1---2name: merger-agreement3description: Drafts U.S. merger agreements for M&A transactions covering merger structure and mechanics, consideration, equity treatment, reps and warranties, covenants, closing conditions, termination, and indemnification. Use when drafting or revising a merger agreement, negotiating statutory/triangular/reverse mergers, or handling purchase price, earnouts, escrow/holdback, MAE, HSR clearance, or closing deliverables.4license: Apache-2.05---67# Merger Agreement89Draft a signing-to-closing merger agreement reflecting agreed structure, economics, and risk allocation.1011## Prerequisites12131. **Parties and structure** — legal names, formation jurisdictions, surviving entity, merger type.142. **Consideration** — cash/stock mix, exchange ratio, earnout/contingent terms, escrow/holdback.153. **Capitalization** — cap tables, equity awards, convertibles, appraisal rights applicability.164. **Diligence inputs** — financials, material contracts, IP, litigation, regulatory items.175. **Regulatory/tax plan** — antitrust, securities, foreign investment review, tax treatment intent.186. **Timeline and approvals** — board/stockholder approvals, outside date, conditions, financing.197. **Ancillary docs** — voting agreements, support letters, employment/retention, escrow, registration rights.2021## Output Structure2223### 1) Document Skeleton2425```text26MERGER AGREEMENT27- Parties; Effective Date; Recitals281. Definitions292. The Merger; Effective Time; Effects303. Merger Consideration; Payment Mechanics314. Treatment of Equity Awards325. Representations and Warranties of the Company336. Representations and Warranties of Parent/Merger Sub347. Covenants (Pre-Closing; Post-Closing)358. Conditions to Closing369. Termination3710. Indemnification (or Remedies)3811. Miscellaneous39Signatures40Exhibits and Schedules41```4243### 2) Workflow44451. **Confirm transaction map** — parties, merger steps, filings, closing sequence.462. **Draft mechanics and economics** — effective time, consideration flow, equity conversion.473. **Allocate risk** — reps, covenants, conditions, termination fees, indemnification.484. **Add governance and post-close** — board/officers, employee matters, transitional covenants.495. **Attach schedules/exhibits** — disclosure schedules, charter/bylaws, ancillary agreement forms.506. **Quality pass** — defined terms, cross-references, closing deliverables, schedule conflicts.5152### 3) Section Drafting Reference5354| Section | Required Inputs | Drafting Notes |55|---|---|---|56| Preamble/Recitals | Parties, purpose, structure | Identify merger form and intended effective time |57| Definitions | Deal-specific terms | Define MAE, Knowledge, Permitted Liens, Material Contracts |58| Merger Mechanics | Surviving entity, filings | Specify filings and effect on charter/bylaws |59| Consideration | Price, exchange ratio | Cash/stock mix, payment mechanics, adjustment/earnout |60| Equity Treatment | Options/RSUs/convertibles | Vesting, cancellation, assumption (see matrix below) |61| Reps & Warranties | Diligence scope | Use schedules to qualify; set materiality/knowledge |62| Covenants | Interim operations | Ordinary course, no-shop/go-shop, access |63| Conditions | Regulatory, approvals | Mutual and party-specific conditions |64| Termination | Outside date, breaches | Fees, cure periods, fiduciary out |65| Indemnification | Survival, caps | Align with escrow/holdback; exclusive remedy |66| Tax | Transaction intent | State intended treatment only if confirmed |67| Miscellaneous | Governing law, notices | Specific performance, assignment limits |6869### 4) Equity Treatment Matrix7071| Security | Treatment at Effective Time | Notes |72|---|---|---|73| Common Stock | Convert into merger consideration at closing | Address fractional shares |74| Preferred Stock | Convert per liquidation preference or negotiated ratio | Confirm approval thresholds |75| Options | Cancel for spread or assume/convert | Specify exercise/withholding |76| RSUs/PSUs | Vest, cancel, or assume per award terms | Address performance targets |77| Warrants/Convertibles | Convert or terminate per instrument | Require consents if needed |7879### 5) Closing Deliverables8081- Officer certificates and bring-down82- Secretary certificates, good standing, charter/bylaws83- Third-party consents and payoff letters84- Legal opinions (if required)85- Escrow agreement and funding confirmations86- FIRPTA and tax certifications (if applicable)87- Stockholder approval documentation8889### 6) Schedules and Exhibits9091| Label | Purpose |92|---|---|93| Disclosure Schedules | R&W exceptions, numbered to match sections |94| Articles/Certificate of Merger | Formation filing form |95| Escrow Agreement | Holdback terms and release mechanics |96| Voting/Support Agreement | Stockholder commitments |97| Registration Rights Agreement | If stock consideration |98| Employment/Retention Agreements | Key employee terms |99100## Guidelines101102- Match merger procedure to formation jurisdictions and charter requirements.103- Align consideration mechanics with financing, escrow, and payment workflows.104- Use disclosure schedules to qualify reps; avoid silent qualifiers in the main text.105- Define MAE and Knowledge with clear carve-outs and standards.106- Track no-shop/go-shop, fiduciary out, and matching rights with precision.107- Include antitrust and other regulatory approval and timing obligations.108- Treat tax-free reorganization language as conditional unless confirmed.109- Confirm appraisal/dissenters' rights applicability and process.110- Keep defined terms consistent; avoid duplicated or conflicting provisions.111- Non-compete enforceability varies by state; tailor scope to local law if included.