Examples of Hedge Securities in a sentence
For the avoidance of doubt, any such termination shall not affect or impair any party’s obligations with respect to any Securities sold hereunder prior to the occurrence thereof or any Securities sold under any Alternative Distribution Agreement (including, in the case of any Forward Hedge Securities, the obligation to enter into the resulting Forward Contract).
Notwithstanding anything herein to the contrary, the Forward Purchaser’s obligation to use its commercially reasonable efforts to borrow all or any portion of the Forward Hedge Securities (and the Forward Seller’s obligation to use its commercially reasonable efforts to sell such portion of the Forward Hedge Securities) for any Forward hereunder shall be subject in all respects to the last paragraph of Section 3 of the Master Forward Confirmation.
The termination of the effectiveness of a Placement Notice as set forth in the prior sentence shall not affect or impair any party’s obligations with respect to any Securities sold hereunder prior to such termination or any Securities sold under any Alternative Distribution Agreement (including, in the case of any Forward Hedge Securities, the obligation to enter into the resulting Forward Contract).
Unless otherwise specified in the applicable Placement Notice (as amended by the corresponding Acceptance, if applicable), settlement for sales of Forward Hedge Securities in exchange for delivery of the related Aggregate Forward Hedge Price will occur on the date (each, a Forward Hedge Settlement Date) and in the manner agreed to by the Forward Seller and the Forward Purchaser.
For the avoidance of doubt, the obligations of the Forward Seller hereunder with respect to the offer or sale of any Forward Hedge Securities in connection with a Forward shall be subject to the related Forward Contract being effective and not having been terminated.
The Panel would likely make a declaration of unacceptable circumstances if it appeared that parties had structured their transaction to avoid progressive disclosure as the writer acquired Hedge Securities to cover the equity derivative or as the writer agreed to provide firm exposure.
The Forward Seller will provide written confirmation to the Company and the Forward Purchaser no later than the opening of the Trading Day immediately following the Trading Day on which it has made sales of Forward Hedge Securities hereunder setting forth the number of Forward Hedge Securities sold on such day, the Forward Hedge Selling Commission in respect of such Forward Hedge Securities and the corresponding Aggregate Sales Price.
However, the question of what circumstances may cause a cash settled equity derivative to confer the holder sufficient practical control of the acquisition and disposal of Hedge Securities to constitute a relevant interest has not been determined by the Panel or by the Courts.
In many cases, although a holder may be able to influence the writer’s decision whether and when to dispose of its Hedge Securities (by closing out the equity derivative), that influence may not be enough control over their disposal to give rise to a relevant interest in the Hedge Securities.
As discussed above, because of the economic incentives which an equity derivative creates for the writer of an equity derivative, the holder of a cash- settled equity derivative may have some degree of knowledge of the size, price and timing of the acquisition and disposal of any Hedge Securities held by the writer.