Company: STAA
Filing Date: 2025-09-16
Form Type: DEFM14A
Source: 0001193125-25-204396
Chunk: 72

Company: STAAR SURGICAL CO
Filing Date: 2025-09-16
Form: DEFM14A
Chunk 72
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 Wachtell Lipton participating. Representatives of Wachtell Lipton provided an overview of the directors’ fiduciary duties
under Delaware law. After discussion, Mr. Farrell provided an update on due diligence and the negotiation of the terms of the transaction, and recounted his discussions with representatives of Broadwood. He noted that Broadwood expected STAAR
to grow at a rate higher than management’s projections for STAAR’s future growth, and STAAR’s management believed that Broadwood’s outlook did not appropriately account for risks and challenges regarding, among other things,
the macroeconomic climate in China, the utilization of inventory at distributors and STAAR’s “normalized” growth rate on a go-forward basis. Several members of the Board indicated that
Broadwood had contacted them to share its views on STAAR’s value and a potential sale of STAAR. Mr. Farrell indicated that based on his discussions with Representatives of Broadwood, he believed Broadwood was unlikely to support an
acquisition of STAAR. The Board then discussed the risks of proceeding with a potential transaction if Broadwood did not support the transaction, as well as the importance of maximizing deal value and deal certainty for STAAR’s stockholders.
Following discussions, the Board concluded it was in the best interests of STAAR and its stockholders to continue negotiations with Alcon and work toward finalizing a definitive merger agreement.

Later on July 25, 2025, representatives of Gibson Dunn sent an updated draft of the merger agreement to representatives of Wachtell
Lipton. Among other things, Gibson Dunn’s draft merger agreement provided that (i) Alcon would not be required to agree or commit to any remedial actions as may be needed to obtain any

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required regulatory approvals, (ii) Alcon would be required to make a payment to STAAR equal to approximately 4% of the implied equity value of the transaction (approximately $58 million) if
the merger agreement was terminated in certain circumstances related to the failure to receive certain required regulatory approvals, (iii) non-solicitation restrictions would restrict STAAR from
soliciting or engaging in discussions with competing bidders, with a termination fee of 4% of the implied equity value of the transaction (approximately $58 million) payable by STAAR if it terminated the merger agreement to enter into a superior
proposal, and (iv) a fee that was payable by STAAR if its stockholders did not approve the merger.

On July 28, 2025,
representatives