Demand Underwriting Registration Rights Sample Clauses
The Demand Underwriting Registration Rights clause grants certain shareholders the right to require the company to register their shares for public sale, typically through an underwritten offering. This means that, upon request, the company must file the necessary documents with regulatory authorities and cooperate in facilitating the sale of these shares, often involving investment banks to manage the process. The core function of this clause is to provide liquidity to shareholders by enabling them to sell their shares in the public market, addressing the problem of limited exit opportunities in private companies.
Demand Underwriting Registration Rights. Notwithstanding anything to the contrary in this Agreement, the Borrower’s obligations under Section 4, and any related obligations of the Borrower under Section 7, will terminate (and, for the avoidance of doubt, the Borrower will thereafter have no obligation to effect any Demand Underwritten Offering) upon the earlier of (i) a Take-Private Transaction and (ii) the first date on which no Registrable Securities are outstanding.
Demand Underwriting Registration Rights