{"component": "clause", "props": {"groups": [{"snippet_links": [{"key": "this-warrant", "type": "clause", "offset": [23, 35]}], "size": 3, "snippet": "(a) For the purpose of this Warrant, \u201c", "samples": [{"hash": "gfSGExVBpkS", "uri": "/contracts/gfSGExVBpkS#treatment-of-warrant-upon-acquisition-of-company", "label": "Warrant Agreement (Carlsmed, Inc.)", "score": 33.8275146484, "published": true}, {"hash": "3Zy2iOUsX98", "uri": "/contracts/3Zy2iOUsX98#treatment-of-warrant-upon-acquisition-of-company", "label": "Warrant Agreement (Carlsmed, Inc.)", "score": 33.8275146484, "published": true}, {"hash": "3Fs4lkVeN5Q", "uri": "/contracts/3Fs4lkVeN5Q#treatment-of-warrant-upon-acquisition-of-company", "label": "Warrant Agreement (Carlsmed, Inc.)", "score": 33.48254776, "published": true}], "hash": "35a84ea7f40857b6065d2ca0aba16059", "id": 5}, {"snippet_links": [{"key": "the-warrants", "type": "clause", "offset": [8, 20]}, {"key": "add-the-following", "type": "clause", "offset": [41, 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"clause", "offset": [1700, 1724]}, {"key": "by-parent", "type": "clause", "offset": [1725, 1734]}, {"key": "loan-agreements", "type": "definition", "offset": [1803, 1818]}, {"key": "notwithstanding-anything-to-the-contrary", "type": "clause", "offset": [1930, 1970]}, {"key": "following-the", "type": "definition", "offset": [2057, 2070]}, {"key": "terms-and", "type": "clause", "offset": [2098, 2107]}, {"key": "conditions-of-the", "type": "clause", "offset": [2123, 2140]}, {"key": "the-consideration", "type": "clause", "offset": [2227, 2244]}, {"key": "issued-to", "type": "definition", "offset": [2251, 2260]}, {"key": "the-holder", "type": "clause", "offset": [2261, 2271]}, {"key": "in-connection-with", "type": "clause", "offset": [2290, 2308]}, {"key": "the-contribution", "type": "clause", "offset": [2589, 2605]}, {"key": "transactions-contemplated", "type": "clause", "offset": [2668, 2693]}, {"key": "payment-or-distribution", "type": "definition", "offset": [2868, 2891]}], "size": 7, "snippet": "Each of the Warrants shall be amended to add the following paragraph as a new Section 1.6(e) thereof: \u201cThe Company is a party to that certain Agreement and Plan of Merger, dated as of June 17, 2024 (the \u201cMerger Agreement\u201d), among the Company, \u2587\u2587\u2587\u2587\u2587\u2587\u2587\u2587 Holdings, LLC, a Delaware limited liability company (\u201cTopco\u201d), \u2587\u2587\u2587\u2587\u2587\u2587\u2587\u2587 Intermediate Holdings, LLC, a Delaware limited liability company and wholly owned subsidiary of Topco (\u201cParent\u201d), and \u2587\u2587\u2587\u2587\u2587\u2587\u2587\u2587 \u2587\u2587\u2587\u2587\u2587\u2587 Sub, Inc., a Delaware corporation and wholly owned subsidiary of Parent (\u201cMerger Sub\u201d), pursuant to which, on the terms thereof and subject to the conditions therein, among other matters, Merger Sub shall merge with and into the Company, with the Company surviving such merger (the \u201cMerger\u201d and the Company as the surviving corporation of the Merger, the \u201cSurviving Corporation\u201d), and Holder is a party to that certain Rollover Agreement, dated as of June 17, 2024 (the \u201cRollover Agreement\u201d), by and among Topco, Parent, and each of the lenders party to the Loan Agreement (including Holder), pursuant to which, on the terms thereof and subject to the conditions therein, among other matters, \u2587\u2587\u2587\u2587\u2587\u2587 is agreeing to, immediately prior to the Merger and subject to the subsequent consummation of the Merger, contribute certain of the loans and certain of the accrued but unpaid interest and fees under the Loan Agreement, and this Warrant, to Topco in exchange for Series A Preferred Units of Topco and Common Units of Topco (the \u201cRollover\u201d), and subsequent to the consummation of the Merger, such loans and accrued but unpaid interest and fees under the Loan Agreement, and this Warrant, shall thereafter be contributed by Topco to Parent and immediately upon receipt by Parent thereof, such loans, accrued but unpaid interest and fees under the Loan Agreements, and this Warrant shall thereafter be contributed by Parent to the Surviving Corporation (the \u201cContribution\u201d). Notwithstanding anything to the contrary in this Warrant (but subject to the subsequent consummation of the Merger immediately following the Rollover), pursuant to the terms and subject to the conditions of the Rollover Agreement, (i) Holder shall contribute this Warrant to Topco in exchange for the consideration to be issued to the Holder set forth therein in connection with the Rollover, (ii) subsequent to the consummation of the Merger, this Warrant shall thereafter be contributed by Topco to Parent and immediately upon receipt by Parent thereof, this Warrant shall thereafter be contributed by Parent to the Surviving Corporation in connection with the Contribution, and (iii) thereafter, as a result of the consummation of the transactions contemplated by the Rollover Agreement (including the Rollover and the Contribution), this Warrant shall be cancelled and retired without any conversion thereof and cease to exist and no payment or distribution will be made with respect thereto.\u201d", "samples": [{"hash": "jJxtSijUdXP", "uri": "/contracts/jJxtSijUdXP#treatment-of-warrant-upon-acquisition-of-company", "label": "Omnibus Warrant Amendment Agreement (Vapotherm Inc)", "score": 33.4668045044, "published": true}, {"hash": "4X468cRE1AC", "uri": "/contracts/4X468cRE1AC#treatment-of-warrant-upon-acquisition-of-company", "label": "Omnibus Warrant Amendment Agreement (Vapotherm Inc)", "score": 33.4668045044, "published": true}], "hash": "180b5f391723df43180f386638f0c073", "id": 2}, {"snippet_links": [{"key": "this-warrant", "type": "clause", "offset": [23, 35]}, {"key": "related-transactions", "type": "definition", "offset": [86, 106]}, {"key": "the-sale", "type": "clause", "offset": [122, 130]}, {"key": "exclusive-license", "type": "clause", "offset": [139, 156]}, {"key": "disposition-of", "type": "clause", "offset": [167, 181]}, {"key": "substantially-all-of-the-assets-of-the-company", "type": "definition", "offset": [189, 235]}, {"key": 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transactions involving: (i) the sale, lease, exclusive license, or other disposition of all or substantially all of the assets of the Company; (ii) any merger or consolidation of the Company into or with another person or entity (other than a merger or consolidation effected exclusively to change the Company\u2019s domicile), or any other corporate reorganization, in which the stockholders of the Company in their capacity as such immediately prior to such merger, consolidation or reorganization, own less than a majority of the Company\u2019s (or the surviving or successor entity\u2019s) outstanding voting power immediately after such merger, consolidation or reorganization; or (iii) any sale or other transfer by the stockholders of the Company of shares representing at least a majority of the Company\u2019s then-total outstanding combined voting power.", "samples": [{"hash": "b43kkfeQkes", "uri": "/contracts/b43kkfeQkes#treatment-of-warrant-upon-acquisition-of-company", "label": 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{"key": "closing-of-the-acquisition", "type": "clause", "offset": [1197, 1223]}, {"key": "term-of-this-warrant", "type": "definition", "offset": [1323, 1343]}, {"key": "date-of", "type": "clause", "offset": [1354, 1361]}, {"key": "announcement-of-the", "type": "clause", "offset": [1366, 1385]}, {"key": "dividend-yield", "type": "clause", "offset": [1413, 1427]}, {"key": "the-underlying-shares", "type": "clause", "offset": [1470, 1491]}, {"key": "during-the-term", "type": "clause", "offset": [1590, 1605]}, {"key": "annual-basis", "type": "definition", "offset": [1640, 1652]}, {"key": "volatility-factor", "type": "definition", "offset": [1665, 1682]}, {"key": "market-price-of-the-company", "type": "definition", "offset": [1699, 1726]}, {"key": "comprised-of", "type": "definition", "offset": [1736, 1748]}, {"key": "publicly-traded", "type": "clause", "offset": [1772, 1787]}, {"key": "national-securities-exchange", "type": "definition", "offset": [1793, 1821]}, {"key": "period-ending", "type": "definition", "offset": [1856, 1869]}, {"key": "the-day", "type": "definition", "offset": [1873, 1880]}, {"key": "prior-to-the", "type": "clause", "offset": [1881, 1893]}, {"key": "the-shares-are", "type": "definition", "offset": [1934, 1948]}, {"key": "a-non", "type": "clause", "offset": [2103, 2108]}, {"key": "public-company", "type": "clause", "offset": [2109, 2123]}, {"key": "same-or-similar", "type": "definition", "offset": [2242, 2257]}, {"key": "to-the-company", "type": "definition", "offset": [2267, 2281]}, {"key": "the-purchase-price", "type": "clause", "offset": [2327, 2345]}, {"key": "in-accordance-with", "type": "definition", "offset": [2357, 2375]}, {"key": "paid-upon", "type": "definition", "offset": [2395, 2404]}, {"key": "the-initial-closing", "type": "clause", "offset": [2405, 2424]}, {"key": "subject-to", "type": "clause", "offset": [2461, 2471]}, {"key": "closing-contingencies", "type": "clause", "offset": [2493, 2514]}, {"key": "removal-of", "type": "clause", "offset": [2808, 2818]}, {"key": "value-of-the-company", "type": "definition", "offset": [2970, 2990]}, {"key": "without-limitation", "type": "clause", "offset": [3119, 3137]}, {"key": "escrowed-consideration", "type": "clause", "offset": [3170, 3192]}, {"key": "paid-in-full", "type": "definition", "offset": [3203, 3215]}, {"key": "to-holder", "type": "definition", "offset": [3216, 3225]}], "size": 17, "snippet": "Upon the closing of any Acquisition, without limiting or prejudicing Holder\u2019s right to convert this Warrant under Section 1.3 or exercise its \u201cput\u201d rights under Section 1.8 (in each case with respect to the Warrant Stock that may then be converted or put) the surviving entity shall, as a condition to the Acquisition, either (i) assume the obligations under this Warrant, then this Warrant shall be convertible into the same securities as would be payable for the shares of Warrant Stock issuable upon conversion of the unconverted portion of this Warrant as if such shares of Warrant Stock were outstanding on the record date for the Acquisition (and the Exchange Price and/or number of shares of Warrant Stock shall be adjusted accordingly); or (ii) the Company or other surviving entity in such Acquisition shall, upon initial closing of such Acquisition purchase this Warrant at its \u201cFair Value\u201d (the \u201cPurchase Price\u201d). For purposes hereof, \u201cFair Value\u201d means that value determined by the parties using a Black-Scholes Option-Pricing Model (the \u201cBlack-Scholes Calculation\u201d) with the following assumptions: (A) a risk-free interest rate equal to the risk-free interest rate at the time of the closing of the Acquisition (or as close thereto as practicable), (B) a contractual life of the Warrant equal to the remaining term of this Warrant as of the date of the announcement of the Acquisition, (C) an annual dividend yield equal to dividends payable or declared on the underlying shares of Warrant Stock (including securities into which the shares of Warrant Stock may be convertible) during the term of this Warrant (calculated on an annual basis), and (D) a volatility factor of the expected market price of the Company\u2019s Shares comprised of: (1) if the Company is publicly traded on a national securities exchange, its volatility over the one year period ending on the day prior to the announcement of the Acquisition, (2) if the Shares are traded over-the-counter, its volatility over the one year period ending on the day prior to the announcement of the Acquisition, or (3) if the Company is a non-public company, the volatility, over the one year period prior to the Acquisition, of an average of publicly-traded companies in the same or similar industry to the Company with such companies having similar revenues. The Purchase Price determined in accordance with the above shall be paid upon the initial closing of the Acquisition and shall not be subject to any post-Acquisition closing contingencies or adjustments; provided, however, the parties may take such post-Acquisition closing contingencies or adjustments into account in determining the Purchase Price, and if the parties take any post-Acquisition closing contingencies or adjustments into account, then upon the partial or complete removal of those post-Acquisition closing contingencies or adjustments, a new Black-Scholes Calculation would be made using all of the same inputs except for the value of the Company\u2019s Shares (as determined under subclause (D)), and any increase in Fair Value (and, correspondingly, Purchase Price), including, without limitation, as a result of any earn-out or escrowed consideration, would be paid in full to Holder immediately after those post-Acquisition closing contingencies or adjustments can be determined or achieved.", "samples": [{"hash": "ixFKA2EBAQ9", "uri": "/contracts/ixFKA2EBAQ9#treatment-of-warrant-upon-acquisition-of-company", "label": "Warrant Agreement (Sonic Foundry Inc)", "score": 29.3668727875, "published": true}, {"hash": "hSkv1L9gzDY", "uri": "/contracts/hSkv1L9gzDY#treatment-of-warrant-upon-acquisition-of-company", "label": "Warrant Agreement (Sonic Foundry Inc)", "score": 26.3634490967, "published": true}, {"hash": "fknk86pzJw6", "uri": "/contracts/fknk86pzJw6#treatment-of-warrant-upon-acquisition-of-company", "label": "Warrant Agreement (Sonic Foundry Inc)", "score": 26.3634490967, "published": true}], "hash": "3ce268fbe03413f277905875c4ac81fa", "id": 1}, {"snippet_links": [], "size": 4, "snippet": "(a) Acquisition. \u201c", "samples": [{"hash": "4rNgUsiCII0", "uri": "/contracts/4rNgUsiCII0#treatment-of-warrant-upon-acquisition-of-company", "label": "Note Purchase Agreement (Gloo Holdings, Inc.)", "score": 36.7919235229, "published": true}, {"hash": "7K3mgRJUVyS", 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221]}, {"key": "effective-immediately", "type": "clause", "offset": [325, 346]}, {"key": "prior-to-the", "type": "clause", "offset": [347, 359]}, {"key": "consummation-of", "type": "clause", "offset": [360, 375]}, {"key": "the-company-shall", "type": "clause", "offset": [515, 532]}, {"key": "notice-of-an", "type": "clause", "offset": [560, 572]}, {"key": "in-no-event-shall", "type": "clause", "offset": [589, 606]}, {"key": "business-days", "type": "definition", "offset": [649, 662]}, {"key": "other-acquisitions", "type": "clause", "offset": [671, 689]}, {"key": "including-without-limitation", "type": "clause", "offset": [691, 719]}, {"key": "the-consideration", "type": "clause", "offset": [727, 744]}, {"key": "other-consideration", "type": "clause", "offset": [767, 786]}, {"key": "the-surviving-entity", "type": "clause", "offset": [829, 849]}, {"key": "the-obligations-of-the-company", "type": "clause", "offset": [947, 977]}, {"key": "to-the-extent", "type": "clause", "offset": [1018, 1031]}, {"key": "same-securities", "type": "clause", "offset": [1100, 1115]}, {"key": "shares-issuable", "type": "clause", "offset": [1156, 1171]}, {"key": "issued-shares", "type": "definition", "offset": [1260, 1273]}, {"key": "record-date", "type": "definition", "offset": [1281, 1292]}, {"key": "the-acquisition", "type": "clause", "offset": [1297, 1312]}, {"key": "warrant-price", "type": "clause", "offset": [1322, 1335]}, {"key": "number-of-warrant-shares", "type": "clause", "offset": [1343, 1367]}], "size": 3, "snippet": "Without prejudice to Holder\u2019s right to convert this Warrant at any time at its option, upon the closing of any Acquisition in which the sole consideration is cash or Marketable Securities or a combination of the foregoing, Holder shall (at its sole option) either (i) convert this Warrant, and such conversion will be deemed effective immediately prior to the consummation of such Acquisition or (ii) if Holder elects not to convert this Warrant, this Warrant will expire upon the consummation of such Acquisition. The Company shall provide reasonable advance notice of an Acquisition and in no event shall such advance notice be less than ten (10) Business Days. In all other Acquisitions (including without limitation, where the consideration is part cash and part other consideration that is not (all) Marketable Securities), the surviving entity shall (unless Holder elects to convert this Warrant), as a condition to such Acquisition, assume the obligations of the Company under this Warrant mutatis mutandis and to the extent applicable, in which case this Warrant shall be exercisable for the same securities as would be deliverable for the Warrant Shares issuable upon Exchange of the unexchanged portion of this Warrant as if such Warrant Shares were issued shares on the record date for the Acquisition (and the Warrant Price and/or number of Warrant Shares shall be adjusted accordingly).", "samples": [{"hash": "gmCtnjC0F5D", "uri": "/contracts/gmCtnjC0F5D#treatment-of-warrant-upon-acquisition-of-company", "label": "Warrant Agreement (Borqs Technologies, Inc.)", "score": 29.9664611816, "published": true}, {"hash": "kDUkXNC0Bl6", "uri": 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"person-or-entity", "type": "clause", "offset": [304, 320]}, {"key": "corporate-reorganization", "type": "definition", "offset": [428, 452]}, {"key": "company-in", "type": "clause", "offset": [487, 497]}, {"key": "prior-to", "type": "clause", "offset": [533, 541]}, {"key": "a-majority", "type": "definition", "offset": [602, 612]}, {"key": "successor-entity", "type": "clause", "offset": [651, 667]}, {"key": "outstanding-voting-power", "type": "definition", "offset": [671, 695]}], "size": 2, "snippet": "For the purpose of this Warrant, \u201cAcquisition\u201d means any transaction or series of related transactions involving: (i) the sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company; or (ii) any merger or consolidation of the Company into or with another person or entity (other than a merger or consolidation effected exclusively to change the Company\u2019s domicile), or any other corporate reorganization, in which the 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"offset": [2437, 2447]}, {"key": "other-securities", "type": "definition", "offset": [2457, 2473]}, {"key": "and-the-company", "type": "clause", "offset": [2530, 2545]}, {"key": "the-holder", "type": "clause", "offset": [2568, 2578]}, {"key": "number-of-shares", "type": "clause", "offset": [2586, 2602]}, {"key": "the-representations-and-warranties", "type": "clause", "offset": [2722, 2756]}, {"key": "in-section-4", "type": "clause", "offset": [2757, 2769]}, {"key": "upon-the-closing", "type": "clause", "offset": [2810, 2826]}, {"key": "defined-above", "type": "clause", "offset": [2883, 2896]}, {"key": "obligations-of", "type": "clause", "offset": [2960, 2974]}, {"key": "securities-and-or-other-property", "type": "definition", "offset": [3051, 3083]}, {"key": "exercise-of-the", "type": "clause", "offset": [3137, 3152]}, {"key": "unexercised-portion", "type": "definition", "offset": [3153, 3172]}, {"key": "further-adjustment", "type": "clause", "offset": [3281, 3299]}, {"key": "from-time-to-time", "type": "clause", "offset": [3300, 3317]}, {"key": "the-provisions-of-this", "type": "clause", "offset": [3337, 3359]}, {"key": "the-issuer", "type": "definition", "offset": [3486, 3496]}, {"key": "subject-to-the", "type": "definition", "offset": [3513, 3527]}, {"key": "reporting-requirements", "type": "definition", "offset": [3528, 3550]}, {"key": "section-13", "type": "definition", "offset": [3554, 3564]}, {"key": "securities-exchange-act-of-1934", "type": "definition", "offset": [3589, 3620]}, {"key": "as-amended", "type": "definition", "offset": [3622, 3632]}, {"key": "information-under-the-act", "type": "clause", "offset": [3723, 3748]}, {"key": "the-exchange-act", "type": "definition", "offset": [3753, 3769]}, {"key": "the-class", "type": "definition", "offset": [3776, 3785]}, {"key": "series-of-shares", "type": "clause", "offset": [3790, 3806]}, {"key": "security-of-the", "type": "clause", "offset": [3816, 3831]}, {"key": "by-holder", "type": "clause", "offset": [3862, 3871]}, {"key": "the-acquisition", "type": "clause", "offset": [3891, 3906]}, {"key": "traded-in", "type": "definition", "offset": [3987, 3996]}, {"key": "trading-market", "type": "clause", "offset": [3997, 4011]}, {"key": "following-the-closing", "type": "clause", "offset": [4087, 4108]}], "size": 2, "snippet": "(a) For the purpose of this Warrant, \u201cAcquisition\u201d means any transaction or series of related transactions involving: (i) the sale, lease, exclusive license, or other disposition of all or substantially all of the assets of the Company (ii) any merger or consolidation of the Company into or with another person or entity (other than a merger or consolidation effected exclusively to change the Company\u2019s domicile), or any other corporate reorganization, in which the stockholders of the Company in their capacity as such immediately prior to such merger, consolidation or reorganization, own less than a majority of the Company\u2019s (or the surviving or successor entity\u2019s) outstanding voting power immediately after such merger, consolidation or reorganization; or (iii) any sale or other transfer by the stockholders of the Company of shares representing at least a majority of the Company\u2019s then-total outstanding combined voting power.\n(b) In the event of an Acquisition in which the consideration to be received by the Company\u2019s stockholders consists solely of cash, solely of Marketable Securities (as defined below) or a combination of cash and Marketable Securities (a \u201cCash/Public Acquisition\u201d), either (i) Holder shall exercise this Warrant pursuant to Section 1.1 and/or 1.2 and such exercise will be deemed effective immediately prior to and contingent upon the consummation of such Acquisition or (ii) if Holder elects not to exercise the Warrant, this Warrant will expire immediately prior to the consummation of such Acquisition.\n(c) The Company shall provide Holder with written notice of its request relating to the Cash/Public Acquisition (together with such reasonable information as Holder may reasonably require regarding the treatment of this Warrant in connection with such contemplated Cash/Public Acquisition giving rise to such notice), which is to be delivered to Holder not less than seven (7) Business Days prior to the closing of the proposed Cash/Public Acquisition. In the event the Company does not provide such notice, then if, immediately prior to the Cash/Public Acquisition, the fair market value of one Share (or other security issuable upon the exercise hereof) as determined in accordance with Section 1.3 above would be greater than the Warrant Price in effect on such date, then this Warrant shall automatically be deemed on and as of such date to be exercised pursuant to Section 1.2 above as to all Shares (or such other securities) for which it shall not previously have been exercised, and the Company shall promptly notify the Holder of the number of Shares (or such other securities) issued upon such exercise to the Holder and Holder shall be deemed to have restated each of the representations and warranties in Section 4 of the Warrant as the date thereof.\n(d) Upon the closing of any Acquisition other than a Cash/Public Acquisition defined above, the acquiring, surviving or successor entity shall assume the obligations of this Warrant, and this Warrant shall thereafter be exercisable for the same securities and/or other property as would have been paid for the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares were outstanding on and as of the closing of such Acquisition, subject to further adjustment from time to time in accordance with the provisions of this Warrant.\n(e) As used in this Warrant, \u201cMarketable Securities\u201d means securities meeting all of the following requirements: (i) the issuer thereof is then subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the \u201cExchange Act\u201d), and is then current in its filing of all required reports and other information under the Act and the Exchange Act; (ii) the class and series of shares or other security of the issuer that would be received by Holder in connection with the Acquisition were Holder to exercise this Warrant on or prior to the closing thereof is then traded in Trading Market, and (iii) Holder would be able to publicly re-sell, within six (6) months following the closing of such Acquisition, all of the issuer\u2019s shares and/or other securities that would be received by Holder in such Acquisition were Holder to exercise this Warrant in full on or prior to the closing of such Acquisition.", "samples": [{"hash": "9GvuhM0VuQk", "uri": "/contracts/9GvuhM0VuQk#treatment-of-warrant-upon-acquisition-of-company", "label": "Warrant Agreement (NephroGenex, Inc.)", "score": 22.8843250275, "published": true}], "hash": "6946818f03760e984b7de11684b980e5", "id": 9}, {"snippet_links": [{"key": "the-warrant", "type": "clause", "offset": [20, 31]}], "size": 1, "snippet": "Section 1.6.2(D) of the Warrant is hereby amended to read as follows:", "samples": [{"hash": "9TFtVt8hIzl", "uri": "/contracts/9TFtVt8hIzl#treatment-of-warrant-upon-acquisition-of-company", "label": "Warrant to Purchase Stock (Fate Therapeutics Inc)", "score": 22.6167011261, "published": true}], "hash": "3ef8aae1a05adaf254e1805eafac91d8", "id": 10}], "next_curs": "CnkSc2oVc35sYXdpbnNpZGVyY29udHJhY3RzclULEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2Ijl0cmVhdG1lbnQtb2Ytd2FycmFudC11cG9uLWFjcXVpc2l0aW9uLW9mLWNvbXBhbnkjMDAwMDAwMGEMogECZW4YACAA", "clause": {"children": [["treatment-of-warrant-at-acquisition", "Treatment of Warrant at Acquisition"], ["acquisition", "Acquisition"], ["certain-definitions", "Certain Definitions"], ["assumption-of-warrant", "Assumption of Warrant"], ["asset-sale", "Asset Sale"]], "parents": [["exercise", "Exercise"], ["number-of-shares", "Number of Shares"], ["method-of-exercise-or-conversion-payment-issuance-of-shares-issuance-of-new-warrant", "Method of Exercise or Conversion Payment Issuance of Shares Issuance of New Warrant"], ["additional-shares", "Additional Shares"], ["miscellaneous", "Miscellaneous"]], "size": 1384, "title": "Treatment of Warrant Upon Acquisition of Company", "id": "treatment-of-warrant-upon-acquisition-of-company", "related": [["treatment-of-warrant-at-acquisition", "Treatment of Warrant at Acquisition", "Treatment of Warrant at Acquisition"], ["preservation-of-purchase-rights-upon-merger-consolidation-etc", "Preservation of Purchase Rights Upon Merger, Consolidation, etc", "Preservation of Purchase Rights Upon Merger, Consolidation, etc"], ["effect-of-reorganization-etc-adjustment-of-exercise-price", "Effect of Reorganization Etc Adjustment of Exercise Price", "Effect of Reorganization Etc Adjustment of Exercise Price"], ["merger-and-consolidation-conversion", "Merger and Consolidation Conversion", "Merger and Consolidation Conversion"], ["merger-or-consolidation-conversion-reorganization", "Merger or Consolidation Conversion Reorganization", "Merger or Consolidation Conversion Reorganization"]], "related_snippets": [], "updated": "2026-07-26T05:34:57+00:00", "also_ask": ["What protections should be included to ensure warrant holders are not disadvantaged in an acquisition?", "How can the clause be negotiated to maximize value or liquidity for warrant holders upon a change of control?", "What are the most common pitfalls or ambiguities in drafting this clause that could lead to disputes?", "How does this clause compare to standard market practice or similar provisions in comparable deals?", "What are the key enforceability challenges courts have addressed regarding warrant treatment in M&A scenarios?"], "drafting_tip": "Specify the warrant's conversion or cancellation terms upon acquisition to ensure clarity; define any acceleration triggers to prevent disputes; align treatment with market standards to facilitate negotiations.", "explanation": "The \"Treatment of Warrant Upon Acquisition of Company\" clause defines how outstanding warrants are handled if the company is acquired. Typically, this clause outlines whether warrants will be assumed by the acquiring entity, converted into the right to purchase shares of the acquirer, or cashed out at a specified value. For example, if a company is bought, warrant holders may receive equivalent warrants in the new company or a cash payment based on the acquisition price. The core function of this clause is to provide certainty and fairness to warrant holders and the company by clarifying their rights and obligations in the event of a change in control."}, "json": true, "cursor": ""}}