Company: STAA
Filing Date: 2025-08-29
Form Type: PREM14A
Source: 0001193125-25-192889
Chunk: 61

Company: STAAR SURGICAL CO
Filing Date: 2025-08-29
Form: PREM14A
Chunk 61
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ell Lipton sent a
revised draft of the merger agreement to representatives of legal counsel to Alcon and a term sheet reflecting proposed terms for the contingent value rights to be issued by Alcon as merger consideration. The revised draft merger agreement provided
that (i) Alcon would be required to agree and commit to remedial actions as necessary to obtain any required regulatory approval unless those actions would have a “material adverse effect” on STAAR and its subsidiaries or Alcon

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and its controlled affiliates (with materiality measured by reference to the size of STAAR), (ii) Alcon would be required to make a payment to STAAR equal to approximately 8% of the implied
equity value of the transaction (approximately $240 million) if the merger agreement was terminated in certain circumstances related to the failure to receive certain regulatory approvals, (iii) STAAR would have the benefit of a
“window-shop” provision, pursuant to which STAAR would pay a reduced termination fee of 1% of the implied equity value (approximately $30 million) to Alcon if it terminated the merger agreement in response to a superior proposal from a
competing bidder that emerged within a specified “window shop” period after signing, and would otherwise pay a termination fee of 2.75% of the implied equity value (approximately $82.5 million) if STAAR terminated the merger agreement to
enter into a superior proposal, and (iv) that no fee was payable by STAAR if its stockholders did not approve the merger.

On
December 2, 2024, the Board held a meeting to discuss the status of the potential transaction with Alcon, with members of STAAR’s management and representatives of Wachtell Lipton participating. Mr. Frinzi provided an update on
discussions regarding the potential transaction with Alcon, and Mr. Sisitsky provided an update on key workstreams. Representatives from Wachtell Lipton then discussed the terms of the draft merger agreement with the Board, and the Board
considered, among other things, the termination fees payable by STAAR and Alcon in certain scenarios in the draft merger agreement proposed by Alcon, including if STAAR’s stockholders did not approve the merger, the efforts required of Alcon
and STAAR in order to obtain the requisite regulatory approvals and the non-solicitation restrictions that would be applicable to STAAR following execution of the merger agreement.

On December 12, 2024, representatives