merger Subsidiary Parent or Purchaser, as applicable, shall deliver send to the Company a written notice (a “Top-Up Exercise Notice”) specifying the place for the closing of the purchase the Top-Up Option Shares (the “Top-Up NoticeClosing”) setting forth and a date not earlier than one business day nor later than ten business days after the date of the Top-Up Exercise Notice for the Top-Up Closing. The Company shall, promptly after receipt of the Top-Up Exercise Notice, deliver a written notice to Parent or Purchaser confirming (i) the number of Company Shares then outstanding on a fully diluted basis, and (ii) the number of Top-Up Option Shares that Merger Subsidiary intends 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 or Purchaser a certificate or certificates evidencing the applicable number of Top-Up Option Shares and (ii) Parent or Purchaser shall purchase pursuant to each Top-Up Option Share from the Company at the Per Share Amount. Payment of the purchase price for the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to may be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares ormade, at Parent’s or Merger SubsidiaryPurchaser’s request or otherwise if option, by delivery of (A) immediately available funds by wire transfer to an account designated by the Company does not then have certificated shares of Company Common Stockor (B) a promissory note, the applicable number of non-certificated shares of Company Common Stock represented by book-entryor any combination thereof. The parties hereto agree shall cooperate to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day ensure that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up SharesOption Shares is accomplished consistent with all applicable legal requirements, including all federal securities laws.
(de) Upon the delivery by Parent or Purchaser to the Company of the Top-Up Exercise Notice, and the tender of the consideration described in Section 2.3(d), Parent or Purchaser, as applicable, shall be deemed to be the holder of record of the Top-Up Option Shares issuable upon that exercise, notwithstanding that certificates representing those Top-Up Option Shares shall not then be actually delivered to Parent or Purchaser or the Company shall have failed or refused to designate the account described in Section 2.3(d).
(f) Certificates evidencing Top-Up Option Shares delivered hereunder may include legends legally required by applicable securities laws. Parent and Merger Subsidiary understand Purchaser acknowledge that the Top-Up Option Shares that Parent or Purchaser may acquire upon exercise of the Top-Up Option will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsPurchaser hereby represents and warrants to the Company that it is, warrants and agrees that or will be upon the purchase of the Top-Up Option is beingShares, and an “accredited investor”, as defined in Rule 501 of Regulation D under the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Wind River Systems Inc), Merger Agreement (Intel Corp)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), to purchase from exercisable only upon the Company, up terms and subject to the conditions set forth herein and only on or after the Appointment Time, to purchase, at a price per share equal to the Offer Price, an aggregate number of authorized and unissued shares of Common Stock (the “Top-Up Option Shares, ”) equal to the lowest number of Shares that, when added to the number of Shares directly or indirectly owned by Merger Subsidiary Parent, Purchaser and their respective Subsidiaries at the time of exercise of the Top-Up Option, constitutes shall constitute one Share share more than ninety percent (90% %) of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated Option Shares on a fully-fully diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is basis; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable unless, immediately after such exercise and the issuance of shares of Common Stock pursuant thereto, the Short Form Threshold would be reached (i) after giving effect to the extent the number of Shares issuable upon exercise issuance of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares); provided, (ii) unless immediately following the exercise of further, that in no event shall the Top-Up Option, the Option be exercisable for a number of shares of Common Stock in excess of the Company’s total authorized and unissued shares of Common Stock (treating any Shares held in the treasury of the Company Common Stock owned in as unissued). Purchaser may pay the Company the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would price required to be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable paid for the Top-Up Shares being purchased either (i) entirely in cash or (ii) at Purchaser’s election, by Merger Subsidiary pursuant (x) paying in cash an amount equal to not less than the aggregate par value of the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary and (Ay) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination balance of the foregoingaggregate purchase price pursuant to the Top-Up Option less the amount paid in cash pursuant to the preceding clause (x) (a “Promissory Note”). Any such promissory note Promissory Note shall be full recourse against Parent and Purchaser and (i) shall bear interest at the rate of 6% nine percent (9%) per annum, (ii) shall mature on the first (1st) anniversary of the date of execution and delivery of such promissory note Promissory Note and (iii) may be prepaid prepaid, in whole or in part, without premium or penalty.
(b) Provided that no applicable Law, order, injunction or other legal impediment shall prohibit the exercise of the Top-Up Option or the issuance of the Top-Up Option Shares pursuant thereto, or otherwise make such exercise or issuance illegal, Purchaser may exercise (subject to the restrictions contained in Section 1.11(a)) the Top-Up Option on one or more occasions, in whole or in part, after the Appointment Time and prior to the earlier to occur of (i) the fifth (5th) business day after the later of (A) the Expiration Time and (B) the expiration of any “subsequent offering period”; provided, however, that upon any Event and (ii) the termination of Default, all principal and accrued interest thereunder shall immediately become due and payablethis Agreement in accordance with its terms.
(c) In the event Merger Subsidiary Each time that Purchaser wishes to exercise the Top-Up Option, Merger Subsidiary 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 NoticeNotice Date”) setting forth (i) specifying the number denominations of the certificate or certificates evidencing the Top-Up Option Shares that Merger Subsidiary intends 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 and (ii) the place and time at which the closing of the purchase of such “Top-Up Shares by Merger Subsidiary is to take placeClosing”). The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary thatCompany shall, as promptly as practicable following such exercise after receipt of the Top-Up OptionExercise Notice, Merger Subsidiary intends deliver a written notice to Purchaser confirming the number of Top-Up Option Shares and the aggregate purchase price therefor (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05“Top-Up Notice Receipt”). At the closing of the purchase of the Top-Up SharesClosing, Parent and Merger Subsidiary 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, by delivery of cash and a Promissory Note in an aggregate principal amount equal to that specified in the Top-Up Notice Receipt, and the Company shall cause to be issued and delivered to Merger Subsidiary Purchaser a certificate or certificates representing the Top-Up Option Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common StockShares, the applicable number of nonBook-certificated shares of Company Common Stock represented Entry Shares. Such certificates or Book-Entry Shares may include any legends that are required by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Sharesfederal or state securities Laws.
(d) Parent and Merger Subsidiary understand Purchaser acknowledge that the Top-Up Shares will which Purchaser may acquire upon exercise of the Top-Up Option shall not be registered under the 1933 Securities Act and will shall be issued in reliance upon an exemption thereunder from registration under the Securities Act for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsPurchaser represent and warrant to the Company that Purchaser is, warrants and or shall be upon any purchase of Top-Up Shares, an “accredited investor”, as defined in Rule 501 of Regulation D under the Securities Act. Purchaser agrees that the Top-Up Option is beingOption, and the Top-Up Shares will beto be acquired upon exercise of the Top-Up Option, if any, are being and shall be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing ).
(e) Without the prior written consent of the Company, the right to exercise the Top-Up Shares may include Option granted pursuant to this Agreement shall not be assigned by Purchaser 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 1.11(e) shall be null and void.
Appears in 2 contracts
Samples: Merger Agreement (Beckman Coulter Inc), Merger Agreement (Danaher Corp /De/)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(cthe requirements of Section 1.4(b), the Company hereby grants to Merger Subsidiary Parent and the Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), ) to purchase from the Company, up Company that number (but not less than that number) of shares of Company common stock (the “Top-Up Option Shares”) equal to the number of authorized and unissued Shares, the number shares of Shares Company common stock that, when added to the number of Shares owned by Merger Subsidiary at the time of exercise Parent and Purchaser immediately following consummation of the Top-Up OptionOffer, constitutes shall constitute one Share share more than 90% of the Shares that would be outstanding immediately (after giving effect to the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Option Shares) for consideration per Top-Up Option, Option Share equal to the “Top-Up Shares”)Offer Price.
(b) The Top-Up Option may shall be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, exercisable only once, at any one time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall after the purchase of and payment for Shares pursuant to the Offer by Parent or the Purchaser as a result of which Parent and the Purchaser own as of such time less than 90beneficially at least 80% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Shares outstanding. The Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of if the number of shares of Company Common Stock that would be outstanding immediately after common stock subject thereto exceeds the issuance number of all authorized shares of Company Common Stock subject to such exercise of common stock available for issuance and not otherwise reserved for issuance by the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payableCompany.
(c) In the event Merger Subsidiary that Parent or Purchaser wishes to exercise the Top-Up Option, Merger Subsidiary Parent or the Purchaser shall deliver to give the Company a written notice (the “Top-Up Notice”) setting forth (i) specifying the number of Top-Up Shares shares of Company common stock that Merger Subsidiary intends to purchase pursuant to are or will be owned by Parent and the Top-Up Option Purchaser immediately following consummation of the Offer and (ii) the specifying a place and a time at which for the closing of the purchase (which shall not be more than three (3) Business Days after delivery of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent notice) and Merger Subsidiary that, certifying that as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends Purchaser and Parent intend to (and Merger Subsidiary shall, Purchaser and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law the DGCL as contemplated by Section 9.051.11. The Company shall, as soon as practicable following receipt of such notice, deliver written notice to the Purchaser specifying the number of Top-Up Shares. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for purchase price owing upon exercise of the Top-Up Shares, and Option that equals the product of (i) the number of shares of Company shall cause common stock purchased pursuant to be issued to Merger Subsidiary a certificate representing the Top-Up Shares orOption, multiplied by (ii) the Offer Price, 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’s .
(d) The Top-Up Option may not be exercised if any provision of applicable Law or Merger Subsidiary’s request any judgment, injunction, order or otherwise if decree of any Governmental Entity shall prohibit, or require any action, consent, approval, authorization or permit of, or action by, or filing with or notification to, any Governmental Entity or the Company does not then have certificated shares of Company Common Stock, Stockholders in connection with the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing exercise of the purchase Top-Up Option or the delivery of the Top-Up Shares to occur on in respect of such exercise, which action, consent, approval, authorization or permit, action, filing or notification has not theretofore been obtained or made, as applicable.
(e) Each of Parent and the same day Purchaser understands that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance Shares that Purchaser may acquire upon exercise of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 Act Securities Act, and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsthe Purchaser represent and warrant to the Company that the Purchaser is, warrants and will be upon exercise of the Top-Up Option, an “accredited investor” (as defined in Rule 501 of Regulation D promulgated under the Securities Act). The Purchaser agrees that the Top-Up Option is being, and the Top-Up Shares to be acquired upon exercise thereof are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Kinetic Concepts Inc /Tx/), Merger Agreement (Lifecell Corp)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary MergerSub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”)) to purchase, to purchase from the Company, up at a price per share equal to the Offer Price, a number (but not less than that number) of authorized and unissued newly issued shares of Company Common Stock (the “Top-Up Option Shares, the number of Shares ”) that, when added to the number of Shares owned shares of Company Common Stock owned, directly or indirectly, by Merger Subsidiary Parent, MergerSub or any of the other Parent Subsidiaries, at the time of exercise of the Top-Up Option, constitutes one Share share of Company Common Stock more than ninety percent (90% %) of the Shares number of shares of Company Common Stock that would will be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Option Shares”).
(b) . The Top-Up Option may be exercised by Merger Subsidiary exercised, in whole but not in part, at any one time on or after the date MergerSub accepts for payment all shares of Company Common Stock validly tendered and not withdrawn pursuant to the Offer and prior to the earlier to occur of (1) the Effective Time and (2) the termination of this Agreement in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is 8.01; provided, during however, that the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% obligation of the outstanding Shares; provided that notwithstanding anything in this Agreement Company to the contrary, the deliver Top-Up Option shall not be exercisable (i) to Shares upon the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed is subject to the number of authorized but unissued and unreserved Shares, conditions that (iiA) unless immediately following the upon exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate owned, directly or indirectly, by Parent and Merger Subsidiary or MergerSub constitutes at least one share of Company Common Stock more than ninety percent (90% %) of the number of shares of Company Common Stock that would will be outstanding immediately after the issuance of all the Top-Up Option Shares and (B) 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 Company Common Stock subject to such not otherwise reserved for issuance.
(b) Upon the exercise of the Top-Up OptionOption in accordance with Section 1.03(a), MergerSub shall so notify the Company and shall set forth in such notice (1) the number of shares of Company Common Stock expected to be owned, directly or indirectly, by Parent or MergerSub immediately preceding the purchase of the Top-Up Option Shares, (iii2) unless the Minimum Condition number of Top-Up Option Shares, and (3) a place and time for the closing of the purchase of the Top-Up Option Shares (the “Top-Up Option Closing”). At the Top-Up Option Closing, MergerSub shall have been satisfiedpay the Company the aggregate purchase price required to be paid for the Top-Up Option Shares pursuant to this Section 1.03, and the Company shall cause to be issued to MergerSub a certificate representing the Top-Up Option Shares. The At its election, MergerSub may pay the aggregate purchase price payable for the Top-Up Option Shares being purchased either (A) in cash by Merger Subsidiary pursuant wire transfer of immediately available funds to an account designated by the Company, or (B) by (i) paying in cash, by wire transfer of immediately available funds to an account designated by the Company, an amount equal to not less than the aggregate par value of the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary and (Aii) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the aggregate purchase price, or price payable for the Top-Up Option Shares less the amount paid in cash pursuant to the preceding clause (Ci) any combination of (the foregoing“Promissory Note”). Any such promissory note The Promissory Note (A) shall bear interest at the rate of 6% per annum, shall mature be due on the first anniversary of the date Top-Up Option Closing, (B) shall accrue simple interest of execution 3% per annum, (C) shall be full recourse to Parent and delivery of such promissory note and MergerSub, (D) may be prepaid prepaid, in whole or in part, at any time without premium or penalty; provided, however, (E) shall provide that upon any Event of Default, all the unpaid principal amount and accrued interest thereunder under the Promissory Note shall immediately become due and payablepayable in the event that (x) MergerSub 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) MergerSub files or has filed against it any petition under bankruptcy or insolvency law or makes a general assignment for the benefit of creditors and (F) shall have no other material terms.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such MergerSub understand that the shares of Company Common Stock that MergerSub may acquire upon exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and MergerSub agrees that any Top-Up Option Shares to be acquired upon exercise of the Top-Up Option is being, and the Top-Up Shares will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Any , and that any certificates evidencing representing the Top-Up Option Shares may include any legends required by applicable securities laws.
(d) The parties agree and acknowledge that in any appraisal proceeding with respect to 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 any consideration paid or delivered by MergerSub to the Company in payment for the Top-Up Option Shares.
Appears in 2 contracts
Samples: Merger Agreement (Galaxy Dream Corp), Merger Agreement (Rc2 Corp)
Top-Up Option. (ai) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Parent an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), to purchase from exercisable only upon the Company, up terms and subject to the conditions set forth herein, to purchase, at a price per share equal to the Offer Price, that number of authorized and unissued shares of Common Stock (the “Top-Up Option Shares, ”) equal to the lowest number of Shares shares of Common Stock that, when added to the number of Shares shares of Common Stock owned by Merger Subsidiary Parent and its subsidiaries and affiliates at the time of exercise of the Top-Up Optionsuch exercise, constitutes one Share shall constitute ten thousand (10,000) shares more than 90% of the Shares that would be shares of Common Stock then outstanding immediately (after giving effect to the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Option Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is ; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, (x) the Top-Up Option shall not be exercisable unless, (iA) immediately prior to such exercise, Merger Sub and Parent collectively hold Company Shares in excess of 80% of the extent Company Shares then outstanding and (B) immediately after such exercise and the issuance of shares of Common Stock pursuant thereto, the Short Form Threshold would be reached (assuming the issuance of the Top-Up Option Shares); (y) that in no event shall the Top-Up Option be exercisable for a number of Shares shares of Common stock in excess of the Company’s total authorized and unissued shares of Common Stock; and (z) in no event shall the Top-Up Option be exercisable for more than an aggregate number of shares of Common Stock that is equal to 19.9% of the shares of Common Stock issued and outstanding as of the date hereof (or such greater amount as may be issuable upon under Rule 4350(i) of the Nasdaq Marketplace Rules without the approval of the Company’s stockholders). Neither Parent nor Merger Sub may transfer the Top-Up Option to any other Person, other than a wholly-owned direct or indirect subsidiary of the Parent, without the prior written consent of the Company.
(ii) Provided that no applicable law, rule, regulation, order, injunction or other legal impediment shall prohibit the exercise of the Top-Up Option would exceed or the number issuance of authorized but unissued and unreserved Sharesthe Top-Up Option Shares pursuant thereto, (ii) unless immediately following the or otherwise make such exercise of or issuance illegal, Parent may exercise the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes whole but not in part, at least any one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately time after the issuance Appointment Time and prior to the earlier to occur of all shares (i) the Effective Time and (ii) the termination of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary this Agreement pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payableSection 9.1.
(ciii) In the event Merger Subsidiary Parent wishes to exercise the Top-Up Option, Merger Subsidiary Parent 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 NoticeNotice Date”) setting forth (i) specifying the number denominations of the certificate or certificates evidencing the Top-Up Option Shares that Merger Subsidiary intends which the Parent wishes to receive, and the place, time and date for the closing of the purchase and sale pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such “Top-Up Shares by Merger Subsidiary is to take placeClosing”). The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary thatCompany shall, as promptly as practicable following such exercise after receipt of the Top-Up OptionExercise Notice, Merger Subsidiary intends deliver a written notice to the Parent confirming the number of Top-Up Option Shares and the aggregate purchase price therefore (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05“Top-Up Notice Receipt”). At the closing of the purchase of the Top-Up SharesClosing, Parent and Merger Subsidiary shall cause to be delivered to pay the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up SharesOption Shares by wire transfer in an aggregate principal amount equal to the amount specified in the Top-Up Notice Receipt, and the Company shall cause to be issued to Merger Subsidiary Parent a certificate or certificates representing the Top-Up Shares or, at Parent’s Option Shares. Such certificates may include any legends that are required by federal or state securities laws.
(iv) Parent and Merger Subsidiary’s request or otherwise if Sub understand that the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase Shares which Merger Sub may acquire upon exercise of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 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. Each of Parent and Merger Subsidiary representsSub represent and warrant to the Company that Merger Sub is, warrants and 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. Merger Sub agrees that the Top-Up Option is being, and the Top-Up Option Shares are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Polycom Inc), Merger Agreement (Spectralink Corp)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c)this Section 2.3, the Company hereby grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof option (the “Top-Up Option”) to purchase at a price per share of Company Common Stock equal to the Per Share Amount (the “Top-Up Share Price”), to purchase from a number (but not less than that number) of newly issued Shares (the Company, up to the number of authorized and unissued “Top-Up Option Shares, the number of Shares ”) that, when added to the number of Shares beneficially owned by Merger Subsidiary Parent at the time of exercise of the Top-Up Option, constitutes one Share more than 90% of the number of Shares that would will be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up OptionOption Shares, calculated on a fully-diluted basis (provided, that in no event will such number of Shares exceed the number of authorized and unissued Shares to be issued upon exercise not otherwise reserved for issuance for outstanding Company Stock Options or Company Restricted Share Units or other obligations of the Top-Up Option, the “Top-Up Shares”).
(b) Company. The Top-Up Option may be exercised by Merger Subsidiary exercised, in whole but not in part, at any one time on or after the Acceptance Date and prior to the earliest to occur of (i) the Effective Time, (ii) the termination of this Agreement in accordance with Section 1.04(c)Article VIII, in whole or in part, only once, at any time during (iii) the 10 occurrence of the fifth Business Day period following the Acceptance Expiration Date, or if any Subsequent Offering Period is ; provided, during however, that the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% obligation of the outstanding Shares; provided that notwithstanding anything in this Agreement Company to the contrary, the deliver Top-Up Option shall not be exercisable (i) to Shares upon the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed is subject to the number conditions that (A) no provision of authorized but unissued any applicable law and unreserved Sharesno judgment, injunction, order or decree of any Governmental Authority prohibits such exercise, (iiB) unless immediately following at the time of exercise, Purchaser owns more than 50% of the Fully Diluted Shares but less than 90% of the Shares then-outstanding, (C) upon exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate Shares owned, directly or indirectly, by Parent and Merger Subsidiary or Purchaser constitutes at least one share more than 90% of the number of shares of Company Common Stock Shares that would will be outstanding immediately after the issuance of the Top-Up Option Shares, (D) the number of Top-Up Option Shares issued pursuant to the Top-Up Option may in no event exceed the number of authorized and unissued Shares not otherwise reserved for issuance for outstanding Company Stock Options or other obligations of the Company, and (E) Purchaser has accepted for payment and paid for all shares of Company Common Stock subject to such Shares validly tendered in the Offer and not validly withdrawn.
(b) Upon the exercise of the Top-Up OptionOption in accordance with Section 2.3(a), Purchaser will notify the Company and set forth in such notice (i) the number of shares of Company Capital Stock expected to be owned, beneficially and of record, by Parent or Purchaser immediately preceding the purchase of the Top-Up Option Shares, (ii) a place and time for the closing of the purchase of the Top-Up Option Shares, and (iii) unless Purchaser’s agreement to (and Parent’s agreement to cause Purchaser to) consummate the Minimum Condition shall have been satisfiedMerger in accordance with the DGCL as contemplated by this Agreement as promptly as practicable following issuance of the Top-Up Option Shares. The Company will, as soon as practicable following receipt of such notice, notify Purchaser of the number of Shares then outstanding and the number of Top-Up Option Shares. At the closing of the purchase of the Top-Up Option Shares, Purchaser will pay the Company the aggregate purchase price required to be paid for the Top-Up Option Shares pursuant to this Section 2.3, and the Company will cause to be issued to Purchaser a Certificate representing the Top-Up Option Shares, which may include any legends required by applicable securities laws. At its election, Purchaser may pay the aggregate purchase price payable for the Top-Up Option Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary either (A) in cash, cash by wire transfer of immediately available funds to an account designated by the Company or (B) by executing and delivering to the Company a promissory note in form mutually acceptable by Parent and the Company having a principal amount equal to the purchase price, or (C) any combination balance of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to aggregate purchase pursuant to price for the Top-Up Option Shares and an interest rate equal to the per annum interest rate payable with respect to the revolver under the Company’s Credit Agreement with Bank of America dated February 21, 2007 (ii) as in effect on the place and time date hereof), which promissory note will be payable in full with accrued interest immediately at which the closing Effective Time. Each of the purchase Parties will use its commercially reasonable efforts to ensure that any issuance of such Top-Up Option Shares by Merger Subsidiary is to take placeaccomplished consistent with all applicable laws. The Top-Up Notice shall also include an undertaking signed by Parent Parties acknowledge and Merger Subsidiary agree that, as promptly as practicable following such in any appraisal proceeding related to this Agreement, the fair value of the shares of Company Capital Stock subject to the appraisal proceeding will be determined in accordance with the DGCL without regard to the exercise by Purchaser of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 any shares of Delaware Law as contemplated by Section 9.05. At the closing of the purchase Company Common Stock issued upon exercise of the Top-Up Shares, Option or the promissory note referred to in this Section 2.3(b).
(c) Parent and Merger Subsidiary shall cause to be delivered to Purchaser understand that the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase that Purchaser may acquire upon exercise of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 Act Securities Act, and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsPurchaser represent and warrant to the Company that Purchaser is, warrants and will be upon any exercise of the Top-Up Option, an “accredited investor” (as defined in Rule 501 of Regulation D promulgated under the Securities Act). Purchaser agrees that any Top-Up Option Shares to be acquired upon exercise of the Top-Up Option is being, and the Top-Up Shares will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing .
(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 that would have the effect of diluting Purchaser’s rights under the Top-Up Option, the number of Top-Up Option Shares may include any legends required by applicable securities lawsand the Top-Up Share Price will be adjusted appropriately so as to restore to Purchaser its rights hereunder with respect to the Top-Up Option as the same exists as of the date of this Agreement.
Appears in 2 contracts
Samples: Transaction Agreement (Online Resources Corp), Transaction Agreement (Aci Worldwide, Inc.)
Top-Up Option. (aA) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “"Top-Up Option”"), to purchase from exercisable only upon the Company, up terms and subject to the conditions set forth herein, 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 lesser of (x) the lowest number of Company Shares that, when added to the number of Company Shares owned by Merger Subsidiary Parent, Purchaser and their respective Subsidiaries and Affiliates at the time of exercise of the Top-Up Optionsuch exercise, constitutes one Share shall constitute ten thousand (10,000) shares more than 90% of the Company Shares that would be then outstanding immediately (after giving effect to the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis Option Shares) and (the y) an aggregate number of Company Shares that is equal to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 9019.9% of the Company Shares issued and outstanding Sharesas of the date hereof; provided provided, however, that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable unless, (i) immediately prior to such exercise, Parent, Purchaser and their respective Subsidiaries and Affiliates own more than 80% of the extent Company Shares then outstanding and (ii) immediately after such exercise and the issuance of Company Shares pursuant thereto, Parent, Purchaser and their respective Subsidiaries and Affiliates own more than 90% of the Company Shares then outstanding; and provided, further, that in no event shall the Top-Up Option be exercisable for a number of Company Shares issuable upon in excess of the Company's total authorized and unissued Company Shares.
(B) Provided that no applicable Legal Requirement shall prohibit the exercise of the Top-Up Option would exceed or the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise issuance of the Top-Up OptionOption Shares pursuant thereto, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to or otherwise make such exercise of the Topor issuance illegal, Purchaser may exercise and re-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to exercise the Top-Up Option shall be determined by multiplying multiple times, in whole but not in part, at any time or times after the number of such Shares by an amount equal Acceptance Time and prior to the price paid for each Share in earlier to occur of (i) the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary Effective Time and (Aii) in cash, (B) by executing and delivering the termination of this Agreement pursuant to the Company a promissory note having a principal amount equal to the purchase price, or Section 7.
(C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, Each time that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary Purchaser wishes to exercise the Top-Up Option, Merger Subsidiary Purchaser shall deliver send to the Company a written notice (the “a "Top-Up Exercise Notice”") setting forth (i) specifying the number denominations of the certificate or certificates evidencing the Top-Up Option Shares that Merger Subsidiary intends 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 and (ii) the place and time at which the closing of the purchase of such a "Top-Up Shares by Merger Subsidiary is to take placeClosing"). The Company shall, promptly after receipt of a Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary thatExercise Notice, as promptly as practicable following such exercise deliver a written notice to the Purchaser confirming the number of the Top-Up Option, Merger Subsidiary intends to (Option Shares and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05aggregate purchase price therefore. At the closing of the purchase of the each Top-Up SharesClosing, Parent and Merger Subsidiary 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 SharesOption Shares 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 Closing, or (C) any combination thereof. At each Top-Up Closing, the Company shall cause to be issued to Merger Subsidiary Purchaser a certificate or certificates representing the Top-Up Option Shares or, issuable at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the such Top-Up Closing. Certificates representing Company Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 connection with Section 253 of Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends that are required by applicable federal or state securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Inverness Medical Innovations Inc), Merger Agreement (Inverness Medical Innovations Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary the Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable once upon the terms and subject to the conditions set forth herein, to purchase from at the Company, up Offer Price an aggregate number of Shares (the “Top-Up Shares”) equal to the number of authorized and unissued Shares, the lowest number of Shares that, when added to the number of Shares owned by Merger Subsidiary Parent, Purchaser and their Affiliates at the time of exercise such exercise, shall constitute one Share more than the Short Form Threshold; provided, however, that in no event shall the Top-Up Option be exercisable for a number of Shares in excess of the number of authorized but unissued Shares as of immediately prior to the issuance of the Top-Up OptionShares (giving effect to Shares reserved for issuance under the Company Equity Plans as if such Shares were outstanding); provided further, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis Option shall terminate upon the earlier of: (x) the Shares to be issued upon exercise fifth (5th) Business Day after the later of (1) the Top-Up Option, Expiration Date and (2) the expiration of any “Top-Up Sharessubsequent offering period”); and (y) the termination of this Agreement in accordance with its terms.
(b) The obligation of the Company to deliver Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during Shares upon the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed is subject to the number conditions that (i) no provision of authorized but unissued any applicable Law (other than the rules and unreserved Sharesregulations of the NYSE, which shall not apply for purposes of this Section 1.8) and no judgment, injunction, Order or decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Shares in respect of such exercise, (ii) unless immediately following the upon exercise of the Top-Up Option, the number of shares of the Company Common Stock Shares owned in the aggregate by Parent Parent, Purchaser and Merger Subsidiary their Affiliates constitutes at least one share Share more than ninety percent (90% %) of the number of shares of Company Common Stock Shares that would shall be outstanding immediately after the issuance of the Top-Up Shares, and (iii) Purchaser has accepted for payment all shares Shares validly tendered in the Offer and not properly withdrawn. The parties shall cooperate to ensure that the issuance of Company Common Stock subject to such the Top-Up 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 Shares under the Securities Act.
(c) To exercise of the Top-Up Option, or the Purchaser shall send to the Company a written notice (iiia “Top-Up Exercise Notice”) unless specifying (i) the Minimum Condition number of Shares that shall have been satisfiedbe owned by Parent, Purchaser and their Affiliates immediately preceding the purchase of the Top-Up Shares and (ii) the place, time and 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 the Purchaser confirming the number of Top-Up Shares and the aggregate purchase price payable therefor (the “Top-Up Notice Receipt”). At the Top-Up Closing, the Purchaser shall pay the Company, in the manner set forth in Section 1.8(d) hereof, the aggregate price required to be paid for the Top-Up Shares, in an aggregate principal amount equal to that specified in the Top-Up Notice Receipt, and the Company shall cause to be issued and delivered to the Purchaser a certificate or certificates representing the Top-Up Shares or, at the Purchaser’s request or otherwise if the 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 applicable Law.
(d) Purchaser may pay the Company the aggregate price required to be paid for the Top-Up Shares being purchased either (i) entirely in cash or (ii) at Purchaser’s election, by Merger Subsidiary pursuant (x) paying in cash an amount equal to not less than the aggregate par value of the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary and (Ay) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination balance of the foregoingaggregate purchase price pursuant to the Top-Up Option less the amount paid in cash pursuant to the preceding clause (x) (a “Promissory Note”). Any such promissory note Promissory Note shall be full recourse against Parent and the Purchaser and (i) shall bear interest at the rate of 62% per annum, (ii) shall mature on the first anniversary of the date of execution and delivery of such promissory note Promissory Note and (iii) may be prepaid prepaid, in whole or in part, without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(ce) In Parent and Purchaser acknowledge that the event Merger Subsidiary wishes Shares which Purchaser may acquire upon exercise of the Top-Up Option shall not be registered under the Securities Act and shall be issued in reliance upon an exemption for transactions not involving a public offering. Parent and Purchaser represent and warrant to exercise the Company that Purchaser is, or shall be upon any purchase of Top-Up Shares, an “accredited investor”, as defined in Rule 501 of Regulation D under the Securities Act. Purchaser agrees that the Top-Up Option, Merger Subsidiary shall deliver to and the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such be acquired upon exercise of the Top-Up Option, Merger Subsidiary intends to (if any, are being and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws).
Appears in 2 contracts
Samples: Merger Agreement (Abbott Laboratories), Merger Agreement (Advanced Medical Optics Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), ) to purchase from the Company, up to the 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 collectively owned by Parent or Merger Subsidiary Sub at the time of exercise exercise, shall constitute one Company Share more than ninety percent (90%) of the Company Shares then outstanding (determined on a fully diluted basis after giving effect to the issuance of the Top-Up OptionOption Shares), constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on at a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The purchase price per Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement Share equal to the contraryPer Share Amount. Notwithstanding the foregoing provisions of this Section 2.3(a), the Top-Up Option shall not be exercisable if (i) to the extent Minimum Condition shall have not been met or (ii) the aggregate number of (A) Company Shares issuable upon exercise of the Top-Up Option Option, plus (B) Company Shares then outstanding, plus (C) Company Shares issuable upon exercise of all options and other rights to purchase Company Shares, would exceed the number of authorized Company Shares.
(b) Merger Sub may, at its election, exercise the Top-Up Option, in whole, but unissued not in part, at any one time after Merger Sub’s acceptance for payment of Company Shares pursuant to the Offer and unreserved Shares, prior to the earlier of (i) the Effective Time and (ii) the termination of this Agreement.
(c) If Merger Sub wishes to exercise the Top-Up Option, Merger Sub shall send to the Company a written notice (a “Top-Up Exercise Notice”) specifying the place for the closing of the purchase of the Top-Up Option Shares (the “Top-Up Closing”) and a date not earlier than one (1) Business Day nor later than ten (10) Business Days after the date of the Top-Up Exercise Notice for the Top-Up Closing. The Company shall, promptly after receipt of the Top-Up Exercise Notice, deliver a written notice to Parent or Merger Sub confirming (i) the number of Company Shares then outstanding on a fully diluted basis, and (ii) 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 Merger Sub a certificate or certificates evidencing the applicable number of Top-Up Option Shares; 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 shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect of any such exercise and (B) the Top-Up Option shall not be exercisable if the issuance of the Top-Up Option Shares would result in the issuance of Company Shares equal to or greater than 19.9% of the Company Shares issued and outstanding immediately prior to the Execution Date unless immediately Parent and Merger Sub certify to the Company in writing that within three (3) Business Days following the exercise of the Top-Up Option, Parent and Merger Sub shall consummate the number of shares Merger in a short-form merger without a meeting of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger shareholders in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of DGCL (in which case, the Top-Up Shares, Parent Option may be exercised without regard to this subsection B); and (ii) Merger Subsidiary 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 by Merger Sub of the purchase price for the Top-Up SharesOption Shares may be made by delivery of immediately available funds by wire transfer to an account designated by the Company, a six-month full recourse promissory note bearing interest at the six-month LIBOR rate then in effect, or any combination of such wire transfer funds and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entrypromissory note. The parties hereto agree Parties shall cooperate to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day ensure that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up SharesOption Shares is accomplished consistent with all applicable legal requirements, including all federal securities laws.
(de) Parent and Upon the delivery by Merger Subsidiary understand that Sub to the Company of the Top-Up Shares will not Exercise Notice, and the tender of the consideration described in Section 2.3(d), the Company shall use its reasonable best efforts to cause Merger Sub to be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each holder of Parent and Merger Subsidiary represents, warrants and agrees that record of the Top-Up Option is beingShares issuable upon that exercise, and notwithstanding that the stock transfer books of the Company may then be closed or that certificates representing those Top-Up Option Shares will be, acquired by may not then be actually delivered to Merger Subsidiary for Sub or the purpose of investment and not with a view Company may have failed or refused to or for resale designate the account described in connection with any distribution thereof within the meaning of the 1933 Act. Any certificates Section 2.3(d).
(f) Certificates evidencing Top-Up Option Shares may delivered hereunder shall include any legends legally required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Blackbaud Inc), Merger Agreement (Convio, Inc.)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), ) to purchase from the Company, up to the 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 collectively owned by Parent or Merger Subsidiary Sub at the time of exercise exercise, shall constitute one Company Share more than ninety percent (90%) of the Company Shares then outstanding (determined on a fully diluted basis after giving effect to the issuance of the Top-Up OptionOption Shares), constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on at a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The purchase price per Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement Share equal to the contraryPer Share Amount. Notwithstanding the foregoing provisions of this Section 2.3(a), the Top-Up Option shall not be exercisable if the aggregate number of (i) to the extent the number of Company Shares issuable upon exercise of the Top-Up Option Option, plus (ii) Company Shares then outstanding, plus (iii) Company Shares issuable upon exercise of all options and other rights to purchase Company Shares, would exceed the number of authorized but unissued and unreserved Company Shares.
(b) Merger Sub may, (ii) unless immediately following the at its election, exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and whole, but not in part, at any one time after Merger Subsidiary constitutes at least one share more than 90% of the number of shares Sub’s acceptance for payment of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal Offer and prior to the price paid for each Share in earlier of (i) the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary Effective Time and (Aii) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination termination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payablethis Agreement.
(c) In the event If Merger Subsidiary Sub wishes to exercise the Top-Up Option, Merger Subsidiary Sub shall deliver send to the Company a written notice (a “Top-Up Exercise Notice”) specifying the place for the closing of the purchase the Top-Up Option Shares (the “Top-Up NoticeClosing”) setting forth and a date not earlier than one (1) Business Day nor later than ten (10) Business Days after the date of the Top-Up Exercise Notice for the Top-Up Closing. The Company shall, promptly after receipt of the Top-Up Exercise Notice, deliver a written notice to Parent or Merger Sub confirming (i) the number of Company Shares then outstanding on a fully diluted basis, and (ii) the number of Top-Up Option Shares that Merger Subsidiary intends to and the aggregate purchase pursuant to price therefor.
(d) At the Top-Up Option Closing, subject to the terms and conditions of this Agreement: (iii) the place and time at which Company shall deliver to Merger Sub a certificate or certificates evidencing the closing applicable number of the purchase of such Top-Up Shares by Merger Subsidiary is Option Shares; provided, however, that the obligation of the Company to take place. The deliver Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such Option Shares upon the exercise of the Top-Up Option, Merger Subsidiary intends Option is subject to the conditions that (and Merger Subsidiary shall, and Parent A) no provision of any applicable Law shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate prohibit the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase exercise of the Top-Up Shares, Parent Option or the delivery of the Top-Up Option Shares in respect of any such exercise and (B) in no event shall the Top-Up Option Shares equal or exceed the percentage of the outstanding Company Common Stock as of the Execution Date that would require stockholder approval under applicable Law or Nasdaq rules; and (ii) Merger Subsidiary 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 by Merger Sub of the purchase price for the Top-Up SharesOption Shares may be made by delivery of immediately available funds by wire transfer to an account designated by the Company, a six-month promissory note bearing interest at the six-month LIBOR rate then in effect, or any combination of such wire transfer funds and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entrypromissory note. The parties hereto agree Parties shall cooperate to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day ensure that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up SharesOption Shares is accomplished consistent with all applicable legal requirements, including all federal securities laws.
(de) Parent and Upon the delivery by Merger Subsidiary understand that Sub to the Company of the Top-Up Shares will not Exercise Notice, and the tender of the consideration described in Section 2.3(d), Merger Sub shall be registered under deemed to be the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each holder of Parent and Merger Subsidiary represents, warrants and agrees that record of the Top-Up Option is beingShares issuable upon that exercise, and notwithstanding that the stock transfer books of the Company shall then be closed or that certificates representing those Top-Up Option Shares will be, acquired by shall not then be actually delivered to Merger Subsidiary for Sub or the purpose of investment and not with a view Company shall have failed or refused to or for resale designate the account described in connection with any distribution thereof within the meaning of the 1933 Act. Any certificates Section 2.3(d).
(f) Certificates evidencing Top-Up Option Shares may delivered hereunder shall include any legends legally required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Blackbaud Inc), Merger Agreement (Kintera Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Parent and Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 2.05, to purchase from the Company, up to Company the number of authorized newly-issued, fully-paid and unissued non-assessable Shares (the “Top-Up Shares, ”) equal to the lesser of: (i) the number of Shares that, when added to the number of Shares owned by Parent or Merger Subsidiary at Sub immediately prior to the time of exercise of the Top-Up Option, constitutes at least one (1) Share more than 90% of the Shares that would be outstanding Adjusted Outstanding Share Number immediately after the issuance of all the Top-Up Shares; or (ii) the aggregate number of Shares 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 upon or reserved for issuance) immediately prior to the exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may shall be exercised by Parent or Merger Subsidiary in accordance with Section 1.04(c)Sub, in whole or in part, only oncewhole, at any time during or as soon as practicable after the 10 Business Day period Acceptance Time, if: (i) the number of Shares owned by Parent or Merger Sub immediately following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less Time does not constitute at least one (1) share more than 90% of the outstanding SharesAdjusted Outstanding Share Number; provided that notwithstanding anything in this Agreement to and (ii) the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option in accordance with this Section 2.05 would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfiednot violate any applicable Law. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Shares by the Cash Consideration. The purchase price for the Top-Up Shares may be paid by Parent or Merger Sub, at its option either: (1) in cash, by wire transfer of immediately available funds; or (2) by: (x) paying in cash, by wire transfer of immediately available funds, an amount equal to the price paid for each Share in aggregate par value of the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary Top-Up Shares; and (Ay) in cash, (B) by executing and delivering to the Company a full recourse promissory note having a principal amount equal to the aggregate purchase price, or price for the Top-Up Shares minus the amount paid in cash pursuant to the preceding clause (Cx) any combination of (the foregoing“Promissory Note”). Any such promissory note The Promissory Note: (I) shall bear interest at the rate of 6% per annum, shall mature be due on the first anniversary of the date of execution and delivery thereof; (II) shall bear simple interest at the rate per annum equal to the “prime rate” (as reported by Bloomberg L.P. on the date of such promissory note execution and delivery of the Promissory Note), payable in arrears at maturity; (III) shall be full recourse against Parent or Merger Sub, as applicable; (IV) may be prepaid prepaid, in whole or in part, at any time without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder (V) shall immediately become due and payablehave no other material terms.
(c) In the event Parent or Merger Subsidiary wishes to exercise Sub exercises the Top-Up Option, Parent or Merger Subsidiary Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth forth: (i) the number of Top-Up Shares that Merger Subsidiary it intends to purchase pursuant to the Top-Up Option Option; (ii) the manner in which Parent or Merger Sub intends to pay the applicable exercise price; and (iiiii) the place and time at which the closing of the purchase of such the Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary thatCompany shall, as promptly soon as practicable following receipt of such exercise notice, notify Merger Sub of the Top-Up Option, Merger Subsidiary intends to (number of Shares then outstanding and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05Adjusted Outstanding Share Number. At the closing of the purchase of the Top-Up Shares, Parent and or Merger Subsidiary Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange purchase price for the Top-Up Shares, and the Company shall cause to be issued to Parent or Merger Subsidiary a certificate representing the Sub, as applicable, Top-Up Shares or, at Parent’s in certificated or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entryentry form. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase Parent and Merger Sub acknowledge that any Top-Up Shares issued upon exercise of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 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 Merger Subsidiary representsSub hereby represents and warrants to the Company that it is, warrants and agrees will be, upon the purchase of any Top-Up Shares, an “accredited investor,” as defined in Rule 501 of Regulation D under the Securities Act, and that the Top-Up Option is being, and Shares to be acquired upon exercise of the Top-Up Shares Option are being and will be, be acquired by 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 thereof.
(d) The Parties agree that any dilutive impact on the meaning value of the 1933 Act. Any certificates evidencing Shares as a result of the existence or exercise of the Top-Up Option or the issuance of the Top-Up Shares, and any effect of the Promissory Note, will not be taken into account in any determination of the fair value of any Appraisal Shares pursuant to Section 262 of the DGCL as contemplated by Section 3.07.
(e) Without the prior written consent of the Company, the right to exercise the Top-Up Option granted pursuant to this Agreement may include any legends required by applicable securities lawsbe exercised only once and may not be assigned. Any attempted assignment in violation of this Section 2.05(e) shall be null and void.
Appears in 2 contracts
Samples: Merger Agreement (Mitel Networks Corp), Merger Agreement (Mavenir Systems Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 1.04, to purchase from at a price per share equal to the Company, Offer Price paid in the Offer up to the that number of authorized newly issued, fully paid and unissued nonassessable shares of Company Common Stock (the “Top-Up Shares, ”) equal to the lowest number of Shares shares of Company Common Stock that, when added to the number of Shares shares of Company Common Stock owned by Parent and its Subsidiaries (including Merger Subsidiary Sub) at the time of exercise of the Top-Up Option, constitutes shall constitute one Share share more than ninety percent (90% %) of the Shares that would be total number of shares of Company Common Stock outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up OptionShares, calculated on a fully-fully diluted basis (which assumes the Shares to be issued upon conversion or exercise of all Company Stock Options and other derivative securities and the Top-Up Optionvesting and/or exercise of all other Company Stock Awards, in each case, regardless of the conversion or exercise price, the “Top-Up Shares”vesting schedule or other terms and conditions thereof).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is ; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, (i) the Top-Up Option shall not be exercisable (i) to the extent the for a number of Shares issuable upon shares of Company Common Stock in excess of the shares of Company Common Stock authorized and unissued of the Company at the time of exercise of the Top-Up Option would exceed (giving effect to the number shares of authorized but unissued Company Common Stock issuable pursuant to all then-outstanding Company Stock Options, Company Stock Awards and/or other share options, restricted stock units and unreserved Shares, any other rights to acquire Company Common Stock as if such shares were outstanding); (ii) unless immediately following the exercise of the Top-Up Option and the issuance and delivery of the Top-Up Shares shall not be prohibited by any Law or Order and (iii) the Company has no obligation to issue shares under the Top-Up Option unless a majority of the shares of Company Common Stock then outstanding have been tendered and not withdrawn from the Offer. Upon Parent’s request, the Company shall use its best efforts to cause its transfer agent to certify in writing to Parent the number of shares of Company Common Stock outstanding as of immediately prior to the exercise of the Top-Up Option and after giving effect to the issuance of the Top-Up Shares. The parties shall cooperate to ensure that the issuance of the Top-Up Shares is accomplished consistent with applicable Law (other than any Law that requires shareholder approval for the issuance of the Top-Up Shares). The Top-Up Option shall be exercisable only once, in whole but not in part, at any time following the Offer Closing and prior to the earlier to occur of (A) the Effective Time and (B) the termination of this Agreement in accordance with its terms.
(b) In the event Merger Sub wishes to exercise the Top-Up Option, Merger Sub shall deliver to the Company: (x) at least three Business Days’ prior written notice of its intention to do so and (y) as promptly as such information is available thereafter, but in any event no later than the Offer Closing Date, an additional written notice specifying (i) the number of shares of the Company Common Stock owned in the aggregate by Parent and its Subsidiaries (including Merger Subsidiary constitutes Sub) at least one share more the time of such notice (giving effect to the Offer Closing) and (ii) a place and a time for the closing of such purchase, which shall occur on the Offer Closing Date simultaneously with the consummation of the Offer (unless otherwise mutually agreed in writing by the parties). The Company shall, as soon as possible following receipt of such notice (and in any event no later than 90% the consummation of the Offer), deliver written notice to Merger Sub specifying, based on the information provided by Merger Sub in its notice, the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up OptionShares to be purchased by Merger Sub. At the closing of the purchase of Top-Up Shares, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable owed by Merger Sub to the Company for the Top-Up Shares being purchased by Merger Subsidiary pursuant shall be paid to the Top-Up Option shall be determined Company by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering issuing to the Company a promissory note having a principal amount equal to the aggregate purchase price, or price pursuant to the Top-Up Option (Cthe “Promissory Note”). The Promissory Note (1) any combination of the foregoing. Any such promissory note shall bear simple interest at the a rate of 6% five percent (5.0%) per annum, payable in arrears at maturity, (2) shall mature on the first anniversary of the date of execution of the Promissory Note, (3) shall be full recourse to Parent and delivery of such promissory note and Merger Sub, (4) may be prepaid prepaid, at any time, in whole or in part, without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii5) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take placeshall have no other material terms. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common StockShares, the applicable number of nonBook-certificated Entry Shares. Such certificates or Book-Entry Shares may include any legends that are required by federal or state securities Laws.
(c) Parent and Merger Sub acknowledge that no Top-Up Shares issued upon exercise of the Top-Up Option will be registered under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”), and that all such shares will be issued in reliance upon an applicable exemption from registration under the Securities Act. Each of Parent and Merger Sub hereby represents and warrants to the Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of that Merger Sub is, and will be, upon the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01Shares, and if not so consummated on such day, an “accredited investor,” as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated defined in accordance with Section 253 Rule 501 of Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered Regulation D under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offeringSecurities Act. Each of Parent and Merger Subsidiary represents, warrants and Sub agrees that the Top-Up Option is being, and the Top-Up Shares to be acquired upon exercise of the Top-Up Option are being and will be, be acquired by Merger Subsidiary 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 1933 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 Shares may include will not be taken into account in any legends required by applicable securities lawsdetermination of the fair value of any Dissenting Shares pursuant to Chapter 302A.471 of the MBCA.
Appears in 2 contracts
Samples: Merger Agreement (MGC Parent LLC), Merger Agreement (MGC DIAGNOSTICS Corp)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”)) to purchase, to purchase from the Company, up at a price per share equal to the Offer Price, that number of authorized and unissued shares of Company Common Stock (the “Top-Up Option Shares, ”) equal to the lowest number of Shares shares of Company Common Stock that, when added to the number of Shares shares of Company Common Stock owned by Parent and/or Merger Subsidiary Sub at the time of exercise such exercise, shall constitute 100 shares of Company Common Stock more than the number of shares of Company Common Stock necessary for Merger Sub to be merged into the Company without a vote or consent of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary Company’s stockholders in accordance with Section 1.04(c), in whole or in part, only once, at any time during 253 of the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is DGCL; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following after such exercise and the exercise of the Top-Up Option, the number issuance of shares of the Company Common Stock owned in the aggregate by Parent and pursuant thereto, Merger Subsidiary constitutes at least one share Sub would own more than 90% of the number of shares of Company Common Stock that would necessary for Merger Sub to be outstanding immediately after merged into the Company without a vote or consent of the Company’s stockholders in accordance with Section 253 of the DGCL (assuming the issuance of all the Top-Up Option Shares) and (ii) for a number of shares of Company Common Stock subject in excess of the number of then authorized and unissued shares together with shares of Company Common Stock held as treasury shares. For the avoidance of doubt, nothing herein shall be construed or is intended to such obligate Merger Sub to exercise of the Top-Up Option.
(b) Merger Sub may exercise the Top-Up Option, or in whole but not in part, at any one time after the Acceptance Time and prior to the earlier to occur of (iiii) unless the Minimum Condition shall have been satisfied. Effective Time and (ii) the termination of this Agreement pursuant to Article X. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Merger Subsidiary Sub pursuant to the Top-Up Option shall may be determined paid by multiplying the number of such Shares Merger Sub, at its election, either (A) entirely in cash or (B) by paying in cash in an amount equal to the price paid for each Share in aggregate par value of the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by purchased Top-Up Option Shares and executing and delivering to the Company a an unsecured promissory note issued by Merger Sub having a principal amount equal to the remainder of such purchase price, or (C) any combination of the foregoing. Any such The promissory note shall be full recourse against Parent and Merger Sub, shall bear interest at the a rate of 65% per annum, shall mature on the first anniversary of the date of execution and delivery of such the promissory note note, and may be prepaid in whole or in part at any time without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payablehave no other material terms.
(c) In the event Merger Subsidiary Sub wishes to exercise the Top-Up Option, Merger Subsidiary Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of shares of Company Common Stock owned by Parent and its Subsidiaries, (ii) the number of Top-Up Option Shares that Merger Subsidiary Sub intends to purchase pursuant to the Top-Up Option Option, (iii) the manner in which Merger Sub intends to pay the applicable purchase price and (iiiv) the place and time at which the closing of the purchase of such Top-Up Option Shares by Merger Subsidiary Sub is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Option Shares, Parent and Merger Subsidiary Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up SharesOption Shares being purchased pursuant to the Top-Up Option, and the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the such Top-Up Option Shares orand upon request of Parent, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, will use its reasonable best efforts to cause its transfer agent to certify in writing the applicable number of non-certificated shares of Company Common Stock represented by bookoutstanding immediately prior to issuance of the Top-entryUp Option Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the 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 12.0111.2, 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 Delaware Law the DGCL and as contemplated by Section 9.05 8.3(e) 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 Merger Subsidiary Sub understand that the shares of Company Common Stock which Merger Sub may acquire upon exercise of the Top-Up Shares Option will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsSub represent and warrant to the Company that Merger Sub is, warrants and or will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D under the Securities Act. Merger 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 Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Option Shares may shall include any legends required by applicable securities lawsLaws.
Appears in 2 contracts
Samples: Merger Agreement (Brigham Exploration Co), Merger Agreement (Statoil Asa)
Top-Up Option. (a) Subject to Sections 1.04(b(a) and 1.04(c), the The Company grants to Parent and Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only upon the terms and subject to the conditions set forth in this Agreement, to purchase from the Company, up Company an aggregate number of newly-issued Shares equal to the number lesser of authorized and unissued Shares, (i) the number of Shares that, when added to the number of Shares owned by Parent or Merger Subsidiary Sub or any other Subsidiaries of Parent at the time of exercise of the Top-Up Option, constitutes one Share share more than 90% of the sum of the Adjusted Outstanding Share Number plus such additional Shares that would be outstanding immediately after the issuance of all Shares subject to the Top-Up Option and (ii) the aggregate number of shares of Company Common Stock that 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 otherwise committed to be issued under the Equity Compensation Plans, upon conversion of the Convertible Notes or otherwise) at the time of exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Parent or Merger Subsidiary in accordance with Section 1.04(c)Sub, in whole or but not in part, only once, at any time during the 10 Business Day period following at or after the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering PeriodTime, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon no exercise of the Top-Up Option would exceed shall be effective prior to the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of Acceptance Time; provided that the Top-Up Option, Option shall terminate upon the number earlier of shares of (i) the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately fifth (5th) Business Day after the issuance later of all shares (x) the Acceptance Time and (y) the expiration of Company Common Stock subject to such exercise any “subsequent offering period”; and (ii) the termination of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfiedthis Agreement in accordance with its terms. The aggregate purchase price payable for the Top-Up Shares being purchased by Parent or Merger Subsidiary Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price Offer Price and shall be payable by Merger Subsidiary (A) payable, at Parent’s election, in cash, (B) cash or by executing and delivering to the Company a promissory note having a principal amount equal to the aggregate purchase priceprice to be paid pursuant to the Top-Up Option (the “Promissory Note”), or (C) by any combination of the foregoingthereof. Any such promissory note Promissory Note shall be full recourse against Parent and Merger Sub and (i) shall bear interest at the rate of 65% per annum, (ii) shall mature on the first six month anniversary of the date of execution and delivery of such promissory note Promissory Note and (iii) may be prepaid prepaid, in whole or in part, without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) The obligation of the Company to deliver Shares upon exercise of the Top-Up Option is subject to the conditions that (i) no Order shall prohibit the exercise of the Top-Up Option or the delivery of the Shares pursuant to the Top-Up Option in respect of such exercise, (ii) upon exercise of the Top-Up Option, the number of Shares held of record by Parent, Holding and Merger Sub constitutes at least one (1) share more than ninety percent (90%) of the number of Shares that shall be outstanding immediately after the issuance of the Shares pursuant to the Top-Up Option, and (iii) Merger Sub has accepted for payment all Shares validly tendered in the Offer and not properly withdrawn.
(d) In the event Parent or Merger Subsidiary Sub wishes to exercise the Top-Up Option, Parent or Merger Subsidiary Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Parent or Merger Subsidiary intends to Sub hold of record immediately preceding the purchase of Shares pursuant to the Top-Up Option Option, and (ii) the place place, date and time at which the closing of the purchase of such Top-Up Shares by Parent or Merger Subsidiary Sub is to take place. The Top-Up Notice place (which shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable not be more than five (5) Business Days following the date of such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05notice). At the closing of the purchase of the Top-Up such Shares, Parent and or Merger Subsidiary Sub shall cause to be delivered to the Company the consideration (in cash or by Promissory Note in accordance with Section 1.4(b)) required to be delivered in exchange for the Top-Up such Shares, and the Company shall cause to be issued to Parent or Merger Subsidiary Sub (as the case may be) a certificate representing the Top-Up such Shares or, at Parent’s Parent or Merger SubsidiarySub’s request or otherwise if the Company does not then have certificated shares of Company Common StockShares, the applicable number of non-certificated shares of Company Common Stock uncertificated Shares represented by book-entry. The parties hereto agree .
(e) Parent and Merger Sub acknowledge that the Shares acquired by Merger Sub pursuant to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 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. Each of Parent and Merger Subsidiary represents, warrants Sub represent and warrant to the Company that Merger Sub will be upon the purchase of the Shares pursuant to the Top-Up Option an “accredited investor” as defined in Rule 501 of Regulation D under the Securities Act. Merger Sub agrees that the Top-Up Option is being, and the Shares to be acquired upon exercise of the Top-Up Shares Option are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act). Any certificates evidencing the Shares acquired pursuant to the Top-Up Shares may Option shall include any legends required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Astellas Pharma Inc.), Merger Agreement (Osi Pharmaceuticals Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Parent and Acquisition Co. an option, for so long as this Agreement has not been terminated pursuant irrevocable option which may be assigned by Parent to the provisions hereof another wholly owned subsidiary of Parent (the “Top-Up Option”), exercisable once upon the terms and subject to the conditions set forth herein, to purchase from at the Company, up Per-Share Amount an aggregate number of shares of Company Common Stock (the “Top-Up Shares”) equal to the lowest number of authorized and unissued Shares, the number shares of Shares Company Common Stock that, when added to the number of Shares shares Company Common Stock owned by Merger Subsidiary Parent and its subsidiaries at the time of exercise such exercise, shall constitute one (1) share more than ninety percent (90%) of the Fully Diluted Number of Company Shares (after giving effect to the issuance of the Top-Up OptionShares); provided, constitutes one Share more than 90% however, that in no event shall the Top-Up Option be exercisable for a number of Shares in excess of the Shares that would be outstanding number of the authorized but unissued shares of Company Common Stock as of immediately after prior to the issuance of all Shares to be issued upon exercise of the Top-Up OptionShares; provided, calculated on further, that the Parent and Acquisition Co. shall not exercise the Top-UP Option for a fully-diluted basis (number of shares which exceeds the Shares to maximum number of shares that may be issued upon exercise of pursuant to WVBCA § 31D-6-621 without shareholder approval; provided, further, that the Top-Up OptionOption shall terminate upon the earlier of: (x) the fifth (5th) Business Day (as such term is defined in Rule 14d-1(g)(3) of the Exchange Act, "Business Day") after the later of (1) the expiration date of the Offer and (2) the expiration of any “Top-Up Sharessubsequent offering period”); and (y) the termination of this Agreement in accordance with its terms.
(b) The obligation of the Company to deliver Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during Shares upon the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed is subject to the number conditions that (i) no provision of authorized but unissued any applicable Law (other than the applicable listing and unreserved Sharescorporate governance rules and regulations of the Nasdaq Stock Market), (ii) unless immediately following and no judgment, injunction, order or decree shall prohibit the exercise of the Top-Up Option, Option or the number delivery of the Top-Up Shares in respect of such exercise and (ii) Acquisition Co. has accepted for payment all shares of the Company Common Stock owned validly tendered in the aggregate by Offer and not properly withdrawn and delivered the funds for payment for such shares to the depositary for the Offer.
(c) In the event Parent and Merger Subsidiary constitutes at least one share more than 90% of or Acquisition Co. wishes to exercise the Top-Up Option, Parent or Acquisition Co. shall deliver to the Company a notice setting forth: (i) the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, Parent or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary Acquisition Co. intends to purchase pursuant to the Top-Up Option Option; (ii) the manner in which Parent or Acquisition Co. intends to pay the applicable exercise price; and (iiiii) the place and time at which the closing of the purchase of such Top-Up Shares shares of Company Common Stock by Merger Subsidiary Parent or Acquisition Co. is to take place. The Company shall, as soon as practicable following receipt of such notice, notify Acquisition Co. 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 Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05Shares. At the closing of the purchase of the Top-Up Sharessuch shares of Company Common Stock, Parent and Merger Subsidiary or Acquisition Co. shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Sharessuch shares, and the Company shall cause to be issued to Merger Subsidiary Parent or Acquisition Co. (as the case may be) a certificate representing the Top-Up Shares such shares or, at Parent’s 's or Merger Subsidiary’s Acquisition Co.'s request or otherwise if the Company does not then have certificated shares of Company Common Stockshares, the applicable number of non-certificated shares of Company Common Stock represented by book-entryentry shares. The parties hereto agree shall cooperate to use their reasonable best efforts to cause the closing of the purchase of issue the Top-Up Shares pursuant to occur on an exemption from registration under the same day Securities Act of 1933. Parent and Acquisition Co. represent and warrant that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is beingOption, and the Top-Up Shares will beto be acquired upon exercise of the Top-Up Option, if any, are being and shall be acquired by Merger Subsidiary Parent or Acquisition Co. 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 1933 Act. Any certificates evidencing Securities Act of 1933).
(d) Parent or Acquisition Co. may pay the Company the aggregate price required to be paid for the Top-Up Shares either (i) entirely in cash or cash equivalents or (ii) at Parent's or Acquisition Co.'s election, by (x) paying in cash an amount equal to not less than the 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 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 Acquisition Co. 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 include any legends required by applicable securities lawsbe prepaid, in whole or in part, without premium or penalty.
Appears in 2 contracts
Samples: Merger Agreement (Foster L B Co), Merger Agreement (Foster L B Co)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 1.5, to purchase from the Company, up at a price per share equal to the number greater of authorized and unissued (i) the last reported sale price of a Share on NASDAQ on the last trading day prior to the date on which the Top-Up Option is exercised or (ii) the Closing Amount, newly issued Shares (the “Top-Up Shares, the number of Shares ”) so that, when added to the number of Shares owned by Merger Subsidiary at Purchaser prior to the time of exercise of the Top-Up Option, constitutes one Share more than Purchaser will own at least ninety percent (90% %) of the Shares that would be outstanding shares of each class of capital stock of the Company entitled to vote on the Merger immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis Shares (not including in the Shares owned by Purchaser any Shares tendered pursuant to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”unfulfilled guaranteed delivery procedures).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is ; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent for the number of Shares issuable in excess of the authorized and unissued Shares less the maximum number of Shares potentially necessary for issuance with respect to Company Equity Plan Awards or other obligations of the Company. The Top-Up Option shall be exercisable once at any time following the Offer Acceptance Time and prior to the earlier to occur of (A) the Effective Time and (B) the termination of this Agreement in accordance with its terms; provided, however, that the obligation of the Company to deliver Top-Up Shares upon the exercise of the Top-Up Option would exceed is subject to the number of authorized but unissued and unreserved Shares, condition that (iii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock Shares owned in the aggregate by Parent and Merger Subsidiary Purchaser constitutes at least one share more than 90% of the number of the outstanding shares of each class of capital stock of the Company Common Stock that would be outstanding entitled to vote on the Merger immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or Shares (iiinot including in the Shares owned by Purchaser any Shares tendered pursuant to unfulfilled guaranteed delivery procedures) unless and (ii) the Minimum Condition shall have been satisfied. Purchaser may assign the Top-Up Option and its rights and obligations pursuant to this Section 1.5, in its sole discretion, to Parent.
(b) The parties shall cooperate to ensure that the issuance and delivery of the Top-Up Shares comply with all applicable Legal Requirements, including compliance with an applicable exemption from registration under the Securities Act. If Purchaser wishes to exercise the Top-Up Option, Purchaser shall give the Company written notice, specifying (i) the number of Shares owned by Purchaser 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 Purchaser specifying, based on the information provided by Purchaser in its notice, the number of Top-Up Shares. Prior to the closing of the purchase of the Top-Up Shares, upon Purchaser’s request, the Company shall cause its transfer agent to certify in writing to Purchaser the number of Shares issued and outstanding (A) as of immediately prior to the exercise of the Top-Up Option and (B) after giving effect to the issuance of the Top-Up Shares.
(c) The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall may be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offerpaid, without interest. Such purchase price shall be payable by Merger Subsidiary at Purchaser’s option, (Ai) in cash, (Bii) by executing and delivering to the Company a promissory note having a principal amount equal to the balance of the remaining aggregate purchase price, or (Ciii) any a combination thereof, provided that Purchaser shall use cash for at least the aggregate par value of the foregoingTop-Up Shares. The Board of Directors of the Company has approved such consideration for the Top-Up Shares. Any such promissory note shall bear include the following terms: (1) the maturity date shall be one (1) year after issuance, (2) the unpaid principal amount of the promissory note shall accrue simple interest at the a per annum rate of 6% per annum, shall mature on one percent (1.00%) and (3) the first anniversary of the date of execution and delivery of such promissory note and may be prepaid in whole or in part at any time, without premium penalty or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payableprior notice.
(cd) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary Purchaser shall cause to be delivered to the Company the consideration required to be delivered in exchange for the such Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the such Top-Up Shares to occur on the same day that the Topbe issued to Purchaser via book-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Sharesentry delivery.
(de) Parent and Merger Subsidiary understand Purchaser acknowledge that the Top-Up Shares that Purchaser may acquire upon exercise of the Top-Up Option will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsPurchaser represent and warrant to the Company that Purchaser is, warrants and agrees that will be upon the purchase of the Top-Up Option is beingShares, and an “Accredited Investor,” as defined in Rule 501 of Regulation D under the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Trius Therapeutics Inc), Merger Agreement (Cubist Pharmaceuticals Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable upon the terms and conditions of this Section 2.4, to purchase from the Company, up to the that number of authorized newly-issued shares of Class A Common Stock (the “Class A Top-Up Shares”) and unissued Class B Common Stock (the “Class B Top-Up Shares”, and together with the Class A Top-Up Shares, the “Top-Up Shares”) equal to, (x) in the case of the Class A Top-Up Shares, the lowest number of Shares shares of Class A Common Stock that, when added to the number of Shares owned shares of Class A Common Stock held by Parent and Merger Subsidiary Sub at the time of such exercise (for the avoidance of doubt, after giving effect to the Offer and the Stock Purchase Agreement Transactions), shall be equal to or in excess of ninety percent (90%) of the Top-Up Option, constitutes one Share more than 90% of the Fully Diluted Class A Common Shares that would be outstanding immediately after (assuming the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Class A Top-Up Shares”); and (y) in the case of the Class B Top-Up Shares, the lowest number of shares of Class B Common Stock that, when added to the number of shares of Class B Common Stock held by Parent and Merger Sub at the time of such exercise (for the avoidance of doubt, after giving effect to the Stock Purchase Agreement Transactions and the shares validly tendered into the Offer), shall be equal to or in excess of ninety percent (90%) of the Fully Diluted Class B Common Shares (assuming the issuance of the Class B Top-Up Shares).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during In the 10 Business Day period following event the Acceptance Date, or if any Subsequent Offering Period Minimum Tender Condition is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, satisfied and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option (together with the shares purchased in the Stock Purchase Agreement Transactions) would exceed result in Merger Sub and Parent collectively owning at least 90% of the total shares of Class A Common Stock and Class B Common Stock then outstanding, then Merger Sub shall be obligated to exercise the Top-Up Option and must do so within 24 hours after Merger Sub’s acceptance for payment of shares of Company Common Stock pursuant to the Offer; provided, however, that in no event shall the Top-Up Option be exercised (x) for a number of shares of Class A Common Stock or Class B Common Stock in excess of the number of authorized but unissued and unreserved Sharesshares of Class A Common Stock or Class B Common Stock, as the case may be, (iiincluding as authorized and unissued shares of Company Common Stock, for purposes of this Section 2.4(b), any shares of Company Common Stock held in the treasury of the Company) unless immediately following or (y) any other provision of Applicable Law or Order shall prohibit the exercise of the Top-Up Option, Option or the number of shares delivery of the Top-Up Shares. The aggregate amount payable by Merger Sub to the Company Common Stock owned in for the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% Top-Up Shares shall be equal to the product of the number of shares of Top-Up Shares and the Offer Price (the “Top-Up Consideration”). The Top-Up Consideration shall be paid to the Company Common Stock that would be outstanding immediately after at the issuance of all shares of Company Common Stock subject to such exercise closing of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by at Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the OfferSub’s option, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, by wire transfer of same-day funds, or (B) by (x) paying in cash, by wire transfer of same-day funds, an amount equal to not less than the 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 aggregate purchase price, or price for the Top-Up Shares less the amount paid in cash pursuant to the immediately preceding clause (Cx) any combination of (the foregoing“Promissory Note”). Any such promissory note The Promissory Note (1) shall bear interest at the rate of 6% per annum, shall mature be due on the first anniversary of the date issuance of execution and delivery the Top-Up Shares pursuant to this Section 2.4, (2) shall bear simple interest of such promissory note and 5% per annum, (3) shall be full recourse to Merger Sub, (4) may be prepaid prepaid, in whole or in part, at any time without premium or penalty; provided, however, that upon any Event of Default, all principal penalty and accrued interest thereunder (5) shall immediately become due and payablehave no other material terms.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up OptionOption is exercised in accordance with this Section 2.4, Merger Subsidiary Sub shall deliver to promptly notify the Company a notice (in writing of the “Top-Up Notice”) setting forth following: (i) the number and class of shares of Company Common Stock that will be owned by Parent and Merger Sub immediately preceding the purchase of the Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which for the closing of the purchase of such the Top-Up Shares by Merger Subsidiary (which, subject to Applicable Law and any required regulatory approvals, shall be effected as promptly as practicable and not more than two (2) Business Days after the date such notice is delivered to take placethe Company). The Top-Up Notice Such notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Sub that Merger Subsidiary intends to (and Merger Subsidiary Sub shall, and Parent shall cause Merger Subsidiary Sub to, as promptly as practicable after such exercise) the delivery by the Company of the Top-Up Shares, consummate the Merger in accordance with Section 253 the terms hereof. The Company shall, as soon as practicable following receipt of Delaware Law as contemplated by Section 9.05such notice, notify Parent and Merger Sub in writing of the number of shares of Company Common Stock then outstanding and the number of Top-Up Shares. At the closing of the purchase of the Top-Up Shares, Parent and or Merger Subsidiary Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up SharesConsideration, and the Company shall cause to be issued to Parent or Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated such shares of Company Class A Common Stock or Class B Common Stock, as the applicable number of non-certificated shares of Company Common Stock represented case may be, which certificate may include any legends required by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up SharesApplicable Law.
(d) Parent and Merger Subsidiary understand Sub acknowledge that the Top-Up Shares will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary Sub represents and warrants that Merger Sub will be, upon the purchase of the Top-Up Shares, an “accredited investor,” as defined in Rule 501 of Regulation D under the Securities Act. Each of Parent and Merger Sub represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary Sub for the purpose of investment and not with a view to or for resale in connection with any public distribution thereof within the meaning of the 1933 Securities Act. Any certificates evidencing .
(e) Notwithstanding anything to the contrary contained herein, to the fullest extent permitted by Applicable Law, each of the parties hereto agrees and acknowledges that in any appraisal proceeding under Section 262 of the DGCL with respect to the Dissenting Shares, the Surviving Corporation shall not assert that the Top-Up Option, the Top-Up Shares may include or any legends required by applicable securities lawscash or the Promissory Note delivered to the Company in payment for such Top-Up Option Shares should be considered in connection with the determination of the fair value of the Dissenting Shares in accordance with Section 262 of the DGCL.
Appears in 2 contracts
Samples: Merger Agreement (Everest Merger Sub, Inc.), Merger Agreement (Sport Chalet Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable upon the terms and conditions of this Section 1.4, to purchase from the Company, up to the Company a number of authorized and unissued newly-issued Shares (the “Top-Up Shares, ”) equal to the number of Shares that, when added to the number of Shares owned held by Parent and Merger Subsidiary Sub at the time of such exercise, shall constitute one (1) Share more than the number of Shares necessary for Merger Sub to be merged into the Company pursuant to Section 253 of the DGCL (after giving effect to the issuance of Shares pursuant to the exercise of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may shall only be exercised by Merger Subsidiary in accordance with Section 1.04(c)exercisable once, in whole or and not in part, only once, part at any time during prior to the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is Effective Time; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that that, notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable and shall terminate (ix) to at the extent 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 unreserved Shares (including as authorized and unissued Shares, for purposes of this Section 1.4, any Shares held in the treasury of the Company), (iiy) unless immediately following if any judgment, injunction, order or decree shall prohibit the exercise of the Top-Up Option, Option or the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise delivery of the Top-Up Option, Shares or (iiiz) unless upon the Minimum Condition shall have been satisfiedtermination of the Agreement in accordance with its terms. The Subject to Section 1.4(c), the aggregate purchase price amount payable to the Company for the Top-Up Shares being purchased by Merger Subsidiary pursuant shall be equal to the product of the number of Top-Up Option Shares and the Offer Price (the “Top-Up Consideration”).
(c) The Top-Up Consideration shall be determined by multiplying the number consist of such Shares by (i) an amount equal to the price par value of the Top-Up Shares, to be paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, and (Bii) by executing and delivering to the Company a promissory note having a principal an amount equal to the purchase pricebalance 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 to the extent of the principal amount thereof) with full recourse to Parent, or (C) any combination of the foregoing. Any such promissory note shall bear (A) accrue simple interest at the rate per annum of 6% per annum5.0%, (B) shall mature on the first anniversary of the date of execution and delivery of such promissory note and note, (C) may be prepaid at any time and from time to time, without premium or penalty; provided, however, (D) shall provide that upon any Event of Default, all the unpaid principal amount and accrued interest thereunder under the promissory note shall immediately become due and payablepayable 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 DGCL and otherwise taken all steps necessary such that upon issuance and delivery in accordance with this Section 1.4 the Top-Up Option Shares shall be validly issued, fully paid and non-assessable.
(cd) In the event Merger Subsidiary Sub wishes to exercise the Top-Up Option, Merger Subsidiary 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 Shares Shares, (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 Merger Subsidiary Sub intends to purchase pursuant to the Top-Up Option and (iiiv) the place and time at manner in which Merger Sub intends to pay the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take placeapplicable exercise price. The Top-Up Notice Such notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Sub that Merger Subsidiary intends to (and Merger Subsidiary Sub shall, and Parent shall cause Merger Subsidiary Sub to, as promptly as practicable after such exercise) exercise of the Top-Up Option and the delivery by the Company of the Top-Up Shares, consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05the terms hereof. At the closing of the purchase of the Top-Up Shares, Parent and or Merger Subsidiary Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up SharesConsideration, and the Company shall cause to be issued to Parent or Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(de) Parent Notwithstanding anything to the contrary contained herein, to the fullest extent permitted by applicable Law, each of Parent, Merger Sub and Merger Subsidiary understand the Company agrees and acknowledges that in any appraisal proceeding under Section 262 of the DGCL with respect to any Dissenting Shares, the Surviving Company (as defined in Section 2.1 below) shall not assert that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsOption, warrants and agrees that the Top-Up Option is being, and Shares or any cash or the promissory note delivered to the Company in payment for such Top-Up Option Shares will be, acquired by Merger Subsidiary for the purpose of investment and not with a view to or for resale should be considered in connection with any distribution thereof within the meaning determination of the 1933 Act. Any certificates evidencing Top-Up fair value of the Dissenting Shares may include any legends required by applicable securities lawsin accordance with Section 262 of the DGCL.
Appears in 2 contracts
Samples: Merger Agreement (Amylin Pharmaceuticals Inc), Merger Agreement (Bristol Myers Squibb Co)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby irrevocably grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof option (the “Top-Up Option”), exercisable only after the acceptance by Merger Sub of, and payment for, Shares tendered in the Offer, to purchase from that number (but not less than that number) of Shares (the Company, up “Top-Up Shares”) as is equal to the number of authorized and unissued Shares, the lowest number of Shares that, when added to the number of Shares owned by Purchaser, Merger Subsidiary Sub and any Subsidiaries or Affiliates of Purchaser or Merger Sub, taken as a whole, at the time of exercise of the Top-Up Optionsuch exercise, constitutes shall constitute one Share share more than 90% of the Shares that would be total shares of Company Common Stock then outstanding immediately after (assuming the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on Shares) at a fully-diluted basis (price per share equal to the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is Offer Price; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary that (i) in no event shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (ix) to the extent the for a number of Shares issuable upon shares of Company Common Stock in excess of the Company’s then authorized and unissued shares of Common Stock (including as authorized and unissued shares of Common Stock, for purposes of this Section 1.5, any shares of Company Common Stock held in the treasury of the Company), or (y) if the issuance of shares of Company Common Stock by the Company in connection with the exercise of the Top-Up Option by Merger Sub would exceed the number of authorized but unissued and unreserved Sharesviolate applicable Nasdaq rules, (ii) unless immediately following Merger Sub shall, concurrently with the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering give written notice to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Optionexercise, Merger Subsidiary intends to Sub shall (and Merger Subsidiary shall, and Parent Purchaser shall cause Merger Subsidiary Sub to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of the Delaware Law GCL as contemplated by Section 9.05. At this Agreement, and (iii) the closing Top-Up Option may not be exercised if any provision of applicable law or any judgment, injunction, order or decree of any federal, state, provincial, local and foreign government, governmental, quasi-governmental, supranational, regulatory or administrative authority, agency, commission or any court, tribunal, or judicial or arbitral body (each, a “Governmental Entity”) shall prohibit, or require any action, consent, approval, authorization or permit of, action by, or filing with or notification to, any Governmental Entity or the purchase Company’s stockholders in connection with the exercise of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to Option or the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase delivery of the Top-Up Shares to occur on the same day that the in respect of such exercise, which action, consent, approval, authorization or permit, action, filing or notification has not theretofore been obtained or made, as applicable.
(b) Any certificates evidencing Top-Up Notice is deemed received Shares may include any legends required by applicable securities laws.
(c) Purchaser and Merger Sub understand that the shares of Company pursuant to Section 12.01, 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 Common Stock that Merger to be consummated in accordance with Section 253 of Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance Sub may acquire upon exercise of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 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. Each of Parent Purchaser and Merger Subsidiary representsSub represent and warrant to the Company that Merger Sub is, warrants and will be upon exercise of the Top-Up Option, an “accredited investor” (as defined in Rule 501 of Regulation D promulgated under the Securities Act). Merger Sub agrees that the Top-Up Option is being, and the Top-Up Shares to be acquired upon exercise thereof are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Whole Foods Market Inc), Merger Agreement (Wild Oats Markets Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 1.4, to purchase from at a price per share equal to the Company, Offer Price paid in the Offer up to the that number of authorized and unissued newly issued Shares (the “Top-Up Shares, ”) equal to the lowest number of Shares that, when added to the number of Shares owned by Merger Subsidiary Parent and its Subsidiaries at the time of exercise of the Top-Up Option, constitutes shall constitute one Share share more than ninety percent (90% %) of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated Shares on a fully-fully diluted basis (the Shares to be issued upon which assumes conversion or exercise of all derivative securities regardless of the Top-Up Optionconversion or exercise price, the “Top-Up Shares”vesting schedule or other terms and conditions thereof).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is ; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, (i) the Top-Up Option shall not be exercisable (i) to the extent the for a number of Shares issuable upon in excess of the Shares authorized and unissued or held in the treasury of the Company at the time of exercise of the Top-Up Option would exceed (giving effect to the number of authorized but unissued Shares issuable pursuant to all then-outstanding Company Stock Options and unreserved Shares, Company RSUs and any other rights to acquire Company Common Stock as if such Shares were outstanding) and (ii) unless immediately following the exercise of the Top-Up Option, Option and the number of shares issuance and delivery of the Company Common Stock owned Top-Up Shares shall not be prohibited by any Law or Order. The Top-Up Option shall be exercisable only once, in whole but not in part, at any time following the aggregate by Parent Offer Closing and prior to the earlier to occur of (A) the Effective Time and (B) the termination of this Agreement in accordance with its terms.
(b) In the event Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject Sub wishes to such exercise of the Top-Up Option, or Merger Sub shall give the Company at least three (iii3) unless Business Days prior written notice, specifying (i) the Minimum Condition shall have been satisfiednumber of Shares owned by Parent and its Subsidiaries at the time of such notice (giving effect to the Offer Closing) 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 Shares to be purchased by Merger Sub. At the closing of the purchase of Top-Up Shares, the aggregate purchase price payable owed by Merger Sub to the Company for the Top-Up Shares being purchased shall be paid to the Company at Parent’s election, either (i) entirely in cash, by Merger Subsidiary pursuant wire transfer of same-day funds or (ii) by (A) paying 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 shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, and (B) by executing and delivering issuing to the Company a promissory note having a principal amount equal to the aggregate purchase price, or price pursuant to the Top-Up Option less the amount paid in cash pursuant to the preceding clause (CA) any combination of (the foregoing“Promissory Note”). Any such promissory note The Promissory Note shall bear interest at a rate per annum equal to the prime lending rate of 6% per annum, shall mature on prevailing during the first anniversary period in which any portion of the date of execution and delivery principal amount of such promissory note remains outstanding, as published by The Wall Street Journal, calculated on a daily basis on the outstanding principal amount of the Promissory Note from the date the Promissory Note is originally issued until the date of payment in full of the Promissory Note, and may be prepaid without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common StockShares, the applicable number of nonBook-certificated shares Entry Shares. Such certificates or Book-Entry Shares may include any legends that are required by federal or state securities Laws.
(c) Parent and Merger Sub acknowledge that no Top-Up Shares issued upon exercise of the Top-Up Option will be registered under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”) and that all such Top-Up Shares will be issued in reliance upon an applicable exemption from registration under the Securities Act. Each of Parent and Merger Sub hereby represents and warrants to the Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of that Merger Sub is, and will be, upon the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01Shares, and if not so consummated on such dayan “accredited investor”, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated defined in accordance with Section 253 Rule 501 of Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered Regulation D under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offeringSecurities Act. Each of Parent and Merger Subsidiary represents, warrants and Sub agrees that the Top-Up Option is being, and the Top-Up Shares to be acquired upon exercise of the Top-Up Option are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws).
Appears in 2 contracts
Samples: Merger Agreement (Thermo Fisher Scientific Inc.), Agreement and Plan of Merger (Dionex Corp /De)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby irrevocably grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof option (the “Top-Up Option”), exercisable only after Purchaser’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 time of such deposit with the Depositary being referred to as the “Purchase Time”), and prior to the Effective Time, to purchase from the Company, up to the Company that number of authorized and unissued Shares (the “Top-Up Shares, ”) equal to the number of Shares that, when added to the number of Shares owned directly or indirectly by Merger Subsidiary at the time of exercise of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole Parent or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless Purchaser immediately following the exercise consummation of the Top-Up OptionOffer, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least shall constitute one share more than 90% of the number of shares of Company Common Stock that would be total Shares then outstanding immediately (after giving effect to the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up OptionShares) at a price per Share equal to the Offer Price; provided, or however, that (iiii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying exercisable only once, at such time as Parent and Purchaser, directly or indirectly, own at least 80% of the total number of such Shares by an amount equal then outstanding and (ii) in no event shall the Top-Up Option be exercisable to the price paid extent it would be exercisable for each Share a number of Shares in excess of the Company’s then authorized and unissued shares of Common Stock (including as authorized and unissued shares of Common Stock, for purposes of this Section 1.5, any Shares held in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination treasury of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payableCompany).
(cb) In the event Merger Subsidiary If Purchaser wishes to exercise the Top-Up Option, Merger Subsidiary Parent or Purchaser shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends Purchaser wishes to purchase pursuant to the Top-Up Option Option, and (ii) the place and time at which the closing of the purchase of such the Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary Purchaser shall cause to be delivered pay the Company (which payment, except to the Company extent of the consideration required to be delivered in exchange for par value of the Top-Up Shares, and may be in the Company shall cause to be issued to Merger Subsidiary form of a certificate representing note) for the Top-Up Up-Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if against delivery of certificates therefor.
(c) Parent and Purchaser understand that the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase Shares that Purchaser may acquire upon exercise of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 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. Each of Parent and Merger Subsidiary representsPurchaser represent and warrant to the Company that Purchaser is, warrants and will be upon exercise of the Top-Up Option, an “accredited investor” (as defined in Rule 501 of Regulation D promulgated under the Securities Act). Purchaser agrees that the Top-Up Option is being, and the Top-Up Shares to be acquired upon exercise thereof are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.. Table of Contents
Appears in 2 contracts
Samples: Merger Agreement (Excel Technology Inc), Merger Agreement (Gsi Group Inc)
Top-Up Option. (a) Subject to Sections 1.04(bSection 2.4(b), Section 2.4(c) and 1.04(cSection 2.4(d) and the satisfaction of the condition that Parent and Merger Subsidiary collectively own at least 70% of the Shares outstanding on a fully diluted basis, calculated in accordance with Section 3.5(b), the Company grants to Merger Subsidiary an irrevocable option, for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”), to purchase from the Company, Company up to the number of authorized and unissued Shares, Shares equal to the number of Shares that, when added to the number of Shares beneficially owned by Parent and/or Merger Subsidiary at the time of exercise of the Top-Up Option, constitutes one Share more than the number of Shares (the “Requisite Short-Form Merger Shares”) entitled to cast 90% of all the Shares that would votes entitled to be outstanding immediately cast by each group or class of shares entitled to vote as a group or class on this Agreement after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis in accordance with Section 3.5(b) or, as may be elected by Parent, on a primary basis at the Effective Time (the such Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c)Subsidiary, in whole or but not in part, only once, at any time during the 10 Business Day period following the Acceptance DateTime, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date Expiration Date of such the Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Requisite Short-Form Merger Shares; provided provided, that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent (A) the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved SharesShares or (B) any provision of Applicable Law or judgment, (ii) unless immediately following injunction, order or decree shall prohibit the exercise of the Top-Up Option, Option or the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise delivery of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfiedShares. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the OfferOffer Price, without interest. Such purchase price shall may be payable paid by Merger Subsidiary Subsidiary, at its election, either (A) entirely in cash, cash or (B) in cash in an amount equal to the aggregate par value of the purchased Top-Up Shares and by executing and delivering to the Company a full recourse promissory note having a principal amount equal to the remainder of such purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at a rate per annum equal to the prime rate of 6% per annum, shall mature on the first anniversary of the date of execution and delivery of such promissory note (as published in The Wall Street Journal) and may be prepaid without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option Option, (ii) the manner in which Merger Subsidiary intends to pay the applicable purchase price and (iiiii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entryShares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.0112.1, 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 92A-180 of Delaware Nevada Law and as contemplated by Section 9.05 9.6 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents and warrants that Merger Subsidiary is, and will be upon the purchase of such Top-Up Shares, an “accredited investor,” as defined in Rule 501 of Regulation D under the 1933 Act, and represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may shall include any legends required by applicable securities laws.
(e) After the Acceptance Time, Parent and the Company shall use their respective reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, and assist and cooperate with each other in doing, all things necessary or desirable to procure from NASDAQ or any other Governmental Authority any necessary waiver or other exemption from the requirements of the Rule 5000 Series of the Rules of NASDAQ or other Applicable Law in order to enable the issuance of the Top-Up Shares to occur without the need to obtain the approval of the Company’s stockholders.
Appears in 2 contracts
Samples: Merger Agreement (Catapult Communications Corp), Merger Agreement (Ixia)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby irrevocably grants to Merger Subsidiary Offeror an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof option (the “Top-Up Option”), exercisable upon the terms and conditions set forth in this Section 1.04, to purchase from the Company, up to the that number of authorized and unissued shares of Company Common Stock (the “Top-Up Option Shares, the ”) equal to a number of Shares shares of Company Common Stock that, when added to the number of Shares shares of Company Common Stock directly or indirectly owned by Merger Subsidiary Parent or any of its Subsidiaries (including the Offeror and its Subsidiaries) at the time of such exercise, shall constitute the least amount required so that Parent and Offeror own more than 90% of the shares of Company Common Stock outstanding on a fully diluted basis (as provided below) immediately after exercise of the Top-Up Option, constitutes one Share more than 90% Option at a price per share as set forth below; provided that in no event shall the Top-Up Option be exercisable for a number of shares of Company Common Stock in excess of the Shares that would be outstanding immediately after Company’s then authorized but unissued shares of Company Common Stock. For purposes of percentage of ownership calculations with respect to the issuance Company under this Agreement, “fully diluted basis” assumes the conversion or exercise of all Shares derivative securities or other rights to be issued upon acquire Company Common Stock regardless of the conversion or exercise price, the vesting schedule or other terms and conditions thereof, other than any shares of Company Common Stock subject to the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of . The purchase price for the Top-Up OptionOption Shares shall be equal to the Offer Price, which price shall be payable either, at Offeror’s election, (A) entirely in cash or (B) in cash in an amount equal to the “aggregate par value of the purchased Top-Up Shares”)Option Shares and by the issuance of a full recourse note with a principal amount equal to the remainder of the exercise price.
(b) The Top-Up Option may shall be exercised exercisable by Merger Subsidiary in accordance with Section 1.04(c)Offeror, in whole or in part, only once, at any time during the 10 Business Day period following on or after the Acceptance Date, or if any Subsequent Offering Period is provided, during Time (so long as the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed would, after the number issuance of authorized but unissued shares of Company Common Stock thereunder, be sufficient to allow the Short Form Merger to occur), and unreserved Shares, prior to the earlier to occur of (i) the Effective Time and (ii) unless immediately following the termination of this Agreement in accordance with its terms; 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 Law or Order (each as defined in Section 4.01(d)) shall prohibit the exercise of the Top-Up Option or the delivery of all or a portion of the Top-Up Option Shares in respect of such exercise, (B) no Governmental Entity or self-regulatory organization including any stock exchange shall have threatened any action with respect thereto, (C) upon exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary or Offeror constitutes at least one share more than 90% of the number of shares of Company Common Stock that would will be outstanding on a fully diluted basis immediately after the issuance of the Top-Up Option Shares, and (D) Offeror has accepted for payment all shares of Company Common Stock subject validly tendered in the Offer and not withdrawn. Without limiting the obligations set forth in Section 6.03, if the Top-Up Option shall not be exercised in whole or part by Offeror within five (5) Business Days of the Acceptance Time to the extent necessary to allow the Short Form Merger to occur, the Offeror shall use its reasonable best efforts to cooperate with the Company to obtain, as soon as practicable, such required stockholder approval or, pursuant to Section 6.01, the Stockholder Approval and to consummate the Merger.
(c) Upon the exercise of the Top-Up OptionOption in accordance with Section 1.04(a), or (iii) unless the Minimum Condition Parent shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to so notify the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any and shall set forth in such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Topshares of Company Common Stock that are expected to be owned by Parent, Offeror or any wholly-Up Shares that Merger owned Subsidiary intends to of Parent or Offeror immediately preceding the purchase pursuant to of the Top-Up Option Shares and (ii) the a place and time at which for the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to Option Shares (and Merger Subsidiary the Company shall issue the Top-Up Option Shares at such designated time). The Company shall, and Parent shall cause Merger Subsidiary to, as promptly soon as practicable after following receipt of such exercise) consummate notice, notify Parent and Offeror of the Merger in accordance with Section 253 number of Delaware Law as contemplated by Section 9.05shares of Company 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 Merger Subsidiary or Offeror, 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 SharesOption Shares pursuant to Section 1.04(a), and the Company shall cause to be issued to Merger Subsidiary Parent or Offeror a certificate or book-entry shares representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 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 Merger Subsidiary understand Sub acknowledge that the Top-Up Option Shares which Offeror may acquire upon exercise of the Top-Up Option will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsSub represent and warrant to the Company that Offeror is, warrants and or will be upon the purchase of the Top-Up Option Shares, an “accredited investor”, as defined in Rule 501 of Regulation D under the Securities Act. 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 Merger Subsidiary Offeror 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws).
Appears in 2 contracts
Samples: Merger Agreement (Microsoft Corp), Merger Agreement (Greenfield Online Inc)
Top-Up Option. (a) Subject to Sections 1.04(bSection 2.04(b) and 1.04(c)Section 2.04(c) hereof, the Company grants to Merger Subsidiary MergerSub an optionirrevocable option (the “Top-Up Option”), for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”)of Article IX, to purchase from the Company, up Company at a price per share equal to the Offer Price the number of authorized and unissued Shares, Company Common Shares equal to the number of Company Common Shares that, when added to the number of Company Common Shares owned by Merger Subsidiary the Buyer Parties and their Affiliates at the time of exercise of the Top-Up OptionOption or the taking of any action under Section 3-106 of the MGCL as contemplated by Section 7.02 (whichever is greater), constitutes one (1) Company Common Share more than 90% of the votes entitled to be cast by the holders of the then outstanding number of Company Common Shares and Company Series D Preferred Shares (after reflecting and taking into account any adjustment to the number of votes such holders have relative to holders of Company Common Shares in accordance with the terms of the Company Series D Preferred Shares), voting together as a class, on a fully diluted basis (which assumes the exercise of all in-the-money options for Company Common Shares vested and exercisable as of the Acceptance Date and 60 days thereafter, at the time of the expiration of the Offer), that would be outstanding immediately after the issuance of all Company Common Shares subject to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis Option (the such Company Common Shares subject to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c)MergerSub, in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any the Subsequent Offering Period is providedmade available, during the 10 Business Day period following the expiration date of such the Subsequent Offering Period, Period and only if Merger Subsidiary Parent and MergerSub collectively shall own Company Common Shares as of such time entitled to cast less than 90% of the votes entitled to be cast by the holders of the then outstanding number of Company Common Shares and Company Series D Preferred Shares (after reflecting and taking into account any adjustment to the number of votes such holders have relative to holders of Company Common Shares in accordance with the terms of the Company Series D Preferred Shares), voting together as a class, on a fully diluted basis (which assumes the exercise of all in-the-money options for Company Common Shares vested and exercisable as of the Acceptance Date and 60 days thereafter, at the time of the expiration of the Offer); provided provided, however, that notwithstanding anything in this Agreement to the contrary, contrary (i) the Top-Up Option shall not be exercisable if (iA) to the extent the number of Company Common Shares issuable upon exercise of the such Top-Up Option would exceed the number of authorized but unissued and unreserved SharesCompany Common Shares or (B) if any provision of applicable Laws or any judgment, (ii) unless immediately following injunction, order or decree of any Governmental Authority would prohibit, or require any action, consent, approval, authorization or permit of, action by, or filing with or notification to, any Governmental Authority or the Company’s stockholders in connection with the exercise of the Top-Up Option, Option or the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise delivery of the Top-Up OptionShares in respect of such exercise, which action, consent, approval, authorization or (iii) unless the Minimum Condition shall have permit, action, filing or notification has not theretofore been satisfiedobtained or made, as applicable. The aggregate purchase price payable for the Top-Up Company Common Shares being purchased by Merger Subsidiary MergerSub pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price Offer Price and shall be payable by Merger Subsidiary (A) paid in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary MergerSub wishes to exercise the Top-Up Option, Merger Subsidiary MergerSub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary MergerSub intends to purchase pursuant to the Top-Up Option Option, (ii) the manner in which MergerSub intends to pay the applicable exercise price and (iiiii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary MergerSub is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary MergerSub that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary MergerSub intends to (and Merger Subsidiary MergerSub shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law the MGCL as contemplated by Section 9.057.02. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary MergerSub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary MergerSub, a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entryShares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01Section 10.02, 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 Delaware Law the MGCL as contemplated by Section 9.05 Section 7.02 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) . Parent and Merger Subsidiary MergerSub understand that the Top-Up Shares will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary MergerSub represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary MergerSub 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 1933 Securities Act. Any certificates evidencing representing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Centro Properties LTD), Merger Agreement (New Plan Excel Realty Trust Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “"Top-Up Option”"), exercisable only on or after the Determination Time, to purchase from that number of shares of Company Common Stock (the Company, up "Top-Up Option Shares") equal to the lowest number of authorized and unissued Shares, the number shares of Shares Company Common Stock that, when added to the number of Shares shares of Company Common Stock owned by Merger Subsidiary Sub at the time of exercise such exercise, shall constitute one share more than ninety percent (90%) of the then outstanding shares of Company Common Stock (assuming the issuance of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Option Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during a price per share equal to the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is Offer Price; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable unless immediately after such exercise Sub would own at least ninety percent (i90%) to of the extent then outstanding shares of Company Common Stock (assuming the number of Shares issuable upon exercise issuance of the Top-Up Option would exceed Shares) and at least ninety percent (90%) of the then outstanding shares of Company Series D Stock; and provided, further, that in no event shall the Top-Up Option be exercisable for a number of shares in excess of the Company's then authorized but unissued shares of Company Common Stock (giving effect to such shares of Company Common Stock reserved for issuance pursuant to outstanding Company Employee Stock Options, Warrants and unreserved Shares, shares of Company Series D Stock as though such shares of Company Common Stock were outstanding).
(iib) unless immediately following the Sub may exercise of the Top-Up Option, in whole but not in part, at any one time after the number 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; and (iii) ten (10) Business Days after the occurrence of a Top-Up Exercise Event, if Sub has failed to notify the Company in writing of its intent to exercise the Top-Up Option in accordance with the terms and conditions of this Agreement.
(c) For purposes of this Agreement, a "Top-Up Exercise Event" shall occur only if immediately after consummation of the Offer Sub beneficially owns at least eighty-five percent (85%) of the outstanding shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than ninety percent (90% %) of the outstanding shares of Company Series D Stock.
(d) In the event Sub wishes to exercise the Top-Up Option, Sub shall so notify the Company in writing, and shall set forth in such notice (i) the number of shares of Company Common Stock that would are expected to be outstanding owned by Sub immediately after preceding the issuance of all shares of Company Common Stock subject to such exercise purchase of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At 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 Sub, in writing, of the number of shares of Company Common Stock then outstanding and the number of Top-Up Option Shares. At the Top-Up Closing, Parent and Merger Subsidiary 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 Shares, Option Shares and the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if Option Shares.
(e) The obligation of the Company does not then have certificated shares of Company Common Stock, to deliver Top-Up Option Shares upon the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase exercise of the Top-Up Shares to occur on the same day that the Top-Up Notice Option is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, subject to the extent possible, on following conditions: (i) any applicable waiting period under the same day as) HSR Act and regulations analogous to the HSR Act existing in foreign jurisdictions relating to the issuance of the Top-Up Shares.
Option Shares will have expired or been terminated; (dii) Parent no provision of any Applicable Law or regulation and Merger Subsidiary understand that no Order or decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect of any such exercise; and (iii) either (A) delivery of the Top-Up Option Shares would not require the approval of the Company's stockholders pursuant to the rules and regulations of The Nasdaq Stock Market or (B) Sub 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 Closing.
(f) Parent and Sub understand that the shares of Company Common Stock that Sub may acquire upon exercise of the Top-Up Option will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offeringtransaction. Each Sub is, or will be upon the purchase of Parent and Merger Subsidiary representsthe Top-Up Option Shares, warrants and an Accredited Investor, as defined in Rule 501 of Regulation D promulgated under the Securities Act. 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 Merger Subsidiary 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 1933 Securities Act. Any certificates .
(g) Certificates evidencing the Top-Up Option Shares may 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
Samples: Merger Agreement (I Stat Corporation /De/), Merger Agreement (I Stat Corporation /De/)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 1.04, to purchase from at a price per share equal to the Company, Offer Price paid in the Offer up to that number (but not less than that number) of newly issued shares of Company Common Stock (the “Top-Up Shares”) equal to the lowest number of authorized and unissued Shares, the number shares of Shares Company Common Stock that, when added to the number of Shares owned shares of Company Common Stock owned, directly or indirectly, by Parent or Merger Subsidiary Sub and their respective Subsidiaries at the time of exercise of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time constitute no less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would will be outstanding immediately after the issuance of all shares the Top-Up Shares. The Top-Up Option shall be exercisable only once, in whole but not in part, at any time following the Offer Closing and prior to the earlier to occur of Company Common Stock subject to such (A) the Effective Time and (B) the termination of this Agreement in accordance with its terms; provided, however, that (i) upon exercise of the Top-Up Option, the number of shares of Company Common Stock owned, directly or indirectly, by Parent or Merger Sub and their respective Subsidiaries shall constitute no less than one share more than 90% of the number of shares of Company Common Stock that will be outstanding immediately after the issuance of the Top-Up Shares; (ii) the Top-Up Option shall not be exercisable for a number of 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 (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), (iii) unless at the Minimum Condition time of exercise, Merger Sub shall have been satisfiedaccepted for payment all shares of Company Common Stock validly tendered in the Offer and not validly withdrawn, and (iv) the exercise of the Top-Up Option and the issuance and delivery of the Top-Up Shares shall not be prohibited by any Law or Order.
(b) In the event Merger Sub wishes to exercise the Top-Up Option in accordance with Section 1.04(a), Merger Sub shall so notify the Company, and shall set forth in such notice (i) the number of shares of the Company Common Stock expected to be owned, directly or indirectly, by Parent or Merger Sub and their respective Subsidiaries immediately preceding the purchase of the Top-Up Shares (giving effect to the Offer Closing), (ii) the number of Top-Up Shares to be purchased, (iii) a place and a time for the closing of such purchase, and (iv) Merger Sub’s agreement to (and Parent’s agreement to cause Merger Sub to) consummate the Merger in accordance with the DGCL as promptly as practicable following purchase of the Top-Up Shares. The At the closing of the purchase of Top-Up Shares, the aggregate purchase price payable owed by Merger Sub to the Company for the Top-Up Shares being purchased shall be paid to the Company by Merger Subsidiary pursuant Sub at Merger Sub’s election, either (i) entirely in cash, by wire transfer of immediately available funds to an account designated by the Company, (ii) by (A) paying in cash by wire transfer of by wire transfer of immediately available funds to an account designated by the Company an amount equal to not less than the aggregate par value of the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, and (B) by executing and delivering to the Company a promissory note having a principal amount equal to the aggregate purchase priceprice of the Top-Up Shares (the “Promissory Note”), or (Ciii) any by a combination of the foregoingmethods set forth in the preceding clauses (i) and (ii). Any such promissory note The Promissory Note (i) shall bear simple interest at the a rate of 65% per annum, (ii) shall mature on the first anniversary of the date of execution of the Promissory Note, (iii) shall be full recourse to Parent and delivery of such promissory note and Merger Sub, (iv) may be prepaid prepaid, at any time, in whole or in part, without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (iiv) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take placeshall have no other material terms. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common StockShares, the applicable number of nonBook-certificated shares of Company Common Stock represented Entry Shares. Such certificates or Book-Entry Shares may include any legends that are required by book-entryfederal or state securities Laws. The parties hereto agree Parties shall cooperate to use their reasonable best efforts to cause the closing ensure that any issuance of the purchase Top-Up Shares is accomplished consistent with all applicable Laws.
(c) Parent and Merger Sub acknowledge that no Top-Up Shares issued upon exercise of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”) and that all such shares will be issued in reliance upon an applicable exemption thereunder from registration under the Securities Act for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsSub hereby represents and warrants to the Company that each of Parent and Merger Sub are, warrants and will be, upon the exercise of the Top-Up Option and purchase of the Top-Up Shares, an “accredited investor,” as defined in Rule 501 of Regulation D under the Securities Act. Each of Parent and Merger Sub agrees that the Top-Up Option is being, and the Top-Up Shares to be acquired upon exercise of the Top-Up Option are being and will be, be acquired by Merger Subsidiary it 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 1933 Securities Act. Any certificates evidencing ).
(d) The parties agree and acknowledge that in any appraisal proceeding to determine the fair value of any Dissenting Shares pursuant to Section 262 of the DGCL as contemplated by Section 3.03, to the fullest extent permitted by applicable Law, the Surviving Corporation shall not assert that the Top-Up Option, the issuance of the Top-Up Shares may include or the payment by Merger Sub to the Company of any legends required consideration for the Top-Up Shares should be taken into account.
(e) In the event of any change in the number of shares of outstanding Company Common Stock by applicable securities lawsreason 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 Top-Up Option, the number of Top-Up Option Shares will be adjusted appropriately so as to restore to Merger Sub its rights hereunder with respect to the Top-Up Option as the same exists as of the date of this Agreement; provided that this Section 1.04(e) shall not be deemed to constitute a waiver of any breach by the Company of Section 6.01.
Appears in 2 contracts
Samples: Merger Agreement (Randstad North America, L.P.), Merger Agreement (SFN Group Inc.)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby irrevocably grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof option (the “Top-Up Option”), exercisable, on one or more occasions, in Purchaser’s discretion, but only after the acceptance by Purchaser of, and payment for, Shares tendered in the Offer, to purchase from (for cash or a note payable) that number (but not less than that number) of Shares (the Company, up “Top-Up Shares”) as is equal to the number of authorized and unissued Shares, the lowest number of Shares that, when added to the number of Shares owned by Merger Subsidiary GSK, Parent or Purchaser at the time of such exercise, shall constitute (i) if the Offer was amended to reflect the Revised Minimum Number, forty-nine and nine-tenths percent (49.9%) of the total Shares then outstanding (assuming the issuance of the Top-Up Shares) or (ii) in all other circumstances, one share more than ninety percent (90%) of the total Shares then outstanding (assuming the issuance of the Top-Up Shares), in each case at a price per Share equal to the Offer Price; provided, however, that (x) in no event shall the Top-Up Option be exercisable for a number of Shares in excess of the Company’s then authorized and unissued Shares (including as authorized and unissued Shares, for purposes of this Section 1.5, any Shares held in the treasury of the Company), and (y) the Top-Up Option may not be exercised if any provision of applicable Law or any judgment, injunction, order or decree of any Governmental Entity shall prohibit, or require any action, consent, approval, authorization or permit of, action by, or filing with or notification to, any Governmental Entity or the Company’s shareholders in connection with the exercise of the Top-Up Option or the delivery of the Top-Up Shares in respect of such exercise, which action, consent, approval, authorization or permit, action, filing or notification has not theretofore been obtained or made, as applicable. Upon Purchaser’s request, the Company shall cause its transfer agent to certify in writing to Purchaser the number of Shares issued and outstanding immediately prior to the exercise of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Any certificates evidencing Top-Up Option Shares may be exercised include any legends required by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during applicable securities laws.
(c) Parent and Purchaser understand that the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided Shares that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable Purchaser may acquire upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 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. Each of Parent and Merger Subsidiary representsPurchaser represent and warrant to the Company that Purchaser is, warrants and will be upon exercise of the Top-Up Option, an “accredited investor” (as defined in Rule 501 of Regulation D promulgated under the Securities Act). Purchaser agrees that the Top-Up Option is being, and the Top-Up Shares to be acquired upon exercise thereof are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing .
(d) In the event that Purchaser wishes to exercise the Top-Up Option, it shall deliver to the Company a notice setting forth (i) the number of Top-Up Shares may include any legends that it intends to purchase pursuant to the Top-Up Option, (ii) the manner in which it intends to pay the applicable exercise price and (iii) the place and time at which the closing of the purchase of the Top-Up Shares by Purchaser is to take place. At the closing of the purchase of the Top-Up Shares, Purchaser shall cause to be delivered to the Company the consideration required by applicable securities lawsto be delivered in exchange for such Top-Up Shares, and the Company shall cause to be issued to Purchaser a certificate representing such shares.
Appears in 2 contracts
Samples: Merger Agreement (Genelabs Technologies Inc /Ca), Merger Agreement (Glaxosmithkline PLC)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Purchaser an irrevocable option, for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”), to purchase from that number of shares of Common Stock (the Company, up “Top-Up Option Shares”) equal to the lowest number of authorized and unissued Shares, the number shares of Shares Common Stock that, when added to the number of Shares shares of Common Stock owned by Merger Parent, Purchaser and/or any other Subsidiary of Parent at the time of exercise of the Top-Up Optionsuch exercise, constitutes shall constitute one Share (1) share more than 90% of the Shares that would be outstanding immediately after the issuance shares of all Shares to be issued upon exercise of the Top-Up OptionCommon Stock then outstanding, calculated on a fully-fully diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only oncebasis, at any time during a price per share payable in cash equal to the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is Offer Price; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable exercisable, unless immediately after such exercise the Purchaser would own more than ninety percent (i90%) of the Common Stock then outstanding.
(b) Subject to no statute, rule or regulation having been enacted or promulgated by any Governmental Entity which prohibits the extent consummation of the number Merger and there being no order or injunction of Shares issuable upon exercise a court of competent jurisdiction in effect preventing consummation of the Top-Up Option would exceed or the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up OptionMerger, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% per annum, shall mature on the first anniversary of the date of execution and delivery of such promissory note and Purchaser may be prepaid without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver in whole but not in part, at any one time after the occurrence of a Top-Up Exercise Event and prior to the Company earlier to occur of (x) the Effective Time and (y) the date which is fifteen (15) business days after the occurrence of a notice (the Top-Up Exercise Event. For purposes of this Agreement, a “Top-Up Notice”) setting forth Exercise Event” shall occur if (i) the number of Top-Up Purchaser shall have accepted Shares that Merger Subsidiary intends to purchase for payment pursuant to the Offer and (ii) the issuance of Shares pursuant the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does would not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Sharesrequire shareholder approval under NYSE Rule 312.03.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Koch Industries Inc), Merger Agreement (Georgia Pacific Corp)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Parent and Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the ““ Top-Up Option”), subject to the terms and conditions hereof, to purchase from the Company, up Company that number of shares of Company Common Stock (the “ Top-Up Shares”) equal to the lowest number of authorized and unissued Shares, the number shares of Shares Company Common Stock that, when added to the number of Shares shares of Company Common Stock owned by Parent and its Subsidiaries (including Merger Subsidiary Sub) at the time of exercise of the Top-Up Option, constitutes shall constitute one Share more than 90% share of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after outstanding, at an exercise price per Top-Up Share equal to the Offer Price; provided that, the Merger Sub may, and at the request of the Company, Merger Sub shall (and at the request of the Company, Parent shall cause Merger Sub to) exercise the Top- Up Option, only if (i) the exercise of the Top-Up Option and the issuance and delivery of all the Top-Up Shares shall not be prohibited by any Law or Restraint,
(ii) the Top-Up Option is exercisable for not more than the number of shares of Company Common Stock subject to such in excess of the shares of Company Common Stock authorized but unissued (and not reserved for issuance) at the time of exercise of the Top-Up Option, or and (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for Merger Sub irrevocably commits upon exercise of the Top-Up Shares being purchased Option to promptly effect a short-form merger pursuant to Section 1.05 hereof following such exercise.
(b) The Top-Up Option shall only be exercisable once, in whole and not in part, promptly after the acceptance for payment by Merger Subsidiary Sub of shares of Company Common Stock pursuant to the Offer representing at least such number of shares of Company Common Stock as shall satisfy the Minimum Tender Condition; provided that, the Top-Up Option shall be determined by multiplying terminate upon the number earlier of such Shares by an amount equal to (i) the price paid for each Share in termination of this Agreement and (ii) the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payableEffective Time.
(c) In the event Merger Subsidiary wishes to To exercise the Top-Up Option, Parent or Merger Subsidiary Sub shall deliver to so notify the Company a in writing and shall set forth in such notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing shares of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed Company Common Stock owned by Parent and its Subsidiaries (including Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exerciseSub) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of immediately preceding the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.,
Appears in 2 contracts
Samples: Merger Agreement, Merger Agreement
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “90% Top-Up Option”), to purchase from exercisable only upon the Company, up terms and subject to the conditions set forth herein, to purchase, at a price per share equal to the Offer Price, payable in cash, that number of authorized and unissued shares of Common Stock (the “90% Top-Up Option Shares, ”) equal to the lesser of: (x) the lowest number of Shares shares of Common Stock that, when added to the number of Shares shares of Common Stock owned by Merger Subsidiary Parent, Purchaser and their respective subsidiaries at the time of exercise of the Top-Up Optionsuch exercise, constitutes shall constitute one Share share more than 90% of the Shares that would be shares of Common Stock then outstanding immediately on a fully diluted basis (after giving effect to the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The 90% Top-Up Option may be exercised by Merger Subsidiary Shares); and (y) an aggregate number of shares of Common Stock in accordance with Section 1.04(c), in whole or in part, only once, at any time during excess of the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is Company’s total authorized and unissued shares of Common Stock; provided, during however, that (i) the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable unless, immediately after such exercise and the issuance of shares of Common Stock pursuant thereto, the Short Form Threshold would be reached (i) to assuming the extent the number of Shares issuable upon exercise issuance of the 90% Top-Up Option would exceed Shares) and (ii) if the number of authorized but unissued 90% Top-Up Option Shares issued equals or exceeds 20% of the number of the issued and unreserved Shares, outstanding Shares as of the date hereof all of the conditions set forth in Article VII must be satisfied or waived (iiother than those that by their terms cannot be satisfied until the time of the Closing).
(b) unless immediately following Provided that no applicable Law or other legal impediment shall prohibit the exercise of the 90% Top-Up Option or the issuance of the 90% Top-Up Option Shares pursuant thereto, or otherwise make such exercise or issuance illegal, Purchaser may exercise the 90% Top-Up Option, in whole but not in part, at any one time after the number Appointment Time and prior to the earlier to occur of: (i) the Effective Time; and (ii) the termination of shares of this Agreement pursuant to Section 8.1.
(c) In the Company Common Stock owned in event Purchaser wishes to exercise the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or Purchaser shall send to the Company a written notice (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the a “90% Top-Up Shares being purchased by Merger Subsidiary pursuant Exercise Notice”, the date of which notice is referred to herein as the “90% Top-Up Notice Date”) specifying the denominations of the certificate or certificates evidencing the 90% Top-Up Option shall be determined by multiplying Shares which Purchaser wishes to receive, and the place, time and date for the closing of the purchase and sale pursuant to the 90% Top-Up Option (the “90% Top-Up Closing”). The Company shall, promptly after receipt of the 90% Top-Up Exercise Notice, deliver a written notice to Purchaser confirming the number of such 90% Top-Up Option Shares by an amount equal and the aggregate purchase price therefor (the “90% Top-Up Notice Receipt”). At the 90% Top-Up Closing, Purchaser shall pay the Company the aggregate price required to the price be paid for each Share in the Offer, without interest90% Top-Up Option Shares and the Company shall cause to be issued to Purchaser a certificate or certificates representing the 90% Top-Up Option Shares. Such The purchase price shall for the 90% Top-Up Option Shares may be payable paid by Merger Subsidiary (A) Purchaser, at its election, either in cash, (B) cash or by executing and delivering to the Company a promissory note having a principal amount equal to the such purchase price, or (C) by any combination of the foregoingcash and such promissory note. Any such promissory note shall bear interest at the applicable federal rate determined under Section 1274(d) of 6% per annumthe Code, 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, . Such certificates may include any legends that are required by federal or state securities Laws. Parent and Purchaser understand that the Shares which Purchaser may acquire upon any Event exercise of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the 90% Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsPurchaser represent and warrant to the Company that Purchaser is, warrants and agrees that or will be upon the purchase of the 90% Top-Up Option is beingShares, and an Accredited Investor, as defined in Rule 501 of Regulation D promulgated under the Securities Act. Purchaser agrees that the 90% Top-Up Option and the 90% Top-Up Option Shares to be acquired upon exercise of the 90% Top-Up Option are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Nextest Systems Corp), Merger Agreement (Teradyne, Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company grants to Merger Subsidiary Sub an irrevocable option, exercisable once upon the terms and subject to the conditions set forth herein, for so long as this Agreement has not been terminated pursuant to the provisions hereof ARTICLE VIII (the “Top-Up Option”), to purchase from the Company, Company up to the number of authorized and unissued Sharesshares of Company Common Stock (including as authorized and unissued shares, for purposes of this Section 1.4, any shares of Company Common Stock held in the treasury of the Company) equal to the number of Shares shares that, when added to the number of Shares shares owned by Merger Subsidiary Sub at the time of exercise of the Top-Up Option, constitutes one Share share more than the number of shares (the “Requisite Short-Form Merger Shares”) entitled to cast 90% of all the Shares that would votes entitled to be outstanding immediately cast by the holders of the Company Common Stock on the Merger after the issuance of all Shares shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis or, as may be elected by Parent, on a primary basis as of immediately prior to the issuance of such shares (the Shares such shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c)Sub, in whole or in part, only once, part at any time during the 10 Business Day period following the Acceptance DateOffer 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, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if provided that Merger Subsidiary Sub shall own as of such time less than 90% of the outstanding Requisite Short-Form Merger Shares; provided that notwithstanding . Notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent (x) the number of Shares shares of Company Common Stock issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, shares of Company Common Stock that are not already reserved for issuance or (iiy) unless immediately following any other provision of applicable Law or Order shall prohibit the exercise of the Top-Up Option, Option or the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise delivery of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfiedShares. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares shares by an amount equal to the price paid for each Share in the OfferOffer Price, without interest. Such aggregate purchase price shall may be payable paid by Merger Subsidiary (A) Sub, at its election, either in cash, (B) the same form of consideration as the Offer Price or by executing and delivering to the Company a promissory note having a principal amount equal to the such purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% per annum, shall mature on the first anniversary of the date of execution price and delivery of such promissory note and may be prepaid without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payablehaving full recourse to Parent.
(c) 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 (together with the rules and regulations promulgated thereunder, the “Securities Act”). In the event Merger Subsidiary Sub wishes to exercise the Top-Up Option, Merger Subsidiary 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 Company Common Stock owned by Parent and Merger Sub; (ii) the number of Top-Up Shares that Merger Subsidiary Sub intends to purchase pursuant to the Top-Up Option Option; (iii) the manner in which Merger Sub intends to pay the applicable purchase price; and (iiiv) the place and time at which for the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05purchase. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand Sub acknowledge that the Top-Up Shares that Merger Sub may acquire upon exercise of the Top-Up Option will not be registered under the 1933 Act Securities Act, and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and Sub agrees that the Top-Up Option is being, and the Top-Up Shares to be acquired upon exercise of the Top-Up Option are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Parent and Merger Sub represent and warrant to the Company that Merger Sub is, and will be upon purchase of the Top-Up Shares, an “accredited investor” as defined in Rule 501 of Regulation D under the Securities Act. Any certificates evidencing the Top-Up Shares may shall include any legends required by applicable securities lawsLaws.
Appears in 2 contracts
Samples: Merger Agreement (Endo Pharmaceuticals Holdings Inc), Merger Agreement (Healthtronics, Inc.)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Parent and/or Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only upon the terms and subject to the conditions set forth in this Agreement, to purchase from the Company, at a price per share equal to the Offer Price paid in the Offer, up to the that number of authorized and unissued newly issued shares of Company Common Stock (the “Top-Up Option Shares, the number of Shares ”) that, when added to the number of Shares shares of Company Common Stock owned by Parent (or any of its Subsidiaries) or Merger Subsidiary Sub at the time of exercise of the Top-Up Option, constitutes would constitute one Share (1) share more than ninety percent (90% %) of the Shares that would be shares of Company Common Stock then outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (“on a fully-diluted basis” meaning the Shares number of shares of Company Common Stock then issued and outstanding, plus all shares of Company Common Stock that the Company may be required to be issued upon exercise issue as of such date pursuant to options (whether or not then vested or exercisable), rights, convertible or exchangeable securities (only to the extent then convertible or exchangeable into shares of Company Common Stock) or similar obligations then outstanding, and after giving effect to the issuance of the Top-Up OptionOption Shares, but excluding from Parent’s (and any of its Subsidiaries’) and Merger Sub’s ownership, but not from the outstanding shares of Company Common Stock, shares of Company Common Stock tendered pursuant to guaranteed delivery procedures that have not yet been delivered in settlement or satisfaction of such guarantee) (the “Short Form Threshold”). Parent may assign the Top-Up Shares”)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 by Merger Subsidiary at any time after consummation of the Offer and prior to the earlier of (i) the Effective Time and (ii) the termination of this Agreement in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is its terms; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contraryhowever, the Top-Up Option shall not be exercisable (i) to the extent (A) the number of Shares issuable upon shares of Company Common Stock subject to the Top-Up Option exceeds the number of authorized and unissued shares of Company Common Stock available for issuance (less the maximum number of shares of Company Common Stock potentially necessary for issuance with respect to outstanding Company Options and other obligations of the Company), (B) any Restraint or Law shall prohibit the exercise of the Top-Up Option would exceed or the number delivery of authorized but unissued and unreserved the Top-Up Option Shares, (iiC) unless immediately following after such exercise and issuance of shares of Company Common Stock pursuant thereto, the Short Form Threshold would not be reached or (D) Merger Sub has not accepted for payment all shares of Company Common Stock validly tendered in the Offer (or during any subsequent offering period) and not validly withdrawn. The Top-Up Option shall be exercisable only once.
(c) In the event that Parent or Merger Sub wishes to exercise of the Top-Up Option, the number of shares of Parent or Merger Sub shall give the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of written notice (i) specifying the number of shares of Company Common Stock that would are or will be outstanding owned by Parent or any of its Subsidiaries or Merger Sub immediately after following the issuance Acceptance Time (or any closing relating to a subsequent offering period), (ii) specifying a place and a time for the closing of all shares of Company Common Stock subject the purchase and (iii) undertaking to such exercise effect the Merger pursuant to Article II (including the proviso in Section 2.2) as promptly as practicable following the acquisition of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfiedOption Shares. The aggregate purchase price payable for Company shall, as soon as practicable following receipt of such notice, deliver written notice to Parent or Merger Sub specifying the estimated number of Top-Up Shares being purchased by Merger Subsidiary pursuant Option Shares. Prior to the closing of the purchase of the Top-Up Option Shares, the Company shall be determined by multiplying (A) cause its transfer agent to certify in writing to Purchaser the number of such Shares by an amount equal issued and outstanding (x) as of immediately prior to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination closing of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (iiy) after giving effect to the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise issuance of the Top-Up OptionOption Shares and, Merger Subsidiary intends to (and Merger Subsidiary shallB) based thereon, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate determine the Merger in accordance with Section 253 final number of Delaware Law as contemplated by Section 9.05Top-Up Option Shares. At the closing of the purchase of the Top-Up Option Shares, (i) Parent and or Merger Subsidiary Sub shall pay (or cause to be delivered paid) to the Company the consideration required to be delivered in exchange aggregate purchase price payable for the Top-Up Shares, and Option Shares (in an amount equal to the Company shall cause to be issued to Merger Subsidiary a certificate representing product of (x) the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree purchased pursuant to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares Option and (y) the Offer Price (which amount may be paid, at the election of Parent or Merger Sub, either in cash (by wire transfer or cashier’s check) or by execution and delivery of a promissory note having a principal amount equal to occur on the same day that aggregate purchase price for the Top Up Option Shares, or any combination thereof, and (ii) the Company shall cause the Top-Up Notice is deemed received Option Shares to be issued to Parent (or any of its Subsidiaries designated by Parent) or Merger Sub, represented by either certificates or book-entry shares, at the sole option of Parent or Merger Sub. Any promissory note issued pursuant to the immediately preceding sentence shall be in the form attached as Annex C hereto and shall include the following terms: (A) the maturity date shall be one year after issuance, (B) the unpaid principal amount of the promissory note shall accrue simple interest at a per annum rate of 1.5% per annum, (C) the promissory note may be prepaid in whole or in part at any time, without penalty or prior notice, (D) the promissory note shall be with full recourse and shall be fully secured by the Company pursuant to Section 12.01Top-Up Option Shares, (E) the promissory note shall be nonnegotiable and if not so consummated on such day, as promptly thereafter as possiblenontransferable and (F) the promissory note shall have no other material terms. The parties further agree will cooperate to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) ensure that the issuance of the Top-Up SharesOption Shares is accomplished consistent with applicable Laws, including compliance with an applicable exemption from registration under the Securities Act. The Top-Up Option shall terminate concurrently with the termination of this Agreement in accordance with its terms.
(d) Parent and and/or Merger Subsidiary understand Sub acknowledges that the Top-Up Option Shares will which Parent (or any of its Subsidiaries) or Merger Sub may acquire upon exercise of the Top-Up Option shall not be registered under the 1933 Act Securities Act, and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and and/or Merger Subsidiary represents, warrants and Sub agrees that the Top-Up Option is beingOption, and the Top-Up Option Shares will beto be acquired upon exercise of the Top-Up Option, if any, are being and shall be acquired by Parent (or any of its Subsidiaries) or Merger Subsidiary 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 1933 Securities Act). Any certificates evidencing Each of Parent and Merger Sub hereby represents and warrants to the Company that Merger Sub is, and will be, upon the purchase of the Top-Up Shares may include any legends required by applicable securities lawsOption Shares, an “accredited investor,” as defined in Rule 501 of Regulation D under the Securities Act.
Appears in 2 contracts
Samples: Merger Agreement (Fidelity National Financial, Inc.), Agreement and Plan of Merger (O Charleys Inc)
Top-Up Option. (a) Subject to Sections 1.04(bthe number of Shares that have been accepted for payment pursuant to the Offer (after giving effect to any proper withdrawal of Shares prior to the Expiration Date but without giving effect to Shares issuable upon the exercise of the Top-Up Option), together with (x) the number of Shares, if any, then owned of record by Parent or Purchaser or with respect to which Parent or Purchaser otherwise has, directly or indirectly, sole voting power, and 1.04(c(y) the number of shares of Company Common Stock that are issuable upon exercise of Options, that are held in trust pursuant to the Company's Director Stock Unit Program or that constitute restricted shares, in each case whose holders have executed the Stockholders’ Agreement, representing at least eighty percent (80%) but less than ninety percent (90%) of all outstanding Shares (determined on a Fully Diluted Basis), the Company hereby grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable once upon the terms and subject to the other conditions set forth herein, to purchase from at the Company, up Offer Price an aggregate number of Shares (the “Top-Up Shares”) equal to the number of authorized and unissued Shares, the lowest number of Shares that, when added to the number of Shares owned by Merger Subsidiary Parent, Purchaser and their Affiliates at the time of such exercise and the number of shares of Company Common Stock that are issuable upon exercise of Options, that are held in trust pursuant to the Company's Director Stock Unit Program or that constitute restricted shares, in each case whose holders have executed the Stockholders’ Agreement, shall constitute one Share more than ninety percent (90%) of the Shares (after giving effect to the issuance of the Top-Up OptionShares) issued and outstanding, constitutes one Share more than 90% determined on a Fully Diluted Basis (the “Short Form Threshold”); provided, however, that in no event shall the Top-Up Option be exercisable for a number of Shares in excess of the number of authorized but unissued Shares that would be outstanding as of immediately after prior to the issuance of all Shares to be issued upon exercise of the Top-Up OptionShares; provided, calculated on a fully-diluted basis (the Shares to be issued upon exercise of further, that the Top-Up Option, Option shall terminate upon the earlier of: (x) the fifth (5th) Business Day after the later of (1) the Expiration Date and (2) the expiration of any “Top-Up Shares”)subsequent offering period” as described in Section 1.1(f) above and (y) the termination of this Agreement in accordance with its terms.
(b) The obligation of the Company to deliver Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during Shares upon the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed is subject to the number conditions that (i) no provision of authorized but unissued any applicable Law and unreserved Sharesno judgment, injunction, Order or decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Shares in respect of such exercise, (ii) unless immediately following the upon exercise of the Top-Up Option, the number of shares of Shares owned by Parent, Purchaser and their Affiliates will constitute one (1) Share more than the Company Common Stock owned Short Form Threshold, and (iii) Purchaser has accepted for payment all Shares validly tendered in the aggregate by Parent Offer and Merger Subsidiary constitutes at least one share more than 90% of not properly withdrawn prior to the number of shares of Company Common Stock Expiration Date. The parties shall cooperate to ensure that would be outstanding immediately after the issuance of the Top-Up Shares is accomplished consistent with all shares applicable legal requirements of Company Common Stock subject to such all Governmental Entities, including any requirements regarding the availability of an applicable exemption from registration of the issuance of the Top-Up Shares under the Securities Act.
(c) To exercise of the Top-Up Option, or Purchaser shall send to the Company a written notice (iiia “Top-Up Exercise Notice”) unless specifying (i) the Minimum Condition number of Shares that shall have been satisfiedbe owned by Parent, Purchaser and their Affiliates immediately preceding the purchase of the Top-Up Shares and (ii) the place, time and 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 payable therefor (the “Top-Up Notice Receipt”). At the Top-Up Closing, Purchaser shall pay the Company, in the manner set forth in Section 1.7(d) hereof, the aggregate price required to be paid for the Top-Up Shares, in an aggregate principal amount equal to that specified in the Top-Up Notice Receipt, and the Company shall cause to be issued and delivered to Purchaser a certificate or certificates representing the Top-Up Shares or, at Purchaser’s request or otherwise if the 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 applicable Law.
(d) Purchaser may pay the Company the aggregate price required to be paid for the Top-Up Shares being purchased either (i) entirely in cash or, at Purchaser’s election, by Merger Subsidiary pursuant (ii) (x) paying in cash an amount equal to not less than the aggregate par value of the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary and (Ay) in cash, (B) by 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 price, or (C) any combination of the foregoingTop-Up Shares less the amount to be paid in cash pursuant to the immediately preceding clause (x) (a “Promissory Note”). Any such promissory note Promissory Note shall be full recourse against Parent and Purchaser and (1) shall bear interest at the a market rate of 6% interest per annum, payable in arrears at the end of one (1) year, (2) shall mature on the first (1st) anniversary of the date of execution and delivery of such promissory note Promissory Note and (3) may be prepaid prepaid, in whole or in part, without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(ce) In Parent and Purchaser acknowledge that the event Merger Subsidiary wishes to exercise Top-Up Shares shall not be registered under the Securities Act and shall be issued in reliance upon an exemption for transactions not involving a public offering. Purchaser agrees that the Top-Up Option, Merger Subsidiary shall deliver to and the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such be acquired upon exercise of the Top-Up Option, Merger Subsidiary intends to (if any, are being and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws).
Appears in 2 contracts
Samples: Merger Agreement (North American Galvanizing & Coatings Inc), Merger Agreement (Azz Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 1.03, to purchase from at a price per share equal to the Company, Offer Price paid in the Offer up to the that number of authorized and unissued newly issued shares of Company Common Stock (the “Top-Up Shares, ”) equal to the lowest number of Shares shares of Company Common Stock that, when added to the number of Shares shares of Company Common Stock owned by Merger Subsidiary Parent and its Subsidiaries at the time of exercise of the Top-Up Option, constitutes shall constitute one Share share more than 90% of the Shares that would be shares of Company Common Stock outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated Shares on a fully-“fully diluted basis basis” (the Shares to be issued upon which assumes conversion or exercise of all derivative securities regardless of the Top-Up Optionconversion or exercise price, the “Top-Up Shares”vesting schedule or other terms and conditions thereof).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is ; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable for a number of shares of Company Common Stock in excess of (i) to the extent the number of shares of Company Common Stock authorized and unissued or held in the treasury of the Company (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) or (ii) 19.90% of the number of outstanding shares of Company Common Stock or voting power of the Company, in each case as of immediately prior to and after giving effect to the issuance of the Top-Up Shares. The Top-Up Option shall be exercisable at any one time following the Offer Closing and prior to the earlier to occur of (a) the Effective Time and (b) the termination of this Agreement in accordance with its terms. The obligation of the Company to issue and deliver the Top-Up Shares issuable upon the exercise of the Top-Up Option would exceed is subject only to the number of authorized but unissued and unreserved Shares, (ii) unless immediately following condition that no Restraint preventing the exercise of the Top-Up Option or the issuance and delivery of the Top-Up Shares in respect of such exercise shall be in effect.
(b) 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. In the event Sub wishes to exercise the Top-Up Option, Sub shall give the Company at least three business days prior written notice, specifying (i) the number of shares of the Company Common Stock directly or indirectly owned in the aggregate by Parent at the time of such notice and Merger Subsidiary constitutes at least one share more than 90% (ii) a place and a time for the closing of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfiedpurchase. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number Company shall, as soon as practicable following receipt of such Shares by an amount equal notice, deliver written notice to the price paid for each Share in the OfferSub specifying, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% per annum, shall mature based on the first anniversary of the date of execution and delivery of such promissory note and may be prepaid without premium or penalty; providedinformation provided by Sub in its notice, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05Shares. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered the purchase price owed by Sub to the Company the consideration required therefor shall be paid to be delivered in exchange for the Top-Up Shares, and the Company shall cause (i) in cash, by wire transfer or cashier’s check or (ii) by issuance by Sub to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur a promissory note on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, terms reasonably satisfactory to the extent possible, on the same day as) the issuance of the Top-Up SharesCompany.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Mentor Corp /Mn/), Merger Agreement (Johnson & Johnson)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to the Merger Subsidiary an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “"TOP-UP OPTION"), such Top-Up Option”)Option to be exercisable only on or after the Determination Time, to purchase from that number of Shares (the Company, up "TOP-UP OPTION SHARES") equal to the number of authorized and unissued Shares, the lowest number of Shares that, when added to the number of Shares owned by the Merger Subsidiary at the time of exercise of the Top-Up Optionsuch exercise, constitutes shall constitute one Share share more than 90% of the Shares that would be then outstanding immediately after (assuming the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (Option Shares and the Shares to be issued upon exercise of all outstanding exercisable options to purchase Shares with an exercise price less than the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(cOffer Price), in whole or in part, only once, at any time during a price per share equal to the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is Offer Price; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to unless immediately after such exercise the extent Merger Subsidiary would own more than 90% of the number of Shares issuable upon exercise of then outstanding; and provided, further, that in no event shall the Top-Up Option would exceed the be exercisable for a number of shares in excess of the Company's then authorized but unissued and unreserved Shares, Shares (iigiving effect to Shares reserved for issuance under Stock Options as though they were outstanding).
(b) unless immediately following the The Merger Subsidiary may exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes whole but not in part, at least any one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately time after the issuance occurrence of all shares of Company Common Stock subject to such exercise of the a Top-Up Option, or Exercise Event (iiias defined below) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant and prior to the Top-Up Option shall be determined by multiplying Termination Date. The "TOP-UP TERMINATION DATE" will occur upon the number earliest to occur of such Shares by an amount equal the following: (i) the Effective Time; (ii) the termination of this Agreement pursuant to its terms, (iii) ten (10) business days after the price paid for each Share in the Offeroccurrence of a Top-Up Exercise Event, without interest. Such purchase price shall be payable by unless Merger Subsidiary (A) in cash, (B) by executing and delivering to has notified the Company a promissory note having a principal amount equal of its intent to exercise the purchase price, or Top-Up Option in accordance with the terms and conditions of this Agreement; and (Civ) any combination of ten (10) business days after the foregoing. Any such promissory note shall bear interest at Top-Up Response Date (as defined below) unless the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payableTop-Up Closing (as defined below) has previously occurred.
(c) For purposes of this Agreement, a "TOP-UP EXERCISE EVENT" shall occur only upon Merger Subsidiary's acceptance for payment pursuant to the Offer of Shares or acquisition of Shares constituting at least 80% of the Shares then outstanding.
(d) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to so notify the Company a Company, in writing, and shall set forth in such notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that are expected to be owned by Merger Subsidiary intends to immediately preceding the purchase pursuant to of the Top-Up Option Shares and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At 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 Merger Subsidiary, in writing (the date of such notice being the "TOP-UP RESPONSE DATE"), of the number of Shares then outstanding and the number of Top-Up Option Shares. At the Top-Up Closing, Parent and Merger Subsidiary shall cause to be delivered to pay the Company the consideration aggregate price required to be delivered in exchange paid for the Top-Up Shares, Option Shares and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if Option Shares.
(e) The obligation of the Company does not then have certificated shares of Company Common Stock, to deliver Top-Up Option Shares upon the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase exercise of the Top-Up Shares to occur on the same day that the Top-Up Notice Option is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, subject to the extent possible, on following conditions: (i) any applicable waiting period under the same day as) HSR Act and regulations analogous to the HSR Act existing in foreign jurisdictions relating to the issuance of the Top-Up SharesOption Shares will have expired or been terminated; (ii) no provision of any applicable law or regulation and no judgment, injunction, or decree shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect of any such exercise; and (iii) delivery of the Top-Up Option Shares would not require the approval of the Company's shareholders pursuant to the rules and regulations of The Nasdaq Stock Market.
(df) Parent and Merger Subsidiary understand that the Shares which Merger Subsidiary may acquire upon exercise of the Top-Up Shares Option will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offeringtransaction. Each of Parent and Merger Subsidiary representsis, warrants and 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 1933 Act. Merger Subsidiary 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 Merger Subsidiary 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 1933 Act. Any certificates .
(g) Certificates evidencing Top-Up Option Shares may 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
Samples: Merger Agreement (Comshare Inc), Merger Agreement (Comshare Inc)
Top-Up Option. (a) Subject to Sections 1.04(bSection 1.4(b) and 1.04(cSection 1.4(c), the Company grants to Merger Subsidiary Sub, an irrevocable option, for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “"Top-Up Option”"), to purchase from the Company, up to the number of authorized and unissued Shares, Shares equal to the number of Shares that, when added to the number of Shares owned by Merger Subsidiary Sub at the time of the exercise of the Top-Up Option, constitutes at least one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis Option (the such Shares to be issued upon exercise of the Top-Up Option, the “"Top-Up Shares”").
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), Sub in whole or but not in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the . The Top-Up Option shall not be exercisable terminate upon the earlier to occur of (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued Effective Time and unreserved Shares, (ii) unless immediately following the exercise termination of the Top-Up Option, the number of shares of the Company Common Stock owned this Agreement in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfiedaccordance with Article 10. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Shares by an amount equal to the price paid for each Share in the OfferOffer Price, without interest. Such purchase price shall may be payable paid by Merger Subsidiary Sub, at its election, either (A) entirely in cash, cash or (B) by paying in cash an amount equal to not less than the aggregate par value of such Top-Up Shares and by executing and delivering to the Company a promissory note having a principal amount equal to the balance of such purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 63% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In If the event Minimum Condition has been met and the other Offer Conditions have been satisfied or waived and there shall have not been validly tendered and not validly withdrawn that number of shares of Common Stock which, when added to the shares of Common Stock owned by Parent and its Affiliates, would represent at least ninety percent (90%) of the shares of Common Stock outstanding on the Acceptance Date, Merger Subsidiary wishes Sub shall be deemed to exercise have exercised the Top-Up Option, Merger Subsidiary Option on the Acceptance Date and on such date shall deliver to the Company a notice (the “"Top-Up Notice”") setting forth (i) the number of Top-Up Shares that Merger Subsidiary Sub intends to purchase pursuant to the Top-Up Option Option, (ii) the manner in which Merger Sub intends to pay the applicable purchase price and (iiiii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary Sub is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary Sub that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary Sub intends to (and Merger Subsidiary Sub shall, and Parent shall cause Merger Subsidiary Sub to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 92A.180 of Delaware Nevada Law as contemplated by Section 9.058.5. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entryShares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.0111.3, 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 92A.180 of Delaware Nevada Law as contemplated by Section 9.05 8.5 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary Sub understand that the Top-Up Shares will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary Sub represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may shall include any legends required by applicable securities laws.
(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 Shares pursuant to Section 92A.320 of Nevada Law as contemplated by Section 3.3.
Appears in 2 contracts
Samples: Merger Agreement (Emergent Group Inc/Ny), Merger Agreement (Universal Hospital Services Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”)) exercisable only in accordance with the terms and conditions set forth in this Section 1.3, to purchase from that number of shares (but not less than that number) of Company Common Stock (the Company, up “Top-Up Option Shares”) equal to the lowest number of authorized and unissued Shares, the number shares of Shares Company Common Stock that, when added to the number of Shares owned shares of Company Common Stock collectively owned, directly or indirectly, by Parent, Merger Subsidiary Sub or their affiliates at the time of exercise such exercise, shall constitute one share of the Top-Up Option, constitutes one Share Company Common Stock more than 9080% of the Shares that would be total shares of Company Common Stock then outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (assuming the Shares to be issued upon exercise issuance of the Top-Up Option, Option Shares and the “exercise of options that are vested or may vest prior to the Merger Outside Date) at a purchase price per Top-Up Shares”Option Share equal to the Per Share Amount. Notwithstanding the foregoing provisions of this Section 1.3(a), the Top-Up Option shall not be exercisable for shares of Company Common Stock and will terminate on the Acceptance Date if the number of Top-Up Option Shares exceeds the number of shares of Company Common Stock authorized and unissued or held in the treasury of the Company (giving effect to the shares of Company Common Stock issuable pursuant to all then-outstanding Company Stock Options (defined in Section 3.3) and any other rights to acquire shares of Company Common Stock as if such shares were outstanding).
(b) The Top-Up Option may shall not be exercised by exercisable unless, immediately after such exercise and the issuance of shares of Company Common Stock pursuant thereto, after accounting for the limitations set forth herein, Parent and Merger Subsidiary in accordance with Section 1.04(c), in whole Sub or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date their affiliates would hold one share of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less Company Common Stock more than 9080% of the then outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the shares of Company Common Stock. The Top-Up Option shall not be exercisable only once in whole and not in part within ten days after the Acceptance Date and prior to the earlier of (i) the Effective Time (defined in Section 2.2) and (ii) the termination of this Agreement.
(c) If Merger Sub wishes to exercise the Top-Up Option, Merger Sub shall send to the extent Company a written notice (a “Top-Up Exercise Notice”) specifying the number place for the closing of Shares issuable upon exercise the purchase of the Top-Up Option would exceed Shares (the number of authorized but unissued “Top-Up Closing”) and unreserved Shares, (ii) unless immediately following the exercise of a date for the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate Closing. Such notice shall also include an undertaking signed by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to Sub that, as promptly as practicable following such exercise of the Top-Up Option, or (iii) unless Merger Sub shall, and Parent shall cause Merger Sub to, consummate the Minimum Condition shall have been satisfiedMerger in accordance with the terms hereof. The Company shall, promptly after receipt of the Top-Up Exercise Notice, deliver a written notice to Merger Sub confirming (i) the number of shares of Company Common Stock then outstanding and then outstanding on a fully-diluted basis, and (ii) the number of Top-Up Option Shares issuable under the Top-Up Option and the aggregate purchase price payable 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 purchase each Top-Up Option Share from the Company at the Per Share Amount. Payment of the purchase price for the Top-Up Option Shares being purchased may be made, at Merger Sub’s option, by Merger Subsidiary pursuant delivery of (x) immediately available funds by wire transfer to the Top-Up Option shall be determined an account designated by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company or (y) a promissory note having a principal amount equal to the purchase pricenote, or (C) any combination of the foregoingthereof. Any such promissory note shall be full recourse to Parent, bear interest at the applicable federal rate of 6% per annumas determined for U.S. income tax purposes, shall mature on the first anniversary of the date of execution and delivery of such promissory note and may be prepaid at any time without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree shall cooperate to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day ensure that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up SharesOption Shares is accomplished consistent with all applicable legal requirements, including all federal securities laws.
(de) Upon the delivery by Merger Sub to the Company of the Top-Up Exercise Notice and the purchase price described in Section 1.3(d), Merger Sub 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 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).
(f) Certificates evidencing Top-Up Option Shares delivered hereunder may include legends legally required by applicable securities laws. Parent and Merger Subsidiary understand Sub acknowledge that the Top-Up Option Shares that Merger Sub may acquire upon exercise of the Top-Up Option will not be registered under the 1933 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 Merger Subsidiary representsSub hereby represents and warrants to the Company that it is, warrants and agrees that or will be upon the purchase of the Top-Up Option is beingShares, an “accredited investor”, as defined in Rule 501 of Regulation D under the Securities Act, and the that any Top-Up Shares will be, are being acquired by 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws).
Appears in 2 contracts
Samples: Merger Agreement (Coleman Cable, Inc.), Merger Agreement (Technology Research Corp)
Top-Up Option. (a) Subject to Sections 1.04(b2.3(b) and 1.04(c2.3(c), the Company grants to Merger Subsidiary Purchaser an optionirrevocable option (the “Top-Up Option”), for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”)hereof, to purchase from the Company, up to the Company that number of authorized and unissued Shares, Shares equal to the number of Shares that, when added to the number of Shares owned by Merger Subsidiary Parent, Purchaser or their respective Affiliates at the time of exercise of the Top-Up OptionOption and following any “subsequent offering period”, constitutes at least one Share more than ninety percent (90% %) of the Shares on a Fully Diluted Basis that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis Option (the such Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c)exercised, in whole or but not in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding SharesTime; provided that that, notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent that the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved SharesShares that are not reserved or otherwise committed to be issued, (ii) unless immediately following if any Law or Judgment then in effect shall prohibit the exercise of the Top-Up Option, Option or the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise delivery of the Top-Up Option, or Shares and (iii) unless Purchaser has accepted for payment all Shares validly tendered in the Minimum Condition Offer and not withdrawn. The Top-Up Option shall have been satisfiedterminate upon the earlier to occur of (x) the Effective Time and (y) valid termination of this Agreement in accordance with Article VIII. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary Purchaser pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Shares by an amount equal to the price paid for each Share in the OfferOffer Price, without interest. Such purchase price shall may be payable paid by Merger Subsidiary Purchaser, at its election, either (A) entirely in cash, cash or (B) by paying in cash an amount equal to not less than the aggregate par value of such Top-Up Shares and by executing and delivering to the Company a promissory note having a principal amount equal to the balance of such purchase price, or (C) any combination of the foregoing. Any such promissory note shall be fully secured by the Top-Up Shares (to the extent not prohibited by applicable Law), shall be full recourse against Parent and Purchaser, shall bear interest at the rate of 6% two percent (2%) per annum, shall mature on the first (1st) anniversary of the date of execution and delivery of such promissory note and may be prepaid without premium or penalty; provided. Without the prior written consent of the Company, howeverthe right to exercise the Top-Up Option granted pursuant to this Agreement may be exercised only once and shall not be assigned by Purchaser other than to Parent or a wholly owned Subsidiary of Parent, that upon any Event including by operation of DefaultLaw or otherwise, all principal without the prior written consent of the Company. Any attempted assignment in violation of this Section 2.3(b) shall be null and accrued interest thereunder shall immediately become due and payablevoid.
(c) In the event Merger Subsidiary wishes that Purchaser elects to exercise the Top-Up Option, Merger Subsidiary Purchaser shall deliver to the Company a written notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to Parent and Purchaser own immediately preceding the purchase pursuant to of the Top-Up Option Shares, (ii) the manner in which Purchaser intends to pay the applicable purchase price and (iiiii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary Purchaser is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary Purchaser that, as promptly soon as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent Purchaser shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 the Nevada Merger Law. The Company shall, as soon as practicable following receipt of Delaware Law as contemplated such notice, deliver written notice to Purchaser specifying the number of Shares then outstanding and, based on the information provided by Section 9.05Purchaser in its notice, the number of Top-Up Shares. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary Purchaser shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing Purchaser the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entryShares. The parties hereto agree to use their commercially reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.019.4, and if not so consummated on such day, as promptly thereafter as possible. The parties hereto further agree to use their commercially reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of Delaware Law as contemplated by Section 9.05 NRS 92A.180, subject to other applicable Laws, as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares. Parent, Purchaser and the Company shall cooperate to ensure that any issuance of the Top-Up Shares is accomplished in a manner consistent with all applicable Laws.
(d) Parent and Merger Subsidiary Purchaser understand that the Top-Up Shares will not be registered under the 1933 Act Securities Act, and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary Purchaser represents and warrants to the Company that Purchaser is, and will be upon any exercise of the Top-Up Option, an “accredited investor” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Each of Parent and Purchaser represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may shall include any legends required by applicable securities lawsLaws.
(e) Notwithstanding anything to the contrary contained herein, each of Parent, Purchaser and the Company, as among and between one another, agrees and acknowledges that, in any proceeding under the Dissenters’ Rights Statutes with respect to Dissenting Shares, the fair value of the Dissenting Shares shall be determined in accordance with the Dissenters’ Rights Statutes without regard to the Top-Up Option, the Top-Up Shares or any cash or promissory note delivered by Purchaser to the Company as consideration therefor, and the Surviving Corporation shall not assert that the Top-Up Option, the Top-Up Shares or any cash or promissory note delivered by Purchaser to the Company in payment for such Top-Up Shares shall be considered in connection with the determination of the fair value of the Dissenting Shares in accordance with the Dissenters’ Rights Statutes.
Appears in 2 contracts
Samples: Merger Agreement (EQT Corp), Agreement and Plan of Merger (Trans Energy Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c)the satisfaction of the Minimum Condition, the Company Target hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 2.04, to purchase from the Company, at a price per share equal to $1.18 up to the that number of authorized and unissued newly issued shares of Target Common Stock (the “Top-Up Shares, ”) equal to the lowest number of Shares shares of Target Common Stock that, when added to the number of Shares shares of Target Common Stock owned by Parent and its Subsidiaries, including Merger Subsidiary Sub, at the time of exercise of the Top-Up Option, constitutes one Share share more than 90% of the Shares that would be shares of Target Common Stock outstanding immediately after the issuance of the Top-Up Shares on a fully diluted basis (which assumes conversion or exercise of all Shares to derivative securities regardless of the conversion or exercise price, the vesting schedule or other terms and conditions thereof); provided, however, that (i) the Top-Up Option will not be issued upon exercisable for a number of shares of Target Common Stock in excess of the shares of Target Common Stock authorized and unissued or held in the treasury of the Target at the time of exercise of the Top-Up OptionOption (giving effect to the shares of Target Common Stock issuable pursuant to all then-outstanding stock options, calculated on a fully-diluted basis restricted stock units and any other rights to acquire Target Common Stock as if such shares were outstanding), (ii) the Shares to be issued upon exercise of the Top-Up OptionOption and the issuance and delivery of the Top-Up Shares has not been prohibited by any Law or Order, and (iii) the issuance of the Top-Up Shares does not require approval of the Target’s stockholders under applicable Law (including the rules and regulations of any applicable United States securities exchange on which the Target Common Stock is traded). The Top-Up Option will be exercisable only once, in whole but not in part, until the later of thirty (30) days following the Offer Closing or fifteen (15) days following the conclusion of the “subsequent offering periods” under Section 2.01(f) (the “Top-Up SharesOption Exercise Period”).
(b) The Top-Up Option may be exercised by In the event Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement Sub wishes to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, Merger Sub will give the Target at least three (3) Business Days prior written notice, specifying (i) the number of shares of the Company Target Common Stock owned in the aggregate by Parent and its Subsidiaries, including Merger Subsidiary constitutes Sub, at least one share more than 90% the time of such notice (giving effect to the Offer Closing) and (ii) a place and a time for the closing of such purchase. The Target will, 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 shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up OptionShares to be purchased by Merger Sub. At the closing of the purchase of Top-Up Shares, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable owed by Merger Sub to the Target for the Top-Up Shares being purchased will be paid to the Target at Parent’s election, either (i) entirely in cash, by Merger Subsidiary pursuant wire transfer of same-day funds or (ii) partially in cash by wire transfer of same-day funds of an amount equal to not less than the aggregate par value of the Top-Up Option shall be determined Shares and partially by multiplying the number of such Shares by an amount equal issuing to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company Target a promissory note having a principal amount equal to the aggregate purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes price needed to exercise the Top-Up OptionOption less the amount paid in cash, such promissory note to (A) be due and payable on or within six (6) months after the Effective Time, (B) bear simple interest at a rate of five percent (5%) per annum, (C) be full recourse to Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option Sub, and (iiD) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take placecontain no other material terms. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall Target will cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company Target does not then have certificated shares of Company Common StockShares, the applicable number of nonBook-certificated Entry Shares. Such certificates or Book-Entry Shares may include any legends that are required by federal or state securities Laws.
(c) Parent and Merger Sub acknowledge that no Top-Up Shares issued upon exercise of the Top-Up Option will be registered under the Securities Act, and that all such shares will be issued in reliance upon an applicable exemption from registration under the Securities Act. Each of Company Common Stock represented by book-entry. The parties hereto agree Parent and Merger Sub hereby represents and warrants to use their reasonable best efforts to cause the closing of Target that (i) Merger Sub is, and will be, upon the purchase of the Top-Up Shares to occur on Shares, an “accredited investor,” as defined in Rule 501 of Regulation D under the same day that Securities Act, (ii) the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Shares to be consummated acquired upon exercise of the Top-Up Option are being and will be acquired by Merger Sub for the purpose of investment and not with a view to, or for resale in accordance connection with, any “distribution” thereof (within the meaning of the Securities Act), (iii) Merger Sub has such knowledge, skill and experience in business, financial and investment matters that Merger Sub is capable of evaluating the merits and risks of an investment in the Top-Up Shares, (iv) with Section 253 the assistance of Delaware Law as contemplated by Section 9.05 as close in time as possible to (includingMerger Sub’s own professional advisors, to the extent possiblethat Merger Sub has deemed appropriate, on Merger Sub has made its own legal, tax, accounting and financial evaluation of the same day asmerits and risks of an investment in the Top-Up Shares and the consequences of the Top-Up Option, and (v) Merger Sub has considered the issuance suitability of the Top-Up Shares as an investment in light of its own circumstances and financial condition, and Merger Sub is able to bear the risks associated with an investment in the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that Any dilutive impact on the value of the shares of Target Common Stock as a result of the issuance of the Top-Up Shares will not be registered under the 1933 Act and will be issued taken into account in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning determination of the 1933 Act. Any certificates evidencing Top-Up fair value of any Dissenting Shares may include any legends required pursuant to Section 262 of the DGCL as contemplated by applicable securities lawsSection 4.03.
Appears in 2 contracts
Samples: Merger Agreement (Veramark Technologies Inc), Merger Agreement (Clearlake Capital Partners Ii Lp)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 2.5, to purchase from at a price per share equal to the Company, Offer Price paid in the Offer up to the that number of authorized and unissued newly issued shares of Company Common Stock (the “Top-Up Shares, ”) equal to the lowest number of Shares shares of Company Common Stock that, when added to the number of Shares shares of Company Common Stock owned by Merger Subsidiary Parent and its Subsidiaries at the time of exercise of the Top-Up Option, constitutes shall constitute one Share share more than ninety percent (90% %) of the Shares that would be shares of Company Common Stock outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is ; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, (i) the Top-Up Option shall not be exercisable (i) to the extent for a number of shares of Company Common Stock in excess of the number of Shares issuable upon shares of Company Common Stock authorized and unissued (treating shares held in the treasury of the Company as unissued) and not reserved for issuance at the time of exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately the exercise of the Top-Up Option and the issuance and delivery of the Top-Up Shares shall not be prohibited by any Law or Order. The Top-Up Option shall be exercisable at any one time following the Purchase Time and prior to the earlier to occur of (a) the Effective Time and (b) the termination of this Agreement in accordance with its terms. The 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 conditions that (i) 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 in respect of such exercise shall be in effect and (ii) upon exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary Purchaser constitutes at least one share more than ninety percent (90% %) of the shares of Company Common Stock outstanding immediately after the issuance of the Top-Up Shares. The parties hereto acknowledge and agree that, notwithstanding anything to the contrary herein, the failure to obtain approval of the Company’s stockholders of the issuance of Company Common Stock 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 met. Upon Parent’s written request, the Company shall use its reasonable best efforts to cause its transfer agent to certify in writing to Parent the number of shares of Company Common Stock that would be issued and outstanding as of immediately after prior to the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant Option after giving effect to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(db) 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. In the event Purchaser wishes to exercise the Top-Up Option, Purchaser shall give the Company prior written notice, specifying (i) the number of shares of Company Common Stock owned by Parent 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 Purchaser specifying, based on the information provided by Purchaser in its notice, the number of Top-Up Shares. At the closing of the purchase of Top-Up Shares, the purchase price owed by Purchaser to the Company therefor shall be paid to the Company by (i) paying in cash, by wire transfer of immediately available funds to an account designated by the Company, an amount equal to not less than the aggregate par value of the Top-Up Shares and (ii) issuance by Purchaser to the Company of a non-negotiable and non-transferable promissory note (the “Promissory Note”). The Promissory Note shall (i) be secured by the Top-Up Shares, (ii) bear compounding interest at three percent (3%) per annum, with principal and interest due one year after the purchase of the Top-Up Shares, (iii) be prepayable in whole or in part without premium or penalty, (iv) be full recourse to Purchaser, (v) shall provide that the unpaid principal amount and accrued interest under the Promissory Note shall immediately become due and payable if Purchaser 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 Purchaser files or has filed against it any petition under bankruptcy or insolvency law or makes a general assignment of the benefit of creditors and (vi) have no other material terms.
(c) Parent and Merger Subsidiary understand Purchaser acknowledge that the Top-Up Shares that Purchaser may acquire upon exercise of the Top-Up Option will not be registered under the 1933 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 Merger Subsidiary representsPurchaser hereby represents and warrants to the Company that Purchaser is, warrants and will be, upon the purchase of the Top-Up Shares, an “accredited investor,” as defined in Rule 501 of Regulation D under the Securities Act. Purchaser agrees that the Top-Up Option is being, and the Top-Up Shares to be acquired upon exercise of the Top-Up Option are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. ).
(d) Any certificates evidencing dilutive impact on the value of shares of Company Common Stock as a result of the issuance of the Top-Up Shares may include will not be taken into account in any legends required determination of the fair market value of any Dissenting Shares pursuant to Section 262 of the DGCL as contemplated by applicable securities lawsSection 3.7(b)(iv).
Appears in 2 contracts
Samples: Merger Agreement (Ramtron International Corp), Merger Agreement (Cypress Semiconductor Corp /De/)
Top-Up Option. (a) Subject to Sections 1.04(b) the terms and 1.04(c)conditions set forth herein, the Company hereby grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”)) to purchase, to purchase from the Company, up at a price per share equal to the greater of (i) the closing price of a Share on NASDAQ on the last trading day prior to the exercise of the Top-Up Option or (ii) the Offer Price, that number of authorized and unissued newly issued Shares (the “Top-Up Shares, ”) equal to the lowest number of Shares that, when added to the number of Shares owned by Merger Subsidiary Purchaser at the time of exercise of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately Option (after giving effect to the issuance of all Shares to be issued upon exercise of the Top-Up OptionShares but excluding Shares tendered pursuant to guaranteed delivery procedures that have not yet been delivered in settlement or satisfaction of such guarantee), calculated on a fully-diluted basis (shall meet the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) Short Form Threshold. The Top-Up Option may only be exercised one time by Merger Subsidiary in accordance with Section 1.04(c)Purchaser, in whole or but not in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% clauses (i) and (ii) of the outstanding Shares; provided that notwithstanding anything in this Agreement following sentence are satisfied. Parent agrees to the contrarycause Purchaser to, and Purchaser shall, exercise the Top-Up Option shall not be exercisable promptly (ibut in no event later than one (1) to business day) after the extent Acceptance Time or the expiration of a Subsequent Offering Period, as applicable, if the number of Shares issuable upon exercise of owned by Purchaser at such time does not meet the Top-Up Option would exceed the number of authorized but unissued Short Form Threshold, and unreserved Sharesif and only if, (ii) unless immediately following after giving effect to the exercise of the Top-Up Option, (i) Purchaser would own in the aggregate Shares sufficient to meet the Short Form Threshold and (ii) the number of shares Top-Up Shares to be issued does not exceed the number of authorized and unissued Shares available under the Company’s articles of organization (and that are not subscribed for or otherwise reserved for issuance); provided, however, that the obligation of Purchaser to exercise the Top-Up Option, and the obligation of the Company Common Stock owned in to deliver Top-Up Shares upon the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, is subject to the condition that no provision of any Applicable Law or Order shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Shares in respect of such exercise. The parties shall cooperate to ensure that the issuance of the Top-Up Shares is accomplished consistent with all Applicable Law, including compliance with an applicable exemption from registration under the Securities Act. The Top-Up Option shall terminate concurrently with the termination of this Agreement.
(iiib) unless Upon the Minimum Condition exercise of the Top-Up Option in accordance with Section 1.4(a), Parent shall have been satisfiedso notify the Company in writing and shall set forth in such notice (i) the number of Shares that are expected to be owned by Purchaser immediately preceding the purchase of the Top-Up Shares and (ii) a place and time for the closing of the purchase of the Top-Up Shares (which, subject to Applicable Law and any required regulatory approvals, shall be effected as promptly as practicable and not more than two (2) business days after the date such notice is delivered to the Company). At the closing of the purchase of the Top-Up Shares, Purchaser shall pay the Company the aggregate price required to be paid for the Top-Up Shares, and the Company shall cause to be issued to Purchaser the Top-Up Shares.
(c) The aggregate purchase price payable for the Top-Up Shares being purchased shall be paid by Merger Subsidiary pursuant Purchaser as follows: (i) the portion of the aggregate purchase price equal to the par value of the Top-Up Option Shares shall be determined by multiplying paid in cash; and (ii) the number balance of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such remaining aggregate purchase price shall may be payable by Merger Subsidiary paid, at Purchaser’s option, (A) in cash, cash or (B) by executing and delivering to the Company a promissory note having a principal amount equal to the balance of the remaining aggregate purchase price, or (C) any some combination of the foregoingthereof. Any such promissory note shall bear be in the form attached hereto as Annex II, and will include the following terms: (x) the maturity date will be one (1) year after issuance; (y) the unpaid principal amount of the promissory note will accrue simple interest at the a per annum rate of 6% per annum, shall mature on three percent (3%); and (z) the first anniversary of the date of execution and delivery of such promissory note and may be prepaid in whole or in part at any time, without premium penalty or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Sharesprior notice.
(d) Parent and Merger Subsidiary understand Purchaser acknowledge that the Top-Up Shares will not be registered under the 1933 Securities Act and will would be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsPurchaser hereby represents and warrants to the Company that Purchaser will be, warrants and at the time of the purchase of the Top-Up Shares, an “accredited investor,” as defined in Rule 501 of Regulation D under the Securities Act. Purchaser agrees that the Top-Up Option is being, and the Top-Up Shares will would be, acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws).
Appears in 2 contracts
Samples: Merger Agreement (Lojack Corp), Merger Agreement (CalAmp Corp.)
Top-Up Option. (a) Subject The Company hereby grants to Sections 1.04(b) and 1.04(cPurchaser an irrevocable option (the “Top-Up Option”), exercisable only once and only upon the Company grants terms and subject to Merger Subsidiary an optionthe conditions set forth in this Section 1.4, and only for so long as this Agreement has not been terminated pursuant to Section 7.1, to purchase at a price per share equal to the provisions hereof Offer Price an aggregate number of validly issued, fully paid and nonassessable shares of Company Common Stock (the “Top-Up OptionOption Shares”), ) equal to purchase from the Company, up to the number of then-available authorized and unissued Sharesshares of Company Common Stock; provided, however, that the Top-Up Option shall not be deemed to be exercised (i) to purchase an amount of Top-Up Option Shares in excess of the number of Shares that, when added to the number shares of Shares Company Common Stock authorized and unissued (treating shares owned by Merger Subsidiary the Company as treasury stock as unissued) at the time of exercise of the Top-Up OptionOption (treating shares of Company Common Stock issuable pursuant to all then-outstanding stock options, constitutes one Share more than 90% of the Shares that would be outstanding restricted stock units and any other rights to acquire Company Common Stock as if such shares were outstanding), (ii) unless immediately after such exercise and the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed Shares, Purchaser and Parent shall, when added to the 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 authorized shares of Company Common Stock Purchaser and Parent then owns, but unissued and unreserved Sharesnot 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 (the “Short-Form Threshold”), (iiiii) unless the Acceptance Time shall have occurred, (iv) unless Purchaser irrevocably commits upon acquisition of the Top-Up Shares to immediately following effect the Merger pursuant to Section 2.3 and (v) if the exercise of the Top-Up Option, the issuance and delivery of the Top-Up Option Shares and compliance with this Section 1.4 shall be prohibited by any outstanding order or Law (excluding any rules of Nasdaq that require stockholder approval). Purchaser shall pay the Company the aggregate purchase price required to be paid for the Top-Up Option Shares as set forth in Section 1.4(b).
(b) Subject to the limitations set forth in Sections 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 in by Purchaser and Parent prior to giving effect to the aggregate by Parent and Merger Subsidiary constitutes exercise of the Top-Up Option, does not represent at least one share more than 90% the Short-Form Threshold on the Offer Closing Date, Purchaser shall on such date be deemed to have exercised the Top-Up 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) the number of shares of Company Common Stock that would be outstanding immediately after directly or indirectly owned by Purchaser and Parent at the issuance time of all shares of Company Common Stock subject such notice (giving effect to such 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. Such notice will also include an undertaking signed by Purchaser and Parent that, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for immediately following the Top-Up Closing, Purchaser will, and Parent will cause Purchaser to, consummate the Merger in 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 being purchased then outstanding and, based on such number and, based on the information provided by Merger Subsidiary pursuant 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 Purchaser is different 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 Shares (the “Top-Up Closing”), which shall take place simultaneously with the Offer Closing, the purchase price owed by Purchaser to the Company to purchase the Top-Up Option Shares shall be determined paid to the Company, at Purchaser’s option: (i) in cash, by multiplying the number wire transfer of such Shares same-day funds; or (ii) by (A) paying in cash, by wire transfer of same-day funds, an amount equal to not less than the price paid for each Share in aggregate par value of the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, Top-Up Option Shares and (B) by executing and delivering to the Company a promissory note having a principal amount equal to the aggregate purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase price pursuant to the Top-Up Option and less the amount paid in cash pursuant to the preceding clause (iiA) (the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place“Promissory Note”). The Top-Up Notice Promissory Note: (1) shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise be due on the first anniversary of the Top-Up OptionClosing; (2) shall bear simple interest of 5% per annum, Merger Subsidiary intends 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 Merger Subsidiary shall, and Parent (5) shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05have no other material terms. At the closing of the purchase of the Top-Up SharesClosing, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary Purchaser a certificate representing the Top-Up Option Shares.
(c) Each of Purchaser and Parent acknowledges that the Top-Up Option Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase that Purchaser may acquire upon exercise of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 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 Merger Subsidiary warrants to the Company that Purchaser is, and will be upon the exercise of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Each of Purchaser and Parent represents, warrants and 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 Merger Subsidiary 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 1933 Securities Act). Any certificates evidencing Top-Up Option Shares may shall include any legends required by applicable securities lawsLaws.
(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.
Appears in 2 contracts
Samples: Merger Agreement (Wok Acquisition Corp.), Merger Agreement (P F Changs China Bistro Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), to purchase from exercisable only upon the Company, up terms and subject to the conditions set forth herein and only on or after the Appointment Time, to purchase, at a price per share equal to the Offer Price, an aggregate number of authorized and unissued shares of Company Common Stock (the “Top-Up Option Shares, ”) equal to the lowest number of Shares that, when added to the number of Shares directly or indirectly owned by Parent, Merger Subsidiary Sub and their respective subsidiaries at the time of exercise of the Top-Up Option, constitutes shall constitute one Share share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is Short Form Threshold; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable unless, immediately after such exercise and the issuance of shares of Company Common Stock pursuant thereto, the Short Form Threshold would be reached (i) after giving effect to the extent the number of Shares issuable upon exercise issuance of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares); provided, (ii) unless immediately following the exercise of further, that in no event shall the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the Option be exercisable for a number of shares of Company Common Stock that would be outstanding immediately after in excess of the issuance of all Company’s total authorized and unissued shares of Company Common Stock subject to such exercise (treating any Shares held in the treasury of the Top-Up Option, or (iii) unless Company as unissued). Merger Sub may pay the Minimum Condition shall have been satisfied. The Company the aggregate purchase price payable required to be paid for the Top-Up Shares being purchased either (i) entirely in cash or (ii) at Merger Sub’s election, by Merger Subsidiary pursuant (x) paying in cash an amount equal to not less than the aggregate par value of the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary and (Ay) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination balance of the foregoingaggregate purchase price pursuant to the Top-Up Option less the amount paid in cash pursuant to the preceding clause (x) (a “Promissory Note”). Any such promissory note Promissory Note shall be full recourse against Parent and Merger Sub and (i) shall bear interest at the rate of 6% nine percent per annum, (ii) shall mature on the first anniversary of the date of execution and delivery of such promissory note Promissory Note, and (iii) may be prepaid prepaid, in whole or in part, without premium or penalty; provided. In the event that the Top-Up Option is exercised and this Agreement is then terminated in accordance with its terms, however, that upon any Event of Default, all principal and accrued interest thereunder shall the Promissory Note will become immediately become due and payable.
(b) Provided that no applicable Law, order, injunction or other legal impediment shall prohibit the exercise of the Top-Up Option or the issuance of the Top-Up Option Shares pursuant thereto, or otherwise make such exercise or issuance illegal, Merger Sub may exercise (subject to the restrictions contained in Section 1.12(a)) the Top-Up Option on one occasion, in whole and not in part, after the Appointment Time and prior to the earlier to occur of (i) the later of (A) the Expiration Time and (B) the expiration of any “subsequent offering period”; and (ii) the termination of this Agreement in accordance with its terms.
(c) In the event Merger Subsidiary wishes order to exercise the Top-Up Option, Merger Subsidiary Sub 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 NoticeNotice Date”) setting forth (i) specifying the number denominations of the certificate or certificates evidencing the Top-Up Option Shares that which Merger Subsidiary intends Sub wishes to receive, and the place, time and date for the closing of the purchase and sale pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such “Top-Up Shares by Merger Subsidiary is to take placeClosing”). The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary thatCompany shall, as promptly as practicable following such exercise after receipt of the Top-Up OptionExercise Notice, deliver a written notice to Merger Subsidiary intends to Sub confirming the number of Top-Up Option Shares and the aggregate purchase price therefor (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05“Top-Up Notice Receipt”). At the closing of the purchase of the Top-Up SharesClosing, Parent and Merger Subsidiary 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, by delivery of cash and a Promissory Note in an aggregate principal amount equal to that specified in the Top-Up Notice Receipt, and the Company shall cause to be issued and delivered to Merger Subsidiary Sub a certificate or certificates representing the Top-Up Option Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common StockShares, the applicable number of nonBook-certificated shares of Company Common Stock represented Entry Shares. Such certificates or Book-Entry Shares may include any legends that are required by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Sharesfederal or state securities Laws.
(d) Parent and Merger Subsidiary understand Sub acknowledge that the Top-Up Shares will which Merger Sub may acquire upon exercise of the Top-Up Option shall not be registered under the 1933 Securities Act and will shall be issued in reliance upon an exemption thereunder from registration under the Securities Act for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsSub represent and warrant to the Company that Merger Sub is, warrants and or shall be upon any purchase of Top-Up Shares, an “accredited investor”, as defined in Rule 501 of Regulation D under the Securities Act. Merger Sub agrees that the Top-Up Option is beingOption, and the Top-Up Shares will beto be acquired upon exercise of the Top-Up Option, if any, are being and shall be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing ).
(e) Without the prior written consent of the Company, the right to exercise the Top-Up Shares may include Option granted pursuant to this Agreement shall 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 1.12(e) shall be null and void.
Appears in 2 contracts
Samples: Merger Agreement (Arch Coal Inc), Merger Agreement (International Coal Group, Inc.)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Parent and Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof option (the “Top-Up Option”), ) to purchase from the Company, up to Company the number of authorized and unissued shares of Common Stock (such shares, the “Top-Up Option Shares, ”) equal to the lesser of (i) the number of Shares shares of Common Stock that, when added to the number of Shares shares of Common Stock owned by Merger Subsidiary Parent and its Subsidiaries at the time of exercise of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such the Top-Up Option on a fully diluted basis or (ii) the aggregate number of shares of Common Stock that the Company is authorized to issue under its articles of incorporation, but that are not issued and outstanding (and are not subscribed for, reserved for issuance or otherwise committed to be issued) at the time of exercise of the Top-Up Option, at a price per share of Common Stock equal to the Offer Price. The Top-Up Option shall terminate upon the earlier to occur of (A) the Effective Time and (B) the termination of this Agreement in accordance with its terms.
(b) The Top-Up Option shall be exercised by Parent or Merger Sub once in whole and not in part on or prior to the fifth Business Day after the later of the Offer Acceptance Time and the expiration of any subsequent offering period pursuant to Section 1.1(f), if applicable, if at such time, Parent, Merger Sub or any Subsidiary of Parent or Merger Sub do not own in the aggregate at least 90% of the total shares of Common Stock then outstanding; provided, however, that the obligation of the Company to deliver the Top-Up Option Shares is subject to the conditions that (iiii) unless no judgment, injunction, order or decree of any Governmental Authority shall prohibit the Minimum Condition shall have been satisfiedexercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect of such exercise; and (ii) Merger Sub has accepted for payment and paid for all shares of Common Stock validly tendered in the Offer and not withdrawn. Upon exercise of the Top-Up Option, subject to Article VII, Parent covenants to cause the Closing to occur as promptly as reasonably practicable following the issuance of the Top-Up Option Shares.
(c) The aggregate purchase price payable for the Top-Up Option Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by an amount equal to the price paid for each Share in the Offer, without interestOffer Price. Such purchase price shall may be payable paid by Parent or Merger Subsidiary Sub, at its election, either (Ai) entirely in cash, (Bii) by payment in cash of no less than $0.01 per share and payment of the balance by executing and delivering to the Company a promissory note (with full recourse to Parent) having a principal amount equal to the difference between the purchase price, price and the aggregate par value of the Top-Up Option Shares or (Ciii) any combination of the foregoingthereof. Any such promissory note shall bear interest at the applicable federal rate of 6% per annumas determined for U.S. income tax purposes, shall mature on the first anniversary of the date of execution and delivery of such promissory note and may be prepaid at any time without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (LD Commodities Sugar Holdings LLC), Merger Agreement (Imperial Sugar Co /New/)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Parent and/or Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), subject to the terms and conditions hereof, to purchase from that number of shares of Company Common Stock (the Company, up “Top-Up Shares”) equal to the lowest number of authorized and unissued Shares, the number shares of Shares Company Common Stock that, when added to the number of Shares shares of Company Common Stock owned by Merger Subsidiary Sub at the time of such exercise, shall constitute one share of Company Common Stock more than ninety percent (90%) of the number of shares of Company Common Stock entitled to vote on the Merger after the issuance of the Top-Up Shares, calculated on a fully-diluted basis, or, at Parent’s election, on a primary basis, at an exercise price per Top-Up Share equal to the Offer Price; provided, however, that the Top-Up Option may be exercised only if (i) the issuance of the Top-Up Shares shall not require approval of the Company’s stockholders under applicable Law (including the rules of NASDAQ), (ii) the exercise of the Top-Up Option and the issuance and delivery of the Top-Up Shares shall not be prohibited by any Law or Order, and (iii) the Top-Up Option is exercisable for not more than the number of shares of Company Common Stock in excess of the shares of Company Common Stock authorized but unissued (and not reserved for issuance) at the time of exercise of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may shall only be exercised by Merger Subsidiary in accordance with Section 1.04(c), exercisable once in whole or and not in part, only once, part at any time during the 10 within ten (10) Business Day period Days following the Acceptance Datepayment by Merger Sub for shares of Company Common Stock pursuant to the Offer representing at least such number of shares of Company Common Stock as shall satisfy the Minimum Condition, or if any Subsequent Offering Period subsequent offering period is provided, during the 10 ten (10) Business Day period following the expiration date of such Subsequent Offering Periodthe subsequent offering period; provided, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided however, that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable terminate upon the earlier of (i) to the extent termination of this Agreement in accordance with the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued terms hereof, and unreserved Shares, (ii) unless immediately following the Effective Time.
(c) In the event Parent or Merger Sub wishes to exercise of the Top-Up Option, Parent or Merger Sub shall so notify the Company in writing at least three (3) Business Days in advance of such exercise and shall set forth in such notice (i) whether Parent is electing to have the number of Top-Up Shares, determined on a fully-diluted or primary basis, (ii) the number of shares of the Company Common Stock owned in by Merger Sub immediately preceding the aggregate by purchase of the Top-Up Shares, and (iii) the place and time for the closing of the purchase of the Top-Up Shares (the “Top-Up Closing”). The Company shall, as soon as practicable following receipt of such notice, notify Parent and Merger Subsidiary constitutes at least one share more than 90% Sub in writing of the number of shares of Company Common Stock that would be then outstanding immediately after and, based on the issuance information specified in the notice of all shares Parent or Merger Sub, the number of Company Common Stock subject to such exercise of Top-Up Shares. At the Top-Up OptionClosing, (i) Parent or (iii) unless Merger Sub shall pay to the Minimum Condition shall have been satisfied. The Company the aggregate purchase price payable required to be paid for the Top-Up Shares being purchased either entirely in cash or, at Parent’s or Merger Sub’s election, by Merger Subsidiary pursuant (x) paying in cash an amount equal to not less than the aggregate par value of the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary and (Ay) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination balance of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to aggregate purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause price to be delivered to the Company the consideration required to be delivered in exchange paid for the Top-Up SharesShares less the amount paid in cash (the “Promissory Note”), and (ii) the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares orShares. The Promissory Note shall be unsecured, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stockfull recourse, the applicable number of non-certificated shares of Company Common Stock represented by booknegotiable and non-entry. The parties hereto agree to use their reasonable best efforts to cause transferable, be due on the closing of the purchase first anniversary of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01Closing, bear simple interest of three percent (3%) per annum, be prepayable without premium or penalty, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Sharesshall have no other material terms.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Superior Well Services, INC), Merger Agreement (Nabors Industries LTD)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Purchaser an irrevocable option, for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”), ) to purchase from that number of Shares (the Company, up “Top-Up Option Shares”) equal to the number of authorized and unissued Shares, the lowest number of Shares that, when added to the number of Shares owned by Merger Subsidiary Parent and Purchaser at the time of exercise of the Top-Up Optionsuch exercise, constitutes shall constitute one Share more than 90% of the then outstanding Shares that would be outstanding immediately after (determined on a fully diluted basis and assuming the issuance of all Shares to be issued upon exercise of the Top-Up OptionOption Shares), calculated on at a fully-diluted basis (price per share equal to the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”)Per Share Amount.
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during shall become exercisable upon Purchaser’s acceptance for payment and payment for Shares pursuant to the 10 Business Day period following Offer (the Acceptance “Purchase Date, or ”) if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, Parent and only if Merger Subsidiary shall Purchaser do not then own as of such time less than 90% of the then outstanding SharesShares (determined on a fully diluted basis). The Top-Up Option shall be exercisable in whole and not in part and may be exercised only once and only during the ten Business Day period after the Purchase Date; provided provided, however, that notwithstanding anything in this Agreement to the contrary, contrary the Top-Up Option shall not be exercisable and shall terminate on the Purchase Date if (i) to the extent the number of Shares issuable upon exercise issuance of the Top-Up Option Shares would require stockholder approval under the rules of the Nasdaq Stock Market, or (ii) the number of Top-Up Option Shares would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock Stock; and, provided, further, that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying terminate upon the number first to occur of such Shares by an amount equal to (x) the price paid for each Share Effective Time; (y) the termination of this Agreement in the Offeraccordance with its terms, without interest. Such purchase price shall be payable by Merger Subsidiary and (Az) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% per annum, shall mature 5:00 p.m. Central Time on the first anniversary of date that is ten Business Days after the date of execution and delivery of such promissory note and may be prepaid without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payablePurchase Date.
(c) In the event Merger Subsidiary Purchaser wishes to exercise the Top-Up Option, Merger Subsidiary Purchaser shall deliver to so notify the Company a in writing, and shall set forth in such notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares shares of Common Stock that Merger Subsidiary intends to will be owned by Parent and Purchaser immediately preceding the purchase pursuant to of the Top-Up Option Shares and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At for the closing of the purchase of the Top-Up Option Shares, 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 Parent and Merger Subsidiary Purchaser in writing of the number of shares of Common Stock then outstanding and the number of Top-Up Option Shares. At the Top-Up Closing, 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 Shares, Option Shares by wire transfer of same day funds to a bank account designated by the Company and the Company shall cause to be issued to Merger Subsidiary Purchaser a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 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 Merger Subsidiary Purchaser understand that the Company Common Stock which Purchaser may acquire upon exercise of the Top-Up Shares Option will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and Purchaser 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 Merger Subsidiary 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 1933 Securities Act. Any certificates .
(e) Certificates evidencing Top-Up Option Shares delivered 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 include not be sold, pledged or otherwise transferred except in accordance with the registration requirements of the Securities Act of 1933 or any legends required by applicable securities lawsexemption therefrom.”
Appears in 2 contracts
Samples: Merger Agreement (Molex Inc), Merger Agreement (Molex Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company grants to Merger Subsidiary Sub an irrevocable option, for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”), to purchase from the Company, Company up to the number of authorized and unissued Sharesshares of Company Common Stock (including as authorized and unissued shares, for purposes of this Section 1.4, any shares of Company Common Stock held in the treasury of the Company) equal to the number of Shares shares that, when added to the number of Shares shares owned by Merger Subsidiary Sub at the time of exercise of the Top-Up Option, constitutes one Share share more than the number of shares (the “Requisite Short-Form Merger Shares”) entitled to cast 90% of all the Shares that would votes entitled to be outstanding immediately cast by the holders of the Company Common Stock on the Merger after the issuance of all Shares shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis or, as may be elected by Parent, on a primary basis as of immediately prior to the issuance of such shares (the Shares such shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c)Sub, in whole or in part, only once, part at any time during the 10 Business Day period following the Acceptance DateOffer 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, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if provided that Merger Subsidiary Sub shall own as of such time less than 90% of the outstanding Requisite Short-Form Merger Shares; provided that notwithstanding . Notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable to the extent (i) to the extent issuance of the Top-Up Shares would require approval of the Company’s stockholders under Nasdaq Rule 4350, (ii) the number of Shares shares of Company Common Stock issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Sharesshares of Company Common Stock that are not already reserved for issuance or (iii) any other provision of applicable laws or judgment, (ii) unless immediately following injunction, order or decree shall prohibit the exercise of the Top-Up Option, Option or the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise delivery of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfiedShares. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares shares by an amount equal to the price paid for each Share in the OfferOffer Price, without interest. Such aggregate purchase price shall may be payable paid by Merger Subsidiary (A) Sub, at its election, either in cash, (B) the same form of consideration as the Offer Price or by executing and delivering to the Company a promissory note having a principal amount equal to the such purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) 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 (the “Securities Act”). In the event Merger Subsidiary Sub wishes to exercise the Top-Up Option, Merger Subsidiary Sub shall deliver to give the Company a notice (the “Top-Up Notice”) setting forth at least three business days prior written notice, specifying (i) the number of Top-Up Shares that Merger Subsidiary Sub intends to purchase pursuant to the Top-Up Option Option; (ii) the manner in which Merger Sub intends to pay the applicable purchase price; and (iiiii) the place and time at which for the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05purchase. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Indevus Pharmaceuticals Inc), Merger Agreement (Endo Pharmaceuticals Holdings Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “90% Top-Up Option”), exercisable only upon the terms and subject to the conditions set forth herein, to purchase from with a promissory note, bearing simple interest at 6% per annum, and due 30 days after the Companypurchase (a “Promissory Note”), up at a price per share equal to the Offer Price, that number of authorized and unissued shares of Common Stock (the “90% Top-Up Option Shares, ”) equal to the lesser of (x) the lowest number of Shares shares of Common Stock that, when added to the number of Shares shares of Common Stock owned by Merger Subsidiary Parent, Purchaser and their respective subsidiaries and affiliates at the time of exercise of the Top-Up Optionsuch exercise, constitutes one Share shall constitute ten thousand (10,000) shares more than 90% of the Shares that would be shares of Common Stock then outstanding immediately (after giving effect to the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The 90% Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period Shares) and (y) an aggregate number of shares of Common Stock that is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90equal to 19.9% of the shares of Common Stock issued and outstanding Sharesas of the date hereof; provided provided, however, that notwithstanding anything in this Agreement to the contrary, the 90% Top-Up Option shall not be exercisable unless, immediately after such exercise and the issuance of shares of Common Stock pursuant thereto, the Short Form Threshold would be reached (i) to assuming the extent the number of Shares issuable upon exercise issuance of the 90% Top-Up Option would exceed Shares); and provided, further, that in no event shall the 90% Top-Up Option be exercisable for a number of shares of Common stock in excess of the Company’s total authorized but and unissued and unreserved Sharesshares of Common Stock.
(b) Provided that no applicable law, (ii) unless immediately following rule, regulation, order, injunction or other legal impediment shall prohibit the exercise of the 90% Top-Up Option or the issuance of the 90% Top-Up Option Shares pursuant thereto, or otherwise make such exercise or issuance illegal, Purchaser may exercise the 90% Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes whole but not in part, at least any one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately time after the issuance Appointment Time and prior to the earlier to occur of all shares (i) the Effective Time and (ii) the termination of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary this Agreement pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payableSection 8.1.
(c) In the event Merger Subsidiary Purchaser wishes to exercise the 90% Top-Up Option, Merger Subsidiary Purchaser shall deliver send to the Company a written notice (the a “90% Top-Up Exercise Notice”) setting forth (i) ,” the number date of which notice is referred to herein as the “90% Top-Up Shares that Merger Subsidiary intends to purchase pursuant to Notice Date”) specifying the denominations of the certificate or certificates evidencing the 90% Top-Up Option Shares which the Purchaser wishes to receive, and (ii) the place place, time and time at which date for the closing of the purchase of such and sale pursuant to the 90% Top-Up Shares by Merger Subsidiary is to take placeOption (the “90% Top-Up Closing”). The Company shall, promptly after receipt of the 90% Top-Up Exercise Notice, deliver a written notice to the Purchaser confirming the number of 90% Top-Up Option Shares and the aggregate purchase price therefor (the “90% Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of Receipt”). At the 90% Top-Up OptionClosing, Merger Subsidiary intends Purchaser shall pay the Company the aggregate price required to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate be paid for the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the 90% Top-Up Option Shares, Parent and Merger Subsidiary shall cause to be delivered by delivery of a Promissory Note in an aggregate principal amount equal to the Company amount specified in the consideration required to be delivered in exchange for the 90% Top-Up SharesNotice Receipt, and the Company shall cause to be issued to Merger Subsidiary Purchaser a certificate or certificates representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the 90% Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 ActShares. Any Such certificates evidencing Top-Up Shares may include any legends that are required by applicable federal or state securities laws.
Appears in 2 contracts
Samples: Merger Agreement (Cytyc Corp), Merger Agreement (Adeza Biomedical Corp)
Top-Up Option. (a) Subject to Sections 1.04(b2.5(b) and 1.04(c2.5(c), the Company hereby grants to Merger Subsidiary Sub an optionirrevocable option (the “Top-Up Option”), for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”)its terms, to purchase from the Company, Company up to the number (but not less than that number) of authorized and unissued Shares, Company Shares equal to the lowest number of Company Shares that, when added to the number of Company Shares owned by Parent, Merger Sub or any Subsidiary of Parent at the time of the exercise of the Top-Up Option, constitutes at least one Share more than 90% of the Company Shares that would be outstanding immediately (after giving effect to the issuance of all Company Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis Option (the such Company Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”)).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c)Sub only once, in whole or but not in part, only once, at any time during the 10 two-Business Day period following the Acceptance DateTime, or if any Subsequent Offering Period is provided, during the 10 two-Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own Sub owns as of such time more than 50% but less than 90% of the outstanding SharesCompany Shares outstanding; provided that that, notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Company Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Company Shares, (ii) unless immediately following if any Order then in effect would prohibit the exercise of the Top-Up Option, Option or the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise delivery of the Top-Up OptionShares, or (iii) unless Parent or Merger Sub has accepted for payment all Company Shares validly tendered in the Minimum Condition Offer and not withdrawn, and (iv) unless immediately after such exercise and the issuance of Company Shares pursuant thereto, Merger Sub would own at least 90% of the outstanding Company Shares (assuming the issuance of the Top-Up Shares). In any event, the Top-Up Option shall have been satisfiedterminate upon the earlier to occur of (A) the Effective Time and (B) termination of this Agreement in accordance with Article IX. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Shares by an amount equal the greater of (i) the closing price of a Company Share on Nasdaq the last trading day prior to the price paid for each Share in exercise of the OfferTop-Up Option or (ii) the Cash Price Per Share, without interest. Such purchase price shall may be payable paid by Merger Subsidiary Sub, at its election, either (A1) in cash, cash or (B2) by paying in cash an amount equal to not less than the aggregate par value of such Top-Up Shares and by executing and delivering to the Company a promissory note having a principal amount equal to the balance of such purchase price, or price (C) any combination of the foregoing“Promissory Note”). Any such promissory note Promissory Note shall be full recourse against Parent and Merger Sub, shall bear interest at the rate of 65% per annum, shall mature on the first anniversary of the date of execution and delivery of such promissory note Promissory Note and may be prepaid without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable. Without the prior written consent of the Company, the right to exercise the Top-Up Option granted pursuant to this Agreement shall not be assigned by Merger Sub except to any direct or indirect wholly owned Subsidiary of Parent. Any attempted assignment in violation of this Section 2.5(b) shall be null and void.
(c) In the event Merger Subsidiary Sub wishes to exercise the Top-Up Option, Merger Subsidiary Sub shall deliver to the Company a written notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary Sub intends to purchase pursuant to the Top-Up Option and Option, (ii) the place manner in which Merger Sub intends to pay the applicable purchase price, and (iii) the place, date and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary Sub is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary Sub that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary Sub intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law the DGCL as contemplated by Section 9.057.2(c). At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger SubsidiarySub’s request or otherwise if the Company does not then have certificated shares of Company Common StockShares, the applicable number of non-certificated shares of uncertificated Company Common Stock Shares represented by book-entryentry (the “Book-Entry Shares”). The parties hereto agree to shall use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company (provided that such notice is received no later than 10:00 a.m., New York City time on such day), pursuant to Section 12.0110.2, 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 Delaware Law the DGCL as contemplated by Section 9.05 7.2(c) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares. Parent, Merger Sub and the Company shall cooperate to ensure that any issuance of the Top-Up Shares is accomplished in a manner consistent with all applicable Laws.
(d) Parent and Merger Subsidiary Sub understand that the Top-Up Shares will shall not be registered under the 1933 Securities Act and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary Sub represents and warrants to the Company that Merger Sub is, and shall be upon any exercise of the Top-Up Option, an “accredited investor” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Each of Parent and Merger Sub represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will shall be, acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may shall include any legends required by applicable securities lawsLaws.
(e) Any dilutive impact on the value of the Company Shares as a result of the issuance of the Top-Up Shares shall be taken into account in any determination of the fair value of any Dissenting Shares pursuant to Section 262 as contemplated by Section 3.9.
Appears in 1 contract
Samples: Transaction Agreement (S1 Corp /De/)
Top-Up Option. (aA) Subject The Company hereby grants to Sections 1.04(b) and 1.04(cPurchaser an irrevocable option (the "Top- Up Option"), exercisable only upon the Company grants to Merger Subsidiary an option, for so long as this Agreement has not been terminated pursuant terms and subject to the provisions hereof conditions set forth herein, to purchase, at a price per share equal to the Offer Price, that number of Company Shares (the “"Top-Up Option”), to purchase from the Company, up Option Shares") equal to the lesser of (x) the lowest number of authorized and unissued Shares, the number of Company Shares that, when added to the number of Company Shares owned by Merger Subsidiary Parent, Purchaser and their respective Subsidiaries and Affiliates at the time of exercise of the Top-Up Optionsuch exercise, constitutes one Share shall constitute ten thousand (10,000) shares more than 90% of the Company Shares that would be then outstanding immediately (after giving effect to the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis Option Shares) and (the y) an aggregate number of Company Shares that is equal to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 9019.9% of the Company Shares issued and outstanding Sharesas of the date hereof; provided provided, however, that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable unless, (i) immediately prior to such exercise, Parent, Purchaser and their respective Subsidiaries and Affiliates own more than 80% of the extent Company Shares then outstanding and (ii) immediately after such exercise and the issuance of Company Shares pursuant thereto, Parent, Purchaser and their respective Subsidiaries and Affiliates own more than 90% of the Company Shares then outstanding; and provided, further, that in no event shall the Top-Up Option be exercisable for a number of Company Shares issuable upon in excess of the Company's total authorized and unissued Company Shares.
(B) Provided that no applicable Legal Requirement shall prohibit the exercise of the Top-Up Option would exceed or the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise issuance of the Top-Up OptionOption Shares pursuant thereto, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to or otherwise make such exercise of the Topor issuance illegal, Purchaser may exercise and re-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to exercise the Top-Up Option shall be determined by multiplying multiple times, in whole but not in part, at any time or times after the number of such Shares by an amount equal Acceptance Time and prior to the price paid for each Share in earlier to occur of (i) the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary Effective Time and (Aii) in cash, (B) by executing and delivering the termination of this Agreement pursuant to the Company a promissory note having a principal amount equal to the purchase price, or Section 7.
(C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, Each time that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary Purchaser wishes to exercise the Top-Up Option, Merger Subsidiary Purchaser shall deliver send to the Company a written notice (the “a "Top-Up Exercise Notice”") setting forth (i) specifying the number denominations of the certificate or certificates evidencing the Top-Up Option Shares that Merger Subsidiary intends 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 and (ii) the place and time at which the closing of the purchase of such a "Top-Up Shares by Merger Subsidiary is to take placeClosing"). The Company shall, promptly after receipt of a Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary thatExercise Notice, as promptly as practicable following such exercise deliver a written notice to the Purchaser confirming the number of the Top-Up Option, Merger Subsidiary intends to (Option Shares and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05aggregate purchase price therefore. At the closing of the purchase of the each Top-Up SharesClosing, Parent and Merger Subsidiary 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 SharesOption Shares 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 Closing, or (C) any combination thereof. At each Top-Up Closing, the Company shall cause to be issued to Merger Subsidiary Purchaser a certificate or certificates representing the Top-Up Option Shares or, issuable at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the such Top-Up Closing. Certificates representing Company Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 connection with Section 253 of Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends that are required by applicable federal or state securities laws.
Appears in 1 contract
Samples: Merger Agreement (Inverness Medical Innovations Inc)
Top-Up Option. (a) Subject to Sections 1.04(bSection 2.3(b) and 1.04(cSection 2.3(c), the Company grants to Merger Subsidiary Sub an optionirrevocable option (the “Top-Up Option”), for so long as this Agreement has not been terminated pursuant to the provisions hereof (and the “Top-Up Option”)Offer Termination shall not have occurred, to purchase from the Company, up to the Company a number of authorized authorized, validly issued, fully paid and unissued Shares, nonassessable Shares equal to at least the lowest number of Shares that, when added to the number of Shares that would be owned by Parent and Merger Subsidiary at Sub after giving effect to the time of exercise of the Top-Up Option, constitutes would constitute one Share more than 90% of the aggregate number of Shares that would be outstanding on a Fully-Diluted Basis immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis Option (the such Company Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c)Sub, in whole or but not in part, only once, at any time during on the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, Offer Closing Date and only if Parent and Merger Subsidiary Sub shall own as of such time less than 90% of the aggregate number of Shares outstanding Shareson a Fully-Diluted Basis; provided that that, notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable to the extent (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, Shares (treating Shares owned by the Company as treasury stock as unissued) or (ii) unless immediately following any provision of applicable Law or any Order would prohibit, or require any Consent by any Governmental Entity in connection with, the exercise of the Top-Up Option or the delivery of the Top-Up Shares with respect to such exercise (and, with respect to any such Consent, such Consent has not theretofore been obtained).
(c) If the Offer Conditions have been satisfied or waived by Merger Sub and the number of Shares that have been validly tendered and not validly withdrawn, when added to the Shares owned by Parent and Merger Sub, prior to giving effect to the exercise of the Top-Up Option, the number of shares does not represent at least 90% of the Shares outstanding on the Offer Closing Date on a Fully-Diluted Basis, Merger Sub shall be deemed to have exercised the Top-Up Option as of the Offer Closing and, on the Offer Closing Date, shall give the Company Common Stock written notice specifying the amount of Shares owned in the aggregate by Parent and Merger Subsidiary constitutes Sub at least one share more than 90% the time of such notice (after giving effect to the Shares acquired pursuant to the Offer). For the avoidance of doubt, for purposes of this Section 2.3(c), the number of Shares owned by Parent and Merger Sub immediately before, at or immediately after the exercise of the Top-Up Option shall exclude (unless otherwise directed by Parent or Merger Sub in writing) shares of Company Common Stock tendered into the Offer pursuant to guaranteed delivery procedures if such shares have not been delivered pursuant to such guarantees as of such time. 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 shares of Company Common Stock that would be outstanding immediately after issued and outstanding, together with the issuance number of all shares of Company Common Stock subject issuable upon exercise, conversion, or vesting of all outstanding Company Options, Company PSAs, Company RSUs, Company Warrants, and all other outstanding options, warrants, and rights to acquire shares of Company Common Stock, and all outstanding convertible debt, and, based on such exercise number and based on the information provided by Merger Sub, the number of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfiedShares to be purchased by Merger Sub. The aggregate purchase price payable for the all Top-Up Shares being purchased by Merger Subsidiary pursuant to Sub (the “Top-Up Option Consideration”) shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary thatthe Offer Price, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05without interest. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary Sub shall cause the Top-Up Consideration to be delivered to the Company the consideration required to be delivered in exchange for Company; provided that Merger Sub may pay the Top-Up SharesConsideration by (x) paying in cash, and by wire transfer of immediately available funds to an account designated by the Company shall cause in writing, an amount equal to be issued to Merger Subsidiary a certificate representing the aggregate par value of the Top-Up Shares orand (y) executing and delivering to the Company an unsecured, non-negotiable, non-transferable promissory note having a principal amount equal to the Top-Up Consideration less the amount paid in cash pursuant to the preceding clause (x) (the “Promissory Note”). The Promissory Note (1) shall be full recourse against Merger Sub, (2) shall bear interest at the rate of 5% per annum, payable in arrears at maturity, (3) shall mature on the first anniversary of the date of issuance, (4) may be prepaid, in whole or in part, at Parent’s any time without premium or Merger Subsidiary’s request or otherwise if the Company does not then penalty and (5) shall have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entryno other material terms. The parties hereto Parties agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01Offer Closing Date, 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 At the Merger to be consummated in accordance with Section 253 closing of Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance sale and purchase of the Top-Up SharesShares as provided herein, the Company shall cause the Top-Up Shares to be issued to Merger Sub in a manner that makes Merger Sub a holder of record in respect to such Shares for purposes of Section 267 of the DGCL and 18-209 of the DLLCA.
(d) Parent Subject to the terms and conditions of this Agreement, and for so long as the Offer Termination has not occurred, the Company agrees that it shall maintain out of its existing authorized capital stock, free from preemptive rights or reservation, at least 49,125,000 authorized but unissued shares of Company Common Stock for the purpose of issuance pursuant to this Section 2.3 and, for purposes of this Section 2.3, the Company shall take all action necessary to ensure that no prior reservation of any shares of Company Common Stock (including, but not limited to, any reservations made pursuant to any Company Options, Company PSAs, Company RSUs, Company Warrants and any other rights to acquire shares of Company Common Stock) will impair the Company’s ability to have 49,125,000 authorized but unissued shares of Company Common Stock available for the purpose of issuance pursuant to this Section 2.3.
(e) Concurrently with the issuance to Merger Subsidiary understand that Sub of the Top-Up Shares will (or, if not be registered under concurrently, as promptly as practicable thereafter), Merger Sub shall consummate the 1933 Act and will be issued Merger in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary for the purpose of investment and not accordance with a view to or for resale in connection with any distribution thereof within the meaning Sections 267 of the 1933 Act. Any certificates evidencing TopDGCL and 18-Up Shares may include any legends required 209 of the DLLCA and as contemplated by applicable securities lawsSection 8.1(d).
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(bSection 1.8(b) and 1.04(cSection 1.8(c) and the conditions set forth in this Section 1.8(a), the Company grants to Merger Subsidiary Sub an optionirrevocable option (the “Top-Up Option”), for so long as this Agreement has not been terminated pursuant to the provisions hereof terms hereof, to purchase from the Company the number of authorized and unissued shares of Company Common Stock (the “Top-Up OptionOption Shares”), to purchase from the Company, up ) equal to the number of authorized and unissued Shares, the number shares of Shares Company Common Stock that, when added to the number of Shares shares of Company Common Stock owned by Parent and Merger Subsidiary at Sub as of immediately prior to the time of exercise of the Top-Up Option, constitutes one Share share more than 90% of the Shares that would be number of shares of Company Common Stock then outstanding immediately after (the “Number of Top-Up Option Shares”), assuming the issuance of all the Top-Up Option Shares. The obligation of the Company to issue and deliver the Top-Up Option Shares to be issued upon the exercise of the Top-Up OptionOption is subject only to the conditions that (i) no Law, calculated on a fully-diluted basis Judgment or other legal restraint (excluding any listing requirement of any securities exchange) that has the Shares to be issued upon effect of preventing the exercise of the Top-Up Option, Option or the “issuance and delivery of the Top-Up Option Shares in respect of such exercise shall be in effect and (ii) the Number of Top-Up Option Shares shall not exceed the aggregate of (x) the number of shares of Company Common Stock held as treasury shares by the Company and any Company Subsidiary plus (y) 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 Options), in each case, as of immediately prior to the exercise of the Top-Up Option (and if such aggregate of (x) and (y) shall be less than the Number of Top-Up Option Shares”, then the Top-Up Option shall not be exercisable).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c)Sub, in whole or but not in part, only once, at any time during at or within three Business Days after the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date later of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued acceptance for payment of, and unreserved Sharespayment by Merger Sub for, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of any shares of Company Common Stock that would pursuant to the Offer (the “Acceptance Time”) and (ii) if applicable, the completion of any subsequent offering period for the Offer pursuant to Section 1.1(a)(iii). Any such exercise shall be outstanding immediately after the issuance of all shares of Company Common Stock irrevocable, subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfiedconditions set forth in Section 1.8(a). The aggregate purchase price payable for the Top-Up Option Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by an amount equal to the price paid for each Share in the OfferOffer Price, without interest. Such purchase price shall may be payable paid by Merger Subsidiary Sub, at its election, either (Ai) entirely in cash, cash or (Bii) by paying in cash an amount equal to not less than the aggregate par value of such Top-Up Option Shares and by executing and delivering to the Company a promissory note having a principal amount equal to the balance of such purchase price, or (C) by any combination of the foregoingcash and such promissory note. Any such promissory note shall be full recourse against Parent and Merger Sub, be due one year from the date the Top-Up Option Shares are issued and bear interest at the rate of 65% per annum, shall mature on the first anniversary of the date of execution and delivery of such promissory note annum and may be prepaid without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event that Merger Subsidiary Sub wishes to exercise the Top-Up Option, Merger Subsidiary it shall deliver to the Company a notice (the “Top-Up Notice”) setting forth forth
(i) the number Number of Top-Up Option Shares that Merger Subsidiary intends to it shall purchase pursuant to the Top-Up Option Option, (ii) the manner in which it shall pay the applicable purchase price and (iiiii) the place and time at which the closing of the purchase of such the Top-Up Option Shares by Merger Subsidiary Sub is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, Sub that as promptly as practicable following such exercise of the Top-Up OptionOption as possible, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) Sub will consummate the Merger in accordance with Section 253 of Delaware Law the DGCL as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.6.1
Appears in 1 contract
Samples: Merger Agreement (Kensey Nash Corp)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only upon the terms and subject to the conditions set forth herein, to purchase from at the Company, up Offer Price an aggregate number of Shares (the “Top-Up Shares”) equal to the number of authorized and unissued Shares, the lowest number of Shares that, when added to the number of Shares owned by Parent, Merger Subsidiary Sub and their Subsidiaries at the time of exercise such exercise, shall constitute one (1) Share more than 90.00% of the outstanding Shares on a fully diluted basis (after taking into account the issuance of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is ; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable to the extent (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued Shares as of immediately prior to the issuance of the Top-Up Shares (treating the Shares held in the treasury of the Company as unissued and unreserved Sharesgiving effect to Shares reserved for issuance under all outstanding stock options, restricted stock and any other rights to acquire the Shares as if such Shares were outstanding) or (ii) unless any other provision of applicable Law or judgment, injunction order or decree shall prohibit the exercise of the Top-Up Option or delivery of the Top-Up Shares (excluding any listing requirement of the Nasdaq); provided, further, that the Top-Up Option shall terminate upon the termination of this Agreement in accordance with its terms. The Top-Up Option shall not be exercisable until such time as Merger Sub shall have deposited the payment for all accepted Shares with the depositary agent for the Offer and, if a “subsequent offering period” is provided, for all Shares tendered in the “subsequent offering period, and in no event shall the Top-Up Option be exercisable (x) if the Minimum Tender Condition shall have been waived, (y) more than once or (z) unless, immediately following after such exercise and the issuance of Shares pursuant thereto, and accounting for the limitations set forth herein, Parent and Merger Sub would hold one (1) Share more than 90.00% of the outstanding Shares. Upon Parent’s request, the Company shall use its commercially reasonable efforts to cause its transfer agent to notify Parent in writing of the number of Shares issued and outstanding as of immediately prior to the exercise of the Top-Up Option. The Company has reserved, and shall continue to reserve and maintain free from preemptive rights, out of its authorized but unissued shares of common stock of the Company, par value $0.10 per share, the (“Common Stock”) all authorized and unissued shares of Common Stock as of the date hereof for the exercise of the Top-Up Option, except for Shares issuable upon the number exercise of shares Company Options outstanding under the Stock Plans as of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock date hereof.
(b) The parties shall cooperate to ensure that would be outstanding immediately after the issuance of the Top-Up Shares is accomplished consistent with all shares applicable legal requirements of Company Common Stock subject all Governmental Entities, including compliance with an applicable exemption from registration of the Top-Up Shares under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”).
(c) Subject to such the limitations on exercise of the Top-Up OptionOption set forth in Section 1.4(a), or (iii) unless the Minimum Condition Merger Sub shall, and Parent shall have been satisfied. The aggregate purchase price payable for cause Merger Sub to, exercise, and take all action necessary action to exercise, the Top-Up Shares being purchased by Merger Subsidiary pursuant to Option, upon the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination written request of the foregoingCompany. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to To exercise the Top-Up Option, Merger Subsidiary Sub shall deliver send to the Company a written notice (a “Top-Up Exercise Notice”) specifying (i) the number of Shares that are owned by Parent, Merger Sub and their Subsidiaries immediately preceding the purchase of the Top-Up Shares and (ii) the place, time and date (which date shall be no later than the third (3rd) 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 NoticeClosing”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place). The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary Sub that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary Sub intends to (and Merger Subsidiary Sub shall, and Parent shall cause Merger Subsidiary Sub to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law the GBCC as contemplated by Section 9.057.3(e). At the closing of the purchase The Company shall, promptly after receipt of the Top-Up SharesExercise Notice (and in any event within 24 hours), Parent and deliver a written notice to Merger Subsidiary shall cause to be delivered to Sub confirming the Company the consideration required to be delivered in exchange for the number of Top-Up Shares, Shares and the aggregate purchase price therefor (the “Top-Up Notice Receipt”). Merger Sub and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares Closing to occur on the same day that the Top-Up Exercise Notice is deemed received by the Company pursuant to Section 12.01Company, 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 At the Top-Up Closing, Merger Sub shall pay the Company, in the manner set forth in Section 1.4(d) hereof, the aggregate price required to be consummated paid for the Top-Up Shares, in accordance with Section 253 cash and/or aggregate principal amount equal to that specified in the Top-Up Notice Receipt, and the Company shall cause to be issued and delivered to Merger Sub a certificate or certificates representing the Top-Up Shares or, at Merger Sub’s request or otherwise if the Company does not then have certificated Shares, the applicable number of Delaware Law as contemplated uncertificated Shares represented by Section 9.05 as close book entry (“Book-Entry Shares”). Such certificates or Book-Entry Shares may include any legends that are required by applicable Law.
(d) Merger Sub may pay the Company the aggregate price required to be paid for the Top-Up Shares either (i) entirely in time as possible cash or (ii) at Merger Sub’s election, by (x) paying in cash an amount equal to (including, to not less than the extent possible, on the same day as) the issuance aggregate par value of the Top-Up Shares.
Shares and (dy) Parent executing and Merger Subsidiary understand that delivering to the Top-Up Shares will not be registered under Company a promissory note having a principal amount equal to the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each balance of Parent and Merger Subsidiary represents, warrants and agrees that the aggregate purchase price pursuant to the Top-Up Option is beingless 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 interest at the rate of two percent (2%) per annum, and (ii) shall mature on the Top-Up Shares will be, acquired by Merger Subsidiary for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning first (1st) anniversary of the 1933 Act. Any certificates evidencing Top-Up Shares date of execution and delivery of such Promissory Note and (iii) may include any legends required by applicable securities lawsbe prepaid, in whole or in part, without premium or penalty.
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof option (the “"Top-Up Option”"), exercisable in accordance with this Section 1.4, to purchase from the Company, up number of shares of Company Common Stock (the "Top-Up Option Shares") equal to the number of authorized and unissued Shares, the number shares of Shares Company Common Stock that, when added to the number of shares of Company Common Stock owned in the aggregate by Parent, Merger Sub and any Subsidiary of Parent or Merger Sub immediately prior to the exercise of the Top-Up Option (including all Shares owned validly tendered and not properly withdrawn in the Offer at the Acceptance Time), shall constitute one share more than 90% of the number of shares of Company Common Stock then outstanding (after giving effect to the issuance of the Top-Up Option Shares) for a purchase price per Top-Up Option Share equal to the Offer Price. The Top-Up Option shall only be exercised one time by Merger Subsidiary Sub in whole but not in part.
(b) In no event shall the Top-Up Option be exercisable for a number of shares of Company Common Stock in excess of the Company's then authorized and unissued shares of Company Common Stock (including as authorized and unissued shares of Company Common Stock, for purposes of this Section 1.4, any shares of Company Common Stock held in the treasury of the Company and any shares of Company Common Stock reserved for issuance, upon the exercise of any outstanding Option or with respect to any other outstanding security convertible into or exercisable or exchangeable for shares of Company Common Stock other than any shares of Company Common Stock reserved for issuance upon conversion of the Convertible Notes).
(c) The Top-Up Option shall be exercised by Merger Sub (and Parent shall cause Merger Sub to exercise the Top-Up Option) immediately after the Acceptance Time or the expiration of any Subsequent Offering Period, as applicable, if (i) at the time Acceptance Time or expiration of a Subsequent Offering Period, as applicable, Parent, Merger Sub and any Subsidiary of Parent or Merger Sub do not own in the aggregate at least 90% of the number of shares of Company Common Stock then outstanding and (ii) after giving effect to the exercise of the Top-Up Option, constitutes and taking into account the limitations set forth in Section 1.4(b), Parent, Merger Sub and any Subsidiary of Parent or Merger Sub would own in the aggregate one Share share more than 90% of the Shares that would be number of shares of Company Common Stock then outstanding immediately (after giving effect to the issuance of all Shares to be issued upon exercise of the Top-Up OptionOption Shares); provided, calculated on a fully-diluted basis (however, that the Shares to be issued upon exercise obligation of the Top-Up Option, the “Top-Up Shares”).
(b) The Company to deliver Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during Shares upon the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed is subject to the number conditions, unless waived by the Company, that (A) no provision of authorized but unissued any applicable Law, and unreserved Sharesno temporary restraining order, preliminary or permanent injunction or other judgment or order issued by a court of competent jurisdiction or other Governmental Authority of competent jurisdiction, shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Shares in respect of such exercise, (iiB) unless immediately following the upon exercise of the Top-Up Option, the number of shares of the Company Common Stock Shares owned in the aggregate by Parent, Merger Sub and any Subsidiary of Parent and or Merger Subsidiary Sub constitutes at least one share more than 90% of the number of shares of Company Common Stock that would will be outstanding immediately after the issuance of the Top-Up Option Shares, (C) Merger Sub has accepted for payment and paid for all shares of Company Common Stock subject to such Shares validly tendered in the Offer (including, if applicable, during a Subsequent Offering Period) and not properly withdrawn, and (D) upon exercise of the Top-Up Option, or (iii) unless Parent covenants to cause the Minimum Condition shall have been satisfied. The aggregate purchase price payable for Closing to occur as promptly as practicable following the issuance of the Top-Up Shares being purchased by Merger Subsidiary pursuant to Option Shares; and, provided, further, that the Top-Up Option shall be determined by multiplying the number terminate concurrently with any termination of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payablethis Agreement.
(cd) In The parties shall cooperate to ensure that the event issuance of the Top-Up Option Shares is accomplished in a manner consistent with all applicable Law, including compliance with an applicable exemption from registration of the Top-Up Option Shares under the Securities Act. If Merger Subsidiary wishes Sub is required to exercise the Top-Up Option, Merger Subsidiary Sub shall deliver to give the Company a written notice thereof (the “"Top-Up Notice”") setting forth specifying (i) a place and time for the closing of such purchase (which, subject to applicable Law and any required regulatory approvals, shall be effected as promptly as practicable and not more than five (5) Business Days after the date of delivery of such Top-Up Notice), (ii) the number of Top-Up Shares shares of Company Common Stock that Merger Subsidiary intends to purchase pursuant to will constitute the Top-Up Option Shares and (iiiii) the place and time at manner in which Parent or Merger Sub shall pay the closing of the applicable purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise price in respect of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05Option Shares. At the closing of the purchase of the Top-Up Option Shares, Parent and Merger Subsidiary shall cause to be delivered to (A) the Company the consideration required to be delivered purchase price in exchange for respect of the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing Option Shares purchased upon such exercise of the Top-Up Option (which shall equal the product of (x) the number of Top-Up Option Shares orbeing purchased pursuant to the Top-Up Option and (y) the Offer Price) shall be paid to the Company, at Parent’s or Merger Subsidiary’s request or otherwise if Sub's election, either (I) in immediately available funds by wire transfer to an account designated by the Company does or (II) by paying in cash an amount equal to not then have certificated less than the aggregate par value of such Top-Up Option Shares and by delivering Parent's unsecured, non-negotiable, non-transferable promissory note in the principal amount of the balance of such purchase price, which promissory note shall bear interest at the greater of: (x) the applicable short term federal rate per annum (as periodically set by the IRS), and (y) 3%, shall mature on the first anniversary of the date thereof, and may be prepaid in whole or in part without premium or penalty, and (B) the Company shall deliver to Merger Sub a certificate or certificates representing the number of Top-Up Option Shares so purchased. The Company represents and warrants to Parent and Merger Sub that upon delivery to Merger Sub of the Top-Up Option Shares against payment therefore in accordance herewith, such Top-Up Option Shares shall be duly authorized, validly issued, fully paid and non-assessable shares of Company Common Stock, .
(e) Parent and Merger Sub acknowledge that the applicable number of nonTop-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase Up Option Shares that Merger Sub may acquire upon exercise of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 Act Securities Act, and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and 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 Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing the Top-Up Option Shares may shall include any legends required by applicable securities lawsLaws.
Appears in 1 contract
Samples: Merger Agreement (Sepracor Inc /De/)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Parent and Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof option (the “Top-Up Option”), ) to purchase from the Company, up to Company the number of authorized and unissued Shares (such shares, the “Top-Up Option Shares, ”) equal to the lesser of (i) the number of Shares that, when added to the number of Shares owned by Merger Subsidiary Parent and its Subsidiaries at the time of exercise of the Top-Up Option, constitutes one Share share more than 90% of the number of Shares that would be outstanding in each class of Company Common Stock immediately after the issuance of all Shares subject to the Top-Up Option on a fully diluted basis or (ii) the aggregate number of Shares that the Company is authorized to issue under its articles of incorporation, but that are not issued and outstanding (and are not subscribed for or otherwise committed to be issued upon issued) at the time of exercise of the Top-Up Option, calculated on at a fully-diluted basis (price per share of Company Common Stock equal to the Shares to be issued upon exercise of the Offer Price. The Top-Up Option, Option shall terminate upon the “Top-Up Shares”)earlier to occur of
(A) the Effective Time and (B) the termination of this Agreement in accordance with its terms.
(b) The Top-Up Option may be exercised by Parent or Merger Subsidiary in accordance with Section 1.04(c), Sub once in whole and not in part on or in part, only once, at any time during prior to the 10 fifth Business Day period following after the later of the Offer Acceptance Date, or if Time and the expiration of any Subsequent Offering Period is providedpursuant to Section 1.1(f), during if applicable, if at such time, Parent, Merger Sub or any Subsidiary of Parent or Merger Sub do not own in the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than aggregate at least 90% of the total then-outstanding Sharesshares of each class of Company Common Stock (determined on a fully diluted basis); provided provided, however, that notwithstanding anything in this Agreement the obligation of the Company to the contrary, deliver the Top-Up Option shall not be exercisable Shares is subject to the conditions that (i) to no Order of any Governmental Entity shall restrain, enjoin or otherwise prohibit the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed or the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise delivery of the Top-Up Option, the number Option Shares in respect of shares of the Company Common Stock owned such exercise; and (ii) Merger Sub has accepted for payment and paid for all Shares validly tendered in the aggregate by Parent Offer and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or not withdrawn.
(iiic) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Option Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Option Shares by an amount equal to the price paid for each Share in the Offer, without interestOffer Price. Such purchase price shall may be payable paid by Parent or Merger Subsidiary Sub, at its election, either (Ai) entirely in cash, (Bii) by payment in cash of no less than $0.01 per share and payment of the balance by executing and delivering to the Company a promissory note (with full recourse to Parent) having a principal amount equal to the difference between the purchase price, price and the aggregate par value of the Top-Up Option Shares or (Ciii) any combination of the foregoingthereof. Any such promissory note shall bear interest at the applicable federal rate of 6% per annumas determined for U.S. income tax purposes, shall mature on the first anniversary of the date of execution and delivery of such promissory note and may be prepaid at any time without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(cd) In the event Merger Subsidiary wishes If they elect to exercise the Top-Up Option, Parent or Merger Subsidiary Sub shall deliver to the Company a written notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that will be owned by Parent and Merger Subsidiary intends to Sub immediately preceding the purchase pursuant to of the Top-Up Option Shares together with the number of Top-Up Option Shares, (ii) the manner in which Parent or Merger Sub intends to pay the applicable exercise price and (iiiii) the place and time at which the closing of the purchase of such the Top-Up Option Shares by Merger Subsidiary is to take place, which shall take place not later than five (5) Business Days following the Offer Acceptance Time or the expiration of any Subsequent Offering Period pursuant to Section 1.1(f). The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary thatCompany shall, as promptly soon as practicable following receipt of such exercise of notice (and in no event later than the Top-Up OptionOption closing date), Merger Subsidiary intends to (notify Parent and Merger Subsidiary shall, Sub in writing of the number of Shares then outstanding and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 number of Delaware Law as contemplated by Section 9.05Top-Up Option Shares. At the closing of the purchase of the Top-Up Option Shares, Parent and or Merger Subsidiary Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the issuance of the Top-Up Option Shares, and the Company shall cause to be issued and delivered to Parent or Merger Subsidiary Sub (as the case may be) a certificate or certificates representing the Top-Up Option Shares or, at Parent’s or Merger SubsidiarySub’s request or otherwise if the Company does not then have certificated shares of Company Common StockShares, the applicable number of non-certificated shares of Company Common Stock Shares represented by book-entryentry (“Book-Entry Shares”). The parties hereto agree to use their reasonable best efforts to cause Such certificates or Book-Entry Shares may include any legends required by applicable Laws. Without the closing prior written consent of the purchase Company, the right to exercise the Top-Up Option granted pursuant to this Agreement shall not be assigned by Parent or Merger Sub except in connection with an assignment in compliance with Section 9.10. Any attempted assignment in violation of this Section 1.4(d) shall be null and void.
(e) Parent and Merger Sub acknowledge that the Top-Up Option Shares that Merger Sub may acquire upon exercise of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares Option will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsSub represent and warrant to the Company that Merger Sub is, warrants and will be upon the purchase of the Top-Up Option Shares, an “Accredited Investor,” as defined in Rule 501 of Regulation D under the Securities Act. Xxxxxx 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, if any, are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 1 contract
Samples: Merger Agreement
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 1.04, to purchase from at a price per share equal to (i) the CompanyOffer Price paid in the Offer plus (ii) a CPR, up that number of shares of Company Common Stock (the “Top-Up Shares”) equal to the lowest number of authorized and unissued Shares, the number shares of Shares Company Common Stock that, when added to the number of Shares shares of Company Common Stock owned by Parent and Merger Subsidiary Sub at the time of exercise of the Top-Up Option, constitutes shall constitute one Share share more than 90% of the Fully Diluted Shares that would be outstanding immediately after the issuance of all the Top-Up Shares (the “Short Form Threshold”); provided, that the Top-Up Option will not be exercisable unless, immediately after such exercise and the issuance of Top-Up Shares pursuant thereto, the Short Form Threshold would be reached (after giving effect to the issuance of the Top-Up Shares); provided, further, that (i) the Top-Up Option shall not be issued upon exercisable for a number of shares of Company Common Stock in excess of the shares of Company Common Stock authorized and unissued at the time of exercise of the Top-Up OptionOption (giving effect to the shares of Company Common Stock issuable pursuant to all then-outstanding stock options, calculated on a fully-diluted basis restricted stock units and any other rights to acquire Company Common Stock as if such shares were outstanding) and (ii) the Shares to be issued upon exercise of the Top-Up Option, Option and the “issuance and delivery of the Top-Up Shares”)Shares shall not be prohibited by any Law or Order.
(b) The Top-Up Option may shall be exercised by Merger Subsidiary in accordance with Section 1.04(c)exercisable only once, in whole or but not in part, only once, at any time during prior to the 10 third (3rd) Business Day period following the Acceptance Datepurchase of and payment for shares of Company Common Stock pursuant to the Offer by Merger Sub, or if any Subsequent Offering Period subsequent offering period is provided, during the 10 Business three (3)-Business Day period following the expiration date of such Subsequent Offering Periodsubsequent offering period, and only if Merger Subsidiary Sub shall beneficially own as of such time less than 90% at least a majority of the outstanding Shares; provided that notwithstanding anything in this Agreement shares of Company Common Stock.
(c) In the event Merger Sub wishes to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, Merger Sub shall notify the Company in writing, and shall set forth in such notice (i) the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes Sub at least the time of such notice (giving effect to the Offer Closing) and (ii) a place and a time for the closing of such purchase which shall, unless the Independent Directors otherwise agree, be at the Company’s principal offices not less than one share more than 90% (1) Business Day after receipt of such notice. 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 shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up OptionShares to be purchased by Merger Sub. At the closing of the purchase of Top-Up Shares, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the each Top-Up Shares being purchased by Merger Subsidiary pursuant Share shall consist of (i) an amount equal to the Offer Price (the “Initial Top-Up Option shall be determined Payment”) plus (ii) a CPR. The aggregate Initial Top-Up Payment (calculated by multiplying the number of such Top-Up Shares by an amount equal the Offer Price) shall be paid to the price paid for each Share in the OfferCompany at Parent’s election, without interest. Such purchase price shall be payable by Merger Subsidiary either (Ai) entirely in cash, by wire transfer of same-day funds or (Bii) by executing and delivering issuing to the Company a promissory note having a principal amount equal to the aggregate purchase price, or price pursuant to the Top-Up Option (Cthe “Promissory Note”). The Promissory Note (i) any combination of the foregoing. Any such promissory note shall bear simple interest at the a rate of 6% four percent (4.0%) per annum, (ii) shall mature on the first anniversary of the date of execution of the Promissory Note, (iii) shall be full recourse to Parent and delivery of such promissory note and Merger Sub, (iv) may be prepaid prepaid, at any time, in whole or in part, without premium or penalty; , and (v) shall have no other material terms, provided, however, that upon any Event of Default, all principal the Promissory Note and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise issuance of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent Shares shall cause Merger Subsidiary toin any case be in compliance with all of the requirements of Section 0-000-000 of the CBCA. The CPR shall be payable in cash, as promptly as practicable after such exercise) consummate provided in the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05CPR Agreement. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the The Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of nonBook-certificated Entry Shares. Such certificates or Book-Entry Shares may include any legends that are required by federal or state securities Laws.
(d) In the event Merger Sub wishes to exercise the Top-Up Option, Merger Sub shall notify the Company in writing, and shall set forth in such notice (i) the number of shares of the Company Common Stock represented owned by bookParent and Merger Sub at the time of such notice (giving effect to the Offer Closing), (ii) the manner in which it intends to pay the Initial Top-entry. The parties hereto agree to use their reasonable best efforts to cause Up Payment, and (iii) a place and a time for the closing of such purchase which shall, unless the Independent Directors otherwise agree, be at the Company’s principal offices not less than one (1) Business Day after receipt of such notice. 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 Shares to be purchased by Merger Sub.
(e) Parent and Merger Sub acknowledge that any Top-Up Shares issued 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 that all such shares will be issued in reliance upon an applicable exemption from registration under the Securities Act. Each of Parent and Merger Sub hereby represents and warrants to the Company that Merger Sub is, and will be, upon the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01Shares, and if not so consummated on such day, an “accredited investor,” as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated defined in accordance with Section 253 Rule 501 of Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered Regulation D under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offeringSecurities Act. Each of Parent and Merger Subsidiary represents, warrants and Sub agrees that the Top-Up Option is being, and the Top-Up Shares to be acquired upon exercise of the Top-Up Option are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. ).
(f) 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 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 Article 113 of the CBCA as contemplated by Section 3.03 and none of the parties hereto shall take any contrary position in any appraisal proceeding.
(g) Without the prior written consent of the Company, the right to exercise the Top-Up Option granted pursuant to this Agreement may include 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 1.04(e) will be null and void.
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the Company grants to Merger Subsidiary Subsidiary, an irrevocable option, for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”), to purchase from the Company, up to the number of authorized and unissued Shares, Shares equal to the number of Shares that, when added to the number of Shares owned by Merger Subsidiary the Roche Group at the time of exercise of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares 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) (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”). Merger Subsidiary hereby agrees, and Parent agrees to cause Merger Subsidiary, to exercise the Top-Up Option to the extent necessary and practicable in order to consummate the Merger in accordance with Section 8.06.
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c)Subsidiary, in whole or in part, only once, at any time during the 10 Business Day business day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day business day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary the Roche Group shall own as of such time less than 90% of the Shares outstanding Shareson a fully-diluted basis; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount in cash equal to the price paid for each Share in the OfferOffer Price, without interest. Such purchase price shall may be payable paid by Merger Subsidiary Subsidiary, at its election, either (A) entirely in cash, cash or (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 63% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.058.06. At the closing of the purchase of the Top-Up Shares, Parent and or Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entryShares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.0111.01, 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 Delaware Law as contemplated by Section 9.05 8.06 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 1 contract
Samples: Merger Agreement (Genentech Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof option (the “"Top-Up Option”"), exercisable upon the terms and subject to the conditions set forth in this Section 1.04, to purchase from that number of newly issued Shares (the Company, up "Top-Up Option Shares") equal to the number of authorized and unissued Shares, the lowest number of Shares that, when added to the number of Shares directly or indirectly owned by Merger Subsidiary Parent at the time of exercise such exercise, constitutes one share more than ninety percent (90%) of the Fully Diluted Shares immediately after the issuance of the Top-Up Option, constitutes one Share more than 90% of Option Shares at a price per share equal to the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding SharesOffer Price; provided that notwithstanding anything in this Agreement to the contrary, no event shall the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the Company's then authorized and unissued Shares (giving effect to Shares reserved for issuance under the options then outstanding under the Company Stock Plans, as if such Shares were outstanding).
(b) Merger Sub may exercise the Top-Up Option in whole but not in part, on one or more occasions at any time after the Share 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. 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: (A) the number of authorized but unissued Shares that will be owned by Parent and unreserved Merger Sub immediately preceding the purchase of the Top-Up Option Shares, (iiB) unless the denominations of the certificate or certificates evidencing the Top-Up Option Shares and (C) 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 then outstanding, the number of Fully Diluted Shares, the number of Top-Up Option Shares and the aggregate purchase price therefor (calculated by multiplying the number of such Top-Up Option Shares by the Offer Price). In addition, 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 following prior to the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent Option and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after giving effect to the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up OptionOption Shares. At the Top-Up Closing, Parent or (iii) unless Merger Sub shall pay the Minimum Condition Company the aggregate purchase price for the Top-Up Option Shares and the Company shall have been satisfiedcause to be issued to Merger Sub a certificate or certificates representing the Top-Up Option Shares in such denominations as was requested by Merger Sub. The aggregate purchase price payable for the Top-Up Shares being purchased may be paid by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share Sub or Parent in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) whole or in cash, (B) part in cash and by executing and delivering to the Company a an unsecured promissory note having a principal amount equal to the purchase price, or (C) any combination balance of the foregoingaggregate purchase price for the Top-Up Option Shares, provided that an amount equal to at least the par value of the Top-Up Option Shares shall be paid in cash. Any such promissory note shall bear interest at the applicable federal rate of 6% per annumas determined for U.S. income tax purposes, shall mature on the first anniversary of the date of execution and delivery of such promissory note and may be prepaid at any time without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree shall cooperate to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day ensure that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
Option Shares is accomplished consistent with all applicable Law (d) provided that for purposes of this Section 1.04, applicable Law shall not include any rules or regulations of the NASDAQ Stock Market or any other stock exchange). Consistent therewith, Parent and Merger Subsidiary understand Sub acknowledge that the Shares that Merger Sub may acquire upon exercise of the Top-Up Shares Option will not be registered under the 1933 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. Each of Parent and Merger Subsidiary represents, warrants Sub represent and warrant to the Company that Merger Sub will be upon the purchase of the Top-Up Option Shares an "accredited investor," as defined in Rule 501 of Regulation D under the Securities Act. Merger 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 Merger Subsidiary 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 1933 Securities Act). Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.ARTICLE II
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Parent and/or Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), subject to the terms and conditions hereof, to purchase from that number of shares of Company Common Stock (the Company, up “Top-Up Shares”) equal to the lowest number of authorized and unissued Shares, the number shares of Shares Company Common Stock that, when added to the number of Shares shares of Company Common Stock owned by Merger Subsidiary Sub at the time of exercise such exercise, shall constitute one share of Company Common Stock more than ninety percent (90%) of the number of shares of Company Common Stock entitled to vote on the Merger after the issuance of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up OptionShares, calculated on a fully-diluted basis (the Shares to be issued upon basis, or, at Parent’s election, on a primary basis, at an exercise of the price per Top-Up OptionShare equal to the Offer Price (with, for this purpose only, the “Top-Up Shares”value of the fraction of the share of Parent Common Stock included in the Offer Price fixed at $10.25).
(b) The Top-Up Option may shall only be exercised by Merger Subsidiary in accordance with Section 1.04(c), exercisable once in whole or and not in part, only once, part at any time during the 10 within ten (10) Business Day period Days following the Acceptance DateTime, or if any Subsequent Offering Period subsequent offering period is provided, during the 10 ten (10) Business Day period following the expiration date of such Subsequent Offering Periodthe subsequent offering period; provided, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided however, that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed for more than the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock Stock; and, provided, further, that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying terminate concurrently with the number termination of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payablethis Agreement.
(c) In the event Parent or Merger Subsidiary Sub wishes to exercise the Top-Up Option, Parent or Merger Subsidiary Sub shall deliver to so notify the Company a in writing and shall set forth in such notice (the “Top-Up Notice”) setting forth (i) whether Parent is electing to have the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Topdetermined on a fully-Up Option and diluted or primary basis, (ii) the place and time at which the closing number of the purchase shares of such Top-Up Shares Company Common Stock owned by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of Sub immediately preceding the purchase of the Top-Up Shares, Parent Shares and Merger Subsidiary shall cause to be delivered to (iii) the Company the consideration required to be delivered in exchange place and time for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on (the same day that “Top-Up Closing”). The Company shall, as soon as practicable following receipt of such notice, notify Parent and Merger Sub in writing of the number of shares of Company Common Stock then outstanding and the number of Top-Up Shares. At the Top-Up Notice is deemed received by Closing, (i) Parent or Merger Sub shall pay to the Company pursuant to Section 12.01, 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 aggregate price required to be consummated paid for the Top-Up Shares, at the election of Parent and Merger Sub, in accordance with Section 253 cash or by delivery of Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, a promissory note due on the same day asfirst anniversary of the Top-Up Closing and bearing simple interest of five percent (5%) per annum and having full recourse to Parent and (ii) the issuance of Company shall cause to be issued to Merger Sub a certificate representing the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(bSection 1.3(b) and 1.04(cSection 1.3(c), the Company grants hereby issues to Merger Subsidiary Sub an optionirrevocable option (the “Top-Up Option”), for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”)hereof, to purchase from the Company, up Company that number of shares of the Company Common Stock equal to the number of authorized and unissued Shares, shares of the number of Shares Company Common Stock that, when added to the number of Shares shares of the Company Common Stock owned by Parent, Merger Sub or any other Subsidiary of Parent at the time of exercise of the Top-Up Option, constitutes at least one Share share of the Company Common Stock more than 90% of the Fully Diluted Shares that would be outstanding immediately after at such date, assuming the issuance of all Shares shares of the Company Common Stock to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis Option (such shares of the Shares Company Common Stock to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may shall be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time Sub during the 10 two-Business Day period following the Acceptance Datetime at which shares of the Company Common Stock are first accepted pursuant to the Offer, or if any Subsequent Offering Period subsequent offering period is provided, during the 10 two-Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Sharessubsequent offering period; provided that that, notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent that the number of Shares shares of the Company Common Stock issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following shares of the Company Common Stock that are not reserved or otherwise committed to be issued at the time of the exercise of the Top-Up Option, (ii) if any law then in effect shall prohibit the number exercise of the Top-Up Option or the delivery of the Top-Up Shares, and (iii) unless Parent or Merger Sub has accepted for payment all shares of the Company Common Stock owned validly tendered in the aggregate by Parent Offer and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the not withdrawn. The Top-Up Option, or Option shall terminate upon the earlier to occur of (iiix) unless the Minimum Condition shall have been satisfiedEffective Time and (y) termination of this Agreement in accordance with Article 9. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Shares by an amount equal to the price paid for each Share in the OfferOffer Price, without interest. Such purchase price shall may be payable paid by Merger Subsidiary Sub, at its election, either (A) entirely in cash, cash or (B) by paying in cash an amount equal to not less than the aggregate par value of such Top-Up Shares and by executing and delivering to the Company a promissory note having a principal amount equal to the balance of such purchase price, or (C) any combination of the foregoing. Any such promissory note shall be full recourse against Parent and Merger Sub, shall bear interest at the rate of 6% three percent (3%) per annum, shall mature on the first (1st) anniversary of the date of execution and delivery of such promissory note and may be prepaid prepaid, in whole or in part, at any time without premium or penalty; providedpenalty and shall have no other material terms. Without the prior written consent of the Company, however, that upon any Event the right to exercise the Top-Up Option granted pursuant to this Agreement may be exercised only once and shall not be assigned by Merger Sub. Any attempted assignment in violation of Default, all principal this Section 1.3(b) shall be null and accrued interest thereunder shall immediately become due and payablevoid.
(c) In the event that Merger Subsidiary wishes to Sub shall exercise the Top-Up Option, Merger Subsidiary Sub shall deliver to the Company a written notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary Sub intends to purchase pursuant to the Top-Up Option Option, (ii) the manner in which Merger Sub intends to pay the applicable purchase price pursuant to Section 1.3(b) and (iiiii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary Sub is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary Sub that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent Sub shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 11.05 of Delaware Law the MBCA as contemplated by Section 9.057.6(b). At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary Sub the Top-Up Shares. At the closing of the purchase of the Top-Up Shares, the Company shall cause to be issued to Merger Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entryShares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.0110.2, and if not so consummated on such day, as promptly thereafter as possible. The parties hereto further agree to use their reasonable best efforts to cause the Merger to be consummated in accordance with Section 253 of Delaware Law the MBCA as contemplated by Section 9.05 7.6(b), subject to applicable law, as close in time as possible to after (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares. Parent, Merger Sub and the Company shall cooperate to ensure that any issuance of the Top-Up Shares is accomplished in a manner consistent with all applicable laws.
(d) Parent and Merger Subsidiary Sub understand that the Top-Up Shares will not be registered under the 1933 Securities Act of 1933, as amended (including 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. Each of Parent and Merger Subsidiary Sub represents and warrants to the Company that Merger Sub will be upon any exercise of the Top-Up Option an “accredited investor” as defined in Rule 501 of Regulation D promulgated under the Securities Act. With respect to the Top-Up Option and the issuance of the Top-Up Shares, each of Parent and Merger Sub represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may shall include any legends required by applicable securities laws.
(e) Notwithstanding anything to the contrary contained herein, each of Parent, Merger Sub and the Company agree and acknowledge that, in any appraisal proceeding under Part 13 of the MBCA with respect to Dissenting Shares, the Surviving Corporation shall not assert that the Top-Up Option, the Top-Up Shares or any cash or promissory note delivered by Merger Sub to the Company in payment for such Top-Up Shares should be considered in connection with the determination of the fair value of the Dissenting Shares in accordance with Part 13 of the MBCA.
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(b1.6(b) and 1.04(c1.6(c), the Company hereby grants to Merger Subsidiary Acquisition Sub an optionirrevocable option (the “Top-Up Option”), exercisable subject to and upon the terms and conditions set forth in this Section 1.6 and for so long as this Agreement has not been terminated pursuant to Section 7, to purchase from the provisions hereof Company at a price per share equal to the Offer Price, that number of authorized and unissued Company Shares (the “Top-Up OptionOption Company Shares”), to purchase from the Company, up ) equal to the number of authorized and unissued Shares, the number of Company Shares that, when added to the number of Company Shares directly or indirectly owned by Merger Subsidiary Parent or Acquisition Sub at the time of exercise of the Top-Up Optionsuch exercise, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least constitute one share more than 90% of the number of shares of then outstanding Company Common Stock that would be outstanding immediately after Shares (taking into account the issuance of all shares the Top-Up Option Company Shares); provided that in no event shall the Top-Up Option be exercisable for a number of Company Common Shares in excess of the Company’s then authorized and unissued Company Shares (giving effect to Company Shares reserved for issuance under the Company Stock subject to Plans and for conversion of the Company Convertible Notes as if such shares were outstanding) or if any Legal Requirement (not including NYSE rules and regulations) shall prohibit, or require any action, consent, approval, authorization or permit of, action by, or filing with or notification to, any Governmental Entity in connection with the exercise of the Top-Up OptionOption or the delivery of the Top-Up Option Company Shares pursuant to the Top-Up Option in respect of such exercise, which action, consent, approval, authorization or permit, action, filing or notification has not theretofore been obtained or made, as applicable (iii) unless the Minimum Condition shall have been satisfiedother than notice filings that may be required under federal or state securities laws). The aggregate purchase price payable for the Top-Up Option Company Shares being purchased by Merger Subsidiary Acquisition Sub pursuant to the Top-Up Option shall be determined paid by multiplying the number of such Shares Acquisition Sub or the Parent, either (i) entirely in cash or, at its election, (ii) by paying in cash an amount equal to not less than the price paid for each Share in aggregate par value of the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) Top-Up Option Company Shares and by executing and delivering to the Company a promissory note having a principal amount equal to the aggregate purchase price, or (C) any combination of price pursuant to the foregoingTop-Up Option. Any such promissory note shall bear interest at the rate of 63% per annum, shall mature on the first anniversary of the date of execution and delivery of such promissory note and may be prepaid prepaid, in whole or in part, without premium or penalty; provided. Notwithstanding the foregoing sentence, howeverthe terms and provisions of the promissory note shall be such that the promissory note can be sold to an unrelated third party without a discount.
(b) Provided that no Legal Requirement or other event or circumstance described in Section 1.6(a) shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Company Shares in respect thereof, that upon Acquisition Sub may exercise the Top-Up Option, in whole or in part, at any Event one time within the 10 business day period after the Acceptance Time or, if a Subsequent Offering Period is made available, during the 10 business day period following the expiration date of Defaultthe Subsequent Offering Period and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement pursuant to Section 7, all principal and, in each case, only if at such time of exercise Parent and accrued interest thereunder Acquisition Sub collectively shall immediately become due and payableown Company Shares constituting at least one share less than 90% of the then outstanding Company Shares.
(c) In the event Merger Subsidiary that Acquisition Sub wishes to exercise the Top-Up Option, Merger Subsidiary Parent shall deliver send to the Company a written notice (the “Top-Up Notice”) setting forth specifying (i) the number of Top-Up Shares that Merger Subsidiary Option Company Shares, (ii) the aggregate purchase price therefor, (iii) the manner in which Parent or Acquisition Sub intends to pay the applicable exercise price, and (iv) the place, time and date for the closing of the purchase and sale pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such “Top-Up Closing”). If, as of the Top-Up Closing, Parent and Acquisition Sub would collectively own Company Shares by Merger Subsidiary is to take place. The constituting 90% or more of the then outstanding Company Shares, the Top-Up Notice also shall also include an undertaking signed by Parent and Merger Subsidiary Acquisition Sub that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary Acquisition Sub intends to (and Merger Subsidiary Acquisition Sub shall, and Parent shall cause Merger Subsidiary Acquisition Sub to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law the DGCL as contemplated by in Section 9.055.3. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary or Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Company Shares, and the Company shall cause to be issued to Merger Subsidiary Parent or Acquisition Sub (as the case may be) a certificate representing the Top-Up Option Company Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the shall cause such Top-Up Option Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented Shares to be created by book-entryentry transfer to Acquisition Sub. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Option Company Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.018.11, 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 Delaware Law the DGCL as contemplated by in Section 9.05 5.3 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand Acquisition Sub acknowledge that the Company Shares that Acquisition Sub may acquire upon exercise of the Top-Up Shares Option will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsAcquisition Sub hereby represents and warrants to the Company that Acquisition Sub is, warrants and will be, upon the purchase of the Top-Up Option Company Shares, an “accredited investor,” as defined in Rule 501 of Regulation D under the Securities Act. Acquisition Sub agrees that the Top-Up Option is being, and the Top-Up Option Company Shares to be acquired upon exercise of the Top-Up Option are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act). Any certificates evidencing representing Top-Up Option Company Shares may include any legends required by applicable securities laws.
Appears in 1 contract
Samples: Merger Agreement (Gateway Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 1.04, to purchase from the Company, up 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 Common Stock (the “Top-Up Shares, ”) equal to the lowest number of Shares shares of Company Common Stock that, when added to the number of Shares shares of Company Common Stock owned by Merger Subsidiary Parent and its Subsidiaries at the time of exercise of the Top-Up Option, constitutes shall constitute one Share share more than 9080% of the Shares that would be shares of Company Common Stock outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated Shares on a fully-partially diluted basis (the Shares to be issued upon assuming conversion or exercise of the Top-Up Option, the “Top-Up Shares”all deferred stock units but not any other derivative securities including stock options).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is ; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, (i) the Top-Up Option shall not be exercisable (i) to the extent the for a number of Shares issuable upon 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, (ii) the Top-Up Option shall not be exercisable unless immediately after such exercise and the issuance of the Top-Up Shares, Merger Sub shall own at least 80% of the outstanding shares of Company Common Stock (determined on a partially diluted basis assuming conversion or exercise of all deferred stock units but not any other derivative securities including stock options) and (iii) the exercise of the Top-Up Option would exceed and the number of authorized but unissued issuance and unreserved Shares, (ii) unless immediately following the exercise delivery of the Top-Up OptionShares shall not be prohibited by any Law or Order. Upon Parent’s request, the number of shares of the Company Common Stock owned shall use its reasonable best efforts to cause its transfer agent to certify in the aggregate by writing to Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be 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 Shares. The Top-Up Option shall be exercisable only once, in whole but not in part, at any time following the Offer Closing (only after Merger Sub has accepted and paid for all shares of Company Common Stock subject validly tendered and not validly withdrawn) and prior to such the earlier to occur of (A) the Effective Time and (B) the termination of this Agreement in accordance with its terms.
(b) In the event Merger Sub wishes to exercise of the Top-Up Option, or Merger Sub shall give the Company at least five (iii5) unless Business Days prior written notice, specifying (i) the Minimum Condition shall have been satisfiednumber of shares of Company Common Stock owned by Parent and its Subsidiaries at the time of such notice (giving effect to the Offer Closing) 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 Shares to be purchased by Merger Sub. At the closing of the purchase of Top-Up Shares, the aggregate purchase price payable owed by Merger Sub to the Company for the Top-Up Shares being purchased shall be paid to the Company at Parent’s election, either (i) entirely in cash, by Merger Subsidiary pursuant wire transfer of same-day funds or (ii) by (A) paying 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 shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, and (B) by executing and delivering issuing to the Company a promissory note having a principal amount equal to the aggregate purchase price, or price pursuant to the Top-Up Option less the amount paid in cash pursuant to the preceding clause (CA) any combination of (the foregoing“Promissory Note”). Any such promissory note The Promissory Note (i) shall bear simple interest at the a rate of 6% five percent (5%) per annum, 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 delivery of such promissory note and Merger Sub, (iv) may be prepaid prepaid, at any time, in whole or in part, without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (iiv) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take placeshall have no other material terms. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stockshares, the applicable number of nonBook-certificated Entry Shares. Such certificates or Book-Entry Shares may include any legends that are required by federal or state securities Laws.
(c) Parent and Merger Sub acknowledge that no Top-Up Shares issued upon exercise of the Top-Up Option will be registered under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”) and that all such shares will be issued in reliance upon an applicable exemption from registration under the Securities Act. Each of Parent and Merger Sub hereby represents and warrants to the Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of that Merger Sub is, and will be, upon the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01Shares, and if not so consummated on such day, an “accredited investor,” as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated defined in accordance with Section 253 Rule 501 of Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered Regulation D under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offeringSecurities Act. Each of Parent and Merger Subsidiary represents, warrants and Sub agrees that the Top-Up Option is being, and the Top-Up Shares to be acquired upon exercise of the Top-Up Option are being and will be, be acquired by Merger Subsidiary 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 1933 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 Shares may include will not be taken into account in any legends required determination of the fair value of any Dissenting Shares pursuant to Subchapter 15D of the PBCL as contemplated by Section 3.03.
(e) If Merger Sub elects to exercise the Top-Up Option, as soon as practicable after such exercise, the Company shall cooperate with Parent and use reasonable best efforts to take, or cause to be taken, all actions, and do or cause to be done all things, reasonably necessary, proper or advisable on its part under applicable securities lawsLaws and rules and policies of the NASDAQ Stock Market (“NASDAQ”) to cause the delisting of the Company and of the Company Common Stock from NASDAQ and the deregistration of the Company Common Stock under the Exchange Act as promptly as practicable after such delisting.
Appears in 1 contract
Samples: Merger Agreement (Tasty Baking Co)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “"Top-Up Option”)") to purchase, to purchase from the Company, up at a price per share equal to the Common Per Share Amount, a number of authorized and unissued Common Shares (the "Top-Up Option Shares, the number of Shares ") that, when added to the number of Common Shares owned by Parent or Merger Sub or any wholly-owned Subsidiary of Parent or Merger Sub at the time of exercise of the Top-Up Option, constitutes one Common Share more than 90% of the number of Common Shares that would will be issued and outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Option Shares”).
(b) . The Top-Up Option may shall be exercised by Merger Subsidiary in accordance with Section 1.04(c)Sub, in whole or in part, only once, at any time during on or after the 10 Expiration Date and on or prior to the fifth Business Day period following after the Acceptance Date, later of (x) the Expiration Date or if any Subsequent Offering Period is provided, during the 10 Business Day period following (y) the expiration of any subsequent offering period (the date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, on which the Top-Up Option shall not be exercisable (i) is exercised, the "Top-Up Option Exercise Date"); provided, however, that the obligation of the Company to deliver Top-Up Option Shares upon the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed is subject to the number conditions that (i) neither any provision of authorized but unissued and unreserved Sharesany applicable Law nor any judgment, injunction, order or 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 of such exercise, (ii) unless immediately following 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, (iii) upon exercise of the Top-Up Option, the number of shares of the Company Common Stock Shares owned in the aggregate by Parent and or Merger Sub or any wholly-owned Subsidiary constitutes at least of Parent or Merger Sub will constitute one share Common Share more than 90% of the number of shares of Company Common Stock Shares that would 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 shares 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 Company Top-Up Option Shares may not exceed the aggregate number of authorized but unissued Common Stock subject Shares as of the Top-Up Option Exercise Date. The parties shall cooperate to such 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 OptionOption 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 (iiiii) unless a place and time for the Minimum Condition shall have been satisfiedclosing of the purchase of the Top-Up Option Shares. The Company shall, as soon as practicable following receipt of such notice, notify Parent and Merger Sub of the number of Common Shares then issued and outstanding and the number of Top-Up Option Shares to be purchased in connection with such exercise. 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, and the Company shall cause to be issued to Parent or Merger Sub a certificate representing the Top-Up Option Shares. The purchase price for the Top-Up Option Shares attributable to the par value of each of the Top-Up Option Shares shall be payable by Merger Sub to the Company in cash by wire transfer of immediately available funds to an account designated by the Company, and the balance of the aggregate purchase price payable for the Top-Up Option Shares being purchased may be paid by Merger Subsidiary pursuant Sub, at its option, either in cash by wire transfer of immediately available funds to an account designated by the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) Company or by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination balance of the foregoingaggregate purchase price of the Top-Up Shares and bearing interest at the rate of interest per annum equal to the Interest Rate. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, provided that it is understood that such promissory note shall be canceled upon any Event of Default, all principal the Closing (as defined below). Merger Sub hereby represents and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver warrants to the Company a notice (the “Top-Up Notice”) setting forth (i) the number that it will not offer to sell or otherwise dispose of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the any Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares acquired by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company it pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the this Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary for the purpose of investment and not with a view to or for resale in connection with any distribution thereof within the meaning violation of the 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities lawsSecurities Act or prior to consummation of the Merger.
Appears in 1 contract
Samples: Merger Agreement (Metromedia International Group Inc)
Top-Up Option. (a) Subject to Sections 1.04(b2.04(b) and 1.04(c2.04(c), the Company grants to Merger Subsidiary Subsidiary, an irrevocable option, for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”), to purchase from the Company, up to the a number of authorized and unissued Shares, Shares equal to the number of Shares that, when added to the number of Shares owned by Merger Subsidiary at the time of the exercise of the Top-Up Option, constitutes one Share more not less than 90% the number of Shares required to reach the Shares that would be outstanding immediately Short Form Threshold after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis Option (the such Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may shall be exercised by Merger Subsidiary in accordance with Section 1.04(c)Subsidiary, in whole or in part, only once, at any time during the 10 Business Day period as promptly as reasonably practicable following the Acceptance DateTime, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% the number of Shares required to reach the outstanding SharesShort Form Threshold; provided that that, notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable exercisable, and there shall be no obligation of Merger Subsidiary to exercise the Top Up Option, (i) to unless there are sufficient authorized but unissued and unreserved Shares as provided in the extent the number of Shares issuable upon Company Certificate such that exercise of the Top-Up Option would exceed result in the number of authorized but unissued and unreserved SharesShort Form Threshold being reached, (ii) unless immediately following if any judgment, injunction, order or decree shall prohibit the exercise of the Top-Up Option, Option or the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise delivery of the Top-Up Option, or Shares and (iii) unless Parent or Merger Subsidiary has accepted for payment all Shares validly tendered in the Minimum Condition Offer and not withdrawn. The Top-Up Option shall have been satisfiedterminate upon the earlier to occur of (x) the Effective Time and (y) termination of this Agreement in accordance with Article 11. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Shares by an amount equal to the price paid for each Share in the OfferOffer Price, without interest. Such purchase price shall may be payable paid by Merger Subsidiary Subsidiary, at its election, either (A) entirely in cash, cash or (B) by paying in cash an amount equal to not less than the aggregate par value of such Top-Up Shares and by executing and delivering to the Company a promissory note having a principal amount equal to the balance of such purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 63% 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; provided. Without the prior written consent of the Company, however, that upon the right to exercise the Top-Up Option granted pursuant to this Agreement shall not be assigned by Merger Subsidiary except to any Event direct or indirect wholly owned Subsidiary of Default, all principal Parent. Any attempted assignment in violation of this Section 2.04(b) shall be null and accrued interest thereunder shall immediately become due and payablevoid.
(c) In the event Merger Subsidiary wishes is obligated to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a written notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option Option, (ii) the manner in which Merger Subsidiary intends to pay the applicable purchase price and (iiiii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Company shall make available to Parent and Merger Subsidiary all information reasonably requested by them to enable them to calculate the number of Shares required for Parent and Merger Subsidiary to reach the Short Form Threshold. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entryShares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, and if not so consummated on such day, as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to At the request of Parent, the Company shall not, and shall cause its transfer agent not to, issue or deliver any Shares in satisfaction of the Merger to be consummated in accordance with Section 253 exercise of Delaware Law as contemplated by Section 9.05 as close in any Options or Warrants from the time as possible to (including, of delivery to the extent possible, on the same day as) the issuance Company of the Top-Up SharesNotice until the Effective Time.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may shall include any legends required by applicable securities laws.
(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 Shares pursuant to Section 262 of Delaware Law as contemplated by Section 3.04.
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Top Up Option”), exercisable upon the terms and conditions set forth in this Section 1.3, to purchase from purchase, for consideration per Top Up Option Share equal to the CompanyPer Share Amount, up to the that number of authorized and unissued newly issued Shares (the “Top Up Option Shares, ”) equal to the lesser of (i) the number of Shares that, when added to the number of Shares owned by Parent and Merger Subsidiary at the time of exercise of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless Sub immediately following the exercise consummation of the Top-Up OptionOffer and the contribution of Shares pursuant to the LB Contribution Agreement, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least shall constitute one share more than 90% of the number of shares of Company Common Stock that would be Shares then outstanding immediately on a Fully Diluted Basis (after giving effect to the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Top Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (AShares) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the aggregate number of Shares held as treasury shares by the Company and the number of Shares that the Company is authorized to issue under its certificate of incorporation but which (A) are not issued and outstanding, (B) are not reserved for issuance pursuant to the Company Stock Plans and (C) are issuable without the approval of the Company’s stockholders.
(b) In the event that Merger Sub wishes to exercise the Top Up Option, Parent shall give the Company three business days’ prior written notice specifying the number of Shares that are owned by Parent and Merger Sub immediately following consummation of the Offer and the contribution of Shares pursuant to the LB Contribution Agreement and specifying a place and a time at which for the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take placepurchase. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary thatCompany shall, as promptly soon as practicable following receipt of such exercise notice, deliver written notice to Merger Sub specifying the number of the Top-Top Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05Option Shares. At the closing of the purchase of the Top-Top Up Option Shares, Parent and or Merger Subsidiary Sub shall cause to be delivered pay to the Company an amount equal to the consideration required product of (i) the number of Shares purchased pursuant to the Top Up Option, multiplied by (ii) the Per Share Amount, which amount shall be delivered paid in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares cash (by wire transfer or cashier’s check) or, at Parent’s the election of Parent or Merger Subsidiary’s request or otherwise if Sub, by delivery of a promissory note having full recourse to Parent in the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, aggregate principal amount equal to the extent possible, on the same day as) the issuance of the Top-aggregate purchase price for such Top Up Option Shares.
(dc) Parent and Merger Subsidiary understand Sub acknowledge that the Top-Top Up Option Shares that Merger Sub may acquire upon exercise of the Top Up Option will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsSub represent and warrant to the Company that Merger Sub is, warrants and or will be upon the purchase of the Top Up Option Shares, an “Accredited Investor,” as defined in Rule 501 of Regulation D under the Securities Act. Merger Sub agrees that the Top-Top Up Option is being, and the Top-Top Up Option Shares to be acquired upon exercise of the Top Up Option are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the Company The Seller hereby grants to Merger Subsidiary the Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 1.4, to purchase from at a price per share equal to the Company, Offer Price paid in the Offer up to the that number of authorized and unissued newly issued shares of Seller Common Stock (the “Top-Up Shares, ”) equal to the lowest number of Shares shares of Seller Common Stock that, when added to the number of Shares shares of Seller Common Stock directly or indirectly owned by Merger Subsidiary the Parent or the Purchaser at the time of exercise of the Top-Up Option, constitutes shall constitute one Share share more than 90% of the Shares that would be shares of Seller Common Stock outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated Shares (determined on a fully-“fully diluted basis basis” (the Shares to be issued upon which assumes conversion or exercise of all derivative securities regardless of the Top-Up Optionconversion or exercise price, the “Top-Up Shares”vesting schedule or other terms and conditions thereof).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is ; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, (i) the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the for a number of shares of the Company Seller Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% excess of the number of shares of Company Seller Common Stock that would be outstanding immediately after authorized and unissued at the issuance time of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares Option may not be exercised unless, following the time of acceptance by Merger Subsidiary is to take placethe Purchaser of shares of Seller Common Stock tendered in the Offer or after a subsequent offering period, eighty-five percent (85%) or more of the shares of Seller Common Stock shall be directly or indirectly owned by the Parent or the Purchaser. The Top-Up Notice Option shall also include be exercisable once at any time following the Acceptance Date and prior to the earlier to occur of (a) the Effective Time and (b) the termination of this Agreement in accordance with its terms.
(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 undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such applicable exemption from registration of the Top-Up Shares under the Securities Act. If the Purchaser wishes to exercise of the Top-Up Option, Merger Subsidiary intends to the Purchaser shall give the Seller one Business Day prior written notice, specifying (i) the number of shares of Seller Common Stock directly or indirectly owned by the Parent at the time of such notice and Merger Subsidiary (ii) a place and a time for the closing of such purchase. The Seller shall, and Parent shall cause Merger Subsidiary to, as promptly soon as practicable after following receipt of such exercise) consummate notice, deliver written notice to the Merger Purchaser specifying, based on the information provided by the Purchaser in accordance with Section 253 its notice, the number of Delaware Law as contemplated by Section 9.05Top-Up Shares. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered the purchase price owed by the Purchaser to the Company Seller therefor shall be paid to the consideration required to be delivered Seller (i) in exchange for the Top-Up Sharescash, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parentby wire transfer or cashier’s check or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented (ii) by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received issuance by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, Purchaser to the extent possible, Seller of a promissory note on terms reasonably satisfactory to the same day as) the issuance of the Top-Up SharesSeller.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(bSection 2.04(b) and 1.04(cSection 2.04(c), the Company grants to Merger Subsidiary Sub an irrevocable option, for so long as this Agreement has not been terminated pursuant to the provisions hereof Article XI (the “Top-Up Option”), to purchase from the Company, Company up to the number of authorized and unissued Shares, Shares equal to the number of Shares that, when added to the number of Shares owned by Merger Subsidiary Sub at the time of exercise of the Top-Up Option, constitutes one Share more than 90% of the Shares that number of shares of each class of the Company capital stock then outstanding that, absent Section 253 of Delaware Law, would be outstanding immediately entitled to vote on the Merger (the “Requisite Short-Form Merger Shares”) after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-fully diluted basis (assuming conversion or exercise of all derivative securities or other rights to acquire Company Common Stock regardless of the conversion or exercise price, the vesting schedule or other terms and conditions thereof) or, as may be elected by Parent, on a primary basis at the Effective Time (such Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c)Sub, from time to time in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance DateTime, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date Expiration Date of such the Subsequent Offering Period, Period and only if Merger Subsidiary Sub shall own as of such time less than 90% of the outstanding Requisite Short-Form Merger Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable to the extent (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, Shares or (ii) unless immediately following any provision of Applicable Law (including, without limitation, applicable rules and regulations of NASDAQ) shall prohibit the exercise of the Top-Up Option, Option or the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise delivery of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfiedShares. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the OfferOffer Price, without interest. Such purchase price shall may be payable paid by Merger Subsidiary (A) Sub, at its election, either entirely in cash, (B) cash or by executing and delivering to the Company a promissory note having a principal amount equal to the such purchase price, or (C) any combination of the foregoing. Any such promissory note shall be full recourse against Parent and Merger Sub and bear interest at the rate of 63% per annum, shall mature on the first anniversary of the date of execution and delivery of such promissory note annum and may be prepaid without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) The parties shall cooperate to ensure that the issuance of the Top-Up Shares is accomplished consistent with all applicable legal requirements of all Governmental Authorities, including the availability of an applicable exemption from registration of the issuance of the Top-Up Shares under the 1933 Act.
(d) In the event Merger Subsidiary Sub wishes to exercise the Top-Up Option, Merger Subsidiary Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary Sub intends to purchase pursuant to the Top-Up Option Option, (ii) the manner in which Merger Sub intends to pay the applicable purchase price and (iiiii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary Sub is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common StockShares, the applicable number of non-certificated shares of Company Common Stock represented by book-entryentry Shares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law and as contemplated by Section 9.05 9.06 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(de) Parent and Merger Subsidiary Sub understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary Sub represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may shall include any legends required by applicable securities laws.
(f) Parent and the Company shall use their respective reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, and assist and cooperate with each other in doing, all things necessary or desirable to procure from NASDAQ or any other Governmental Authority any necessary waiver or other exemption from the requirements of NASDAQ Rule 5635 or other Applicable Law in order to enable the issuance of the Top-Up Shares to occur without the need to obtain the approval of holders of a majority of the Shares present and voting at a meeting of the Company’s stockholders.
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 2.4, to purchase from the Company, up at a price per share equal to the Offer Price, that number of authorized and unissued shares of Company Common Stock (the “Top-Up Shares, ”) equal to the lowest number of Shares shares of Company Common Stock that, when added to the number of Shares shares of Company Common Stock owned by Merger Subsidiary Parent and its Subsidiaries at the time of exercise of the Top-Up Option, constitutes shall constitute one Share share more than ninety percent (90% %) of the Shares that would be shares of Company Common Stock outstanding immediately after the issuance of all the Top-Up Shares (the “Short Form Threshold”); provided, that the Top-Up Option will not be exercisable unless, immediately after such exercise and the issuance of Top-Up Shares pursuant thereto, the Short Form Threshold would be reached (after giving effect to the issuance of the Top-Up Shares). The Top-Up Option shall be issued upon exercisable only once, in whole but not in part, at any time following the Offer Closing and prior to the earliest to occur of (A) the close of business on the fifth (5th) Business Day following the Offer Closing, (B) the Effective Time and (C) the termination of this Agreement in accordance with its terms.
(b) In the event Merger Sub wishes to exercise of the Top-Up Option, calculated on a fully-diluted basis (Merger Sub shall notify the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary Company in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodwriting, and only if Merger Subsidiary shall own as of set forth in such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable notice (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would owned by Parent and its Subsidiaries at the time of such notice (giving effect to the Offer Closing) and (ii) a place and a time for the closing of such purchase which shall, unless the Existing Directors otherwise agree, be outstanding immediately at the Company’s principal offices not less than one (1) Business Day after receipt of such notice. The Company shall, promptly following receipt of such notice, deliver written notice to Merger Sub specifying, based on the issuance information provided by Merger Sub in its notice, the number of all shares of Company Common Stock subject to such exercise of the Top-Up OptionShares to be purchased by Merger Sub. At the closing of the purchase of Top-Up Shares, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable owed by Merger Sub to the Company for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined (calculated by multiplying the number of such Top-Up Shares by an amount equal the Offer Price) shall be paid to the price paid for each Share in the OfferCompany at Parent’s election, without interest. Such purchase price shall be payable by Merger Subsidiary either (Ai) entirely in cash, by wire transfer of same-day funds or (Bii) by executing and delivering issuing to the Company a promissory note having a principal amount equal to the aggregate purchase price, or price pursuant to the Top-Up Option (Cthe “Promissory Note”). The Promissory Note (i) any combination of the foregoing. Any such promissory note shall bear simple interest at the a rate of 6% three percent (3.0%) per annum, (ii) shall mature on the first anniversary of the date of execution of the Promissory Note, (iii) shall be full recourse to Parent and delivery of such promissory note and Merger Sub, (iv) may be prepaid prepaid, at any time, in whole or in part, without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (iiv) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take placeshall have no other material terms. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of nonBook-certificated Entry Shares. Such certificates or Book-Entry Shares may include any legends that are required by the Company Charter or federal or state securities Laws.
(c) Parent and Merger Sub acknowledge that any Top-Up Shares 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 from registration under the Securities Act. Each of Parent and Merger Sub hereby represents and warrants to the Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of that Merger Sub is, and will be, upon the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01Shares, and if not so consummated on such day, an “accredited investor,” as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated defined in accordance with Section 253 Rule 501 of Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered Regulation D under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offeringSecurities Act. Each of Parent and Merger Subsidiary represents, warrants and Sub agrees that the Top-Up Option is being, and the Top-Up Shares to be acquired upon exercise of the Top-Up Option are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing ).
(d) If Merger Sub exercises the Top-Up Option and the number of Top-Up Shares may include any legends required exceeds the number of shares of authorized Company Common Stock that at the time of exercise are not outstanding, the Company Board will, as promptly as practicable after Merger Sub exercises the Top-Up Option, approve an amendment to the Company Charter increasing the number of shares of Company Common Stock the Company is authorized to issue to a number that is sufficient to enable the Company to issue to Merger Sub all of the Top-Up Shares Merger Sub is to purchase as a result of exercise of the Top-Up Option and such amendment will be duly executed and filed with and accepted for record by applicable securities lawsthe SDAT.
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable upon the terms and conditions of this Section 1.5, to purchase from the Company, up to the that number of authorized and unissued newly-issued Shares (the “Top-Up Shares, ”) equal to the lowest number of Shares that, when added to the number of Shares owned held by Merger Subsidiary Parent, Purchaser or its affiliates at the time of exercise of the Top-Up Optionsuch exercise, constitutes shall constitute one Share share more than 90% of the total Shares that would be then outstanding immediately after (determined on a fully diluted basis and assuming the issuance of all Shares to be issued upon exercise of the Top-Up OptionShares, calculated on a fully-diluted basis (the but excluding from Purchaser’s ownership, but not from outstanding Shares, Shares tendered pursuant to be issued upon exercise guaranteed delivery procedures that have not yet been delivered in settlement or satisfaction of the Top-Up Option, the “Top-Up Shares”such guarantee).
(b) The Top-Up Option may shall be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only exercisable once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, full number of Top-Up Shares then purchasable under the Top-Up Option shall and not be exercisable in part, on or prior to the 10th Business Day following the later of (i) Purchaser’s acceptance for payment of Shares pursuant to the extent Offer and (ii) the expiration of any “subsequent offering periods” provided by Purchaser pursuant to and in accordance with this Agreement, provided that the number of Shares issuable upon beneficially owned by Parent or Purchaser immediately prior to the time of exercise of the Top-Up Option would exceed constitutes at least 82% of the number of Shares then outstanding (excluding from Purchaser’s ownership, but not from outstanding Shares, Shares tendered pursuant to guaranteed delivery procedures that have not yet been delivered in settlement or satisfaction of such guarantee) and that Purchaser shall own, immediately after such exercise and the issuance of Top-Up Shares pursuant thereto, one share more than ninety percent (90%) of the number of Shares then outstanding (excluding from Purchaser’s ownership, but not from outstanding Shares, Shares tendered pursuant to guaranteed delivery procedures that have not yet been delivered in settlement or satisfaction of such guarantee); provided, however, that in no event shall the Top-Up Option be exercisable (x) for a number of Shares in excess of the number of authorized but unissued and unreserved Shares, (iiy) unless immediately following if the exercise issuance of the Top-Up Option, the number of shares Shares being purchased hereunder would require approval of the Company Common Stock owned in the aggregate by Parent Company’s shareholders under NASDAQ Marketplace Rule 5635 and Merger Subsidiary constitutes at least one share more than 90% a waiver of the number or exemption from such requirement is not obtained from NASDAQ, or (z) any other provision of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to applicable law or judgment, injunction, order or decree shall prohibit such exercise of the Top-Up OptionOption or such delivery of Top-Up Shares. Except as otherwise provided in Section 1.5(c), or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price amount payable to the Company for the Top-Up Shares being purchased by Merger Subsidiary pursuant to hereunder upon exercise of the Top-Up Option shall be determined by multiplying equal to the product of the number of Top-Up Shares being so purchased upon such Shares by exercise and the Offer Price (the “Top-Up Consideration”). The Top-Up Option shall terminate upon the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement in accordance with its terms.
(c) The Top-Up Consideration shall consist of (i) an amount equal to the price par value of the Top-Up Shares so purchased, to be paid for each Share in cash, and (ii) an amount equal to the Offerbalance of the Top-Up Consideration, without interest. Such purchase price shall which may be payable by Merger Subsidiary paid (Ax) in cash, or (By) by executing and delivering to the Company issuance of a promissory note having a (which shall be treated as payment to the extent of the principal amount equal thereof) with full recourse to the purchase priceParent and Parent Sponsor, or (Cz) any combination of the foregoing, at Purchaser’s election. Any such promissory note shall (A) bear interest at the rate per annum equal to the prime rate as reported in The Wall Street Journal, Midwest Edition, on the date of 6% per annumexecution and delivery of such promissory note, payable in arrears at maturity, (B) shall mature on the first anniversary of the date of execution and delivery of such promissory note and note, (C) may be prepaid without premium or penalty; provided, however, that upon any Event of Default, all principal penalty and accrued interest thereunder (D) shall immediately become due be full recourse to Parent and payablePurchaser and (E) shall have no other material terms.
(cd) In the event Merger Subsidiary wishes to exercise Purchaser exercises the Top-Up Option, Merger Subsidiary Purchaser shall deliver to so notify the Company a in writing, 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 Purchaser immediately preceding the purchase of the Top-Up Shares, (ii) the place and time for the closing of the purchase of the Top-Up Shares (which, subject to applicable law and any required regulatory approvals, shall be effected as promptly as practicable and not more than five Business Days after date such notice is delivered to the Company), (iii) the number of Shares that Merger Subsidiary Purchaser intends to purchase pursuant to such exercise of the Top-Up Option and (iiiv) the place and time at manner in which Purchaser intends to pay the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take placeapplicable exercise price. The Top-Up Notice Such notice shall also include an undertaking signed by Parent and Merger Subsidiary Purchaser that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary Purchaser shall, and Parent shall cause Merger Subsidiary Purchaser to, as promptly as practicable after such exercise) exercise and the delivery by the Company of the Top-Up Shares so purchased, consummate the Merger in accordance with Section 253 the terms hereof (subject in the case of Delaware Law as contemplated by Section 9.05the Merger to ARTICLE VIII). At the closing of the purchase of the such Top-Up Shares, Parent and Merger Subsidiary or Purchaser shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up such Shares, and the Company shall cause to be issued to Merger Subsidiary Parent or Purchaser a certificate representing such Shares, which certificate may include any legends required by applicable securities laws.
(e) Parent and the Company shall use their respective commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, and assist and cooperate with each other in doing, all things necessary or desirable to procure from NASDAQ or any other Governmental Entity any necessary waiver or other exemption from NASDAQ requirements or applicable law in order to issue the Top-Up Shares orwithout obtaining the approval of the Company’s shareholders.
(f) Parent and Purchaser acknowledge that no Top-Up Shares issued upon exercise of the Top-Up Option will be registered under the Securities Act of 1933, at Parent’s or Merger Subsidiary’s request or otherwise if as amended, and the rules and regulations promulgated thereunder (the “Securities Act”) and that all such Shares will be issued in reliance upon an applicable exemption from registration under the Securities Act. Each of Parent and Purchaser hereby represents and warrants to the Company does not then have certificated shares of Company Common Stockthat Purchaser is, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of and will be, upon the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01Shares, and if not so consummated on such day, an “accredited investor,” as promptly thereafter as possible. The parties further agree to use their reasonable best efforts to cause the Merger to be consummated defined in accordance with Section 253 Rule 501 of Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered Regulation D under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offeringSecurities Act. Each of Parent and Merger Subsidiary represents, warrants and Purchaser agrees that the Top-Up Option is being, and the Top-Up Shares to be acquired upon exercise of the Top-Up Option are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act. ).
(g) Any certificates evidencing dilutive impact on the value of the Shares as a result of the issuance of the Top-Up Shares may include will not be taken into account in any legends required determination of the fair value of any Dissenting Shares pursuant to Section 471 of the MBCA as contemplated by applicable securities lawsSection 3.3. The parties agree that any dilutive impact on the value of the Shares as a result of the existence or exercise of the Top-Up Option or the issuance of the Top-Up Shares, and any effect of the promissory note or any other Top-Up Consideration referred to in Section 1.5(c) above, will not be taken into account in any determination of the fair value of any Dissenting Shares pursuant to Section 471 of the MBCA as contemplated by Section 3.3.
Appears in 1 contract
Samples: Merger Agreement (Makemusic, Inc.)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”)) exercisable only on the terms and conditions set forth in this Section 1.3, to purchase from at the Company, Per Share Amount up to the that number of authorized and unissued newly issued Shares (the “Top-Up Shares, ”) equal to the lowest number of Shares that, when added to the number of Shares owned by Parent and its Subsidiaries (including Merger Subsidiary Sub) at the time of the exercise of the Top-Up Option, shall constitute one share more than 90% of the Shares outstanding immediately after the issuance of the Top-Up Shares on a fully diluted basis; provided, however, that the Top-Up Option shall not be exercisable for a number of Shares in excess of the Shares authorized and unissued or held in the treasury of the Company at the time of exercise of the Top-Up Option, constitutes one Share more than 90% Option (including as outstanding only options that are vested as of that date or that may vest prior to the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance End Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfiedany). The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying exercisable only once, in whole but not in part, after the number of such Shares by an amount equal Acceptance Time and prior to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary earlier to occur of (A) in cash, the Effective Time and (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination termination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payablethis Agreement in accordance with its terms.
(cb) In the event Merger Subsidiary Sub wishes to exercise the Top-Up Option, Merger Subsidiary 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 (including Merger Sub) at the time of such notice (giving effect to the acceptance of Shares in the Offer) 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 aggregate number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares be purchased by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05Sub. At the closing of the purchase of the Top-Up Shares, Parent and the aggregate purchase price owed by Merger Subsidiary shall cause to be delivered Sub to the Company the consideration required to be delivered in exchange for the Top-Up SharesShares 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 (A) paying in cash by wire transfer of same-day funds an amount equal to not less than the aggregate par value of the Top-Up Shares and (B) issuing to the Company a promissory note having a principal amount equal to (1) the aggregate purchase price pursuant to the Top-Up Option less (2) the amount paid in cash pursuant to the preceding clause (A) (the “Promissory Note”). The Promissory Note (i) shall bear interest at a rate per annum equal to the prime lending rate prevailing from time to time during such period as published in the Wall Street Journal, (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 Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common StockShares, the applicable number of nonBook-certificated shares of Company Common Stock represented by bookEntry Shares. Such certificates or Book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Entry Shares may include any legends that are required by applicable Federal or state securities lawsLaws.
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(b1.6(b) and 1.04(c1.6(c), the Company hereby grants to Merger Subsidiary Acquisition Sub an optionirrevocable option (the “Top-Up Option”), exercisable subject to and upon the terms and conditions set forth in this Section 1.6 and for so long as this Agreement has not been terminated pursuant to Section 7, to purchase from the provisions hereof Company at a price per share equal to the Offer Price, that number of authorized and unissued Company Shares (the “Top-Up OptionOption Company Shares”), to purchase from the Company, up ) equal to the number of authorized and unissued Shares, the number of Company Shares that, when added to the number of Company Shares directly or indirectly owned by Merger Subsidiary Parent or Acquisition Sub at the time of exercise of the Top-Up Optionsuch exercise, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least constitute one share more than 90% of the number of shares of then outstanding Company Common Stock that would be outstanding immediately after Shares (taking into account the issuance of all shares the Top-Up Option Company Shares); provided that in no event shall the Top-Up Option be exercisable for a number of Company Common Shares in excess of the Company’s then authorized and unissued Company Shares (giving effect to Company Shares reserved for issuance under the Company Stock subject to Plans and for conversion of the Company Convertible Notes as if such shares were outstanding) or if any Legal Requirement (not including NYSE rules and regulations) shall prohibit, or require any action, consent, approval, authorization or permit of, action by, or filing with or notification to, any Governmental Entity in connection with the exercise of the Top-Up OptionOption or the delivery of the Top-Up Option Company Shares pursuant to the Top-Up Option in respect of such exercise, which action, consent, approval, authorization or permit, action, filing or notification has not theretofore been obtained or made, as applicable (iii) unless the Minimum Condition shall have been satisfiedother than notice filings that may be required under federal or state securities laws). The aggregate purchase price payable for the Top-Up Option Company Shares being purchased by Merger Subsidiary Acquisition Sub pursuant to the Top-Up Option shall be determined paid by multiplying the number of such Shares Acquisition Sub or the Parent, either (i) entirely in cash or, at its election, (ii) by paying in cash an amount equal to not less than the price paid for each Share in aggregate par value of the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) Top-Up Option Company Shares and by executing and delivering to the Company a promissory note having a principal amount equal to the aggregate purchase price, or (C) any combination of price pursuant to the foregoingTop-Up Option. Any such promissory note shall bear interest at the rate of 63% per annum, shall mature on the first anniversary of the date of execution and delivery of such promissory note and may be prepaid prepaid, in whole or in part, without premium or penalty; provided. Notwithstanding the foregoing sentence, howeverthe terms and provisions of the promissory note shall be such that the promissory note can be sold to an unrelated third party without a discount.
(b) Provided that no Legal Requirement or other event or circumstance described in Section 1.6(a) shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Option Company Shares in respect thereof, that upon Acquisition Sub may exercise the Top-Up Option, in whole or in part, at any Event one time within the 10 business day period after the Acceptance Time or, if a Subsequent Offering Period is made available, during the 10 business day period following the expiration date of Defaultthe Subsequent Offering Period and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of this Agreement pursuant to Section 7, all principal and, in each case, only if at such time of exercise Parent and accrued interest thereunder Acquisition Sub collectively shall immediately become due and payableown Company Shares constituting at least one share less than 90% of the then outstanding Company Shares.
(c) In the event Merger Subsidiary that Acquisition Sub wishes to exercise the Top-Up Option, Merger Subsidiary Parent shall deliver send to the Company a written notice (the “Top-Up Notice”) setting forth specifying (i) the number of Top-Up Shares that Merger Subsidiary Option Company Shares, (ii) the aggregate purchase price therefor, (iii) the manner in which Parent or Acquisition Sub intends to pay the applicable exercise price, and (iv) the place, time and date for the closing of the purchase and sale pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such “Top-Up Closing”). If, as of the Top-Up Closing, Parent and Acquisition Sub would collectively own Company Shares by Merger Subsidiary is to take place. The constituting 90% or more of the then outstanding Company Shares, the Top-Up Notice also shall also include an undertaking signed by Parent and Merger Subsidiary Acquisition Sub that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary Acquisition Sub intends to (and Merger Subsidiary Acquisition Sub shall, and Parent shall cause Merger Subsidiary Acquisition Sub to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law the DGCL as contemplated by in Section 9.055.3. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary or Acquisition Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Option Company Shares, and the Company shall cause to be issued to Merger Subsidiary Parent or Acquisition Sub (as the case may be) a certificate representing the Top-Up Option Company Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the shall cause such Top-Up Option Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented Shares to be created by book-entryentry transfer to Acquisition Sub. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Option Company Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.018.11, 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 Delaware Law the DGCL as contemplated by in Section 9.05 5.3 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand Acquisition Sub acknowledge that the Company Shares that Acquisition Sub may acquire upon exercise of the Top-Up Shares Option will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsAcquisition Sub hereby represents and warrants to the Company that Acquisition Sub is, warrants and will be, upon the purchase of the Top-Up Option Company Shares, an “accredited investor,” as defined in Rule 501 of Regulation D under the Securities Act. Acquisition Sub agrees that the Top-Up Option is being, and the Top-Up Option Company Shares to be acquired upon exercise of the Top-Up Option are being and will be, be acquired by Merger Subsidiary 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 1933 Securities Act). Any certificates evidencing representing Top-Up Option Company Shares may include any legends required by applicable securities laws.. SECTION 2. THE MERGER; EFFECTIVE TIME
Appears in 1 contract
Samples: Merger Agreement (Acer Inc)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), to purchase from exercisable only upon the Company, up terms and subject to the conditions set forth herein, to purchase, at a price per share equal to the Offer Price, an aggregate number of authorized newly issued shares of Common Stock (the “Top-Up Option Shares”) equal to the lesser of (i) one (1) share less than twenty percent (20%) of the shares of Common Stock issued and unissued Shares, outstanding immediately prior to the exercise of the Top-Up Option and (ii) the lowest number of Shares shares of Common Stock that, when added to the number of Shares shares of Common Stock then owned by Merger Subsidiary Parent, Purchaser and their respective Subsidiaries and affiliates at the time of exercise such exercise, shall constitute ten thousand (10,000) shares more than ninety percent (90%) of the Common Stock then outstanding on a fully diluted basis (after giving effect to the issuance of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Option Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is ; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable unless, immediately after such exercise and the issuance of shares of Common Stock pursuant thereto, the Short Form Threshold would be reached (i) after giving effect to the extent the number of Shares issuable upon exercise issuance of the Top-Up Option would exceed Shares); provided, further, that in no event shall the Top-Up Option be exercisable for a number of shares of Common Stock in excess of the Company’s total authorized but unissued and unreserved Shares, shares of Common Stock. The Purchaser may pay the Company the aggregate price required to be paid for the Top-Up Option Shares either (i) entirely in cash or (ii) unless immediately following at the exercise Purchaser’s election, by (x) paying in cash an amount equal to not less than the aggregate par value of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent Option Shares and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iiiy) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the aggregate purchase price, or price pursuant to the Top-Up Option less the amount paid in cash pursuant to the preceding clause (Cx) any combination of the foregoing(a “Promissory Note”). Any such promissory note Promissory Note shall be full recourse against Parent and the Purchaser and (i) shall bear interest at the rate of six percent (6% %) per annum, (ii) shall mature on the first (1st) anniversary of the date of execution and delivery of such promissory note Promissory Note and (iii) may be prepaid prepaid, in whole or in part, without premium or penalty; provided.
(b) Provided that no applicable Law, howeverorder, that upon any Event injunction or other legal impediment shall prohibit the exercise of Defaultthe Top-Up Option or the issuance of the Top-Up Option Shares pursuant thereto, all principal or otherwise make such exercise or issuance illegal, Purchaser may exercise (subject to the restrictions contained in Section 2.4(a)) the Top-Up Option on one or more occasions, in whole or in part, only after the Acceptance Time and accrued interest thereunder shall immediately become due prior to the earlier to occur of (i) the Effective Time and payable(ii) the termination of this Agreement in accordance with its terms.
(c) In the event Merger Subsidiary Each time that Purchaser wishes to exercise the Top-Up Option, Merger Subsidiary Purchaser shall deliver send to the Company a written notice (the a “Top-Up Exercise Notice”) setting forth (i) specifying the number denominations of the certificate or certificates evidencing the Top-Up Option Shares that Merger Subsidiary intends 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 and (ii) the place and time at which the closing of the purchase of such “Top-Up Shares by Merger Subsidiary is to take placeClosing”). The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary thatCompany shall, as promptly as practicable following such exercise after receipt of the Top-Up OptionExercise Notice, Merger Subsidiary intends deliver a written notice to Purchaser confirming the number of Top-Up Option Shares and the aggregate purchase price therefor (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05“Top-Up Notice Receipt”). At the closing of the purchase of the Top-Up SharesClosing, Parent and Merger Subsidiary 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 SharesOption Shares as specified in the Top-Up Notice Receipt, by delivery of cash or a combination of cash and the Promissory Note as contemplated by Section 2.4(a), and the Company shall cause to be issued and delivered to Merger Subsidiary Purchaser a certificate or certificates representing the Top-Up Option Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common StockShares, the applicable number of nonBook-certificated shares of Company Common Stock represented Entry Shares. Such certificates or Book-Entry Shares may include any legends that are required by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Sharesfederal or state securities Laws.
(d) Parent and Merger Subsidiary understand the Purchaser acknowledge that the Top-Up Option Shares will which the Purchaser may acquire upon exercise of the Top-Up Option shall not be registered under the 1933 Securities Act and will shall be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsthe Purchaser represent and warrant to the Company that the Purchaser is, warrants and or shall be upon any purchase of Top-Up Option Shares, an “accredited investor”, as defined in Rule 501 of Regulation D under the Securities Act. The Purchaser agrees that the Top-Up Option is beingOption, and the Top-Up Option Shares will beto be acquired upon exercise of the Top-Up Option, if any, are being and shall be acquired by Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws).
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(bSection 1.4(b) and 1.04(c)Section 1.4(c) hereof, the Company grants to Parent and Merger Subsidiary Sub an irrevocable option, for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”), to purchase from the Company, Company up to the number of authorized and unissued Shares, shares of Company Common Stock equal to the number of Shares shares of Company Common Stock that, when added to the number of Shares shares of Company Common Stock owned by Merger Subsidiary Sub and/or Parent at the time of exercise of the Top-Up Option, constitutes one Share share of Company Common Stock more than 90% of the Shares then outstanding shares of Company Common Stock, that would be outstanding immediately after the issuance of all Shares shares of Company Common Stock subject to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis Option (the Shares such shares of Company Common Stock subject to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Parent or Merger Subsidiary in accordance with Section 1.04(c)Sub, in whole or in part, only once, at any time during the 10 Business Day business day period following the Acceptance Date, or if any the Subsequent Offering Period is providedmade available, during the 10 Business Day business day period following the expiration date of such the Subsequent Offering Period, Period and only if Parent and/or Merger Subsidiary Sub shall own as of such time less than 90% of the outstanding Sharesshares of Company Common Stock on a fully diluted basis; provided provided, however, that notwithstanding anything in this Agreement to the contrary, contrary (i) the Top-Up Option shall not be exercisable (i) to the extent that (A) 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, (B) the number of Shares shares of Company Common Stock issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Sharesshares of Company Common Stock or (C) any provision of applicable Laws or any judgment, (ii) unless immediately following injunction, order or decree of any Governmental Authority would prohibit, or require any action, consent, approval, authorization or permit of, action by, or filing with or notification to, any Governmental Authority or the Company’s shareholders in connection with the exercise of the Top-Up Option, Option or the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise delivery of the Top-Up OptionShares in respect of such exercise, which action, consent, approval, authorization or (iii) unless the Minimum Condition shall have permit, action, filing or notification has not theretofore been satisfiedobtained or made, as applicable. The aggregate purchase price payable for the Top-Up Shares shares of Company Common Stock being purchased by Parent or Merger Subsidiary Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares shares by the Offer Price. Such purchase price may be paid by Parent or Merger Sub, at its election, either entirely in cash or by paying in cash an amount equal to not less than the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) aggregate par value of such shares and by executing and delivering to the Company a promissory note having a principal amount equal to the balance of such purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 63% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Parent or Merger Subsidiary Sub wishes to exercise the Top-Up Option, Parent or Merger Subsidiary Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Parent or Merger Subsidiary Sub intends to purchase pursuant to the Top-Up Option Option, (ii) the manner in which Parent or Merger Sub intends to pay the Table of Contents applicable exercise price and (iiiii) the place and time at which the closing of the purchase of such Top-Up Shares by Parent or Merger Subsidiary Sub is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary Sub that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary Sub intends to (and Merger Subsidiary Sub shall, and Parent shall cause Merger Subsidiary Sub to, as promptly as practicable after such exercise) consummate the Merger in accordance with Article 12, Section 253 13.1-719 of Delaware Law the VSCA as contemplated by Section 9.056.16. At the closing of the purchase of the Top-Up Shares, Parent and or Merger Subsidiary Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Parent or Merger Subsidiary Sub (as the case may be) a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entryShares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.019.10, 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 Article 12, Section 253 13.1-719 of Delaware Law the VSCA as contemplated by Section 9.05 6.16 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary Sub understand that the Top-Up Shares will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary Sub represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Parent or Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(bSection 1.4(b) and 1.04(cSection 1.4(c), the Company Seller hereby grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “"Top-Up Option”), ") to purchase from Seller, at a price per share equal to the CompanyOffer Price, up to the number of authorized and unissued Shares, Shares equal to the number of Shares that, when added to the number of Shares owned by Merger Subsidiary Purchaser as of immediately prior to the exercise of the Top-Up Option, constitutes one share more than 90% of the number of Shares outstanding immediately after exercise of such option (the "Top-Up Shares"); provided, that the Top-Up Option may only be exercised (i) to the extent the aggregate number of Top-Up Shares does not exceed the aggregate number of authorized Shares at the time of exercise of the Top-Up OptionOption which are not then outstanding, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued and (ii) if Purchaser irrevocably commits upon exercise acquisition of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of effect the Top-Up Option, the “Top-Up Shares”).
(b) merger pursuant to Section 2.7. The Top-Up Option may shall be exercised by Merger Subsidiary in accordance with Section 1.04(c), exercisable once in whole and not in part on or in part, only once, at any time during prior to the 10 fifth (5th) Business Day period following after the Acceptance DateTime, or if any Subsequent Offering Period subsequent offering period is provided, during the 10 Business five (5)-Business Day period following the expiration date of such Subsequent Offering Periodsubsequent offering period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything Parent or Purchaser has accepted for payment all shares of Seller Common Stock validly tendered in the Offer and not withdrawn. The Top-Up Option shall terminate upon the earlier to occur of (a) the Effective Time and (b) the termination of this Agreement to the contrary, in accordance with its terms.
(b) The aggregate purchase price for the Top-Up Option shall not so exercised may be exercisable paid by Purchaser, at its election, either (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, in cash or (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company Seller a promissory note having a principal amount equal to the purchase pricesuch payment, or (C) by any combination of the foregoingcash and such promissory note. Any such Such promissory note shall bear simple interest at the rate of 63% per annum, shall mature on the first anniversary of the date of execution and delivery of such promissory note and thereof, may be prepaid prepaid, in whole or in part, at any time without premium or penalty; provided, however, and shall have no other material terms. The Seller Board has determined that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payablesuch consideration for the Top-Up Shares is adequate.
(c) In the event Merger Subsidiary that Purchaser wishes to exercise the Top-Up Option, Merger Subsidiary it shall deliver to the Company Seller a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary owned by Parent and Purchaser at the time of such notice, (ii) the manner in which it intends to pay the applicable purchase pursuant to the Top-Up Option price and (iiiii) the place and time at which the closing of the purchase of such the Top-Up Shares by Merger Subsidiary Purchaser is to take place. The Seller shall, as soon as practicable following receipt of such notice (but in any event within one (1) Business Day), deliver written notice to Parent and Purchaser specifying, based on the information provided by Purchaser in its notice, the number of Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05Shares. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary Purchaser shall cause to be delivered to the Company Seller the consideration required to be delivered in exchange for the such Top-Up Shares, and the Company Seller shall cause to be issued to Merger Subsidiary Purchaser a certificate representing the Top-Up such Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company Seller does not then have certificated shares of Company Common StockShares, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up entry Shares.
(d) Parent and Merger Subsidiary understand Purchaser acknowledge that the Top-Up Shares that Purchaser may acquire upon exercise of the Top-Up Option will not be registered under the 1933 Securities Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsPurchaser represent and warrant to Seller that Purchaser is, warrants or will be upon the purchase of the Top-Up Shares, an "Accredited Investor" within the meaning of Rule 501 of Regulation D under the Securities Act. Parent and agrees Purchaser represent to Seller that the Top-Up Option is being, and the Top-Up Shares are being and will be, be acquired by Merger Subsidiary 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 1933 ActSecurities Act and they acknowledge that such shares may not be transferred without registration under the Securities Act or an exemption therefrom. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.ARTICLE II
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(b2.04(b) and 1.04(c2.04(c), the Company grants to Merger Subsidiary Subsidiary, an irrevocable option, for so long as this Agreement has not been terminated pursuant to the provisions hereof (the “Top-Up Option”), to purchase from the Company, up to the number of authorized and unissued Shares, Shares equal to the number of Shares that, when added to the number of Shares owned by Merger Subsidiary at the time of the exercise of the Top-Up Option, constitutes at least one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis or, at Parent’s election, on a primary basis at the Effective Time (the such Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 ten Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 ten Business Day period following the expiration date of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the Shares outstanding Shareson a fully-diluted basis; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent that the number of Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Top-Up Shares by an amount equal to the price paid for each Share in the OfferOffer Price, without interest. Such purchase price shall may be payable paid by Merger Subsidiary Subsidiary, at its election, either (A) entirely in cash, cash or (B) by executing and delivering to the Company a promissory note having a principal amount equal to the amount of such purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 63% 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; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option Option, (ii) the manner in which Merger Subsidiary intends to pay the applicable purchase price and (iiiii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.053.01(b). At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entryShares. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 3.01(b) as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may shall include any legends required by applicable securities laws.
Appears in 1 contract
Samples: Merger Agreement (Avocent Corp)
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), ) to purchase from the Company, up Company an aggregate number of newly-issued shares of Company Common Stock equal to the lesser of (i) the number of authorized and unissued Shares, the number shares of Shares Company Common Stock that, when added to the number of Shares shares of Company Common Stock owned by Parent and Merger Subsidiary Sub at the time of exercise of the Top-Up Option, constitutes one Share share more than 90% the number of shares of Company Common Stock necessary for Merger Sub to be merged into the Company pursuant to Section 253 of the Shares that would be outstanding immediately DGCL (after giving effect to the issuance of all Shares shares pursuant to be issued upon the exercise of the Top-Up Option), calculated on a fully-diluted basis and (ii) the Shares aggregate number of shares of Company Common Stock that the Company is authorized to issue under the Company Certificate of Incorporation but that are not issued and outstanding (and are not subscribed for or otherwise committed to be issued upon issued) at the time of exercise of the Top-Up Option. Without the prior written consent of the Company, the “right to exercise the Top-Up Shares”)Option shall 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 attempted assignment in violation of this Section 2.2(a) shall be null and void.
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c)Sub only once, in whole or but not in part, only once, at any time during the 10 Business Day period following at or after the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date Time and prior to termination of such Subsequent Offering Periodthis Agreement in accordance with its terms, and only if Parent and Merger Subsidiary shall own as of such time less than 90% Sub irrevocably commit upon purchase of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number shares of Shares issuable Company Common Stock upon exercise of the Top-Up Option would exceed to immediately effect the number of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject pursuant to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfiedSection 7.3. The aggregate purchase price payable for the Top-Up Shares shares of Company Common Stock being purchased by Merger Subsidiary Sub pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares shares by the Offer Price. Such purchase price may be paid by Merger Sub, at its election: (x) (i) in cash, by wire transfer of same-day funds; (y) by (A) paying in cash, by wire transfer of same-day funds, an amount equal to not less than the price paid for each Share in aggregate par value of the Offer, without interest. Such purchase price shall be payable shares of Company Common Stock being purchased by Merger Subsidiary (A) in cash, Sub pursuant to the Top-Up Option and (B) by executing and delivering to the Company a promissory note having a principal amount equal to the aggregate purchase price, price pursuant to the Top-Up Option less the amount paid in cash pursuant to the preceding clause (A); or (Cz) any combination of the foregoingconsideration described in clauses (x) or (y). Any such promissory note shall bear be on terms as provided by Merger Sub, which terms shall include the following: (i) the principal amount and accrued interest under the promissory note shall be payable upon the demand of the Company, (ii) the unpaid principal amount of the promissory note will accrue simple interest at the per annum rate of 6% per annum3.0%, shall mature on (iii) the first anniversary of the date of execution and delivery of such promissory note and may be prepaid in whole or in part at any time and from time to time, without premium or penalty; provided, however, that upon any Event of Default, all penalty or prior notice and (iv) the unpaid principal amount and accrued interest thereunder under the promissory note shall immediately become due and payablepayable in the event that (x) Merger 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) 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. The promissory note shall have no other material terms. The 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 2.2 the Top-Up Option Shares shall be validly issued, fully paid and non-assessable.
(c) In the event Merger Subsidiary Sub wishes to exercise the Top-Up Option, Merger Subsidiary Sub shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) its calculation of the number of Top-Up Shares shares of Company Common Stock that Merger Subsidiary Sub intends to purchase pursuant to the Top-Up Option Option, (ii) the manner in which Parent or Merger Sub intends to pay the applicable exercise price, and (iiiii) the place and time at which the closing of the purchase of such Top-Up Shares shares of Company Common Stock by Merger Subsidiary Sub is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Sharessuch shares of Company Common Stock, Parent and Merger Subsidiary Sub shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Sharessuch shares, and the Company shall cause to be issued to Merger Subsidiary Sub (as the case may be) a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Sharesshares.
(d) Parent and Merger Subsidiary understand Sub acknowledge that the shares of Company Common Stock that Merger Sub may acquire upon exercise of the Top-Up Shares Option (“Top-Up Option Shares”) will not be registered under the 1933 Act Securities Act, and will be issued in reliance upon an applicable exemption thereunder from registration under the Securities Act for transactions not involving a public offering. Each of Parent and Merger Subsidiary representsSub hereby represent and warrant to the Company that Merger Sub is, warrants and will be upon the purchase of the Top-Up Option Shares, an “accredited investor,” as defined in Rule 501 of Regulation D under the Securities Act. Merger 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 Merger Subsidiary 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 1933 Securities Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws).
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Sub an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), exercisable only on the terms and conditions set forth in this Section 2.3, to purchase from the Company, up at a price per share equal to the Offer Price that number of authorized newly issued, fully paid and unissued nonassessable Shares (the “Top-Up Shares, ”) equal to the lesser of (i) the lowest number of Shares that, when added to the number of Shares owned by Parent, Merger Subsidiary Sub and any of their respective Subsidiaries at the time of exercise of the Top-Up Option, constitutes shall constitute one Share share more than 90% of the outstanding Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated Shares on a fully-diluted basis (which assumes conversion or exercise of all derivative securities regardless of the conversion or exercise price, the vesting schedule or other terms and conditions thereof) and (ii) the aggregate number of authorized but unissued and unreserved Shares (including as authorized and unissued Shares, for purposes hereof, any Shares held in the treasury of the Company). Upon Parent’s request, the Company shall use its reasonable best efforts to be cause its transfer agent to certify in writing to Parent the number of Shares issued upon and outstanding as of immediately prior to the exercise of the Top-Up Option, Option and after giving effect to the “issuance of the Top-Up Shares”). The Top-Up Option shall be exercisable only once, in whole but not in part, at any time following the 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.
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during In the 10 Business Day period following event the Acceptance Date, or if any Subsequent Offering Period Minimum Tender Condition is provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Period, satisfied and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable (i) to the extent the number of Shares issuable upon exercise of the Top-Up Option would exceed result in Merger Sub and Parent collectively owning one share more than 90% of the total Shares on a fully diluted basis (assuming conversion or exercise of all derivative securities regardless of the conversion or exercise price, the vesting schedule or other terms and conditions thereof) then outstanding, then Merger Sub shall be obligated to exercise the Top-Up Option and shall do so on the same day on which Merger Sub accepts for payment Shares tendered pursuant to the Offer; provided that in no event shall the Top-Up Option be exercised (i) for a number of Shares in excess of the number of authorized but unissued and unreserved Shares (including as authorized and unissued Shares, for purposes hereof, any Shares held in the treasury of the Company) or (ii) unless if any provision of applicable Law shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Shares. Upon exercise of the Top-Up Option in accordance with the immediately following preceding sentence, Merger Sub shall promptly on such date of exercise deliver to the Company written notice (the “Top-Up Notice”), specifying the aggregate number of Shares owned by Parent, Merger Sub and any of their respective Subsidiaries at the time of such notice (giving effect to the Offer Closing). Upon request of Parent, the Company shall use its reasonable best efforts to cause its transfer agent to certify in writing to Merger Sub the number of Shares as of immediately prior to the exercise of the Top-Up Option. At the closing of the purchase of Top- Up Shares, which shall take place at the location of the Closing specified in Section 2.6 and shall take place simultaneously with the Offer Closing, the number of shares of the Company Common Stock owned in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable owed by Merger Sub to the Company for the Top-Up Shares being purchased shall be paid to the Company by Merger Subsidiary pursuant (A) paying 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 shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, and (B) by executing and delivering issuing to the Company a promissory note having a principal amount equal to the aggregate purchase price, or price pursuant to the Top-Up Option less the amount paid in cash pursuant to the preceding clause (CA) any combination of (the foregoing“Promissory Note”). Any such promissory note The Promissory Note (i) shall bear simple interest at the a rate of 6% three percent (3%) per annum, payable in arrears at maturity, (ii) shall mature on the first anniversary of the date of execution and delivery of such promissory note and the Promissory Note, (iii) shall be full recourse to Merger Sub, (iv) may be prepaid prepaid, at any time, in whole or in part, without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option penalty and (iiv) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05have no other material terms. At the closing of the purchase of the Top-Up SharesShares or as promptly as practicable thereafter, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary Sub a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entryentry Shares. Such certificates or book-entry Shares may include any legends that are required by federal or state securities Laws. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.019.7, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 1 contract
Top-Up Option. (a) Subject to Sections 1.04(b) and 1.04(c), the The Company hereby grants to Merger Subsidiary Purchaser an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), to purchase from exercisable only upon the Company, up terms and subject to the conditions set forth herein, to purchase, at a price per share equal to the Offer Price, an aggregate number of authorized newly issued shares of Common Stock (the “Top-Up Option Shares”) equal to the lesser of (i) one (1) share less than twenty percent (20%) of the shares of Common Stock issued and unissued Shares, outstanding immediately prior to the exercise of the Top-Up Option and (ii) the lowest number of Shares shares of Common Stock that, when added to the number of Shares shares of Common Stock then owned by Merger Subsidiary Parent, Purchaser and their respective Subsidiaries and affiliates at the time of exercise such exercise, shall constitute ten thousand (10,000) shares more than ninety percent (90%) of the Common Stock then outstanding on a fully diluted basis (after giving effect to the issuance of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Option Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is ; provided, during the 10 Business Day period following the expiration date of such Subsequent Offering Periodhowever, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement to the contrary, the Top-Up Option shall not be exercisable unless, immediately after such exercise and the issuance of shares of Common Stock pursuant thereto, the Short Form Threshold would be reached (i) after giving effect to the extent the number of Shares issuable upon exercise issuance of the Top-Up Option would exceed Shares); provided, further, that in no event shall the Top-Up Option be exercisable for a number of shares of Common Stock in excess of the Company’s total authorized but unissued and unreserved Shares, shares of Common Stock. The Purchaser may pay the Company the aggregate price required to be paid for the Top-Up Option Shares either (i) entirely in cash or (ii) unless immediately following at the exercise Purchaser’s election, by (x) paying in cash an amount equal to not less than the aggregate par value of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate by Parent Option Shares and Merger Subsidiary constitutes at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Option, or (iiiy) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the aggregate purchase price, or price pursuant to the Top-Up Option less the amount paid in cash pursuant to the preceding clause (Cx) any combination of the foregoing(a “Promissory Note”). Any such promissory note Promissory Note shall be full recourse against Parent and the Purchaser and (i) shall bear interest at the rate of six percent (6% %) per annum, (ii) shall mature on the first (1st) anniversary of the date of execution and delivery of such promissory note Promissory Note and (iii) may be prepaid prepaid, in whole or in part, without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to exercise the Top-Up Option, Merger Subsidiary shall deliver to the Company a notice (the “Top-Up Notice”) setting forth (i) the number of Top-Up Shares that Merger Subsidiary intends to purchase pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take place. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise of the Top-Up Option, Merger Subsidiary intends to (and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 1 contract
Samples: Merger Agreement (Johnson & Johnson)
Top-Up Option. (a) Subject to Sections 1.04(b) Upon the recommendation of the board of directors of Barrier, Xxxxxxx has granted us an assignable and 1.04(c), the Company grants to Merger Subsidiary an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof irrevocable option (the “Top-Up Option”), ) to purchase from Barrier, at a price per share equal to the CompanyOffer Price, up to the number of authorized and unissued newly-issued Shares (the “Top-Up Option Shares, ”) equal to the lesser of (i) the number of Shares that, when added to the number of Shares owned by Merger Subsidiary Parent or Purchaser at the time of exercise of the Top-Up Option, constitutes one (1) Share more than 90% of the Shares that would be then-outstanding immediately on a fully diluted basis (after giving effect to the issuance of all the Top-Up Option Shares) or (ii) the aggregate number of Shares that Barrier is authorized to issue under its restated certificate of incorporation, but that are not issued and outstanding (and are not subscribed for or otherwise committed to be issued upon issued) at the time of exercise of the Top-Up Option. The Top-Up Option is exercisable only once, calculated on a fully-diluted basis (at such time as the Purchaser owns at least 80% of the Shares to be issued upon then outstanding. To exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), in whole Purchaser or in part, only once, at any time during the 10 Business Day period following the Acceptance Date, or if any Subsequent Offering Period is provided, during the 10 Business Day period following the expiration date Parent must give notice of such Subsequent Offering Period, and only if Merger Subsidiary shall own as of such time less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement their election to the contrary, exercise the Top-Up Option shall not be exercisable (i) prior to the extent tenth (10) business day after the number of Shares issuable upon exercise later of the Top-Up Option would exceed Expiration Date or the number expiration date of authorized but unissued and unreserved Shares, (ii) unless immediately following the exercise of the Top-Up Option, the number of shares of the Company Common Stock owned in the aggregate any subsequent offering. The purchase price may be paid by Parent and Merger Subsidiary constitutes or Purchaser, at least one share more than 90% of the number of shares of Company Common Stock that would be outstanding immediately after the issuance of all shares of Company Common Stock subject to such exercise of the Top-Up Optionits election, either entirely in cash or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the Top-Up Shares being purchased by Merger Subsidiary pursuant to the Top-Up Option shall be determined by multiplying the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary (A) in cash, (B) by executing and delivering to the Company Barrier a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory 23 Table of Contents note shall will bear interest at the rate of 63% per annum, shall and will mature on not later than the first fifth anniversary of the date of execution and delivery of such promissory note and may be prepaid without premium or penalty; provided, however, that upon any Event of Default, all principal and accrued interest thereunder shall immediately become due and payable.
(c) In the event Merger Subsidiary wishes to . Parent or Purchaser may exercise the Top-Up Option, Merger Subsidiary shall deliver in whole or in part, at any time at or after the Acceptance Time and prior to the Company a notice earlier of (x) the “Effective Time and (y) the termination of the Merger Agreement, provided, however, that the Top-Up Notice”) setting forth (i) Option is not exercisable unless, immediately after the number exercise of the Top-Up Option and the issuance of Shares pursuant thereto, Parent and Purchaser will collectively hold at least 90 percent (90%) of the Shares then outstanding (assuming the issuance of Shares pursuant to the Top-Up Option). The obligation of Barrier to issue Shares in connection with the exercise of the Top-Up Option is subject to the conditions that Merger Subsidiary intends to purchase (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 Shares in respect of such exercise; (b) the issuance of Shares pursuant to the Top-Up Option would not require approval of Barrier’s stockholders under applicable law or regulation (including, without limitation, the NASDAQ rules and regulations, including Rule 4350); and (iic) Parent or Purchaser has accepted for payment and paid for all Shares validly tendered and not withdrawn in the place and time at which the closing of the purchase of such Top-Up Shares by Merger Subsidiary is to take placeOffer. The Top-Up Notice shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such exercise Option is intended to expedite the timing of the Topcompletion of the Merger by permitting us to effect a “short-Up Option, form” merger pursuant to applicable Delaware law at a time when the approval of the Merger Subsidiary intends at a meeting of Xxxxxxx’s stockholders would be assured because our ownership would represent at least a majority of the voting power of all Shares entitled to (vote at such a meeting and Merger Subsidiary shall, and Parent shall cause Merger Subsidiary to, as promptly as practicable after such exercise) required to consummate the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase of the Top-Up Shares, Parent and Merger Subsidiary shall cause to be delivered to the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares to occur on the same day that the Top-Up Notice is deemed received by the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up SharesMerger.
(d) Parent and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is being, and the Top-Up Shares will be, acquired by Merger Subsidiary 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 1933 Act. Any certificates evidencing Top-Up Shares may include any legends required by applicable securities laws.
Appears in 1 contract
Top-Up Option. (ai) Subject to Sections 1.04(b) the terms and 1.04(c)conditions herein, the Company hereby grants to Purchaser an irrevocable, non-transferable non-assignable (except for an assignment to Merger Subsidiary an option, for so long as this Agreement has not been terminated pursuant to the provisions hereof Sub) option (the “"Top-Up Option”), ") to purchase from the Company, up to the that number of authorized shares of Common Stock (the "Top-Up Option Shares") equal to the lesser of (i) fifteen percent (15%) of the Common Stock Outstanding (assuming the issuance of the Top-Up Option Shares) and unissued Shares, (ii) the lowest number of Shares shares of Common Stock that, when added to the number of Shares shares of Common Stock collectively owned by Purchaser and Merger Subsidiary Sub and any of their respective affiliates immediately following consummation of the Offer, shall constitute at least 90% of the time Common Stock Outstanding (assuming the issuance of the Top-Up Option Shares), in either case at a purchase price per Top-Up Option Share of the higher of the Offer Price or the closing bid price of the Company Common Stock on Nasdaq on the day prior to exercise, payable in cash or a demand note bearing simple interest at a rate of 6% per annum at Purchaser's option ("Top-Up Option Consideration").
(ii) Purchaser may, at its election, exercise of the Top-Up Option, constitutes one Share more than 90% of the Shares that would be outstanding immediately after the issuance of all Shares to be issued upon exercise of the Top-Up Option, calculated on a fully-diluted basis (the Shares to be issued upon exercise of the Top-Up Option, the “Top-Up Shares”).
(b) The Top-Up Option may be exercised by Merger Subsidiary in accordance with Section 1.04(c), whether in whole or in part, only once, at any one time during after the 10 Business Day period following occurrence of a Top-Up Exercise Event and prior to the Acceptance Top-Up Termination Date. For the purposes hereof, or if any Subsequent Offering Period is provided, during a "Top-Up Exercise Event" shall occur after the 10 Business Day period following the expiration date of such Subsequent Offering PeriodMinimum Condition has been satisfied and Purchaser has accepted for payment, and only if Merger Subsidiary shall own as deposited an amount with the Paying Agent sufficient for payment pursuant to the Offer for (including, without limitation, any subsequent offering that Purchaser may elect to extend pursuant to the terms and conditions of such time this Agreement), shares of Common Stock constituting, together with shares of Common Stock owned directly or indirectly by any other affiliates of Purchaser, less than 90% of the outstanding Shares; provided that notwithstanding anything in this Agreement Common Stock Outstanding, but only to the contrary, the Top-Up Option shall not be exercisable extent (i) to the extent the number of Shares issuable upon exercise issuance of the Top-Up Option Shares pursuant thereto would exceed not require the number approval of authorized but unissued the stockholders of the Company under NASDAQ rules and unreserved Sharesregulations, or NASDAQ has granted a waiver from any such rule or regulation that is reasonably acceptable to the parties hereto, (ii) unless immediately following there is no other applicable law, rule or regulation that would require the exercise approval of the Company's stockholders for the issuance of the Top-Up OptionOption Shares, the number of or any such approval shall have been waived; (iii) there are sufficient shares of the Company Common Stock owned available for issuance under the Company's Articles of Incorporation or available in the aggregate by Parent and Merger Subsidiary constitutes at least one share more than 90% treasury of the number Company; and (iv) Purchaser has complied with all other terms of shares of Company Common Stock that would this Section 1.2 required to be outstanding immediately after the complied with prior to issuance of all shares of Company Common Stock subject to such exercise of the Top-Up OptionOption Shares. For the purposes hereof, or (iii) unless the Minimum Condition shall have been satisfied. The aggregate purchase price payable for the "Top-Up Shares being purchased by Merger Subsidiary pursuant 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 (10) Business Days after the occurrence of a Top-Up Exercise Event, unless the Top-Up Option shall be determined by multiplying has been previously exercised in accordance with the number of such Shares by an amount equal to the price paid for each Share in the Offer, without interest. Such purchase price shall be payable by Merger Subsidiary terms and conditions hereof and (AD) in cash, (B) by executing and delivering to the Company a promissory note having a principal amount equal to the purchase price, or (C) any combination of the foregoing. Any such promissory note shall bear interest at the rate of 6% 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; providedthat is ten Business Days after the Top-Up Notice Date, however, that upon any Event of Default, all principal and accrued interest thereunder unless the Top-Up Closing shall immediately become due and payablehave previously occurred.
(ciii) In the event Merger Subsidiary If Purchaser wishes to exercise the Top-Up Option, Merger Subsidiary Purchaser shall deliver send to the Company a written notice (the “a "Top-Up Exercise Notice”) setting forth (i) ," and the number date of receipt of which notice is referred to herein as the "Top-Up Shares that Merger Subsidiary intends to Notice Date"), specifying the place for the closing of the purchase and sale of shares of Common Stock pursuant to the Top-Up Option and (ii) the place and time at which the closing of the purchase of such "Top-Up Shares by Merger Subsidiary is to take place. The 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, and, if not exercising the entire option, the number of Top-Up Option Shares being acquired. 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 and the Top-Up Option Consideration therefor.
(iv) At the Top-Up Closing, subject to the terms and conditions of this Agreement, (i) the Company shall also include an undertaking signed by Parent and Merger Subsidiary that, as promptly as practicable following such deliver to Purchaser 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 OptionOption is subject to the condition that no provision of any applicable law or regulation and no judgment, Merger Subsidiary intends to (and Merger Subsidiary shallinjunction, and Parent order or decree shall cause Merger Subsidiary to, as promptly as practicable after such exercise) consummate prohibit the Merger in accordance with Section 253 of Delaware Law as contemplated by Section 9.05. At the closing of the purchase exercise of the Top-Up Shares, Parent Option or the delivery of the Top-Up Option Shares in respect of any such exercise and Merger Subsidiary (ii) Purchaser shall cause to be delivered to purchase each Top-Up Option Share from the Company the consideration required to be delivered in exchange for the Top-Up Shares, and the Option Consideration described above. Purchaser shall make payment to Company shall cause to be issued to Merger Subsidiary a certificate representing the Top-Up Shares or, at Parent’s or Merger Subsidiary’s request or otherwise if the Company does not then have certificated shares of Company Common Stock, the applicable number of non-certificated shares of Company Common Stock represented by book-entry. The parties hereto agree to use their reasonable best efforts to cause the closing of the purchase of the Top-Up Shares Option Consideration, by delivery at Purchaser's option of (A) immediately available funds by wire transfer to occur on an account designated by the same day that Company, or (B) a demand note issued by Purchaser in customary form and in a principal face amount equal to the purchase price for the Top-Up Notice is deemed received Option Shares, bearing simple interest at 6% per annum.
(v) Upon the delivery by Purchaser to the Company pursuant to Section 12.01, 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 Delaware Law as contemplated by Section 9.05 as close in time as possible to (including, to the extent possible, on the same day as) the issuance of the Top-Up Shares.
(d) Parent Exercise Notice, and Merger Subsidiary understand that the Top-Up Shares will not be registered under the 1933 Act and will be issued in reliance upon an exemption thereunder for transactions not involving a public offering. Each tender of Parent and Merger Subsidiary represents, warrants and agrees that the Top-Up Option is beingConsideration described in Section 1.2(d), and Purchaser shall be deemed to be the holder of record of the Top-Up Option Shares will beissuable upon that exercise, acquired by Merger Subsidiary for notwithstanding that the purpose stock transfer books of investment the Company shall then be closed or that certificates representing those Top-Up Option Shares shall not then be actually delivered to Purchaser or the Company shall have failed or refused to designate the bank account described in Section 1.2(d).
(vi) Purchaser shall pay all expenses, and not with a view to or for resale any and all federal, state and local stock transfer taxes and other related charges, that may be payable in connection with any distribution thereof within the meaning preparation, issuance and delivery of the 1933 Act. Any stock certificates under this Section 1.2.
(vii) Certificates evidencing Top-Up Option Shares delivered hereunder may include any legends required by applicable securities laws.legally 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
Samples: Merger Agreement (Compudyne Corp)