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Tender and Option Agreement

 

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Title:

Tender and Option Agreement

Entities:

Maddrey E Erwin II

Date:

2001

Size:

Preview shows 6KB of 38KB total

Price:

$40

ID:

#2501642

 

 

► Miscellany ► Option ► Tender & Option Agreements

 

 

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                           TENDER AND OPTION AGREEMENT



This TENDER AND OPTION AGREEMENT (the "Agreement") is entered into as
of the 26th day of June, 2001 by and among Tropical Sportswear Int'l
Corporation, a Florida corporation ("Buyer"), HB Acquisition Corp., a Georgia
corporation ("Sub"), and the individual who is the signatory to this Agreement
(the "Shareholder").

W I T N E S S E T H

WHEREAS, concurrently herewith, Buyer and Sub are entering into an
Agreement and Plan of Merger (the "Merger Agreement") with Duck Head Apparel
Company, Inc., a Georgia corporation ("Target"), pursuant to which Buyer will
acquire Target, on the terms and subject to the conditions set forth in the
Merger Agreement, by means of a tender offer by Sub (the "Offer") for all
outstanding shares of common stock, $0.01 par value, of Target (the "Target
Common Stock"), at $4.75 per share, net to the seller in cash, without interest,
followed by a merger (the "Merger") of Sub with and into Target; and

WHEREAS, as of the date hereof, the Shareholder beneficially owns
directly or indirectly shares of Target Common Stock (which stock and associated
rights are referred to as the "Existing Shares" and, together with any
After-Acquired Shares (as defined below), the "Shares"), which Existing Shares
constitute approximately 12.2% of the issued and outstanding shares of Target
Common Stock; and

WHEREAS, as an inducement to Buyer to acquire Target, and as a
condition to Buyer's willingness to enter into the Merger Agreement and
consummate the transactions contemplated thereby, Buyer has required that the
Shareholder agrees, and the Shareholder has agreed (i) to grant Buyer an
irrevocable option (the "Option") to buy the Shares at $4.75 per share, net to
the seller in cash, without interest (the "Option Price"); and (ii) to tender
and, in the event any or all of such Option is not theretofore exercised, sell
the Shares in the Offer and vote his Shares in favor of the Merger, in each case
upon the terms and subject to the conditions set forth herein.

NOW THEREFORE, in consideration of the execution and delivery by Buyer
and Sub of the Merger Agreement and the mutual covenants, conditions and
agreements contained herein and therein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

ARTICLE 1 AGREEMENT TO TENDER; OPTION

1.1 TENDER OF SHARES.

Shareholder hereby agrees (a) to validly tender (or cause the record
owner of any Shares to tender) all Shares beneficially owned by such Shareholder
pursuant to the Offer, not later than the fifth (5th) business day after
commencement of the Offer or, with respect to After-Acquired Shares, within one
(1) business day following the acquisition thereof, (b) not to withdraw any
Shares so tendered without the prior written consent of Buyer except as
otherwise provided in clause (c) of this Section 1.1, and (c) to withdraw all
Shares tendered in the Offer immediately upon receipt of notice from Buyer that
it is exercising the Option in order that it may acquire such Shares in
accordance with Section 1.2(a) hereof. Shareholder hereby acknowledges and
agrees that Buyer's obligation to accept for payment and pay for the Shares in
the Offer is subject to the terms and conditions of the Offer.
{PAGE}

1.2 OPTION.

(a) In order to induce Buyer to enter into the Merger Agreement, and subject to
the terms and conditions of this Agreement, the Shareholder hereby irrevocably
grants to Buyer the Option, exercisable in whole but not in part from and after
the date hereof, to purchase Shares at the Option Price. If (i) the Offer is
terminated, abandoned or withdrawn by Buyer (whether due to the failure of any
of the conditions thereto or otherwise) or (ii) the Merger Agreement is
terminated pursuant to Section 11.1(b), 11.1(c), 11.1(d), 11.1(g), 11.1(h) or
11.1(i) therein (and in the case of Sections 11.1(b) or (c), such termination is
by Buyer), the Option shall continue to be exercisable, in whole but not in
part, for a period of ninety (90) days after the date of the occurrence of such
event, so long as (x) all waiting periods under Law required for the purchase of
the Shares pursuant to the Option upon such exercise shall have expired or been
terminated and (y) no court or governmental or Regulatory Authority (or
legislative body or commission) shall have enacted, issued, promulgated,
enforced or entered any Law or Order (whether temporary, preliminary or
permanent) or taken any other action which prohibits, restricts or makes illegal
the exercise of the Option pursuant to this Agreement. In the event the Merger
Agreement is terminated other than pursuant to Section 11.1(b), 11.1(c),
11.1(d), 11.1(g), 11.1(h) or 11.1(i) therein (and in the case of Sections
11.1(b) or (c), such termination is by Buyer), the Option shall terminate upon
such termination of the Merger Agreement.

(b) In the event Buyer wishes to exercise the Option, Buyer shall deliver
written notice thereof to the Shareholder, specifying the date, time and place
(in Atlanta, Georgia) for the closing of such purchase. A closing of the
purchase of Shares pursuant to the Option (a "Closing") shall take place on the
date, at the time and at the place specified in such notice; provided, that if
at such date any of the conditions specified in Section 1.2(a)(x) or (y) hereof

 

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