Company: SWKH
Filing Date: 2025-10-10
Form Type: 425
Source: 0001552781-25-000322
Chunk: 4

Company: SWK Holdings Corp
Filing Date: 2025-10-10
Form: 425
Chunk 4
---
 effect to the Elections, the aggregate
number of shares of Parent Common Stock to be issued by Parent in the First Merger (the “Proposed Aggregate Stock Issuance Amount”)
exceeds the Total Stock Consideration (as defined and calculated in accordance with the Merger Agreement), then the number of non-electing
shares will be reduced (without any action on the part of any holder of Company Common Stock) by converting non-electing shares into electing
shares until the Proposed Aggregate Stock Issuance Amount is equal to the Total Stock Consideration (determined on a whole-share basis).
Any such reduction in the number of non-electing shares shall be applied among all stockholders, pro rata based on the aggregate number
of non-electing shares held by each such stockholder in proportion to the total number of non-electing shares.

If, after giving effect to the Elections, the aggregate
amount of cash (excluding, for the avoidance of doubt, cash in lieu of fractional shares) to be issued by Parent in the First Merger (excluding,
for the avoidance of doubt, the Guaranteed Cash Payment (as defined in the Merger Agreement)) (the “Proposed Cash Consideration”)
exceeds the Aggregate Cash Consideration, then the number of electing shares shall be reduced (without any action on the part of any holder
of Company Common Stock) by converting electing shares into non-electing shares until the Proposed Cash Consideration is equal to the
Aggregate Cash Consideration (determined on a whole-share basis). Any such reduction in the number of electing shares shall be applied
among all stockholders, pro rata based on the aggregate number of electing shares held by each such stockholder in proportion to the total
number of electing shares.

Each award of restricted Company Common Stock granted
under the Company’s 2010 Equity Incentive Plan, as amended (“Company Restricted Stock Award”) that is outstanding and
unvested as of the Effective Time will vest in full immediately prior to the Effective Time and each share of Company Common Stock subject
to an outstanding Company Restricted Stock Award shall be accelerated and cancelled in exchange for the right to receive the Total Per
Share Consideration, subject to applicable withholding.

The Company shall prepare and mail a form of election
(each, a “Form of Election”), with the proxy statement relating to the Company Stockholders’ Meeting (as defined below)
(the “Proxy Statement”), to record holders of Company Common Stock as of the record date