Rights Issues. If the User holds Eligible Asset positions on the last date to trade as specified by the issuer of such shares, the User may receive an offer to acquire Eligible Assets or other Securities in respect of the issuer (“the Rights Offer”). The Rights Offer may be renounceable or non-renounceable. The User shall provide MERJ with a written instruction as to the Rights Offer within the time period specified by MERJ. If the Rights Offer is non-renounceable, the User shall be entitled to accept or reject the Rights Offer. If the Rights Offer is renounceable, the User shall be entitled to accept or reject the Rights Offer or sell the Rights Offer to a third party. If the User fails to respond to a non-renounceable Rights Offer within the period specified by MERJ, the Rights Offer may lapse and have no further force and effect. If the User fails to respond to a renounceable Rights Offer within the time period specified by MERJ, MERJ shall be entitled, but not obliged, to sell the Rights Offer to any third party for the account of the User. The proceeds from the sale of the Rights Offer will be for the account of the User less the fees payable to MERJ in terms of this Agreement.
Appears in 2 contracts
Sources: Upstream Participation Agreement, Upstream Participation Agreement